democrats passing a plan to raise taxes on corporations and the wealthy. plus, history lifts off. spacex launching the all civilian tcrew in orbit last night. it is thursday, september 16th, 2021 "squawk box" starts right now. good morning welcome to "squawk box." i'm becky quick along with joe kernen and andrew is off today a lot of things happening in the markets. let's check at the u.s. equity markets. yesterday was a big day. you saw the dow up 236 points. gain of almost 1% for the s&p. close to 9% for the nasdaq this morning, it looks like the dow futures are down 26 points nasdaq off by 38 s&p down by 5.5.

you want to look at treasury yields which is the most highly anticipated numbers. one of the most frequently looked at online 10-year is 1.31% also the squawk stack this morning. joe, ipos yesterday did incredibly well. if you were looking at dice therapeutics maybe not a huge surprise, but a big ipo debut. doubled in the ipo not just bio-tech companies. that's a hot space on holding, the sneaker company on yesterday up 46% dutch brothers, a couple of guys former dairy farmers turned coffee sellers up 40% hot day there. natural gas, big day, too. that was up 4% at one point up 5% if you were looking at natural gas, yesterday, it was 5% for 1 million btus

this is on fire. up over 100% over the last six months >> dairy farmers >> turned coffee sellers >> i get it. >> hot, hot, ot. >> i get it. dice therapeutics? immunology >> they make small molecule drugs. >> not a big fan of the name take this vaccine and you're really rolling the dice. oh, man. we'll see what happens we think it works. wow. dice therapeutics. give it a shot. >> i don't know who came up with the name the science is interesting >> let's roll the dice on this one. >> they have to change their name and symbol at this point. >> jerk? jerk is half a word.

you know what is interesting >> what is the other half of that word? not on >> our governor's going to be on >> governor phil murphy from new jersey will join us. we'll talk to him about covid and taxes. >> you know who is on been him >> a lot of people. >> robert frank. >> another day of tax set up >> the total taxes >> 57.3%, was it >> i don't need him then you remember >> i do. >> you see the ads from the other gentleman who is trying to think the republican who thinks he is running against. he is playing the governor saying, look, if taxes are your one priority, this is not the state for you. new jersey every single ad that this opponent has, he puts that ad in with murphy saying that. now it is not if you don't like

taxes, maybe new jersey is not for you. if you don't like taxes, united states is not the place for you sdpyou. >> you can move to new york where it is 61%. this is people making more than $5 million because of the 3% additional surcharge that the house ways and means committee puts in their plan sdp. >> above 150 here is something about taxes in the top stories possibility. yesterday, the house ways and means committee passes a sweeping plan to raise taxes on corporations and wetalthy in a bid to pay for the $3.5 trillion spending bill of the president here is the ways and means chairman richard neal. >> not to distribute wealth or curb innovation, but to broaden

opportunity. >> yesterday, the committee vote was along party lines. democrats still have to negotiate the package within their party with disagreements with the house and senate. >> big disagreements this will take time. i started reading through the senate version i'm sorry. the house version of it yesterday. this will take time to sort out. just for the democrats this is not sorting out between the two parties. this will take time for the democrats to sort out and figure out what they can pass on any of it >> narrow margins in both houses. in corporate -- maybe you stayed up late, joe. in corporate news, spacex making history last night inspiration 4 all-civilian crew lifted off after 8:00 p.m. from kennedy space center the team will circle the earth at orbital altitude which is

higher than the international space station. no american has been that far in space in more than a decade. the crew will return this saturday where they are expected to land in the atlantic ocean off the coast of florida we will talk to the early spacex investor lisa rich late for you, joe. we stayed up to watch. 8:00 >> late for you, too. >> i'm up every night at 8:00. >> i'm up at 8:00. i was up my wife said it is 8:33. you really ought to go to bed. you are not saying that so me, because, there is so great different -- we're contemporaries. >> the big issue is i have to stay 3:30 >> 3:00. >> 3:30 for me i am tired every morning i can't get the kids down to bed. i can't get set up for the next

day. i'm up until about 9:30. really late. >> that is late. that 9:30. i would definitely be a little bit less bushy tailed. >> grouchy >> remember that guy he was bushy eared. >> yes i know who you are talking about. >> you told him. get one of those things. >> i didn't tell him that. i'll move on before you name this person. in other news, general motors is advising chevy bolt owners to not park next to other vehicles to reduce the risk of fire spreading. the batteries can randomly catch fire that warning can keep me out of

the car. >> i wondered when you started the segment and said i'm sleepy. if you go 350 miles versus 60 miles in space, do you really know i would feel further away and more frightened and cl claust claustrophobic it is 22 times the speed of sound versus three times the speed of sound all of those things make it more daunting you probably wouldn't notice they are really out there. it is amazing it is a private. >> with no astronauts on board by the way, this crew was put together six months ago. six months of training it feels like it would be a long, long way away. based on the space flights we have seen recently, this is three and a half days. it is not seven minutes and you're back. >> no. it's real astronauts not astronauts

>> are you an astronaut once you are there in space they say there is no astronaut sdpastronaut. >> that is the discussion if branson gets to call himself an astronaut if you don't go above that line. it's okay with me. >> i don't think we can call these civilians. >> they are if they go that high they that's right they are they are astronauts right now. moderna releasing more data from the phase three study of the covid vaccine. the company says the findings support the push for wide use of booster shots because moderna found breakthrough cases of vaccinated people getting covid happened less often among the group of trial participants more recently inoculated. meantime, the fda staff declined to take a stance on pfizer's covid vaccine citing a lack of

verified data. i was reading and it didn't sound like -- it sounds like there is disagreement with the administration and fda and cdc on where they stand. then you read a lot of stuff from israel or uk or i was reading one this morning i don't know where it was. breakthrough cases some of the hospitalizations are breakthrough cases i read the entire number through the country. the reason you see more breakthrough case ass among vaccinated cases, many more people are vaccinated. any covid case will be breakthrough because the unvaccinated population are so small. there are people with underlining conditions or immune systems that is not up to snuff. the vaccine is only as good as your immune system that reacts to it. >> by the way, those people can get a booster shot

if you are somebody with a compromised immune system, you can get a booster shot i know people who already have i think this is a big issue. maybe not a huge surprise. i was still surprised the fda did not take a stance. many scientists from the fda who spoke out ahead of time saying they are not in favor of this. my question is and i hope to have meg tirrell on later to answer these things. is this because there is not enough verified data to go on or public policy is coming into play here? there is a question of whether we should be getting a third shot when there are developing countries who have not gotten a shot at all? how much is science or public policy >> different definition. i don't know wealthy country guilt or something. where do you put that into the mix? we all have a lot of guilt now

>> i guess i would like to know the pure science answer if you are thinking if you need a third shot or someone you love needs a third shot sdpl. >> if you are really going to b laid up, anecdotally, the third one, you feel worse in the next 24 hours from getting the second one. >> i know people who have gotten br breakthrough cases it is worse than feeling bad for 24 hours. >> i heard a case that someone saw the doctor and his antibodies were off the charts >> it would be nice if everybody had easy access to the antian antibodies test. >> and it would be great if everybody had great immune systems. it will never been perfect >> you are right the breakthrough cases are

because so many are vaccinated if you see the breakthrough case it leads to the question of what the cdc will decide and the pressure from the administration on this because there is pressure coming from the public on this. you know, a lot of questions >> i could get one next month. six months >> september 22nd is the next fed meeting. >> eight months. >> you are past the recommended. >> eight months. not six. >> some people say six >> i could do it now i don't know if i would. i feel like my immune system is pretty good. >> because you go to bed at 8:00 >> i do. i need to. >> i have to say mine is not great because i'm up until 9:30 or 10:00

>> you get fat if you don't sl sleep. >> thanks. you're tired and cranky and time fat. >> that's seven hours. >> there are nights i barely get five hours it hurts my immune system. when we come back, a bitcoin atm set on fire. we have the story on that next. first, as we head to break look at the biggest pre-market movers ea electron as.icrt top mover. you are watching "squawk box" and this is cnbc >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com.

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welcome back in our headlines this morning, protesters in el salvador burning a bitcoin kiosk in the nation's capital the video showing the fire amid the demonstrations against the president of the country of the adoption of bitcoin as legal tender and moves to consolidate power. the adoption has faced criticism over the rapid manner approved joe, this is not just a situation where they accepted this and say they take this, the government, president, pushing it hard. they have their own wallet and a

$30 sign-up bonus. the president tweeted this week that they have 500,000 people signed up. that is a big deal in a country of 6.6 million people. >> we tried to explain the protests the day they adopted it even the people interviewed said we don't have a problem with bitcoin, but the way it was handled and the power of the government and the president i'm not sure what to say >> there were problems with the wallet it kept crashing >> no word how many bitcoin were in the atm that were lost. wait a second. >> doesn't work that way >> that's the thing about bitcoin. there are no actual -- back to the broader markets. futures are lower. mimi duff and greg branch is with us.

greg, maybe we had a lot of the gains for 2021 maybe we have seen them already. mimi, you point out you like the recovery trade, but a strong performance in the first half and there are risk factors that could come to the floor in the second half. >> that's right. we're definitely putting up great numbers from the first half earnings have been extremely strong we are looking forward at some potential risks. one, we spoke about the variants in covid, especially with large pockets of unvaccinated people here and abroad. potential for close downs and slowing economy globally on that some other risks that we see is the potential for tech reform that we think could play out

over months, quarters, years it is something that we're keeping our eye on structurally we think inflation can run a little bit higher than in the past some of the factors that had been keeping inflation down, we think, are easing up for instance, central banks are allowing inflation to run a little hotter. the demographics have been keeping this at bay and this is a shift with more people leaving the work force and that sort of thing. finally, global tension. >> as a result of all these things you are not excited about tech you exited those positions you remain under weight in fixed position that was your background fixed income

you broadened it with equity you don't like it at this point. under weight stocks. when you keep everything, where does that leave syou? >> to be clear on equity, we see potential for future running it is not the time to be gang busters long with the valuations we are under weight on the equity side. we like overweight and other assets that can perform through inflationary periods industrial metals. infrastructure we like regional banks we think they benefit from the consolidation and also from higher yields if we see higher yields through the rest of the year. >> greg, do you agree with a lot of that? i know you thought the great earnings season we had would help maybe the headwinds from

tapering and other things could be overcome. you are not sure we will have that tailwind? >> i agree i'll take it a step further, joe. we are going to see a core cpi of 5% for september or october we are going to see an overall cpi of 6% or north of that that is going to cause a pull back not only for the normal reasons that i talk about with you every week about our supply changes broken and shipping issues elevated after harvey, we lost 500,000 autos. auto prices went up 3% and remained elevated for several months eyed ida will take away several hundred thousand cars. this is a tight market already we have a supply of used cars.

we came in at cpi below consensus because 1.5% retraction on used car prices. used car prices will soar with several hundred thousand buyers and no inventory add to that, the equal of the cpi combination, wrrisen by 30 basis points. accelerate as well i hoped the fed would drop the tapering plan in the second quarter. we have it to look forward to and a tapering plan. that is all the market will have to focus on amid the decreased expectation for the third quarter. >> can you update us on casino stocks, greg you like them on valuation and reopening and you are worried the one risks was covid.

now we have a new risk introduced given the news from china. >> structural story is still the same the one i talked about a year ago. we saw a run-up in april and may. we are back at or below the levels from a year ago, joe. this is a wait until covid is over story there is no long-term secular headwind results are playing out in vegas. you saw wynn's report, that was twice of april the quarterly beat evita it is already ahead of where 2019 is now. it is a wait and see story these are trading ten times on '22. this is a hold not a long-term hold

there's these are businesses to get to 3% shares and trading at ten times on 22. >> we have to go mimi, can you tell us a little bit about gen trust? >> sure. we are actually a minority-owned firm founded about ten years ago to fill a need for multifamily offices to manage assets for sophisticated clients by a group of former financial professionals. some of my former colleagues from barclays and goldman are there now. we manage close to $3.5 billion in assets. including our alternatives arm >> great all right. mimi duff, thank you greg branch, thank you

see you soon when we come back, lawmakers taking aim at how roth iras are used and abused. robert frank will have that next. and as we head to break, cisco out performed with the $7 price chart. the long-term targets are what they called conservative ayock up 1.25% st tuned you are watching "squawk box" and this is cnbc >> announcer: this cnbc program is sponsored by truist wealth. where meaningful relationships matter most. ective of thought ls offers investors a broader view. ♪♪ we see companies protecting the bottom line by putting people first. we see a bright future, still hungry for the ingenuity of those ready for the next challenge.

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lawmakers are now taking aim at how roth iras are used and ab abused robert frank joins us with more on how this could impact wealthy retirees robert, good morning >> reporter: you can call it the peter thiel rule measures from using roth iras to shelter wealth this comes from the article that details the thiel $5 billion roth ira the largest ever there are three proposed changes here first, it would limit ira accounts to $10 million. once the balance reaches $10 million, you can no longer make contributions. second, if the balance of the roth ira and defined benefit plan totals more than $10 million, you have to distribute half of the amount over $10 million until you get back down under that balance finally, the rules close a

loophole for what's called mega roth iras. to get around the income limits, wealthy were contribute to iras and converting to more tax friendly roth iras the rules prevent those of making $404$400,000 a year from making the conconverting this follows the peter thiel use of private shares of paypal into the roth ira which became the largest $5 billion roth ira ever becky. >> that is a good idea of what peter thiel did with that with private shares and value them at what they were valued at that point and running with that. the rules are put in to encourage average americans to save so they have more for retirement $10 million seems like a

reasonable amount. i don't see anybody screaming about these rules, do you? >> reporter: no, i don't i called charles schwab and many companies that provided roth iras they said no comment we have not seen push back there are 20,000 accounts with large amounts. it will not raise much revenue it will not raise much push back >> it makes sense. the reason you have these rules set up for tax benefits is to encourage average americans to save i don't see a big problem with this the only thing is if you wanted to convert and make more than $400,000 and convert an ira into a roth ira, you better do it quickly. >> reporter: that's right. i'm sure we will see a lot of that it is interesting. it is a small number

28,000 with balances over $5 million. that number tripled because of the stock market performance it is a small number now you see the number growing over time you are right. this is a tax policy that does make sense. >> you're right. thanks, robert coming up, s.e.c. chair gary gensler calls it the wild west and ray is worried about regulation bitcoin has no inherit value i don't know much about it what cryptocurrency investors merit ckk x" when "squawbo cos ghba >> announcer: executive edge is sponsored by at&t business our people and network will help keep you connected let's take care of business. 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.

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coming up, why ray dalio says regulators could kill bitcoin. and later, governor phil murphy will update us on the rise of covid cases and the progress of the vaccination program. stay with us this is "squawk box" on cnbc

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i think at the end of the day, if it is really successful, they'll kill it. they'll try to kill it i think they will kill it because they have ways of killing it

that doesn't mean it doesn't have a place a value and so on. it is one of those things. >> if they kill it. >> it doesn't have intrinsic value value. >> that was ray dalio on "squawk box" yesterday his comments as gary gensler appears before congress suggesting that cryptocurrency needs to be regulated. it was very strange. a lot of cross -- things were contradictory that ray dalio said i own bitcoin. you should own it. it has no intrinsic value. it will be worthless if it gets too big and they put it out of business then he said i'm not an expert and don't understand how it works. i don't really know what to think.

first off, do you think bitcoin on block chain has intrinsic value? >> joe, that is why everyone is so excited about it. there's actually real utility being shown in the world of cryptocurrencies and block chains bitcoin has now become less and less relevant to the overall ecosystem with market cap to the cryptocurrency world, if you will we have seen alternatives like ethereum and avalanche which is what we are talking about today. there is utility over $200 billion of value in decentralized finance in the ecosystem. you have nfts. you love talking about nfts. there is over $100 million a day of nfts. in august, there was a time when there were 1 million per day of nfts transacted.

the other thing people see in terms of utility is it is no longer crypto doing the p-to-p in the central finance or creating crazy digital collectibles we are seeing traditional finance people very interested in yields. we are seeing artists. we are seeing companies that license stuff trying to figure out thousand use the nft in order to improve their business and participate. athletes all trying to create social tokens to get in touch with fans directly as opposed to right now. they have to go pay a place like facebook or google to contact their fans suddenly you have a business model with new use cases for finance and all sorts of people. >> the utilitarian and utility

getting back to the question it is important to figure this out. people talk about the amount of energy that bitcoin transacts and used talk about the volatility of it as a currency to make it difficult to use it for tr transactions they point to it as being digital gold and inn herit valu. as they flood the market with currency and there is $21 million of value if it -- you don't go into amc theaters, which will now accept it or don't go to el salvador -- does it have intrinsic value in the way it is used and agent go algo algorithms >> that is what ray sees

bitcoin was introduced to the world as exchange and thinking of internet of money you have ethereum. ethereum basically provided programmable contracts on top of the operating system and ecosystems with developers or users all care about figuring out an application so there is a use case the issue with ethereum is slow and costly the third generation is this new group of block chains that have improved the technology and decreased latency such as ava. >> they are telling me to wrap i understand what you are saying it is now evolved into being effective in a lot of transactions not bitcoin, but crypto. back to the original point does the way it is constructed and proof of work, does it give

inherit value to the asset itself, do you think >> same way gold does. >> okay. all right. why do you think ray dalio doesn't think it has intrinsic valui value? >> he runs a $100 billion plus for others, $100 billion defi is $200 billion clearly, the use case is not the same as everyone else. >> there's bitcoin and things are talking about. gensler has it all to think about. we'll have you back, john, as a tiger offshoot i know mark was early as well on bitcoin. i'm not sure he feels the same way anymore.

we'll talk to you again, john. thanks >> thank you you're welcome coming up, spacex launching the first all-civilian crew from kennedy. coming up, a live report from the ground when we come back a corner to build a legacy. a vision for tomorrow. a fresh start. a blank canvas. a second act. a renewed company culture. a temple for ideas. and a place to make your mark. loopnet. the most popular place to find a space. competition beat us again. how? they have a better finance system than we do. i feel like they might have a better finance system than we do. workday. how do they make better decisions faster? workday. it's got to be something workday. i think i got something. work... hey, rob, you're on mute.

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spacex setting a new precedent for space tourism. joining us now from the kennedy space station. morgan, this was fun to watch last night you got a really good view >> it was a picture perfect night. a picture perfect launch >> five, four, three, two, one >> just a few seconds before 8:03 pm eastern time the spacex falcon 9 lifted off

here carrying the all-civilian crew the rocket's first stage landing on a drone ship marking the third time that booster had flown to space the first time ever humans have been launched on one used so many times elon musk on site saying, it was an honor to wish you god speed before liftoff those civilian astronauts are orbiting earth higher than the spags space station and the huble telescope. the first entirely nonastronaut

crews, first african-american woman and the first with a prosthesis in space. they have another scheduled at the end of next month. the next private flight for axium to happen as soon as january. there are currently three spacex dragon capsules on orbit right now. there is no live video feed. we'll be getting updates and images in spurts over the next three days this is the biggest window in space that they are getting views out of on this mission and an expected splash down off the coast of florida on sunday >> a lot of fun especially the crowd cheering and doing the countdown themselves really great stuff we stayed up to watch it

love your coverage thank you. joining us now to talk about when this means for future investment an investor and founder and coo of space startup floor i know how interested you are in this the public starts to look at this and how risky this is for investments. >> spaigs ce investments are transitioning from government missions to commercial missions as we saw with spacex, the ability to first send cargo, then crew and now an independent commercial mission you are starting to see access to space opening up.

that's what my company is doing is opening access to space for orbital missions not with humans but enabling human missions in the future >> one of the things explore does, you've got a positioning navigation and timing project kind of like gps for exploring the moon and beyond. those are the type of things that maybe are better than space investment >> space and internet 2.0 this our opinion is all about the data we can bring back all of that is a capability we need because the space craft needs to know where it is located when it goes beyond the space floor.

to have a operation navigation and timing capability is what is needed to go far beyond the orbit. the s craft and light craft that can go to destinations beyond earth to the moon, mars and out. already thinking about how will we navigate beyond earth orbit and with many customers in the future >> we've had astronauts come on and said the scariest thing out there is the space junk. so much stuff sent out and never brought back and a tiny nut or bolt that gets loose could cause a hole in your space craft does your positioning work it shefl. >> you are referring the

collision avoidance systems that work today and are constantly be being advanced steve wozniak created a company addressing orbital debris. that is an issue for lower orbitting. it identifies objects and works in a complimentary way with high-quality positioning and navigation systems to change course they would be kblimentry, certainly. >> are you putting more and more money into space and this area >> we have more than 30 companies in the hemisphere portfolio. we are looking for the most capable companies and funding

them, absolutely >> lisa, we appreciate your time we hope to have you back soon. >> thank you when we come back, house democrats pushing forward their plans to try and raise taxes on corporations despite yesterday's vote, still a lot of questions that remain a lot to dig through from d.c. that's next.

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the s&p 500 having its best day in two weeks the latest on what you need to be watching coming up. will the iphone 13 be a hit this holiday season or disruptions bring out the grinch we have more of that story facebook's instagram showing that it could be toxic for teens and the company knows it second hour of "squawk box" begins right now

u.s. futures are flat. we haven't really made any head way in a while september 17 is what we should know that's tomorrow. >> moderna releasing for data from the phase three study for covid. the company finding support for a push for a wide use of booster shots finding the breakthrough cases happening less often among the group of trial participants more recently inoculated

electronic arts delaying the launch of battlefield 2042, it will now be released november 19 it will be called 2043 now no, ea is blaming pandemic-related challenges. stock bouncing back after being down more than 5%. general motors, when we read this -- >> this one, you've got to slow down and really take in. >> general motors now advising chevy bolt owners to not park their cars or evs within 50 feet of another vehicle to reduce the risk of a potential fire spreading. >> but feel safe driving it around in the meantime

>> you better hope the parking lot has open spaces. got to be one of these great big parking lots you ever see people do that where they think they have a nice car and take up three spots. this you have to do out of necessity. that warning comes after the automaker recalled 140,000 of these due to the risk of their batteries randomly catching fire i guess until you get it fixed, you would do that. >> or maybe you are not driving it right now, you don't want to keep it in your house parked in your garage. >> no. that's where you keep all your trash and newspapers and everything let's get to dom with today's morning movers

>> let's look at shares of all of those las vegas casino operators with operations in macau. looking at three that have significant macau operations wynne resorts, las vegas sands and melco resorts down grading those to a more neutral rating they say it is not about the licensing or lease renewals there, they have a little more concern about the ability to bring money back from those casinos back to the united states they are downgrading these three and over the course of the couple of weeks here speaking of china, chinese internet stocks feeling like the increase of more regulation

there. the government is pretty explicit about it. alibaba down, baidu is down as well chinese tech stocks under pressure so far today. also a couple of interesting analyst moves with companies here in the u.s. bank of america buying doordash. they think the market is under appreciated when you look at what else can be delivered things like groceries, alcohol the total market grows those are up 3%. >> we wednesday with beyond meat, the maker of plant based meat alternatives. cut to the equivalent of a sell rating they think among other things

that the food service portion, them selling to restaurants and other established locations is maybe a little bit too optimistic that is the reason why shares are down 3% in the pre-market trade. >> because of places that are saying they are not going to continue their partnership o the ones that had been anticipating because there are so much other things to focus on because of labor shortage. >> they point specifically to the dunkin business and not being as robust. >> if that were to happen with impossible foods out there, more and more established meat processors it becomes hyper competitive and these options.

so maybe a little bit to an underweight rating >> thank you joe, somebody pointed out with the chevy bolt, if you can't park 50 feet away from others, then you cannot park in new york city >> one thing, it is a serious issue. i will hand it to gm because this is a situation when mary barra, remember when she came in she had that ignition switch issue. years of that being covered up i give them credit for at least saying this is a problem and you

have to be careful >> they may be overly cautious >> beyond meat, i thought it was called beyond meat like it is meat and beyond like you have a problem with the oat milk and it should be called something else >> it is not meat, it is beyond meat plant based meat alternative the easy symbol to go for would be bm. they picked a different way. >> thanks for that you are welcome. the house ways and means picked a sweeping tax plan all in a bid

to payfor president biden's $3.5 trillion spending plan but the plan left out some new reporting requirements for the financial institutions that the biden administration believes are needed in enforcing. we have more now >> they say this is so important because it is not actually raising taxes but ensuring people to pay the taxes that they owe the treasury making those new rules part of the plan because they were left out of the house version. the package did pass the ways and means including $80 million. the white house said the government could raise even more revenue if financial institutions had to report how much money flows in and out of individual accounts.

in a letter, said it is important to ensure the reporting regime is sufficiently comprehensive so that tax evaders are not able to structure accounts to avoid it enforcement coupled with reporting captures $1.7 trillion. the ways and means chairman said the conversations are fluid but changes will need to be made >> this is a three-way negotiate. the house, the senate and the administration we wanted to make sure of the two chambers and the administration that nobody got too far out ahead of themselves on it. >> both pieces and reporting are essential so they work together on that tax gap and to raise that critical revenue. back to you guys

>> i still don't understand. what happened to carried interest in this plan. you see the journal. a lot of donations to democrats coming from private equity firms. many that started leaning left a couple other things that didn't get included and i thought would be is there a story, behind the story here >> the story is a simple one this is a vote counting exercise they did not have the votes as proposed they are still discussing ways to taylor or narrow it there was one democrat in the committee presenting this plan so already, the house has lost one democrat on this piece they lost three on the drug pricing piece. a lot of attention has been

focused on the senate side, what is joe manchin and kristin cinema going to do at this moment, democrats do not have the votes they need to pass this plan. >> it is an elixir. a lot goes into the final product. maybe you need to be a little cynical to figure out what is really going on. >> coming up, september tends to be a negative month for stocks showing the that the s&p 500 is typically negative dpaling a little over half a percent since 1945 we've had a 20% rally to regard so far this year what should investors be thinking about this year we'll find out after the break "squawk box" coming right back

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a potentially tired market all playing a role here years where the s&p 500 has made the kind of gains we've seen this year, the index actually tends

to go higher year after year are you thinking these gains will continue? >> every strategist out there is calling for this correction. we've had a 5% correction. we are still long and not trying to time the market if you do have cash on the side, that 20% run is still high looking out three years, i'm not going to time it we could have a decline. that market could have an up trend. visiting the thesis by the way,

everybody waiting for the dip before you get 5% pull back. don't worry about it look for the stress. the mark elt is being a little more careful looking at the stocks and uber at 40% from its peak saying we'll actually be the cash flow. we still love the story. you'll have opportunities with other companies. getting near the earnings

season looking at the numbers where we need if we have the demand issue, you'll still get a pass on supply >> that's a good point the sup lie chain issues what we were talking about there, you like the stock? >> the stocks in that space, flat for the year. they've got great tale winds behind them because of the delta

variant. these are companies with strong balance sheets they are pretty high and have got to meet those. >> let me ask you about chipolte, that was in there. is that a stock you like or don't like >> if they make one mistake, these can get cut pretty badly >> other stocks you like, you mention zimmer why that one >> competing with striker and others where they've been put on

the back burner. they are not canceled where stocks are down. they have a great pipeline in those divisions. >> the financials have not fared financially. a place you actually see some value. >> we are overweight and varied in there well with those stocks. some others that haven't really done well. they've traded those sectors have moved more toward you've got to be careful if you do buy companies.

all of those that we own, looking there, you'll be rewarded there not expecting stocks to stay high fundamental and picking up over time i do think the opportunity there, the margin of error there. from which side you go out thinking things from a macro level? >> that issue as we see

inflation coming up and demand where we see those coming down having money come out of the market how much of the stock is driven by demand as we get in there that is a concern. everything else is baked into the market >> great to see you. i know you have plans today. have fun >> yes thank you. >> we'll see you later when we come back, will apple's new iphone have a good holiday season breaking down if it will be a merry maker or the grinch. checking out shares of on holding. we spoke with the chairman and

ceo yesterday. shares soaring more than 40% in their debut yesterday. on is now valued at more than $11 billion. "squawk box" will be right back. >> announcer: time for the after flack -- aflac question [aflac!] that's a lotta money. ♪ did somebody say money? he said aflac. well if they're paying out billions of dollars to help cover unexpected medical expenses, what's the difference? coach prime. what... no smoke machine? [aflac!] looks like aflac is ready for prime time. [eh eh eh! eh eh eh!] hey, coach to coach... what do i need to do to get one of those jackets? ♪ get help with expenses health insurance doesn't cover at aflac.com get help with expenses health insurance girls... the chess club has gained an edge on our bake sales.

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>> announcer: now the answer to the trivia question. the answer, costco the company was originally named price club apple unveiled the new iphone 13 with updated chip and design can the iphone deliver a big holiday quarter? >> interesting because there are

supply and demand issues >> first of all, apple cfo warned last month component shortages would cause a problem in the current quarter then these new phones themselves last year was big. the first 5g phone this year, the cameras the iphone 13 is nice. they've got it priced the same enhancements and finally bigger battery in the pro models. amazon's am any fire tv with alexa built in the iphone 13 isn't going to have a big q 4 >> there do seem to be a lot of wireless discounts from

carriers >> true, joe on the other hand, this could be a huge season for iphone 13 sales. we don't know how many days we'll be in the office or traveling or in the gym. what we can count on is needing a phone. the front-facing camera is better quality carriers are even more eager to discount buyers. a lot of 5 g now and working to improve the experience will be a much bigger holiday for the iphone than nay sayers expect >> i do what you do, jon will you get one

>> no. here is why. i like the se. this is the one they didn't update it is the cheapest i like a home button i don't need a huge screen my eyes are good enough. once they put touch i.d. on the phone in the home button i don't want to have to hold it up to your face. >> whose idea is this silicon phone case i just sit here and stroke the case >> i was hopings that what you'd say. >> for becky, do they have any new blackberry >> i have a new iphone

doesn't have a button on the screen >> jon, you sound like us. >> you don't miss the button >> i don't i miss it about a day. >> rubbing it in with the you can use a smaller screen because your eyes are still good jerk >> my eyes are like fixing themselves now i can see far out of my left eye on close up on my left eye >> i was going to ask something else >> you using the facial recognition? >> no. >> can't have sunglasses or a mask on. most of the time it works. >> i need to be able to unlock my phone when it is not right in front of my face >> i realize why i love this

segment so much. you are modern day version of rose anna rose anna dana you answer your own questions. still to come, the latest on the china tech crack down which made for some big logs in chinese casino names additional losses sands china down another 8%. facebook under fire as they report on the company's awareness of the aps negative impact on young users really hits the market. putting pressure on the social media giant. getting the latest out of washington hispanic heritage month. all month long, we'll spotligh business leaders and anchor and

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one of china's largest real estate investors is in trouble >> the company's name is ever grand. the second largest chinese property developer looking more and more like the company may collapse the main unit applied to suspend trading of on shoer corporate bonds after the down grade this is the overarching property

developer is managing to try to stay on top of the liquidity crisis the company currently owes about $300 billion in liabilities. it originally ran into trouble when the government targeted the property sector because of concerns of a housing bubble they told developers they needed to include leverage. since then, the company has been working to try to sell off assets it says for example, the ev unit, at the same time, it is having a lot of difficulty trying to sell off those assets. this week, the company warned that it would see significant decline in sales this september, a time when usually people are buying and selling property. that could heighten cross

default risks. so all this week, even a couple days last week as well homeowners have been mobbing the company demanding they get their money back those companies disclosed. the billionaire founder's wife bought some of those same investments about $3 million these investors not very impressed. the fear now is of con stageon they are worried about a spillover affect the government has been

messaging it is holding meetings with the banks and would have to hire experts to sort out this issue. it does test the resolve of authorities because beijing has been trying to say that it doesn't want to allow these companies to continue to be bailed out they want to allow some of these to fail in order to improve the overall health of the financial sector >> definitely part of the whole equation if you want to be true capitalists. has to be failure. turning to another sector under fire in china, casino operators in macau they'll need to rebid for their

operating licenses next year the macau second for economy and government could reduce the number of licenses granted the managing partner and founder of i gaming focused on the gaming industry. man, if people operating there didn't need you before, they need you now what are you telling companies is likely going on here? >> good morning. thank you for having me. so basically, there were nine issues that the secretary of finance laid out really down to three key issues. they are essentially, a, the share holding by local participants or, b, the potential restriction on the

dispersion of dividend thirdly, the potential of that division of the day-to-day activities the potential structure and efficiency of which they would manage their business on the day-to-day basis >> the u.s. has a big presence is that the problem, tensions between mainland china and the united states. >> absolutely. you can almost draw a line to where it started so when china allowed macau to liberalize its gaming industry, they foresaw three original

concessions. somehow those became six the bigger question china is asking is how did you let americans come up with 50% control. i don't believe they have had satisfactory answers to those key questions. this represents the first opportunity to reset the table coming back to the relationship, yes, it escalated under former president trump, they held and postpone the new concession exercise hoping things will improve. so far, i don't think that's on the table. they have decided, look, that is time to do it. let's not put it off any further. >> that's the way they'll handle share holders. will the licenses get renewed

for everyone what will it look like in your view >> it is not a renewal that is a miss perception painted in very early days it is a totally new exercise that existing law will expire. under the new law, the new concessions will be issued that will have the opportunity on the session any newcomer will be able to participate, so yes. >> while we have you here, are you consulting on delta variants and covid and everything else?

what does that look like for casino operators in macau? >> so macau has been pursuing a zero covid outcome we've had zero the last 12 months and in the last three or four weeks, a family of four that have not translated to a community cluster. we have zero transparency. we have shut the border with china and hong kong and the rest of the world, we do not allow any nonresidents or workers who do not have residency rights to come into macau. >> we appreciate it. we'll check back with you.

maybe some will fair better than others but all are being affected at this point >> coming up, new data and the labor shortage in health care. nasdaq is down we'll by right back. today, things can be pretty unexpected. but your customers, they still expect things to be simple. and they want it all personalized. with ibm, you can do both. businesses like insurers can automate it processes across clouds. so agents can spend more time on customer needs. and whatever comes your way, you've got it covered. saving time and improving customer service, that's why so many businesses work, with ibm.

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nearly two-thirds of health care workers are vaccinated. as hospitals push mandates push demands, those are increasing demands. >> nearly 40% of u.s. hospital systems now have mandates. for some rural hospitals, it is a big russ being lewis county shut the mat earnity ward after six nurses quit more departments now face shortages. >> we do need to have a

vaccinated work force. it is not an option. >> so they are holding firm. >> memorial in houston has set an october deadline despite being short staffed. so far, two dozen as of 2,900 have refused >> you choose to remain a member of the family being vaccinated or you choose to leave the family and pursue your career at a different organization >> with biden administration making the mandate, it could make it harder to find work elsewhere. >> what is the outlook for the federal mandate and whether it issup held in the courts in texas, a judge upheld one

hospital's mandate in a lawsuit brought by nurses. here in new york, a federal judge issued a stay on new york state's deadline because of issues involving an opt out for those who have religious exceptions that will be a key for the supreme court. the supreme court 100 years ago did up hold the state's right or government's right to impose a mandate for the public good. >> not a vaccine >> no. it was for a vaccine it was small pox in 1905 a massachusetts man challenged it and the court upheld the state's right to do that >> i don't like that one i wonder how they made it?

>> better than having small pox. >> the original ones in the 1800s, they took like cow pox and injected it. you are talking much better science now snoochlt when we come back, facebook documents show how toxic instagram could be for teens and how the app affects the user base with teenaged girls mostly at risk. we'll discuss the impact on mental health and getting mark zuckerberg back on the hill to test on these issues

after a scathing article on the wall street journal blaming instagram for increasing depression among teen girls. a leader wrote a letter saying, these findings paint a clear and devastating picture of instagram as an app that poses sincere threat to young women. congresswoman, thank you for being here today >> i know you had questions for mark zuckerberg when he appeared back in the spring a lot of those centered around

teen's and kid's well being. what did you think of this article? >> look, the documents published show that mark zuckerberg and high-level leaders knew instagram was adversely affecting especially young girls. they took little to know action. that's not just negatively against, that's neglect. i am a mom of two young girls, 7 and 11 like others, we have serious concern about how social media is going to impact them. this report just put pungsation on it for all of us. >> some of the research they had and the slides said, we make

body images worse for one in three teen girls frmt and others say teen's blame instagram for anxiety and depression 6% of u.s. and 13% of british users trace the desire to kill themselves back to instagram i credit facebook for this research these are from 019 i don't know what we've done differently. >> to hear you read those is as appalling as the first time i read them. the last thing facebook should be doing is developing additional services engineered specifically for children even younger. they should be focused on making their services safe for the 10s of millions of young users

let's be clear how this report got out into the public. it took courageous employees of facebook who knew what was going on to blow the whistle the fact that the alarm has been sounding for years with leaders at the highest level doing nothing. it calls into question the motivation and their plans to target users even younger. >> the company's response said the wall street journal cherry picked with some of the data and looked for the negative light on these things saying sometimes it works for the good and sometimes for the bad. >> when mark zuckerberg testified before our committee

in march, he cherry picked the research he brought to bear. he thinks platforms can have a positive affect on the mental health the burden is on him and facebook and instagram to show how they are actually going to embrace age appropriate design and take this information and make sure that they are not going to harm our youngest users because they are more interested in record breaking profits the reason we sent a letter yesterday with other colleagues demanding answers demanding they research and abandoning the launch for kids. >> if you want to cherry pick that, let's see what you are going to do about this research.

congresswoman, thank you for your time. would we like to hear more new jersey governor phil murphy will join us with an update in the state's rise in 'lala cases. wel so talk taxes on "squawk box" with cnbc this is lisa. she's a posh virtual receptionist. when you're busy, she'll answer your calls and assist your clients. you can't be in two places at once, let posh answer. posh virtual receptionists. new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today.

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the port indicator facing a number of problems but it could spell trouble for other industries we'll welcome phil murphy to talk about taxes to his state's strategy and talking about covid. the final hour of "squawk box" begins rightnow. good morning u.s. equity futures have worsened a little. in the red down about55 points

the big take away holding so far. we did get this 2 to 3% impact it seemed as if people would be anticipating this likelihoods that been the general rhythm of things we are getting the retail number looking at the equal weighted

basis has been in pure wait and see mode since the spring, that has also been the case with the russell 2000 the market has kind of gathered itself had some corrections weighting to see if we get this reac sell operation in growth. obviously some of these. one final group is the different parts of health care you've seen the big stocks pull back as well as the health care providers as well. a little better insulated, that seems to me from people stepping back under perceived safer

a character of the market has changed. you've seen a fair bit of weakness below the surface, guys >> still hasn't really telegraphed which way it is intending. sort of setting up the second half might not match the first half that's what a lot of people thought. >> that's fair heading into september, running at about a 30% annualized gain a lot of that was in the first part of the year it would be unusual for the high for the year in a bull market without some kind of tightening shock or something like that that would have come for september 2, that's the general way things have gone we've gone a very long time without a pull back. we have gone longer. we've gone a year and a half

>> it is a strange time. getting a handle on delta. the reopening starts and the tapering is more likely. it is like a good and bad. like a jon fortt segment like on the other hand >> you are definitely at the part of the economic and market cycle where there are always offsets. tomorrow, the fda will hold a hearing about booster shots. meg has results on this. a lot to talk about here >> there sure is

>> questions about those that may have taken matters into their own hands and gotten one 1.86 million people that are immuno compromised a lot more americans have already gotten a booster between 4 to 16% have already gotten a third shot or a second with j&j that 16% from our poll we asked people whether they plan to get a booster. 82% said, yes, or definitely will 14% were unsure. only 4% said they will definitely or probably not we wanted to know how loyal do

people feel to the original brand? likely the recommendation is going to be to stay with the same brand 79% said they are cool with that 21% said that's not important. we wanted to know if people wanted to switch, what are the most popular brands. pfizer is the preferred brand. overall. what we found is that most people got pfizer. that may influence that. moderna next and j and j looking at those who got pfizer and j&j, those with j&j are more likely to want to switch brands. a lot of interesting data here tomorrow, the fda is only meeting to talk about the pfizer booster. we'll see how this will start to

go we'll see a few more weeks before the guidance. >> switching vaxines i would add a little note of caution. studies are being done on if you switch vaccines. research is being done and is not completed yet. wanting to know how this has increased and how much of this is mixed saying how fair is this getting a third shot when there are some nations who haven't

gotten their first shot. i want to know the science and i'll make my own decision on that we saw some new data last night. still small numbers. they've seen protection against cases and waning against severe disease as well. the political question about fairness and whether we should be boosting people before people have gotten a third dose is a

separate question. the scientific debate is whether we need boosters because of a lack of protection that is what the vaccine regulators who wrote that letter and are retiring from the fda later this fall have focused on with consideration needing to make sure there is equity in access >> that's what you get down to it takes you back to some of the early days where we were being told, don't worry about it get a surgical quality mask. you won't need them. >> you want all of the information needed it may be better to use a surgical mask. you want to feel you are getting all of the information and science to be able to make decisions about fairness not be told one thing about

science. the public wants all of the information. the good thing is that it will all be public tomorrow and we can watch eight hours of the fda deliberation >> you can look at antibody levels there are probably still b cells. can they measure if the t cell is ready to deal or is it all about looking at whether there are serious cases? they don't look at the cellular data but whether you get sick or

not? not to the degree of antibodies. as you pointed out other arms could be protecting the disease would these t cells be ready to go it 140u8d be nice to know. the actual details of what is going on >> coming up, trouble in the nft world. allegations of insider trading how would that work? i knew something before hand about this particular bored aip

an -- ape. what does that mean? >> we can't explain anyway >> before we head to break check out this morning's biggest cn leroninners andoss bc

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comcast business. powering possibilities. one of the top officials at the nft's marketplace is being accused of using internal information of buying before they are placed on the platform and highlighting them. acknowledging that and conducting an immediate review on the matter. you explained it pretty well when we come back. the holiday shopping season could seem like a lifetime away

a report on when you should have started shopping the answer may be yesterday. 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.

a slow down of packagings. looking at the end of the year

and if consumers should be worried and whether you can get all of those gifts you are actually planning on buying joining us now and knowing what he speaks on these things. >> great to be here today. i read a report that said there were 56 cargo ships stuck out at the anchor waiting to get into the port what is going on >> you you've got the pandemic induced buying surge with the traditional peak season. cargo is rushing to market as quickly as it can be moved through. up 50% making loading or off loading of

cargo. 11,000 container being the best of the business. we've got to start untangling making sure they are to the market really just that americans are buying all of these things with so much extra money around we hit a million container units back in may. both records report. we also saw these pulling their orders forward for the holiday season as we got down to only eight ships at anchor in june, we pivoted into that peak season. retailers are looking at trying to level set

lead times bringing the cargo in earlier. retailers know this and brought their stuff in early what can you tell us in terms of what you should expect >> as i mentioned. shop a little early. go on line plan more than we normally do as we are getting ready for christmas and holidays what we need to know here is start backwards. we need to make sure that last mile is taking place as quickly as they can. make sure the fulfillment centers are full getting those things you out early. factory output in asia is at record highs but we are also

seeing a backlog of orders if your productivity is already up, is there anything can you do to improve this faster >> we are working around the clock. >> we are trying to squeeze every hour of productivity in the complex. there are 30% of truck appointments at nighttime going unused making sure we take advantage of that capacity. working to expand how many containers and shipments they can move out every ship, every day. what i think is long overdue

>> some things like workers not being there because of covid is that still the case or not even an issue anymore. it is an overwhelming load, i will say doc workers have been averaging six days a week. there was a spike back in january. we have testing rolled out and back in february everybody being able to work is on the job we have a warehouse worker base that still needs employees working collectively to get as many people on the job as we can. >> i'm guessing you are doing things like pretty frayed relationships and people not

understanding what is happening. is that the case. it has never been more evident visibility is key. all of those management tools are important with covid, we've eliminated travel. it has been the necessity to make sure we are moving those forward and giving out the good

update customers need. >> have you started using technology just in terms of tracking ships and containers. >> we've rolled out four new modules during covid all designed and developed to help understand skarg owe flow, a control tower to find out where cargo is the first of its kind, we'll make sure digital information is what is put out so we can make good decisions collectively and as a port. >> that six-month forecasting tool, what does that tell you? will there be big lines waiting? >> we'll see strength fwhl

thanksgiving we may see a dip there with an early lunar new year, first week of february, cargo will continue to flow. retailers are telling me after that holiday, they'll focus on spending their time focusing inventory. they are down to levels that date back to inflationary times. a strong focus and markets continue their strength throughout the foreseeable future >> thank you very complex we appreciate your time. coming up, retail sales and jobless claims on the docket jobless claims on the docket coming right up. risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

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welcome back to "squawk box" live where we are waiting important breaking news. initial jobless claims 332,000 is the number we arrive at that is 22,000 more than our last look, 310 was the poefd covid low may get revised.

we went from 2.7 million to 2.6 million. so 2.665 to be expect. that is a post covid low in the rearview mirror, that low revision may still be coming stronk as well whether the empire or philly area retail sales in august, advanced read surprise up our last look lost dout 7. minus 1.1 to minus 1.8

autos should be very strong. we lost on the revision to minus 1% 2.5 that is powerful look for yields to be moving up on this. energy prices in europe are really moving higher in blackouts and factory closures are affecting their economy. the euro is at a two-month low and maybe the most important feedback how they may start to move higher. they've started to see ongoing shortages and shipping human contact business suffering

with the good news being they might be painting a little better picture down the road becky, watch those energy prices >> natural gas pries easy specially. rick, retail sales prices better than anticipated we are buying so many things, we just can't get it quick enough that combined tells you how fresh these are right now. >> every category had bigger

revisions with these much stronger numbers appear. we'll pin it down more accurately potentially breaking the wisdom out there that is all we are supposed to pay attention to you really have to watch out for the energy many of those adopted in the u.s. as well. >> i saw bits and pieces from sources on twitter >> that money printing helped solve the income and equality.

>> can you imagine i thinks that what he said >> i heard from other people i think. it is exact. the worst thing raising the price of those assets. no savings for people to have. always helps and do other people manage the money at bridgewater? >> no. it really is a scarey

development. much about it. making an excuse to continue to do things we all know aren't good the inflation, stagflation issue. the wealth gap it is worsening. it seems to work out poorly for those most affected. you know what will be the worst thing? energy prices. that is going to be a biggie we all want renewable fuels. okay i remember all of the energy i felt when i first learned of wind and solar back in the

1960s, we still see them in prime time >> your hair is shorter and the mask how have you been? >> your mic is open. let's talk more about the economic data. joining us at jefferies with three es how are you? >> i'm great how are you? >> i don't know about your mic, what do you make of the numbers today? >> very positive they are telling us there is too much pessimism at the university of michigan. over the summer months, not materializing, i think it is yet another reminder we shouldn't be

counting out the u.s. consumer >> not clearing up it sounds like one of those 60% minutes pieces where they can't show the person and the voice has to be covered up i don't know if we can fix the audio. >> when we come back, dom chu will bring us the market movers and the governor phil murphy fromewer n jsey will talk about vaccinations in the state. vaccinations in the state. join us back on cnbc ♪ ♪

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1. let's try this again chief economists from jefferies group. >> so i think today's data very positive they are telling us there was a little bit too much pessimism around the drop. this is another great example of consumers saying one thing and

doing another from that solid performance from the consumer. we'll slow a little bit but both expected to reac sell rate q 4 to q 1 and shaping up to be a pretty positive holiday shopping season >> that's key. certain metrics that make you think, wow we are back i don't see it i see people out and what you are saying there will be a little bit of pressure perhaps we are in a much different place at this point. >> we are seeing weakness and service capturing more of that hit. that will probably be softer that will almost be temporariy

those cases look like they are peaking. a lot of that travel will be postponed and this will be the first in-person christmas in two years. i would expect travel to really accelerate as we head towards the tale end of the year >> what else restaurants are maybe not being as effective people can go out to dinner or eat outside. it is not the same as traveling across the country with a mask on for six hours or something. >> that's correct. you did see a little dip in restaurant bookings. entirely concentrated in those states florida being a good example even there, it wasn't

significant contraction. we've bottomed out in terms of the restaurant activity as well. we did see a little hit but it was very mild and very short lived. thanks for sticking with us while we fixed that audio issue. >> thank you for having me cases of the covid-19 delta variant continue to rise in the state of new jersey with 5.7 million people vaccinated, the governor pushes for more governor murphy, thank you for being with us. cases are rising here and in other places in the northeast too. what is the latest >> becky good to be with you. it is worse than it was three months ago but not as bad as the first or second wave

we've got 1,150 people in the hospital compared to a few hundred compared to overwhelming numbers last year. overwhelmingly, these are unvaccinated people. while there are breakthrough cases. very few of them make it to the hospital we are still out there pounding away, knocking on doors every day. the number goes up slowly but surely we need to continue to see those go up. >> with the schools back in session now, what have you seen there. i ask because i know there are already cases at my son's school >> yes we have one district i was informed of last evening in the southern part of the state that has gone on quarantine

we are trying to get information as to why and hows that happening. i think it is a little too early to assess we are only 8 or 9 days into the school year. we need several weeks. we are watching it like a hawk folks have to wear face coverings in school. that doesn't bring me any joy to mandate that buts that the right thing to do and we'll mandate that until we feel we are through this >> they think a lot of times when school aged kids get this, it is coming from somewhere else, not the schools. do you have any intention of bringing masking back to other locations? >> at the moment, no i hope it stays that way we have a strong recommendation

if you are in doors and packed in with other people in particular, if you don't know their vaccination status, the strong recommendation is to put on a mask. i hope we are not going to go back to the mandates of closure yours r. >> among the 50 best places to live, it is a great place. i understand that. we need to pay for these things. we need to acknowledge if taxes are one of your main stumbling blocks that said, if taxes is your main issue, then new jersey

is not the place for you i don't know if they took that out of context you acknowledged, you get taxed a lot if you live in new jersey. is that a fair thing to say? >> yes and no. we inherented a mess and we are chipping away at that. you know the state, the good value for money state. you pay something to live here but you get back, i think, overall, the number one state in america to raise a public. number one public education system in america. top handful health systems great quality of life. location second to none. >> i was leading into a question to see what you think about it you see. we know now what the house democrats are proposing. i don't know what comes out of

the $3.5 trillion. certain people will be paying 50% if this goes through even people that don't make $5 million are at 60% that will make people want to leave. are you behind the tax increases, would you vote for it if you were a democratic senator instead ofa govern >> i think the chances of my being a republican senator are low. >> you were at goldman sachs, what happened to you >> the game changer is lifting the salt deduction the cap on that has been crushing i think the impact of it has been masked because of the paean. it is overwhelmingly a middle class home oern especially senior, middle class home oern

tax hike, which is unnecessary it was political it was done in the trump administration that would be the number one thing i'd be fighting for because it crutches states like ours it is incredibly unfairincredibr to the middle class, especially to our seniors. >> in general, do you think that we need to expand government, the federal government, it's 3.5 trillion, some people say it's, you know, you add the other infrastructure in and actual numbers in, it's way over 5 trillion do we need to expand government and pay for it with higher taxes to that extent in your view to improve this country, or is it going to be detrimental for what it's intended to do? >> let me put aside how youpay for it for a second. we're the most -- i've changed my way i say this, because, joe, you gave me good advice. we're the most densely populated state in america with a disproportionate share of legacy

assets we have long ago, long since under invested in hard infrastructure new jersey would be a big winner on the softer stuff, we're already doing a lot of that in new jersey we're doing expanded child care, expanded pre-k, fund k through 12 more aggressively, make college more affordable, make housing more affordable. we know that stuff works if we had federal support, more fire power, we could do a lot of what we're doing faster and at a bigger scale that would also be a game changer. >> there's costs to everything, obviously, that's where the two parties disagree on whether the overall deleterious effects on the overall economy from less money in the private sector actually comes back-- you look at europe, we don't want to be europe they got a bigger safety net we don't want to grow at 1.5% for the rest of -- in our

country's history. it'd be nice to grow at 3, 3.5%, 4% >> but joe, i think infrastructure investment is a good way to get your gdp growth up that is a fact, and history proves that. >> governor, you mentioned that you're hoping for relief that's certainly what we've heard from josh gottheimer, congressman from new jersey. if that doesn't happen, though, if there's not salt relief, what do we do next? and i guess what we've seen so far with your plan has been to take and offer some middle class relief by raising taxes on anybody earning over a million dollars in the state of new jersey if the salt relief doesn't come or is only extended to middle class, what will you do in terms of the highest earne ers in the state? do you worry any of them leave because of those higher taxes? >> yeah, we don't have any plan to raise more taxes on anybody in fact, we're going the other direction. if you're a middle class family today compared to what we got in

the office three and a half years ago, you're paying less for a lot of stuff, probably on your income taxes, to go to college, to pay for health care, to pay for child cay that's the direction we've been going in and we want to stay going in that direction. if the salt cap doesn't get lifted, it is a fact that that's a problem. that's a real problem for middle class homeowners, especially seniors who are on a fixed income it's just not right. it's not the way that this was intended as far back as the 19th century when the tax regimes got put on the books at the federal level. it's not right, it's not fair, and i'm going to continue to fight it i will tell you that. >> if it doesn't get lifted, what would you do immediately? >> we're not going to -- we have t no plans to raise taxes on anybody. the good news is our economy is growing, and i think my job is to make sure it continues to grow so we have more financial

latitude and again, big focus on middle class relief. the other thing that we're not talking about here is there's a lot of state to state discussions right now that we're in the middle of folks look at an abortion ban in texas or gun laws in other states, or restricting democracy. it's not just the value, the hard math which we focus on, but it's the values, and that's also a discussion that we should have because that's part of a lot of our economic development discussions right now. >> governor, i want to thank you for coming down to millburn, which must have been -- it was a shock to me. the infrastructure we need to -- is there a way to keep that -- i mean, i don't know about stopping the storm itself, but there's got to be a way to -- new orleans, obviously that was a bad storm down there, but they

did things infrastructure widse is that what we should be spending concrete things instead oeft metaphysical, the spiritual, i don't know what you call it the democrats are calling it >> i don't know that i call it spiritual, but i think it's an and both moment, joe we did -- the good news is in jersey we've done a lot of what you talked about i was actually just on with the ceo of the biggest power company in the state we have protected substations after hurricane irene. it turns out this awful storm ida, which killed 30 people in new jersey, by the way all of them directly from flooding or related, the power outages were de minimis because we had done exactly what you are suggesting i think we need specific to these heavy rain storms, we need climate resiliency infrastructure that's going to depend on where you are in the state and in the country, i assume, whether that's levees, barriers, natural runoffs, pursuing these

so-called blue acres plans where you take people out of their homes who are raising their hand and turn that into a natural runoff it's a whole series of things that we need >> governor murphy, thank you for joining us today it's always good to see you. >> like wise, thanks for having me, folks. when we come back, this morning's big market movers. plus, don't forget our annual delivering alpha conference coming on september 29th it's all about maximizing returns in this new era of opportunity. join some of the biggest names in investing at this c't maniss virtual event. register now at register now at deliveringalpha.com. after taking care of them, i knew that i really wanted to become a nurse. amazon helped me with training and tuition. and i'm studying to become a registered nurse.

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let's get a final check on the markets. the dow's positive we had some numbers at 8:30 that could have affected that a little bit nasdaq indicated down about 40 take a quick look at oil and the ten-year note. are you still around, becky? >> i am. >> did you get -- when the governor you kept asking him about raising taxes, he said he won't raise any taxes on the middle class. >> he said no new taxes. i took that -- but that's because he just raised them last

year. >> the million dollar plus you asked him about, he said that's off the table? >> no, no, that's staying i think. >> that's already in. >> that's not going anywhere he's already raised taxes. i don't think he needs to raise it there we were talking about that number north of 57% for high end earners if the ways and means committee plan goes through as it is, which it won't. we'll see what happens, what kind of stuff gets through the mix. something to think about. >> from your lips. >> thanks, beck, 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 mike santoli at the new york stock exchange. morgan brennan is at the kennedy space center where she witnessed that historic spacex flight. it's all about the ecodata today as retail sales come in with that surprisingly strong