dow futures up by 225. the s&p up by just over 30, the nasdaq up by about 95. remember, though, cramer says watch out. we've been up and giving it back during the session we will see, again, just about a half hour to go until the opening bell that does it for us today. gentlemen, see you back here tomorrow, and we hope we see all of you back here with us too right now it's time for "squawk on the street. >> good monday morning, welcome to "squawk on the street." i'm carl quintanilla with jim fa cramer got nor cautionary notes from the sell side on commodity inflation, tax policy risk and now 3m warning about q 3 inflation running hot. our road map begins with the risks for equities stocks are set to rally. goldman says tax reform not reduced economic growth is the

key risk for investors p >> kansas city southern says it will terminate its merger agreement with canadian national it's giving it five business days to come back with a better bid than canadian pacific's currently favored deal. beijing looking to bring up allie pay, china's most popular payments app that 3m news rolled in about a half an hour ago they cut their auto production targets as it's running even hotter than they thought. >> they were looking for 3, which sent the stock down. when you see down at the beginning of the year, remember, we're in that period where we're really looking at 2022 there's a chart for you. you just don't have any incentive to buy david, i find there are a lot of stocks like 3m that are looking down at the opening. the overall futures indicate that things are up, and it turns out that the 3ms, whichever company's down, both nike and 3m

are in the dow they can send it down lower. >> they can. i mean, right now it doesn't look like it's going to be too much damage. we'll see how the stock opens 29 minutes or so from now you mentioned nike as well that's not news from the company. that's just a downgrade. >> it does deal with similar issues i guess in some ways, talking about the supply chain, btig this is nike we're talking about now. you can see that stock also may be down roughly the same amount as 3m saying their contacts, all of which point to severe supply chain disruptions, emanated from the covid driven factory shutdowns in vietnam that have worsened since the company last reported on june 24th. so thatalso sort of added it t the mix here >> that's 50%, i think carl what's interesting is there are a lot of companies in response to president trump that moved business from china to vietnam vietnam had a wave of covid plus the ports aren't deep enough so it was a great idea in

principle, but in the end, it's really hurting companies it looks like that nike, which has been flirting with 165 and had a decent china number in terms of sales, it's going to get hurt today it does matter. >> there is one line of thinking that futures are green because some of the tax picture that's filling in is not as aggressive as it might have been. capital gains may have been going from 21 to 25, not 21 to 39 >> that was very good, capital gains, i worked with larry kudlow for a long time, former chief economist. and he used to talk about the need to keep that number low be able to start business. i was surprised. i thought the capital gains under the democrats has typically been the rich are getting away with it then they put a 3% surtax. i don't know if that's going to pass >> scores over 5 million that's w-2, right? >> call them rich, is that wrong? >> that'd be pretty rich

also the corporate rate now proposed 26 1/2. none of this means any of this will actually happen or the fate of that $3.5 trillion is certainly -- >> i'm sorry, no, he's just senator manchin, right but he seems to be the most important person in washington i've got a line in to him, and he is basically the man to see we haven't had one of those in a long time. >> it's 50/50, right he's an important -- it's an important vote >> we'll talk about this note out of gold man that basically says tax reform is the key risk to u.s. equities through the end of this year man chin did talk to chuck todd about what he would support. take a listen. >> there's not a rush to do that right now. we don't have an urgency, don't you think we ought to debate a bit mor? >> so you're not against this. you could support this $3.5 trillion plan. >> no. >> it is not a time issue.

it really is a cost issue. >> we got 5.4 out right now. >> okay. >> okay. that's the 3.5 they want to spend. >> over eight or ten years. >> still, it's going to be a lot more than 3.5 over eight or ten years because it will continue >> keyword there, they i mean, last i looked he was a democrat, now he's from the state where it's really hard to be a democrat, but he says they want to spend 3.5. who is he speaking of? i thought that was we want to spend 3.5, but he's not. >> and he's makiing a point it's above that it's very much unclear >> there's incredible urgency. >>. >> 3.5 trillion down to 1.5 trillion, is that where sort of man chin can come on board and you can see a way to get that done through reconciliation, remember, which will only require 50 plus the dp in favor >> maybe >> it will be the typical infrastructure stocks have just

been horrendous and they are a great tail, carl, for where this bill is. m manchin and caterpillar. >> this is a separate bill from infrastructure. >> everything is stalled they're making it so i know costin's right, but the problem with it is if there's no urgency, how do we make a judgment that it's going to impact 2021 numbers. >> there's the added layer of say you got an infrastructure bill, where would the raw materials come from? this goldman note warning about commodity prices and ongoing scarcity they're talking about oil going back to 80. >> right >> aluminum. >> gas >> by the way, you guys seen ura uranium? i know that's a little -- see what's going on with euranium? >> actually, no. >> it's out of control it's gone up enormously because of potentially recommissioning nuclear power is -- climate change and coming around, but yes, uranium has moved up dramatically. >> i went to buy a bicycle this

weekend. have you seen these? i went to see a trex bucks, i thought maybe 600, 700, it was 4,000. >> i went to pc richard to buy a speaker and we were just chatting with the dude, he's like you want a new subzero ice maker, july. >> july already happened >> the next july. >> wait for the next one >> meanwhile, my coffee guy says his costs have gone up 30% also. >> we all know it. that's the thing that's so difficult. why is the market down the market has been going down of late. i've had a bathroom started in february, and it's nowhere near. you need glass forget it. i mean, you're begging ckoehler, private company, nothing you can't get a job done >> when are all these supply chain disruptions going to start to melt away so to speak or when does this -- >> i think when the ice maker

melts away i think that we're all kind of sitting here thinking, well, if you had bought the speaker, what would it be? if i buy the bike, i try to buy a carbon steel rather than aluminum carbon steel is up more than aluminum the raw costs of everything, including your coffee guide, which may be the lipstick indicator, margins must be horrible. >> also because foot traffic here in this area is down drama dramatically it's not easy for a small office man. >> starbucks 119 going to 125. >> from zipper to glass, shortages of basic goods hobble u.s. economy, but your general view has been at least on say oil that demand destruction will keep it in check to some degree. >> this is where the saudis have a price. they don't want it to go to 80 the one that we have to talk about, we're going to be talking about all winter, natural gas, because there's a mismatch with pipelines, natural gas is going to end up being the cost for consumers.

>> you made that point last week on "mad" as well. >> i'm not going away with that one. i've got a couple of guys talking about how we've exported our way into hell. >> is it really going up that much because we're exporting that much? >> we had ida, yuri. >> i had an aunt ida not really related to situation. >> what are we talking about here, plastic basic building block. there just is no glass how about the fact that 3m is saying if you lower the auto, we're going to be back again with the used trucks and cars being more valuable than the actual cars because they're not available. >> plastic, too? >> they mentioned resin,pulp, l. >> what's left

>> we actually watched "the graduate." that guy's still right didn't hold up, though, the movie. >> boss was so good in that. >> say again. >> ross. >> you can't go wrong. >> what do you mean, ann bancroft is amazing. >> it's good information you know when you're dealing with autos, you're talking about autos in housing they're kind of the u.s. manufacturing, and they're all down versus last year. >> okay. which leads you where on the market you've been expecting a volatile september. >> september 17th, historically been the beginning for the last 20 years of a major selloff. i think people are trying to get ahead of that. once again you got the futures up that's probably going to be a pickoff i think. wait until they're down. every day this thing happens, when you open up, everyone says the market looks great nothing looks great. when you're dealing with the actual underlying stocks, unless you're talking about amc and disney. >> right, which we can get to.

i do want to hit -- >> did you see it? everyone's talking about that movie. >> no. >> shang-chi >> it's doing very well. >> why don't we go to see it, october 8th. >> i might actually go to the movie theater. >> i'm going. >> are you >> yeah, i'm going i'm going to one of those where you have -- brought to you in the middle of the theater. >> back more than ever. >> i'm going there too anywhere they'll bring me something. all right, guys, real quick on the rails because it did hit yesterday. >> what do we think here >> we think that it's more likely than not that canadian pacific is going to win the day here they've got five business days, let's call it until the end of the week we may not hear from them. they said a couple of things in terms of quotes to, you know, the journal and the like, but basically it's an uphill battle to try to come back with some sort of a deal where they would obviously increase the price but vastly increase the size of the break fee they'd have to pay

this is where we stand it's 2.884 that's superior. we know we can actually get the money, after the stb in that 5-0 ruling that really just crushed canadian national. that's the way you have to view it they left them so much room to get anything done. they're dealing with the activist investor in tci yes, they own a lot of canadian pacific as well, and they want that deal to happen. it doesn't mean they aren't a significant force here against cn's attempts to potentially say what they possibly could do here to try to make it so that the kansas city southern board would change their opinion highly unlikely. we still got time. we haven't heard anything official from cn so we'll wait. on kansas city southern, if and when they do finally sign that deal, they still need their shareholder vote they need a cp vote. they still need mexican approval it's not that many months until you get your money if you're a kansas city southern shareholder. they have the approval of the voting trust, and that was the

key here, cp has that approval, and kansas city -- canadian national does not. >> does it matter that the rails peaked about a month and a half ago, and they were paying way too much particularly because the mexican car production is done >> these guys, look at csx >> there's a scarcity value here that's playing out for more than just the ups and downs that are occurs. >> oh, so you're saying that the volatility that i've noticed is irrelevant >> i'm not saying it's irrelevant, but yes, to the long-term view that they have at canadian pacific or canadian national for the value of this asset, i am saying that. >> short-term if they had both walked away, the stock would collapse i like your view. >> what you? >> i like your view. i've endorsed your view. i. >> i appreciate that we've got to look into uranium we're going to look tat it. >> 20% plus is nuclear >> yeah, well, after -- things

really came down but now they're starting to recommission i'm not quite sure what's going on. >> there's actually interesting political circumstance lairty from the left and right on nuclear. >> we know it's the cleanest >> you can't build a new one that's what i always thought mattered. >> maybe you need to. >> there's a lot to get to a tlot of initiations from goldman today. we'll set up for a big week, an apple event tomorrow, gensler on the hill futures are green. we're back in a montme if you wake up thinking about the market and want to make the right moves fast...

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epic games appealing that friday court ruling. epic the creator of the popular fortnite game did win that victory. it's been 72 hours, people still can't -- >> i went through it the only thing that judge rogers could find for epic was that there could be incipient antitrust violations under the cart right act, which is not even the sherman antitrust this is a big win for apple because frankly, whatever

remedy, she didn't give -- did not give apple remedy, but if apple sends you an email saying, listen, you can do this. that's all that apple has to do. i think that epic appealed epic basically lost almost everything epic has failed to prove any sort of monopoly david, when you go through this ruling, which is one of the shodiest rulings i can recall, you frankly are shocked that a judge could literally say apple did this wrong and not give a remedy >> why do you call it the shoddiness is because of that? because there was no remedy? why did he call it shoddy. >> most of the opinions about what's gaming, and whether apple did something about gaming, transaction gaming it was -- when i went to law school, i had this judge, i had this professor, and he taught us that antitrust is kind of like seven pages. there's not much to it

you violated sherman, violated clayton, nothing apple may not even appeal it's so small i was in shock that this stock was down 5 maybe 1% -- >> epic is the one who's going to -- >> epic was thinking this could be sherman antitrust there is no sherman antitrust. c cartwright, we're talking about some california thing. it wasn't antitrust, david it was incipient antitrust when you read it, the only thing they won was -- it kind of falls in the purview of an incipient antitrust violation. i mean, hello. sherman is the -- >> right, now that's california, cartright. >> i could not believe the stock was down it was such a big win for apple. you know what? you had to get to page 166, and it was really, really hard, and only if you're watching the destruction of the falcons could you really get through this whole thing.

all right david? it took that long. fortunately the eagles are so far ahead -- >> i didn't watch any football yesterday, sorry >> i was talking to my wife about this, i said this is a really hard decision she goes, i know, it's very difficult. >> siri. has some opinions about that >> siri knows so much than the rest of us when you have siri basically deciding for you what to say. >> we're going to talk more about what apple may say tomorrow regarding the iphone 13 and the new watch, if that's what we get. cramer's mad dash and the opening bell in just 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. (vo) at t-mobile for business, unconventional thinking crafted by lexus. means we see things differently, so you can focus on what matters most.

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seven minutes or so before we get started with trading here at the new york stock exchange a new week, of course, for that. let's get to our first mad dash of the week as well. we talked a bit about disney and their plan for releasing movies. >> yeah. >> in theaters the rest of the year, amc is the name you want to focus on. >> i want to talk about amc's adam aaron, ceo, is there anyone who can say where this should be valued it it trades on the weekend box office and whether it's better than 2019. trades on something like this news the issue is that the balance sheet is wildly imperfect. adam has structured the balance sheet so he doesn't have to pay much at the beginning. i said something positive about adam aaron on friday and i can tell you i was overwhelmed with negativity about amc have i looked at the balance sheet. this is one of the great conundrums of our era, i don't know what it's worth i can't -- i mean, to me

obviously if it's on earnings, if it's on sales, it's worth much less. >> much less. >> but if it's on crowd enthusiasm and popcorn, it goes higher i don't know what to say about it. >> it's hung in there for quite some time, far longer than many anticipated after the initial jump up when its memeification began. >> this was all within a very short period of time when adam aaron basically has decided to take advantage of it >> yes he communicates with his shareholder base, and he will tell us as he did when he came on, these are my shoulders, not institutions >> he basically did what you're supposed to do in capitalism he raised money and the shareholders bought it. >> yes >> and he therefore got the money to be able to make it so he could fix his balance sheet >> right >> there's no fundamental reason you just can't >> i would almost like to own the stock.

is that better than say 3m. >> you're not alone. >> that's right. >> 25 billion beginning today going higher as a market value. >> how'd your mutual fund do >> if you own that, you did well >> there it is >> how as a fundamentally driven money manager, do you possibly buy the stock? >> can't, no discipline. you would be fired zb. >> you can't you can't. >> what can i say? david, it's better than any spac >> adam aaron's got to be waiting to sell stock. >> his net worth has gone from here to here. >> adam's got a deal he's disclosed everything he's going to sell. he's completely above board. >> i know he is, but he's got to be sitting there every day going when can i monetize. >> no, he isn't. >> he's sitting there saying when can i grow? >> we've got an opening bell coming up. stay with us

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airlines bookings appear to be stabilizing after softness, lines up with recent management commentary the next three weeks historically have been some of the biggest bookings >> day-to-day it seems like, all right, now let's just understand we're all pretty much vaccinated we may get sick. we may not it's really interesting. so see game after game after game this weekend packed, so i mean -- >> the nfl you mean? >> nfl >> so i think -- i don't want to say it's over, obviously it's not over there is a sense that you know what all right, maybe i get it. >> life goes on for those who are vaccinated certainly, and although -- >> yeah, i mean, some people come back to work. most people are not. there's still quite a few people who prefer to stay home for any number of reasons. many by the way, which i hear they're happy to stay home they also have to go out to bars, restaurants, parties. >> so they'll travel >> they should travel.

>> i do hear from their management oftentimes frustrated with their younger employees we're not coming to the office >> last week they all lowered numbers for september and october. did they just get it wrong is everybody wrong >> get the opening bell here at the nysc at the big board, a geo spatial intelligence company at the nasdaq service commerce platform ever commerce, interestingly, story on reuters that some u.s. health officials or former officials believe we'll get a 5 to 11-year-old approval on the vaccine. maybe by the end of october. la lancet has a piece out this morning that argue there's no need for boosters right now. the vaccine's that good. >> i find that whole argument there's no need for boosters pathetic we all know if you were to talk

to abbott. you could say they're self-interested, you talk to pfizer people want them. i think the cdc is being stupid. they're pathetic they've said nothing about trying to make it so the onus is on you if you haven't. i find that the booster is the way to get to 99%. there are a lot of -- what is their reasoning, david, do we have any reasoning other than the fact that we don't have the right to do it i mean, what's the reasoning behind -- >> the reason would be that the pfizer and moderna vaccines are extremely effective at preventing -- at preventing serious illness. >> but that's just wrong beginning month six, everyone would tell you, everyone meaning anyone in the industry including not self-interested drug companies would say there's a market decline in power, but once again, you find that the lack of leadership -- i was looking at the people on the boards of these different agencies, i would much prefer

dr. bourla i've got to tell you, pfizer, i think the numbers are too low. >> you don't think that they see dollar signs in vaccine revenue? >> i think they said early on there would be a dramatic decline in the power of these vaccines i shouldn't use the word dramatically decline. during that window i got my third moderna. there's this window where president biden said we should get a booster, and then the usual clown show of federal officials said, no, don't get a booster, even though the data very, very clear that you need a booster. it's a clown show. >> the data being the efficacy of the vaccine after six months. >> who do you think east getting all the -- >> we've going to have a huge breakthrough because we're now going to start getting into the seven, eight months. then again people say breakthrough does not mean much. you take the regeneron. >> most people thankfully don't get overly sick, some do, but very, very, very few end up

hospitalizes and fewer end up dead. >> but why does our government say something that frankly doesn't hold up under any scrutiny why? >> they're just confused. >> the cdata is unclear. >> i don't know what's going on over there. >> there isn't anything in the industry who is away from pfizer that doesn't say, yeah, sure, it'd be great to get that. that would really kind of lock things up if everybody got the booster, and president biden said it. president biden said ron klain. >> ron klain was the ebola czar but now he's the chief of staff. >> we don't know why the cdc does what it does. they're like fredonia. >> duck soup >> they actually -- that's how they treat things, right

take up the taxes. honestly, they are a complete dictator of what what do they know? they never come forward. what we know is that if you can get a booster, it's better than no, except for the fact that the cdc says you don't need it. >> probably no harm. >> there's no scrutiny of them there's no scrutiny. >> there is. there have been people who have been very critical and continue to be. >> who >> you scott gottlieb hasn't been a fad. >> dr. gottlieb, he was only, what, the head of the fda. why is the nih not in favor of the regeneron drug that keeps you out of the hospital? the answer is we don't know because they don't feel like they have to answer to anyone. they think they're the supreme court of vaccine, they're the law of the land. i mean, not that i want to be the florida governor who says, listen, you shouldn't take anything because you have every right to get someone else sick it's not in the constitution, though, according to the federal judge. >> you've been consistent in

your criticism, at least of the agency >> i've never seen anything like it there's no scrutiny. and fauci's got just a huge pass because, well, i don't know, he's distinguished he's done a lot of good things. >> there's been a lot of data on a lot of different things that has been hard to quantify. their mission isn't to provide realtime updates they're more of a look back and that has made it difficult we might need a new organization somehow to really be able to give us guidance on these kinds of things. >> likea dhs for health look how long it's taking them to tackle e-cigarettes they're still dragging on regulation it's hard to imagine they can keep up with variants that come in a matter of weeks. >> they're obviously way behind on everything, and dr. gottlieb every morning tells you what to do in the morning, and dr. topol tells you what to do in the evening, and they should just read the tweets and say, okay, listen, we know less than dr. topol. we know less than gottlieb, so

let's ride the coat tails. >> really quick. energy is driving everything today. s&p energy up 2% crude back to above 70 >> this is where the -- checked in lee couperman had a dramatic discussion last week on "squawk box" about how this group's not done i continue to believe it's the nat natural gas ones that you want, not the predominantly oil one because there's just no top. it's a high ceiling as we say. >> we have a lot that we are supporting both -- i mean, there's public and privately traded natural gas exporting companies. >> would the solution be uranium, david >> one of the largest private and obviously you've got -- which we've talked about many times. >> apa is a real play. cabinet's already -- >> all these names are up as well

it's obviously not related necessarily to natural gas as much as it is oil. i mentioned uranium, guys. i'm going to show you what it has been doing it is worth mentioning there is also a story about the sprot fund that has increased at the market buying of uranium from 85 million to over a billion. you can see -- >> it can be corner -- can you corner the market? >> look at that move much of the that move for the year has taken place in the last few weeks. you do have this sort of recommissioning, but you also have this new fund that's buying physical uranium for the last few weeks. there's something there and we'll keep an eye on that. >> how about bitcoin >> i haven't discussed bitcoin. >> it looks like walmart is doing -- >> pay with light coin walmart was that doug mcmillan. >> how do you pay at walmart with light coin? how do you do that

>> you've never even been to walmart. >> i've been to walmarts i enjoy going to a walmart. >> when i read this story about light coin, can we just say this is becoming farcical does anyone go to walmart and pay with light coin? i mean, do they? >> obviously you got to do it online you're not doing it in a store >> will they let us pay in dogecoins. >> the opportunity to seamlessly make payments with cryptocurrencies >> tech nomic had a seminar over the weekend. in terms of restaurants about 4% of operators intend to start accepting it in the coming year >> well, i mean, it's -- >> cheaper and faster than bitcoin apparently according to walmart is light coin. uses the same coin. >> how did they select that one? >> why light coin? released in 2011, light coin is one of the oldest digital

currencies in the crypto ecosystem. >> wow, and it is similar is to bin coin in that it uses the same cold. >> the oldest, ten years old. >> and assures many similarities very specific genus. >> can you pay ransomware with light coin >> it was designed to be used for cheaper transactions and be more efficient for everyday use. >> so walmart is just like every day low price, so it's keeping with all of walmart's ethos, right? >> also announcing i think a partnership with t-mobile to put some stores. >> i saw that. >> i'd like them to announce better earnings. that would be -- i think that would do the trick, david. how about the fact that this walmart plus is going nowhere fast. >> maybe it's all designed for that reason. >> by the way, speaking of all of that, the goldman initiations today, including amazon, which they started a buy 42.50, facebook a buy and a lot of neutrals dash, chewy. >> how about the sell. sell on airbnb >> i thought that was astounding. >> i read it, though, and they

really did everything they could not to sort of say sell, except saying it in the recommendation. >> there's like 22 words about it. >> here's the one thing i could find about the downgrade or the sell, which is we believe airbnb's current valuation bookings roughly 50% above our smazs by 2026. there it is. 170 billion. that leaves little margin of safety if growth deviates from the current trend. >> they had to have some sell. twitter i thought was interesting, every time you sell some new thing comes up. >> dell, they love dell. >> they love dell. >> dell's cheap. >> the vm ware split is coming very soon. we calculate stand alone dell because that's what we got to do now is implying a multiple of about six times their next 12 months unlevered free cash flow, estimate of 7.6 billion, and so assuming no vmw holding discount, this appears to trade

between 8 and 16 times, next 12 months free cash flow. >> oracle's inexpensive. these are just these kind of old tech that are doing so well that it's extraordinary >> airbnb, david, that was really shocking. i always think that that was -- that's the future. >> it is, and they still say it will be. they actually say yes to a lot of the key considerations for its future they just seem to have trouble in terms of whether or not to the point we're making that the market is going to grow quickly as many forecasts. >> some people say it was fatuous. fatuous. you haven't used that word in a while. >> jim's got a good library of chai mer cal that he likes >> chi mer cal i use almost every day.

>> but you've stopped fatuous. >> a lot of it is my nephew does my writing with me right now he's using hammered a lot. there you are. hammered got to stay close. >> we did get -- in terms of calls, mgm also, bernstein goes to outperform, even as we see some reports of spikes in covid in southeast asia. >> that is entirely right now how much covid there is because that would also be very bad for win. it's been a terrible performer because of the cal, the cal david doesn't have it like it used to. >> you mentioned walmart it is flat on the year. >> it's been a terrible disappointment. >> it has been a terrible disappointment. >> you look at a costco. >> amazon is up not even 7% for the year >> the employers you see in the

united states of america, walmart and amazon, both have not performed particularly well in the stock market. >> walmart has got -- walmart plus is not getting what people thought. target shipped is incredibly good i don't know how off you use shipt. it's astounding. let's say i've forgotten my belt one day, i ordered shipt at 11:00, came at 2:00. i didn't want to do the show without a belt. >> you couldn't send somebody to a store? that didn't occur to you >> no. >> i'm not going to a store if there's a shipt. that's just a p in there >> coinbase, we'll get gensler in front of the house tomorrow. >> they'll school him with that additional money gensler, he runs the s.e.c. >> yes, he does. yes, he does >> you attack him, you're attacking the commission smart, did they think it is -- i

used it last time and no one listened the nevada gaming commission or it's the s.e.c >> you wouldn't. since you've been critical of their choice to criticize mr. gensler, the stock is down >> yeah, that's all me >> that is all you >> that's what my wife says. she says jim, you have this view of yourself. >> i was doing river dancing at 2:00 a.m. on friday. you were just an embarrassment i put that on tiktok, your career's finished. >> river dapsncing. >> 2:00 a.m. river dancing. >> wow your hips hold up with that? >> not a problem >> more than a quarterback of the washington. >> we don't get invited to those parties. >> we don't get invited to the river dance parties. >> it was an amazing river dance. best i've ever done. >> really? >> i've been in the abby tavern. >> release the video. >> my daughter said if it did that not only would my career wbe over but my life would be over >> i want to see it.

>> i'll send it to you during the break. >> 3m, trfor example, is in the green. let's get to bob pisani. >> the 3m's up over 1%, cost pressures, margin pressures floating around out there. other sectors doing well including energy seven-year high, companies like cabot oil doing really well, banks, techs holding in there, health carement your two main growth sectors tech and health care holding in there. retailers are weak they've been weak for a while. of course we had the market headwinds today, the main concern of course is cost pressures. 3m now joining ppg, sherwin williams, even pulte from last week talking about higher labor and material costs we do have some negative seasonal trends, of course in september and october. some concerns about slower economic growth due to the variant. remember, we have a big ipo season coming up

there's going to be a lot of new supply warby parker will probably be next week, not entirely clear, but it's going to be a really big season if the market continues to hold up, and that will be some supply issues overall. you heard about 3m, cfo talking at a morgan stanley conference, talking about inflation being higher than they thought in the third quarter. a whole list of everything that they have in terms of their material costs resins ethylene, wood pulp, labor costs continuing to be higher than they thought autos being lower due to semiconductor shortage consumer electronics and televisions also affected by the chip shortage. this is the cfo talking about how their business is doing, and of course they've got other things they're a huge office supply company. remember that. this is why 3m is such a great company. they're talking about delay in the return to office affecting their office supply. independent of material shortage i think the key story here and

maybe why 3m is up today, the reopening trade topped out a long time ago. it topped out in may actually, and it's been slightly sideways to down mostly for the big names since then so the airlines are all 30% off of their highs fedex is 20%, so is a lot of the logistics companies. caterpillar 17%, 3m is 13% so the point is the market already anticipated some slowing. maybe the inflation concerns are a little bit more severe than expected, but the market's already ahead of this. same with the materials group. all of them topped out in may, freeport, mac moran, a lot of the steel companies, dupont, mosaic all these companies generally. so what you want to watch here is the ones that matter, which is of course the health care, the technology communication services companies those are the growth areas and if you look at the sectors here, you see the market

materials, industrials, which is the cyclical group here, and the reopening trade tied to the reopening trade, all in the week they're the most off of their 52 highs. the s&p is less than 2% off its 52-week high health care, technology, and communication services they're a little better. this is just as we were going into the open. so tech is doing a little bit better than that the key here, carl, it's the cyclical groups that have already anticipated this slowdown the market's already there one reason 3m is essentially on the upside back to you. >> as we go to break, time for the bond report. let's take a look at how treasuries are faring this morning. got the ten-year right around 132 or so. dow up about 200 as we are coming off the worst week since june and trying to recover from a two-month low. we're back in a moment

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morning after five, six tough days for the markets we are getting a little bit of a weakness creeping in on tech as the nasdaq goes briefly negative for the most part, energy is helping drive gains. dow's up a 275 "stop trading" with jim coming up next. you sure you want to leave that all behind? yeah. stay restless with the rx. crafted by lexus. experience amazing at your lexus dealer.

jim and "stop trading." >> talking about digital china and what the government's doing there. obviously, problems with ant there is a piece this morning by luke capital downgrading tencent music. it's throwing in the towel way too late, but at the same time the notion of investability in china keeps coming up because of, again, it's data does the government know everything and if it doesn't will they wreck your company and i think that even with, by the way, with ant, they are talking about how you get credit and how you don't and what criteria people use. so we are not done with the chinese government cracking down we're just not it's too early to buy china. >> we had a blackstone lodging deal come apart. and then, yeah, the ongoing discussions. there was a tweet from one of their officials about how the

u.s. should not even speak to taiwan. >> yeah. that's going to be difficult to do but i understand that. i mean, the government wants to end really basically end the big tech monopoly, is what the "financial times" says and that's just the -- you can't break up the tech opoly without confiscating your data and deciding whether it's right or wrong. they would be saying, listen, we don't want you to make a lot of money. obviously, video games in play, something the government doesn't like the government doesn't want you to be stupid. >> they stopped the ipo and now they are focusing it would appear based on reporting on the business testify sand and potentially forcing the split and separate entities of soil kind >> we want you to give credit to the people who you have been denying credit change the algorithm

what do you think of that? >> it's a podcast, dave. you have to say something. >> oh, that would be very interesting, jim or perhaps it would be - >> no. it's a miracle. >> what's tonight on "mad" >> barrett gold, litecoin versus gold i would rather go with gold. and cloudflare does a lot of government work and casino work. we will spend a lot of time talking about how the casinos are able to go online without trepidation. could be a - >> long week ahead, jim. see you tonight. "mad money" 6:00 p.m. eastern time with the dow up 270 don't go anywhere.

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♪ good monday morning. another hour of "squawk on the street." i'm carl quintanilla with morgan brennan and david david live at post 9 in of the new york stock exchange starting out with gains after six days down for the -- five for the dow and s&p. september holding up to its reputation on pace for the worst

month since last october. >> we are 30 minutes into the trading session. here are the three big movers we are watching virgin galactic sliding, delaying the first commercial research space mission for the italian air force after a third party supplier warned ever a potential defect on top of the ongoing faa investigation. we will have more on space tourism later this hour. you can see the shares down 5% now. plus, alibaba getting hammered on a report that the china wants to break up ali pay. shares down 2.5% and 3m with the company's cfo saying inflation is higher than we even thought in q3. the latest company within the industrial sector to come out with cautious commentary. >> thank you, morgan less than 18 months after the economy and the stock market bottomed, the markets and the economy have already moved into mid-cycle mode more quickly than expected

mike santoli has a look at what that may mean for market returns looking ahead. >> yeah, carl, right from the beginning march 2020 this was a spring loaded sped up cycle. the market appreciation in the s&p 500 has been extraordinary relative to almost any prior crash or bear market in terms of where we've come from the pre-crash peak up more than 30% in less than a year and a half even if there had been no pandemic, no flash recession that would be extraordinary. what we have at the moment is labor markets acting a little more tight than we expected at this point obviously, pandemic relayed. we are also on alert for policy stimulus being withdrawn either whether that's, you know, on the fiscal side, not going to have as big of a abpush next year th last, and the fed tapering what does that mean? we have seen the market starting to acclimate to this idea, maybe maneuver in a direction away from the fastest moving parts of the market look at the quality of sector of the s&p 500. this would be the big stable

companies relative to the rugged two 2000 this is a two-year look. this summer quality overtakes smaller cap, higher beta, much more leverage to the economy, a i little more of a risk play that seems to be the moment we have been this for a couple of months near term even though we have elevated valuations they have not gotten more elevated this year because earnings have been so good. even though investors have high exposures to equities relative to a year and a half past that crash, i think that tactically the market has already discounted a lot of this slowdown story and that's what we're dealing with right now we had the summer kind of retrenchment in the cyclical areas and investor expectations because everyone is calling for some kind of a decent pullback right here. >> a holistic approach to the markets as well, mike. what are things like the vix telling us and the credit markets and some of the other things that you watch so closely? >> yeah, it's a little bit of a mixed picture. the volatility, first of all,

the actual volatility of the market has gotten to pretty low levels in other words, day-to-day moves really got compressed. it sort of put people on alert for why september could be jumpier. in terms of credit, that's still the strongest support for the market high yield spreads have remained relatively stable. but it's not necessarily showing there is really a risk of back sliding in the economy it's just about the cadence of it a final point. when we have less growth in year than anticipated and yet you still have strong personal income and savings and things like that, that becomes next year's growth whether it's delayed car production or spending on travel it probably is going to get into the economy. so we go into a longer recovery mode, at least the mind set, rather than a super strong one right from the gate. >> interesting b of a this morning had some interesting qualitative commentary they said the bears might have fell get like they won last week but the bulls like a dovish

taper, controlled delta, booster headlines going into september and october and potential rotations out of em back to the u.s. i wonder how much of that can bulls hang their hat on? >> plenty of it. they have the benefit of the doubt here because you still manage to have that rotation protecting the indexes at the same time, as i said, the cyclical stuff got more discounted and when credit markets are acting this way usually means you don't get big and lasting downturns. so all those things i think makes a lot of sense, especially people reinforced with the view that we are past peak on the summer covid surge for most of the states >> thank you mike santoli, of course, get deeper into the volatile month of september the latest on that battle between the rail companies, two of them based in canada, but the object much their desire has been kansas city southern. had a deal with the canadian pacific. that deal was then topped by a

new deal from canadian national, which it accepted, and then the std said to canadian national, no, the idea that you can actually institute a voting trust, insulate kansas city southern shareholders from the antitrust risk of the deal, we are not going to let you do it 5-0, in fact it was a real slam dunk against or maybe, i should say, a block. a real block of the slam dunk by the sdb. that has put us in the situation we are in now. over the weekend the board of kansas city southern after speaking with canadian pacific said, you know what? your deal is better. it's safer for us. you have a voting trust. we can guarantee our shareholders once we get our shareholders to approval and your shareholders to approval we will get the money even if we don't get the deal past everybody. we have determined it's superior we will give cn five days to figure something out if they want to. if they don't, we will sign you up by the way, cn will make

$700 million they get their 700 million they paid back and an additional 700 million. but we're waiting to see what they will say, morgan. expectations based on the number of conversations i have had and given what we know at this point about their ability to really do something that will sway the kansas city southern board are that they will go away that they don't have a lot of room here to really figure something out. they will take the $700 million and, you know, perhaps live to fight another day, although is an asset that they, obviously, coveted. >> the breakup piece is eye-popping. seven 700 million plus the other 700 million, that 1.4 pillian folded into the latest tranche of negotiations taking place. i think at least the market consensus is that canadian national will now walk away from that deal and that will enable canadian pacific, that original suitor, to finally be able to

essentially through that voting trust acquire kansas city southern which is why you are seeing shares perhaps of both of those companies trading up more than 1% canadian national is fractionally higher today. tci fund management has taken a activist approach. the largest. it's in favor of cp acquiring ksu. it is not in favor and has been vocal about that in recent days and weeks about canadian national moving forward with that deal and has called for the ouster of the ceo. i think it's looking to nominate potentially at least five new directors to the board wants to see jim vena, who is most recently at union pacific as the coo, but before that was at canadian national, one of those hunter harrison precision scheduled railroading mentee they would like to see him as coo. you have an investment thesis taking shape around cp and

kansas city southern coming together to create this first canada to mexico railroad which would still be the smallest of the major railroads here in north america, but also potentially an investor thesis around canadian national now that there is an expectation that bends this deal and will focus more on things like it's operating ratio and getting costs down. >> right again, canadian national really in a way fighting a two-front war with the activist investor, not to mention, of course, what it would need to potentially do to really lift the -- break free at the board level, okay, it's worth the risk of getting this thing approved without getting your money, obviously, as you will via the cp deal in the voting trust. >> the deal is -- you could say the deal is switching tracks a little train humor there that being said, this is taking place in the backdrop of what is a tight freight market as well we have talked about it every

single day the supply chain gridlock. the impact of things like ships record numbers of ships off the coast of california right now as well all of that is actually impacting inter modal freight numbers for the railroads, too expect to see that start to take shape in the next round of earnings, as well. so it's one nor piece of the puzzle and why perhaps you are seeing such a strong hardy fight for this particular railroad, kansas city southern. let's move on now. leslie picker sitting down with the new ceo of apollo. mark rowan is his name a cnbc exclusive we will listen in. >> hi, everyone. welcome to our inaugural delivering alpha live stream we are entering a new era of tune we have been bringing out best and brightest investors in the world. today certainly no different today i'm joined by apollo global management co-founder and

ceo mark rowan apollo is one of the world's largest alternative investment managers with approximately $472 billion under management. mark, welcome. thank you so much for being here so it's been about six months officially on the job, perhaps unofficially a bit longer. you have done some blockbuster deals. you have made high-profile investments. the best quarter for distributable earnings going back, i think, eight years under your tenure, and yet apollo's share price continues to underperform its peers by significant amounts. and many analysts are attributing to what happened with lean black last year and it's created this overhang on the stock. how do you move past that as ceo? >> first, good morning thank you for having me on on this incredible day outdoors in new york look, i wouldn't be a ceo if i didn't think my stock price was undervalued. for us i think the noise is largely behind us.

this is now up to us to execute. while our stock has gone from the 40s to the 60s, we have a long way to go and we have a story that we are anxious to tell. we have scheduled an investor day for october 19th where we will really roll out the details of what we plan to do, but the reality is we are in an amazing business we and our peers are in an amazing business our business gets better every day. we have chosen a slightly different path our path includes way more credit and to serve the market we've picked you need differ investors, a different capital source and slightly different model. i look forward to explaining all of that. i would play our hand in this industry than anyone else's. >> going back to moving beyond the overhang and some of the noise in recent years, one of the big reasons why analysts and investors were concerned is because lp starting pausing

commitments and waiting out to see if the noise and if the clouds go away have you seen that take shape? are you back to, say, where you were in 2019 with lps, back to 2018 where you were with lps >> we have raised approximately $20 million a year for every year that we have not raised a flagship fund. this year will be no exception we will raise 20 million from institutional sources. i think it object secures a little bit picture. if you look apollo and athene together, we will raise close to $55 billion of organic-inflows in year in addition to inorganically. virtually no one has that kind of machine so, yes, last year lps had us on pause. this year the engine had to start up again that engine is starting up again. next year we will raise our tenth flagship fund, apollo fund ten, and we look forward to it. >> is the idea kind of maybe certain lps who sat out are being supplanted by other lps to

who are more willing to put capital work to with you all >> i never say everyone, but the vast, vast madge this is in the rearview mirror this is my 36th year in the business jim and scott, not quite as long, but getting very close the reality is that we have performed for investors in ways that few firms have performed. we have to find our business as one of excess return and we've delivered on that promise. the most recent fund, fund nine, roughly 25 billion, was marked up about irr-wise 49% gross, high 20s net truly extraordinary performance. i think investors will be back. >> can you explain how everything materialized that you would be ceo i ask because you were on sabbatical and then all of a sudden there were headlines and independent investigation and now you are ceo. i think it was as business

insider -- a recent business insider profile viebd it, you were tasked with lifting a firm out of a crisis. did you want this job? what are you -- what are you -- what are you doing here? >> i rarely get my news from business insider we will start there. this an amazing job. think about what's going on in our industry we have a unique macroeconomic backdrop we have a business, literally, that gets better every day, whether it's demographics, whether it's low rates, whether it's generational transfer of wealth the momentum is there in the business then you have this inter play of technology coming into alternatives and really resthapg the financial landscape. so anyone who is not excited about what is happening is just missing the bigger picture now let me go back first i was on semi sabbatical, not on sabbatical. the reality is the first half of 2020 was unbelievable. in that period of time, we built

our insurance franchise by $88 billion. and i worked round clock like an associate. and so at june 30 in the middle of the pandemic decided to take a few months off and step back when leon stepped down and when problems became clear in the fall, we went through generational transition. and it's something i have been very focused on as an industry our industry was all founded the same way as private equity partnerships most of the founders are in their mid-to-late 70s, and believe it or not, everyone is going to go through generational transition we've just done it first it's not just leadership it's governance. it's an articulation of strategy and acceptance that this is a permanent business moving forward. we have just done it, as i jokingly said, more noisily than others probably will make no mistake. this generational shift is coming to every firm in our industry. >> speaking of a generational

shift -- >> that's mark rowan in -- well, not typically seen, of course. the ceo of apollo talking about the fact that he took over from leon black, the generational change there there were a number of other things associated with that as leslie picker's interview continues for our delivering alpha conference also mentioning that they are, in many ways, an insurance company. certainly focused on that at apollo very interesting to hear from mr. rowan. that interview continuing for our delivering alpha conference. wanted to come back to a story we mentioned in the last hour of "squawk on the street. an announcement apparently from walmart involving litecoin a press release seemed to be quite official and was shared by many different news services it does not appear to be true. unclear at this point exactly what was behind it and we are still trying to get walmart on the phone it

specifically tell us what may have happened here but, carl, you were the first person to bring up the fact it was not on walmart's corporate website and it does appear, according to some others as well, this may be a fake perhaps designed to try to get litecoin's stock price, not stock price, price higher. and cawe did question the premi for it when we were read from it. >> certainly when we didn't see it pop up on the corporate website, that began to raise some eyebrows. n news services and the wires followed what looked like a official release and even included history about whether walmart used blockchain aggressively in the early days to manage its supply but we will see. but another tough lesson for financial media in general. >> yeah. i am actually very curious to know how this was perpetrated if, in fact, it is proven to be a fake, which appears to be at this point likely.

we are waiting to hear from walmart. takes me back to many years ago to press releases typically more often about a takeover or something of that nature that can get out there, and move the stock or bloomberg, i remember once, i think it was fake story. this is many years ago but these things are not -- they are uncommon, but they certainly occur, although i think perhaps the first time with a cryptocurrency in this way. >> yeah, financial ramifications. this might be a story for which the entire arc is taking place over the course of minutes or even an hour look at the stock chart there. litecoin spiked 20% and it is now negative as we have this conversation on the desk, down 1% now we will continue to, i guess, effort those comments and confirmation one way or the other from walmart. >> walmart has confirmed now that it is fake. our assignment desk has been getting it them on the phone we can confirm this is fake. we should also mention litecoin has deleted a tweet that wason

its -- that it shared, apparently, announcing this partnership. so unclear exactly where or how this was perpetrated, was something breached in some way to get a news release out there that did look at least in all of the ways typical of those who judged them credible and then was shared widely. >> somewhat surprising definitely a story here. walmart shares up a bit. although i guess, carl, it goes back to the initial reaction that we had -- >> what did our gut say? >> why what does that make any sense then i read the infomercial from litecoin who knows? >> well, we'll watch that. hopefully, get some official commentary out of walmart. but usually when something is wrong, the company speaks, and that hadn't come for a time. so we were scratching our heads. but no longer. >> all right as we head to a quick break, a look at our roadmap for the rest

of the hour. stocks rallying to start the week the dow and s&p positive for the first time in six days. >> the tax proposal from house democrats could hit high earners harder we will give you the details. >> and epic games appealing that friday court ruling that said apple was not running an illegal lonoly a t more "squawk on the street" continues. dow's up 250 the pursuit is on. the pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility. join the pursuit of outperformance at pgim. the investment management business of prudential.

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a massive influx of employers coming into the state of texas because not only do they like the business environment, but morgan, you need to understand there is a lot of businesses and a lot of americans who like the social positions that the state of texas is taking. >> that was texas governor greg abbott abbott speaking to me september 2 2nd discussing attracting employees and employers after a controversial abortion law went into effect. salesforce ceo sane ohana, if you want to move, we'll help you exit texas your choice. other companies taking action, uber and lyft, saying they would cover legal fees and bumble saying it started to fund -- a fund to help those seeking abortions in the state match group also doing the same thing. and, guys, i mean, we have talked about it for, what, over

a year, year and a half, you know, some of the social or, i guess, policy stances or decisions that some states have made whether it is in this particular case this heartbeat law in texas or some of the reforms or changes to voting rules in certain states. bans on mask mandates in certain states things along those lines. >> it's all texas. all three are texas hits them all, right >> that's what this conversation was about. he joined me to talk about autonomous vehicles and some of the work that's going on if texas around that, but certainly the conversation became much broader and we discussed some of these policies and the fact that how businesses are responding to them given the fact we have seen many in corporate america for better or worse come out and be very vocal in certain ways on certain topics in certain states over the past year plus where their employees are concerned. >> definitely corporate

willingness to way in. last year with diversity and black lives matter, widespread quotas and initiatives being put in by corporate america and business lobbying groups maybe reproductive rights less than that. david, you created a franchise of the ceo who has to navigate these thornier issues. >> it's interesting how the decision is made in terms of what a corporation will choose to engage or when they will choose to engage and when they won't. a lot is based on what they are hearing and believe they are hearing from their employee base and oftentimes they can be pushed to action perhaps when they get a sense that their employees are particularly angry or invested in something but it's a delicate balance, very much so, and certainly we have seen ceos who perhaps have done something that they regret because it brought them a great deal of grief overall and threatens other parts of their business. >> historically, for the most part, you can point to the

examples where this wasn't the case, for the most part i think businesses have tended to be apolitical to your point, the fact that employees or at least some employees are -- have become very vocal recently, and also you have this investor esg focus, too, that i think also -- and i realize there is lots of questions around this a and guidelines around that that also adds pressure as well. certainly mean in the c-suite looking to navigate policies maybe otherwise they wroouldn't have in the past. some of the top gainers driven by energy and materials it's big tech, mega cap tech and biotech lagging today. got the vix up 20. that's going to be interesting to watch we'll be right back. dow's up 220

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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. ♪ welcome back here is your cnbc news update at this hour. the city of corpus christi is preparing for tropical storm nicholas the nun says that the storm is moving erratically off the northeastern coast of mexico it's expected to produce flash flooding and dangerous storm surges on the southern texas coast. residents of grizzly flats

have returned to find their town devastated by the caldor fire. president biden has designated it as a major disaster clearing the way for federal assistance he will visit california later today to tour damaged areas. there is no evidence that covid vaccine boosters are needed that's according to comments from a group of top u.s. and international scientists and fda advisory group meets friday to look at data with the biden administration planning to provide the shots. and the nfl has its first black female referee maya shaka was the line judge as the new york jets played the carolina panthers. she says it is an honor and privilege to represent women and women of color in the most popular sport in america love to see it carl, back to you. >> that is awesome thank you, rahel. epic games appealing friday's ruling calling for a higher court to re-examine that antitrust case against apple the ceo tweeted epic is fighting for fair competition among

in-app payment methods and app stores for a billion consumers joining us, co-founder, great to get you back on the air, roger good to see you. >> good see see you, carl. >> you have been pressing apple to offer more concessions if they want to keep control of the platform overall what was your reaction to the ruling friday? >> i think the ruling came down pretty much as i would have expected which is to say that apple has market power and the judge said it is using that market power inappropriately they ar there are not a lot of tools at the federal level. in california they have a specific law that gave the judge the ability to say that apple's anti-steering and mobile payments requirements have no redeeming benefits and, therefore, need to change. and that is only one piece of what epic was arguing for. but it's actually really important to the business model of the app store i think apple has a huge advantage over facebook and google it's not destroying democracy.

it's not hurting public health and i just think that the company has an opportunity to negotiate with both legislators and regulators to protect its core business because in europe in particular they are quite determined to force apple to allow alternative app stores, which apple i think legitimately argues would be a disaster for privacy and security and so i'm arguing that apple should, in fact, work with regulators and find a settlement that gives both sides what they want. >> a disaster for privacy and security would it be a disaster for eps growth because a lot of the street believes that the headline risk that we have been dealing with lately has been in the words of morgan stanley, for example, fairly negligible. >> here's how it works right now apple uses the app store to enforce rules that protect the privacy of consumers and the security of consumers. and i think its brand as a

vendor, the thing that really distipping wishes its products from android is privacy and security if alternative app stores, where apple cannot control the products, people put the same kind of malware, same kind o issues into the marketplace that you see rampant in the android marketplace, apple's di differentiation goes away and i think the business gets cratered not immediately, but over time so i think that this a giant issue. and apple has a benefit. consumers who use iphones love the privacy. they love the security so there is a huge political support for a negotiation. and the regulators know that the challenge is that antitrust law is currently constructed only gives regulators a blunt instrument they can force alternative app stores and in europe that's what they're going to do. so my argument is apple, sit down and negotiate with the u.s. regulators, cut a deal where you

get rid of side loading, which is the alternative app stores, in exchange for cuts in the fees on the app store and some of the other rules of the app store then both sides get what they want, and apple then becomes an ally of antitrust regulators and buys itself essentially a get out of jail free card for the future and i think that's really going to matter. and i think it will give apple a monstrous win. as an investor you very much want them to negotiate because the alternative is much, much worse. >> roger the fact that you have penned this open letter to tim cook, haveyou actually spoken to anybody at the company yet? >> i have spoken to people at the company. i have not spoken to tim cook. the open letter is sent with love i am a huge fan of apple and i think they are in this position because tech companies have faced no regulatory pushback for so long that they are used to being essentially like governments they set their own rules and

enforce them and don't care what anybody else thinks. that is changing in antitrust. apple, unfortunately, it's not as bad as google and facebook, but, unfortunately, fixing apple's problems is easier it's tempting for regulators to go after them first. and at the case with epic, the apple executives testified in a way that really made the judge angry and harmed their position. and so to my way of thinking, this is the sort of thing where reasonable people get together and negotiates yeah, there is a hit to earnings in the short run, but relative to what is going to happen to google and facebook, i think apple will come out of this smelling like a rose and it will be a fantastic thing for investors. >> roger, it's david to that point, we have a white house and we have an ftc and a doj that does view big perhaps as bad, or at least closer to bad than previous antitrust regulators have.

so what does it get out of jail free card for apple that you referred to look like in that environment? >> well, i think the core thing from apple's fipoint of view, i they are allowed to maintain a monopoly in the app store, that is a get out of jail free card will it be as to profitable? i expect not will they be able to impose the same restrictions relative to payments on their app vendors? no so they are giving something up. in exchange for that, if they align with regulators, and i'm actually arguing for them becoming a partner to david cicilline at the house antitrust subcommittee and the senate to get new legislation passed, they do that, then apple will come out the same way that intel came out of the microsoft case in is the 1994 throw yourself on the mercy of the court. resolve nur issues that the court goes, you know what? we don't care about you anymore.

help us go after the really bad guys and we will be saturday apple is in an d a good positio to go after facebook and especially google. >> finally, as for the developer community, roger, there was discussion friday about relying on consumers' laziness, will they go through the trouble of steering and that that dynamic in the end favors large developers because consumers, arguably, are only going to want to go elsewhere to pay for apps that they truly love. >> to be clear, i don't think this is just, carl, about where they pick. i think one the issues is that there are a lot of bad actors out there and how do you prevent bad actors from coming in and infecting your ecosystem and by bringing malware in and things like that and so right now everybody's just focused on the economics. i think apple is super focused on the privacy parts of this think about how clear view stole billions of images from facebook it's that kind of stuff that people are worried about

they are worried about security. but with malware and things like that and i think those are absolutely legit. concerns and you only need a very small number of failures produce a really bad impact in the eke system from apple's point of view, defending securities absolutely paramount. so what if they give up a few points of march. margin. they are going to be able to gain unit share in phones relative to android if they do it properly. >> that certainly is going to be the story tomorrow as we await some of these product introductions. roger, great insight great to see you, thank you. >> thank you. heading to break, disney announcing they will show the replainer of the 2021 movie slate exclusively in theaters rather than making the films simultaneously available on disney plus. as you can see, shares of disney

are up about two-thirds of 1%. also giving a boost to amc, imax, cinemark, all trading markedly higher, and still around 30% from the recent highs. just put that in a little bit of context. quk t see wl be right back challenging traditionl assumptions like never before. there is a new, accelerated sense of responsibility, sustainability, and social equity. at nasdaq, we call it the "era of impact." and we're at the forefront of it. innovating technology, data, and insights to help you deploy an esg strategy to be seen as the company you aspire to be. 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. your shipping manager left to “find themself.”

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hospital which half came from iowa i saac man i will be heading down there today. liftoff is currently set to happen at 8:02 p.m. eastern wednesday night. guys, this is a crew of four all private citizens when they liftoff atop that falcon 9 rocket inside the autonomous dragon capsule it will be a three-day mission. they will be doing experiments an altitude higher than the international space station, traveling at 17,000 miles an hour and splashing down three days later in the atlantic ocean. a major milestone for space tourism and orbital flight, which is different than virgin galactic and blue origin. >> fully autonomous. >> yes they are not paying for it right? civilians? who are they >> isaacman is paying for it the sum is currently undisclosed. but i would suspect based on some of the other numbers for other upcoming missions aboard

dragon capsules that you are probably talking tens of millions of dollars. >> right okay. >> so they will get to be called astronauts absolutely. >> remember that controversy over whether bezos could be considered a astronaut >> and the faa changing the rules on the day that bezos went to suborbital space. >> yes this will be the all-civilian mission to orbit again, history-making mission. the first of a slate that is is scheduled for spacex. >> journalists are next. >> she is going. >> dude. >> it's gonna happen. >> no doubt. >> i mean, like -- >> it will be your all-type live shot you in space maybe outside. would you do a spacewalk >> i mean, yes. >> okay. >> by the way, this whole thing came together in six months, which is incredible in of itself astronauts train for years. >> of course amazing. can't wait tomorrow will be crazy, too,

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goldman sachs has programmed 10,000 small businesses invested $750 million to help create jobs and potentially some economic growth today they are launching the goldman sachs 10,000 small business fellows program that will create paid internship opportunities for historically underrepresented community college students joining us is goldman sachs foundation president and global head of corporate engagement, nice to have you why are you doing this >> you know, it's so great to be with you this morning. the reason that goldman sachs is doing this is because we really saw an important opportunity we were hearing small businesses, we have worked with 12,000 of them over the last decade, and they were saying, i have help wanted signs on my door on the flip side, we were talking to community college students and they were saying, i don't know what doors to knock on so goldman sachs has decided today to step into this space by providing paid incertain ships for community college students to work in small businesses. we are really giving them a

front row seat as to what it's like to be an entrepreneur in this country. >> how are you doing it? are you identifying the businesses ahead of time and/or the students you know, how are you guys involved in terms of making this and executing, i guess, on this goal >> absolutely. so we've worked with this 12,00l businesses over the last decade, representing all 50 states, so we have gone to that pool of 10,000 small business graduates, we're launching in four cities in new york, baltimore, dallas and cleveland and we're also working with the community college presidents in those cities, identifying students to take advantage of these opportunities. we were finding that community college students really are hungry and they're not looking for only for a job, they want a career pathway to really meaningful opportunity and small businesses were looking for that talent. >> of course, goldman is no stranger to helping students of all kinds find their career path i wonder, though, if it ever

happened in a labor market quite like this one that is so strong, and i mean are your targets, expectations for the program different this time? >> you know, it is a new program, and so you're absolutely right this is a labor market like no other. when you talk to small businesses, they say, look, i had to pivot more than a soccer team at the world cup in the last 18 months in order to maintain and grow my business. and as we're talking to community college students, they're saying, i want paid internships and i want meaningful opportunity and this is really a labor market like no other they're really looking for those career launching opportunities and i think all of us can probably harken back to that first internship that kind of set us on our way and that's what goldman sachs is about creating through our 10,000 small businesses fellows program. >> so how will you measure success? >> you know, our big vision that i like to think big is sort of a number of things one is one measure is community college students who get jobs working in these small

businesses we have already heard from a number of community college students that they may want to start their own business, that is certainly another measure of success. but ultimately what we think is once they are in the business, they see the business, they witness the passion of small business of our entrepreneurs that they'll either get jobs there or go on to entrepreneurship paths of their own, or perhaps to continue their own education. >> all right, asahi, promise, these will be in person, no remote internships i don't think those work very well. >> the vast majority will in fact be in person, working on it, operations, one of them is a terrific student, her name is catherine, working with one of our business owners in dallas, caesar reyna, who runs trading and consulting he needs help with his website that's not going to help virtually. it is going to be in person. so many opportunities as possible in person >> yeah, hope so hope so. thank you and good luck to you appreciate it. >> thank you so very much.

got session highs here on the dow. let's get a sector sort with dominic chu. >> what we have now are stocks trying to snap that losing streak now, mix this morning with the dow and the s&p trading higher while the nasdaq lags behind from a sector perspective, energy is a clear outperformer, up about roughly 3% on the session so far today within that sector, you got names like marathon oil, apa corp., occidental petroleum. all those gains come alongside a move higher in prices with some production off line following hurricane ida several weeks ago. not to mention the looming threat of tropical storm nicholas coming up so watch those oil prices. there's more "squawk on the street." stay with us right after this break.

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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 the latest tax proposal from house democrats could mean more pay for high income earners. robert frank has that story for us robert >> reporter: good morning, morgan the tax plan from the house democrats adds a 3% surtax to earners making more than $5 million. combine that with other tax

changes, it could create a marginal tax rate of over 61% in new york city. and just under 60% in california so here's the breakdown. like biden's plans, the house wants a top income tax rate of 39.6%, up from the current 37% the income threshold would also be lowered to $400,000 for individuals, and couples making $450,000 now, high earners also currently pay a 3.8% net investment income tax. add the new 3% surcharge, and high earners could end up paying a top federal tax rate of 46.4%. in new york city, top earners would face a combined tax rate of 61.2% that is believed to be the highest combined rate for new yorkers since the 1980s. in california, they would pay a combined rate of 59.7% and in new jersey, 57.2% now, wealthy asset owners are

taking some comfort in the plans for capital gains. biden had wanted a capital gains rate of 43.4%. the house proposing 28.8%. and the house plan does not include biden's plan to eliminate the stepup in basis. that would have taxed appreciated assets at death. no word yet, guys, on what the house wants to do with salt. but you heard josh gotheimer and others saying no salt, no dice we're likely to see that in later plans. >> you anticipated my question, which you often will do, given the interest in that so 61%, you got to be a very high earner to be fair salt is so important to these high tax states in terms of at least eliminating the cap, robert any sense as to how likely that is does vehe have a real chance? >> this plan was the revenue raiser, so it is logical that salt repeal or relief would not

be in this particular ways and means plan and what we heard all along is there could be some higher rates -- income rates for those at the top offset by a repeal or relief for salt. so what would happen is overall you could see rates rise for the wealthy, but geographically they would be more diverse and more disperse rather than right now so much of it because of the salt cap comes from those high tax states >> all right, robert frank, thank you. we get a check on the markets here as we come into the final minute of the show the dow is at session highs right now. it is at 308 points or .9% the s&p is also higher today, 44.71 is the level there snapping for both of those averages, five days of losses, which were the longest consecutive stretch of down days since february, which sort of gives you a sense of what this market has looked like in recent weeks and the nasdaq ticking slightly lower >> yeah, i notice the banks are

having a pretty good morning led by wells fargo up over 2.5%. jpmorgan up also about 1.3%. so across the board some strength in the banks. and not to be homer, but our own parent company comcast shares are up too we got that going for us that's going to do it for us on "squawk on the street. "techcheck" starts now good monday morning. welcome to "techcheck. i'm carl keenquintanilla with jn fortt and julia boorstin goldman is out with the best internet ideas we'll break down the bull and bear calls later this hour and, jon