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

certain the worse days since may. >> tesla's ceo says the stock price is too high. we'll have the highlights from code where elon musk targeted tax avoidance criticism. hundreds of airlines employees face termination for failure to comply with the vaccine mandate. we'll be joined by ceo scott kirby in a few moments >> he was subdued. i want the boisterous. we have. >> we talked a lot about tech and the move upwards in rates, so to speak anything change to

for you? >> natural gas may be peak ing that and the incendiary comments from senator warren? >> i thought that was over-the-top, and i'm the king of over the top. >> we might as well listen it was during the hearings yesterday, but hear what she had to say about powell. >> over and over, you have acted to make our banking system less safe that makes you a dangerous man to head up the fed that's why i will oppose your nomination. >> many people are scratching their heads as to what she's

referring to. >> in what way >> she didn't detail how he's made the banking system less safe >> he put the word -- >> does it matter that warren says this? does it make a difference? >> it got people to speculate. it got her on tv i know she's better than that. i wish she would take that back. she may think that banks are less highly regulated, but what are you going to do? the banks have gotten better do you just stay atop of them even more? i don't know, are banks -- i'm speaking to anna boutine tomorrow, from the largest bank in europe. those banks would wish what we have

>> does it have any -- you had ever evergrande. >> i pup up -- one of them goes right, then we can bound, but we're seasonally in bad shape. in reality, it's very good, there's still a lot of people who are trading options furiously with robinhood that's an indicator to me there's too much excessive speculation in the market. >> i love how you watch that. >> i do. >> i know you do. >> that's called pump and dump that's pump, and later on you've got dump. >> lucid will have a good --

starting protection. >> there it is. >> has anyone talked micron, because it wasn't the report, it was the guidance >> wedbush have this >> accounting a more modest demand get >> i'm in the latter camp. he didn't guide. >> it means there's no glut. it's glut or famine. >> we don't have that.

keeping d-rams, and think allos. >> we did spend a little bit of time on it, but i agree. >> twice the number of batteries of mr. tesla, and cathie woods sold a huge amount of tesla. i don't think this is easy sledding i would rather back farley over musket. >> really? >> yes. >> we'll go to carl, and get back to some of the mortgage specific stuff on the markets, but musk had a lot of things to say. i want to send it over to you with that. >> yeah, david, really expanse tariff discussion yesterday between elon musk and cara swisher. they talked a bit about

crypto-regulation, where that's headed, very long talk about the economics of space and rocketry, but neffably, it comes back to the topics of his wealth, talked about the onning that are vesting. more jokes about the s.e.c., or as he calls it, short seller enrichment system. take a listen. >> i have gone on report and i think our stock price is too high so, what am i supposed to do, you know [ laughter ] i'm not -- >> as for his personal taxes, he did respond to the report about billionaires' tax structure. he didn't respond to their request for comment at the time, but he did add it overlooks the amount of money he's committed to tesla from the very beginning through a long cycle of risk.

>> it was the first in, i'll be the last out, there are many times it looked like the companies -- and they did, they skirted bankruptcy many times. i never tried to take money off the table, and in and out it's being turned into a bad thing. that's messed up my top marginal tax rate is 53%. >> which you said will be an issue in his life as those options begin to vest. he'll have a large tax bill that comes due. it's funny, for all the innovation that musk talks about, it was kind of a dark conversation about the threats to humanity. a.i. safety was a big deal to him. he calls it the second biggest threat to humanity, behind the declining birthrate around the

world. a lot of discussion about the philosophy, the profound moment, as he put it, of going to space, put ago self-sustaining city on mars and base on the moon and what that might be about the university and the meaning of life, as he put it a very broad discussion covering all the kinds of things s minor things like the took to where the human race is headed. >> that video he did about how he wished it had been contained reminds me very much of "terminator 2" and how we wished that somehow we had not let that out of the box "terminator 2" obviously went -- >> that's fiction, just to be clear. just reminding people, for now it is reminiscent of it. >> musk has been worried about ai, and famiily called you a

simulation years ago, but you have kind of disliked him since -- >> that put me on the plain of being allowed to dislike him one of the things i thought was interesting, he's not as worried about covid as other people. i think he's been your view, just that he was early, which is get on with the show. >> if you're vaccinated, get on with the show. >> what is the point i was out with people, asked if they were all vaccinated, what was the point of being vaccinated >> that's become a psychological barrier for some listen, there are valid reasons that some people are still concerned and don't want to fully partake in society others are using it as a reason not to go back to work, even though they're doing everything else obviously there are some employers frustrated by that back to musk for a moment, he made the point he's going to exercise these options, pay the

taxes on them, he's been there throughout, taking enormous risk, all true >> and no one cares that he plays ball with the prc. the big issue is not necessarily zucker better and how horrible he is, he may not be as horrible as we think. i think the big issue is who kowtows to the prc and sells a lot of product, versus they say they are not a force of good, i'm not going to sell in there carl, this is going to be the issue of 2022, and everyone wants to skirt it. why? because everyone wants to sell into china. >> i agree a lot of the reaction to the chat with cara and musk, what he said about china, he thinking things will head in a more positive direction he was asked about a crackdown and somehow tied it to covid, arguing that their structure is

much more tied to in-person meetings, and once the restrictions loosen things might get better there, but on the other hand was sharply critical of the white house and the president for not inviting them to this ev summit with gm and ford, calling the administration biased and run by unions so directionally there's an argument that musk was favor china's rhetoric over the u.s.' today. >> thank you, carl has it dead right. that's what going on and the people who want to make money. i'm saying that zuckerberg actually versus china, the issue, zucker better may come out and fare a bit better than the bad guise. >> very interest, and will continue to be we also know there are changing responsibility of the corporations and pressure on corporations to do things and participate in things they wouldn't have previously, and one does wonder whether they

will also make that choice when it comes to decline, and listen perhaps to some of their shareholders when we come back -- we got to go united airlines' ceo scott kirby is here on the company's vaccine man mandate, and a lot more. if you wake up thinking about the market and want to make the right moves fast... get decision tech. for insights on when to buy and sell. and proactive alerts on market events. that's decision tech. only from fidelity.

feel stuck with your finances? ♪ ♪ move your money to sofi. earn up to $930 when you download the app and feel what it's like to get your money right.

united airlines begins the process of terminating 600 workers who nailed to comply with the vaccine man dade. phil lebeau has the ceo scott kirby with us. >> thank you, scott, for joining us this morning. you have 97% compliance, saying they have at least one shot, fully vaccinated in the next couple weeks, if they aren't already. yet you're going to have to fire 593 workers. what are your thoughts about having to cut those workers? >> look, i'm really proud and gratified that the united team, excluding the people who have applied for exemptions, 97% got vaccinated it proves that vaccines do work and you can get a huge percentage of your workforce

vaccinated it was never going to be 100%. i feel bad for the 593, less than 1% that are going to leave, but we're focused on doing the right thing for united airlines. it's great to have the ability to just move forward now. >> scott, after you let those workers go, and you have 2,000 who have applied for a religious our medical exemption. likely those jobs will either be put on some type of a leave, but they won't be working the front lines, so you're looking at roughly 3% of your workforce who will not be on the job, so to speak, in the office or out at the airport, wherever it might be will there be any impact on the operations because of those jobs not being filled immediately >> absolutely not. in fact, it's quite the opposite it's such a small percentage, and we planned and prepared for

this, we're now able to confidently run a strong operation. if you look at the federal requirements which could go into effect as early as december 8, you know, i know other businesses, but also particularly other airlines are worried about what it means for their operations come december 8th. at united airlines, there's no worry at all we'll have everyone already vaccinated, just really is great. because of that, because everyone is vaccinated, we will know that we have met any of the requirements that will be put in place by the federal government and be ready to run a great operation with a fully vaccinated workforce >> scott, any thought of mandating they take booster shots if it's ever approved by the regulators for the broader population will you say at some point, let's say it's approved in january, february, whenever it might be, hey, you've got to get a booster shot as well will that be a mandate >> i think it's too early.

the data and science just isn't robust enough and done to make conclusions on that. we'll follow the guidance of the experts, the cdc and others, to think about that decision, that's far enough in the future there's not enough evidence yet to have an opinion on how that will go. >> scott, jim cramer, thank you for coming on "squawk on the street." yesterday the pope said that if you're absent, it's unjustly absent, and he's not going to pay people, because he believes the vatican should be 100% vaccinated in the traditions, the old testament, nor the new testament says you should do anything but choose life, which would be the opposite of not taking a vaccine. that's just two religions, but where does this come down?

iffed pope zest and the old testament can be attributed to saying you can be vaccinated. >> my personal opinion, it's hard to find -- the only one i know of actually is seventh day adventist that have religious restrictions against it. our lawyers have, at least for now, asked us to take a much broader perspective on religious exemptions, and because we have such a small percentage, less than 3%, and about a third of those are medical exemptions, so 2% that have applied, we're now down to a level where we can work through those case by case. some may end of getting denied as a legitimate religious exemption, some we may move them to a job where they don't interact with people, because it's a small enough number, bur our goals is not have any of those employees in

customer-facing areas until covid is over. >> scott, it's david faber as many companies try to get employees back in the office, start to deal with potential national mandates to get people vaccinated, what would be your advice to them, other ceos that are trying to deal with this in terms of how you get to at least 97%, 98%. >> just do it. one of the greatest tag lines in history. we started this seven weeks ago by the way there were any mandates anywhere else here's the date, you just have to do it we've had discussions with people, but haven't argued we said we can agree to disagree i've seen bulgarian doctors and others that says vaccines are bad. we agree to disagree on those things, but this is the policy at united airlines you just have to make a choice over 99% chose to get the

vaccine. our workforce is broadly representative of the broad population, workers in all 50 states, all political stripes, brought representation of the workforce. i think our experience is what every company will have. if you stick to it, everyone would get to around 99%. >> reporter: i need a quick answer on this one. >> okay. >> reporter: what are you seeing in terms of bookings as the covid cases start to ease a bit. are bookings starting to improve as you look at the fourth quarter? >> they absolutely are we plateaued, started to come back business bookings are back to the previous peak in june. the opening of the transatlantic means our atlantic bookings have been higher this week than they were for the same week in 2019 we appear to have bonnelled out. getting everyone is vaccinated in getting that recovery, but we

appear to have bottomed out. >> scott kirby, ceo of united airlines joining us from the company's headquarters in chicago. >> thank you very much >> thank you, scott. david, it will be interesting odds it plays out with the airlines and other companies, because there are other companies that have these vaccine mandates and see what the compliance rate with though those. >> so interesting. you heard him, just do it. that's what kirby says phil, thank you for bringing that to us more "squawk on the street", straight ahead

we see breakthrough medicines getting to patients in record time. at emerson, our automation software is empowering pharmaceutical companies to accelerate their production of critical vaccinations for the world. emerson. consider it solved.

let's give you a look at the premarket leaders on the s&p 500, as we head into trading you can see dollar tree -- >> i have it that's for my mad dash. >> we'll do dollar tree in the mad dash stand by it's coming up, after this noo

if you wake up thinking about the market and want to make the right moves fast... get decision tech. for insights on when to buy and sell. and proactive alerts on market events. that's decision tech. only from fidelity.

>> announcer: the opening bell is brought to you by - exactly one minute until we get started with trading at the nyse, on what jim and i like to call hump day. >> and we're getting a lot of screaming here with warby parker david, they are the best week for the combo store, increased buybacks, and they are opening up dollar tree plus furiously. i think it's going to work it's lagged.

[ cheers and applause >> warby parker with a direct listing, going public. they were a guest earlier on "squawk box. obviously a big lift for them. >> very, very tough interview by andrew ross-sorkin with these guys, the margins of not that good, they've not been able to increase the direct to consumer. if you have a brad name, this is the time to come public. they have adjusted ebitda, of course. >> over at nasdaq, it was humirodx you're not a believer in warby >> no. >> you might be a good sign for them being negative.

>> usually there's no analyst coverage they're seven times sales. i'm uncomfortable seven times sales for brick-and-mortar company. i they people might have a good experience, they might buy the stock, but you know that's not enough >> you will pay that for technology companies. >> they have to inventory issues and -- use know about zoom, whether i want to pay that. >> it's interesting you mention zoom you think about that as well, given at i height, the multiple to revenues was extraordinary, but zoom is far from its height. you mentioned it this morning. it's something we've been talking about it now is almost here, an that is the vote of

shareholders of five nine, whether or not they will accept the offer, and they're not of course they're not. there's not a chance they're going to. >> even though the prices -- >> it's well below the price it inhabited prior to the zoom deal zoom stock has gone down down down, and you can see what's happened there the question to come, jim is what will happen, has there been enough negotiation between the two parties that zoom will be able to increase its consideration that they will of course in favor. from what i'm hearing, they just haven't gotten far enough along. most likely they adjourn the vote tomorrow. we see that. they won't vote up or down, they'll just adjourn. >> they need a platform, an ecosystem. >> if you this i it's vite, zoom will have to race mostly all

cash and they've got to go, probably 40 bucks, at least >> zoom has to be more than -- it has to be an ecosystem, contact center the call center -- this five nine has good growth if you're cisco, which is up against them with webex. they have all the accoutrements. i think cisco has a consistent product. i would not want to go against chuck robbins, other than in football he also lives the braves and the niners he's backing winners, two out of three. i'm saying chuck is making inroads in the enterprise. that's why i think this deal is so necessary for zoom.

>> they're going to have to pay up for the negotiation that got them the deal in the first place. you know, you've got to get some sense of shareholders that what five nine are going to accept, if the vote was held tomorrow, no way no way >> people are talking about every single ipo, whether it's dutch bros, no one is talking about substance. you're the only guy talking about the spac world blowing up. >> yeah. one deal had 2.5 redepositions, that's the lowest i have seen. it's going to be acquired by a spac, already a 4, and amicus will own 30% of the new company

if, in fact, there are no redemptions. of course there are always redemptions, but one of the stocks is up nicely, f.o.l.d >> it's a real company. >> you know that company >> yeah. >> you also know cyrus one, too. >> how about morgan stanley, another downgrade. they're talking about it being boring now, david, the one thing you said to get is higher multiples in a banking business is boring. i think it deserves a much better price-to-earnings global that he's getting. yocht to own morgan stanley, it's not exciting? >> the stock has had -- goldman and morgan both --

>> my charitable trust owns it, i would buy that right now if i hadn't just mentioned it, therefore i can't buy it apple facebook, alphabet, microsoft are all up, but not keeping up with the s&p. the nasdaq is up about 0.5%. what are your thoughts >> don't be a hero pick one, if you want. facebook i can talk about end endlessly. really "wall street journal" has a lot of insight -- >> yes, there is i have read every single one of them. >> did you read "the atlantic" that we needed military to stop zuckerberg we are in a moment where zuckerberg is running a shadow country. >> he doesn't have a lot of

divisions. >> stalin said that versus the pope, who favors vaccination, to point that out someone talked about -- we have a question. >> okay. >> come on, who doesn't like you in the media >> marc benioff. >> exactly >> i said, who was marc benioff? by the way, those days are over. he and he, we're like this now. >> i know you are. he was in town and i haven't heard from him. >> he was going to call you. have you look at this amazon astro robot -- >> we've got to get to carl. benioff was at code, saying stay at home. they've been strong at

salesforce about that. >> it place into the salesforce playbook as they heap corporations recreate their infrastructure talking about the difference between digital headquarters and physical headquarters. >> take a look at the last 18 months my digital life and my digital headquarters is way more important than my physical headquarters we have almost 75,000 people now, they're not in their towers we built these gorgeous towers they're mostly at home, and that's fine, and so their digit at infrastructure is extremely important. the digital headquarters is just way more important than the physical headquarters, and we're not going back that's why we slack. >> morgan stanley has some notes out about reits. in new york city, apartment rates are up, but office rents

are down as people are moving back into cities, but still don't have need to go back to the office necessarily. >> no, and i saw some last night, they can't even fill the demand >> stay at home, right >> you can read trafr, he talks about the ohana of giant lobbies, buildings, you need to get together he blew it um. marc is very vaccine-centric for marc, but you can pivot quickly, but he was the most anti-covid of any ceo i know. >> david, huge implications if you game this out to an aggregate level, where people have a good time living in

cities, want to be around other people, but still have a digital work life. ties into the metaverse, which jim thinking we'll all do this -- >> we always will be together, but we are the dinosaurs already. they did dominate the planet for 400 million years, so they had a good run. >> good numbers. >> but carl, it comes up every time in every conversation, this is a grand experiment were just in the midst of beginning now, which is people are not coming back to the office five days a week that simply will not occur in most places. maybe you worked at goldman or blackstone, okay, but for the most part, maybe not we'll see about the question whether it's good for people to be working from home all the time, the questions about culture. the questions about how you on board people who are not connected to you necessarily in the physical way with any regularity so many other things that are

not as easy to measure as simple productivity, which i question some of the measurements of, jim, are going to be so interesting to see how this works out. >> i myself am incredibly uncomfortable. i wore my suit last night to sleep. i like to be at the offices. there are some who are creatures of habit i think it's necessary to be with younger people and what they're up to. how do you train a younger person on zoom how do you do it >>enyl environment here at code, it's been environment. people are back, first time since the pandemic, and they're look, how did we ever do this three times a week, going to various conferences, flying around the country yesterday a co-ceo said maybe it's the second business trip

you do not take. maybe we'll see a big jump in shares of amex, and europeans start traveling here, corporate tv, goes up. maybe there's a lower ceiling than we think right now. >> i tend to agree with that the conversations are, i will always get on a plane to win business, but once that business has been won, a, the client isn't that interested in me coming for that meeting or dinner, and b, i'm not that interested if there's a feeling that zoom or whatever cigarettes it done is enough? that's what i wonder you'll always get on the plane to win business. >> but the way the earnings are being set up for next year, the budgets are down you see the expense structure is getting better it's because you don't have people going out and buying that bottle of opus one >> but the metropolitan areas, the office space, how it will be

changed, what it actually means for all the businesses that rely on workers coming to a metro area, it's -- i mean, here we are, it's a year and a half and they're still not back. >> one of the reasons why i have more faith in jay "dangerous" powell, according to elizabeth warren, we all needed more cars than we thought because we stopped going to the office. you can raise rates, but that will not stop that farley knows that. farley can't meet the demand at ford how can we be critical of jay powell for a major sea change in our country that he had nothing to do with >> i agree the line of the week for me was we're seeing reply chain effects that we have never seen before i was looking at this quote from the daimler ceo -- hopefully we're going to work our way

back, but it's going to take a long time. you have a supply chain that's dependent on not having any specific events like weather or hurricane, or whatever else pops up normally there's some plasticity in the supply chain, but right now it can't simply afford surprises. >> i do want to say costco, home depot, lowe's -- >> well, let's -- carl, of course, will continue to be at code sharing -- go ahead, carl >> i was just going to say, i noticed on the tape this morning, 150,000 seasonal workers at walmart it will be interesting to see where they find them >> it really is. though we didn't talk about the

amazon astro here's a review, would almost certainly throw itself down the stairs they keep playing that darn music every time i have something interesting. what is that about >> we've had enough. they don't want to hear from you. as we head to break, we don't have to hear from jim anymore. [ laughter ] let's look at how markets are faring this morning. go out with benioff again, have breakfast. let's go to the bond report as jim goes to get breakfast with benioff. we've focused on this for often reasons. it's had a broad impact on equities the ten-year note you can see there. we'll be right back.

it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. get ready for it all with an advanced network and managed services from comcast business. and get cybersecurity solutions that let you see everything on your network. plus an expert team looking ahead 24/7 to help prevent threats. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities.

that was wealth manager ceo speaking earlier this hour i was talking to mickey dress her. we're going to make him pay next time i've never put in an expense bill in 25 years >> that was expensive, too you heard what she had to say. >> bubble bubble, toil and trouble, does anyone ever come on to say some stocks are enexpensive versus their growth rate i do

i think stocks have cooled off in the last few days and are getting interesting. >> like what >> like what >> yeah, give me an idea. >> i'll give you one that i think is a high growth stock that is amazing. upstart, expensive at all getout, but that's the wells fargo. charley sharp has fired everyone and now, i guess, he has to fire himself. >> jim, look at that stock >> it was down yesterday >> there's wells fargo and great friend of elizabeth warren >> you're making a joke there, right? >> i'm kidding, yes. >> upstart 248 times earnings. but when you talk to dave, we are all going to be -- this is it the end of fico, since it was

a ridiculous measure that give said you no insight whether you can pay back a loan. i think it's a joke, verses what he's got >> well, maybe ever grant should center done a few more fico scores possible default of the very large property company in china. take a listen. >> everyone's talking about evergrande as if it's a country. it's a company it's not a small company but it's not the largest thing happening in china it's only 2% of the real estate debt market in china, only 1% of the china/u.s. dollar bond market and less than half a percent of the china local bond mark is it a leman brothers no >> the whole le, hman thing is a false narrative.

30% gdp, it's been very over -- >> wealth creator because the stock has not done a great deal. >> but is the government going to be after evergrande and the next or are they the outliar >> listen, they did sell stake in a bank that has -- >> who to? >> the state >> got to love it. the chinamen are creative. and i'm not talking about the pajama party, so you know. >> okay. you can still register, by the way, for delivering alpha. right now. got a great afternoon lined up by the way, gursner and we'll talk a lot of sterling afternoon session kicks off at ghhe sp rit retotrading.

working at recology is more than a job for jesus. it's a family tradition. jesus took over his dad's roue when he retired after 47 year. now he's showing a new generation what recology is all about. as an employee-owned company, recology provides good-paying local jobs for san franciscans.

we're proud to have built the city's recycling system from the ground up, helping to make san francisco the greenest big city in america. let's keep making a differene together. stop trading only 15 cents down down three

boeing, we've got an upgrade and they're saying the bottom is it. i think it's an important call >> i'm glad you mentioned that >> went off without a hitch. this is the test in china. i think china will help. chinese communist -- and david, i want to talk about afirm they're going from being a buy now, pay later thing to a ecosystem and -- >> remember, we're running out of time but how is it doing? >> credit card, debit plus, cashback, crypto trading look at that show. >> on the show >> who's show is that? >> that's your show. the one you do all the booking for. >> i want to know about.

>> spac? >> i did one for my dog. 37% australian cattle rusler that's the dominant. yeah, 2% doberman. look out that's that nasty side i suggest it highly. >> all right well, have a great show later. >> i want to stay here with you but i have to interview sawn jay and then benniof >> coming up -- >> he's the happiest -- it's okay >> but we have a lot more on the markets after the sell off yesterday with the s&p up half a percent. keep it here

♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ that building you're trying to buy, - you should ten-x it. - ten-x it? ten-x is the world's largest online commercial real estate exchange. you see it. you want it. you ten-x it. it's that fast. if i could, i'd ten-x everything. like... uh... these salads.

or these sandwiches... ten-x does the same thing, but with buildings. sweet. oh no, he wasn't... oh, actually... that looks pretty good. see it. want it. ten-x it. yum!

good wednesday morning and welcome to another hour of "squawk on the street. we're live from the new york stock exchange, of course, right here at post nine. in los angeles as for markets, a half hour into trading.

you can see we're up across the board and moving higher right now with the s&p actually gaining .2% in the last minute or so. we're getting housing data dianna >> david, pending home sales in august jumped 8.1% month to month, that was an unexpectedly high jump. they're looking for a 1% gain and this came after two straight months of decline. sales down 8% year over year but all regions did see monthly gains. all gains were in the midwest and south. the chief economist said rising inventory and moderating price conditions are bringing buyers back the market. we still have very high prices, up nearly 20% year over year, according to the latest index and realtors are saying while they still see strong demand, they're seeing fewer bidding wars, as the buyers come up

against affordability issues pending sales,which are a sign of progress. taking a very large jump, up 8% in august. morgan >> dianna, thank you we're 30 minutes into the trading session. here are three of the big movers we're watching this morning. we're going to start with the resaler increasing the share repurchase program by about a billion dollars. it's now $2.5 billion. you can see those shares are up 13.5%. keep in mind dollar tree still down double digits year to date. and sherman williams painting an inflationary picture, despite strong demand. this after a q3 sales cut just earlier this month those shares up about three quarters of 1% we're going to begin with lucid

group, planning to deliver the first luxury sedans after kicking off production this week and greater driving range and those shares are up more than 12% right now, david >> values soaring there. we're talking 48 billion or so josh lipton is looking at technology, which many are looking to rebound josh >> it's a better day for tech bold right now let's start with some of the big names, microsoft, amazon, alphabet and facebook down 10% in september that means it will likely snap its longest monthly winning streak on record though some see opportunity. tech investor, dan nils was saying he likes alphabet, for example. strong growth, he says and it will benefit from economies reopening.

asml making news, raising the annual sales outlook, though the stock not doing much the chips on track for the worst month since march 2020 and micron, we got forecast last night. cloud names worth highlighting, clou, about 7% off its high. zoom, docusign and zoom down morgan, back to you. >> thank you we're going to turn to the broader markets looking to rally, although we have a ways to go to retrace the losses you've seen earlier this week. nasdaq on pace for the worst month since september 2020 we're joined by president and cio, joseph motto and head of investment strategy and cnbc

contributor, meagan shoe good morning to you both meagan, i'll start with you. we're seeing a bounce in the major averages this morning. where do we go and the fact that risks do seem to be mounting >> yeah, morgan. risks are up -- as i've said before and we discussed in our investment kmilty. it's often much easier to lift negative risks than it is those in the positive side of the ledger so, while we feel there are many short-term risks ahead as we go in the months and quarter ahead, we think the back drop is relatively constructive if you're able to extend your time horizon out nine to twelve months businesses are sitting on a tremendous amount of cash we think will be deployed into cap exas well as buybacks and dividends. we think if you're able to look at, particularly in washington

lower probability,but potentially high-risk events, it's constructive. >> and to put context around the pull back we have seen in recent days, in stocks. i mean, the dow's down only 3.7% from the midaugust peek. nasdaq has been the underperformer, something like 5% but it's been quite a while, despite dramatic moves, been quite a while. >> so, certainly the markets have had the modest correction, i guess. as we move into september and october. but i think the underlying foundations are constructive you've seen covid cases so the trend seems to be quite meaningful and i think that should give everyone confidence that reopening and improvement

in economic activity should occur. and that's one of the things we worry about in the near term, which is while an inventory rebuild, you would expect to help economic growth in the fourth quarter of this, that may be pushed out a bit because of the supply chain disruption. we remain constructive on the one to three-year time horizon for the upper class. >> how concerned are you about the various goings on in washington, whether it's the debt ceiling, government funding or debate over both infrastructure bill and the human infrastructure bill? >> i think it really adds to the head winds, david. certainly on the tax front, from a corporate tax rate to increase those things are the mark rlts watching closely one of the challenges you have in this fiscal is it's very modest there's a very small difference

between democrats and republicans. so, one or two votes will swing whether you'll see a big corporate tax increase or not. typically they're able to digest that change as policy goes through the system but when you have that very, very slight balance of power, it's just harder to predict and markets don't like surprises, as you know >> i mean, we're talking about sherman williams and the fact they cut guidance again, second time in the month. and it's because of inflationary pressures. you could say the same thing about company raising egg prices those are just two companies this morning what we didn't hear from the fed in the press conference. it was in the statement but not the press conference from chair powell, is the word transitory and it does seem like the fed is signaling that perhaps inflation is here longer and bigger than

had been previously anticipated. so, how much is this effecting how much we're seeing in the bond market and this the ripple effects of things like equities right now? >> i think what we're seeing, if we look at the reaction in interest rates, the move higher, we are seeing consumer expectations for inflation, as well as break-even rates move higher i think we're getting a broader consensus, whereas before it was transitory, this will pass there's certainly more from the investment community, as well as the fed chair, i think, that the breadth of the inflation gains that we've been seeing, as well as persistence is starting to make some feel uncomfortable they could be with us until the middle part of next year, in large part because of the extended supply chain d disruptions we have been seeing.

i agree with joseph that we are probably going to be looking at tumultuous movement ss in markes perhaps related to supply disruptions. we think that sets us up for a rebuild on the other side. we think on the margin, they're still skewed to the upside fr >> yeah, and the near term, at least, jose f, how should investors be positioned for this greater volatility >> i think it depends on your time horizon if you have a one-to-three-year time horizon, i think you take advantage of the sell offs, whether it be credit risk assets or equity risk assets. i think you're going to see volatility you kamted on inflation. we see inflation as -- we agree

the transitory period is lasting longer we see inflation running hotter here, well into 2022 i think we think it will subside in the second half of 2022 but that will keep the bond market volatile. you've seen in the last six or seven sessions, from 130 and 150. that's a big move that markets appropriately responded to >> all right we're going to leave the conversation there thank you both for joining us today. >> thanks for having us. >> thank you >> still to come we're going to talk about micron, which you can see the shares are down but not much this is following last night's earnings results and a cut in guidance but first let's get up to code for a look at what's ahead in the show carl >> coming up after the break, we'll talk more about what elon musk said last night about crypto regulation, the crackdown in china, ai safety space, tesla

stock and not be invited to the white house event on ev. so, we continue live from the coke conference in los angeles your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

welcome back to the code conference in los angeles. where last night elon musk had a conversation he's again the richest man on the planet but spends time defending himself against jeff bezos, who he says should spend less time suing and more time getting to orbit, on drivers who sue tesla on self-driving technology that he argus will save their lives and against not being innovated to a white house event involving ev >> so, biden held this ev summit, didn't invite tesla. invited gm, ford, chrysler

>> and there's a mind melt going on between eu regulation and u.s. regulation. >> we have come a very long way from 7 years ago, when i was new in washington and coming with my google cases and what's that crazy woman talking about? to where we are now. and i think the pandemic and how technology moved into our house, into our learning practices, shopping practices, exercising, socializing practices. i think that's part of what has made everyone think. well, if you have that kind of power moving into our houses, well, of course there needs to be a democratic check. >> it's going to have big implications as there's an on going discussion between the u.s. and eu guys

another summit today in pittsburgh you would have loved the space discussion, especially talking about economics between the falcon 9 and the starship. how much more pay load it's going to get into space. what star link is going to do for people on the planet regarding internet service and how all of that profit, whatever they get from internet traffic over time, how that might fund putting a self-sustaining base on mars and, as he said, on the moon since it's kind of on the way. >> it's on the way and it duck tales back the comments by bezos because the latest legal fight does regard a human landing system, which is part of the artmous program for nasa to base c -- basically put millions for and so, speaking to that little beef there, the latest in that space rivalry. thought it was kind of fascinating the comments -- and

i think we're having technical difficulties with the sound bite but the problem around the evs and the bidden administration. that goes back to some of the controversy, dare i say, we saw last week with musk taking to twitter after the biden administration stayed silent on what was a successful, historic mission. >> yeah, clearly clearly he felt left out and given what tesla's done all around the world, you might argue he's right on the other hand he had some sharp words for the sec once again on crypto. he was asked what should the sec daabout crypto and his answer was essentially nothing. just let it lie. which is interesting, given how he proceeds. and he knows a lot about payments, how he proceeds the block chain, the silo which is

money -- and really covered the gambi gambit last night at code. >> there's a number of people who would want to sit down with elon musk. we've got it from d.c. elawn. >> well, david, democrats now announce their plan to avoid a shutdown, once the government runs out of money tomorrow senate majority leader, chuck schumer says they'll introduce a short-term funding bill that would last through december 3rd and is it would include disaster relief from hurricane ida, as well as aid to afghan. this is likely to be supported by republicans because is the strategy they've been advocating for democrats to take all along and senator schumer said the vote on the senate floor could happen as early as today and then it would have to go to the house and to the president's desk to be signed in time to

avoid the shutdown tomorrow. however, there is no progress on the debt ceiling and once again rejected the premise of using the fast track reconciliation process to raise the debt ceiling. he says that would place the country in uncharted waters. still no plan on the debt ceiling. guys >> we know you're going to continue to watch it for us in what is a very busy week as we head to break, check out shares of boeing, leading the dow as bernstein upgrades to out perform. and they're increasing air traffic and delivery forecast, saying we're finally heading to, quote, inflection point. shares are up almost 5%, boeing that is. there's more stay with us

. they're back to the previous peek they hit in june. and this week our atlantic bookies have been higher this week than they were in the same week of 2019

getting everyone vaccinated is important in continuing that recovery but for the country overall, but we appear to be on the road to recovery >> that was united ceo, who joined us earlier today on "squawk on the street. 393 employees who won't get the vaccine and will be terminated they have a 97-plus percent acceptance rate. i asked what advice he would give to other companies going down the road. he said just do it we expect you to get vaccinated, if you're not, get fired move along it seems to have worked for them >> whether it's on a corporate level or federal level, i mean, 593 workers have had covid and rather recently and therefore have the natural immunity. i don't know the answer to that and i haven't seen much of the data or discussion in the policy making but i am curious because

it's not just vaccines that people are finding themselves, at least temporarily protected from i wonder how it's going to shake out where future labor reports are concerned, here in new york state, you have businesses letting go of 10s of thousands of health care workers because they haven't got vaccinated as well going to be interesting to see what it does to the data >> in new york, the numbers came down dramatically. >> this is me curious about what this does to data. >> i know there was a great concern of 10s of thousands. it's an interesting point. we asked gottlieb about it on air and he seems to say -- and he's the guy i'd go to because he's been so, sort of, i think, right, and much better off getting vaccinated as well as for business travel, that's a question we continue to go through as well. i continue to hear from executives, which i've said many times yes to getting on a plane

to win new business and not so much interested in follow-up visits anymore >> i've spoken to executives who said they've permanently cut some of the business travel because it's just not necessary anymore. meantime, shares at bow rg higher on the analyst upgrade, in part because there does seem to be a bet that some of the travel is reaching an inflection point time for our etf spotlight ticker slv in negative territory so far this week, along with tech down around 5% since the start of september one name trying to boost the sector is eli. getting an update from neutral to buy city pointing to the stock's valuation, following 14% drop. oh, it's up 2.5% i correct myself we'll be right back.

plz here is your cnbc news update at this hour. youtube is taking down the video channels of what it calls several well-known vaccine misinformation spreader. including a channel connected to robert fmp kennedy jr. youtube has already targeted videos with false information about the covid vaccine. the new policy bans misinformation about any currently administered vaccine approved by health officials appearing this morning, former fda commissioner and pfizer board member said with child on the way, a therapeutic could be available by the end of the year >> we're going to get a therapeutic. no question about it if it's not one of the drugs,

it's going to be one of the others in development. this should be an easy virus i think the challenge is 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 >> switching gears ten days after the eruption of a spanish island the lauvo flow has reached the sea, creating dangerous gases. people in the area are being told today indoors and seal doors and windows with tape and wet towels so far no reports of injuries. back to you. >> thank you let's get a check on micron. we're an hour into trading stock had looked to be down rather sharply kind of cut those losses and joined by wells fargo to discuss that earnings report and the guidance there what do you think of the quarter? what's your take on the guidance

in terms of what they had to say? >> i think we looked that relative to what we previewed t was in line with what we expected some chopiness for end-market dynamics around pk and i think you have a company that's very disciplined. managing through some softening of what they would call air pockets and at the opened of the day, we come in and out of the earnings cycles. so, i think it was in line and we still think the longer term is varmuch in tact for micron. >> same question for you expectations were perhaps for a bigger fall. >> and the company did a pretty good job level setting people

during the conferences in the quarter. the problems and inventory that has built up in some areas of pc, i think, were well understood is it a midcycle correction or the end of the cycle management and their commentary suggest eszs they think it's midcycle correction and we're optimistic as well one of the things we're seeing is gross margins are staying fairly well in tact. and that's obviously a good sign that is not necessarily indicative of the cycle. what do you like given all the factors involving semiconductors >> we do like micron and we will continue to expand ai will continue to be a

positive secular growth driver and the proliferation. outside of micron, we like invidia. that's a platform story. we think there's many tentacles, inclusive of the momentum we're seeing today and then we like amd, the market share gains and pieces continuing to play out we've steered clear of inteleat this point in our coverage on the semiside. >> i'll put the same question to you, especially since you also cover, in addition to the chip stocks, apple. and we've seen that name among the other mega cap tech stock getting beaten down a little bit in recent days >> and in the handset space in general has lagged the broader tech group as you've gone through the year. and a lot of that is uncertainty of what's going to happen on the next iphone cycle. so far so good and the best way to gauge iphone demand is hew long it takes to

get your iphone. livery times are longer than last year and longer than normal we believe they've produced more phones this year than last year. mostly because the phone is on time this year, which gives them more selling days and we like the rest of the apple supply chain. top of the list would be qual comand they're partially exposed to apple but the bigger part is the fact that the biggest handset supplier in china is not able to make high-end handsets anymore because of the trade restrictions the only place to go to replace huwei in the market is qual com. >> i'll come back to you on the broader chip section are there any takeaways from the micron quarter that change your opinion of the other names in your coverage universe >> not really. and the approximate issue they

face is this pc. what they're saying in pc is it doesn't relate the rest of the space as well. they have a lot of inventories and yet, del, if you heard them in the last earnings call, we need more compone pts to make the pc and there are some ocomponents that are readily available. and power management i guess this is a push and pull of semis right now in one case we got supply constraints. but in some areas people worry customers may have over built some products that are readily in supply. so far the only place we've seen that issue has been in the pc space. and that's the only place we really see any tangible. which is why we're more cautious on pc than other spaces. things are as tight as they've ever been.

we're start stoog see evidence of prices going up because of the tight boundaries right now >> sticking with that theme, chris, i'm curious last week the biden administration suggested they could invoke, at least some elements of the defense industrial act, given the shortages we're seeing in semiconductors how quickly could those dynamics change, if at all? >> we kind of use the term and so the problem you have with intervention in semiconductor supply dynamics is by the time that happens, we'll probably be way past the cycle well more than a year ago, we

had no idea the economy would recover this will and we have not planned for it so, what we're seeing now is the result of, towards the end of the second half of 2020, customers were canceling orders and particularly in automotive, which is the shortages of the most acute right now we think that will solve itself without government intervention. one place i think it's justified is diversifying geographically the way they're made and some of the incentives that we propose for the u.s. will levl the playing field and i think that is good for the industry and everywhere just to have semis made in different geographic locations, just to dilute the geopolitical risk >> guys, got to leave it there chris and aaron, thank you >> thank you >> and by the way, don't miss

the ceo of micron will be a guest later with jim on "mad money. 6:00 p.m. eastern. the alpha conference is underway here are some of the highlights. >> bouft 90 minutes to delivering alpha, i sat down with money managers. i asked how much conviction there really is in the industry or if most managers are just following the heard into esg because the right thing to do right now. it's a check the box exercise. and then you go and find out there's very little to be done in that case

and mandatory climate disclosure and most importantly rules of the road for what constitutes as esg investing. she's working with the sec to develop those right now. >> we think it would be useful to have those rules harmonized, if not exactly aligned with harmonize with rules we see popping up in other jurisdictions so we're not operating in a multiple framework environment as global investors. >> in about 20 minutes, i'll be sitting down with cofounder of bravo for a broad based conversation about fact, retail investing and crypto and we have a full line up throughout the day as well many more, not too late to register at delivering alpha.com. >> thanks. orlando bravo been very busy, that firm. in fact, looking forward to hearing from him let's give you another check

actually it had been up as much as 15% you can see still a 12% run. earlierier i misquoted a bit the market caps. about 44.5 billion the pursuit is on. the pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes,

actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility. join the pursuit of outperformance at pgim. the investment management business of prudential. new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today.

rise in yields hitting the high growth tech sector. one portfolio manager says that means investors should pick out their shopping list. details on cnbc.com. as your broker, i've solved it. that's great, carl. but we need something better. that's easily adjustable has no penalties or advisory fee. and we can monitor to see that we're on track. like schwab intelligent income. schwab! introducing schwab intelligent income.

a simple, modern way to pay yourself from your portfolio. oh, that's cool... i mean, we don't have that. schwab. a modern approach to wealth management. welcome back to "squawk on the street."

we're live at the code conference in los angeles today to talk about the conference itself and the media landscape as vaux chairman and ceo, our host for the week. great to see you again great to be back onset together. >> thank you, carl it's so wonderful to be back onset. i'm so glad cnbc is here joining us it's been an amazing couple of days at the code conference. thrilling to be back >> i talked to kara fisher yesterday about lessons you would give to people throwing a live event what does it take right now? >> we worked really hard to keep people safe, our staff, attendees, hotel staff and we felt really good about the protocols going into it. from there, we have to make sure it's a great show. there's a lot of work that goes into it. but i think they really enjoy that i heard person after person saying how important it was to have the human connectivity.

i love to think we're the preeminent conference in tech. they bring it every year and certainly did this year. >> i guess it leads to the question of what are the follow throughs to corporate travel and to return to the office right now because there's so many dislocations and you can pick a chart on vacancy rates and make all kinds of arguments >> different companies have to go through slightly different things the key thing is keeping everyone safe no matter where you are, right and if you can do that, different companies have different needs for collaboration. we have a policy that works for us right now where we are allowing people into the office if they're vaccinated. we have caps we had caps on how many people would come in. we recently lifted those caps. we will reevaluate things in january 367 >> let's talk about the digital ad market or in general.

there's been a lot of talk about inventory shortages and supply chains and if you don't have enough product to sell in the holiday, why do it at all? >> frankly, it's been a really strong year for vaux media and working with our advertising partners you know, the pandemic year, particularly the second quarter last year was obviously tough. financially, tough in bigger ways and tough in the ad market. but we've rebounded in a really strong way so, we don't see as much of -- you know, we don't see that weakness caused by the supply chain. we're kind of operating on all cylinders. i think what's important in the digital ad market is making sure you have scale, that you have quality, quality in terms of the actual ads and the pradicts that you can give your marketers and making sure they perform well. we have worked really hard to achieve those things i like to think we're getting

more of our fair share >> we talked about this during the break that, of all the topics of discussion here, policy wise, company wise, it's been about facebook to some degree it's hard to get away from them as the topic of discussion what's your thinking about where they stand right now >> cnbc has done great reporting. we at the verge and new york magazine and vaux, we do a lot of reporting on them as well so, what strikes me about facebook -- obviously, the stuff coming out, as a parent and as a human here, we all care about that immensely i'll speak, since we're on a business network, i'll speak to more of the business side. one thing that facebook has not been able to demonstrate on a business side, is if you look at the other platforms that are

also big tech monopolies or platforms, they have at least spawned other big businesses for instance, the apple platform has the app platform, amazon has its marketplace, google enable said discovery so, while they've created a lot of disruption, they have built up other businesses themselves and act as partners accordingly. we have trouble finding that same level of partnership at times with facebook. i think you could extend that to the public policy realm as well. that notion of transparency of working together to build something. there's a lot of issue ooze be settled in tech. but i think facebook in particular has to work on that kind of partnering spirit, whether in the public policy realm, business realm, etc >> interesting well, our congratulations to you for pulling this off we're all rooting for you and

again, we're so pleased to be here with you. >> we're so glad to be here and thank you for having us and we look forward to seeing you in 2022 as well >> coming up on "tech check" we'll talk to the most powerful leaders and investors on what this sell off could mean strategly and for the long term. >> great stuff, carl thank you. speaking of volatility, check out the biggest laggards as we approach the last day of q3. wynn resorts in las vegas, gap is on there as wel l.

working at recology is more than a job for jesus. it's a family tradition. jesus took over his dad's roue when he retired after 47 year. now he's showing a new generation what recology is all about. as an employee-owned company, recology provides good-paying local jobs for san franciscans. we're proud to have built the city's recycling system from the ground up, helping to make san francisco the greenest big city in america. let's keep making a differene together. in business, setbacks change everything. so get comcast business internet and add securityedge. it helps keep your network safe

by scanning for threats every 10 minutes. and unlike some cybersecurity options, this helps protect every connected device. yours, your employees' and even your customers'. so you can stay ahead. get started with a great offer and ask how you can add comcast business securityedge. plus for a limited time, ask how to get a $500 prepaid card when you upgrade. call today. welcome back to "squawk on the street." stocks are in positive territory as you can see here from yesterday's steep selloff and continued momentum in several of the key names that were outperformers yesterday that includes many of the food processors within the consumer staple center like conagra and kraft heinz, as well even as we see some recovery, the more defensive areas of the market still getting some increased attention.

keep it right here more "squawk on the street" straight ahead stay with us trading isn't just a hobby. it's your future. so you don't lose sight of the big picture, even when you're focused on what's happening right now. and thinkorswim trading™ is right there with you. to help you become a smarter investor. with an innovative trading platform full of customizable tools. dedicated trade desk pros and a passionate trader community sharing strategies right on the platform.

because we take trading as seriously as you do. thinkorswim trading™ from td ameritrade. we see smarter software delivering cleaner power. emerson's breakthrough technology enables the power industry to integrate renewable energy sources to modernize and improve the electric grid. emerson. consider it solved.

the personal loan from sofi helped me consolidate my credit card debt into one simple monthly payment. debt free! thanks to sofi. ♪♪

welcome back to "squawk on the street." let's get back to contessa brewer alongside a special guest. contessa >> yeah, hi, morgan. good to seei you with me is esther aggulara and this is a brand-new report we're getting an exclusive first look at the 2021 lutina board monitor which tracks companies and performance. good news here some of that good news is that if you look at these, the big fortune 100 companies and the big fortune 1,000 companies you've seen significant progress in the number of companies that now have at least one latino on the board. we can show you that but here's the thing, ester, you say that doesn't paint at all an actual picture of the progress >> that's right, contessa. two-thirds of fortune 1,000 companies lack latino directors. the absolute number of companies

has been going down. but the other measure is the board seats. it's the board seats where latinos are invisible. in fact, russell 3000 companies, latinos hold 2%. a mere 2% of those seats yet the population, we're nearly two in ten americans and there is ample talent for the board >> you have seen 3% population growth but less than 1% board seat growth overall. let's talk about who's doing a good job and who's not let's look at, for instance, amazon and costco. some of the biggest companies out there that don't have latino representation berkshire hathaway and united health why? why don't they have someone sitting on their board who is representing especially who their customer base is >> well, first thing you mentioned is that latinos are the least represented on board

seats and we have the widest gap to close compared to the talent pool but what's more and what you mentioned is that over the last ten years, we have lost ground and this is, the numbers only went up 1% in the population, 3% so, these companies are really -- >> why does it matter to the bottom line of these companies >> well, the most important thing is this is not just about the right thing to do. this is good for business. latinos are driving business growth in the u.s. there's plenty of talent and the market share is huge boards without latinos are incomplete we're two in ten americans we're driving 10% of gdp growth in this country. our market share is growing70% higher than any other group.

by the way, in the employment base, latinos contribute 72% of new entrance to the workforce. this is the current new america main stream. >> what's the big piece of advice one piece of advice to companies out there who don't already have a latino board director? >> you're missing out on theal taant, the perspective that could help drive growth. this is about shareholder value. >> esther aguiler,a, thank you for being here looking forward to hearing more about this >> contessa, thank you as we keep an eye on the market as we get ready to wrap up on "squawk on the street. impressive performance for the s&p and the nasdaq i do notice shares of apple surging up a bit 1.5% and the dow boeing a very strong performer on that bernstein upgrade. >> in terms of the sectors and

the s&p everything is in the green except for utilities but consumer discretionary that are leading the charge in this rally that we are seeing today the dow transports, though, are underperforming and the small caps, again. >> you always keep your eyes on the dow transports >> i do. that's going to do it for us on "squawk on the street." "tech check" starts right now. >> you get days like this, it's a neat opportunity to put some money to work. >> the problem in the broad overpriced world like this is what the heck do you earn? >> a vacuum in the markets of sucking in all the capital and that's leaving other opportunities that are left for d dead. >> for the last two years when the mega cap tech stocks sold out significantly, i'm a buyer