chip supply issues speaking of cars used car business is pretty good for some people. we will talk about that this friday, september 17th, 2021 as "squawk box" starts right now. good morning welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. andrew, welcome back >> thank you >> a mixed day fofr the markets yesterday. this morning, the dow futures down 56 points s&p down 9 nasdaq off 31. it has not been a great september. september is the worst month for

markets since january. this week, they are on track to look higher. the first time in three weeks for the dow indicated higher the first time with treasury yields you see the 10-year right about where it has been. yielding 1.388%. andrew. thank you. corporate news a former boeing pilot facing criminal charges over safety is issues blamed for two 737 max charges mark forkner was the chief technical pilot for boeing when the plane was being developed. that story continuing now in the unique and interesting way with criminal charges expected. meantime, deal chatter invesco merging with state

street asset management. the state street asset management unit manages $3 trillion think about the consolidation and you are still far away from where blackrock is very far away. >> i think my guy is coming up is with state street not that he's in management at that company i think he is on the advisory side of things state street global advisers he's really good i was talking about the guy at carvana. did you see that sold 16% of his holdings for $3.2 billion i did the math

$3.6 billion 16%. 100% is that like 6 times 16. is that $20 billion? >> pretty much >> man in vending machines i'm not complaining about mr. garcia ii. what a country that is awesome. his son has been on before >> it took off, especially because of the pandemic. >> yes >> used cars you could hoard cars not quite. usually you drive off the lot. it goes down half. >> the used car as you saw was up 17% and 10% and 12% over the months recently. i remember looking at it the month i bought was up 12% after up 17% the month before. >> the boeing story. i think some random -- this is the guy in testing in testing

not just a guy that didn't report he was having issues. this is the guy who is supposed to be in it charge we will see what comes with that obviously, boeing, when does it end? the companies go through this. multiyear. >> from the legal perspective. it is helpful to boeing. it sounds cynical. if forkner is convicted, it is helpful to the management of boeing >> they can throw him under the bus? >> the previous man. >> over there. they can point over there. >> they must have a paper trail. there has to be something where he says you think back to saying one thing publicly and saying something else in email. >> mark forkner was one who said different things this emails in terms of reporting suggesting that he lied and knew he was lying. >> so "the drudge" has our

story. we don't get the lead story in "the drudge. fed under ethics review. it is cnbc congratulations, thomas frank. another big story this morning the federal reserve finds itself in the middle of controversy. this is something we have been talking about for at least a week since we first heard about kaplan trading stock by fed officials jay powell ordering review of the financial activities following disclosures of several senior officials made significant stock trades or held large stock investments. senator elizabeth warren is calling for a ban on ownership and trading of stocks by senior fed officials. >> a ban that would not allow them to put it in a trust or to not make any trading active

through? >> the rules that were already in effect have big quiet periods where you can't do anything. i don't know if you can gain anything he has been the most hawkish we pointed out the irony he will liquidate everything before he starts be on full boh fed pump priming >> the debate is perception versus reality versus attracting there is the argument about attracting experts in the field who would not otherwise want to take on the job. >> that would be my concern. i think there needs to be tight rules so you can't have the appearance of impropriety or look like you are talking your

book in the fed meeting rooms. it didn't look like he was in this position. idea you can't own anything? we have rules here you can't own individual stocks. i get that >> i'm going to go somewhere i shouldn't go the last time i did that >> oh, boy. >> we all have comcast shares. right? we all have comcast shares it has been an unbelievable stock. i've been here a long time robert frank was just on people are looking long and hard at things they have capital gains in because capital gains rates are probably going up. i love comcast i love the management. should i think about it? i'm no spring chicken. i have to have a nest egg. i have to think about my family and retirement and everything else what is the math on it am i supposed to start thinking about that

>> you want me to tell you something i shouldn't say myself >> yes >> i sold some on december 31st last year because of this concern. i thought it would be retroactive. >> interesting >> yeah. >> not a lot it is still my largest position is still comcast >> we know that. andrew knows how to do everything with this stuff he is savvy about this anything yet >> i haven't. >> are you thinking about it has it crossed your mind as an investor and father and family man has this crossed your mind is this something you should think of >> you should think of it. >> am i in trouble >> i am. for following up with that. >> when robert frank comes on, i'll ask him you have to think about that you are not being unamerican >> you are thinking about the potential changes in tax

regulations. >> right >> it's not great. by the way, it was probably not the right move for me to do that because comcast shares have gone up higher since then the bulk of my holders are still comcast. >> people say you should never do anything based on tax ramifications. >> i put it in s&p into an index fund i didn't take it out of the market. >> this is good advice >> it occurred to me with all of the talk of the taxes and retroactive, it occurred to me >> very quiet. my mind's working. have you told us what to do? >> i have to think >> put it in a blind trust >> i don't know what everyone's circumstance is here. >> we have all been here a long time there are certain times you get

stock. >> there are >> and i think i go back enough to where i split at $10 $10 or a share. coming up, the big themes investors need to watch like this as we wrap up the week. two strategists join us next. as we head to break, look at the biggest s&p winners and losers in the pre-market i think transparency is everything, andrew this is fine transparency is everything disclosure transparency you are watching "squawk box" as you see we are bearing our souls here on cnbc >> announcer: this cnbc program is sponsored by td ameritrade. where smart investors get smarter. ♪ ♪

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welcome back to "squawk box. futures this morning seeing red. yesterday, it could have been much worse than it was this morning, we're kind of not back to the lows we saw on the averages yesterday maybe on the way although the nasdaq managed to eek out a gain joining us now is dana daria and the chief portfolio strategist at state street global i'll start with you because when i was reading your comments, i don't know, i felt okay. i think that at this point you

have metrics you use that indicate risk. although we're in a time of year where we worry about october lows and, i don't know, a fall swoon, your risk metrics are not elevated at this point is that correct? >> that's correct. yes. >> that's interesting. no imminent break or 10% correct in your view >> no, we don't see that honestly, there's a lot that is being said about growth in the u.s. remember, from the stock market perspective, peak investment growth doesn't mean peak growth. we don't see bond yields higher than 160 or 170 by year end and no higher than 1.9 i think that alignment with what we are seeing with growth, you want risk assets

equities and commodities with the expectation. corrections are possible our target for s&p was in 4600 range. we are close to the target so, i don't see much upside. we don't see that same down side >> you are looking at what is staring us in the face that is still friendly yield i don't think you like bonds at this point obviously. you like u.s. stocks and european stocks and commodities. you look at covid and delta win eventually wane at this point. what about inflation and taxes going up any of those things worry you? >> oh, yeah. some concern around inflation. i would not say overly concerned. when you step back and think about covid and everything you

were talk about, put in the context of significance of supply chains and bottlenecks. that means corporations with cash on hands will make investments in cap x certain industries are cyclical. that is the reason we like europe industrials in europe. banks are doing reasonably well. on behalf, not as much concern about inflation. keeping an eye out for it. for this combination between the growth you get in the u.s. and then the cyclical exposure with recovery on the back of the continue of spend as we look to release some of the bottlenecks in europe. >> dana, that play ns into one your themes. if you want to play into whatever the government decides

to do that reinvestment may be plan >> no question what it boils down to is what is already priced into the market prices if you are interested in the esg space, we see a lot of the flows going to passive products. that probably doesn't stand to benefit much from what is transition risk and fiscal risk. when you look at the package, there is a lot for renewables and a lot for electric vehicles. if you are interested in that space, those are the schemes you want to look at. >> are you as calm about the equity markets right now you have seen the reason it is listless there is concern about the debt ceiling. inflation is probably not transitory in your view.

do you think the upside is limited here and you need to be selective? is that what we take away? >> you know, if you are an adviser looking at the client asset allocation, now is the tam time to make sure the risk is a concern. we are seeing mixed economic data we know the market will have to deal with the debt ceiling at the end of the day those negotiations coming and potentially tapering likely coming the end of the year who knows what happens with the covid variant? not to say things can't work out well i'm looking at this now and saying is the risk tolerance right and diversified well and in the right posture for what could be volatility coming forward. >> as a wealth adviser, would

you ever take tax considerations into account i think you said if taxes go up on corporations, you will see in effect 5% or 10% on corporate profits. what about capital gains on individuals? do you expect to see portfolio adjustments by the vast majority of people if capital gains rates are going to spike >> you know the problem is it might be already too late. if you look at what was coming out of house ways & means, it is possible we are retroactive from monday you sell now and try to get ahead of it. you may be creating gains that will be taxed at the higher rate they are looking at anyone making over $400,000 pay on gains versus 20%. it may be too late if you have a move you wanted to make anyway, you know, no reason not to do it

there is a chance we are not retroactive to that date i don't think you can let the tax tail wag the dog >> so, the smart people were selling on december 31st, it sounds like, last year, dana thank you, dana. did you hear that, becky >> yeah. i did. i did. who knows? again, comcast has gone up sharply since then, too. >> right you know, it is a good idea to never really -- i guess at some point if it is on the margin, you might consider it. in general, you invest. >> for the long term i still am a long-term holder. when we come back, back to school and back to savings a new program aimed at helping

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the disparity. we have sharon epperson with more >> reporter: the 7-year-old has big dreams of becoming an astronaut. the second grader who was born in bangladesh is already saving toward that goal a few years ago, a pilot program gave every kindergartner in her district $100 in a 529 savings account. initiative expanded this fall to include every kindergartner student. it is spearheaded by the new york city kids rise and includes a $15 million investment per year from the city through 2025. >> it is incredibly important that we remove the barriers of entry to families and low-income families and families of color >> reporter: families from los angeles to san francisco have similar programs offering opportunities to earn money for

college savings. the hope is this inspires parents and many immigrants to invest in their own 529 plan >> i would do anything for my child. i want an education for my child. >> the notion you had assets there before you thought was a possibility matters. >> reporter: murray's mother is part of the school district who piloted the program. he remembers growing up and his mom saved by stashing dollars in a jar. >> she had no information about financial vehicles or other means of savings that could have helped her along the way >> reporter: general gen personal finances believes the key to changing the financial trajectory for families is education. >> the more you know, the more confidence you have to make the financial moves and you will be savvy and more well off. you will start to see the

results. >> reporter: new york city kids rise estimates that with community scholarships and family savings and earnings on inve investments, on average, families will have saved $3,500 for education costs. andrew. >> sharon, what happens if the child in the new york city 529 program decides not to go to college? what happens to the maoney >> the money is invested in the 529 direct plan. it can be used for a number of college expenses that includes the colleges in the u.s. and abroad. it includes community colleges and trade and vocational schools and online degree programs if the student in the city program decides not to claim them 20 years after kindergarten, it goes back to the program to support future students >> what impact is savings for college at this young age have

on their future goals at this point? how do we assess that? >> you know, andrew, it can change their mind set. experts say having a small amount of money in a college savings account may signal that college is possible. it can help the child focus on the expected savings in the future rather than the family currently has saved. also building college savings does more than cover education costs. research shows even families who saved less than 5$500, they are less likely to enroll in college than those with no savings account. >> great story, sharon thank you. why global investors are paying attention to a property developer in china right now first, as we head to break, a look at the s&p winners and losers

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good morning the futures now have gotten worse, at least on the dow down 100 points. triple digits. nasdaq indicated down 45 the s&p off about 14 points or so in the bitcoin world and cryptocurrency world 47 and change on bitcoin and some of the other -- we should probably start putting more in there, i guess that would be endless. is there a -- >> what do you want to put in in. >> pudgy penguin index >> you could put up an nft screen possibly. >> there are, as you might imagine, i'm seeing a lot of different cute animals. >> yes. >> that you can buy nfts on.

doesn't that make it, if there is too many, a supply problem? >> yeah. >> i'm not sure. >> isn't that the problem? >> if i would go for one, i would think of what animal the bored apes i think it is funny. >> self reflective >> yeah. in global news shares of china evergrande group tumbling again with the property giant on the brink of collapse company dealing with $300 billion of debt. evergrande is so big, experts feel the failure to ripple throughout the china economy and possibly markets outside that country. earlier today, the editor in chief of the state backed newspaper warned evergrande shouldn't bet on the government bailout. saying it is not too big to fail meantime, along the big events today committee of outside advisers

meeting with the fda to discuss the pfizer application for the booster dose for the covid-19 vaccine is expected this afternoon. meg tirrell said there is a fierce debate over whether boosters are needed. we will have more with dr. scott gottlieb in the next hour. general motors extending down time with the auto plants in the u.s. and canada gm shares year to date you can see what happened to gm. a bit of a roller coaster. now at $51.60. becky. andrew, thank you. when we come back, president biden laying out the economic priorities the big question for investors, are higher taxes coming? are they coming for you? for individual sectors what should you do with your money? we hope to have answers from the cornerstone investments next.

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welcome back take a look at the u.s. equity futures. it is friday not feeling friday-ish dow futures indicated down the nasdaq down by 39. we're in september and it has not been a great p mmonth. so far this week, all three averages are up for the week. meantime, president biden making his case to the need to raise taxes to fund his economic agenda more on that is kayla tausche. it has been the conversation of the morning, kayla >> reporter: good morning, stare fiscal policy. he is urging he needs to right the economy at this inflection point. >> this is our moment to deal working people back into the economy. this is our moment to prove the american people that their government works for them. not just for big corporations and those at the very top.

>> reporter: not everyone on the left is sold according to axios, joe manchin was unswayed by joe biden in the wednesday meeting. holding his view that the bulk of the campaign promises which is no bigger than $1.5 trillion. the white house did not respond to the request for comment beyond the readout beyond that it appears the white house is looking to move the goal post. at the s.a.l.t. conference, the statement of maybe they have to be cut down in size. maybe. and looking to progressives on the looming fights on the debt ceiling and who runs the federal reserve. there is the midterm e-term ele coming up next year. after the first year as they stare down the campaign season, they want to talk about all

they've done andrew. >> do you want to weigh in if this is retroactive as of the end of the year or as of last friday i don't know if you saw our last guest suggesting that might be the case >> reporter: i think it is important to know all of the details are still worked out you hear the talk about the details are influx and the programs could be shortened in size or duration means they might need to have that tax window longer so they can shore up more revenue and have the program duration shorter all of that is on the table and ultimately that will be up to congress in the next few weeks sdplchlweeks. >> i'm confused. a longer window opening up is that what you are suggesting? >> reporter: yes i don't think the decisions have been made. >> finally, what do you think will sway manchin one way or the

other and if he is the man in the middle, what is the outcome? >> reporter: i think there is a real debate happening on the corporate tax rate he said since the spring that he thinks the top rate should be no higher than 25%. behind the scenes, krysten sinema is saying something similar to that. then there is also nevada senator cortez-masto says she not on board with the 26.5% rate as ways & means laid out she could want something lower i think the corporate rate will come into view and ultimately the size of the package, too we'll see. >> kayla tausche, i appreciate it thank you. it is really good to see her back we missed her. >> i don't know. she may have taken up water colors >> beautiful paintings behind her. >> i don't know if she wants to comment next time she's on.

>> joining us to talk about what all of these headlines from washington mean for corporations and for investors is don schneider. he is at cornerstone macro don, let's break it down in terms of the taxes corporations are paying >> sure. if you are a wealthy filer above $400,000, your taxes will go up. generally, it is the wealthy filers with a 5% reduction if you are earning below $50,000, you will see a boost in the after tax income the general pattern is rates going up at the top and even at the lowest end of the scale, negative effective tax rates. >> corporate rate will go up we know there is discussion taking place about this. maybe one of the things that gets looked over a lot is the pass-through corporations. they will take a big hit, right?

>> absolutely. that's something that, for example, president biden did know did not propose much on his plan the top rate through pass-through businesses could go up 13% to 16%. marginal rates that happens for a number of reasons. first, the plan would cap the 199a deduction the pass-through deduction which is 7.4% marginal a 3% agi surtax. increase in the top marginal rate and expansion of the net investment of 3% tax to pass-through businesses who don't pay. you add it up and 13% to 16% increase in rates for pass -- thr through business. >> there is a lot of coverage how there were more pass-through

corporations and managing to avoid taxes. is that why they went after this is because that's where a lot of money is now >> i think so. relative to biden's plan, the ways & means committee scaled back the corporate tax increases. for example, the guilty foreign international minimum taxes had 26.25% rate under the biden rate it is now 17.4%in the ways & means committee bill they scaled back on the corporate side, but $1 trillion of tax on corporations they scaled up on taxes through pass-through businesses. that left $3 trillion in the next decade. >> let's talk about the industries that is where investors are honing in to see if arenas will get hit harder one of the beneficiaries as you point out is the clean energy stocks what do you take a look and see with that? not all clean energy stocks are

equal with this. elon musk and toyota raising a ruckus or concern that the ev benefits that you get from this have to be from cars built in america with union labor >> yeah. that's right the bill through a variety of tax credits would generate or push revenue into clean energy across the range of sources of energy you know, that said, there are limitations. whether the content requirements or otherwise i think those have some chance to be worked through whether in the senator with negotiations within the house. it's possible that those will be addressed. i would say, of course, clean energy is one of the biggest winners from the tax perspective here in terms of the losers, you

know, corporations largely will see higher taxes with the 26.5% rate maybe some losers in the tech and pharma space businesses operating abroad with the intellectual property held overseas and will see increase rates abroad and the tax rate. >> and if none of the details are finalized yet and investors are thinking about making moves and trying to gain the system, what would you look at what is i ironclad >> you know, it is interesting of the bill right now as it stands, it is -- they are spending more than $3.5 trillion which is above the $3.5 trillion sunday by the budget they have $3 trillion in offset. $700 billion through drug price

negotiations andi savings early in the show, you talked about limitations that sinema and manchin might put on the bill let's say they scale back to $2 trillion they already proposed $2 trillion in revenue. there may not be much scaled back on the tax side maybe to $1.5 trillion which is the upper bound for senator manchin, reportedly. there is probably not a significant amount of changes that will occur. the corporate tax rate may be scaled back to 25% the foreign international tax could go from 17.4% to 16.4% which is where it would be under the republican tax bill under 2017 on the individual side, you might drop the 3% a dgi surtax. you will not see major changes

on the tax side. >> in terms of retroactive, most people say you don't do retroactive tax bills often. it is not unheard of new jersey did one last year clinton tax bills were retro retroactive. i have seen estimates they lose out on $50 billion or more in revenue because people made changes ahead of time. what do you think on the question of retroactivity? >> that estimate seems a little high to me the entire provision, for example, capital gains and raising the rate from 20% to 25%. top rate of 28.8%. that is retroactive to september 13th the entire provision raises $123 billion. i would be surprised if retroactivity was that large from the perspective if you consider the democrats goal, the goal is to cushion

equality and generate revenue. and to discourage changes in behavior by having a retroactivity, you will not make investors rush to realize gains now and generate revenue that curbs active you'll generate revenue that curbs the social program there is a lot to be said for retroactivity. >> thank you for your time >> thank you for having me >> so we'll curb inequality. that's good to know. coming up, some of the morning's top stock movers before we head to the break, we are watching peloton the worst week for peloton since may. zoom now 53% off the october 2020 high and only about 2% from its 52-week low.

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well km come back. we have some red arrows. the dow indicated down about 90 and change the nasdaq managed to come all the way back yesterday the dow shaved some of the biggerlosses off by the end of the session but is giving some back as i said, the s&p down 13 or so i see at my club once in a while. you know fidel >> yes >> he's on the rower i actually yelled at him and

said, thanks, i hope you are happy. he said it is not his fault. >> i haven't seen him in a while. >> you've got to be nice to him, especially if he's spotting you. >> shares of diamondback energy rising the company's board announcing a $2 billion buy back and also planning to accelerate its plan to 50% of cash flow in q 4 it has been a tough week for utilities. down for the third week. check out this morning, down by about 4 cents. when we come back, fed chairman jay powell ordering an ethics

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stock futures are flat but on track to turn a positive week we have a break down coming up on the trading session >> fed heads in hot water. several fomc members reveal large investments and stock trades the meeting about about booster shots and are they needed. we'll ask dr. scott gottlieb and preview the meeting.

the second hour of "squawk box" begins right now zbhoo morning. welcome back here on cnbc take a look at u.s. equity futures as we close out the week the dow looks like it would open down by 37 points, s&p looking to open down about 11 points a couple of headlines. a vote from the fda panel not biepding on the fda, we'll have former fda commissioner with us. other countries like israel and the uk have decided to initiate

those. united airlines says 90% of its staff has been vaccinated. 95% of its ground staff. they were the first to say they would require vaccinations for its employees. a u.s. steel mill plan in the united states. it will be located in the u.s. with construction next year aiming to begin production in 2024 steel prices are now quadruple where they were in the beginning of 2020. doesn't this start the beginning of a re imagining in america think about all that might come back to the country as a function of covid and the supply

chain issues it could be a big boost for the country. >> probably like a newcor mill >> assembling things and putting pieces together. doing that right now they have to get that back over more quickly i think that does have people thinking down the road willthis be a more permanent move yesterday, we talked to people outside of the l.a. port they have a six-month out look they don't see things getting easier until at least after the chinese new year >> i've read a troubling piece in the journal i've always said we've got to cherish pharmaceuticals and what they do.

i think we are importing some of the price control from abroad saying we can't charge more than that in this bill. >> it is a big issue for pharmaceuticals too. >> political raid on future coors. if there is one thing as far as supply chains that we do here, great drugs and vaccines to save the world, basically, and in one of the revenue tricks in this bill is $500 trillion. supposedly saving $500 of the $2 trillion the journal's take is that this is going to be -- it is going to affect innovation.

i don't know if you believe that but i don't like it. >> i have one view that the government should be able to negotiate prices we've said the largest buyer of drugs in the world that is just supplies. >> did you see this? >> the issue here if you are the 800-pound gorilla, you go from having zero power to all the power. i don't know how you find some middle ground with that. >> i've heard it so many times they've cost a tenth of what they cost. how many drugs are you seeing invented over there. >> you can't see the price

controls >> you like to see places pay less than we do. one out of 10 succeed. it is a couple billion let's get to dom >> it is fascinating i've got three stock movers with the biggest mover so far this morning. invesco reportedly in talks to merge. the deal is not imminent but would be one of the biggest in recent memory. managing roughly $4 trillion in

assets in the business overseas and roughly $1.5 trillion. shares of diamondback energy the company's board announcing a $2 billion stock buy back and accelerate the plan of about 50% of the free cash flow. diamondback shares up 3.5% we'll share with take two interactive. off one and a quarter percent off by analysts who have cut that stock and the price target to 150 due in part to those factors given things given sentiment and content in video games with more

of a focus that could all have a big affect watching what china has done with the crack down. that one move not as many people here have been outraged about. some saying, i wish i could limit my kids to only three hours a week too >> maybe it is not as much of a focus but the idea that they are taking it out of control of the individual there here they are valuing our rights to a certain extent. if there is publishing, you put

the rating on there. >> i don't think we'll ever see that >> i definitely try to regulate the amount of time my kids get that's my conscious decision >> i'm the nannie state. not them >> right i get to choose. in the meantime, chairman powell ordering a review steve, this does sound like a reaction. >> amid an outcry owning and trading. the look from the cnbc found three officials that helped assets of the same time the fed itself was buying. between $151,000 to $800,000 of

real estate investment and mortgage backed securities the same acts as dallas fed president said he would take a spokesperson told us to, quote, make sure investments comply with what is permissible under the rules. fed chair jay powell ruled with those bonds just a small part of the portfolio. the fed last year bought $21 million including from the state of illinois. a fed spokesperson told cnbc that they had no say over the

bond purchases and investments in the family trust. saying the holdings did not violate the rules. holding $1.35 to $3 million in corporate bonds while the fed last year bought $46 billion in corporate bonds. barkin declined to comment they raised the question, should those rules ban the trading the fed bought after it traded those to purchase. they should be careful to avoid anything that might convey the appearance in the interest or public interest. telling cnbc if such fed actions are not against the rules,

perhaps the rules need to change only highlighting that the policies are deficient in response to our questions saying the fed chair ordered rules that allowed holdings. >> this does get to the debate that said, look, we want those from the rulers of the market. you will no longer lure people in and there for have large holdings as a result i understand the concerns making sure you can't influence things but is there some middle ground that can be found?

>> let me ask you something, do we want a retail reporter that knows the business thinking back to those days when you were the retail reporter >> and you were the reporter across from me >> but as you were a retail reporter, would you have held retail stocks? >> no. we don't own individual stocks outside of comcast but we are allowed to trade indices or hold other things >> fascinating that you brought up fixedincome

they actually buy them the light went off, they can control that stuff that's awesome it doesn't move around a lot >> mostly for income for coupon cutting and stuff like that. you are not thinking about whether those will go up or down i guess they shouldn't do anything then. >> i think you guys are both making an important point. if every fed official starts off. if they own any mutual funds you start there, where do you go it looks like powell has an interesting structure. that is interesting in and of

itself apparently blind trusts are complicated. i need to read more about them it doesn't look like there is a solution look at what they decided to do. by the way, he's an academic >> you got mad at me last time when i made a joke like this it's like, you can't own anything you can only own cash dollars. no, i don't want those that's what they are stuck with. the thing that they are debating >> if you take this to extension, should senators and leaders not be able to do the same thing >> yes 100% they are writing all the legislation. >> you can't hold dollars either what does that mean? >> they have to give everything away >> even the academics in the

senate with big holdings are millionaires at this point >> those rules are not even in the league the senate and the congress has a lot more to do warren wrote that letter of the holdings while senators themselves seem to be able to do they can do insider trading when i looked at their rules. making sure they can benefit themselves >> you leave public service and buy a $15 million house in martha's vineyard. where do you draw the line and cash in. do you see any expresidents that aren't worth $100 million? >> hold on we can talk about how people make income after they leave office that's a different conversation.

the question is whether you should be allowed to inside trade. >> congress is not sensitive to how any of it looks you need to do more because of the muni bonds and what they

would buy. they didn't change and tighten up their ethic's rules that's where they appear to need to go now. >> politicians look pretty well now. >> how many houses does biden have >> what's your point >> thens that a problem. >> let's go across the board, no one can do anything. >> right if you want to own mutual funds, great. good for you >> mutual funds, like an s&p they can't have an s&p fund. they can juice the s&p they can debase the currency or not. >> at some point, you have to

decide when you are legislating things that will effect the stock price. >> i try to see the good in people >> you don't see people taking advantage all the time in the grossest ways? come on. >> i've made my point. the guys making the laws are probably benefitting the most. coming up, when we return, the lacrosse championship streaming here this weekend on peacock. we'll talk to the lebron james of lacrosse. and dr. scott gottebli talking boosters in today's fda meeting. it is a big one. sales are down from last quarter but we are hoping things will pick up by q3. yeah...uh... doug? sorry about that.

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coming up, should you sell your stocks before stock hikes go into effect robert frank will have that

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welcome back lacrosse has been the fastest growing college sport and no signs of slowing down. this weekend, the college championship is airing on peacock. joining us, paul rabil, the superstar of lacrosse. thank you for being here today it is great to see you my 10-year-old son started playing lacrosse last spring he loved it. he's taking clinics this fall. i can't believe when i walk downtown how many kids i see with lacrosse sticks sticking out of their bags. >> it is growing thanks for having me we think a lot about the growth of the pll we got full membership

recognition on the ioc on the path to the 2028 games it is a great time to play sports and it is the oldest sport in north america >> how big is the audience thos tell the story of le cross the bigger piece is 100 million casual sports fans it is really about timing and when your season is. when your viewership is with the streaming. our partners at nbc sports helping us to utilize and go after the sports fans.

>> how do you time out and make the most when maybe they don't have other things to watch >> our pocket is the summer months before the nfl begins our championship is this sunday. we will go up against the nfl 1:00 games but we are right at the end of the season so we found that sweet spot in the sports calendar. >> in terms of going after the fans i know you broadcast differently, it does add another

dimension. >> the viewer has all the power. you have to be where they are. microphones on the field we implemented sports betting. now including live odds that increases the interest in the game and bringing in those fans to bet on the game and be more active >> i think you got joe's attention. he may watch if we can bet on it you have a window with nbc universal. what can you say now versus three years ago. >> now we have a track record of strong viewership. we are up 30% from 2020 and up 40% from 2020 to 2019. we took advantage of the times during covid and we were the first week to be out

we were able to introduce ourselves. the bigger things networks are being looing at are being able to operate with peacock and the olympics and other platforms driving user acquisition through sports if you can get someone to tune into platform for 55 minutes plus it is different where you need to have 3.5 to 5 million viewers. thinking on media rights, sponsorship and sports betting and that's the umbrella that sits under us as a league. >> thank you you are by far the person my son is most excited about us interviewing in his entire life.

so thanks for being here >> i appreciate you having me on i appreciate the younger kids. they probably watch me on my youtube channel. >> you can catch that game coming up this sunday on peacock. >> pretty cool, becky. i'm terrible at lacrosse always still to come, you know you've got that big stick it is hard dr. scott gottlieb will join us to discuss booster shots and time lines for approval. we'll get some important information. congressman kevin brady on taxes.

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should you sell stocks or property before the tax hikes? that's the question. it all depends robert frank joins us now. i watched you on worldwide

exchange with dom. it may be too late maybe you should never do anything based on taxes. what do you think? >> that's what the smartest are telling their clients right now. you should never do anything based on the tax rates the president wants a rate of 39.6%. the house wants 25%. president biden announced his capital gains tax should be retroactive to april the new house plan gives a start date of september 13 advisors say some clients right now are racing to sell businesses and stock and property hoping for an even later start date after passage of any bill we might get others are looking at all of

their sales between april and september to try to figure out what their tax rates will actually be. all of this matters to the government because of the analysis if the capital gain tax takes effect on the 21, 2022 and if they sell before hand. revenue would be $50 million or less perhaps they can sell and still get out ahead of it or if that retroactive date is different from right now >> that's so great, robert we see what you are thinking about doing so we are going to change the rules retroactively would they really do that?

we hear a lot about fair fair is that fair change the rules so you can't do anything about it? >> the supreme court ruled in 1993 under the clinton tax increase that retroactivity is constitutional we saw it in 2012 that there was massive selling ahead of that and increasing revenues going forward. they don't want to do it again they want all the revenue. >> i wasn't talking the constitution we use fair. if we are going to use it. not necessarily constitutional it has been this way you count on that.

you make your plans about the future, nestegg and retirement you might want to deal with that some of the things i was thinking through with my family. i had held it for a very long time when something multiplies six fold, you have to consider capital gains on that. >> a good move thanksrobert

>> also with us, the chief investment strategist. >> you've been listening to this, have you been selling stock as of last friday on the assumption that we could have something be retroactive >> no. i haven't. we haven't asked our clients some of our clients have pension funds that are not taxable we have not advised our clients to do that but it doesn't seem fair to get back to joe's point.

i'm not sure $50 billion will make much difference when it comes to the trillions needed. with this 10,000 page bill, lord onlyknows. >> what are you going to sell and when is this retroactivity

in place we are not talking about them going to 43%, which is the biden proposed plan going. we don't think this has material impact i'll also say for the administration trying to raise $2 trillion in revenue that's what the foundation found. about 78% of that, $78 billion of that is actually in capital gains. it is important but not in the grand scheme of things what is important is what happens with the corporate taxes. that's huge there. this could have a more material impact on corporations the one i'm watching closely is the tech sector. you think higher capital gains

taxes the third one is the tax on foreign income. that will go up as well. tech is the most exposed i wouldn't mind reviewing some of those gains there in anticipation of this >> the idea that the corporate tax rate went down initially under president trump, you saw the market just rocket do you expect the opposite to happen if it were to be approved >> i think part of the reason why the market rocketed is that

it instilled business practices. there is a chance and a hope to spur more spending, which is what you are hoping by lowering capital gains tax. >> it didn't though. for the most part it didn't. maybe on the margins >> it didn't there was a trade war with china that maybe impacted that as well as anything else you can think of my own opinion is really on the impact of business confidence to be the most important. what is shapg up is not

necessarily the beneficial environment on capitol spending. >> they are playing the music. we heard cash is trash this week do you stay completely long in this market or do you sit on some cash waiting for something to happen. >> i think you own companies that are already cash rich who can distribute their cash back looking at lower distributoring. >> once you get that, you convert it to bitcoin? >> no, no. gold, maybe. when we come back, dr. gottlieb will join us to talk about the fda meeting, boosters, > vid in schools and classrooms. >>and representative kevin brady here to talk about taxes we'll be right back.

breaking news now, passengers using united may face delays all flights may be subjected to

a ground stop. it isn't clear what the issue is united tweeting that they are trying to resume that as soon as possible we'll keep our eyes on that. unique and dare i say scarey >> is it a computer issue? >> i do not know we'll try to get to the bottom of it. >> download that apple iphone fix. >> hard to know. futures down, nasdaq down. s&p 500 down about 10 points on monday, a special discussion with water.org and discussing water sustainability water is the number one

experience for brewing beer and more also supplying water globally. i know joe will want to talk about still water. make sure to tune in after this, dr. scott gottlieb you a data analyst or something? an investor in invesco qqq. a fund that gives you access to nasdaq-100 innovations like ai statistical analysis software. how am i gonna do? become an agent of innovation with invesco qqq. ♪♪ if you're 55 and up, t- mobile has plans built just for you. become an agent of innovation with invesco qqq. whether you need a single line or lines for family members, you'll get great value on america's most reliable 5g network. like 2 lines of unlimited for just $27.50 a line. only at t-mobile. this is hannah, she's a posh virtual receptionist

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discuss vaccine boosters joining us now, dr. scott gottlieb, former fda commissioner and serves on the board of pfizer. author of the new book, "uncontrolled spread" out next tuesday. would you be speculating if i were to ask you to go behind the scenes at the fda and cdc and biden administration and just explain exactly what is going on and where the parties are in terms of disagreeing with one another on boosters and what is causing it and what finally happens? >> there is general concern in declining effectiveness of the vaccines for those vaccinated a long time ago, especially older

patients there is data out of israel especially on older people vaccinated eight or nine months ago. that is compelling the pursuit of boosters. the fda commission is being asked to opine on that the evidence of safety coming out of israel seems to demonstrate the safety profile of the vaccine, the third dose is consistent with the second dose you would conclude that it is safe or within the bounds of what we expect from the vaccine. the second question, the data out of israel published, you saw a marked increase and increase against disease now this was over a short period of time, you would conclude evidence of

effectiveness. the advisory panel is going to go beyond that question and explore which groups could be benefitting from these boosters. you start looking across the age spectrum there is more benefit from older to younger because the younger hadn't been administered until more recently. the immune decline we are seeing in the studies and evidence of breakthrough infections is generally among older population do they look more expansively? i think they are likely to do the latter and explored by the cdc when they take up this question >> would that mean the fda would not be reversing their stance.

we are hearing these different agencies are not in agreement with each other. why is the fda where it is right now versus the administration? >> the public health debate is whether or not the vaccine is doing their job? the rising concern is breakthrough cases when we criticize the data, we should ask ourselves why the cdc isn't tracking this. the evidence on whether or not those breakthrough infections are creating severe disease. it doesn't seem to suggest that. it suggests they are holding up greater than 90% effectiveness with respect to the disease, there are studies that suggest a decline in individuals

some suggest it could be as low as 65% so the data is mixed there the question is should we be administering boosters will they protect you from dying or getting severely ill. in older population, there is evidence they could provide additional benefit to the extent we are seeing rising breakthrough infections and severe disease, that's concerning based on age and circumstances. how they would come out of that, i'm not sure saying boosters are recommended

for certain population leaving it up to define it based on age. >> any consideration of the moral request about a third shot for a wealthy country compared to much of the world at zero shots. is that part of this calculus? >> it is coloring the discussion >> this is a small number of vaccines in terms of the up tick among older individuals in the u.s. the biden administration already purchased 400 million extra

vaccines that is not going anywhere the administration is going to hold on to hundreds of millions as a health against unknown unknowns if another variant comes along, they'll want to quickly be able to use those >> dr., thank you. the new book is out tuesday. "uncontrolled spread" out tuesday. when we come back, congressman kevin brady will join us to talk about the budget an taxes >> and ariel investments ceo will join us to talk more. we'll be right back. this is the card built for... ...real life. (dad) she's gonna be a drummer. (cashier) yeah she is. that's gonna get loud.

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all tracking for positive this week. for the dow, this would be the first up week. the next question about vaccines, do we need booster shots. set to meet today. we'll get you all the details ahead of that meeting. and tax increases, they are

still far from a done deal texas congressman brady tells us where he sees the hikes going next the final hour of squauchl begins now good morning and welcome back it is friday joe along with becky monday, i feel it. >> monday already? it is only friday. >> i know it is coming >> enjoy the moment. >> equity futures are down.

forecasting maybe at some point. the predictions we got were nothing strat fearic in terms of spending investment firms to merge with state street's asset management. those sources say a deal is not eminent and might not happen at all. managing $3.9 trillionwhile

invesco oversees. >> booster doses and debate over whether the booster is necessary. that vote for later this hour with all of those details. a few moments ago, we told you about a ground stop. we got word the situation has been resolved. experiencing a technical issue

on united flights. sounds like a tv thing we are experiencing technical difficulties it is working diligently to get passengers to their destinations >> always in the back drop, you think safety. your mind goes all over the place. >> our senior market commentator joins us now as we get set to head into the fall

>> i would say it is fair to say risk appetites through august. chasing record highs really huge volumes and short-term stock options really mimics what is going on with a whole a slow down and keeping the general shape and up trend we slipped back to where we first got to in early august we've had this pattern in the third week of the month. we've had a little dip and come back a big one today. look at stocks versus bonds over the last few months. it shows you a give and take you see in general, they've gone

up in the same direction that's been a little flip this year, which is stocks going on and prices going up. a little more than before when inflation is perceived as the biggest risk this helps huge growth in the s&p 500. >> finally, reaching the state street and that part of the asset management exchange remains very strong. we did have a little backsliding. they've clawed their way back

too much deals shows you a little more discertainment where they are hoping to place their bests. >> i know they are all worth just 40%. >> name by name where people grabbed on come out of the ones there they've been very mixed. i think half and half in terms of the first day price >> what do the investment bankers start thinking is it like hurry up and get out

to market. >> i don't think we know the answer it feels like between now and christmas more than a couple we'll see. >> good to see you when we return, what is next in the fight over taxes and spending democrats higher rates on businesses and the rich texas congressman kevin brady. natural gas up now more than double thd year. stay tuned to squawk on cnbc

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way. off about 16 points. i should say six points. the house budget committee next in line looking to save for the climate and the president laid out his case >> over the past 40 years, wealthier have gotten wealthier. corporations have lost a sense to the community where is it written, all of the tax breaks and code go to the top. i think it is enough i'm tired of it. >> joining us now, texas congressman brady.

we've had some individuals on earlier saying that will probably come down they've speculated it might come down to $2 trillion. taxes will remain in tact. those benefits to fill back better with the expansion of the safety net the wealthy has been fact checked 100 times. i don't think we've ever seen a

government spend so much money to kill so many jobs and drive inflation. the greatest expanse of a welfare state in history coming out of the ways and means, there is not enough spending one of the funding measures is the new control. it looks like they won't have the votes to do that i think they'll be searching for those in the house that's the huge question here. all of the talk there, the

vantity project. flying into space. totally unscathed and on the backs of corporations. what happened? there? >> they still do some damage we have the most aggressive tax code secondly, it became more projp progressive after the republican tax reforms. on one hand, higher rates and

making no sense but they give them a bunch of breaks too in this bill, taxpayers are going to pick up the exiting cost 90% of the paid medical leave. the green new deal making up to 3,000 the salt cap, we offered and said, look, let's stop all the salt cap and take that $300 billion and give it to the working poor democrats unanimously voted that down, which seems to me, crazy a lot of subsidies a lot of taxes there's some on main street small business coming out of a covid, why we

are taxing any at rates worse than china and the rest of the world making no sense at all >> do you think it will be retroactive on the capital gains increase we were talking about what fair is it may be the most aggressive. we heard it is not fair. do you think it is fair, instead of buying a cool car, designer clothes and living beyond my means, i decided to put my money in long-term assets and save for my retirement. why is that fair >> it is not not only that, economically, it's done.

back into growth, it makes sense for people like that to funnish people who take that longer view with that small business, family owned farm is really damaging for working people these are the jobs and growth we want you see this obsession with taxing villains including the wealthy and corporations it is the growth, paychecks and middle class families and workers who get hurt in all of this >> you are watching it play out here talk about the original -- i know you weren't necessarily a fan of the infrastructure. a trillion dollars that is not

the length it is the length i don't know how they came up with those nine middle of the road democrats it is coming up in days. can you give me an idea of what you think will happen? that infrastructure deal, will that pass? what is the other one going to look like? will something pass to the tune of a trillion in tax hikes >> if those have to carry the tax and spending bill on their own where they are struggling right now. in the house where they are linked they'll not give up leverage

their goal is to tax and spending bill. whatever gets to those votes in the house, that's what will happen can it happen over the next 10 days, she's bringing us back on monday i think there is going to be intense arm twisting on the democrat side. >> knowing what they are talking about, not going along with it the way they did saying the same thing about lifting the salt cap will they fold on that too what will the final out look be. we live in new york and new jersey what will happen. >> those are dug in on the salt cap.

it is a huge amount of money they have to find revenue somewhere to pay for it. even progressives think it is outrageous to lift that salt cap. so i think my sense from the ways and means committee are members are new york, new jersey and california are pretty confident they'll get a repeal of some kind how they drive that through their own conference the criticism that comes with new tax breaks for the wealthy joe, i think it is going to be a tough 10 days overthere. if not why do it?

you are not going to raise nearly what you are trying to raise. can they do that and will they do that? >> more and more, there is no discussion going back to april, the discussion for the date on the increase there is chatter obviously about doing it now in september, some date around here a decision hasn't been made. they picked the lower right and broadened it the rate seems lower i wish i had better answers for you here retroactivity is still in the discussions here >> do you support another term for chair powell

>> speaking about the incentives and the inflation going on they've been pushing congress to spend more and more. it doesn't address these issues. i'm asking his leadership likely in this. >> is there a mandate for kreg res to get a vaccine or just private companies with over 100 employees. i don't think there's a mandate for congress postal service, no mandate teacher's no mandate do you understand how that is applied? >> i don't this is so politically driven. it is hard to know who is in or

out. i don't believe it is for congress >> why why for private sector and companies but no mandate for congress do you understand that >> i don't understand a lot of things it is the do what i say, not what i do under cut. >> we have a new mask mandate in congress in the capital but based on science but apparently only applies to the house side, not to the senate. apparently there's a scientific barrier between the house and senate we ought to be focusing on defeating, getting more people

vaccinated and when you look closely on what the spending and tax bill is, you'll be more discouraged about where the priorities are >>. >> if you look at those hesitant to get the vaccine, it is disproportionate by your side. what do you think that is? >> at the end of the day, frankly, i've had not much luck convincing individuals to be vaccinated i think there are several reasons. if you don't trust government, you don't trust the vaccine. i think broadly, that's the case i do think, to be fair, candidate biden and harris didn't help things when they

planted those first anti-vaccine, can you really trust this, we don't that didn't help the approach governor hutchenson in arkansas really urging them to talk to doctors and have conversations is probably the best way to do this. >> you don't believe mandates are the way to go? i'll say politically, watching, hearing you blaming the president and vice president saying how does that make any sense. there was a president prior who wouldn't wear masks and the like and worse i'm sure people are watching saying, this makes no

sense. i don't think it was helpful the other question here, you've got to admit, look, i'm vaccinated i'm urging others to do the same getting out as fast as you can there will be real problems when you mandate a nursing home you are going to lose nurses and health care workers that won't get vaccinated at a time where we are at the edge in health care work force.

it is not just the case of do you want mandates but you've got to be smart about how you do this there are real consequences in health care. that's what i'm saying >> did you get invited to the met gala are you allowed to accept a ticket to 0 go to that is anything going to come from that >> i have no idea. that is a different world from where i'm at >> i didn't understand the chick-fil-a dress. thank you. >> when we come back, details coming later today on key booster shots. >> a market voice you can't afford to ignore john rogers talking about what

he's seeing right now. coming up, we have a special segment coming up. segment coming up. and in bef with live better u, my 'what ifs' were erased. ♪ ♪

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>> welcome back to squawk. a new steel mill to come as demand is booming prices have roughly quadrupled the last sears store located in illinois getting ready to close for good the company telling cnbc the store will shut down on november 14 sears holding filing for bankruptcy and then acquired by a company called transform co. still listing 35 stores including the store to be closed in october the sears store. one of the last iconic great companies was. i'm trying to figure this out.

this federal mandate executive brands as shameful as it is think about this great iconic company. >> don't change the subject. separate from the executive branch house speaker said in april, you can't require people to be vaccinated not what we can do so it is all the agencies of the executive branch >> back to andrew's thing. this is a sad thing. migrate grandpa used to have the catalog. >> it has been bad for a long time they tried revamp it >> it is one of those moments you've got to take stock of what is happening >> you remember rainman.

>> k mart. you remember when he said? >> what did he say >> k mart sucks. you have seen any movie. any references animal house? >> i don't have a memory like an elephant >> experts taking up pfizer's application later today. "squawk box" coming right back the pursuit is on.

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welcome back to "squawk box. in our headlines intuit has struck an arena naming rights deal with the clippers they are building their own arena scheduled to open in 2024. it will be called the intuit dome and is worth half a billion. the latest consumer sentiment coming at 10:00 a.m. eastern time expected to show a slight

increase manchester united is kicking the financial forecast down the road they did report a smaller squaurterly loss compared to a year ago it says certainties prompted it to withhold for at least now >> you've got an update on a different united >> united airlines says 90% of staff has been vaccinated. approximately 95% of its u.s. management staff united was the first u.s. airline to say it would require vaccines for employees >> fda advisors is set to meet today for application of the covid booster shots. what would they be considering here >> this meeting just getting under way today. specifically, they are

evaluating the application for a third shot of its covid vaccine for people over the age of16 hearing updates about the vaccines where they will vote whether to authorize or recommend to approve this third dose whether they'll need booster shots and for whom this is just a recommendation deciding on the approve yam and

when these may be used saying when should they be indicated? suggesting we might hear that too based on the information presented. a lot of controversy from some of those people speaking with the fda have said they don't think they'll need booster shots. a lot of people watching closely how this will work out >> from places where they've done more studying like israel or made decisions independent of that >> they took into account studies that have been available worldwide. we don't know all of the studies they have or to what they were updated or being looing at with this letter. we saw some new data from

moderna from the phase three trial looking a year out that could also add more than they had to look at in terms of the waning and the effectiveness of the vaccines. we'll see when they talk about it today and how these outside experts talk about it as well. the a the end of the day, only focused on the pfizer booster for moderna and johnson&johnson, it will give us an idea of how they look at it more broadly >> if these people have made up their mind brz seeing all the data, if this was made before two days ago and after the scientists there had made up their mind and just looking over the science of that.

>> a lot of people were shocked saying we don't need booster shots those are outside and unusual. one also knows that these are long time regulators taking into account and really at the end of the day we'll have a vote and those are not at the top of the fda. at the top, the acting commissioner where we'll see them make the decision >> you told us quickly about the number of people who have gotten these shots. a large portion who don't necessarily fit in the older age category will it be more difficult to get these shots a week from now or whatever the cdc decides if

people decide to walk in a cvs to get one >> if you are not immuno compromised, it is not recommended for now prks but for them, we expect to follow them >> market value plays in the minds of the reopening process we'll talk about it. joining us live. here on cnbc

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we've spoken about the value versus growth debate he says there is less value to be had in markets but less doesn't mean none. joining us now, john rogers, chairman and co-ceo at ariel what do you do >> i'm finding a lot of opportunities out there. it has really been exciting times. they are selling at 40 to 50% discount several of these we've been adding to and finding these great new positions. >> like? >> well.

thanks right now, one of our cheapest stocks is adt. the security firm. they keep homes safe and businesses safe. security is important. we have a brand-new partnership with google. they have a 50% discount there is a lot of optimism there. >> before you go on, what do you think the upside is. the way now, why is this trading at $8.15 why? >> we think the value is around $15. one of our good friends is a major shareholder. they are spending a lot of money to bring in new customers.

they've made their profits less than we would have hoped to see. we think that investment spend will come back very power fully. and this google partnership. people got excited about it. it has taken longer to roll out. that is building and will be a powerful engine for growth in 2022 the future is quite bright for adt. >> fair enough what else do you like? >> another favorite right now is adtel. we have a severe shortage of nurses and major shortage of doctors. they are one of the key primary companies to help train new doctors and nurses throughout the united states. extremely cheap. over 40% discount.

a new ceo who we think is going to be dynamic and help us get to the next stage there for profit education has been challenged when you think about health care, that's something really important to our country today >> john, that's a stock trading right now at $38 if we were to have this conversation, i don't know about your tiemg, 12 months out or a year out, where do you think the stock should trade >> it is around 40% discount the kind of company they've made a major acquisition in online health care. also selling off some of the businesses that don't fit. they'll take that cash flow to pay down debt. it really has a bright, bright future >> when you say something is off 40%, is that 12 months out or much farther out >> that's our current thinking we think if someone was to come

in and buy the company today, they would buy it for the private market value we look at the discounted cash flow analysis to come up with our pmvs and parts and get a sense of what somebody who really either private equity company or strategic buyer. that's how we come up with those discounts. >> what else is on your list >> we think in this recovery play, you guys were talking about manchester united but at the same time, you know, you talked about the arena in l.a. where they're going to be getting over $500 million to have the naming rights when you were talking about that earlier. a kcompany like manchester unitd world class soccer franchise, a lot of value there it's been harmed as you guys mentioned earlier because of the covid situation, and they're withdrawing their guidance we think that long-term people will come back and support major sports throughout the world. our other favorite that we've

talked about prefrequently overh last year is madison square garden entertainment we just think that people will be back in the garden loving sup sports the ratings what's happened with football already is higher than expected we think that madison square gardens is doing better than expected more advertising coming on and more sponsorships because of the online gambling that's become an important part of our country and not to mention the billion 8 facility they're building out in las vegas, the sphere is a fabulous exciting property it's going to be state of the art, every entertainer in the world is going to want to be there. we think it's something that's truly special. we had a chance to get a hard hat tour it's going to be the next generation of entertainment you'll be able to see in that

sphere jim dolan is a true expert. >> is there anything you've rotated out of that's worth mentioning >> we've really -- we actually rotated out of our noles position, it's a technology company that has gotten quite expensive we thought, and not as well-positioned for the future risk there having a lot of their business with a couple of key clients. >> john, it's great to see you as always. >> thank you >> thank you >> thanks, andrew. let's get down to the new york stock exchange, check in with jim cramer before "squawk on the street" gets going jim, with e spent a lot of time today talking about the tax implications of what happens you've been talking lately about september how that can be a volatile time when the market turns. first of all, do you think any of that got affected by you and others talking about that trend maybe changing things a little bit? and then second of all, what happens as we hear more of these details of what they have planned for taxes? >> i think it gives people a reason to sell, a little

self self-f self-fulfilling prophesy it's really 20 yeesars in a row basically that it's been bad starting today some people were trying to get ahead of it this week. when i listen to anything that comes out of washington, all i can think of is there are people who are worried. washington is no longer any source of solace we didn't even talk about drugs today. there was a decision bottled up in the house about maybe we won't tax them more aggressively or go after them more aggressively look at those stocks, becky, those go down every day because of washington. i find the groups that are being challenged and every time we hear something that's bad we might think it was retroactive. >> joe did bring up the drug companies a little bit earlier i think there's an op-ed in "the wall street journal" today just questioning whether it will slow

innovation if you have us kind of negotiating drug prices, if you have us putting pressure, and there's also the international taxes that will probably catch the drug companies along with other sectors a little bit more. how big of a concern is that especially when you look back at how amazing it is that we have vaccines and how quickly that happened. >> this is one of the best industries we have, and you could easily look at how really poor europe is, how bad china is we don't want to mess with this industry this industry is great, and i don't know why we periodically decide that they are the enemy yes, they put through price increases, but frankly all the innovation is here why would we want to stifle innovation why do we have better innovation because we allow our companies to make a better return. i don't think that this is -- there so many industries like hedge funds that we should tax, but drug companies jeez, they're killing it in terms of how good they -- look at what glaxo did, vaccine

company versus what pfizer did i mean, pfizer needs that -- pfizer did an unbelievable job, i do hope, by the way that they get for older people like dr. gottlieb said some exemption, but pfizer's done a remarkable job moderna, these are american companies, i don't know why we're not singing their praises every day. >> would you be a seller >> bristol-myers, i suspect it's going to go even lower it's a great american company. j&j's off eight straight points. j&j's fabulous so i'm kind of tired of them picking -- pick on somebody that doesn't really help. >> right >> these companies have been fabulous. >> if you've been watching what's happened the last 18 months or something, if you were a skeptic of the big pharma companies before, you know, maybe rethink things anyway, jim, thank you we'll see you in just a few minutes. >> thank you. some top stocks to watch on

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more than a half hour until the opening bell on wall street.

dom chu joins us now. >> let's start off with the biggest losers in the premarket trade for the s&p 500. that's transportation rail company kansas city southern it's now got a deal here to go with canadian pacific as a merger partner, but canadian national railway is up in the premarket 2.5% they are going to abandon that deal and resume their stock buyback plan they've got about $800 million left on their preauthorization from last time around. and then manchester united smaller than expected loss from the same time last year. revenues are better, but they're not giving any kind of guy idane for the quarter or the year. those shares are down about 1/10 of 1%, better than they were an hour ago and as we do in this hour, a check on the most popular tickers on cnbc.com from yesterday's full session we know that the ten-year note yield was the number one let's check out some of the other top ten. we do have some moves here in palantir, amazon and gold futures as well.

take a look at those these other quotes are apparently a little glitch glity right now. the rest are on my twitter feed. >> have a great weekend. final check on the markets, they're a little weak but off their worst levels lacrosse, did he give any picks for -- >> betting >> yeah, i think he said draft kings. >> we've got to go i'm going to try that. maybe that'll work make sure you join us next week, "squawk on the street" is next good friday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber at the new york stock exchange, dow futures a bit soft, but still on pace for the first positive week in three. we're going to get index rebalancing, look for some heavy balancing as e head into the last official week of summer covid, boosters and the economic recovery the fda meets to debate allowing