information. >> got it. okay steve, thank you >> pleasure. >> steve liesman that's going to do it for us here on "squawk on the street. let's get over to t"techcheck" because it starts now. ♪ good monday morning. welcome to "techcheck. today tech tumbles as the september slide intensifies. our first set of corrections coming then, doordash ceo tony chu. later call it an inflection point. we'll talk winners and losers and new listings later this hour, john.

how does today's drop play. >> if i look at the heaviest wage to the downside for the s&p right now, what's contributing to most of the downside, you have name like microsoft and facebook you wouldn't think they have any real connection or exposure to big listing that you might tribute today's loss to. it tells me a couple of things one, this is kind of a general step back in equity exposure that we're expensing the big index names are getting hit. two, we are coming off a period where you've had a lot of outperformance by the big nasdaq stocks going into september. last year was the same kind of story, september 1st of 2020 you had a huge ramp in the big bang stocks. they were dominating

high momentum move then you had them come off that peek and you had a broad correction market. this time it was not exactly only faang going up. you had an outperformance sector it seems to me that's one of the reasons they're not behaving as they kind of shelter, a source of new money they were very, very inflows into things like the nasdaq etfs that tells you why the market is unbalanced and we're not getting rescued like we have seen most of this year. >> mike, keep our memories fresh. >> yeah. we're a little below i think it's one of the 4370 area in cash s&p 500 is what we were looking for a little bit below that. we're kind of knocking around that zone.

july, somewhat lower lows. so these are -- i think these are the kind of tactical touch points we're dealing with. still not at a 5% drop in the overall s&p even though a ton of the components of the index and the whole market have actually had much bigger declines >> mike, great setup thank you. way to start the hour. mike santoli we're going to bring in tom lee. tom, it's great to have you back this morning we've talked with you several time this summer about a narrative in which everything gets bought. but you also said in august, don't be a hero. so can we be heroes now? >> i think that markets are sort of seeing this gigantic wall of worry, carl. i know everyone's talking about the zbikovspillover like lehman. it's not as jumpy as it could

be i'm in the camp that this is going to be a really good buying opportunity. now, i heard michael santoli agree with him i don't think that means stocks find their bottom today or even tomorrow, but, you know, is the recovery that's only one year into over or is the penalt-up demand been exhausted? i would say no i would look at broad-based selling as incremental >> there's property in asia. there's obviously the trajectory of the pandemic, which i know you follow closely for others, it's about domestic policy risk and how the market absorbs the next couple of months in washington how do you think that happens? >> unfortunately washington is unpredictable. i know there's going to be a lot of headline risk

it's something tom block our policy strat jift has been talking about. unless there's going to be dramatic changes coming out of washington, the debt ceiling and the risks of a shutdown, while they're kind of scary and cause headline problems, again, i'd be sort of trying to make my lens, look a little further, and realize we're going through a lot of chop right now. number one, we're going to finish strong seasonally september has a chance to turnaround we're at a moment where everyone is seeing darkness and downside. usually that's when you want to be adding sfliesk tom, tell us a little bit about that and how millennials and your expectation for how millennials are going to be spending plays into that. >> yeah. i mean one thing we have to keep in mind is i don't think there's enough of a focus on sort of the deck graphic tail winds that are

being generated by millennials first and foremost, it's people ages 30 to 50 that drive economic growth. it's so inherent when you look at chase credit card numbers or any credit card numbers. these people are starting to accelerate because of millennials. on top of that, u.s. household wealth is $120 trillion. that's staggering. $2 trillion is being inherited per year by millennials. they'll inherit over the next several years over $120 trillion millennials are not only contributing to the economic overall growth, but their growth is growing too they're buying disruptures, and they're less interested in bonds. this is all great news for

stocks. >> it is, but are there any risk factors that you're watching, either if it's about consumer confidence or other issues that can make it less of a growth driver than what you're anticipated? >> plenty could go wrong the biggest risk is something that could cause the fed to have to take aggressive measures, and that would be inflation rising at levels that are uncomfortable. i just don't know what that level is i don't think 2% or 3% is sort after that kind of inflation that scares people and, of course, the second would be some sort of exogenous shock. that could be a commodities shock like if ill gets to $200, however, $200 today is not the same as in 2008, or some geo political event. there are risks. i don't think stocks are invulnerable they could always decline

dramatically, but they could rise for quite a long time >> tom, what are you learning from the way investors are responding to risks, particularly when it comes to riskier assets you mentioned crypto, which i know you have a lot of thoughts about. bitcoi bitcoin. what does that mean as far as what people might move out of or into or may not be able to move into anything if we hit a patch of declines like that? >> one of the things since the covid area, investors value liquidity 24rks-hour liddicty. i've found more willing to go to cash because there's less friction in terms of liquidating. bitcoin selling off to me is

interesting because i suspect it has a lot to do with risk off in in asia. they put their money into property and crypto much more than they do with equity i think some might be worried about, you know, impaired value. it's sort of showing you that people really value liquidity. >> finally, tom, you've coined a class of stocks which you'd like to call granny shots, meaning it's an easy basket given the background environment what kinds of names are still in that basket? is this an area where when you do decide to make a bet, it's going to be on epicenters, cyclical materials, that kind of thing? >> yeah, carl. i think when someone's constructing what they want to own, a big chunk has to be

compound earners, companies that can on an all-weather basis can generate a top line growth, and because they have a great value, they can grow earnings much faster names like nvidia, tesla, these are all strubl real compound earners. but when i look at the fact that the virus in the u.s. is really diminishing and that there's a lot of pend up demand, that's a tailwind for cyclicals and a great point is oil at 71 i was looking at this moining. when i look at capex to sales, the energy sector, it's at near 20 or lo that's an center that's generating significant cash return for shareholders, and it's not lee freflected in the stocks >> a great way to begin the hour as well. we'll talk to you soon tom lee.

>> thanks. >> it's just after 8:00 a.m. in vegas. don't worry. i don't have a problem tommy schu is going to be with us after the break doordash announcing alcohol delivery "techcheck" just getting started. it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. get ready for it all with an advanced network and managed services from comcast business. and get cybersecurity solutions that let you see everything on your network. plus an expert team looking ahead 24/7 to help prevent threats. every day in business is a big day. we'll keep you ready for what's next.

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got some vol it. dow's down 460 keep your eye on the nasdaq as well j.d., tesla, kla corp and nvidia, john. >> doordash today announcing an expansion of its marketplace offering delivery or pickup of beer, wine, and spirits. thousands of restaurants, grocery stores, and retailers, and in washington, d.c., will now have the opportunity to go to the alcohol tab and order beverages from various partnering retailers now in an exclusive interview

live at the grocery shop conference in vegas, doordash co-founder and ceo tony xu good to have you. >> good to be here. >> this is big this is a high-margin area in food and alcohol why is this the time >> for consumers, 35% of them are more likely to order from, you know, restaurants and takeout or delivery when the restaurant offers alcohol. for restaurants, they get a higher check, up to 30% and more dashers earn 30% or more as well it truly is a win/win/win. alcohol itself is a very

specific category with lots of regulation to make sure it can be delivered safely and great security and privacy in mind as well we've extended alcohol now from ten states at the beginning of the year to over 20 states, washington, d.c. as well and canada and australia as well, to delivering to over 10,000 storrs as well as a partnership with total wine and spirits. >> how much is it because the regulation loosened a bit during the pandemic i've seen some headlines in states saying, okay, maybe we have to adjust this based on the environment and the way things are moving, and what are the safety precautions you have to put in place to make sure 17-year-olds are not trying to get alcohol? >> you nailed it certainly in that question where safety is very top of mind it's why we even run tests on our own delivery system for years before we decided to introduce something like alcohol delivery

we've been working with local authorities and others some have tried to accelerate alcohol delivery for every side, we have to check i.d.s and make sure everything is verified. for consumers, they have to upload only once, a valid i.d. and for dashers, it's shown in the app. it's blurred to protect a person's privacy but that photo and date of birth is he went when the dasher arrives at the door to verify the person making request is over the age of 21 this is a superimportant thing to get right and it's something we've been testing for years before we decided to launch it. >> i noticed about a year ago, you guys announced a pharmacy delivery deal with was it sam's club >> that's right. >> that seems to me in a way strategically similar. if you're delivering

prescription drugs, there are certain things that have to take place. does this playbook for rolling out alcohol allow you to expand perhaps prescription delivery as well >> yeah. i mean, doordash has always had two offerings to serve all of the merchants. one is really this app, the local commerce marketplace with the highest number of consumers, 20 million-plus, who order at the highest levels in terms of frequency. but the other side has been our platform where we're powering the nay active and digital channels of the retailers and merchants themselves you're right we partnered with sam's club what we're doing is making sure we get the quality right, getting everything from logistics to safety to security, privacy such that, you know, everything that is tailored for the millions of dashers that we

have on our fleet can actually, you know, happen exactly the right way every single time. and when we do that, then we believe we've earned the opportunity and privilege to partner with them. >> we've been covering the tight market you have unique inside into that how is that trending for you and how much are you having to put incenters out there to get them to take up the business that your customers want delivered. >> dashing has been about supplemental work. the dashers dash about four hours a week they fit in whatever they need whenever they want

for us, actually, we've had record levels of dasher activity in q2 we had dashers >> has their behavior changed. are they wanting to -- you know, even though it's supplemental, are they wanting to dash more or less or does it take different things to get them down the road >> it flexes up and down it's always been a supplemental piece of their work. over 85ch of them have full-time jobs and we literally see dashers from every sector of industry from, you know, students to stay-at-home parents to retires and everything that represents, you know, every sector as a result, we see dashers come in and out and use this as a very flexible way to achieve their goals. >> prop 22 back on the table in california a judge said he ruled it unconstitutional, a lot of big economy companies pushing back

against that what's at stake for you? >> we saw on both sides of the aisle, in fact, over 58%, 59% of the california population of voters voted with dashers overwhelmingly to say that when they want to work, where they want to work the legal opinion was candidly a surprise, and, really, you know, made no sense from a legal perspective, and it really, i think, you know, overreaches to what the laws permit in if state of california, which is to allow the voters and the dashers in this particular instance to vote with their feet, vote with their words, and vote with their ability to vote that they want to remain independent

contractors. >> another one to vote on is fees, right? a lot of cities, municipalities, limited the fees companies could charge to restaurants during that time, new york in particular trying to extend that, doordash, i believe, saying that's not fair what should happen is there flexibility in your restaurants that are still struggling >> at doordash we believe businesses can have a very positive productive relationship it doesn't have to be confrontational. what's been surprising about some of these more recent events, such as the one you stated about new york, doordash has had different fee options, everything from 15% to higher fee options. doordash, you know, during the pandemic invests hundreds of millions of dollars, relieving commission fees so they can help them they had eight times the odds of

surviving the pandemic so we absolutely believe in supporting the restaurants and working with governments to make sure restaurants can come out of this stronger and actually accelerate into the post-pandemic world. we just think that has to happen in a fair constitutional way and, by the way, we already make it happen with the fee structures we offer. >> and you updated those fee structures during the pandemic as well. tony xu, thank you. >> thank you so much. these issues, front and center at grocery shops, so much of this interplay in the omnichannel, causing all kinds of businesses to pivot i spoke with the chief officer at albertson, which is the second largest grocer in the country, about how big an opportunity there is in this

space. take a listen. >> yes, i would say we have really been surprised about that stickiness and behavior over time in addition we're surprised how much more omnichannel customers spend than those who shop on one chant it's over 27% more when customers are omnichannel with us. >> 200%. meaning three times more >> yes. >> what do you think that is is that with discovery are you able to tell from the pattern as what it is that's doing that that accounts for that difference in basket size >> well, i think it starts with the fact that albertsons has convenient locations for customers right in our neighborhood we have over 2,200 stores across the country under names like

safeway, albertsons, jewel-osco, shaw's, around we're right in customers' neighborhoods, so we're already in a convenient place for customers to shop. when you add pickup and delivery options and customers are driving roost past our stores on their way home, the convenience is they're filling all of their needs. >> the basket size is bigger, but the thin margins are lower when they work through delivery services some of they've got to also look at margin opportunities like prepared foods. so all of this is playing in as the companies figure out how to thrive in a business era. >> transportation costs certainly don't help we'll look at the business where you are right now. great stuff with tony xu by the way debts of concern in

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welcome back to "techcheck," the five worst performers on the screen you see the materials getting hit as the selloff intensifies more coming up next. first a news update with rahel solomon. you have a gain of about half a percent meanwhile volatility soaring

the vix is up. commodity prices are also falling. it fell briefly 3% and dipped below $70 a barrel and precious metals are posting gains the increase of energy was driven by a big drop in lumber prices and big demand by buyers, although, labor shortages are expected to continue and travelers will need to prove they're fully vaccinated and they tested positive to covid-19 the rules will go into effect in early november i'll send it back to you. >> thanks, rahel. don chu has some of the sharper divergences within tech. what do you think? >> we're talking about levels in the market even with today's

pullback that the but the dow and s&p and nasdaq high. yes, a pullback. people are talking about the 50 manufacture day moving average all of that is in play now the divergences are starting to get more noticed because within certain parts of the market, the russell 2000 has been narrowing as of late. whether or not that continues, maybe that's a sign. same thing is happening with transportation stocks versus the overall large caps seen as well. if you take a look at the transportation etfs, again, similar trading patterns a bigger divergence happening over the summer and a narrowing as well. convergence is starting to worry some people. you carry that over into

tech technology you can see the movie in semi-conductors that a lot of people are starting to take note of that gap in performance has been relatively wide throughout the course of the year, but all of a sudden it's gotten tighter over the year as of late. watch the semi-conductors. by the way, if you want to take a look, julia, at which stocks in the semi-conductor could be a huge focus if some they're the ones that are the most volatile. they tend to have volatility they have been a little more

volatile relatively speaking meanwhile a company like skyworks solutions has been one of the mideast volatile low beta stocks within technology and semi-conductors in that time so julia, applied materials. if there's a deeper pull back. we could see deeper than the overall market skyworks if history holds true, maybe not as volatile as the rest back over to you. >> as you look at the 50-day moving average and all of the fundamental shifts going on, we heard at the beginning of the hour, is there a sense things could shift back before the end of the month >> it could. this is a seasonably weaker time of the market. we've heard how september is the weakest month of the year.

we've talked about the holiday season the reason why there's a debate going on right now, why jim cramer is saying it's too irl to buy stock. tom lee is saying it's still a buying opportunity is because over the course of the last year, there haven't been that many times when the 50-day average has come into play when it does, we see that bounce there's been leadership over the course of the last three to six months whether or not those mega cap facebooks of the world, the alphabets or else take that, it could be instrumental what the next leg could be, especially year end when a lot of people do expect a bit of a pause in the overall market despite the season alt and the possible different that happens with it. >> dom, thanks so much for your insight as always.

we did get the bullish take a few minutes ago, but now we'll be turning to a more bearish one. sven henrich has more. what are you seeing in the tech sectors right now? >> thank you for having me on. the fact is the s&p has been in a steady uptick. more importantly is the trend. that was an establishes up trend. it got broken today. they have resulted in larger drawdowns. in 2018 the nasdaq broke that trend and retested it and made it slightly higher before we even got a larger 20% correction so we'll have to see now how support levels fundamentally see

this market hold, vis-a-vis, the larger volatility still coming in keep in mind, this market has been very extended for a long time now since the march low ice been a steady uptrend and there's a very high valuation in this market at this point. >> so, sven, what are the technicals that you're watching right now to understand or predict whether this is a smaller pullback or really a full correction? >> well, the first one i'm looking at is the monthly explanation of the moving average which is about $43.25 which coincides with the daily if that holds, we could have kind of like a 2013 repeat, which was exactly the same thing. we ha a lot of central bank intervention and support we're not too far from that. that's a support area i'm

looking at should that ultimately fail, we'll have a higher risk that's when you have the quarterly 5 ema. this is all a journey now. people need to recognize this. up in of these things are on a straight line. we broke the 50 m.a. we broke the trend what we have to see on the future rallies, for example, we have the fed meeting this week whether those levels present themselves as resistant because so far everybody's used to every 15 bought and then producing new highs, so we need to look for a change in the market. >> to that point sven, about pattern recognition, i do wander -- wonder if the market takes its cue from that. >> whenever the market gets it, the fed tends to pull back on

any hawkish expectations there might be this is still a very small pullback i think the larger issue for me is confidence in the fed itself. it's got an lot of pressure in the last couple of weeks with the reports of trading from the fed governors themselves and the question you have to ask yourself is, you know, in the content of so much money having been piled into markets, you know, can you expect a cascading effect don't forget the market was at summer highs as well the fed has shown time and time again it's very reactive to markets, especially on the downside. >> are you surprised high yield has not responded or made more >> not ready i've not seen high yields.

there was divergence in the summer that hasn't really produced anything as of yet. i'm not too convinced of the bond market's signaling power in the market we can't forget central banks continuing to buy and sit on the yield curve. so it's hard to say if that's the point one way or the other. >> sven henrich, thank you for sharing your thoughts with us this morning. >> you're welcome. we have some picks called discretionary darling. find out more on cnbc.com. there's a lot more "techcheck" straight ahead

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a slew of ipos are going public there's proceeds raised and then there's performance. leslie picker is watching that today. hi, l.p. >> hey, carl not the best timing for companies making their debuts

this week. as you mentioned, it's only september but they notched it hero in the u.s. more than $100 billion worth that beats 2014 when alibaba went public as well as the dot-com boon years these numbers are not adjusted for inflation, however still, the 1$100 billion figur doesn't include spacs. they've raised an additional $125 billion this year and the delaw firm both are upping irthat respective price ranges over the last hour or so.

they're each prepping ipos of their own, reddit, allbirds, crow bani, rivian, and tpg nearly half of the ipos interest this year are currently trading under water according to cnbc data the question is how many more will be worth buying as the market continues >> we know you'll be all over that question. meanwhile it's not just stocks getting caught in the selloff. watch crypto, already volatile but getting crushed today. bitcoin and ethereum both down big. meantime the dow dropped over 500 points we're back in a moment ♪♪ (vo) the rule in business used to be, "location, location, location."

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welcome back tech stocks falling with the rest of the market the nasdaq, the worst. down about two and a quarter percent. its second straight negative week on its way to a third thanks to this morning's selloff. josh >> let's start with the big names like apple actually a positive note from the team at morgan stanley today. they reiterate apple as overweight

year-over-year growth, but apple in the red today it's about 9% now off its 52-week high, which remember it hit earlier this month check out amazon as well it's about 10% off its 52-week high in the green for the year, but just barely. alphabet down about 5% in september. it could snap an eight-month winning streak here. its longest streak since 2009. chinese tech stocks in focus, too. names like pinduoduo and jd.com. among the worst in today's trade. the chips, the smh is lower. under the hood of that etf, nvidia and aman. both up strongly in 2021 >> thanks for that when we come back, the man who gained silicon valley. the president and democracy. the author will join us next plus, keep your eye on apple today. morgan stanley bullish on the

coming iphone cycle. said it's off to a quote, promising start. shares are down. dow is down 581. back after one last break. ers, 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. competition beat us again. how? they have a better finance system than we do. i feel like they might have a better finance system than we do. workday. how do they make better decisions faster? workday. it's got to be something workday. i think i got something. work... hey, rob, you're on mute. hello! hey, rob, there he is. workday. the finance, hr and planning system for a changing world.

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stocks in the red today which has investors looking at the long-term valuations in technology there's a new book out tomorrow called the contrarian. takes a look at how those valuations were built. the author joins us now. max, congratulations on the book a really nice preview of it in bloomberg business week. a couple of questions. what you find most interesting the way in which teal set himself up policiwise over the last decade or the way in which he surrounds himself in mystery. >> i think the real brilliance of peter teal is how he combines ideology, politics and business. it's like the koch brothers in that way this virtuous cycle where he's promoting an ideology, and also kind of reaping the benefits business wise. >> i'm really interested, max, in teal's relationship with mark

zuckerberg and has he influenced him or how things played out with him especially when it came to president trump. >> this is one of the most interesting kind of questions in moguldom on one hand, he's been this mentor figure to mark zuckerberg the longest outside serving board member you can see his world view in zu zuckerberg's approach and yet, he's taking shots at the company. he's backing a handful of senate candidates who are sort of regularly railing against big tech so there's an interesting dance going on where on one hand, teal has been, you know, a huge supporter, but he's also at times a critic of facebook and maybe trying to nudge zuckerberg to the right >> max, isn't peter teal sort of old school silicon valley, in a way at least the libertarian

streak that we see in him and the fact that perhaps because he's not directly running a company, he doesn't have as many stakeholders he has to please? >> yeah, absolutely. as you say, there's this long tradition of kind of libertarian values of silicon valley i think it's something a little different than that with teal because trump, trump does not seem like a silicon valley candidate. these guys who are going out there kind of railing against big tech, that is not necessarily a libertarian position so i think it's a little bit more complicated he wants lower taxes he definitely wants a lighter regulatory hand in some areas, but he's also, these guys he's supporting are talking about breaking up big tech and talking almost like nationalists so that's a bit of a difference and why it's worth paying super close attention to this guy >> taxes, we're seeing all kinds of leaders from silicon valley and big tech face questions

about taxes. what is the most important thing to know about teal and his stance >> has squirreled away $5 billion in a roth ira. now, roths are sort of a retirement account for lower middle class people. teal used a very aggressive approach there and that's now getting attention because basically, all of his capital gains from investments like facebook, palantir, those are essentially tax free it's either, depending on your point of view, either outrageous or totally brilliant because he managed to get away without paying anything. >> that's been a topic of discussion appreciate your time good to see you. >> thanks. we are getting a news alert on coinbase. kate >> hey coinbase has pulled its plan to

launch an interest bearing product. they're saying this is after sec scrutiny remember that a couple of weeks ago. they had been sort of in limbo officially, coinbase says they are not launching that they are pulling plans to do so after regulatory scrutiny. they are also canceling their wait list for that so putting those plans on hold for now. back to you. >> kate, obviously we've been watching the back and forth between the company and the sec. i think gensler's a keynote speaker today. i wonder if he would address it. does it suggest they will become a little less aggressive on their growth prospects >> it's interesting. they had sort of put this out there and said they were waiting for more clarity from the sec, but they have tried to really position themselves as the most compliant regulatory friendly u.s.-based crypto company. so if anything, they are hesitant and if so more hesitant than some of the global players. you have block by celsius also

under scrutiny by state regulators so taking a more cautious approach here. >> thanks for that interesting news just breaking in the past few moments. we'll keep our eye on the selloff. dow down 622 closer to the lowest parts of the session and we're just shy of a dow 34 k. let's get to the judge and the half >> carl, thanks so much. welcome to the halftime report the major selloff in stocks. we'll speak exclusively to two investors you do not want to miss jim chanos has warned of a bubble in china's property market for more than a decade and has been betting against several of the company's financial institutions we'll get an update from him citron's andrew left got