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

and southwest all trimming their outlook due to the delta surge. >> china clamps down on gaming again, tencent, and some other tech giants continue to be battered by this regulatory squeeze. and shares of gamestop tumbling despite a 25% increase in sales why investors remain cautious about the company's turnaround potential. let's dive into the airlines i guess, jim the only bright spot in the case of delta, at least they do see bookings recovering somewhat in the last ten days. >> it's funny because we all know, david's talked about this endlessly that the business traveler doesn't seem to be coming back. and that's a zoom situation. this is about leisure traveling and clearly about the delta variant. what really concerns me is that when you -- of course phil lebeau -- that you're going to be down the next month and the next month, ual really kind of making a prediction about the fall, then you say to yourself, you know what? they de-risked it.

we've got to hope that delta gets better. maybe that's the reason the stocks aren't reacting i don't have an investment thesis southwest, which has been my favorite for a long time >> right >> i don't have an investment thesis. >> other than southwest. >> no, for southwest. >> oh, you don't >> no, because they have disappointed this is not the old southwest. >> although to the point you were just making we start trading in a half hour, and clearly the stocks are not going to be beaten up. >> right >> and i mean there is an expectation that the delta variant is going to subside. there are some things you can point to to be positive in terms of hospitalizations having peaked in certain areas. what are you doing now >> i'm somewhat skeptical, david. i don't want to -- look, i don't want to by any means want to express any sort of concern or worry. >> is that an under armour mask? >> this is the latest and greatest >> right >> but what concerns me --

>> it's kborgorgeous. >> the 150 count brionis, the best mask in town. >> yeah. alta, beautiful store today across the sfrtreet from macy'si asked for the protocol do we wear a mask or not that reminds me of when you go on an airplane and is the person next to you wearing a mask now airplanes we should note are safer than buildings, but that doesn't mean -- it doesn't get through to people. >> no, and i also think it's frankly that wherever you may be going, particularly if you're traveling internationally, there's going to be difficulty on the ground, if they even actually let you go there, it's unclear what will happen, if you were to get covid, how much you have to quarantine we have to quarantine if you don't. there's a lot of different difficulties that potential travelers face, so they're just saying why not wait. and that may very well be what's going on domestically perhaps different

than internationally. >> when i say southwest, you don't have to worry about international. i flew emirates last week to milan and the price of a first class ticket was the price of economy two years ago, and that just shows you, you can't make money if you're doing that the money is upfront the money is the business traveler upfront. >> business travel we talk about, it's unclear when it's coming back. we've had gary kelly join us so many different times. >> you're saying when. >> when as in one day it will equate to what it was in 2019. >> how about saving money by not going back to the -- >> that will -- these behaviors are going to need to tepotential be tested and change the lack of travel, will it be seen as a positive or negative over a long period of time will hybrid works be seen as a positive or negative over a longer period of time as businesses judge the new way their work force is working and try to understand what the positives and negatives are.

but that's years, years away before we even have any sense. >> i've been very impressed about the way disney's handling things basically saying, look, get vaccinated we have guests i like the idea of if i am a guest, i want the people who are hosting me to be vaccinated. that's very much the way it is in europe. it's got to become that way here. >> delta did say this morning that they see demand back to pre-variant levels in the next 30 days, which we know when cases start to decline, they can decline rapidly, but it was something that fed -- the kaplan of the fed talked about in his downgrade of gdp for the year. >> here's what he said >> this research has been going on for the last number of weeks. it's having an impact as we thought it might on travel, hospitality, leisure sectors and as a result of what we're

seeing, i think it's likely that the dallas fed -- our previous forecast for u.s. gdp was approximately 6.5% we will be revising downward and are revising downward our third quarter gdp estimate so that our full-year gdp growth estimate will be in the range of 6% >> somewhat in line with some of the major strategists this year. by the way, still endorsing its taper along with bullard and williams this week >> look, i think that when i listen to my old friend lee cooper this morning, he was very critical of the fed, but then i think what happens if delta continues or a new variant i mean, look, i'm watching close to the nfl, which starts tonight, and i think that one of the topics of the conversation will be delta, tom brady getting it you don't -- maybe it will be talking about the players that have refused to get vaccinated there is still a debate in this

country about allowing people to say, you know what i have every right not to be vaccinated and that's the case, then kaplan is right to take down nurmmbers, and i think that powell is going to be right even as we get spikes and i know wage increases. i think that it's still uncertain. as much as i just wish we have it within us to make it certain, and we're not doing it >> we're not doing it because not enough people are still getting vaccinated. >> exactly >> what about the vaccinated which is now the majority of people. >> right, 75% have one >> shouldn't they feel free to go about their lives shouldn't they be expected to return to the office given that the real risk is at or lower than the flu, let's say getting the flu. >> we've got a very positive note about regeneron this morning. it didn't even mention -- it didn't even mention that if you get this and you have the regeneron drip, you're going to be better the next day according

to some people, 105 temperature down to 99 the next day. david's right, there are many reasons to be hopeful about delta. but you could flip this. i had clooeveland -cliffs on la night, and the ceo said here's the deal, we gave $1,500 to anybody who got vaccinated 75% got vaccinated a bear could say 25% turned down 1,500 bucks? >> there's going to be some percentage potentially a lot more than we perhaps anticipated a year ago that are simply not going to but at some point don't we need to just -- >> i think by october when the kids have gone to school, not an issue for my kids, but new york's what, 85%, but the rest of the country is going to find a way to be able to get vaccinated and then we can get back to normal maybe by the holiday season. >> school's going to be key. jpmorgan yesterday said that the weak jobs number may have been workers discouraged from taking jobs because they were worried about infection, but that it's

going to be any shift away from in-person education is, again, going to threaten potential labor supply if your kids aren't in class, you can't go to work. >> right, and there's, what, 5 million people we're talking here that's the word. that's the number of people who are afraid >> people who have stayed home. >> because they're afraid. >> although school is in person everywhere, but it may be a choice you're making not to send your child to school, is that what you're saying >> secretary raimondo has been saying if you want to know how to alleviate a lot of the stress in the work force, have kids go to school and don't have moms at home let them go back to work so i am hopeful, again, that jay powell's going to be right even about that i know i'm now in a camp of three, me, jay's wife, and jay >> and jay >> just the three of you. >> just three. >> that's it

>> just 330 million others in this country, i don't regard their opinions as nearly as important as ours. >> no. >> although on the broader market, jim, i did happen to watch "mad money" last evening. >> oh, my gosh. >> i know. >> there's a first time for everything. >> i literally ran out of things to do. >> get a jump on "jeopardy!" >> i ran out of -- >> there's nothing else to do. it's 6:00. let's see what's on cnbc. >> what an endorsement i ran out of things to do, i said turn on "mad money. >> and you were great. and it reminded me of how good the show is and how great your head writer is, your nephew. >> well, my only writer. been with me since the start, even when he was in high school, he was my head writer. >> you had a list of five things and they weren't positive. they were predictive of volatility and a tough september. >> what i said is volatility is code word in washington for going down, and i do think there's enough -- today is very good example you start with the negativity, the dow, becky was talking about

the dow being down six out of seven days i just think there's enough -- listen to what they said about natural gas. natural gas is 5 bucks that's a raw cost in this country we can't handle. it's getting worse because europe's got much higher prices. >> china's going to release oil reserves for the first time. >> i did say that china, something you and i talk about, david. >> yes. >> taiwan is in play >> you talk about it, it is an existential fear of many people that -- >> it's taiwan. >> they're doing enough in china right now when it comes to just regulating countries and/or creating again, you brought this up, common prosperity. >> twice i heard maybe xi is going to get pushbacks the military is with him, or he's with the military. >> he's a pretty powerful fellow as you pointed out, common prosperity, the last time you really heard that a lot was

ge chairman mao j th. >> that was my nephew that wrote that. >> i liked it. >> we've got tencent of course, and then we walk in here and futures are essentially flat, so you think that's fairly good support? >> yeah, 4:00 the futures were down badly, and i felt that it's going to be still one more bad day. uk was down 1.2%, but what we have in this country, as we saw in the last three hours of yesterday, a dip is a buy, so we're still there. >> what about these stocks, though what about these chinese stocks given we were just talking about netties, tencent. >> this news was out yesterday, much of it, but the stock started to suffer asthe day went on. >> alibaba tried to rally last week >> you you would not buy any chinese equities. >> no, you've got a country that's starting to become

communist. >> they said here are the rules, and by the way, we're serious. >> i don't want to -- i think there's plenty of opportunities to lose money here i don't need to go overseas. >> cathie wood has obviously cut, and on squawk today asked if he would own chinese equities maybe next year, maybe by the end of the year. >> maybe xi -- when his term is up, what's his period? >> it's an endless term. >> life, life. >> that's a long -- president for life -- there's a lot of presidents for life that i've seen over time very few of them actually got to where they had to go >> that's true, but some live on for quite some long period of time, octogenarians, sometimes, i can remember a few of them. >> dictators >> some life is cut short. >> budo went on for a long time. >> nothing stopped him. >> cathie wood's note -- i mean,

look, we know she's turned on the group, but i do feel when you're there, you're really kind of -- you wake ud as much as $1n o over the next number of years towards goal of common prosperity. >> does that come out of earnings >> i would think it does it might be otherwise used for growth opportunities >> i ta and game stop. >> we are going to get to gamestop as we look at some of the premarket action as well as lulu and rh. jim mentioned that call on regeneron. other calls on cisco and macy's today as futures are mixed we're back in a moment

♪ 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.

another day, another chance. make the most of it with the network that can deliver gig speeds 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. gamestop's dwown sharply in the premarket. still missed estimates revenues did top forecasts as sales grew 25% the ceo didn't take any questions from analysts on last night's conference call, and is that part of the concern today >> yeah, look, set my evening schedule by how many calls i have to do there were so many last night, rh was just fantastic. look, obviously lulu was great, so then i said, oh, my god, i got to start gamestop.

i'm at one edge of the gw bridge, and i was finished by the other side of gw because there was nothing said they talked about about expanding capacity adding more fulfillment. david, i've been thinking and thinking and thinking, ryan cohen, he made -- for selling dog food at chewy, right >> chewy, yes. >> what do you think about this for gamestop cat food. >> i like it wa i see real synergy there >> it's obvious to me. >> right >> it's obvious, yeah. maybe cat litter. >> maybe cat games, games for cats. >> why not >> why not >> now, look -- i said that literally because i want people to attack me, i obviously am a masochist, but you've got to at some point or another say who you are or else it's difficult to keep the balls in the air. >> volume, daily volume is nowhere near where it was in

january, february, march, and that's been the case since mid-june. >> i know. this is -- might be one where there is no exit existential or french novel, i don't know if you've put that in your repertoire. >> i don't, i didn't, i won't. >> i do say, i'm going to distinguish this between amc, adam aaron is a magician the numbers for the weekend were better than 2019 who is besting 2019? ulta today they're besting 2019. obviously rh. >> 40% up from 2019. top line 40%. >> if you're beating 2019, you are in -- >> amc's value, though, where it is right now. >> he's got a lot of time to be able to make it up. >> gamestop has a lot of cash. 1.75 in cash >> they've raised a fortune. >> unclear how you create a

growth company from a company that isn't growing year-over-year it looks okay, but remember where we were a year ago. >> it's up almost 1000%. >> what do you think about this revolution, everybody's writing books about gamestop is done. >> really? the memeification of things is going to end >> companies that make lightning bugs in a bottle. >> things get memefied every day. small companies probably not worth mentioning. >> you see them roll by. >> 80 million. not like what you talk about with spacs, which all anybody's buzzing about the idea of vote in favor you and gary gensler are focused on this. >> we are. i know i am. i don't know about mr. gensler, but i would assume he may be. >> we're going to talk about what mark cuban had to say about coinbase, gensler. i know you said buy amc on this

new trailer for matrix resurr resurrections. we'll get cramer's mad dash and countdown to the opening bell on this thursday. atpeng bell in about nine minutes. don't go anywhere. with directv stream, i can get live tv and on demand... together. watch: serena williams... wonder woman. serena... wonder woman... serena... wonder woman... ♪ ♪ ace. advantage! you cannot be serious! ♪ ♪

get your tv together with the best of live and on demand. introducing directv stream with no annual contract. 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) this is more than just a building. exit's an ai-poweredover in iinvestment firm withrm. billion-dollar views. a cutting-edge data-security enterprise. yes, with a slide. a perfect location for the world's first one-hour delivery. an inspiration for the next workout cult. and enough space for a pecan-based

nutrition bar empire. it could happen. because there's space for any dream on loopnet. the most popular place to find a space. time now for mad dash, counting down to an opening bell less than seven minutes from now. you featured boston beer a couple of weeks ago. was it an analyst downgrade or was something not positive. >> the chart literally showed -- >> and look what happened. >> well, daiftd, one of the great pieces i've read in a long time is an rbc note. it says truly a disaster that's a double enten dra

because truly is their hard seltzer. this has basically hit a wall. it's not to say people aren't drinking it. i'm saying the case projections were so wrong because they didn't see this coming they were off by 30 million even since july it's a major slowdown. there's too many companies in it there's still love for hard seltzer, but there's no love for boston beer because they withdrew guidance. i always find that to be an incredibly negative -- >> a lot of the company's growth had been based on incredible growth in this cat degory, righ and they were the leader. >> white claw, and i've got to tell you, i don't think it's going to stop here there are many analysts that were looking for thousand dollar price targets. it's obviously not going to do that sometimes you get these fads, remember bartles and james what happens is you get something that just goes away. lululemon, a lot of people

thought it was a fad and it did quite a well sayonara, it's going to be here, but it moved into a consolation. >> there it is, competition. >> good lesson for people at home that just because something's really hot doesn't mean it has staying power. >> yeah, we'll keep an eye on shares of boston beers >> truly a disaster. >> it will open down perhaps such as 9% speaking of opens, we've got one coming up for you. you can catch us anytime, anywhere, and listen to and follow the "squawk on the street" opening bell podcast

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.

making our way through some of the corporate results, lulu is one of them as 165 beats 119. already we've got a price target increase over at cowen as they go to 520, jim. >> yeah, this was one of the those quarters, you always look for these companies that do a quarter that you expected would happen, say, in 2023 it was that spectacular.

there is no slowdown in this category if anything, there is an acceleration, david, you know, lulu is one of those companies that we thought was a pandemic play, and when the pandemic kind of wound down a little, people would stop wearing it. but we didn't go back to the office, and lulu has become kind of the standard of what people wear. >> by the way, i know people who wear those slacks to the office or those pants. >> the abc. >> look, this is one of those -- the first page of what they talked about was bras, and i said do i mention bras or is that sexist. they talked about that's their category of innovation is bras that's fabulous. david, there hasn't been a new innovation in bras for years >> a long time. >> a long time. >> it's not a coincidence that peloton announcing their own private label brand, peloton apparel. >> i think peloton is a

forward-looking company. foley, i bumped into foley and he was irrepressible, when you look at lulu, even this mirror acquisition i think is starting to come to the fort. >> i think one of the most compelling thing about that quarters they're paying people $70 an hour. >> wealth and health that's something that ulta talked about about, wealth and beauty i mean, these are categories, well, for ulta it's beauty and health when i think about lulu it's wealth and health, meaning that if you can afford their stuff, you're doing pretty well >> that's true >> there is the opening bell, cnbc realtime exchange as well big board and cyber security company iron net celebrating a recent listing via spac. at the nasdaq, izon motors celebrating its listing via spac i think as we're getting even more headlines this morning, jim, about extensions of shutdowns on production lines in

the auto industry. >> yeah, i mean, i think that the semiconductor chips, again, there's not a lot of profit made in the chips that they need. interesting, by the way, that ford shut down india where they lost a couple of billion, 2 billion. they're still going to do business in india, but the manufacturing is being wound down it's being hit on that, which is stupid as mplywood because farley's committed to making cars and trucks where you can make money i think that's important but then oh, the semi shortage when we see these facts, here's one today. >> iron net we actually have had on a number of times it had a very high redemption rate and started with a lot less cash than it anticipated but still says it's going to be fine today the only one i saw was osprey one of the key provisions of a spac is you buy in at roughly 10 bucks a share, sometimes it's fewer and you can redeem at

usually right around 10. you get your money back. you could also vote in favor of the deal even when you do get your money back, which makes for deals where we're seeing them approved in other words you're approving the target, and the deal closes, but what is happening is these redemption rates are so high that's the key here, see that? that's post-spac that's after you announce a deal and after your deal's done that's the problem these things aren't going up anymore. so many of these shareholders say i don't want to be around after the deal closes because i'm going to -- it's going to be worth less than 10 bucks they redeem. they get their $10 what it has the effect of doing is leaving a lot less cash for the company than they had anticipated when they drew the deal up. we had one that was 90 plus percent leaving far less cash and in yesterday's case i think i was talking about the pipe holders who come in at 10 bucks

a share said no thank you. and they wouldn't buy -- they wouldn't provide the funding they said they were going to they're getting sued in the case yesterday. here's spac 50 this is the only one that's actually -- these are ones that haven't announced a deal at all. the trend is clear, and it's creating real problems you're violating minimum cash requirements you need the companies to say that's okay. when i get back to it, it doesn't allow them to potentially execute on the business plan as they foresaw it previously based on the amount of cash they actually have, and they might have to do dilutive equity offerings that's the spac story right now. >> one of the things i want to address with the s.e.c. chairman, the projections that were made, 2027 numbers, they can't be met if the redemptions. if there's so little money left. >> you'd think that their projections would be also in jeopardy, and it gets back to the incentives of the sponsor, which i've talked about many times. the sponsor most likely should be renegotiating deal prices

down they should probably be maybe even saying no, but they're not doing that because they are incented they make money even when the spac price falls well below 10, unlike people who are largely redeeming in most cases. >> carl, there's a lot of people who are questioning whether crypto is real or not. now, i happen to think it is real, and i think that as more country -- are going to find more reasons -- mastercard acquired a company that enhances crypto capabilities. when i look at the spacs, they're treated so seriously, and everyone's so -- initially so excited about them, but the losses have been horrendous versus the s&p, versus the dow if you had just bought, i don't know, procter & gamble, solid company, boring, but better than a flying car. >> our indexes give you a great sense, and that last one in particular the -- you know, the index now down for the yeear, but it was u

dramatically look where you were in that february, march time period versus where you are now, and that says a lot, carl. >> we are getting some breaking news out of washington regarding vaccines and mandates. eamon javers has that for us hi, eamon. >> hi, carl, nbc news has learned that president biden is going to be signing an executive order mandating vaccinations for all federal employees and for millions of contractors who work for the federal government the president had previously mandated this earlier in the summer, but there were some loopholes there for employees who did not get vaccinated to have a regular testing process that they would undergo. now this is going to be mandatory for all federal employees and for all those contractors, and you could think about all the different federal agencies that employ thousands and thousands of contractors this is a large group of people, not clear exactly what the unvaccinated rate is among federal workers, but this is biden's effort now to make a dent in the broader unvaccinated

population inside the united states, and it comes at a time when he's really trying to get his arms around the delta variant and trying to move those numbers south and get the economy back on track again. watch for that executive order we don't have exact timing yet of when that will be siegned, th white house signaling that president biden is going to be doing that sometime soon. >> we began the hour talking about the airlines and why it's so important to get that under control. thank you. by the way, you see moderna up 3%, investor presentation announcing a vaccine program that would develop a single dose that will combine a booster for covid along with a vaccine for the flu. >> boy, wow, it's supposed to be a very difficult flu season. that is something that this company continues to surprise. let's put them in the genius category i'm talking about let's just accept the fact this is revolutionizing vaccines we never thought this could happen. >> no, there's a reason why its

market value is ahead of that of glaxo, ahead of that of bristol-myers and very close to the size of merck. there's a reason. >> glaxo was king of the vaccines i please anyone who has not taken the shing ricks, please go do it. >> i'm going to do it this friday it hurts too many people in our age group. >> too painful >> i heard, by the way, a student, a younger student got shingles just be aware that that was glaxo. that's something they were the king of. they punted on developing a first line vaccine for covid, not moderna. i wish i -- that's such a great thing. i hope that the president says, listen, we're going to offer this american. you got one shot, you're in. j&j one shot, people have been -- >> yeah, let's not forget the flu can hospitalize a lot of people in a given year if it's a bad year in particular. >> and some people obviously

it's true that flu kills more people at this point than covid. >> guys, i don't usually look at research, as you know, or not much, but i did notice one strangely in the insurance industry it's a name that we followed sometime back when chub made a run at it, a brief run before it was heisman talking about hartford insurance remember that, jim this morning credit suisse, a well regarded analyst, what caught my eye was the final bullet he said we think highly of ceo chris swift who we've known for many years and his team, but lagging multiples could attract interest from activist investors as there does note appear to be an operational reason for the lag. we see two potential paths that activists could pursue to generate 50% plus potential returns. including -- thank you -- a

whole company sale and per private equity expert they say, divesting in gems. i didn't know they had a groups benefit business that could get a 20 plus multiple they also have a mutual fund i did notice hartford was up about 2% >> i think the company is much better run under this gentleman. i think that the stock has been sensational. i find that it's a little disappointing when people criticize a ceo who has created so much value. there's so many ceos who have not. why are they after this gentleman who's doing many things right >> would there be a path for an activist to push for so many things if they were actually in a sale mode would travelers be interested would there be interest perhaps from some foreign insurers from switzerland or japan, who knows. there's certainly any number of shareholders who want that to be the case

very unclear whether it will be. you don't typically see an analyst come out and sort of call for -- at least bring up the idea of activism. >> make the point that evan greenberg who runs chub is i think the best in the industry we lost mr. fisher, he was the titan in the industry. evan greenberg, if he comes back, he's done remarkable work with chub, which a lot of people thought was a country club they're my insurer, full disclosure when he comes on the show, he talks about my wife ease housing portfolio. frightening. frightening. trying to get her to streamline. she can't help herself >> all those houses, you're right. >> got to use chub. >> you're customer number one. >> he is saying my pile is in the upper left-hand corner of his desk. >> morgan stanley downgrades cisco because they say the

traditional gap has largely closed, achieving their bull case would require a stronger software growth trajectory. >> yeah, i mean, it's one of those valuation calls that i really dislike chuck robbins, people coming back to work, campus, there's very good acquisitions the last few years. i don't think it will hurt the stocks got a good yield, a great balance sheet. he is a falcon fan they're going to get a beatdow at the hands of the eagles that's really the only fly in the ointment for this man. >> are the eagles going to be any good >> surprising. everybody's gotten a buy in, i expect very good things. >> is that why nike's leading the dow along with a couple of -- >> oh, my, nike. evidence slab once again, i know david you said something like you're not that fond of research the evidence lab is proving to be every bit as good as say the criminal minds. >> csi kind of level.

>> csi kind of level analysis. >> it's got that level of rigor. >> does it >> i thought the nike report was good since there are no real supply chain problems. >> are they solving any crimes are they really doing that >> they're not dexter either, let's get that straight. >> they do have their stamp >> you didn't even talk about -- >> what a great branding that was. we talk about it all the time. >> you didn't talk about the passing of one of the greatest actors in our lifetime michael williams >> i think we have to mention -- >> "new york times." >> why not this was a great man who did a lot of fantastic acting and i feel like -- i know there so many different things to mention on our show, to not mention his passing. >> i always said that show is -- i think the greatest show. >> david simon >> remember omar -- >> man got to have a coat. >> remember president obama said omar is his favorite character

to note his passing is worth it his body of work is extraordinary. >> futures did look a little weak earlier on, let's get to bob pisani >> hey, guys, we started on the downside we've now switched to the upside here tech has been strong china's getting clobbered again, folks, but that's not what's moving the market. it's tech holding up take a look at the sectors, a little bit of weakness in some of the cyclical groups, energy, industrials were down, now flipped positive, but tech keeps holding up and communication services, which is essentially a technology sector at this point, and that's really the key to the markets right now. so the problem the market's having, and there's a little bit of anxiety below the surface is there's not a lot of visibility right now. we have a lack of visibility on two fronts, on the impact of the delta variant on various parts of the economy, particularly the travel area, and on the costs associated with the inflation we've been seeing, particularly on commodity costs and labor costs. this is causing a little bit of

anxiety. you've seen some recent warnings we've been telling you about this week, for example some of the airlines we saw trimmed outlooks. pulte group, terrific demand in the home building sector, but they're talking about material and labor shortages and having a little bit of a problem delivering product because of that same with sherwin williams and ppg, these big coding companies talking about material shortages and higher costs what's this all mean if you look carefully, these are industrials and materials and travel stocks. it's very clear there are some pieces of the economy that are decelerating a little bit. it's small parts of the stock universe look at the s&p 500. in terms of where it is from 52-week highs. go back to that prior full screen essentially materials and industrials are just barely off of their 52-week highs 5% and 3%, that's not a lot in terms of where they are from their 52-week highs. the other thing we want to note is the sectors that are growth, health care, technology,

communication services, folks they're at 52-week highs they're at their new highs, and that's why the market keeps holding up if you look at the contribution in terms of earnings to these -- that these three sectors make, that's what matters. they're most of the earnings in the s&p 500. technology is 22% of the $50 that the s&p is going to have in earnings this quarter. communication services are ten, health care is 17. put these together, 50% of the earnings for the s&p 500 are in three sectors. they're the growth sectors and that's why the market keeps holding up the other sectors having some problems like industrials and materials, they're also there but they're a smaller part of the contribution as long as tech communication services, health care keeps holding up, you're going to have a fairly strong s&p 500. that doesn't mean that there isn't damage i know, i see individual stocks all the time i see people messaging me saying, bob, look at this. what's going on with some of these big names?

boeing's 20% off of its highs. halliburton, some of the big oil names are 20% off their highs. even big names you don't think like caterpillar are 16% there is some damage underneath. what i see here, carl, though, is most of these stocks topped out in may or june this did not happen this week. all of a sudden we had this gigantic plunge. it's been a slow downward move and mostly sideways for a while now, but the anticipation that there would be a bit of a slowdown later in the overall economy in the u.s., that game started playing out a couple of months ago >> bob pisani, still to come, tech check is going to have a blockbuster show today we've got the ceos of microsoft, linkedin, verizon, and logitech, coming up at 11:00 a.m. eastern time as we go to break, time for the bond report, check in on treasuries this morning, awful lot of fed speak today yield's around the ten-year,

over in europe, the ecb did announce it will dial back its pandemic bond purchase to what i call a moderately lower pace dow's up 60. we'll be right back.

jerry is here! j! mate, how are ya!? it's so good to see you. good to see all of you, yeah! why is jerry so... popular? it's been like this ever since we started using workday. what do you mean? it makes it easier to develop great relationships with our suppliers. now everyone, everywhere loves jerry. they sure do. they do. they really do. mmhmm. workday. finance, hr, planning and spend management for a changing world. the personal loan from sofi helped me consolidate my credit card debt into one simple monthly payment. debt free! thanks to sofi. ♪♪

>> this guy. first, even if you want to come back, we wouldn't take you >> yeah we would. >> yeah, you're right. >> i'm getting into crypto. >> we are providing 360 access to the crypto market with an ability to trade everything. i believe i am in but still hate you. >> understood. >> take care best to family. >> did he say he hates you >> he did. >> even on the phone, that guy sounds handsome. >> tom brady in an ad for crypto exchange ftx it fee thursday his wife gisele slated to air tonight during the bucs/cowboys broadcast which marks the kickoff of the regular

season you can watch the game on your local nbc station and on peacock whether it's brady, jim, steph curry, we will hear a lot about bitcoin this season. >> you've got to focus on this mastercard announcement because mastercard is truly what we've been waiting for, waiting for visa, mastercard, visa's got some things. they made this acquisition why? because they want intelligencend insight on 900 cryptocurrencies. so i think that you're going to need clearing houses like mastercard and visa. now, starbucks, by the way, we didn't talk about that, starbucks, they're ready in el salvador stocks up two bucks yesterday. adam shultz is adamant it should be throughout the organization. >> how, shultz is not in charge. >> well, buy a cup of coffee. >> doesn't matter. >> no, it's kevin johnson's company. i think that the notion that

starbucks has endorsed this has moved the stock up rather dramatically now we may think that's fanciful, even alchemy, but crypto is here to stay. when you see companies like mastercard saying we have to accept it, start thinking -- not accept it in terms of like got to ethereum it i am a believer in ethereum. huge. >> you are. >> yes, i am. >> cooperman says still doesn't get it. >> well, you know, some people don't get the fact that the dollar is worth something. >> oh, yeah. a lot of things i don't get. our audience knows that already. david, this self-deprecation -- yeah, stop with the self-dep caption. >> no? >> we see right through it >> i mean, i find it i noig. >> i really don't get crypto though. >> well, do you have to get it in order to make money with it >> remember, i mean, you can see that it's real and it's here and it's not going away.

>> i bought that place in pennsylvania with bitcoin. >> struggling -- i know. >> why don't you join me in? >> in what >> embracing alchemy. >> i am not saying it's not a very important thing i'm saying i'm working on trying to fully understand it. >> at that point, david, it's a sale. >> the next hour, more on the nfl's new season with a football super agent drew rosenhaus don't go anywhere. eader. you sure you want to leave that all behind? yeah. stay restless with the rx crafted by lexus. experience amazing at your lexus dealer. t-mobile is the leader in 5g. we also believe in putting people first by treating them right. so we upped the benefits without upping the price. with magenta max, get our best plan for 5g. with unlimited premium data that can't slow down based on how much smartphone data you use. and taxes and fees are included! you won't get that from anyone else.

right now, pay zero costs to switch! and bring your phone we'll pay it off! only at t-mobile. the leader in 5g. ♪♪ ♪♪ ♪♪ 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.

in business, it's never just another day. it's the big sale, or the big presentation. experience the crossover in its most visionary form. the day where everything goes right. or the one where nothing does. with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it— all backed by a dedicated team, 24/7.

every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. time for jim and "stop trading." >> cowan is good at retail time to buy. i think jeff has done a great job. up 83%. >> they go from 23 to 27 not a dramatic change in the price target itself. >> jeff has quietly built a very good balance sheet and a terrific rebuild franchise i applaud him. he is a sensational guy, by the way. truly a good -- a merchant doing a lot of good things. >> tonight >> all right this is david's wheelhouse i have ulta, affirm, ui path and crowdstrike. wow. there you go look at that it's time. max, by the way, remember, reports tonight.

he did that deal with amazon i have been a believer in max from time memorial george kurtz attacking microsoft tonight saying that they are a big problem when it comes to cyber security >> on his call, three times. >> interesting so satya is a great man. >> all right we will talk about some of what microsoft has been up to see you tonight. >> thank you "mad money" at 6:00 p.m. dow's up 76. don't go away. ♪ 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.

what happens when we welcome change? we can make emergency medicine possible at 40,000 feet. instead of burning our past for power, we can harness the energy of the tiny electron. we can create new ways to connect. rethinking how we communicate to be more inclusive than ever. with app, cloud and anywhere workspace solutions, vmware helps companies navigate change. faster. vmware. welcome change.

wealth is your first big investment. worth is a partner to help share the load. wealth is saving a little extra. worth is knowing it's never too late to start - or too early. ♪ ♪ wealth helps you retire. worth is knowing why. ♪ ♪ principal. for all it's worth. 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.

♪ god thursday morning another hour of "squawk on the street." i'm carl carl with morgan brennan and david faber like at post 9 of the new york stock exchange futures indicated a down open and we got it, but just briefly. dow is up 78 points as we try to avoid extending the three-day loss for the dow and s&p. >> 30 minutes into the trading session, three of the big movers this morning chinese video game company net ease under pressure today after chinese regulators called them in for interviews and reminded them of restriction on game time

limits for children. the stock is down around 20% over the last three months down another 2% today in trading. plus, boston beer shares fizzling after financial guidance in part to weaker than expected seltzer sales shares down 7% right now. lululemon leading retailers high topping earnings estimates higher those shares up 12%, david. >> yeah, nice move in lulu thank you. we are also keeping an eye on the airlines. they are warning of some slowing revenue of course as the delta variant continues to hinder travel phil lebeau has that story for us phil >> david, this is confirmation of what we talked about the last three or four weeks. all of the airlines presenting at a cowan airline conference and that's their opportunity to update their guidance. as all of them, almost all of them are trimming guidance for the third quarter.

earlier today premarket we saw the airline stocks under pressure they have actually kind of moved higher i think that's largely because most investors are looking at this saying, tell us something we don't know. the passengers levels ticked lower in the second half of august as we saw covid-19 growing around the country that's when we saw a fall off in the number of people sflieg and bookings have softened the last four or five weeks if youen to the airline commentary this morning. with united, it expects a pre-tax loss for the third quarter. they don't give an exact amount. the street expected a froft of 5 cents a share. not a huge change. trimming the upper end of the third quarter, jetblue they are bringing ebidta down by $50 million. still expecting profitable ebidta for third quarter, but it's not going to be as high potentially as they originally expected and when you look at american, its q3 revenue is now expected to be down 24 to 28% versus 2019

q3 the previous guidance from american down just 20% so there you see the weakness in the revenue coming through and, finally, delta saying it expects the q3 revenue to be down 30 to 35%. that's not a change in guidance. they expect to be on the lower end of their expectations that they have had out there for some time we will be listening to these reports at the cowan conference all day long we will let you know if th airlines give us any greater clarity about what they are seeing aside from the fact that they are seeing softness in bookings the last four to five weeks and it's expected to continue at least through the month of september and into october. >> although, phil, as we mentioned with jim, this line from delta that they have seen stabilization in the last ten days and look to see pre-variant levels in the next 30 days, i wonder if you would argue of all the pieces from the airlines, say that delta is at least -- the least bad? >> i would say so. i would say so also when you talk about some of

the other airlines, i know -- was reading southwest's note southwest has talked for some time about the softening of the market they are indicating that they expect things to start to improve. i think all of the airlines are cautiously optimistic that when you get into the holiday season, that if we see a slowdown in covid cases, they may see a reacceleration in bookings maybe not to what they originally expected, but certainly it's -- and you are not going to see the fall off the last four or five weeks. >> phil, we are starting to see aircraft orders pick up this year are there potential ripple effects in terms of that sclain a /* splain su/* splain supply chain? >> i don't think so. i think that so many of those orders, they are going to be for aircraft some of the aircraft are being delivered now, but more likely you are seeing the aircraft delivered over the next three, four years and the expectations in the industry is,

look, covid's gonna pass at some point to or it's going to be a part of our life and we get used to it in some fashion. at what level, we don't know but the airline industry will need more aircraft that's why i don't think you will see a dropoff in orders from the airlines anytime soon when it comes to new airplanes >> wow, what a load of information from the industry today, phil. thanks phil lebeau on the airlines. meantime, gamestop shares sliding after reporting mixed quarterfinal results frank colin has more hey, frank. >> you know, not clear earnings or fundamentals matter anymore when it comes to gamestop. the earnings call lasted seven minutes and left many investors including these in wallstreetbets with questions. one reddit posting, why are the calls so short something dawned on me another post saying, how can less be more if more is more, maybe alluding to the shortness

of the call or lack of details the transformation strategy the chairman has been promising, gamestop, amc, koss, others, falling hard td ameritrade says it may be the start of a trend with the original meme names. >> i don't believe it's the end of the meme stocks, but it's a reconsideration of the meme stocks, at least in the shorter term by many of those who invested in them in the past >> yesterday, clover meme stock was the most talked about ticker on the wallstreetbets site, a post this morning putting the spin on the uncle sam poster, recruiting people to buy shares. if you take a look, clover, vin coventures, sand storm, some of the newer meme names, they are trading higher, all three seeing an uptick not too long after the gamestop call, possibly coincidence. we will watch trading volume later today. mor morgan back to you. >> thank you not the first earnings call from

gamestop where there was limited information and no questions taken either so, but, nonetheless, one to continue watching. thanks. let's turn to the broader markets with the dow and s&p up for the first time in four days. joining us senior markets commentator mike santoli mike, how would you categorize the move today we have been talking about this tight rang g range and the wall of worry that equities have to climb here. >> yeah. there has been a story that has been playing out under the service of the market for six or eight weeks where we have been positioning for some kind of weakness if you look at the sort of global reflation type stocks, they would have peaked around june 1st also, the meme stocks are seven months ago, peak frenzy there. you could argue even the kind of reopening trade was also peaked in april so when we get these reports or these predictions that in fact we are in a soft patch, i don't think thing market necessarily has to do a lot to price that

in look at the chemical stocks. they are down, you know, since june 1st, 20, 30%. i am not saying everything is in the market, but i think that's the push/pull underneath the surface. that last clicking to the new highs last week and the week before very incremental. every single day a cursory little gain. this week a very slow bleed of declines big picture, people recognize september can be tough and likely will have more air pockets because of this policy flux we are in the pattern has been we've had declines in the s&p, down near the 50-day average, right now 100 points lower on the s&p than where it is right now. we have had bottoms there, also had fiscal clifsignificant botte third week of every month. so all this stuff i think keeps people from getting too aggressive in either direction at least at the moment given where the markets come 20% for the year. >> yeah, i mean, continuing to get the taper commentary from

fed officials here in the u.s. in recent days you see what's going on at the ecb this morning that doesn't seem to have an impact when you see the green arrows across the board, albeit small moves higher. >> i feel as if the market is a little bit inpatient to get on with it in the sense not necessarily september having the bond purchases decline, but sort of get that catalyst out of the way and have that process going. so i think it's largely discounted at least psychologically among a lot of folks. the yields have been kind of steady and they have not really given ground we have been missing badly on a lot of the economic data and yet yields have not gone to new lows that sort of projects which direction the supply of new bonds out there that the market wants to take. >> mike, last week when we were doing the show together we spent a lot of time talking about the megacaps, which i notice are moving higher today. i don't know if there is anything there in terms of what you are watching in leadership or change in leadership, but

certainly love your take. >> yeah, i think the issue there, david, is that the megacap nasdaq stocks maybe got a little extended. they were part of the market doing the most work coming into this week. it seemed like there was some ground to give ton that front. yesterday was very much in that mode, mo news on the megacap techs, but they gave ground. the question is, would that be something that could be the cause for a broader market-wide weakness if we are going to get that again, these are very marginal around the edges type moves that we are seeing at the moment. i think that wholed why, are we going to able to pass this baton without dropping it how many more times from the large growth stocks perhaps back to cyclicals or something else. that's been the dynamic for a while. unclear if that's going to continue right now. >> mike santoli, thank you as we head to a quick blare a look at our mroadmap. amazon slamming spacex acue causing them of being rule

breakers. plus, the nfl gets back to business, including a ten-year 5g partnership with verizon. we will speak with superstar agent drew rosenhaus as the season kicks off tonight. morgan stanley is downgrade ago chip giant saying it has little upside even after beating the mark this year dow's up 116 "squawk on the street" continues. 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.

and there you have it— -woah. wireless on the most reliable exnetwork nationwide.ver in its most visionary form. wow! -big deal! ...we get unlimited for just $30 bucks. sweet, but mine has 5g included. relax people, my wireless is crushing it. that's because you all have xfinity mobile with your internet. 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. be reopening and kids could return to class, parents go back

to work and the economy could go back to normal steve leishman with a road back barometer showing for some kids and parents? is not the september they had expected hey, steve. >> yeah, unfortunately, you know, bush yeah, which tracked school openings and closings, they didn't think they needed to publish their data this fall they are busy over there tracking a small but fast growing and widespread number of school closings. the road back barometer back to school edition shows that 1,400 schools around the country have closed that's small compared to the 100,000 schools out there. it grew by 140% in the past week and the rink day of closures 8.7 days while the number is small, it's accelerating and widespread. school closings stand 35 states in texas, georgia, south carolina, and elsewhere in the south, but also in the north you can see from the purple dots

they mark september closings many are recent. that is schools just closed shortly after they reopened. somehave since opened again. now, schools have reacted delta among disrupted schools you see how they did it. 52% virtual, 40% closed entirely for some time, 5% delayed the start. it's unclear how many parents are affected by the closings more women have dropped out of the labor force than men since 2020 that's unusual in a recession. this time the pandemic hit the service industry hardest we know from surveys that childcare and schooling issues play a role at least part of the reason why we have yet to return to the labor force the fed yesterday mentioned delta and covid-1954 times in july just nine. they said that employers haven't seen the rush of applicants they

expected with school reopenings. this data may explain why. morgan. >> steve liesman, thank you. that is a very good place to start with our next guest. bright horizons operates 1,000 early education centers. steven cramer joins us now bright horizons does business with nbcuniversal. great to have you back on the show given the fact that is the beginning. school year and then on the flip side of that we to have concerns out there around this delta variant and the coronavirus and the fact that we have seen cases increase over the past month or so how are you navigating that with your facilities and what are you seeing in terms of enrollment and parents bringing their kids into those locations >> great to be here, morgan. thank you very much. so we are excited to be welcoming back families this september. we have the wonderful

opportunity to serve working families across the country. as you mentioned, across the globe. so, look, we have been operational in some of our centers throughout this entire pandemic, which has given us the opportunity to determine the best protocols that we can and put them in place and over time we have continued to layer additional protocols to ensure that we keep covid out of the classrooms and so we have had good success with this and i think it gives families great confidence to come back and return to childcare and specifically to bright horizon centers >> i want to dig into that a little bit the fact that you had centers open throughout the pandemic, you were able to navigate it, sounds like pretty successfully as well. what are some of those protocols? what are some of the layers you are adding looks like vaccine mandates is part of the equation what are the lessons learned >> yeah, so very early days we partnered with a leading infectious disease physician from boston children's hospital

and she has worked tirelessly with our covid response team so, first and foremost, we follow the science and we have the expertise of external support. in addition to that, we from the very beginning have recognized that hygiene and health checks and masks of all of our staff in our centers are critically important. in addition to that, more recently we've added to that mix the opportunity for children over 2 to be highly recommended to wear masks within our centers, and as you mentioned, most recently we have put in a requirement just last week to either have our staff members in our centers, our teachers, our heroes, be vaccinated or to go through weekly testing and we believe this is the next step in our enforcement of keeping covid out of our classrooms. >> do you have enough workers? >> we do i mean, look, it is absolutely

always been difficult to find high-quality practitioners and teachers to be in the childcare field. that said, we really focus on being an employer of choice. in fact, just recently we were recognized by "people" magazine as a company who cares but ultimately we are out there all the time as an advocate for teachers so we feel we get a disproportionate share of teachers who want to be in our profession and in our field because of the high-quality opportunities that they have at bright horizons. but ultimately staffing is always challenging and certainly in these times it is challenging. >> so just to go back to the masking piece of the equation as well, i mean, the fact that you are strongly encouraging children ages 2 and up to wear masks, but it doesn't sound like you are mandating i realize there are different types of regulations and rules on the ground not only by state, and certainly florida is getting a lot of attention now given the

fact that it is not allowing those mandates to be put in place by schools, for example, but how -- but what -- but how are you navigating that fwirch the fact that there are so many rules and regulations, what does it mean for the company, what it does it mean in terms of higher costs for the company? >> sure, so we absolutely follow the local mandates and the local requirements that said, we are an organization that really tries to educate our families that are in our care about what best practices look like. and so for many, many months we have been educating families about the importance of children over 2 wearing masks within our centers. and so again that happens at all levels, including teachers in the classroom sharing that knowledge. we bring in, as i said, outside experts to share with our families to make sure they understand the importance of it. certainly there is -- there are regions around the country where it is less in favor and regions of the country where it's more in favor

but we are finding universally at bright horizons that families are coming along with us, understanding the importance of keeping our community, our centers safe and healthy so ultimately we are finding good compliance with that aspect of our protocols >> steven, what do you tell parents who worry about the long-term effects of childhood development in education as young kids are having to rely on digital tools or even just the way in which the pandemic takes up some of the bandwidth that would normally be reserved for simply learning? do you think we have a good handle on that yet >> yeah, i mean, we are, obviously, advocates of early childhood development. so we are educating families on the importance of what their children are learning within our centers and unfortunately the importance of the learning that happens in the earliest years. in addition to that, i think we can all agree that to the extent that they have those social and emotional interactions with other children and with teachers as well as the actual learning

that goes on in the classrooms, children will be better able to continue to be successful both in the short term as well as in the long term. >> stephen cramer, we appreciate you joining us today thank for coming on. >> my pleasure thank you. as we head to break, space company rocket lab reporting the first results as a public company. revenue $29.5 million for the first half of the year, up 235%. adjusted ebidta loss of 18,000,136% jump in backlog as the rocket maker continues to sign more customers including a multilaunch agreement with french satellite operator kinies after the greek, space spat. reaching new altitudes as the battle between jeff bezos and elon musk continues. we'll be right back. stay with us eader. you sure you want to leave that all behind? yeah. stay restless with the rx crafted by lexus.

experience amazing at your lexus dealer. new customers get our best deals on all smartphones. that's right. but what if i'm already a customer? oh, no problem. hey, cam...? ah, same deal! yeah, it's kind of our thing. huh, that's a great deal... what if i'm new to at&t? cam, can you...? hey... but what about for existing customers? same deal. it's the same deal. is he ok? it's not complicated to open your possibilities. with at&t, everyone gets our best deals on every smartphone like a samsung galaxy z fold3 5g. our retirement plan with voya, keeps us moving forward. hey, kevin! hey, guys! they have customized solutions to help our family's special needs... giving us confidence in our future... ...and in kevin's. voya. well planned. well invested. well protected. ♪♪ 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.

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. the street." the rivalry between the world's two richest men and their companies is getting nastier in a file with the s.e.c. jeff bezos amazon accusing elon musk of not complying with government regulations and rules saying,

quote, whether it is launching satellites with unlicensed antennas, launching rockets without approval, building an unaid proved launch tower or reopening a factory in violation of a shell in place order, the conduct of spacex and other musk-led companies thaks mayor view plain, rules are deserving of derision and ad hominem attacks. spacex has not responded to a request for comment. just for some context here, amazon, which is building a satellite constellation, last month asked the fcc to dismiss a proposed spacex starlink satellite constellation revision spacex responded by calling that move a, quote, continuation of efforts by the amazon family of companies to hinder competitors and it comes amid a legal fight involving bezos' other companies, blue origin is suing the government for a lunar lander musk has weighed in on twitter in recent weeks, including this

tweet in late august that, quote, turns out bezos, which is spelled wrong, retired an order to pursue a full-time job filing lawsuits against spacex. guys, this is pretty public spat here to say the least. but it's because there are billions and billions on the line spacex already has 100,000 customers for starlink and 1,700 satellites in low earth orbit. amazon is pouring $10 billion into the project kuiper. >> and that's separate from blue origin amazon money going to an amazon -- >> quite a bit of money, whether the satellite constellation or money into aws for cloud computing into space so both of bezos' companies that he founded are fighting to some extent with spacex. >> blue origin the launch partner for the satellites >> potentially in the future but that is -- that orbital rocket under development called

new glen at blue origin continues. the timeline this for that to have its made in flight continues to slip as well. yes, pru zoomably that about be the case in the future it goes back to some of the, i guess, discussion how far behind blue origins is in some of its aspirations right now whereas spacex is kind of like spacex and everybody else in the special space race, historic firsts, et cetera. >> amazon's communication strategy, getting belligerent on jedi, nlrb, and now this. >> and i think that's a good point because these legal fights whether it is amazon with jedi or whether it was a couple of years ago blue origins taking on the air force with a launch competition there has in the past been very successful. we'll see how it plays out now and i say that because of this lunar lander fight, this lawsuit that's going on for blue

origins, which they already through a process were not successful we will see how that continues to play out. >> of course, two of the wealthiest men on the planet always worth mentioning. although i think bernard arnault is number one. >> yeah, at lbmh, which is interesting. and he has no interest in space, from what i understand. >> it is a growing pool, dare i say, of billionaires starting to make investments directly or indire indirectly in the sector. the dow jones internet up 30% over 12 points amazon, facebook, alphabet in there. sis sew, too, although a bit lower. morgan stanley cuts to equal weight, says the multiple quote has expand today a level nearer to historical discounts if the s&p 500. speaking of the s&p 500, green once again f steerorepmb dow still needs another 250 points

♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ 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. hey look. we're twinsies. at cvs, flu shots can be free, safe, and quick. so the whole family can get them. now we're twinsies. get $5 dollars off $20

with each free flu shot at cvs.

welcome back here is your cnbc update at this hour president biden is preparing to require covid-19 vaccinations for all federal workers and government contractors testing will no longer be an option for those who don't want to be vaccinated biden will make the announcement today as he outlines other steps that the administration will be taking to fight the delta variant. nbc also reporting that white house will request draw its nominee to run the bureau of alcohol, tobacco, firearms and explosives he was not winning over moderate democrats and faced unanimous opposition from republicans due to his work with the group pushing for stricter gun laws. and democratic senator amy klobuchar has been successfully treated for breast cancer. appearing on abc's "good morning america" she said that it was a

scary experience but she feels better now she urged americans not to put off routine medical exams during the pandemic as she did. important reminder carl, back to you. >> thank you very much. this weekend as you know marks 20 years since the 9/11 terrorist attacks. before that horrific day lower manhattan was an office district who had few grocery stores, few playgrounds or anything open past happy hour. the attacks on the world trade center changed that. >> tore my stomach out i could hardly breathe i made over 3 million square feet of deals at the original world trade centers. >> he watched 20 years ago as a terror attack brought down buildings he knew so well. >> the amount of damage was unbelievable. >> in an instant an immediate halt to the financial businesses that made up the economic lifeblood of lower manhattan. >> a huge ex disand 15 million

square feet of office space that was displaced and corporations scampering around the city and the tri-state area to find facilities. >> reporter: what had been a concrete jungle for nearly 400,000 office workers turned into a ghost town. but into that void stepped opportunists, dreamers and the defiance. >> i think that part of my motivation was really i am not going to abandon the city. the city has life. and it's a possibility. >> reporter: in 2002 he moved into lower manhattan even as the cleanup at ground zero continued. bought a historic building, started a wine boutique without many neighbors to sell wine to. >> i was praying the residents would come and they did. >> reporter: by 2020, the number of apartments more than doubled. baby strollers now wind past wall street. new grocery stores and schools $30 billion in public and private investment resulted in astonishing architecture, modern

transportation hubs and public spaces, including the 9/11 memorial, a primary destination for visitors and while there are 25% fewer office workers now than in 2001. there is a wider blend of companies, including uber and spotify. >> people wearing hoodies and funky sneakers not working nine to five and you see that difference it's a new segment of the economy and it has diversefied our economy here, which is a goal for a very long time. >> reporter: now you have the financial district these office buildings converted to apartments and then playgrounds all blended together the transition of course has not been without massive challenges. the great recession and superstorm sandy was under five feet of water. of course, the pandemic, which sent office workers and residents fleeing for the hills. so there are very real questions about if and when they come back this time around, david.

>> yeah. some key questions again of course, contessa thank you. our next guest covered that day, including the story of a security guard who saved all but six of morgan stanley's employees in the south tower in his bookhart of a soldier. jim, first, you know, give me your reflections 20 years later and as well we always talk with you about the markets. it's important to remember the market was closed for quite some time after the attacks. >> right well, you know, i was here when it happened. i lived at 29th and 6th avenue, which 6th avenue terminated in the world trade center, and i and my neighbors were down on the street watching with horror when the whole thing went down i just -- the searing memory that will never, never leave me. but strangelyenough, i was writing my column for "the wall street journal" back then whether it happened.

it was due that day. and i was sitting up there after i went back upstairs in shock and at a time like that, i mean, i couldn't write anything. i mean, what -- you know, who could think? the stock market was the farthest thing from my mind. fortunately, david remick, "the new yorker" called and said would i do some work for them about starting with the terrible loss down there. so i never turned that column in as far as i know, nobody ever noticed. known called and said, hey, where was that stock market column of course, there were huge financial implications here. it was an extraneous event a little bit like the pandemic in some ways that is not an economic thing in itself, but with just enormous ramifications. what i remember so vividly that day was just the void of uncertainty that everybody was staring into as you say, the stock market was

closed one of the great hallmarks of the u.s. markets is their liquid if you need your money, you can get them there will be a place you can get it, and that was shut down then nobody knew, was this the beginning of a wave of attacks or was this it where was this going next? it was a level of panic and fear that to this day i have never experienced again and i hope we never do. >> yeah, we all certainly hope that these last 20 years haven't been wult tumult, obviously, beginning with 9/11 and then a financial crisis eight years later and then 12 years later we have a pandemic, jim i mean, it has been sort of one thing after another. it's interesting, of course, unifying thing there perhaps the fed has always been there, hasn't it, to give the market its all? >> and i think the fed has learned a lot through these experiences, including reactions

to september 11th and the importance, again, of liquidity, which the fed can, you know, play a major role in doing one thing that struck me over all these years, going back to even before, is the collective wisdom of investors is very powerful and eventually no matter what the emotional level of fear and panic, the facts reassert themselves the markets are, over the longer term, very rational, very focused on what matters, which is economic activity and ultimately earnings in the stock market so it was -- it's very clear to me looking back, the market takes a very long view i mean, there was tremendous panic when the market finally reopened think it was after six days after being closed people were terrified about what

was going to happen with , woul the bottom drop out. it was a historic plunge, but it didn't collapse completely buyers did step in and fairly soon, really, the market recovered those losses back in 2001 it went on to a steep decline in 2002 in the context of the tech bubble having burst in 2000, not really anything to do with the terrorist attacks. so i think one thing i certainly learned as an investor is don't try to trade on these, you know, panicky fear-inducing emotion-driven moments, but step back, take a deep breath, and wage because reason eventually reasserts itself >> i think it's easy sometimes to refer to the markets or wall street as almost these amorphous things when really they are

comprised of people. this book recounts some of those people, and specifically the life of a man who basically dedicated his life in those final moments to saving others here on wall street. just 20 years later, if you could share a little bit of that story and some of those people you have encountered in the process. >> this was the story of rick, who did, he gave his own life-saving others that day. and it was so clear. the book really goes through his whole life that was his destiny he was somehow, he was put on this earth to fulfill that mission in my view i only found out about him because that day i started doing some reporting, you know, again the losses were horrible it was like nothing but loss and tragedy and sadness. and that day i did notice that, you know, i was looking at the losses from the various firms down there, and morgan stanley really stood out they were the largest employer

in the world trade center, over 3,000 employees, and only had six fatalities companies above them had way more and companies below them had way more it's like the dog that doesn't bark it wasn't the main story but i was puzzled and intrigued by that could this be a glimmer of good news interestingly, i was talking about this to cnbc's own jim cramer and he said i think there was some guy in charge of security there and that, you know, i started looking more into it and that's how i finally found out about rick the more i learned, the more incredible the story seemed. he was out of the center that day, had gotten everybody out. that in of itself is a pretty amazing story. but then there were six people still missing. and his sense of duty was so strong that he went back up into the tower to save those people

who had, you know, stubbornly refused to come out. in doing that, he gave his own life so, you know, to me it was -- there was good news that came out of this, too and i think that's true in any tragedy, you know, people behave and react in different ways, but for some people the best in their nature emerges when the times are the worst. and that's what i found so inspiring about that story >> well, thanks for sharing a bit of it as well, jim and your reflections overall hard to imagine 20 years jim stuart, thank you. as we go to a break, check out shares of moderna. those are up 6% now. the company holding the investor day today saying it is developing a single dose combination covid and flu shot we'll be right back. 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. 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.

♪ 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. are investors getting a green or red light from the kmopdty market in we will dig

into the moves in copper, lumber, oil and tell you what it tells us about the broader market and where we go from here on tradingnation.cnbc.com. more "squawk on the street" coming up. 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. 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. 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. no the nfl back to business tonight on nbc with the defending champ buccaneers taking on the cowboys. not many more more about football, drew rosenhaus, who is clients include gronk, who will be on the field tonight. great to have you. we have been looking to this day for a long time. i was thinking, last year camp was messy and we were getting headlines about missed practices and cases really blowing up the preseason. doesn't feel like that this year obviously, some players who have gotten sick, but the nfl has tough rules. i wonder if you think that means good things for the season >> it definitely means good things for the season. the nfl and the nfl players association, the organizations have done a fantastic job of

managing covid in the nfl. right now there is only a handful of players on the covid list one them happens to be a pro bowl guard for the dallas cowboys, zach martin, who won't play tonight in all likelihood that's one of the only notable ones u i am very confident that covid will not affect the nfl's season the nfl's got fantastic protocols in place the vaccinations are at over 90% among nfl players. and i think it's going to work >> i think, yeah, nfl says 99% ever of league and team staff are vaccinated i wonder, what is it about the league that has pushed that rate so high? >> money if you want to get paid -- if you want to get paid, you need to play. the nfl basically said if you miss a game this year because of covid, you do not get paid

so players want to get paid. coaches want to get paid teams, owners want to get paid they are getting vaccinated so that they have a likelihood of playing, and, obviously, the vaccinations decrease the chances of contracting covid or the severity of it, and that has had a huge impact. also, the nfl teams said to the players, most of them, if you want to play for us, you're getting vaccinated if you want us to sinus, you are getting vaccinated if you want to a job in the nfl, you are getting vaccinated very few guys in the nfl right now are not vaccinated and the vast majority of them are very good football players, otherwise they would be looking for work right now. >> that's interesting, drew. and yet we continue to see this pushback despite the fact you have more than 90% of players vaccinated, a push back from the players union essentially on actual mandates on vaccines.

why do you think that is >> well, because even the small percentage of players in the nfl a who are not vaccinated happen to be very prominent. we have quite a few that are starting quarterbacks in the nfl like the kirk cousins or a carson players like beasley, all pro last year, felt very strongly about not getting vaccinated, the nflpa, they're trying to be all inclusive and include everybody and that includes the small percentage of players who feel very strongly about not being forced to get a vaccine. >> drew, finally, i wonder, this overlay between the nfl, bitcoin, gaming, nfts, do you find that interesting and why do you think it appears to be so strong >> this is a revolutionary time right now in the nfl where gambling is a big part of the nfl. obviously we had fantasy football and now we're taking it

to another level with legalized gambling and the nfl embracing that the nfts, electronic currency, bitcoin, all of this is now part of it, every day nfl vernacular, the owners who are embracing it, the owners are making deals left and right, so are the players, it is just another revenue stream for the monster, the revenue monster that the nfl is, and they do a great job of tapping into it. it is great for the league and great for the economy. >> yeah, and some would argue great for crypto we'll hear a lot about it even during the games tonight drew, we can't wait, we look forward to talking to you all season long. thanks >> look forward to that as well. take care. we're getting some news now on proxy battle between starboard and box. leslie picker has that news for us >> hey, david. yes, according to one person familiar with the vote count, i'm told that box was successful

in electing its three nominees to the ten-person board for the company. as you mentioned it had been in a proxy battle with dissident starboard, for those three board seats, something that has gone on for several months now and was a victory for the company. this is notable because i'm pretty sure that the last time starboard actually lost a proxy contest was back in 2012 with aol, so about nine years for a very active activist investor, but usually starboard tends to settle before it gets to that point. starboard did actually settle with box back in 2020, elected three independent nominees to the board, but things got a little dicey after they did a capital raise that involved kkr, that starboard wasn't happy with, launching this proxy fight a few months ago and now based on a person familiar with the matter, box seems to have been successful here. carl

>> leslie, thank you for that. good update, leslie picker we have a big show coming up on "techcheck" in the next hour including the commissioner of the nfl, roger goodell also the ceos of microsoft, linkedin, verizon and logictech coming up at the top of the hour 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. ♪

beyond meat bouncing back after declining yesterday after partners with mcdonalds, the offering will launch at a limited number of restaurants in the coming weeks before going nationwide in 2022 shares are down 2% we'll be right back. you sure you want to leave that all behind? yeah. stay restless with the rx crafted by lexus. experience amazing at your lexus dealer. hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, 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. ♪ ♪ ♪ ♪ ♪ ♪

♪ ♪ 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.

it is not just the airlines warning of a covid slowdown today. seema mody has that for us seema? >> good morning. we heard from marriott ceo tony capuano who says the decline in business travel is prompting hotel operators to refocus on the leisure traveler listen in. >> more leisure guests in a hotel that has historically been heavily weighted towards business travelers and making sure they're armed to provide the sorts of information that that leisure traveler demands. maybe being a bit more creative on the offerings we have in our food and beverage outlets, in our room service menus, to try to tailor a little more. >> and he added when you look at the potential impact of the delta variant, the timing of a

return to office, it is possible that he may not see business transient demand return as quickly as he may have thought or hoped post labor day. of course a big part of the conversation as we watch the recent news from the airlines, david. >> yeah. though many of those stocks, seema, are not suffering today seema, thank you that does itfor us on "squawk on the street. "techcheck" starts now good thursday morning, welcome to "techcheck. i'm carl quintanilla with jon fortt and julia boorstin what a show. a huge hour coming up on "techcheck" today, the latest on microsoft's dive into hybrid work, and exclusive interview with ceo satya nadella, alongside linkedin ceo ryan roslansky. then hea