dangerous man to head up the fed and it is why i will oppose your renomination >> to get you ready for the hearing in the house and united airlines preparing to fire nearly 600 workers who refuse to get the vaccine. september 29, 2021. good morning we are going to start with the markets this morning what a day yesterday after the dow plunged. a i drop of 1.6%

this all came as interest rates rose we were watching every one of these charts you are going to see green ar owes s&p 500 futures. indicated up by 35 points. the nasdaq indicated up by 153 points we are not escaping september unscathed. for the month, the dow is down the nasdaq down 4.7% these are big hits for the month of september we have october waiting for us we have that to look forward to

you didn't mean at the end of the day, you meant at the end of the day. >> fair when you are saying at the end of the day >> have you ever in all the time and all the guests and everybody, have you ever heard anyone describe what is happening at the beginning of the day. >> let's check out the futures charts at the beginning of the day. >> no one ever cares >> we do it every day. >> it only matters what happens at the end of the day. >> that puts us in a tough spot. >> this powell thing when you call powell dangerous >> i almost fell over watching that people on the right, he is dangerous he's keeping the rates too low. people on the left, he is

dangerous, he's keeping rates too -- >> didn't you want to be dangerous. >> i pretended i was dangerous in bars. i was the least dangerous in bars >> jay powell was like, i'm dangerous. >> she knows how to capture the theater and use that for the time you announce she announces, i'm going to make sure i don't support you. >> she really works it does she not? >> i'd say one other thing i think there were positions people thought were wild on one side they have become normalized.

even though they are often positions they will take at a moment people will say that is a far out position years later, it changes the conversation >> that's a good point it is important in that, will this be the beginning of the end and what will markets think if you are not looking at jay powell as a replacement. >> who else has made that point? bernie used to say the things that used to call me crazy bernie, crazy socialist bernie are now in the $3.5 trillion bill >> i think a lot of positions on both sides >> that doesn't make this good, andrew >> on both sides that have been far out have become normalized.

why don't we show everybody the fire works here is the senator in her own words. >> renominating you is gambling that the next five years with a republican majority with republican chair regularly voted to regulate wall street won't drive this economy over a financial cliff again. with so much qualified candidates for this job, i don't think it's a risk worth taking your record gives me grave concern. over and over, you have acted to make our fed less safe and that

makes you a dangerous man and why i will oppose your renomination >> powell has served since 2019. i don't imagine this will change the dynamic. i imagine he will get renominated. there will be a drum beat of questions like the one she asked. >> i think it also makes sense why we saw resignations before he went before the senate yesterday. >>. >> the take is there is too much the journal's point is that you have everyone nodding.

>> will there be a hawk on president biden? >> you are making everybody mad, you are probably doing the right thing. i think president biden listens to that wing of the party. when the progressives say dance, he starts moving >> looking to cut deals with progressives if you are going to be trimming down the size of that $3.5 trillion plan, you will have to throw some chips their

way. a couple of days ago, we talked about this if you are looking to suck it up and vote on the bipartisan deal first, what are you going to give progressives that they are looking for. this happens to be something going up and down the pike if you looked at the s&p 500 financials yesterday, they go back down. you anticipate good news for the financials it was that tough talk coming from elizabeth warren about regulating the banks even if they do renominate jay powell, the vice chair position is also up looking at those that are more strict that could be why you saw those come down, which is why they ran up for four days leading into this there is tough talk about regulations. the banks and financials might well be considering that

>> president biden is canceling his planned trip to chicago today instead choosing to stay in washington, d.c. in an effort to try and salvage talks with lawmakers over that $3.5 trillion infrastructure package. negotiations are at a stalemate. the treasury secretary janet yellen could harm the u.s. in the long term. >> it would be disastrous for the american economy, global financial markets and for millions of families and workers whose financial security would be jeopardized by delayed payments >> not just janet yellen worried about this, also other secretaries and other people, you start talking through the banks worrying what would happen if there is a debt default taking you live to the latest

there. that's coming up at 7:00 a.m. eastern time >> stocks coming back after a selloff we'll talk strategy next looking at shares of tesla up about 5% since the pandemic began. the ceo elon musk at the code conference >> i have gone on record and said i think stock prices are too high this did nothing to stop the rise of the stock price. what am i supposed to do i'm not the one making it go up.

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welcome back today is the day. delivering alpha how do you produce alpha when we've seen beta gains. you can still register and watch the great lineup live. >> we have many others i'm going to be speaking with jason klein. that's all coming up

delivering alpha.com and it kicks off at 9:00 a.m. >> for more on what could lie ahead on this trading day and beyond at this point, i'm going to split valuing growth it looks like it is going to keep coming up i pant to participate almost like it is going to happen regardless so you are going to ride it. >> we are talking a really good economic and earnings back drop. they are rising for the right

reasons at this point. i think when we really started to realize yesterday investors were jolted away that valuations do matter when you have rising rates. there is no magic bullet no one or two companies to hide in, i think we can generate the return we've gotten used it over the past decade. we need to broaden it out. that means by sector focusing on tech companies offering growth o a reasonable price broadening out by region.

so i don't know that it is necessarily the end. the move index already moved higher this week and next. that move higher in bond yield it takes time to adjust this sudden rise in yield after five months of come plans complacancy >> i saw a guy at the gym. he had a t-shirt on that said, i have issues. i said, i'll leave him alone

you said you have issues causing you to not be -- i don't think buying with both hands i don't know if you are buying at all right now what are your issues if i send you one, will you wear it on air? >> please do i have three category of issues. our long-term view is not dissimilar from gabriellas from here to there, there is three categories first the structural issues you and i have talked about for weeks now. the supply chains are more damaged and will take longer to repair than originally thought we talked about this in may. it is probably another 6 to 12 months now the labor pool has not expanded due to the dovish policy i think that will be a slow haul

as well and we'll continue to have wage inflation. >> the other thing is self-inflicting rises. that would be the debt battle we are facing given the severe consequences, that will keep the appetite for risk depressed we have an opportunity to articulate a distinct tapering and interest rate schedule or plan in the middle of a spectacular second quarter and we didn't do that. we look at the process of the announcement and looking at that new cycle over the next few weeks and months the third is wildcards.

i think we'll see a core north of 4%. that is simply not priced in yet. >> you said for a couple of months, you haven't been quite as bullish you are just not adding positions? the things i feel like have the ability to pass on and are not quite feeling the wage increase such as in energy and in financials they are going to fair much better than some of the other sectors particularly in some retail which doesn't have the ability to pass on in some tech. seeing interest rates rise if i had to have new money here, it would be in those former

sectors. i'll be waiting for those assets that i like for some of those issues we just talked about. >> we had a long conversation about elizabeth warren and jay powell and how i was never dangerous. still not. saying he's actually dangerous you work at jp morgan, we have to take what you say with with a grain of salt, i guess do you think he's too lax or that he's a dangerous man or do you support a renomination >> when we look at the financial sector, we really see banks that are extremely well capitalized you saw them really go through what was a tough economic environment last year in a very healthy way.

with that out look this year where you were coming out of the last recession 10 years ago. financials is one of our favorite sectors talking about risingrates as far as we can see, it is something that is supportive >> looking for a yes or no on the powell renomination. >> not going to get it from me >> no comment. >> thank you both.

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united airlines moving forward with plans to fire

nearly 600 employees who didn't get vaccinated before the deadline it announced in august it would require workers to be vaccinated most complied but 593 did not. an additional 2,000 are seeking exceptions for religious or various reasons. fewer than 300 flight attendants and unions that represent customer service and ramp workers. wells fargo is delaying the return to the office for its workers again. the bank says it will now start bringing back employees in january. it had pushed back the date previously >> coming up, everygrande

selling parts of its own bank stake. shares of warby parker signing a $40 reference price for a direct listing giving it a valuation of $5 million. quite a success story. coming up this morning and we'll be wearing our glasses. a look at yesterday's s&p 500 winners and losers 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,

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good morning the dow now up 230 points giving back to some of yesterday's decline. the nasdaq indicated up nicely this morning up 150 points

summarizing what you are looking at unless you are on the radio people still talk to me about that being on the radio, say who your guests are at the end of the interview, say who you are talking to they don't realize, a lot of times the name of the person i'm talking to is no longer in the prompter so i don't know who the hell i'm talking to. >> that is hilarious >> and in gest we interview a lot of people >> i remember one time when hainse was on the set. you put up the newspaper and said who is the guest host

he couldn't remember who is sitting here. we are all guilty of it. >> andrew, right still working on it. >> lets talk about the story that just seems to never end the story is ever dallagrande the chinese company scrambles to raise money as it tries to make another bond payment they are selling it effectively to the state of sorts right? that's right they'll use the proceeds of the sale to settle debt with the local lender and selling a stake to the state-owned firm. the sale is highlighting two

things the company will be prioritizing domestic creditors and state-owned companies will be a large part what we know right now is that the company still owes $27.5 million in interest payment coming up today. fitch has already downgraded the company for a missed payment last week saying it will likely miss that interest payment for the bond due a week ago. the government has largely remained quiet for any direct assistance to the company. there are more and more reports that government linked companies are going to be playing a more involved role. companies all being encouraged to look over some of the assets

of evergrande. the vow to protect home buyers the first time the central bank mentioned the world real estate in the regular policy meetings since 2009 the bank also injected into the banking system there are still signs of distress today, the developer fantasia said it needed to halt affairs considering an asset disposal. we heard last week from another developer that denied it had asked for government assistance and another indebted developer said two companies including one controlled by the chairman decided to invest $128 million

into the company to buy a stake. a lot of signed hereof concern within the property sector even though the government is trying to manage it all in beijing we'll leave it there it is a story i imagine we'll keep coming back to. i could talk for hours about the implications we'll do it more in the future thanks >> when we come back, a live look in washington continuing negotiations to avert a government shut down this week also that looming fiscal cliff >> later talking to new york stock exchange president on market volatility and ipos and more watch or listen any time on the cnbc app we'll be right back.

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welcome back, everybody. president biden's economic agenda are on the line a look at what is at stake and the impact, the security partner and head of policy research. dan, it is good to see you >> great to see you. thank you for having me. >> you are calling this week field of dreams in washington. >> just like the movie, feefld dreams if you build it, they will come. the challenge for speaker pelosi is that she needs to build the agenda to get the votes to pass infrastructure, keep the government operating in specific, we have a vote scheduled for the infrastructure bill on thursday many progressive democrats came out wednesday saying they are not willing to vote on that bill

unless there is progress on the $3.5 trillion spending package going on with both the white house and congress to get as many details built in to that spending package so members feel comfortable voting on that bill on thursday. >> to bring them out of the corn field, so to speak >> exactly right on top of that, you have debt ceiling negotiations going on right now that both sides aren't caving both sides won't cave. we have three weeks to get that resolved what you also saw was some nervousness built into the market was that jay powell will not get reappointed as fed chair. on top of that, compounding these issues >> i started looking at this as,

okay, i don't anticipate we'll see a government shut down or default. that would be catastrophic in terms of what it would kick off. if that's the case, progressives do begin to cave my questions would be what are they given to bring them in line what could you give progressives to make them come in line if not a bill that will be ready this week >> i think the white house really wanted to get some progress on a top line number for what that $3.5 trillion package would be unfortunately, they did not get that yesterday you'll have to fill in the details and how many programs would be in place. >> clearly senator warren from massachusetts put her foot in there from the fed chair and said this is not acceptable.

you'll see a package of fed nominees start to develop. for the current open seat. the biden administration starts to pull those appointments together everything is connected here in washington this is as volatile as i've always seen it we'll probably is to see some pressure in the credit markets to get to the resolution on the debt ceiling >> what do you think could give. you don't sound like jay powell is on a chip they are willing to give that is something the biden administration moves forward with >> the biden administration puts out a statement or press record saying they are opening powell to be the federal chairman the key here on the open seats more in lined with the priorities and the open wing of

the democratic party >> i think it is a little bit separated from the fiscal issues you look at what happened yesterday, you had bernie sanders come out and vote against the infrastructure bill. reminding me of ted cruz saying go put the government in shut down in 2013 that's where the focus will be this week. if there is no resolution on that, the entire highway trust fund expires and there is little time to back up the temporarily plan these are critical issues. that clock is running. they are going to have to show progress on that package that will require some level of cooperation from senators in a full court press from the white house to get that. >> full court press from the white house and biden already

said he is not going to chicago. he's going to stay in washington and try to negotiate this. as an investor, what should you be watching. we know these threats will come and we'll get the results. if the government shuts down, it will only be a few days. are we foolish to think that won't happen this time >> i think we are foolish to think that will on the debt ceiling. if you look at the 2013 model when we had the government shut down, the government began pricing in morris being. you had big rise and short-term rates. we are nowhere near that i expect we'll see more pressure on the short end of the yield curve. i don't think we'll have a shut down if the highway trust fund expires, that will be temporary.

i think an infrastructure bill will pass congress might not be this week but it will happen eventually building in the price given all the uncertainty out there. the question is how does that get resolved the kie person to watch is brown. the senate banking chairman. we know powell has the vote to do this. if he lous that committee hearing to happen, powell will end up getting renominated on the debt ceiling, the democrats will have to do this in reconciliation. they'll have to try every avenue not to get to that point we'll have a series of votes and my expectation is once that step fails, they could begin the reconciliation process and it could get to the next 7 to 10 days they have some time there. >> they do the infrastructure

and the progressives are on board. they would say they don't have any leverage at that point on the 3.5 trillion they are not going to get any republicans. it will be down to mthem again the bill that basically is not going to cost anything we've got that going for us, as i said what's going to survive in terms of the tax hikes and outlay? will it be $2,000,000,000,025% corporate and what else? >> first, we don't like the top line number. those are wildly different bills. we've been trying to use an annual number. we think that spending annually once this is fully pulled in

we think there will be $1.5 trillion in offsets you'll see a higher corporate rate we think 25% rate is where they'll settle top rate 39.6. capital gains, 29% modest reduction of state tax ex engs it is the largest since 1968 i think it is bad for growth different for proposals out there. you will see for the reinstatement. they'll have to give the irs the power to go through bank accounts worried about that that's how they'll fund salt sort of like an unrealized capital gain on derivatives. you will likely see tax

proposals coming out i don't see votes for carbon tax when you have gasoline prices the way they are. >> i'm going to get any mention of patriot or tea party out of any accounts i have. wow. they'll look at that and weaponize it again awesome. that will be great where is louis >> check out the runup of lkg oul gas. tainabt the potential of sky high prices and winter supply shortages up next when "squawk box" returns. i promise our relationship will be one of trust and transparency. as a fiduciary, i promise to put your interests first, always. charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals.

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"squawk box," "squawk" energy prices are falling this morning after brent crude briefly hit $80 a barrel for the first time in three years during yesterday's session, soaring natural gas prices are shaking up the energy market we want to bring in ed morse global at commodity city who would have thought, ed, what was it maybe 18 months ago, less than 18 months ago when you know a barrel of wti was negative and here we are, you stockedup you brought some apparels? >> we suggest people buy for one time one time >> so what are we going to do here what's going to happen next? >> it looks like the winter will be a test for a bunch of things. european prices and asian prices are much higher relative to where the u.s. market is that's because the u.s. market is somewhat insulated, particularly on the natural gas side i think the oil price is on the

speculative side of things the gas prices are reflecting a really significant lack of material at a time when electricity demand is soaring and there is no availability from the renewables that either the europeans or chinese were relying on, coal inventories have been really diminished because people have been shedding coal mines and thermal power plants so they're a mess. the only incremental fuel they have available is natural gas and it can double from where it now is. >> it can double you think so that's not a speculation. you said some people are speculating. you are saying it could double >> i thought there was a financial buzz on oil. on natural gas, the market is able to to be heightened >> and if you were a betting man, which is sort of what this business is, to some degree within it comes to the price of oil, 12 months out, does this get sorted or it doesn't

>> 12 months out, our base case is the price will be much lower. we are looking at a significant amount of command next year, but much more supply growth. if you look at just the main producers, the u.s., canada, norway, brazil, what's happening in there and what might happen in russia, we're looking at around 2.5 million-and-a-half incremental oil supply next year from non-opex suppliers alone and the desire to get back their market share so it will be a difficult market on the oil side next year. natural gas prices a queer from now, would be lower as well with this high response the world has to get through the winter there are two big dangers with the natural gas price, electricity prices are acting consumers and they're affecting businesses so there is an impact, places in europe where people might go to the streets and businesses might have to close. so it will be a very difficult

winter in our place. >> who is the winner in this >> i don't think there are winners. i think this is a big testing time for the so-called energy transition people had been relying on governments have been relying on renewables to replace fossil fuels. they have been accelerating that transition, without thinking the about what the fallback might be we had a very hot summertime electricity demand went up and wind power upon which many european countries were relying just didn't exist. the wind disappeared, basically, over the summer for europe and in china, when hyperpower was a significant part of the supply growth picture for electricity demand rose 10% year on year of the pandemic and there is a drought and the hydropower wasn't there they had already started closing coal operations for -- >> so material slows down the sort of growth of the

sustainability efforts, at least in the short term? >> it's a big challenge here in the short term the only way to relieve it is by burning more coal to the degree that coal can be found l&gr is really at its maximum supply there are some outages around the world. there is a little politics involved, too. why would russia's supply be falling at this moment when they're the biggest splooer to europe there's got to be politics behind that. >> we appreciate your insight. great to see you, thanks. >> good to see you coming up, a big lineup ahead, who knew andrea had reading glasses and looks marvelous. he may slip them on for the interview. can you see the -- i can see -- can you see the prompter >> you can see far away. they look good on you. >> i've wore >> and those aren't the fake

ones they were on tv just for -- >> i don't have a real problem i mean these are the lightest ones, you hardly wear them. >> with your vision -- >> i have lots of problems not my vision. it's coming. it will get worse, i promise >> we have congressman josh haimer coming on he's okay with that. he knows how difficult it is senator john barrasso who is a loctor, plus the futures, a t of people. of people. we go way back and they want it all personalized. with ibm, you can do both. businesses like insurers can automat. it processes across clouds.

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this merger shall be a boon for our spice business. and set a course for growth. here, here! friars, send word at once. yes, m'lord. stock futures pointing to a higher open after yesterday's tech-induced tumble. warby parker set to go public on the direct listing on the new york stock exchange. the company's ceos will join us for our cnbc interview, plus, dr. gottlieb joins us for boosters and more. the second hour of "squawk box" begins right now

good morning, welcome back to "squawk box" right here on cnbc, i'm andrew ross sorkin along with becky and we will show you the green arrows. the dow opposite 197 points higher the nasdaq 139, 140 points higher s&p 500 up, we call it a bit of relief in the air about the fed maybe doing a little -- >> they do, do it. >> do, do, do. obviously, they don't. let's tell everyone a couple headlines that are making news this hour. the pfizer covid vaccine may not be available for children age 5-to-11 until november as we reported yesterday, pfizer submitted study data as a part of the formal application soon

to follow. saying the various reviews they will need to take place could push approval to late november, there had been hope that maybe we could get something in time for halloween. meantime, it's worth noting even if you did there would still be a few shots and so when people talk about being fully vaccinated, i think at this point we're talking about trying to get there by christmas. meantime, senator elizabeth warren says she will oppose a second term for federal reserve chairman j. powell she left her opinion at a bank committee hearing yesterday. >> over and over you have acted to make our banking system less safe and that makes you a dangerous man to head up the fed and it's why i will oppose your renomination >> powell's term expires on january 31st warren was the only senate banking committee member to oppose it back in 2017 if you ordered apple's new

iphone 13, it's possible you may have a wait for a delivery the news service now saying a wave of covid-19 infections in vietnam has slowed in production that's where the phone's camera are assembled. >> all right let's get to don chu for a look at the individual names that might be moving in the pre-market >> joe, what we have right now a pullback you pointed to this notion people are buying the dip a little of a relief rally so there is a reason why maybe there is that response to what's happening with the nasdaq, specifically because the last time that we saw a real market pullback was kind of the interest rate scare back in the late/early winter/spring this year. the pullbacks have been rather shallow since then what we seen is a pullback to a level that we did see just over the course of the last couple of months we are down 6% from the record highs in the fax that's the area where some

people get more interested in the market overall one of the reasons why that sell-off happened was interest rates. we see them across the board now. the ten-year note yield remember at times yesterday pushed around 1.57%. we are currently 1.52% the 30-year bond was 1.210%. now backing up to around 2.06% wti crude specifically just below $75, ice brent just 78, now the individual names that mattered the overall market, it was megacap technology, megatap technology services, discretionary if you want to put amazon in that budge am and microsoft same with alphabet, amazon and facebook as well each of these stocks was down in trading yesterday. so, yes, a little relief rally we have a ways to go for many egg ga cap to catch up to where

it was yesterday then there were green spots if yesterday's sea of red there were consumer staplese names in particular that did well, tyson foods is up in the pre-market trade after a positive day in the sell-off kimberly-clark off three-quarters of 1% oil and stock gas rising slumberge and newmont up about a half a percent as well keep an eye on those backing some more defensive-type plays back over to you >> thank you very much when we come back, warby parker going public on the new york stock exchange by a direct listing. the co-ceo will join us after the break to talk about the company's future during the pandemic plus the impact of the latinos on the u.s. economy. the trujillo group joins us. dow up 200 points after the decline of 569 points yesterday. s&p indicated up by about 30

points after dropping 90 and the nasdaq is up by 125. sdnaaq was down by 422 points yesterday, "squawk box" will be right back this is the new world of work. each day looks different than the last. but whatever work becomes... the servicenow platform will make it just, flow. whether it's finding ways to help you serve your customers, orchestrating a safe return to the office... wait. an office? what's an office? or solving a workplace challenge that's yet to come. whatever the new world of work takes your business,

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every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. the latino donor collaborative is releasing the 2021 gdp report it shows

economic output was 2.7 trillion in 2019. which was the latest year it was available. in addition the growth of u.s. latino gdp has averaged 5.6% over the last two years, double the rate of the u.s. economy some remarkable numbers here, joining us to break it down, co-founder, chairman of the la the i no donor collaborative, chairman of the trujillo group and long-time executive and board member we go way back, how long, some sol to the dark ages i was reading here about who's at your conference it says there are ceos, celebrities, politicians and economistles that can be just you i think you could be the only guy there and cover most of it, maybe not politicians. right? >> no no joe good morning, good morning, joe, good morning, everybody there. it's, it is that time of year where we get to talk data.

as you know, joe, as you say, i have run a lot of companies all over the world we have been talking a long time one of the big phenomenons here in the united states we have maybe not talked as much about until more recently. we thank you, cnbc for focusing on the total economy as opposed to just parts. the u.s. latino cohort has been growing given the numbers you said, $2.7 trillion in the last decade, it's grown from essentially 1.7 trillion to 2.7 trillion it's fueled by population growth it's fuelled by youth. it's fueled byeducational entertainment, a lot of factors that we talk about as businesses we always talk about a competitiveness. well, this is one cohort that's differentiating the united states from japan, from europe, from a lot of the countries that are comparable to us in age and maturity of the marketplace but this is a youthful cohort and

it's driving so much of our growth, labor force, consumption, entrepreneurship and all of the above >> the size might not have been exactly clear in terms of it's larger than people thought in terms of the population. but the growth is something that really stands out and why is that, do you think, sol? because it's faster than the overall growth of tdp? >> well, i like to go back to one of my i think one of the top presidents that we've had in our history, ronald reagan ronald reagan understood you know how we needed to grow the economy. you and i, joe, were around to remember when he was putting in place you know capital investment incentives. he was talking about immigration and the fact it was okay what was happening in our

baseline trends of birth rates so if you want to have a growing economy. by the way, i have done there analysis that shows the single largest correlating variable to gdp is growth rate i think ronald reagan understood it if you look at the highest gdp levels in modern history ronald reagan and bill clinton, those two eras of eight years each we averaged around 3.5% gdp growth rate and also the highest levels of labor force growth rate again when you look at gdp, it's simply outputs of goods and services by times the number of people plus investment, plus consumption, you'll see that there has been a formula here that ronald reagan started it got slowed and dramatically slowed in the last two administrations, both the obama and trump administration so we now have to think about

how we can refuel, restimulate our economy, so that as we compete for the next decade or two or three, we take advantage of the cohort we have and also supplement it with more. because that has been our dna. that has been our strength none of us here in this country can say we were the original natives. we were all immigrants >> that's true >> sol, what do you need do you think in terms of -- you need private sector help? it is 3.5 trillion is there something that can be done in terms of just taxing and spending that can get us back to those two eras that you were just alluding to and out of the slower era we've seen for the past 12 years? >> well, joe, i would say, that's almost the perfect question and so -- this year, we're going to be talking about capital.

we're going to be talking about the fact that this is the fastest growing cohort, the most entrepreneurial cohort in terms of business formations, whether they're sole proprietor or employer-based kind of businesses so it's the most prolific, but it's the most under capitalized. so then you say, okay, as a business person, let's do the root cause what's happened? why isn't capital flowing? and there is a study that's going to be introduced by bain consulting that we employ to help understand the flow, the source of capital, the flowing of capital and where does it ultimately go to it's going to show that over the last decade or two, we keep on putting capital into the same places who make the same kind of investments in the same place, you know, locations and programs sectors and that's not a way to grow you know, we diversify look at our economy today. the tech sector was very small, 20/25 years ago when you and i

were first talking, now what it is today so you have to evolve the flow of capital i'm a examist. so the point is capital should be flowing to where the growth is so it hasn't yet we will talk about if you structures to stimulate this further because there is a lot more to be had i don't like us as a fakes, as an american, leaving money on the table. >> i'm just liking at some of the notes, the hispanic, the latino population in terms of covid, has it been how would you characterize it? and has the jobs come back has the wage gains we are seeing before covid finally in a lot of different sectors in the economy, how has that been progressing at this point? >> well, obviously, the u.s. latino cohort, they are basically the patriots of our economy. they were out there working on the front lines and being

exposed to the ravages in many cases with, you know, many deaths and illnesses with covid. but as you might see from some of the data that has recently been talked about, including housing, they still are accounting for 52% of all new home emergency they're resilient. this cohort is resilient they work. they are entrepreneurial so they're coming back so, there have been wage gains, yes. there is a lot of states have passed $15 minimum wage, which has been helpful to that they tend to be the bigger states there is also this notion of people valuing a shortage of workers. now we have 10 million unfilled jobs almost 11 now. we only have 6 or 7 million quote available work force so that's creating a demand and a pressure on wages, which has been a good thing. because if you look at the do you that, the data shows that the entry-level kind of jobs

have been the least effective in terms of getting more and more income because of lack of demand now there is so much demand. wages are going up and, but we need more. we need more and so i think that all of us need to understand, we as a nation cannot grow gdp without a growing labor force period, end of story >> all right i thought you were going -- when you mentioned reagan, i think you may have triggered andrew a little bit did you want to -- >> i'm good. >> you're good all right. it's great to see sol, but i'm good >> i get they didn't take a shot you mentioned reagan, i get teared i do you know, sol, we may be boomers, we're not chopped liver. didn't we learn something? aren't we wise because we're boomers? don't you think there is some wisdom don't we -- we've lived through everything these other people

have lived through plus another 30 years and learned things, right? right? >> you know, joe, are you exactly right. ronald reagan reshaped how we think of our economy >> stop. i got another hour-and-a-half to spend with and it's going to be hell thank you, sol, we have been celebrating hispanic heritage month here as well it's good to see you, my old pal. see you later. sol. thank you. meantime, we have another entrepreneurial success. warby parker will list under the ticker wrby. the reference price is $40 per share. first on cnbc the co-founders neil and dave. good morning to both of you. it's been quite some time. by the way, i got my glasses here i don't know which models you are wearing, i am putting them

on for today i think i was trying to figure out. i met you guys probably about a decade ago you started the company 11 years ago. so here we are a $5 billion valuation why go public now will probably be the first question to ask >> so we've built a strong business we're excited for a bigger stage here to amplify the brand and our impact over the last 12 months, we've generated roughly 500 million in revenue we still only have 1% market share so we think that we have a lot of white space in front of us now is the right time. >> so, davis you are just ebitda profitable not truly profitable just yet. walk us through what it looks like to get to profitability and what the time line might be? 1234r sure, so we look at a variety of financial metrics we found our investors used adjusted ebitda as the appropriate measure of

profitability for a business of our stage. but of course we look at a variety of metrix. what we're most excited about is that the business continues to glow grow at north over 30% incrementally each year. so we have less than 1% market share. it's a huge tail winds to grow our top line and bottom line in the years to come. >> you guys talk a lot about the revenue mix and right now 95% of the revenue is coming from glasses. the rest of the mix is eye exams, accessories, contact lenses and the like. if we have this conversation three years from now, where do you think that mix would look like what do you want it to be. >> that's one of the things we are excited about, the growth opportunities, we have awareness, certain places like new york, people know warby parker, we're trying to make people aware that we exist contact lenses are 2% of our

business it's a 5 billion plus market the same with eye exams, you know, 1% of our business, but it's also a $5 billion plus. so there are massive opportunities for us in the future here. >> and how are you guys thinking about online versus bricks and mortar i remember when you first started, people thought it was going to be strictly an online business then you went bricks and mortar in a big way that scaled the business very successfully has that changed has the dynamic changed at all in a post-covid world where maybe more people are buying things online in terms of your ability to get glasses to people, what i assume is a higher margin online >> so we describe ourselves customers first and channel agnostic, what is exciting for our business is there is so much opportunity to scale our retail foot print and scale our ecommerce offering so we have 150 stores relative

to thousands of stores that most of our larger competitors have and the category has trailed a lot of other consumer goods in terms of ecommerce penetration it's still in the single digits. and we have the opportunity to really scale through our leading offerings, like our virtual trion and vision test. ultimately, we don't care where a customer transacts we want to make sure they have the best experience possible the way we measure that is through our net promoter score we have a leading of 83. we expect more commerce will continue to shop off line and online as we continue to scale. >> one of the things you note in the prospectus is the potential for supply chain issues. this is something confronted lots of companies over the last year and continues to confront them i'm not sure you are confronting them per se just yet tell us where the supply stand

and do you imagine trying to shift it as a result of things we are all seeing? >> we produce frames in italy, japan, china we do lab work primarily here in the u.s. out of our two optical labs, our firm here and if saltsburg, new york. and in los vegas i think what we found in the last 18-plus months is our supply chain is resilient. we will continue to integrate, that's how we deliver sectional value and are able to sell the products for $95, whereas typically they may cost several hundred elsewhere. we can do things cheaper, faster and better than when we do it ourselves. >> i am sure you spent a lot of time i don't know how much time you spent thinking about this.

they have a deal with ray ban for smart sun glasses with cameras in them. i was curious what you thought of that and whether you will try to develop things like that, yourself >> so we haven't tried that product ourselves, so we can't comment specifically we are excited the form factor around a pair of glass like them wearing is governr garnering more attention and glasses were the original wearable technology and we think there is lots of opportunity to add additional technical capabilities overtime >> what do you think it looks like five years out? do you think we will have chips or see stuff that i'll see that other people won't >> the technology is definitely emerging we have conversations with folks. we develop technology internally we were one of the first to be using 3d renderings in our design and a bunch of patents

for ri wear. we're excited about this category in $140 billion globally as more technology gets infused with this product, the tables just expand. >> young dave, congratulations it is pretty cool to have watched you guys effectively grow up from nearly the very beginning. we wish you lots of luck >> thank you >> thank you >> thanks. >> when we come back, an update on vaccine mandates from you fighted airlines and then congressman josh gotthaimer joins us to talk about taxes and much more. "squawk box" will be right back. ...aflac policyholders have been paid $37 billion directly... [aflac!] that's a lotta money. ♪ did somebody say money? he said aflac. well if they're paying out billions of dollars

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united giving an update on the status of the vaccine mandate. phil le beau joins us with more. there are almost 600 employees who have not gone along with that to date, who are set to be fired. >> reporter: yes, they will be fired over the course of the next several days once they do the paperwork and everything goes through here's an update where they stand with the vaccination mandate. remember they set this back in august then they finally said, look, it's going to have to happen by the end of december. 97% compliechltd there are a few that need a second shot. approximately 2,000 seeking a medical or religious exemption, those cases will play out over the next couple weeks. then you got 593,000 of the 67,000 employees so roughly a little under 1% who

will be fired, let go from the company. united is seeking or united should say i should say no expected impact on its operations because of the vaccination deadline passing and those employees being let go the company also as i mentioned, they've got about 2,000 employees seeking a religious or a medical exemption. there is a lawsuit that will play out over the next couple weeks by october 15th. united expects that to be finished in some fashion and they'll have to proceed in terms of giving them either a medical leave or a personal leave. those policies have already been outlined to all the employees. with regard to the 493 who were let go in an employee memo, ceo scott kirby with brett harve wrote for the less than 1% of people who decided not to get vaccinated, we'll unfortunately begin the process of separation from the airline per our policy. this was an incredibly difficult decision but keeping with our

team safe has always been our first priority if you take a look at shares of united remember, they will be deciding the vaccination exemption cases. those exception cases, that will happen over the next couple weeks, likely by october 15th. don't forget, coming up on "squawk on the street" at 9:15, you do not want to miss our interview with united ceo scott kirby. we'll talk about the vaccination impact on operations, which they say there won't be any with those 593 people being let go from the company and we'll also talk about the state of the business there has been a slight improvement in bookings for the industry over the last couple of weeks. is that a sign that perhaps they have seen the worst of this latest wave of covid and cancellations and flights. lots to talk about with scott kirby. we'll have that at 9:15. guys, back to you. >> phil, it strikes me have you covered the gambit if terms of company's responses, yesterday

you were with us with the ford ceo. his position was, we can't make people take the vax. it's something that needs to be negotiated with the union. obviously, united has unions, too, but they came out on thisened of it. >> reporter: right >> is that a difference in the language that they have with their respective unions or is that just a difference in exceptionation >> it's a matter of negotiation. it depends on the company. with regard to the airline unions, those discussions were taking place for some time because there is so much interaction between the pilots, the flight againdants and the cruise here at the airports with the public those conversations started much earlier than perhaps other companies in other industries and so they did work out that policy can you'll of their unions and early on, they had a lot of buy-in. i think within they announced this policy, something like 75 or 80% of the pilots and flight attendants were already vaccinated so they didn't have to go as far with those workers as compared

to other companies in other industries may have to when they say, look, we need to talk about some type of after vax mandate. >> it's interesting, a point that they have so many of their employees dealing face-to-face on a daily basis, too. it makes a huge difference i am looking forward to your conversation 9:15 on "squawk on the street" thanks very much josh gottheimer, giving lawmakers a rulestgg with infrastructure bills and all kind of deadlines. we'll be right back. you founded your kayak company because you love the ocean- not spreadsheets. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates

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welcome back, everybody. congress running up against multiple deadlines this week joining us is a man right in the middle of all of it. new york congressman josh gott h haimer -- gottheimer >> tomorrow we start with a vote on the bipartisan infrastructure billion that's roads, bridges, rails, the gateway tunnel between new york and new jersey,

water infrastructure, resources to fight climate resiliency to deal with tragedies like the impact hurricane ida had on areas like mine and i represent. i'll tell you, becky, this will be an historic we have trillion dollar physical infrastructure package with bipartisan support it came out of the senate at the beginning of august with 69 senators and fine republicans, everyone from joe manchin to bernie sanders to mitch mcconnell backed it. now we will vote on that this week of course, we are also still working on a reconciliation package. that's one of the social infrastructure side. that continues to be negotiated, making very good progress there. but first and foremost, the other bill and these are two separate bills the other will be the citizen infrastructure bill coming to the floor this week. >> but that's the big question, will your caucus actually go along with it? there are almost 90 members of the progressive group in congress who have said they won't back it unless you can get the $3.5 trillion deal agreed on

first. that sounds incredibly difficult because of senators manchin and sinema not wanting to sign off is it going to mass? >> well, i believe it will speaker pelosi doesn't do things lightly with the votes she gets it done as you know, she's come out and she's said she's going to help get the votes. so and the other really important thing here is that i really don't believe we got 2 million jobs a year on the line, hard working men and women of labor, that any small faction democrats will kill a key part of the president's agenda. we'll come together, unite we still have work to do before tomorrow it will get done whenever it gets to the floor, we will pass this and have democrats and republicans behind it i really, really believe and these things as you know are hectic before the end.

i don't see any democrat voting no for something so important for the country. >> it would be kind of shocking to see a key part of the president's agenda voted down by his own party. what has to give we know this has been a negotiations we know if they can't get the 3.5 trillion deal what would be enough to get that pushed over the finish line? >> there are two separate bills i think it's outrageous to hold one hostage. they should be considered on their merits on that second bill, there was meetings in the white house up until late last night, there are more meetings today. i believe we will get there and you know there is a lot of negotiation going on to give enough certainty that the road forward on the reconciliation package. i am optimistic that will happen but in the meantime, the idea that tomorrow we would not vote

on this bipartisan package that we have been sitting on here since early august the bipartisan support is critical to not just jobs, hard working men and women. of course, a key to our fight against climate change, investment in roads, bridges, tunnels. it doesn't make sense it will hold up. it will get done but i understand we need to work on reconciliation. it's something that ultimately we will all get behind so that's the key. >> nancy pelosi said she promised you and others in your group that they would bring that vote by monday i understand her reasoning to not do it until thursday if something happens, if the vote doesn't come tomorrow or this week, then what >> well, actually not only did speaker pelosi commit to that publicly in august but every single democrat in the caucus voted on the house floor to bring the bill to the floor this week. we started debating it on monday

as committed to. still working on that we will vote this week i believe we got to get this done so it will take working around the clock until it happens i was on the phone until late last night back on early this morning everyone is at the table, talking to my colleagues on both sides to make sure we get there and, becky, we will because we have to. the country wants us to. this is incredibly popular because people drive over those potholes, want them fixed. they want them home earlier. they are sick of sitting on trains, there is critical investment for transit, there is so much invested heave for clean water to get lead out of drinking water, electric vehicles, broadband in rural areas that don't have it you have democrats and republicans behind it. it's one of these things that has to get done. so i believe it will get done, with speaker pelosi pushing hard the president behind it, it will get done >> congressman, i know it's a busy morning for you, we

appreciate your time, take care. >> thanks, becky >> see ya. >> coming up, we will take a check on the markets and then dr. scott gottlieb will join us to talk the latest on the boosters and the fda and that news about kids and vaccine. "squawk" returns with all of it after this i can make a rustic cabin feel modern. i am a guidebook for guests. i can make an indoorsy person, outdoorsy. i give families a home, not just a place to stay. i am a vrbo host. ♪ ♪ we see access to fresh food being the global norm, not the exception. at emerson, our cold chain software and technology keep perishable food at proper temperatures, to assure its safety and quality. emerson. consider it solved.

brmp there you go, cnbc's 11th annual delivering alpha conference is here from spacs. it's all about maximizing returns in this new era of opportunity. you can still register and watch a great lineup live or on demand go to delivering alpha.com brent futures have come down a little bit from some of the best levels, still up the dow 127 had been up about 200. nasdaq up right around 100 points when we return back, dr. scott got a leave on the latest time line for the approval of covid vaccinations in young children vaccinations in young children and much more.

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. welcome back to "squawk box. pfizer and biontech have data in children 5 to 11-years-old to the xda. an article quoting people familiar with the process now saying the various reviews could push approval to late november joining us right now is dr. scott gottlieb, cnbc contributor. he shares on the boards of pfizer and illumina, his book. uncontrolled spread and how we can defeat the next pandemic is out now. as we said before, it's a great book scott, thanks for joining us

help us with this, though, i think there was, maybe not an expectation, maybe it was a hope that this could be out at least first shots as early as halloween, effectively, the end of october now we're thinking maybe a month later. what do you think? >> well, look, i wouldn't foreclose the possibility that this could to be out in october. you know, pfizer submitted the clinical do you that to the agency yesterday it's effectively a rolling submission, where they will submit the application different portions, portions, the main portions that have to come still are the cmc portions to review, that deal with chemistry, manufacturing, controls. those should be filed with the agency very shortly and at that point the formal eua request will be made the agency has a lot of experience they've seen a lot of clinical data remember this pediatric dose is a lower dose of the existing formulation. so they have all the experience with the existing formulation of the vaccine. so i think they will be able to move more efficiently.

i would say the end of october and i've long said end of october is a possibility it's an optimistic possibility if it slipped, it can slip from mid-november you also have to put against this bookdrop the fact that there has been a lot of turnover in that division inside the fda to senior leaders leading that division so that will put added strain on them typically, there aren't a lot of vaccines approved. that's a small group to begin with it's been under tremendous strain i still think the end of october is possible. if it slips, it could slip from mid-november which is where i have been all along. >> can i ask you a different question, which is of a hesitancy, in this case, that parents may have to provide the vaccine for their children there is a lot of parents out there, including myself and others, becky, i think will be getting their children in the vaccine as quickly as possible but i know a lot of parents that may not. i am curious how you think that will play out and what do you think school systems, private

schools will ultimately mandate and how it will work >> yeah, i think there will be a reluctance to mandate this so long as they're under an emergency use authorization for children i think there will be a reluctance by the cdc to contemplate putting this in the schedule until you have multiple approved vaccines towards the pediatric population pfizer is the only one available. so i think any kind of mandate from the cdc when this gets incorporated into the trial immunization schedule, states adopt that, it's more likely a fall 2021, winter 2022 event i don't think it will play out in this cycle. we've seen about 50% uptake in the use of vaccines among children for those kids now eligible to be vaccinated 12 and above. i would expect it will be a little bit lower for the younger age population there is a perception that younger kids are less at rick than covid and also parents tend to be a little bit more concerned about putting medical

products in otherwise healthy young children so i expect to see hess tans vaccinating the under 12 and 12 and above, we've only achieved about 50% uptake so i do think that that's going to be an issue it will play out as well. >> scott, how does that play out, though, in the workplace? and the reason i ask is there is a lot of business leaders that have put off quote/unquote return to the office until january. i think in part if you speak to them, because of this issue around vaccination for children, if you don't believe that a large portion of the country in terms of the 5-to-11-year-olds are going to ultimately take the vaccine or at least take it in the next six months, does that change that dynamic? >> i don't think so in the near term, because are you going to have multiple things going on at the same time. we will be getting through this delta surge of infection over the next couple of months, by thanksgiving we will be through the prevalence levels will

decline. will you have a vaccine available for unger kids, hopefully the fda confirms the data that pfizer submits to the agency n. a setting of lower prevalence and rising vaccination among children that should be enough those two colliding events should be enough to reduce the incidents of outbreaks in the schools. so people feel reassured if you look at the measles, mumps and rubella uptake, about 90% where i am right now the national average is about 90%. 94% in a high you're it's down to 90% now so that means there is a lot of states well below 90% a. lot of states well above 90%. i think we will see the same thing with this vaccine. here in the northeast, we may see an uptake. in florida, not so much. >> and then i wanted to ask you about your predictions around the northeast and maybe this is a selfish question but you predicted quite rightly of what the peak might look like in the south and the southwest

but you've also been predicting that it hasn't hit the northeast just yet, i'm looking here in manhattan where we are right now and the prevalence i believe is 1.62%, which happily is quite low, but you think we're still in for something here? >> well, look the longer we go without seeing an uptick in infections, the more than likely my prediction comes. i will be happy to be on the show in a month, six weeks, and admit i was wrong about new york see ac surge of dem that infection. i still think there is a risk. there is high prevalence here. high vaccination rates and prevalence a lot of people feel that is a pretty strong backdrop, with the spread in other parts of the country. i think there is a risk. we will see an uptick in infections and something on the order of 40 cases per 180,000 people per day which is a sizable epidemic. nothing on the order of what we saw in the south we are well into september

schools are back in. people go back to work weather is getting cold. those are all good signs we haven't seen an uptick yet prevalence is high, in new york city, it may be as high as 80% not prevalence, the immunity sorry. >> finally, i wanted to ask you about therapeutics we talk about vaccines every day. then we sort of therapeutics, we don't talk about enough. how quickly and what does the time line look like? i know pfizer has one. what do you think the true time line is now that you will be able to get a prescription from a doctor or a therapeutic? >> yeah, look, it's possible you will have a therapeutic before the end of the year, the clinical trials by pfizer and merck go well. those are the two that could be available before the end of the year potentially we're going to get a therapeutic. there is no question about it. just because then if it's not one of those drugs, it will be one of the others in development. this should be an easy virus, the drug i think the challenge will be

the trials are going to get increasingly hard to do in the u.s. because you have a population that's been immunized and exposed to covid so that will be the difficulty of getting these trials done we will get a drug for this. we certainly will have one by next fall. >> always great to see you once again, the book is called uncontrolled spread and we look forward to talking to you again very soon. we got a very big hour of "squawk" still ahead we will talk to senator john barrasso and new york stock exchange president staciy cunningham, michael novogratz's well, "squawk" returns after the.

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geico motorcycle. fifteen minutes could save you fifteen percent or more. good morning futures point to a bounce for stocks when the opening bell rings? coming up. the worst day for the s&p in months two voices you want to hear from, new york stock exchange president case issy cunningham and billionaire investor mike ral novogratz. they are firing hundreds for refusing to get the covid-19 vaccine. all employees eventually decided to get the jab we will bring you the details. and shutdown watch, the government is now about 36 hours

away from running out of the money. a bitter fight and the debt skrooel ceiling. what could go wrong? we'll discuss it you'll as the final hour of "squawk box" begins right now >> >> good morning. welcome back to "squawk box. the number six >> on the coffee >> is second coffee. >> big, though, big, big, empty. i have been doing one ice coffee >> and then one. >> i've noticed that. >> of regular. >> i've noticed that it's helping a little bit. >> the ice i do quickly it's

warm i slurp it down >> i haven't heard slurping. the dow is okay. up 155, getting back some yesterday. there is the ten-year. that's weird looking it was spiking a bit it's down about 1.5% but you did see some of the biggest percentage losses in the how long has it been since we said the tech-heavy nasdaq >> the worst day since march >> every time we said nasdaq interest rate sensitive utilities is the other one >> the precious yellow metal gold >> yes >> yes >> anyway, let's get you caught up with the headlines investors will be talking about, first up, united airlines will fire 600 workers who decided not to get

vaccinated however at the deadline earlier this week, united did say 97% of the workers had complied and gotten at least one shot about 2,000 are seeking religious or medical exemptions. don't miss our interview with united ceo scott kirby elon musk says the government should steer clear of regulating crypto currencies he spoke at the code conference yesterday in california. >> it's not possible to i think to destroy crypto but it is possible for governments to slow down it's advancement. >> so what should the u.s. government do? we had gary genzler on earlier, sec chairman he was calling it the wild west of finance what should they do, if anyt anything >> i'd say do nothing. >> you are not saying that >> yeah, i would essentially let

it play. >> this year musk's company tesla disclosed it has bought $1.5 billion of bitcoin. the value swelled to 2.5 billion in the second quarter but has retreated as crypto prices have fall him netflix says it's purchased video game developer night school stood the games will become the first mobile games for netflix which is including things other than movies and television shows. netflix shares are up 1.1% president biden canceling a trip to chicago. instead, staying in the capitol amid debt limit and funding talks. ylamui joins us. >> reporter: good morning, jim, democrats are looking for new options to funding the government as deadlines draw closer the house could potentially vote today on a debt limit increase and avert a catastrophic default

around october 18th. but while that has a good chance of happening in the house, it would be dead on arrival in the senate, because republicans are united against it. now, majority leader schuk schumer already tried and failed yesterday to get unanimous consent with a simple majority vote he rejected the idea of resorting to the fast track process democrats are using for their social spending bill >> my caucus will not stand for the irresponsible and dismonnest republican default plan. going through reconciliation is risky to the country and is a non-s non-starter. . >> reporter: now democrats have a better chance of getting the country open it lasts 48 hours. they are hoping to keep the lights on through december 3rd democrats have their own internal squabbles to deal with as well. progressives are threatening to

tank the infrastructure bill moderates are insisting on a vote tomorrow. we'll see if president biden can sort this out. he has been meeting personally with manchin and cinema, it's fair to say his agenda and economy are at stake in these fights back over to you >> ylan, thank you, i have been trying to figure that out. maybe we'll ask our next guest why. it's totally within the democrat's ability to go to reconciling littliation and raise the debt ceiling i don't understand, why sit dangerous. >> i know that j. powell is dangerous too we heard today it's a republican employ that we're not going to do, they can do it in a week easily they have the ability to do that so is it just one off? >> the timing. exactly how long it takes would be uncertain the reason biden is saying it's ricky, it's complicated.

they would have to take multiple votes on the floor in order to pass this, how long those votes would take is kind of up in the air. there is also some question about whether or not this could impact the reconciliation bill they are debating. the $3.5 social spending package. they have to talk about that and the other procedures so it's tricky it's complicated and that's why they are saying there is a simpler way to do this that's to get republicans on board. they have been saying, we have been telling you to do this since july you have listened. >> they are not going to do it it's weird joining us now with more on the spending fight, wyoming senator republican conferenceer senator john barras so so, once again, it's funny, both sides sort of say things and it sounds so sincere and true, but i never know what's really, could they raise the debt limit if they wanted to? is it dangerous?

will it take too long? is it too complicated, senator >> they have plenty of time to do it, joe but let's take a look at the big picture. the pig picture is the democrats are on the march to big government socialism they have the house. they have the senate they have the white house. this is blowout spending on a scale that we really haven't seen before in this country. every republican is against it because of the permanent damage it would do to our economy, to our country. so all of the things are linked together the debt ceiling the government opened and this 3.5 trillion bill. >> it's not nice to not raise the debt limit for stuff that trump spent, right, that you and trump spent? >> there are a couple things going on here. this is about new spending the democrats could easily raise the debt ceiling and they would have to do it by a specific dollar amount, using reconciliation they don't want to do it

because they flow the dollar amount is so large they would have to raise it by to pay for all this reckless spending that they want to do, that they know that would, one, ska irthe american people to add that much to the debt and it would also crush their chances of passing this massive bill to remake society in ways that i don't want to go >> is it false that some of this spending that was done in the last administration needs to be the debt limit needs to be raised to cover that is that a false statement that i hear thrown out? >> that is a false statement the debt ceiling was raised all the way to the beginning of this month and now we're talking about spending that the democrats want to do they want to raise the debt ceiling so that there is no ceiling between now and, joe, after the 2022 election. so, everything they can do for all of their socialist plans, all their big government plans,

that would be included and you wouldn't know how bad the debt really was until the numbers came out after the 2022 election if they do it through reconciliation, they have to put a dollar figure on it. whether that's $5 trillion, $6 trillion that's enough to scare anybody because we know the impact of that on the economy. >> we know that the president's staying around to try to talk to certain members of this party into supporting certain things senator sanders, bernie sanders, is urging progressives to not pass the infrastructure bill saying that all leverage on the larger package will be lost and you need to stand firm and not do that. do you think that between speaker pelosi and president biden, do you think that that passes on thursday >> >> well, that's the bipartisan bill out of the senate 19 republicans voted along with

democrats. i didn't porte it. but it ought to pass the house based on the fact the president is calling on it to be done f. the president had political muscle look, he's lost credibility all across the board on afghanistan, on inflation, hitting people, on the border, he's lost incredible credibility among all voters if he had the power, he would say let me sign this in a bipartisan way so that i can get this done. we see who is running the party over there it's the progressives. it's the far left. it's not just the far left it's the extreme far left. that's the food fight going on right now in the democratic party. these extremist views with massive spending that i think is going to hurt the economy and add to the debt. >> on the other side in the bifurcated party, your opposition party for you, you've gotten your colleagues, senators manchin and sinema, what do you think they owe owe have you

spoken to either and have an idea of what they would be willing to support for the bigger bill? >> yeah, i speak with both of them regularly joe manchin is the shair chair on the ranking committee they are much more realistic about what we ought to be doing and talking about. joe manchin has suggested that there be a dramatic pause in this $3.5 trillion even the "wall street journal" pointed out today that that's false accounting the dollar figures will be much higher than that you know, we got to make sure they hold firm and stay committed to their word. senator sinema has said she's against raising taxes. well, the democrats want to raise taxes on just about everything and everybody to start trying to pay for even a portion of this reckless spending bill. so those are the issues that are in front of us that's why i say it's a food fight between different components of the democrat

party, but this country cannot afford the kinds of things that the democrats are proposing this bill, even at 3.5 trillion, joe, you divide that. the numbers are so large you divide it by the number of the people in the country, it's over $10,000 for every man, woman and child in america what is that impact going to be on the economy long term and the debt >> in a separate note you saw united is going to fire some employees it looks like that are not willing to get vaccinated. 600 or so. did you see that news? do you have comments on that what do you make of that >> i saw you have scott kirby coming up in the next hour the ceo of united. i fly united i'm a 3 million mile flyer on united i go back and forth to wyoming every weekend to visit with voters at home i talked to a flight attendant the other day who said he's not

getting vaccinated he is willing to lose his job over it. i'm a supporter of vaccines, i have been vaccinated, i'm going to get the additional shot as well as a the i know vaccines work. i encourage people to get vaccinated i'm against the mandate joe biden has come out with and others have to force people to get vaccinated that should be an informed decision that people make for themselves >> and you figure that what are you hearing about the time line for children many people tie a drew return to work to normalization to not worrying about getting a breakthrough case. even if are you asymptomatic, bringing it home to your unvaccinated children? do you support that to happen quickly? >> well, you just had scott gottlieb on as a doctor, you had scott gottlieb on spending all his time and efforts on this we need to get the disease

behind us. we need to get people vaccinated we need to get people back and the economy backfireing on all cylinders. we're having big problems now with inflation, with getting people back to work. with the supply chain, all of those things, it's a result of the pandemic that took what to me was the strongest economy in my lifetime and to a complete shutdown of the government, we need to get back >> which taxes do you find the increases that they're being proposed right now which ones could you live with the any and it's not, if not, what would you do for discretionary spending, for non-discretionary spending, just to try to, i don't know, get to where republicans would like to be on the overall spending picture because i'm sure you think that deficits are too high they were high for the last administration, too.

how should we handle it? where can we cut spending? >> sure. you use the word discretionary spending that's a smaller and smaller part of the budget right now, joe. so much is the mandatory spending it's social security and medicare and now medicaid expansion and the democrats want to add a whole bunch of additional entitlements that our nation cannot afford to do every time there has been an effort to raise the debt ceiling, that has been in the past an effort to get republicans and democrats to work together to look for solutions whether that's ronald reagan an tip o'neal and trying to get medicare spending under control, whether it has to do with even president o'bowl with the mo simpson commission that didn't get the result they wanted it is always to force a discussion about spending. we have 11,000 babe boomers every day. i'm one of them who turned 65, who are now on medicare and social security.

people are living a lot longer those are the drivers of the debt and the democrats want to make it a lot worse by adding additional entitlements. it will just grow over the years. >> so i don't think president trump didn't want to address the entitlement or a means test. you got nowhere on that. you think that the next republican president, if there ever is one, i doubt >> there is going to be a republican president again, i can assure you of that it's a matter of what you want to grow. at the last hour you and becky said about the beginning of the day and the end of the day at the beginning of the day and the end of the day, republicans want to grow the economy democrats want to grow the government and that is the fundamental difference between our two parties and our two philosophies for the role of government and the role of the private sector in our lives. >> bottom line, senator, we got to get you a nielsen box

i think our ratings would, you saw every minute of our show today i think. >> i also like the senator's new glasses. >> they are warby parker >> it might be warby's >> senator, thank you. >> thanks, andrew. thanks, joe. hi, becky. thank you. >> we appreciate it, careful viewers. we do much more to come in this final hour of "squawk box. we will dig into yesterday's market volatility with nyse president stacey cunningham and billionaire investor michael novogratz. the s&p 500 since mid-may, next, we will talk to you about a brand-new forecast projecting fewer delayed packages this holiday season as always, though, there is a catch. we have that story and much more when "squawk box" returns.

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. welcome back to "squawk. salesforce saying you may get your holiday packages on time. but you are going to have to pay a lot more

frank. >> good morning, retailers will see the supply chain costs this holiday season increase by 30% this year to nearly a trillion dollars a. new record. >> we have problems right there. we will try to dom back to frank in just a moment some of the costs there, the supply chain are going up and we'll talk about that with frank in a little bit. i don't know if you saw the, oh, we have his sound back we're going back to frank. you with us? >> i'm here, andrew. >> you are here. >> i was having my own logistical problems. on a serious note, retailers will see the comply cost this is holiday season increase by 30% to nearly a trillion dollars brand-new record, but there is some good news for us consumers. the number of packages globally in danger of arriving after the holidayings, that's fallen 94% from last year's astronomical 700 million.

this year a relative only 40 million packages globally in danger of arriving late. 5 million in the u.s. at risk a. lot fewer delays, also fewer sales. overall, holiday prices are 20% higher year over year with u.s. shoppers looking to spend, global demand for clothing, that's up 14%. here in the u.s., it's up 37% and it's not all back-to-school shopping demand for luxury handbags is up 42%. this explosive demand is creating a big shift in how people pay. >> twice as many transactions will be via buy now pay later this holiday season. it's going to account for 8% of all orders >> salesforce is also forecasting that 60% of all sales this holiday season will be made through brick and mortar locations, walk-ins, online fulfillment and associates reaching out via social media.

that reemphasis on the store will only increase demand for foreigners and truckers to take goods from different companies on the same load it's also called ltl for example, one of those stocks, old dominion up more than 50% saia a big box store focusing more on using their stores for warehousing and fulfillment. joe, over to you. >> very good, frank. thank you. we got the audio all fixed up. so much better it's kind of really good tv voice, frank and i missed that >> i was going to sigh on sales if force, did you see benefit off, not going back to the office the world is going into a different direction. >> he said some people >> i think he thinks a lot more people than not. >> i think he was apologizing to his friends and colleagues who he thinks everybody is coming back it's happening now

he doesn't see it that way >> no. >> a new world >> let's make everyone a deal. everybody comes back we get fridays off >> there are a lot of people who are doing 40 weeks now that's the other thing. >> i don't mind coming in. so i will blow my, that means actually, that's about a musket. if i was going to really take a stand on something, it would be the four-day week, i don't mind coming here. >> well , there is welcome in th air. >> i think they will go back to the office to have four or five weeks. they will be excited to see the people they haven't seen and they will say, you know what, i don't need to see all these people every day >> i understand that nyse, stacey cunningham will be our guest for the exchange

the eyeglass maker warby parker, the latest view. listen to andrew and put his glasses back on as we head to break. here's some new sports megabusiness fanatics valuing his trading card business at more than 10 billion we got the ceo michael rubin joining us tomorrow morning at 7:45 a.m the first time when he talks trading cards, since he bought those mlb cards. >> deal making this was serious deal making by rubin. >> yeah. >> right now

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welcome back to "squawk box," the futures are in the green after big declines for the market yesterday we're off our highs for the future as well right now the dow futures indicated up by 140 points s&p futures up by 22 the nasdaq up by about 95. joining us to talk the markets, ipos and much more, we are joined by nyse president stacey cunningham it's good to see you >> it's good to see you. thanks for having me on. >> i think we need your mic adjusted do you want to try that one more time >> sure, it's great to see you this morning. >> i want to talk to you first

about ipos i know have you the direct listing with warby parker. ipos, in general, i was looking at the numbers i think it's $105 billion we've seen through monday of this week that kind of challenges the highs that were set back in the tech boom and tech bubble, way more than we saw last year we did see a little volatility picking up all of this is happening, now we are seeing more. i wonder what that means for the pipeline, does that mean, okay, we got to put a pause on things and hurry before things get worse? >> mixed results i would say a little of both last year was a blockbuster year for ipos we saw a railroad number come to market this year we've surpassed that we are seeing investors are being a bit more discerning. companies are making decisions based on what they think the market conditions will be for them some companies are pushing off the time line by a few months. others are still coming to market right now many being very well received by

investors. so when they have a good story to tell, it's still a company that investors want to be a part of for the long term we are seeing a lot of companies come to market and doing very well. >> you are wearing glasses, is that in honor of this direct listing? >> so, i have, i wear glasses. i also wear contacts and i felt like today i'm going to put unone of my pairs of warby parkers. i have been wearing them for years. it's fun to see them becoming a part of the nyse community today. >> why don't you explain direct listings, not warby parker, you video zip recruiter, others that have chosen the route of direct listing. what is that and why >> it's so interesting when you think about how this came to be. it's been five years since we first started talking to spotify about the idea of decoupling capital raising from going public so they want them to be a public company. but their goal wasn't to be a

public company they wanted the exchange price the opening trade and value the company and see the mark cap from that, not an ipo the night bfrlt. there were two drivers one cost to capital. so if you see an ipo pop 100% the next day, it looks like a great ipo, not so much if you were the one that sold it the night before that's driver for many companies. second, democratization of access when you think of an ipo, when shares are sold by a company to investors the night before, it's a subset of investors, there is artificial complaints on both the supply side and demand side. you remove those constraints, you don't have lockups, constrained allocations and you let the market actually set the price for the company as it goes public and all investors are on a level playing field during that moment in time. so retail investors and others can participate on that first trade. so we started to see spotify was the first.

slack the second a year later. now our warby parker is the eighth listing on the nyss there are companies looking for choices now as to how they go public we talk a lot about spacs, the more choices a company has on their path to the public markets than ever before, it's giving them a lot of opportunity to think about the reasons for going public and what itself the right mechanism for them >> that sound pretty good the way you laid it out. does that make me think the companies that take the traditional ipo rate a way of going back out about things are having a problem with these things or are retail investors suckers if they buy those ipos you think of companies like uber or something where there is a big drop or a pop at the opening? >> well, retail investors are typically not a sophisticate part of the allocation and ipo offering the night before their first day of trading so they're missing out on some of that benefit. but if you are thinking about the long-term investment in a

company, certainly day one isn't reflective of where it's going to be over the coming years and retail investors often have a haim time horizon, but it gives them that access in the first moment in time there are still great reasons to do a traditional ipo we see many companies do that path when they want to select their investor base to start in the hopes those will be their long-term investors. it doesn't always work out that way. that's what they're going for. the fact the they have choices they can think ab what makes sense for them and having control over the cost of capital and decoupling that cpap raise from when they go public is the goal of the direct listing we did file with the sec and received approval at the end of the year so we can have capital raise as a part of that. >> once that happens, what's the difference why would you choose the traditional ipo route over direct listing unless you can raise capital through that, too? >> well, some companies like going out on the road with the banks, telling specific targeted story to those investors

maybe not physically >> yeah. >> not physically. those will become virtually i think that's one of the things we will see post-pandemic, virtual road shows will be here to stick around. but they like know take are curateing that investor base and, you know, i personally believe if an investor likes your story, they are going to buy it whether or not they are a part of that allocation. there is i think a misunderstanding about the ability for companies to do that road show and to go meet with those targeted investors with a direct listing they do, do that you do a direct listing and go out and meet with investors and personally communicate the story. you also can brooft that out, that same information publicly to all investors and give them the same access to the same information that the institutions have. >> hey, stacey, thanks a lot it's great to see you this morning. we hope to check in with you again shouldn't. >> great to see you. exciting day coming up, when we return,

did fed chair j. powell's path get a bit nar narrower then michael novogratz making sent of the worst market days in months the cnbc spacs to crypto, maximizing returns in this new era. we bring you unparalleled insights, investment strategies, join some of the biggest names in investing you can't miss this virtual event. you can register deliveringalpha.com to be a part of it all day. "squawk" returns right after this y 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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welcome black to "squawk." we want to get back to the markets. big declines for the major averages, cnbc mike santoli joining us right now, mike, things are look up a little this morning. >> reporter: an attempt to stabilize. we have bonds yields ebbing back from yesterday's highs it's allowing this attempt it seems a little show-me situation. down 2% in the s&p yesterday, only gaining a quart over that loss, re-visiting last week's lows we finished yesterday less than 1% above early last week it's a lot of headline issues, evergrand or the debt ceiling and the budget stuff from the fed noise yesterday. but it seems much more about a

september of shifting styles big tech stocks weighing down the infections you have technical pressures in there. take a look against the equal weighted version in white. it opened up more of a lead recently, it's also higher relative to last week's low than the overall s&p. that itself the effect of those big growth stocks that have been weighed down in the somewhat related to the yield story also, take a look at what you would call real assets versus virtual assets this is the broad commodity etf relative to the nasdaq 100 so noditys thriving in a time of shortages and everything else. so this is only month to date. it shows you this is a shift relative to people positioned going in any longer time span, you will see the nasdaq has trounced commodity. so it's not clear this is the

big inflexion point. it shows you we've adjusted to a slower pace of third quarter earnings growth at the same time we think the economy might pick up again and the fed might get a little less generous i think that's all the mixed signals we are trying to assimilate in this month >> not too much going on a little paying attention to, my guess is, it's not going to get much easier as we get into october. >> at least not initially. yeah it seems like once you get on act 18th virtual deadline for one the government needs to be refunded with a new debt ceiling. that's pretty much how long it tends to take. i think as we get into earnings season, it's a little distance between now and then >> thanks, mike, see you later. chairman j. powell facing tough questioning from the senate banking committee after the dust settled, his until nation for a second term could be more of an uphill battle steve leishman joins us, wow, this was a doozee yesterday. >> the senator was publicly

declared, the opposition of fed chair's renomination at yesterday's congressional hearing and wall street beginning to harbor at least some doubts about a second powell term. >> over and over, you have acted to make our banking system less safe and that makes you a dangerous man to led up the fed. that's why i will oppose your renomination >> powell largely rejected warren's claims he weakenned the banking system, pointing out bank capital is at historic highs. other progressives criticized him for monetary and climate change some feds see lower odds of a second term. they write j. is in real trouble. another writes, is powell transitory another says powell's pros spepths are less certain than they were a month ago, in part due to the trading controversy that led to the resignation of

two fed bank presidents. one says powell remains theed to-on favorite pointing out, i quote, from this piece. if biden appoint a democrat to replace powell, he risks owning the inflation outcome outright the president when it comes to economic issues, president biden has often sided with the progressive wing of his party. but no other senators joined warren yesterday several prominent democrats said they have supported powell it's hard to imagine republicans holding out for a more conservative chair from president wide zbln that's right, as joe was pointing out earlier, the "wall street journal" lays out the case that republicans haven't been happy with powell either, they feel he has been too dovish for too long in allowing the tape tore get put off on hold for so long and beings so reluctant toward raising rates.

>> some would say being roundly criticized by both parties is the right base i place to be. >> that's what i said this morning. if everybody especially on the far wings thinks you are doing it wrong, you are probably doing something right. >> that's possible but i think ultimately the outcomes are what will matter he here if he doesn't have to raise rates, he will then have done a good job. >> i think the biggest question is the horse trading that will start taking place around the current negotiations with the $3.5 infrastructure bill if [ inaudible you will make it bad now, what do you later trade than that to make good. who knows? thank you. >> but let me just one more thing, which is remember steve's first rule of the fed. the fed is there for politicians to blame so that's why you would keep

powell >> okay. though balanced, yeah anyway, coming up, market insight and analysis to get you ready for the trading day ahead this all comes after stocks took a tumble yesterday ♪ jim cramer will join us with millionaire investor michael novogratz. don't go anywhere. "squawk" will be right back. "squawk" will be right back. >> talk to your broker. ten-x does the same thing, - but with buildings. - so no more waiting. sfx: ding! see how easy...?> don't just sell it. ten-x it.

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hopefully not today's big slide as well what's setting up to be the biggest, the nasdaq saw the biggest drop since march and the s&p the worst day since may, investors sweated over the spending drama in d.c. joining us is the digital founder mike novogratz we will talk a little crypt as to in a second let's talk about the markets, themselves and what you think is happening on the ten-year side and equity side as we see this rotation and anxiety start to emerge in a real way >> yeah, listen, we're more hawkish spread than people expect period. and i think that with the combination of broad nervousness because it's been from every single macro, people say they want to be short, but maybe rates are 100 to 150 basis points the wrong price and so when they start moving, everyone gets nervous like this

can be the time. right. we've had 25 basis pointmove i this ten year. that's basically shifting from, you know, the fed being a little more hawkish on rates. but the down, we've got you know 4%, 6% inflation, you know, cpi numbers. but is it transitory or not? people are worried they have this stragflation. bond yields are up if you look at the chart, 160 should hold the ten year if it doesn't, where does it go? so you will get a little pause maybe. i think we'll know in the next couple days, a ten-year pause here they will find some balance, but you know the bond market is a giant bubble it's been a bubble for a long time you never know when bubbles pop. you never know when confidence goes and you have powell's reappointment maybe more in question he is a dove

everyone thinks he is a dove until he gets re-ray pappointed. stocks have shine in swelling. not everybody thinks evergrand is so contagious >> you said we all know there is a bubble in the bond market. we all know that nobody knows, of course, when it's all going to go up, you know, it's going to blow up. are you suggesting this is the moment >> what i'm suggesting is if you never know when the moment is. so when it starts moving as a trader, as an investor, as a measure. you get nervous. if this is the moments, i'm not short enough and you know, would you feel foolish in a year if bonds were at 3% that you weren't really short at 150 so we all get myopic of trading in small ranges because that's when we have been lulled to sleep over the last few years, right with low interest rates forever. you look at the analog, where a

ten-year basement became untradeable. so it's just, i think it will be endemic to the nature of the market for a while that there is going to be apparent nervousness when prices start moving >> so what does the novogratz family do on a day like today? >> you know, like today? >> i'm short fixed income. i think that's a great hedge against. i'm crypto long equities, but it wouldn't price me if 160 holds and we get sxwook into a 140, 160 ranges for a while i think we'll have substantially higher yields a year from now. >> in terms of equities, how do you think about that right now >> listen, one of the stories that doesn't get told enough is the amount of corporate. i'm almost positive it's over a

tr trillion a year. this is a really weak period, and so could stocks sell off we're 4% from the all-time buy in the s&p, so let's not let our hair fall out. >> too late. >> that's right. so i i think we'll watch it closely today. it field pretty weak for me. it wouldn't surprise me as well if it went down another 4%, 5%. >> we talk about crypto being core rated, not correlated what is it at this point >> i said this last week crypto had a huge run in the quarter, in general, and we're at a consolidation mode. i think 40,000 is an important level for bitcoin to hold, 2800 in ethereum seems to be an important level to hold. we're still in those ranges. my guess is it's not until a third of the way through the fourth quarter you see the next

surge. that's like when you go to the racetrack, the horse that turns the corner on the way to the finish line usually wins in investing, you know, the great asset class, as it gets close to the year end, the asset class that's doone the best usually has a great finish it's just the psychology of traders and investors, so i'm still pretty optimistic, but i think we have more chop to go through. >> house important is it for powell to remain in the job? is that part of the calculation at all >> you know, it's interesting. if powell is not in the job, it creates some uncertainly, like, is biden going to put someone more hawkish in or dovish? you know, the democrats have an agenda, which is a social agenda, for to rebalance the economy. the senator from wyoming i thought did a good job of describing what is at stake here, right? we have an economy where the top 5% have done much better than the bottom 50, and the democrats

want to try to rebalance that. does america want it it's razor sharp, right? it's a razor sharp election and razor sharp senate if powell goes, i assume that biden would put in someone more dovish if the market loses faith -- every single fed governor i've met, have been a man or woman of integrity. they might make mistakes, they might have blind spots, but we have a really decent civil service of people who work so this scandal, which is all political is a shame, because those guys, you know, rob kaplan i know, maybe blind spots, but i would bet my, you know, my last dollar on that that there was no malice in any of these

investment there was no shenanigans going on. >> mike, thanks for your perspective, as always look forward to talking again. >> you bet. >> is he in on the warby parker deal? >> he doesn't spend $ 90 glasses. he spends more i think the super-premium glasses in addition to the value-oriented. >> what'sle deal, they made that name up? >> i believe they did. >> warby parker. >> it's a great name. >> has a ring to it. >> i have to put my glasses on we have jim cramer coming up. >> he joins you now, and specifically, jim, i don't know whether you actually got in touch with micron, but dowel them i told faber we almost need the

penguins sit i saw a lot of commentary, where they had down sequentially, but it's not their fault. >> not only that -- right. you got it right i would even venture to say the six price target cuts are not equal to the facts that gross margins will not be that bad they have to sell stuff off at a fraction of the price. as you said, know, it's not even their problem. it's a shortage of the chips that go. it would not surprise me if this stock didn't make a valiant stand. buyback will be real, the analysts were late to the game they said the next year is going to be good i kind of -- i'm not poubding the table on it, but that uniformity does tend to make you feel it goes the other way, doesn't it, joe? >> but what is the idea that we don't really know whether this

is what they're telling us, or it's the beginning of a slowdown it was feet or famine for micron. >> it's over. >> you don't think this is an extended issue with demand or something else -- >> no. joe, there was a time when this was a pc play. we know there's a bit of a glut of pcs, but if marc benioff is right, if everyone is not coming back to the office, we'll have to have a lot more pcs i don't think this glut last, and i do believe that sanjay is doing a lot of things that are right. this is a different micron it sells into a lot of different markets. andrew, by the way, maybe one day they'll set to the eyeglass market i think they dodged your question about coming technology in eyeglasses. they dodged it, andrew the question is, is that a benefit to warby in the end if

that's the way they go, or the benefit to some tech company >> when you're seven times sales, which is what it is at the reference point, they better be a technology company and not a [-and-mortar company if i want brick-and-mortar, i go with dutch bros. he's always entertaining let's have a virtual cocktail with him. >> oh, we're done. see you you tomorrow

welcome to "squawk on the street." i'm david faber along with jim cramer, we live, and carl quintanilla is live at the conference trading begins 30 minutes from now. you can see an up open, at least thus far