♪ good thursday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber the dow is down just ten points from last friday's close as investors show some comfort in evergrande headlines and an even more hawkish fed stocks look to rally for the

second day, as the fed gets ready to roll back the massive stimulus. beijing asking local officials to prepare for what they're calling a possible storm, that is if evergrande fails. the fda does give vax boosters approval. jim, it sounds like you're impressed with how the markets handled some of the more hawk ish plan >> a lot of people were talking about how china and evergrande is a lean-in moment. what they're not doing when they're doing that is watching our eunice yoon, who is a remarkable reporter. i think she's the greatest we have she made the clear point, she was in front of empty buildings, and is basically say, look, they're not going to let the policyholders, because we have a

wealth management division, and they're not going to let the people put up money for properties, which she said there were $300,000 units, they're not going to let them lose the money, also that there's no social unrest. david, this lean-in moment was something created by the media >> true, but i will say there was a concern that the overall food chain in the real estate industry will experience a lot of volatility in china, and that -- again, to go back, you're right what you've been hearing seems to be reflected in what we're hearing reported from the ground there. consumers will get relief, but, equity holder, or debt holder, you won't be getting that. >> that's the point. president xi doesn't want those people to get the money. they're part of the rich who are not part of the common -- >> but there's an overall belief that bankruptcies will follow in other parts of the real estate

industry, they'll have a growing share of real estate held by the state on -- don't forget real estate represents i think as much as 20% of the chinese economy. it's the single-most important, and the greatest growth for wealth if you look at the stock market in china, it hasn't done much for quite some time. you're sitting on a five-point gain. >> you're not supposed to be making money in real estate. this is communist china. mao hated money being made in real estate. another thing that's being reported is ant financial -- this is -- i don't like to sleep on tuesdays, he comes on he is saying that ant group has to give all the data to the government now, isn't that a prelude to -- you think -- eunice, they're reporting stories that no one else is reporting. you've got to tell you, i love

them for their bravery. >> we are starting to hear from financial executive. the head of ubs says evergrande is not keeping me up at night, and eunice yoon can help us make sense of a picture on the ground, including these headlines this morning hi, eunice. >> reporter: hi, carl. the journal is reporting that the central government that is ordered local officials to prepare for a storm. that means reaching out to try to work out take joifrs of real estate projects to mitigate the economic impact, especially when it comes to homeowners and jobs, to prevent -- and then finally to only step in at the last minute, that is is if evergrande didn't sort out its own issues

so this report really does support the general feeling here that beijing is not looking for a way to directly support evergrande, but instead is looking for alternative routes and preferably for evergrande to be able to work out its own issues late last night, the founder had convened a meeting of 4,000 managers, when he said he needed to go all in to try to guarantee homes for home buyers and make sure that wealth investors feel as though they're a top priority in fact, the financial regulators about a week ago, had made those recommendations to the company. but i'm standing in front of an unfinished project by every grande homeowners have been coming here all day, looking for information. they've been very uncertain,

including that the tv unit has stopped paying some of its staff and some of its suppliers. so when they're seeing these kind of headlines, they get nerve out about what's happening, and then there's the latest, and they're supposed to make an interest payment on a dollar denominated bond. so far it has not resolved exactly how it plans to do that. >> eunice, why is president xi and company, so to speak, bailing out the wealth management people. those people tend to have a lot of welt. in common prosperity, ar of wealth doesn't cut it. why is it being bailed >> reporter: i think it's because there have been so many people who put money into these financial products what we were seeing is a lot of people mobbing the evergrande

offices around the country were the financial products investors. so if you talk to home buyers, they say, hey, we're the ones who actually put down deposits, we're the ones who have our life savings wrapped up in our homes, we should by the priorities, but then wealth investors have also said, well, we have put a lot of our own money into these products, and we need to make sure we get our money back so because of these protests we are seeing that are happening all around the country, including here in beijing, the government had made this recommendations to evergrande to make sure that it does make the wealth investors at least feel that they are a priority >> remember, jim, sort of what we went through with the housing crisis you had financial institutions at risk. you couldn't help these collapse, yet a moral hazard involved in people who were irresponsible with their

mortgages, perhaps you didn't want the general public to fail at large. >> i've been say that president xi, with all the things he went in and has done all right, so cut down gaming, and then you get to this, and he really i believe wanted to get the richest man in china, which is the man who ran evergrande, the people at the top, and he wasn't able to do it. he couldn't surgically remove the money of the top guys without bringing down the ed fits this is the first mistake i've seen him making. >> but also slowing the development cycle, right >> i don't think he knew. >> this is a company based on the next sale, the next sale. >> but do you think he knew how people were getting parking spots in return? >> i do. i do

i don't think that was a big secret, then why couldn't he have just said, listen, here's the people who won't lose money? >> i don't know. we'll see how it ends up land sales are very important for local government revenue as well in china, an the question really also will be, i think for some of the u.s.-based investors, what does it mean for the companies who rely on the consumer in china. is traffic into nigke stores at the same level what does that mean? >> a lot of people think xi is president for life, and he's not yet. this is a constituency he cannot afford to lose there's a guy on the committee of the seven in charge of hughesing. he's trying to figure out, does xi deserve to be president for life literally. i'm not saying there's democrats versus republicans i'm saying there is

accountability even president xi, who we now regard as basically mao or stalin, he's not >> you're not saying he's not going to go for another round? >> oh, he wants another round, but i think he has to be more careful. i don't understand why people this i this country is necessarily united on someone who may have made a major mistake here it was a mistakes. he is not that powerful, that he can anger these people this is china, for heaven's sake. >> if you spend all your money on an apartment that has no prospects of getting done, you'll be upset. >> nobody is talking about those people being disenfranchised can we stop thinking that everything xi does is right? >> we don't necessarily do that.

>> we don't? >> no. >> we're following it because of what it means for the world's second largest economy, and secondly, that they continue to deal with the contagion. >> remember, when he gets the financial -- this argent piece now, about having to share all the information, the only place that chinese have left, is crypto >> or this potential new nominee for occ that we may talk about earlier, what she sees already as a dysfunctional financial system. >> i know, but if i'm xi, i'm saying right now, you know, we should let them have all the ethereum they want president xi is going to ultimately shut down -- if

he's -- it's so important that we want all the data you think he's going to let people take their money out of ant and buy crypto coinbase, we're in >> ant is still a private company. it was supposed to have been public a year ago. it would have been the largest offering of all time until the regulation change. >> toast so far, you're looking burned you were very negative. >> priced at 40 -- >> i'm negative, because -- look, if pfizer decided to give away the technology in order to get statistic -- >> now we're talking about a very low -- yesterday, the ipo market yesterday was quite strong, not to mention that

universal music group offering a couple days back, wow. >> it's a very robust ipo market i shouldn't have conflated toast with ant, but i liked it for the moment i think xi overstepped, but i think he continues to get all the date he wants, and he would tell you that data is king, and the ipo market is nuts do you think when those three billionaires on toast -- let me tell you something, they are in an industry where we want our waiters to talk. this is like when you go to the airport, you give them the credit card. millennial don't like to talk, they like to text, but if go to a restaurant, you want to say, may you buy -- >> a glass of wine at the end? >> they should go to a place that loses money

our thanks to eunice yoon, who continues to do great work, as jim said. take a look at the futures here. a lot of news on dell, salesforce we're back ia nu n mite hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, like asap! so basically i can pick the right plan for each employee... yeah i should've just led with that... with at&t business, you can pick the best plan for each employee and get the best deals on every smartphone.

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the fda authorizing a pfizer booster for those 65 and older the cdc advisory committee is expected to vote on the fda proposal the eu says it will probably decide by the end of october. >> dr. fauci said it very well there is varying signs of how much effectives and declines, particularly for older people, but i think far more important is something that david has been following. citi has put out a catalyst watch on the merck they say we expect data immediately from the merck test, and it looks like they are

vastly superior to remdesivir. >> that will be potentially a game changer gottlieb has been talking about it a bit lately, what we call the tamiflu for covid. that's if your testing protocol is good. i mean you knock the virus down completely, you're not contagious, and you move on. >> this is it. >> and we will begin to treat this as the flu. >> that's when we get people to work this could make jay powell right, by the way. >> the expectation has been that citi seems to be indicating we'll get the data toward the end of september, and then you get the using if in fact the data is strong.

>> i like the citi call very much where are you in "uncontrolled spread"? >> i have not read it yet. >> book is devastating in how horrible the cdc is. if you could do more things wrong, like wash your hands, you know -- i find it frightening, because if you were to do a science fiction story, about an infection -- did you see "walking dead season 2" when they were trying to get to the cdc, and the cdc turned out to be empty it turned out that "walking dead" was true. >> are you on booster 7 or 8 >> you have tore careful, because people say beyond 4 , it

is bad >> there's a great piece being done right now -- i had i would like a booster over and over again, and they're saying that's not a good so you can go to any stadium in this country and watch the eagles win >> well, you're in the age group that the panel voted on. >> i know, and i feel great. it's the only time i've ever felt great at this age it's good to be the king >> yes, it is good to be the king >> what a morning. southwest airlines on the tape saying that the delta variant impact has peaked. some headlines on carnival as well we'll get cramer's mad dash and countdown to the open bell, in a moment g means we see things differently, so you can focus on what matters most. whether it's ensuring food arrives as fresh as when it departs. being first on the scene, when every second counts.

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all right. we can hear some cheering to start. all right. here's a company with a heck of a market cap, still a subject of a great deal of debate. >> did you know that loucid is almost the side of -- >> tell me. >> especially in the wood of cathie wood, they start tesla with a sell and fisker with a buy. ♪

[ laughter ] >> i went to see hendrix >> did you >> he was unbelievable. >> what year was that? >> i was like 9. it was amazing. >> back to tesla they like fisker and not tesla. >> i'm going to be very -- i'm going to be a little icon oclass like this, it reads like a buy fisker has an asset like -- he -- he has an ocean, which is the car, he designs it, orders make it. it's not quickfire like lucid. i like tesla, but to buy the fisker side, if you really like what happened in -- >> we don't have a fisker chart for people right now, but we'll look at it in a bit. >> but i do think, david, people

are starting to talk they're back and bigger. >> i'll tell you man, that ev toll market, the flying taxis. >> we're going to fly in everything. >> we are going to talk about that and morgan stanley's view, and we'll talk about dell. we have to talk about that i've got a couple things on spacs. we have a lot to come, including an opening bell. you can catch us anytime anywhere you can listen to us, it's re" en oth "squawkn e stetoping bell podcast. >> i hope this person has security

you know, the restaurant industry has been going through a massive transformation for the past decade. we tent to put capital to work to innovate on behalf of the industry in many ways, we feel like we're an extension for r&d for the restaurant industry. we're going to continue to innovate with new products, and allow that community to thrive.

>> that's the head of toast on our air yesterday, the company's shares popped in their debut. >> i have to tell you, you have a market that everyone says the total adjustable market is growing. when you do a budget now for restaurant, say, versus five years ago, it's almost impossible to come up with why to open a second or third restaurant what toast needs is the continual opening of restaurants. it's not that they don't have a good product first of all, there's guys who would give away what toast has in order to get the back end you could do that easily, but more importantly, i don't think people understand the economics of restaurants even though toast will save you money on servers, you don't want to open a new one, because there's no money there used to be a great economy of scale to open many

restaurants. now there isn't, because the costs are too high supply chain lately. >> no doubt about that we'll see how much it eases. we'll talk about how it affects the car industry in a minute the opening bell, at the big bo board, the nasdaq, a digital fin tech we'll talk to them on "techcheck" later today. alex partners has this studies out about overall supply disruptions, what it will cost the car industry they're above $200 billion now they were at 110 in may. it's not getting better. >> when they had the meeting today with the white house, and of course pat -- will self-anotwithstanding himself as being the spokesperson, even though he came in in february to

run intel. what matters to me at this point is sat down with global foundries, and here's a blank check, the foundries would be in action next year at this time, but the industry itself, the auto industry and even the foundry industry, are so reliant on taiwan -- by the way, they put a new guy in charge to disrupt the taiwan he's just been put in charge to try to disrupt the taiwan industry but, no, we just sit there and talk talk talk the $52 billion is bottled up in the house for semiconductor foundries. go figure. >> a lot of things are bottled up right now that's somethingwe haven't gotten to, which is the infrastructure bill, the $3.5 trillion, the fighting among the democrats, not to mention the concerns about the debt limit.

>> i know, i waffle on how much when i try to do my breakdown of how much i'm willing to spend on this i just keep remembering that -- >> so many years back we talked about it every day. >> i knew ten years ago when i was attending eagles practice, and i asked a lineman what do you think about the game this weekend? he said, i don't know, tell me about the debt ceiling i'm much more worried about that when offensive linemen are worried about the debt ceiling, we're late in the game, okay this isn't dave tepper down in texas watching the texans about to lose to the panthers. >> you can bring it back to football for virtually anything. >> it was incredible andy reid wanted to know my thought about it he gave my cell phone number to

anybody who wanted to know about financial, and the only one who cared is brian westbrook, who is a great follow, by the way >> david koston did a piece earlier that looked at all eight shutdowns and near term, except for 2018, was kind of negligible >> that piece was painstaking. i thought that piece was brilliant. that's one of the reasons i did not want to spend too much time on dead ceiling. he says, if you waste your time on this, you should be focused on other things. >> i will focus on other things. let's talk dell. it's an important day for the company. the analyst meeting begins in a half hour from now, the

long-awaited spin of vmware is beginning the 21st you'll get 0.44 shares for each share of dell. if you're a dell technologies holder, no changes from the basic shares outstanding thee get another 9.3 billion, a special dividend from vmware to dell, but the key thing what is the capital return going to look like in terms of dell, which is a company that is going to produce a lot of cash flow they seem to like what they're getting this morning, though the stock is not doing much. a share repurchase will be put in place $5 billion will be the side of that they also are committing to returning between 40 and 60% of adjusted free cash flow starting in fiscal 2023 that is a bit better than a

number of analysts i think remember, michael dell and people we remember in the past, is he really looking out for me? is he trying -- is he just going to amass a lot cash? it seems to go against that given the capital returns they're talking about. with the different, by the way, now, as much as a 2% yield, and overall 3% to 4%, and 6% plus non-gaap you can see the stock is not doing much. >> a little more than a year ago, when this stock was in the 60s he wanted to come on "mad money. why? he said, you should buy my stock. it's really cheap, even ex-vmware. so why would he be saying --

>> i'm saying that's the perception what they're announcing this morning would seem to indicate it's not a -- >> i'm glad you said that. >> given they'll be return, what's called 50% of precash flow to shareholders. >> it's funny, i say "mad money" is notabout friends with money i've gotten to know michael dell over the years do you know how much he gifts to children's hospital? >> he's very charitable. he's one of the wealthiest men on the planet. >> we don't talk enough about ceos who do a great deal of good things. >> he does a lot of good things. >> when i had him on, i wanted him to talk about. he said, listen, i don't do that i'm just saying it's okay, periodically -- >> and he has the huge investment arm >> that, too remember, he brought in the

former ceo of -- i mean, i've been trying in my advanced age to try to periodically mention there's some of these ceos are doing great things, and they're not doing it to be mentioned, but we should mention it. >> that's good look at what musk has done for st. jude the past couple weeks. >> that's fantastic. >> speaking of ceos you have on, crm given us additional revenue guidance >> yeah, it's a bit better some people will say, please, this is the analyst voice that always comes with dream force. here's the star of the show, david. i know you're focused on something else. >> yes, i am make it quick. >> it's 20% gross margins going up that's why people are excited, because the gross margin is going up this was the same meeting, where

if you want to look back, he said i'm not going to buy twitter. >> oh, wow. >> because it's gone from 18 1/2 to 20 is a big deal. >> i want to get to the spacs. maybe it's a spac report we could call it that. i want to get to elizabeth warren, though there's the -- love that it's the move we're talking about, with the incredibly high redemption rates, and basically investors looking for the worst of the spacs, saying, darn, why don't i own that the latest, amhc i'm not making a comment on whether it's a good or bad company. guys, go back, it was on for only two seconds that only levels 738,000 shares outstanding. there's no shares. >> so is it like a lottery

ticket >> if you chose not to redeem, you're like, yay 130 million minimum, but they didn't get close to that yesterday senator warren and a number of others raising concerns, saying, quote, they revealed significant market dysfunction, with insiders taking advantage of gaps at the expense of ordinary investors. we're concerned when spac creators and early investors on the one hand >> someone asked jay powell about -- and he said i'm monitoring wells fargo i like this call much more what does it have to do with -- >> i don't know. >> they bought jasper therapeutics

>> is it better than a year ago. >> i don't know what jazz speaker therapeutics is. >> how about butterfly >> yes, yes, $1.4 billion. >> ask what it's worth david is right this is the lottery ticket you've got to find ten spacs you can do this. >> that's what's going on. they don't redeem because of what happens here. >> is senator warning -- >> they reference cnbc in their report a lot morgan stanley, you saw this, this caught my eye it's not what they said to say about joby, it's the first -- remember archer, just here the other day, which we estimate could have a total addressable market of a trillion in 2040,

but get this, it's going to be a big decade $9 trillion by 2050. >> $9 trillion did you notice that adam did not put his name on that research? >> all i could find was a graph that just shows it there's no like -- >> remember when portenoy picked out symbols -- >> it's going like that. $9 trillion. >> memo to james gorman. >> the flying cars will be everywhere >> you're better than that this is logan's run. remember that? >> um-hmm. >> i would have been finished 36 years ago. this is preposterous i do think that when you do something -- $9 trillion, tam,

david, it hurts the whole research department. >> let's do darden they raised guidance some of the comps are really good for restaurants can move into this in the quarter, it's at an all-time high. >> this is what's incredible about darden olive garden missed, only 37% comps versus 46. david, will you focus for ten seconds on me? because i've got something where they made their money was longhorn snow, longhorn has more than 500. david, when you go to longhorn with me, and i happen to love my l longhorn, they have had the single best bloody mary i've had. we had an hour and a half time at longhorn. it was one of the best

i'm telling you. i haven't had -- seen since -- i don't know, when i was in budapest and i asked my wife to marry me -- oops, sorry, it was prague let's get to the bond record here a look z coming out of the fed meeting, keep your eye on the curve, and, of course, the ten year as the dow is up almost -- and the s&p at these levels, almost exactly flat for the week. >> incredible. we're back in a minute today, things can be pretty unexpected. but your customers, they still expect things to be simple. and they want it all personalized.

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we can bam rick santelli here the preliminary read on the ma market, m-a-r-k-i-t, that's a bit of a miss.

sequentially it follows, and you have to go all the way back to april when we equalled 60.5. of course, march, 59.1 is truly the last tyke we were at that level. when you look at what lies in services, a big disappointment 54.4 you have to go all the way back to july, july of last year, to find a lower number. finally, let's look at the composite pmi, 54.5. you have to go back to september of last year to find a lower number so a bit of a miss, especially on services, which is the larger swath of the u.s. economy. we hope the reopening gets back on track as it was negatively affected obviously by the variant. "squawk on the street" will return, after these messages

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. looks like fort night won't be returning to the app store. according to a series of e-mails on twitter by ceo tim sweeney he writes, quote, apple lied, spent a year telling the world, court and press they would, quote,

welcome epic's return if they agree to play by the same rules as everybody else. epic agreed and apple has reneged. that's one front the other is more research this morning, jim, out of bofa the lead times for the phone, the 13 series, above the 12 and above the 11. >> yeah. i think that you and i have seen the phone and it's rather amazing and tremendous interest by the phone companies to give it away. look, i think epic is a good company but if you read the court's opinion, that is -- they're not being facetious but that's not true. i think if tim cook were here he would show you the documents it's completely untrue i wish them luck, but that's not going to get them any points they lost that case, lock, stock and barrel this is not going to put them in good favor with the court. i think we should be talking about the 13 and china, where i think there's going to be excitement about it.

i think the three camera is very exciting two phone numbers you can have really incredible. remember, we've always wanted to have two phone numbers, get to another country, but one of the most exciting features for those of us who travel you can look at a menu and translates the menu i don't know all these oddities that add up to i have to have. it's odditieses. it's little quirkes. and the one that reallies in the end drives things is battery life. >> they did see advances this time around. we'll keep our eye on that tomorrow the big day for the rollout. dow up 400 to bob. >> guess what? we're positive for the week. the dow jones industrial average is positive, s&p is essentially flat, remarkable comeback considering what happened on monday the sectors, the cyclicals that are leading so you're seeing energy stocks, banks having a good morning, retail china has gone negative on some concerns about evergrande, but overall, market is positive here micro cos m on the earnings

situation and the corporate america from darden, excellent numbers. really good numbers. same-store sales were really strong look what they said,they're having serious staffing problems, the labor shortages, having to quarantine some workers causing them some disruptions, concerned about raising prices too much. they're talking about what we ought to be doing is lowering costs, not raising prices, what corporate america is going through right now. not hurting darden, they had great number that's a historic high for darden, great day overall. nike after the close another great global bellwether. spent 40, 50% of the sneebers made in vietnam, disruptions there. how serious that is. they get maybe 20% of their sales from china, so we'll see how the lockdown is affecting them another great company because it's truly global. supply chain is global, sources global, revenues are global.

take a look at the revenues, north america about 40%, but you can see greater china 20%, europe and middle east 26% really good read on the global economy from nike. they had an amazing earnings beat in two. beat like 80%, see the move up, that was june, 80% beat on their earnings i don't expect that to happen again. you gets the idea it does move them i've been asked about exposures, etf exposures to evergrande and the answer is, for u.s. investors generally small but ways people have been exposed here, so there's global real estate funds, global x funds, china real estate fund, chir you see that effect there moving down even there the exposure is small from evergrande. vanguard runs a global investment, etf, xuf very tiny exposure there people going into emerging markets high yield, yeah, some of these throw out 4.5, 5%

there's one, that has small exposure to evergrande, but to the idea people are reaching for yield out there and sometimes you get very high on the risk spectrum finally we are waiting for gary gensler, the sec chair, to issue his report he has promised congress months a report by the end of summer, this is it on gamestop, robinhood, reddit. what happened with that? he's particularly indicated that he has concerns with some aspects of market trading, market structure in the united states, particularly regarding gamefication of trading and payment for order flow i sat down with larry, one of the great experts on market structure in the united states for my trader talk if you want to understand whether it is or is not harming investors, tradertalk.cnbc.com i'm anticipating a report probably within the next week or so, promising this report for months on what happened there and investors are awaiting that. >> thank you bob pisani let's get to jim and stop

trading. >> look, one of the things people are not focused on is the ge which did sell its life sciences business, dan, remember remember larry was there, great, but he needed the money. now he's on the offense. he's spending money to buy an ultrasound business i think is incredibly good, bk medical, had it gone public would be worth a great deal and this is the beginning of what i think is the expansion of a business that is so good, the health care business, mri, ultrasound. congratulations to them. finally in a position to -- larry has got it so that they have the balance sheet to pay $1.45 billion for a company, the deal closes in 2022 and that's why the stock is up. the emphasis larry is playing offense. a lot are cheering for larry because we're cheering for ge and this is a positive sign. >> tonight >> okay. tonight i got a company that we're seeing right in front of us, bob bennett from engagesmart. the biggest get, in a long time,

wynn resorts, matt mad dox is macau in play we're going to find out, things even president xi doesn't know i know right now he's in my left molar, sorry. >> right >> president xi owns all our molars he listens to everything in our brains i want to find out what wynn, what is going to happen. wynn, alone, the vegas wynn, is worth the price of the company given the fact that we're no longer getting any valuation from macau which is nuts it's nuts. it's joby! new word for nuts. >> i remember when i sat with -- >> trillion -- >> he showed me how to land a man on mars so perfectly, joby must be about landing -- >> all about the interplanetary -- >> see the great richard pryor, first man on the sun. >> yes. >> they're putting men on the

sun. that's what joby is about. >> glad we stayed for that but we'll see you tonight, "mad money," 6:00 p.m s&p 4440, back above the 50 day. that building you're trying to buy, - you should ten-x it. - ten-x it? ten-x is the world's largest online commercial real estate exchange. you see it. you want it. you ten-x it. it's that fast. if i could, i'd ten-x everything. like... uh... these salads. or these sandwiches... ten-x does the same thing, but with buildings. sweet. oh no, he wasn't... oh, actually... that looks pretty good. see it. want it. ten-x it. yum!

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welcome back to "squawk on the street." the last of the breaking news today comes in the form of august read on leading economic indicators expecting a number up 0.7%, but we have a beat up 0.9% and the last month, which was originally 0.9% higher gets downgraded the high for the year is 1.3, march and april. this comes in a second, up 0.9%. most of the data outside of continuing claims was as expected or a bit better. >> rick santelli welcome to another hour of "squawk on the street. i'm carl quintanilla with morgan brennan and david faber live at post nine. markets looking past that hawkish fed, past some of the

evergrande headlines the s&p back above the 50-day moving average. >> what a week so far. we are 30 minutes into the trading session. here are the three movers we're watching darden, one of the biggest gainers on the s&p 500, after strong first quarter results, the company raising its 2022 outlook. see the shares are up more than 8% restaurant tech company toast is in the red after popping more than 50% in its debut yesterday here at the stock exchange it is down about 3.5%, above the $40 ipo price. finally, watch delta douwngraded to hold. it's not hurting the stock della airplanes up 1.5%. we will discuss the travel landscape with expedia ceo peter kern later this hour >> all right turning to the fed as well, indicating that rate hike could be coming perhaps sooner than some expected. steve liesman has a recap for

us nothing gets by him. whatever was said was expected by you, steve. >> i think that's right, david carl called it hawkish and i don't want to pick a fight here, but i don't know if it was hawkish for investors, that fed decision yesterday can be looked at as the glass half full or empty. policy will be less accommodative, but it's going to remain for a long time on the tarp likely announced in november and then begin in december, we're talking in early august about it happening this month, going to complete it by the mid year 2022, on rates first hike 2022 or 2023. that was maybe a little hawkis but where the markets prized the fed starts tapering in december and reduces purchases by $15 billion a month, it will buy $660 billion in assets between now and next year, that'ssecond to the

quantitative easing program in 2010 jay powell thinks the economy has past the test for beginning to tarp. >> many feel substantial further test for employment has been met. others feel that it's close. they want to see a little more progress there's a range of perspectives. my own view would be that test, substantial further progress test for employment is all but met. >> on rates the federal market committee split 9-9 first hike in 2022 or not, 17 of 18 see a rate hike in 2023. median funds percent for 2023. probability showing 65% chance of a december 22 hike where it was before the announcement. there was movement on the short end which rick santelli has been pointing out zero rates asset purchase pandemic emergency programs are going to hang around, guys, well into next year so that's got to be a positive

carl >> steve liesman, for more we're joined by former atlanta fed president dennis lockhart. thanks for the time and great to see you again. >> thank you, carl. >> is there anything in your view, whether it's covid related or china or any kind of fiscal cliff, that could get in the way of a november announcement well, the momentum in the economy seems to be strong it would take a significant reversal in the next few weeks of the overall economic picture, and i just don't expect that to happen i'm very confident that we're going to get an announcement in november and that will lay out the plan >> how would you characterize the market's response to the decision, the statement and the presser yesterday? >> well, the equity markets, of course, were positive yesterday.

i think whaits shoes tws what h been a careful job by chairman powell and the fed to signal and prepare the markets and make sure that had when the event actually occurs it's a non-event some some respects, it's been priced in, and i think they've done a good job of avoiding turbulence around what still is somewhat uncertain, but getting much more certain. >> dennis, it's morgan let's talk the fed's quarterly economic projection as well because the newest forecasts we got yesterday from officials show u.s. unemployment the rate falling to 4.8%, that's slightly higher than the june estimate of 4.5% also the forecast cut the numbers for u.s. growth this year and increased inflation expectations is stagflation a real risk here?

>> i think 1980-style stagflation is a pretty far-fetched notion, but they are dealing with cross-currents or mixed signals in some respects this morning's, you know, this morning's initial claims and continuing claims really were not an improvement they don't show substantial improvement in that particular aspect of employment you know, they're looking at an economy that has many positives and very strong positives, but still has some risks associated with it and still has some gaps between what they want to achieve and where we are today that's the way i see it. it's somewhat mixed picture. >> yeah. i mean, inflation being a key part of the risks in that mixed picture, but this idea of transitory inflation, which the fed has been signaling and communicating all year, seems

look perhaps transitory is going to go on longer than earlier anticipated. i guess what is the definition there? >> that's a very good question i think the definition of transitory is actually being adjusted in real time. chairman powell yesterday pretty much acknowledged that the elevated inflation will last longer than they originally anticipated. they're still sticking strongly to the transient hypothesis, but recognizing that how this plays out is likely to be a bit messier and inflation in some sector stickier than they had expected transient now means longer than a few months if you were to back date this conversation say to january or february. >> you start off our conversation saying the momentum in the economy is strong what if any one thing would give

you the most pause in challenging that momentum? >> i think, again, i'll refer to jay powell's comment, the direct of the economy, the evolution of the economy, is still virus dependent so i think the thing that would worry me most would be, you know, a major reversal in our progress in trying to contain the virus and therefore measures that have to be taken that sue pre -- suppress demandd economic activity. we're in a world where there are multiple varptsz that we're watching closely, so that's where i think the risk lies. >> certainly why we're paying such close attention to vaccination rates and this morning even, news on

therapeutics dennis, appreciate it very much. always great to get your take. thank you. >> thank you so much take care. digging in deeper to the markets as we sees the major averages rally this morning. stocks opening higher. the dow off its best day since july another 1% right now joining us now charles schwab chief global investment strategies and wells fargo wealth investment cio. good morning to you both jeffrey, start with you, given the conversation we were having about the fed meeting and the comments from fed chair powell yesterday and the reaction in the market right now, given the fact that a taper announcement, unless some major change or risk occurs in this market right now, is imminent, come later this year, the fact that you're seeing the major averages up more than 1% is that surprising to you >> it's not. the market is pricing in the strong economic backdrop i know the risks around covid and supply chain issues but 2022, booming global economic

growth this isn't like 2009 to 2019 where global growth was below average. there were concerns about what that meant in terms of a slowdown in earnings or economic growth, but this time is different. we're in a booming economic environment. when we see rates rise from low levels or taper in this environment it's greeted with points returns in the stock market the european central bank when they tapered in 2013 or 2018, stocks went up because during those periods of economic growth accelerating and that's what markets are pricing again this time. >> yeah. daryl, the s&p right now is up 1.1%, 4446 the level there we're now back in the green week to date. the pullback we've seen in recent days and recent weeks for the major averages, is it done >> we think it's probably done you're about ready to turn the calendar, morgan, into the

fourth quarter next week, the fourth quarter seasonally is strongest quarter of the year on average, if you go back 30, 40 years. the s&p does in total returns. in years specifically where you have limited draw downs like this year, so the lowest draw down we've seen was the february/march one, 4.2%, now you've got 4%, let's call it, peak to trough, similar years like '95 have been strong years for the market overall we think the fundamental is set up for a nice fourth quarter supply. >> we started the week with sears rippling about evergrande and the situation in china in real time. how big is that risk given some of the conflicting headlines we're getting around payments and possible defaults where that institution is concerned and, of course, all the exposure to other companies including some u.s. banks how real is that risk right now as it stand for markets here

>> as a real risk of default and breaking up evergrande, but that's not necessarily a problem for the rest of the market the debt is well contained as you talk about on the show the reality is that china's targeting the sector rapid regulatory changes [ inaudible ] are not uncommon and they're often followed by sharp rebounds following broad policy move. china's monetary policy is pretty tight right now i expect to see over the next couple weeks into the holiday starting october 1st more easing announcements and support for other industries the typical peak to trough draw down any year in china is 28%. there's a bear market in china, but it's usually followed by a snapback on easing policy moves. you want to be careful if you're with china that the market can move quickly both down and backs to the upside. >> daryl, i'm not trying to look for trouble here, but claims up for the second week. the chair did say that he would

like to see a good jobs print to make the november announcement happen, not specifically but led the market to believe that way does that make you think the next nfp print at risk >> actually, it's a good point and you have to watch the high frequency data nft print is really good basically. i think the job market is picking back up. we have the covid issues, right, but there's good evidence if you look closely at the data that delta variant numbers are peaking here through august and early to mid september there's still more elevated than we want them to be if you can get that to happen no question the demand is out there and the labor market is healthy right now. we think you're going to see strong job gains into the fourt quarter. you have the holiday season which companies are scrambling to stock the shelves and hire enough people to support the demand that's going to comes in the fourth quarter this year

>> we started with monetary policy, but fiscal policy as we have the game of chicken around a possible government shutdown and the debt ceiling, questions around infrastructure deal and of course this bigger quote/unquote social infrastructure package, how does this play out in the near term for the markets? >> that's a great question we have to keep our eyes on it it's what i called a white knuckle september that's going to roll into a white knuckle october. if you think about the four packages right now, potential continuing resolution, a debt limit that needs to be increased, you've got the infrastructure package and the reconciliation the first three of the four, all have finite time tables that they have to be passed in our opinion it's not a matter of if, but when. on the rec consiglation possible it's a grosser net conversation. $3 trillion gross, $3.5 trillion offset by $1.5 trillion adding to the government credit card or the debt basically that has to get worked through

in washington, d.c that drama is going to play out through much of october we think. >> yeah. no small feat to get through all of that. daryl and jeffrey, thanks for kicking off the hour with us. >> thanks. the fda finally coming to a decision about pfizer's covid-19 booster shot meg tirrell has been following it from the very start and has more for us. meg? >> hi, david almost down to the wire for the fda coming out with this authorization of pfizer's booster late last night amid a two-day meeting from cdc's invest advisers should be used. if they didn't rule the cdc would have to postpone its vote. what the fda authorized essentially what its advisers recommended on friday, anybody six months out from their primary vaccination with the pfizer, only the pfizer for right now, 65 years and older, who are younger and at high risk of severe covid-19, or who have

exposure to covid through their jobs that puts them at high risk, the acting fda commissioner detailing more of those groups in the fda's press release last night saying it includes health care workers but also teachers and day care workers, folks who work in grocery stores, those in homeless shelters and prisons. a lot of questions are what the cdc's advisory committee takes up today when they resume their meeting at noon. then they are expected to take a vote toward the end of the day on who their recommendation is for. yesterday, as they were talking about this, they really did focus on the risk for people over the age of 65 it's not likely they're going to break with what the fda authorized this vaccine for but we have to watch that closely. see there, stocks moving higher biontech and moderna there's still going to be uncertainty for people who got the moderna and j&j.

this is a pfizer booster for people who got pfizer and the cdc advisers were talking about this is confusing for other people hearing they need a booster shot but not authorized for one. we're waiting for more fwans on that one guys. >> we know you will bring it to us as we get it. meg tirrell, thank you as we lead to a break, a look at our road map for the hour a breakdown of the china trade amid reports china is making way for the demise of evergrande. >> the latest in crypto as president biden looks to appoint a new critic >> don't miss an interview with expedia peter kern big hour still head the dow up 463. esg is responsible investing. who's responsible for building esg into your investments? at pgim, the pursuit is on for outperformance. as active investors,

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in business, it's never just another day. it's the big sale, or the big presentation. the day where everything goes right. or the one where nothing does.

with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it— all backed by a dedicated team, 24/7. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. travel continues to be in focus as investors watch how the delta variant will play out. seema moody joins us with expedia's ceo peter kern. >> thank you peter kern ceo of expedia, welcome back to cnbc. >> good to be here >> good to see you let's talk business travel, that remains a big question for the world of travel. i know you disagree with comments from airbnb ceo brian chesky made earlier this week on saying that business travel has forever changed and that more and more americans will long to

increasingly work from remote destinations where they are seeing an uptick in extended stay bookings. what are you seeing? >> their data is their data and we've all seen that same trend, but i think most businesses, many businesses, are not fully back to the office, many people, because of delta, have delayed return to office, and many planned business travel was delayed because of delta i think we're seeing that trend extend a little bit, but i was with the ceo of a major u.s. bank in new york this week and he told a great story about how his team had gone out where other teams have stayed home and zoomed and they won the business and it was a great piece of business and i think that trend will continue. we will see it be a competitive market where people have to travel for business and create relationships and get out there. i think there will somebody changes, maybe internal corporate travel and other areas, of course brian's

comments about groups back together to meet and build culture for companies i think that's true. i don't know where that balance will be. corporate travel will come back. people have to travel for work. >> because the covid risk has not fully gone away, it seems like it's becoming a competitive market airbnb competing with you on home, booking holdings under glenn fogel having an aggressive push into the u.s. you're kurntly outspending airbnb ten times on advertising. how much more do you plan to spend on marketing and brand building over the next 6 to 12 months >> i don't think it's about how much i think airbnb has great brand and people know it for certain things we're tying to make sure people understand what our brands are about. we're actually spending less than two years ago by a considerable amount. we are following the market and as things rebound, we will lean into the opportunities we see. we have competition everywhere but that's not different than it ever was and we have a great business and the vacation rental

business with vrbo we have a competitive product for a segment of the airbnb unit we're focused on booking has been a long-time competitor, strong competitor, and we think we like our odds in that fight we're fine with that. >> it's morgan, we're -- >> hi. >> we're finally starting to see some of the restrictions lift for international travelers to the u.s. i realize it's not going to take hold until later this fall, but the fact that we are starting to see the green light for more people, for more countries, begin to come here to the u.s., what does that mean for your company and is it going to be enough given the red tape that will be associated with that even still, will with it be enough to see international travel rebound >> i think it's great news avenue already seen, you know, searches go up considerably across europe. i had a staff in the uk, they were twice what they were a week ago on the 20th. i think we're going to continue

to see that. the airlines have to get more planes back in operation for long haul flights, but international europe to the u.s. has always been a strong suit of ours relativery in europe, and really are suffering and the airline suffering in the industry has been the long haul trips that have gone away. i think it's a great moment for travel broadly i think there's a lot of pent up demand in europe to come to the u.s., just as there is in the u.s. to travel to europe but even with the restrictions u.s. citizens have we're seeing more go to europe now with their vaccination cards, filling out the forms and getting the qr code i think it's great step for travel certainly and certainly for us >> peter, it's david i would love to come back on business travel. the anneck dote you shared i think is true, what i hear as well, if it means winning news business, people will get on a plane. but they're not going to get on a plane as often, i also hear, to maintain current business

the clients don't seem to want them too they're happy to zoom one they've won the business i have a hard time believing in that environment that we ever get back to 2019 levels of business travel. >> yeah. i hear you, david, and i think there probably will be some of that, but i think you have to -- we all have to recognize the times we're in, right. if you're a client you don't necessarily want to see extra people you're worried about your own health may not be that exciting to meet with bankers you don't have to meet with, and the work can get done remotely. when we all feel appropriately safe, which is every day getting better, i think, i think those relationships and that continuity of those relationships will be as important as they were ever and you won't want to lose that business because you're sitting home like sitting on your couch doing zoom than sitting with the client in your office. i think that will change over time and sure, we will have some different i think travel,

corporate travel, will be different but be here and a lot will be the same. >> how does that change your outlook on hotels, specifically those in new york, san francisco, l.a., that have suffered from low occupancy due to restrictions on international travel, that and your prognosis that business travel returns how does that help the big brands >> yeah. i think the cities will be coming back. broadway opened in new york as you know this past week, which was terrific we will see tourism with that. with the big cities. i think corporate will take a little longer. i'm not saying corporate is back tomorrow, although small and medium-sized business travel is still fairly robust if you talk to the big hotel chains. the big corporate travel, the big multinational corporate travel, that's going to take some time to come back, right. we still have major tech companies on the west coast that haven't gone back to work, including our own, and that has to happen. people will get back to the office and things will change.

i think corporate will lag european travel and tourism will serge help bolster major u.s. cities just as we're hoping to bolster major european cities and that becomes a more lick quid market that comes back and corporate will catch up. >> eagerly awaiting that thank you for joining us today peter kern, ceo of expedia. >> take care. seema, thanks you so shares of embattled chinese developer evergrande up nicely this morning but a dowall atnfth many expect is still on the way. we're going to have more on that in just a moment stay with us

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two names that went public yesterday, toast and fresh works. both saw a huge pop in their debuts da tug are in the red for both toy,hoh. more "squawk on the street" is still ahead with the major averages all up. stay with us ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪

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welcome back i'm rahel solomon. here is your news update at this hour the fda is authorized pfizer's covid booster vaccines for 65 and older as well as other vulnerable americans the decision faces a review by the cdc and a vote is expected this afternoon bipartisan congressional talks on overhauling police practices have ended without an agreement. talksmoved slowly over recent months as negotiator were unable to compromise on key issues. for the second year in a row the nobel prize ceremonies will

be scaled down to the pandemic. the awards ceremonies will take place in december using a mixture of digital and in person events. the u.s. special envoy for haiti ambassador daniel foote resigned amid mass depofrtation of haitians who fled natural disasters and turmoil but insist u.s. policy on haiti remains flawed riding surging migration to our borders with will grow as we add to haiti's misery back to you. >> thank you. we are continuing to watch shares of china's evergrande as you saw earlier the stock is actually up sharply. they've got a lot of different deadlines looming in terms of debt repayment beijing reportedly asking local officials to prepare for a, quote, possible storm if the heavily indebted property were to fell. fed chair powell played down the risk of market contagion.

>> in terms of the implication for us, there is not a lot of direct united states exposure. the chinese banks are not tremendously exposed but, you know, you would worry it would affect global financial continues conditions through confidence channels and that kind of thing. i wouldn't draw a parallel to the united states corporate sector >> joining us now the founder of china moon strategies and former assistant to china jeff moon and ben harbor from mshg sa capital. jeff, start with you, let's assume chair powell is right but this would be a potentially seminole moment for china if evergrande does fail would you agree? >> yes i think that this is a systemic problem in the chinese economy, not just about one firm, this is about china's real estate sector which begins with local governments selling land to government affiliated or favored land developers who get

financing from financiers and sell to local people this is a business model that is flawed it's not just one company that's out of control the entire business model will be a problem in a country where real estate is a disproportionate amount of gdp and the economy. >> so what are your expectations then when it comes to this in terms of china's ability to contain the problem or is it going to spread to other real estate developers and overall the market as you point out, real estate such an important asset class in china, not to mention an important part of the economy. >> well, if i was someone in china thinking about buying an apartment, i think i would probably hold off watching what's happening with evergrande but i think that the central government will address this in a chinese way. what china has done in the past when state owned enprizes have failed they merge them when the stock market went south they got the team of chinese

affiliated financiers to come in and prop up the stock market hna has failed and they've done asset sales. they are going to prolong the situation try to create a pass the government thinks it has the responsibility in a state-led economy to guide all economic activity and so i think they will have a prominent role but it will not be a lehman moment kind of scenario >> i want to get your thought on this too you don't think this is going to be a systemic collapse, but does it not speak to the risks that are in the market structure and the chinese economy more broadly, perhaps being overshadowed by the news but is slowing? >> certainly i mean there are -- this is a refresher and a wake-up call to the economy. historically, you know, there was a culturally -- real estate was a favored storm, household wealth for individuals here. the chinese government has i think acknowledged this was going to be a challenge in the long term and has been taking

action to pair back that capping the amount of loans that banks could issue, by reducing the amount of homes that people could enter or could acquire, particularly here in the tier 1 city the china savings rate is mamon the highest in the world and the percentage of household wealth into real estate is in excess of 78%. in the 20s in the united states. i do think this ultimately will lead to a redistribution of how wealth is managed and held, more into the public markets, but certainly china is going to have to take significant action to get healthier around this as they have with the soes and as they were starting to several years ago already around real estate >> jeff, a little more macro, i one ter what this episode and the business model troubles you're talking about does to china's ability to attract investment from u.s. companies looking to leverage their

consumers or even to hang on to supply chains, which as we know are getting smoothed out all around the world >> well, this is the real effect of something like this i think there won't be a dramatic moment, but i think there will be a long term drag on the economy that could potentially affect consumers, their ability to purchase, when the financial system gets strained, suppliers find it difficult to finance their needs and sell things. and also internationally, there could potentially be an impact in the belt and road initiative which genz on financing that a lot of chinese already think belongs at home and not going overseas >> ben, i mean i know we've talked about this before, you're invested in china in a number of companies. given all of these headlines and stories that are developing that we talk about on a daily basis how are you navigating that landscape? >> well, you know, as we discussed previously, certainly from a sector perspective we try to be selective and work within

the sectors we see the regulatory stream, innovation evolving where, you know, where consumer appetite lies an where the largest delta exists between more mature markets in china, places like health or core technology what we have to do also for our part is reassure investors, reassure our limited partners, of the health of the economy and again, our view is that actually a lot of what's been going on here is predictable. evergrande was viewed as a sick old man for many years and one that, you know, most of us assumed was going to be challenged so again, it's a space that foreign investors have avoided largely in any event and we just continue to invest in the regulatory split stream. >> thank you both. appreciate it. >> thank you bitcoin trying to regain ground after a volatile week for the crypto currency.

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a new crypto critic could be headed to the white house. kayla tausche has details. hi, kayla. >> carl, two sources familiar with the matter confirm that biden administration is slated to tap salah owe ma roma to lead the office of the currency, the regulator that supervises lenders of all sizes and their charters and especially important attry but for fin tech companies applying a law professor at cornell but a special adviser to the george w. bush administration in 2006 and 2007 which is a feature that members of this administration hope will help her sail to an easy confirmation with republican votes while also appeasing progressive looking for someone in the role who will be tough on the banking industry she testified on the fin tech

industry in 2018 where she made comments she wants to end banking as we know it and believes that crypto currency and digital stetz are untethered to the real economy. imagine her views at present will be important to the market and to republicans as she undergoes the confirmation hearings she will not be regulating in a vacuum if she is confirmed to that position. regulators from treasury, sec and the federal reserve will be operating alongside the o c c and to that note there is one role still open and the white house does not see any urgency it appears to fill that, and that is randy quarless the vice chair for supervision at the federal reserve. if the emergency were going to nominate someone today that role would not be confirmed by the time that quarles' term ends next month that is a role the banking industry is watching closely but we will see when we get the

nomination and some of the fed nominations in short order guys, back to you. >> a lot of moving parts and developments you will be bringing to us thanks for being here. for more on the crypto market we are joined by cumberland's chris zul ki. i want to get to the regulation piece of the puzzle, but first given the volatility, which i feel like is synonymous with bitcoin, but the volatility in terms of price action for bitcoin amid the moves in the broader market want to get your take on what you're seeing in terms of demand flow right now. >> it's been an interesting 96 hours. all eyes have been on the evergrande situation and, you know, with the debt market pricing at a pretty high chance of default, markets reacted as you would expect, btc and everything else sold off hard. i thought was interesting at the peak of the volatility over the past couple days our institutional base was buying from us two to one in terms of

notional value there seems to be a demand to buy the dip and more information out of china over the past couple days with the idea that they were going to help with restructuring of the evergrande situation, we've seen a rally. >> yeah. crypto critics have pointed to the price action we've seen in things like bitcoin and ether this week and said look, it's not behaving, these are assets not flight to safety given that they sold off. i wonder how you see it. there are strinstruments of leverage and how has that played out in terms of recent price action >> we saw a lot of leverage come out of the system leading up to the evergrande situation totally unassociated with that as a result of what we saw during the volatility was a price discovery process that was part risk takeoff and part accumulation over time now, while i think it's fair for critics to say that maybe it doesn't have the same volatility

as other asset classes have, it's still an asset class in its infancy and we've seen a slow decline in the overall realized volatility, the crypto asset class over the past couple years. no reason to believe that won't continue as the market becomes more institutionalized >> chris, there's been some discussion of bitcoin futures this week back in, unlike ether, jpmorgan said it points to much better institutional demand for ether over bitcoin are you seeing that kind of degradation in market share? >> you know, not really. i think the reason why you might see some of those dynamics on the cme bitcoin futures is it's one of the few places that large institutions had to express an opinion in some of these asset classes and perhaps during the sell-off recently, they reduced their bitcoin position that they've been carrying over the course of the past several nonz months to a year taking some profits rolling them into the

ethereum space the layered one solution in the smart contracts space has been gaining a lot of attention if you're an organization that has a certain amount of dollars to deploy to the crypto space perhaps you want to rotate to get access to some of the layer one progress >> i said we were going to touch on it. that's regulation. i mean we're and possibly professor omarova to that position. looking at some of the commentary and some of the personalities being fleshed out within this administration where cryptocurrency is concerned, it raises the question about whether the dollar supremacy is being challenged by cryptocurrency, if it is or if there's a perception that it is, that could have wide-ranging impact on these regulations as they're developed. >> yeah. i think you're right it's certainly natural to question any new innovation, and i would expect regulators to ask those questions about the risk they might pose to the economy or the markets

at the same time, i think it's important that those regulators ask questions about how these innovations can actually help markets, how they can solve real problems i'm hopeful that the new administration does exactly that we don't need to look far to find problems. hyper inflation is a real quish that many people global i will have to deal with. maybe we don't have that problem in the united states, but you don't need to look for, venezuela, argentina, turkey, these are countries where the population is dramatically affected by fiscal policy. you could wake up overnight and have no money in your bank account because of fiscal policy oftentimes that impacts the lower income and lower saving population if cryptocurrencies offer this segment of the world an opportunity to diversify their risk and have a way to feed their families during periods of inflation where it's through the roof, we maybe ought to think about that

the united states could start smaller. >> stable coins is a particular area of consternation among regulators here in the u.s how does this play out what are the risks for investors as you see it from your perspective with trading >> i think the risks are small stable coins peg to an underlying asset in their short history, we've seen them peg to the assets very well you compare them to money market funds which require fed intervention sometimes you have not needed fed intervention in stable coins i think to say they're inherently risky is not the place to start >> chris, thank you for joining us today >> thank you we are close to session highs, but i did want to focus people on shares of altice the broadband provider, they

just said their numbers would be negative coming into the third quarter in terms of internet net ads to the tune of 15,000 to 20,000 altice says that gets them to a trend of being flattish to slightly up for the year that stock has fallen off dramatically after those comments we're back after this.

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a quick check of the markets. just off session highs with the dow up more than 500 points. the s&p up 3%. the nasdaq is also up 1% all three averages on pace for en vate ekthe week in what has be aolilwe stay with us

we're having a good morning. you mentioned this a couple moments ago. why not mention it again as you can see the s&p regaining all the lost ground earlier in the week a couple things we've been watching shares of dell alice meeting going on right now, it seemed to pick up as that went along and we were talking about significant plans for return to capital to that

company. they're instituting a dividend, $5 billion buyback that caught some peoples enthusiasm in the last half hour or so. >> yeah. in addition to that, in terms of what's working in the market, outperforming is industrials, energy, materials. they are leading the way today that's going to do it for us on "squawk on the street. techcheck starts now ♪ good thursday morning. welcome to techcheck today, tim cook hates leaked memos. and more on the long wait times we're seeing for the new iphone. later, facebook fallout. the company's cto departs and we get clarity on