end of the session but what's moving on the final day of the quarter. the senate reaching a deal to avoid a shutdown, but a revolt among democrats could sink the bipartisan infrastructure plan nancy pelosi says it's an hour by hour situation. we'll take you live to washington and virgin galactic shares are soaring. we'll tell you why it's thursday, september 30, 2021 "squawk box" begins right now. >> good morning, welcome back to "squawk box" right here on cnbc -- i can't say welcome back because this is really the beginning of today's "squawk box." >> right it's a continuation from yesterday. >> i'm andrew ross sorkin along with joe kernen. becky is off today we've got a lot to talk about and want to start with the markets after the dow and s&p

inching higher yesterday the dow closed 90 points higher, the fifth positive session but the nasdaq declined about .25% for the fourth straight negative session look at u.s. equity futures this morning. i know we have three and a half hours to go before the markets actually open but right now we would be a lot higher, 173 points higher, the nasdaq up about 68 points, the s&p a little bit over 20 points. let's show you the treasury yields right now, tell you where the ten year stands that's what's been moving everything around, it's down a little bit about 1.520. >> great interview with mary i heard yesterday. >> it was good >> delivering alpha. what was the headline from jim coulter? what should i take to the bank >> i don't know how you feel about this he believes that right now there's like a -- you know, this fourth industrial revolution, but in particular he's investing

in all of this -- you know, what he calls climate oriented investing, impact investing but around solar and wind and battery power and things that don't require governments to change carbon credit he thinks this is -- >> and it stands on its own? >> he thinks it stands on its own and he believes -- he says tesla is like aol. he thinks it's the -- >> no. >> he said it could end well, could end badly. but the salesforces, these other companies haven't arrived on the scene yet. >> did you see the endowment >> huge. >> 50% gains most of them. >> that's what we talked about and then jamath wapner a great interview yesterday. >> was there bitcoin >> a little bit of bitcoin but there was a lot of spac conversation. >> did you see the article that

ai we're creating god, that scares many many recreating, creating, i don't know we need to make sure we, you know, do things -- make sure we think of ourselves -- >> yes. >> -- and what we may do to ourselves with ai. ylan is waiting. i don't know, the progressives seem like they're flexing. to washington where the senate has struck a deal to avoid a government shutdown with a day left to do so. but the agreement comes as the house signs off on a measure to suspend the debt ceiling but that bill is likely dead on arrival once it hits the senate. and today is thursday. last thing i heard speaker pelosi said it's hour by hour. so we have three hours to see if anything changes with the bipartisan deal. in your heart of hearts, wil there be a vote on that today, do you think the infrastructure bill. >> reporter: i do not know, joe. we will get to that in just a

moment, but first i'm going to tell you about the good news out of washington. but there is one thing that republicans and democrats do agree on and that is keeping the government open. congress is planning to vote on a bill today that would keep the lights on through december 3rd the senate will go first, then the house, and both parties are confident they can send it to the president's desk before the deadline at midnight the debt ceiling, however, that is still up in the air the house passed a bill that would have suspended the debt limit through december 16th, 20 2 22, though it's going nowhere in the senate amid united republican opposition. also in the house today, as you mentioned, the vote on the bipartisan infrastructure bill, theore theoretically, democratic leadership is daring progressives to follow through on their promise to block it unless the social spending package has passed as well but the head of the progressive caucus was clear, she tweeted progressives remain ready and willing to vote for the

infrastructure bill after the popular build back better act is passed we can't leave childcare, paid leave, health care, education, and climate action behind. those negotiations were going on until the last minute. you can see house speaker nancy pelosi working the phone here even at the congressional baseball game last night president biden working the field, chatting up both republicans and democrats. the reason why this is in question, joe, is because no specific time has been set for that infrastructure vote today so it could be a late night on capitol hill back to you. >> i don't want to blind side you with important info. do you know the score and who won? >> reporter: republicans won i don't know the score inning by inning but republicans did win. i think it was maybe the second time they'd won in a decade. i can't say that i'm a sports fan. >> it's rare it's like the national league winning an all-star game ylan, are you going to be

around that's hour by hour, that means you could be called upon at any time. >> i'll be around next hour. don't worry. >> perfect if something happens after that. >> yeah. >> they seem like they're serious -- i don't know, are they i wish i knew who to believe right. because they say these things and they're always posturing and dancing. >> well, you got to think there is something else that the president or that democratic leadership could offer to progressives as some sort of assurance that they will move forward on the social spending package. i think the problem is it's not the president and pelosi and schumer who can offer it to the progressives it's manchin and kyrsten sinema, they've been unwilling to lay down the mark ers where the bill should land this is a three or four or five way negotiation and that's leaving progressives in the

lurch. see you next hour. let's talk vaccine news. astrazeneca's covid vaccine demonstrating a 74% efficacy at preventing symptomatic disease, according to new clinical trial data, 17,600 participants who got the vaccine there were no cases of severe or critical symptomatic covid, and no deaths that compares to eight cases and no deaths in the placebo group and eight cases of the blood clotting that was announced in july they plan to apply for emergency use. when you have 74% efficacy to prevent symptomatic. this is in the league of where j&j is, but now that we know these different drugs and how they work, wouldn't you -- if you had the choice -- the first

time around, everybody was just trying to get, you know, access to a vaccine if you had the choice, wouldn't you want to get access to moderna or pfizer where at least the -- at least you start in the 90s? >> i can even split that further. i think my wife i think did get moderna but my son got pfizer. it was hit or miss, depending on the day you went today we have pfizer >> right. >> so me getting moderna means now if -- as a geezer i cannot get the booster. i can't get the booster right now. if by chance i had gone on the day they had the pfizer -- >> you'd have the booster. >> but it's arbitrary, strange moderna probably won't be long a month or two. >> i think we wait a little bit more but then we'll have reports of mixing and matching. so you take the astrazeneca first and then decide i need to take it to an mrna version

>> i have said on the record i think messenger rna vaccines are awesome. you get your share of stuff that comes in, i have people that are like, they just can't believe i would say that they think it's like poison, they really do i guess there have been some adverse side effects, obviously, you see it on your twitter feed too. >> yep >> but to someone that has a question about any of the individual vaccines, just suggesting that you mix and match, they must be like, are you out of your mind because they think the dna, the rna, it's recombining and it's going to go in and years from now you're going to have six heads. i don't know what. there are conspiracy theories out there. and mixing and matching is going to be a bridge too far unless we have data. but we don't have any long-term data on this, which is another talking point you see a lot.

children with the risk relatively low of a really serious outcome, that's what a lot of people hang their hat on for saying i don't think children should get it at all. >> i think there's a lot of effort being put on when are children -- my kids get the vaccine, you know, the first opportunity. but i think the idea that everybody is going back to work, all of these things are going to happen almost like that, i don't know because i think the hesitancy is going to be even higher. >> why are you so -- what in your mind makes you so comfortable that long-term side effects aren't something -- i agree with you by the way, if i had young kids i would too just to be sure how are you so sure? do you understand how someone would be -- >> i understand why people are hesitant look, you -- adam silver is dealing with this in the nba right now because there's a number of players who -- >> were you a flu shot guy >> i was not a big flu shot guy

for a different reason i just never found it worked for me because i used to get the flu constantly. >> once again you need a good immune -- maybe you're not sleeping enough. >> well, you know, that's the hazard of this profession. >> it is. >> the morning profession. >> you have six different jobs, too. >> let's tell everybody about something else going on. the cdc is out with an urgent advisory for pregnant women to get the vaccine. it comes as 125,000 cases have been reported amid women, more than 22,000 have been hospitalized with the virus while at least 61 pregnant women have died from covid-19. 22 deaths occurred in august alone. the cdc says only 31% of pregnant women have been vaccinated >> another one another -- another -- if you -- you know, if -- >> right. >> you or someone you loved was

with child, would you -- i think i'd say do it. >> i would do it >> because of -- >> yes yes. i would do it. >> and the other -- there's another reason, which is to say if, in fact, you do get covid and you are in a bad situation by the way you are going to therefore start taking drugs and other medications that if you think this is experimental or is emergency use authorization, everything db regeneron is too all of these things are. >> right. >> anyway, that's my -- >> that's the other thing, we're going to move on but you think of all we -- we take it for granted. in the last 75, 80 years how we used to -- weren't we still using leeches, not literally 80 years ago but at one point they were bleeding people within the last 150 years so we've come a long way with what would have been seen as experimental medicine years ago

all these things we've developed. coming up shares of virgin galactic are rocketing higher this morning we'll tell you why next. and then later we'll talk to fanatics founder michael reuben. the new trading card business. are you kidding me just valued at more than $10 billion, does that include like nft type potential and stuff. >> yes we have to talk to michael, this is huge. >> >> "squawk box" will be right back [uplifting music playing] ♪ i had a dream that someday ♪

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it's wireless so good, it keeps one upping itself. shares of virgin galactic, they are soaring because the space company is no longer grounded the faa said yesterday it closed its mishap investigation into the july 11th launch which deviated from the allotted path. they said virgin galactic would be allowed to resume flights that story in the new yorker sending the stock down and a lot of leaks coming out of that. at the time big debate about -- >> we never talk about elon, is he just needling bezos with that quote, you can't sue your way to

the moon do they not like each other, do you know >> my general sense is more than elon doesn't life jeff than jeff doesn't like elon. both have been difficult and they're both suing, as you know -- they're both suing jeff bezos has been suing the government over the spacex contract. >> that's right. do you think they're -- >> they're not buddies in fact, elon was asked about that, do they talk, and he said something like, you know, not like as humans we tweet >> you think if they had dinner they'd both have crocodile arms when the check came, do you think? >> i think that neither of them would actually have to even get the bill because somebody else would get it for them. >> that's how it works with you, right? >> no. i don't mean somebody else would get the bill for them. meaning somebody on their team, probably called in advance or

something like that. >> like the president. remember when gw went in there and said, my god, look at the scanner, how does that work? what do you use, cash? >> i don't think if you're at that -- >> you don't. >> no. never? >> you walk in and you leave i think. i don't know let's check the markets with mimi duff and dana diaria. mimi and david, did you see the piece on the endowments, 50%, no problem in the past 12 months? mimi i'll start with you that's a good return and i don't think it's going to happen again, is it >> well, those numbers are pretty magnificent, but i think we have to keep in mind how much just the s&p is up during that same time. i think i saw -- watched you and i hope i'm not misquoting here, was up something like 65% through june of the year, so

some of the endowments have had stellar performances for sure. if we think about the recovery in the past year and how much asset prices have moved i think it's within possibility. >> you like the recovery trades and i guess there's another piece in the journal that i thought was interesting. once and maybe we're seeing it, fingers crossed. once delta starts subsiding more we could have like a re-recovery that could be strong you think stick with the recovery plays, mimi >> absolutely. we're in late innings but we know there's disruptions still occurring, so we stick with the recovery trade we think there's some degree of get used to this >> you don't like tech as much as before. and even, you're underweight just in general now, taking some off the table because we've had such big gain? >> that's accurate we've taken some chips off the

table, the second half of the year, we just see it a bit more risk potential both from higher rates, possibly tech regulation, that's right >> dana, are you -- do you feel the same way in terms of not being quite as bullish as maybe in the last year or so >>, you know, i -- i think the market fundamentals are good i agree on reopening trade, being there on the other side of all of this that we're looking at in the markets. i think if you're an investor and you need to sit through the next several months to get to that, there's a lot going on, obviously. debt ceiling, tapering to be, inflation doesn't seem to be going anywhere, consumer confidence down. i think there's a lot of volatility the markets are going to have to deal with in the next month, two months, et cetera but i agree on the other side of that there's constructive financials. >> when you say inflation is not going anywhere, do you mean it's not going away or it's not getting worse?

>>, you know, it's ticking up a bit. we actually had fed chair powell announce this is frustrating we know the fed has been saying all along it's transitory we're going to get past it now we're hearing the fed say it might stick around to a certain extent a little more than we thought. supply chain issues aren't correcting as quickly as we hoped. it doesn't mean there's as much change how it's approaching us but confirms what we've seen in the data, rents, housing, et cetera, if you're living on the streets you're feeling it and i don't think it's going away any time soon. >> i'll start with you on this and then go back to mimi, dana, let's talk about the features of the last two, three weeks, that's the move back above 1.5 on the ten year. can it be for a good reason? can that be bullish for stocks if. >> you know, possibly. there's a lot that goes into

that number. it hasn't made a lot of sense to a certain extent given where inflation has been over the last several months, but it's likely the movement in the f 1c dot plots to a certain extent moved that rate or had a lot to do with it. so we saw the fed now, the dot plots, which are just guidance, they don't mean anything, they have aterrible record of actually predicting interest rates but we did see now we're looking at, possibly in 2022, a rate increase and then two or three -- excuse me, i think it's three in 2023. so i think that had something to do with that >> mimi, it does seem to affect tech more. is that part of your reason for exiting some tech? do you feel rates are headed to 2% eventually? near term. >> eventually, yes in the -- this fall, probably unlikely i think we'll probably find some support at 175 look, i think everything dana

mentioned is accurate. and i would add to that that there's some global central bank theme has become slightly less dovish if you look at uk rates, for instance, they're up 50 basis points as a data point and so many rates are up globally so the menu, if you will, of global yields is just ratcheted up, and i would say to the extent that the pace of the tapering that occurs or i'll use the comment calibration, i like calling it calibrating powell eluded to them being done in the middle of next year that type of pace would be faster than previous tapers. so -- and i think that would open the door for higher rates right now the fed is buying a lot of securities. we need to keep that in mind >> great i'm going to do this for serious people -- i don't mean serious

people i mean siriusxm people mimi duff, gen trust investment professional and dana dario, invest net people on radio now know if they want to contact you and do -- it's good for you because they may call you and have billions of dollars to invest at your firm possible not for long, though >> add like a commission code. coming up when we return, the buck stops at dollar tree, the discount store planning to hike rates above a buck. details next as we head to a break. check out shares of tesla, yesterday's alpha conference, jamath saying he sold tesla for other ideas.

much more from his interview at 6:30 eastern time this morning

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here, here! friars, send word at once. yes, m'lord. box. trade group business round stable has appointed mary bara as its next chair. she'll head the coalition of ceos in some of the biggest companies representing their interest in washington she is the first woman to lead the group. succeeding walmart's ceo when he concludes his turn at the end of the year making that statement about the purpose of a company and changing what the purpose is, and she will be leading that effort taking over as we just said from doug mcmillan. pretty cool for mary pretty cool.

>> yes you would have to say that and she comes on, nice we have her occasionally >> yeah. >> did you think this is an inflation -- that's immediately what i thought. >> dollar tree selling stuff for more than a dollar >> yes. >> it costs more than a dollar, how do you sell it for less than a dollar >> there's a lot of stuff at the dollar tree for more than a buck. >> there have? >> yes do you ever go to dollar tree? >> no. >> i have. i have. >> i heard you can go there and have a lot of fun with like halloween decorations. >> yes. >> dollar tree is planning price hikes. the retailer which sells everything nearly a dollar will add things at higher prices thanks to supply chain issues. you can call that inflation, a tight labor market and inflation. the company said it would sell some items for $1.25 and $1.50, $1.50 would be a 50% increase.

so that's not 5% inflation the stock rose more than 15% after yesterday's announcement kind of the unshackled from the dollar but given jay powell, i mean, how long are these dollar stores. >> goingto be the $10 dollar tree >> yes the zimbabwe dollar tree you need a trillion of them to buy a piece of gum. coming up, big takeaways from the delivering alpha conference on the spacs. the index on the 50 biggest spacs flat lining after a run up at the beginning of the year here's a look at yesterday's s&p 500 winners and losers as we head to break. hey lily, i need a new wireless plan for my business, but all my employees need something different.

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good morning a quick check on the futures at 6:30 now check in with those, 133 on the dow. 133 points dow looked like it was going to be triple digits higher, didn't end that way but it bounced up a little bit the nasdaq up 54 the s&p, as you can see, indicated up about 16 points

cnbc held the 11th annual delivering alpha summit yesterday and spacs were a hot topic of conversation. leslie picker has a breakdown of the highlights leslie >> reporter: andrew, we were lucky enough to have three of the top managers of spac companies speak at alpha yesterday. with the cell off we asked them what they make of the carnage. chamath palihapitiya, who actually pioneered the idea of bringing larger high growth venture backed companies public through spacs said afterwards there was a fast following of others trying to do the same thing. >> i think it's always important to take a step back when you have that fast following to sort it out and i think we're in the midst of sorting that out and separating who are the quality sponsors, who underwrites good

deals. and most importantly, who has skin in the game i've said that to you before >> bravo said there could be improvements to spacs especially in terms of accountability for financial projections and alignment between managers and their investors. gerstner agrees. in the meantime he said he's actually shorting about 50 spacs a trade he says has worked, quote, fabulouspy. andrew >> i'm curious what your biggest takeaway was i saw you, of course, monitoring the action all day, and there were so many fabulous conversations. was there one moment to beat all other moments for you? >> that's a good question. i mean, obviously chamath is so engaging and fiery when he speaks it was the end of the day we've seen everything happen and here comes chamath palihapitiya talking about how he sold out of

tesla, he talked about how bitcoin was gold, gave comments on spacs and china, surprisingly i was interested to see that there were a few managers, namely chamath palihapitiya and gerstner who dabbled in investing in china for quite some time, they were skeptical about the recent activity saying the next 6 to 12 months hopefully things will become clearer but in the meantime it's hard to see how china is inve investable there was also a sense of cautionness over the overall market activity that i didn't expect because the markets have been considered high and well performing but this year a sentiment change i noticed among the participants >> leslie picker, doing a great job all day. talk to you soon, thanks. coming up, an update to vaccine mandates in the work

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welcome back to squawk corporate vaccination mandates are a hot button issue across the country now workers are getting fired. here's scott kirby on cnbc

yesterday on firing nearly 600 employees who refuse to get the jab. >> i feel bad for the 593 people but less than 1% that are going to leave but we are focused on doing the right thing for united airlines. and it's great to have this in the rear view mirror for us and the ability to move forward now. >> joining us now for more on vaccine mandates is carmine decebio. what do you think? this is -- it was one thing to actually mandate it, it's now another thing to enforce it. >> andrew, thank you it's great to be here, first of all, and, you know, i think scott kirby did the right thing for united airlines, every sector is a little bit different here and hospitality airlines are dealing with people every day, and he needs to move his business forward i applaud scott pr what he did obviously with the rules coming

in, most businesses over 100 people are going to have to focus on this. they are going to have to mandate vaccines according to president biden's announcement a couple weeks ago so we're all very, very focused on this as well. we are focused on this, and again, it depends on the sector and depends on your business how you want to react. but i applaud scott in terms of what he's done i think this has to be done in terms of getting us through the virus and getting us to a different place. >> is there anything else that you think companies can do to move the needle short of a mandate? >> yeah, that's -- andrew, that's what's been going on now for months you know, behind the scenes companies have been influencing their employees to get vaccinated we have a 90% vaccination rate at ey so we feel good about it and we're trying to get our people in the office

here in new york we're 30, 40% capacity but around the country only 10 to 20% capacity. a lot of our people are clients and so forth but one of the issues around the country are mask mandates. nobody wants togo back to the office or work if they have to wear a mask all day even if they're vaccinated i think as we get back, that's going to be important that we give up on them. >> what do you make of what delta did, which is effectively say we're going to charge you. you don't want to be vaccinated, go for it. but it's costing us more money if you catch covid, you're going to the hospital, it's out of pocket, we're paying so i'm surprised companies haven't taken that line further and why insurance companies haven't taken that line. maybe that will happen this year as people check off the boxes for what their health insurance plan the same way you attest you're not a smoker you attest you have

the vaccine, if you don't have the check the cost of insurance for that year is going to be much higher. >> yeah, look. every company is taking a different tact they're all trying to get to the same place i think what delta did is also pretty much something different. but i think being more direct at this point is probably better. because i think we just need to move on. you know, what delta did seemed something different, but at the end of the day they're getting to the same place. i think most companies felt that maybe that was a round about way of doing what scott did at united these are industries and sectors that i think it's important that people are vaccinated. f dealing with a lot of people every day. >> what do you do about high performers if there was a rain maker, as they say in your business who said i'm not getting vaccinated, but that rainmaker has value to

you, adam silver is dealing with this in the nba right now, a number of highprofile nba players who do not want to get vaccinated and may not be able to play and may cost their teams money. >> that's a great question, andrew what i say and what we say here is we all have to be flexible around the environment, around what's going on. you know what i say is flexibility goes both ways the employer needs to be flexible in terms of the hybrid environment, a way to work at home and in the office, and the employee needs to be flexible around that. i honestly think, in terms of the nba and i don't want to comment on things like the nba, but, you know, it's important that people are vaccinated it's the only way the sport can go on. we can't have every other week three stars are out because they have covid i think until we all get vaccinated that's going to be a problem. and obviously it needs to be

equal for everyone whether you're a high performer, a super star or you're not, the rules need to be that you should be vaccinated. i think that's what president biden did in terms of what he announced a couple weeks ago, i think it's the right thing this should have been done, in my view, seven, eight months ago. >> i'm with you, carmine appreciate it very much. >> thanks, andrew. news breaking from merck, meg tur rel joins us with more >> reporter: merck saying it's going to acquire accelron for 120 shares in cash or $11.5 billion. this is expected to close in the fourth quarter of 2021 with it merck would get a cardiovascular drug for pulmonary hyper tension, which is a rare disease. it's in phase three development and another drug for anemia and certain rare blood disorders so $11.5 billion deal for ceo

rob davis who just took over from ken frazier july 1st. a wig move in the space. this had been telegraphed from bloomberg a week ago reporting that accelron was the target and merck was the buyer. not looking like a huge premium where accelron is now, but 45% from where the company was trading between april and august this should be a shot in the arm for bio tech space we'll talk with rob davis in the 7:00 a.m. hour big move, new ceo. tune in for that guys, back to you. >> 10 billion where it is now. just on market cap i just looked at a chart, meg. big move from 130 up to where it is but you go back to november of 2019, it was down at under 40. looks like it was in the 30s so it's made a huge move in the last couple of years

xlrn i said yesterday that's like a license plate you know how you see those, when you just pronounce the four letters moderna is a cool one because it looks like moderna, mrna >> i think my favorite might be barny grahams, which is vaccin-8 that's cool. look forward to seeing you again in a couple minutes p thanks. coming up a new platform launching today called daffy aiming to bring the innovation of fin tech to the world of charitable giving. one of the co-founders joins us next jerry is here! j! mate, how are ya!? it's so good to see you. good to see all of you, yeah! why is jerry so... popular?

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. "squawk" booze news, deageo warns near term volatility will remain tell largest liquid brands i don't know that brand. bourbon. >> it's spelled wrong, perfect >> it is >> okay. bullit makers mark. johnny walker scotch, ketel one vodka. isn't it a weird business? >> i like a drink with an umbrella in it

that's. >> even in a spitzer >> even in the winter. >> in the winter the wine spitzer >> no, you don't. >> you are not a big drinker >> i'm real not not. i'm like paul mccartney. i love a markry that or i drink chardonnay now i do i'm not afraid to say it >> good for you. >> i'm not there yet >> dageo i haven't done that. off know what i really like at the u.s. open, i like those, what were they could deuce something or other >> i like those drinks. >> really good some weird liqueur lemonade a north american business daigeo is performing strongly, the recovery in europe is ahead of exexpectation. the travel business continues to

be disrupted >> what about a pins cup, that's wimbledon, strawberries and cream and a pin's cup. >> kind of a champagne >> about a apertif spritz. in rome. >> when in rome. here we are. >> when the sun comes up >> i'm game. we practiced like six times to say it v.. >> it's a little long. >> you can drink in the morning? >> i cannot possibly >> coming up, we got a rare interview with the new merck ceo robert davis on the just announced news about the acquisition of a seller. check out the futures right now. we have a big hour ahead things are looking up.

ou20aq up 67 points, s&p 500 up abt points and michael rubin, all coming up on "squawk. today, things can be pretty unexpected. but your customers, they still expect things to be simple. and they want it all personalized. with ibm, you can do both. businesses like insurers can automate it processes across clouds. so agents can spend more time on customer needs. and whatever comes your way, you've got it covered. saving time and improving customer service, that's why so many businesses work, with ibm. ♪ i'm a reporter for the new york times.

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as asset managers and fiduciaries, to outserve, with our commitment to better esg outcomes. join the pursuit of outperformance at pgim. the investment management business of prudential. breaking overnight, lawmakers in the senate reach a deal to avoid a government shutdown this as the house passes it's own bill, which would suspend the u.s. debt ceiling.

a live report from washington straight ahead a september to remember as investors prepare to close out a rocky month. futures pointing to solid gains for the finish plus merck's ceo robert davis joins us in his first television interview, the company announcing a big deal as well that interview is just minutes away the second hour of "squawk box" begins right now >> good morning, welcome back to "squawk box," i am joe concern none, becky is off, along with andrew sorkin. we have the last days of september. we have about 67 points, 66, 65 up on the nasdaq 150 on the dow, which did close

higher, rebounding a little bit yesterday, the s&p indicated up about 15 a couple headlines to bring you. it appears the government will avoid a shutdown senate leaders agreed to fund the government through early december the house is expected to sign off and they passed a bill to suspend the debt limit that's expected to be dead on arrival in the senate. janet yellen says the u.s. will face a financial crisis if that limit isn't raised by october 18th meantime, the facebook is going to be in the capital capitol spotlight. the global head of safety will be addressing the company's effort to protect children and teens on facebook and instagram. facebook has come under criticism after internal documents showed how instagram was harmful to the mental health of young issuesers they actually published the full decks last night from facebook, what was going on internally with annotations

it's not great but it's also properly not, it was not as i mean it's all troubling. the report i didn't think presented. i thought the "wall street journal" presented the worst side of it i thought there was another side i don't want to say balanced it out. but there was a good intention behind the research they were doing sameingly. >> it spoke to me. i can certainly see, you know, with kids kids are so fragile. it's so hard, being at school is difficult. to be surrounded by it at all times and especially the aupon the imty, the comments, it's really frightening at that age and you feel for it. the empathy. you better be perfect or your going to feel bad about yourself nobody is perfect. nobody feels bad about

themselves right. it's bad enough on facebook saying every other family the on some beach >> so happy. >> right it's not like that >> my 11-year-old once said that instagram is for insecure adults who want to show how happy they really are >> how they really are >> i thought that was an interesting insight. meantime, congratulations to mary barra this morning, because gm ceo mara barra is becoming the first woman to share the roundtable she will be taking over with doug mcmillan when his go-queer term expires december 31st u.s. companies sold more than $786 billion of junk-rated bonds and loans the heavy issuance marks quite the rebound from march of 2020 it raises a question of whether the bond binge could come back to bite companies and christina joins us now with more i nailed it the first time, so i just, i don't think twice about

it now i'm talking about your last name >> good, i have no doubt i expect nothing less from you let's talk about corporate america. because corporate america is on a binge. defaults in most bonds issued by corporations, ak junk bonds, $328 have been issueed from coin base to crcrocks this year alone shouldn't investors be worried about companies racking up debt? >> with all the growth in junk bonds, you may look at it and say, be concerned. but actually the quality of the high yield market over the last ten years has improved >> as has the default rate, falling sharply on the fwraf on the right-hand side, companies

are rushing to take advantage of cheap rates as we finance their loans. there are negative catalysts like the fed tapering bond program, higher inflation and j.p. morgan lowered the forecast because of the delta covid-19 variant and if are you wondering to invest in actual junk bonds, you need a broker. i picked a few for you these are all junk bond ets. you can see they have brought us double digits in return. although, still sharply below the s&p 500 returns during that exact same as we a all seen, corporate debt can seem like a great investment until not they have to see if they're warnings that the debt binge bubble could be set to

pop. >> a lot to think about a. lot to consider. you have to think the principle risk, rates are some day headed up so with the junk, you have maybe higher yields to start with than aaa or aa bonds but you've got both when rates, you do have principle risks on getting paid back with some of these companies if there is a slowdown in the economy. >> on the flip side, it seems like everybody i have spoke to are incredibly bullish they think they won'tible crease for another year-and-a-half. the default reits have increased. i spoke to several different people about this, no, no, it would be stupid if a company didn't russia rates. they need to refinance and take advantage and fund their mna activity or lbos, here letter buyouts as well.

so, i don't know >> the best thing to do is be buffet and get 11% from goldman sachs or something you know what i mean how does that work >> to be filthy rich >> i need help to get junk yields on aa company if you can. christina, thanks. right. see you later. >> thank you meantime, i will get you over to dom chu. he's got the big movers at the domino. >> andrew, so as you talk about this motion maybe markets are getting skittish junk bonds are using things different with regard to inflation market and everything else we have seen it play out september is seasonably a bad month for the market and it's playing out right now. as you can see with the dow and s&p and nasdaq, i put up a year-to-date performance of each of those we should know in september, we

are now down 3% for the dow. with renow down about 4% for the s&p 500 and down 5% for the nasdaq composite not a great month overall. that's just about the level that we've fallen from the record low levels with regard to the etx that tracks the major sectors on a month-to-date basis for september there is one and many listeners know what it is. it's energy, the earning sector is up 10%, the only sector out of 11 that's in positive territory. the numbers are down .2 of 1% and communication services is the worst performing sector. faceb performance moving to the down side. to put some names to these,

megacap technology com services so far for the month of september hasn't gotten help from the three most heavily weighted stocks. apple shares down 5% alphabet down 7 on this month-to-date basis alone, so andrew, joe, if you look at the way things are shaping up for the month of september, it's probably a month to remember back over to you. >> dom at the domino take a look at the list. what time do you put the list together >> at the 7:00 a.m. hour so it's ready to go in the 8:00 hour when we talk about those things >> sorry >> i'm grad you find value in that list. a lot of people want to see what people are clicking on these days >> thank you we will see you again. ceo rob davis will be joining us since taking over for ken frazier. the company announcing a deal minutes ago.

lots to talk about him next. before we get to a break, though, take a look at the markets. we will open up higher, the dow is 142 points for the dow. the nasdaq up 60 points. s&p 500 moving around a bit. "squawk" coming back after this.

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. breaking news. this morning, merck announcing a deal to buy acceleron pharma the founder of acceleron, i know their work so well and the giants in the field. i was actually looking at it that's why i was a little bit distracted really amazing that it's a cambridge, mass, company, founded by two guys genetics institute in 1980s is one of the first biotech firms. it was very controversial at the time i'll let you get to the merck ceo. we're excited to have him on thanks for doing with this >> joe, distracted by science is always okay to me. rob davis joins us, the ceo of

merck. tell us about the deal for 11.5 billion for acceleron. what does it signal for your strategy for merck going forward? >> first of all, meg, thank you for having me on it's an exciting day for the company. frankly, it's an exciting day for patients with pulmonary hypertension this is a devastating disease. if you look at it at seven years, patients have 50% mortality. first and foremost, we are so excited to join with acceleron and really help deliver for these patients that still have importance feed. if you look at this, why we're so excited we have long been a science-based, science-driven company. acceleron is very similar to that and obviously what we see here is the opportunity to get a potential first in class foundational asset in what is such an important area of

medicine so we're excited about the deal. it broadens and diversifies our pipeline, more importantly, it really compliments our cardiovascular pipeline and returns us to our expertise for cardiovascular care for many years. >> i know one of the things that folks are so excited about this drug is that it could potentially be the first disease-modifying drug for arterial hurp tension. th hypertension how much are you expecting to see an impact from this drug on this disease. >> >> well, as you say, that's really why with see this has the potential to be foundational it's the first non-vaso dilator of the space it's an add-on therapy obviously, this is a disease if have you it, you progress fairly

quickly through a whole host of different regimens, most are vaso dva dilators and we think fundamentally change the course of this and potentially as you mentioned with the disease-modifying the potential characteristics of the drugs, even then to go into broader things than pah. >> we know acceleron had a partnership with bristol-myers what was the process of this deal were you dukeing it out with anybody else >> well, i can't speak for acceleron and the conversations they've had. i can tell you, this is a company we have been watching for quite some time. as may know, our chief scientist is a cardiologist by training, has deep expertise we have a whole team at merck very focussed on this, so this

is something we have been watching when they put out positive phase 2 data earlier this year in june, we got excited about the opportunity of what this could be and started having conversations so, we feel good about the process, good about the value we're giving here. we think we will create value for patients and more importantly for both the merck shareholders and acceleron as well so it's a win-win all the way around >> what do you expect from in terms of future potential mna? do you have more plans to buy more and should we be looking at potential targets like this, where there is a phase 3 asset or are you looking potentially earlier in the pipeline? >> yeah. so if you look at our bd strategy overall, this is an important step it's not the only step so we do fully expect to continue to look to what we see is an exciting internal paper line with great science externally and what this deal gives you an example of, which i

think you can look to how we are thinking about our strategy, is it starts first. do we see an area where there is really compelling science. as i mentioned, we see potential therapy with tatter steps. we think we can bring value to that and take it further than what it would go on its own. so it's an area where we can build upon it. more importantly, it adds to our own portfolio and pipe line. it diversifys it, which is important. we're science driven but we are portfolio-informed and as i mentioned, from this particular case, it so nicely compliments what we have from a growing cardiovascular space so, obviously, we continue to be extremely excited about the opportunity to have impact on patients with cancer, with our lead drug kotruda, we are excited to broaden into other areas and bring in focus and expertise, which allowed us really to change so many lives

with cancer. bring that same focus and attention to other disease areas. we will do that through our pipeline and our continued business development >> one area of your pipeline, the entire world is watching right now is your covid-19 drug, but i think we're expecting phase 3 results on maybe within a few weeks. i think you said actually october. what can you tell us about that timing and how optimistic you are that this would be potentially the first pill for covid? >> yeah. well, if you look at what we have with the drug you are referring to, it's an anti-viral the primary completion date for our studies is the beginning of to have. we do have potentially the opportunity for an interim look at the data before that and with that and the potential for potentially looking at an emergency use authorization before the end of the year but i can tell you the enrollment for that study continues to go quite well

we're very excited about this and obviously given the ongoing impact that the pandemic is having and the fact that despite being at this you know a year-and-a-half, we still have so many people who are struggling with covid-19 we're excited to hopefully bring another regimen into the arm imtitarian -- armimentitarian this is a deb stating situation with covid-19. >> obviously, the phase 3 will tell us how well, this drug works for covid. can you level us with the previous data as much as we can? should we be thinking of this essentially as tammibl tamiflu do you think this could be way

more helpful than that, you can take it as soon as you get a diagnosis at home five days however long you have to take it and you are cured? >> yeah, so what this drug, is it is as you said if you are identifying through testing, someone who tests positive for covid and begins to show symptoms this is a bill you would take. what we believe it will do to significantly improve and reduce the chance, then you ultimately will be hospitalized and face serious infection. so it is something we think if we can get it early in the course of the disease, it can take it from being the dev78 disease that covid-19 is, something that's manageable. that's important balls it's a pill, it can be quite accessible to the general population so we're excited about this. because i do think it can really change the way people will think about covid-19 if they're unfortunate enough to be facing

it themselves. so it's something is that we need to get this data and we're work as urgently as we can because we know the need is great. >> rob, it's joe kernon. it's great to have you on, seriously. we hope we can do this a lot i'm wondering, is this deal and the structure and where you went for talent, is that a blue print you think for what merck will use again and again, is your in-house r&d, i mean, i'm sure you spend lots of money, that's great. do you find things at ridge backer, am sell ron, incubators out in opening stage companies in biotechnology, is that where you will find a lot of what you do in the future are you going to do this again and again or does your in-house research provide what you need to develop new drugs >> sure. i think it's important to understand the way we think

about it we think about our pipeline as one pipeline what we have internally which we continue to believe we have a growing and strong internal pipeline both in oncology and outside of oncology but you know the best science is found wherever you can get it. we do not believe it's only within the walls of merck. in fact, we look to augustment whatever we have internally with the best science we can find externally you will see us to prosecute our own discovery efforts and add to those through deals with ridgeback, what we're doing here with acceleron in addition to discovery, we also think a really important capably of ours is the ability to take a drug and take it to the development phrase and commercialize it, which is also a key strength i think we've demonstrated that with keytruda. we will bring that same muscle to this situation and then hopefully to other opportunities

we find down the road, both inside and outside the company. >> all right ralph davis. we appreciate you being with us. a lot of this news will continue to come out over the coming months thanks, rob. >> thank you very much for having me. it's been a privilege. >> the miniatta, was at cu, colorado guy, first person to receive an education he was born in colorado and went to the university of colorado molecular biologist. it's neat to see i guess he's >> there is a strong greek heritage in the biotech industry >> yes, thermoelectron genetics unheard of in 1980 for a professor to found a commercial venture look what it ushered in with a lot out of cambridge, obviously, the biogen everything else.

anyway, thanks, meg. >> thank you. >> we can get rob on this should be his place don't you think? >> i think so. >> okay. coming up, the senate is reach ac deal to avoid a government shutdown we will discuss with the former white house chief of staff nick mulvaney ahead to break a. look at some of the winners in the s&p 500 this morning we'll be right back right after this >> hey, coach prime... i think you've got what it takes to wear the aflacket. style, charisma, and a smile, that's a 21 out of 10! [aflac!] you know, aflac can help keep unexpected healthcare costs from ruining someone's finances. check out this coverage... you still got it coach, you still got it! i never lost it! yeah! [aflac!] you see that coverage? with that wingspan

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. who edsel was, daffy is launching today, an app hoping to use the advances in fintech and charitable giving. joining us is one of the co-founder aaron nash. on the company of acorn, which cnbc owns a stake. logical. i get it what acorpns has done, billions of dollars under management. why not? why not take it to the next level with charity because we all like to do it sometimes we're not sure how if you can press a button on something you saved in a decent fund that's grown and self directed it to your charity, that's basically the idea. >> hey joe, great to be here it's an exciting day in silicon valley daffy is now live in the app store. daffy is a not-for-profit

community. it's organized around a simple idea it would be much better if everyone put something aside from those less fortunate than themselves just like acorns, you sign up, you commit to putting a little money aside every week, every month or every year with your bank account and all of a sudden you are automatically being that generous person that most of us really want to be. >> 90-to-100 million households donate to charity every year people probably don't realize, $470 become. that's almost 2.3% of gdp. it has been said we are probably the most charitable country on earth. we still do better people at the end of the year, i think when they do their taxes, they try to add everything up and go, oh my god, i need to add things up to be more charitable. >> that's exactly right. it turns out, we talked to a lot of people and we discovered most

people are just busy they have work, social life, obviously, there is a lot going on they want to be generous they were taught they should be putting money aside. it will help them give the same way that acorns and other apps have made it possible to automate people's savings for retirement and children. why can't we use this great technology to help people be more generous more often >> so it's an easy way for number one the money to go in, to go to somewhere, also it can grow tax-free, you got vehicles that like acorns that can adjust your asset allocation or as it grows, make sure that you've got the right mix of things in so you grow it well so you can grow it effectively, you can have a nice savings account or

to give it to charity. sort of a similar idea. >> reporter: well, the money is all contributed automatically, weekly or monthly. one of the things you get to choose is which investment portfolio you can put that into. you can choose a standard portfolio of etfs. we offer them on deciding on governs nance and whatever you grow, you increase your impact wherever you are, if you want to give money to over 1.5 million charities, have you an app on your phone, you open it up, you hit donate boom, the money goes off, you never have to worry about a tax receipt again or scramble at the end of the year. all those things that drive people crazy when they're trying to do the right thing. which is give money to organizations that support people >> all right today is the day that's great adam, thanks thanks for not only thanks for

coming, thanks for creating this that's great we appreciate it >> thank you, joe. thank you for supporting us. >> you are very welcome. still to come, we will talk the dysfunction in d.c. and the fight to raise the debt limit next our exclusive interview with fanatics executive michael rubin in trading cars and it's hispanic heritage month all month long, business leaders and our own on-air average oers and re -- anchors here is louis barajas. >> the financial advice i give to young latinos, they focus on saving as early in their careers as they possibly can after 30 years of working with clients starting out and making multi-millions that's the key to success. there are no crystal balls use your common sense. financial planning and savings

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. welcome back to "squawk box. i'm ylan mui in walk congress is prepared to avert one crisis but there are plenty of other pitfalls today, the senate will vote on a bill to keep it funded through december 3rd it's expected to pass with republican and democrat support and head over to the house both parties are confident they can get it to the president's desk before the government runs out of money at midnight tonight so the drama is narrowed around the fate of a bipartisan infrastructure bill. moderate and progressive democrats who remain deadlocked over it as well as over the bigger social spending package president biden held last-minute talks with nancy pelosi and chuck schumer in the oval office yesterday. the white house called both pieces of the agenda must pass priorities as she returned to the capitol, pelosi says her plan is still to bring the bill to the floor today. but scheduling the vote doesn't mean she has the vote. she was still working the phone

last night during the congressional baseball game. president biden made an enthusiastic appearance as well. there was video of people in the fans chanting 3.5 as a reference to that social spending package, joe. i don't think anyone was out there chanting infrastructure. that's over to you. >> ylan, is it stuvy, do you know who greg stuvy is, he's a congressman. he hit it out of the park. >> he hit a home run. >> yes, that's the first time since this game moved to national, to that park that someone has hit it it looks like a real game, doesn't it he's a republican, too, andrew, not for nothing, but. >> it's not the harlem globe trotters i don't know what you are trying to suggest here. like this is some kind of fake baseball game. >> why was i suggesting that

>> that's the congressional, fast pitch did you see the pitch? full twimt equipment and a home run. those aren't the nationals those are congress people. >> yes >> kind of cool. >> all right joining us, mick mulvaney who served as the white house chief of staff is still a founder, heidi heitcamp sends gifts former senator of north dakota, sends me a fargo tee-shirt. >> hi, heidi heitcamp. now she is a founding board member of one country project and cnbc contributor thanks to you both heidi, is it steuby, do you know? yes, it's steuby, greg steuben from nevada. >> did you ever play, nick, you

never hit one out of the park. >> the last person to hit the ball over the fence was ron paul back in the 1990s. it's been a long time since that happened. >> that is amazing so rapid's father ron, the libertarian. all right. let's start. so, heidi, lately, i'm not sure. i mean i still get tweets about you that a lot of people think you really come around in terms of spending and fought being as much, raising taxes as much. are you the right person to be in a date with mulvaney or are you ready to switch parties at this point >> on the debt limit, i think i am the right person. i think nick will have to admit that almost 8 trillion of that debt was added during the administration he served in raising the debt of this country over 30% maybe the people who voted for that august to actually extend the debt limit so this game that the republicans are playing on the

debt limit is number one it's dangerous. number two, it flies in the face that theth that that 30% of that debt was done during the trump administration. >> what do you think >> it's already been spent we have the same song and dance, joe, every 18 months now as to whether or not it's your debt orpy debt. the debt limit is going to be raised no question about it what you are seeing this morning on funding the government should be educational which is there is bipartisan support to fund the government and raise the debt ceiling if you do just those things heidi will tell you, if these bills are clean, single issue bills, they probably passed fairly easily with bipartisan support. it's when one party or other, typically the party in charge, not always, tries to gain 11age adding something else to the bill you get in trouble. a clean debt ceiling would pass easily in the senate heidi knows it.

>> i'm not sure i agree with that i think mitch is holding it hostage. i think you are misreading the tea leaves in the senate i this i that i want to put maximum pressure on the reconciliation bill and they want to leverage a very dangerous tool janet yellen said the drop date is october 18th. she's done after that she can't use any more extraordinary measures. we need to do this today i really think mitch mcconnell will not do a clean debt increase. >> i wish everybody had been to the game that game is probably the highlight of bipartisan in the year i think heidi used to play i can't remember it shows that people have friends across the aisle we can work across the aisle and if we actually sat down to do something on a bipartisan basis, we could what heidi forgets is that the

democrats use leverage to raise the spending in 2017 they wanted more money everybody uses leverage in wauchlthdz it's up to the party in charge to step back and say, you know what, let's do it the right way on a bipartisan basis and move forward we're not going to agree on a 3.5 trillion when it comes to the basics, funding the government raising the debt ceiling there is absolutely bipartisan support in washington for that if you handle it properly. >> i think the interesting thing is whether this infrastructure will pass. if everybody is looking at this, as if there is not going to be one republican vote. you have to get every democrat vote that's not true. i think you will get a fair percentage of republicans will vote for that infrastructure package. they want to bring back that bridge, that hospital that project that they have been waiting on, so i think nancy would be smart to advance the infrastructure bill, have a victory for joe biden and build momentum to get this second

reconciliation done. >> okay. i think she's probably right, joe. >> could it pass today, you think, mick? you still have, you nknow peopl. >> i think here's the sticking points senator heitcamp is right in that there is republican support. there is probably half but that's good for washington, d.c. but they want to make sure it's a stand alone piece of legislation. if i knew it was just the infrastructure bill, i could support it if somehow it contributes in some fashion, which is not the right numbers, it's probably north of five. it contributes to that larger bill passing, then i don't think i can support it if mrs. pelosi wanted to pass the infrastructure she would say we will deal with these separately from the beginning they have been tied together that is what is giving republicans hesitancy of the supporting the 1.2 trillion

infrastructure bill. >> the infrastructure bill, the one considered in the house is a baked cake it's not going to change it's yes or no and so at the end of the day republicans have to make up their mind both united states senators supported that bipartisan bill i think that would be awfully hard for our congressmen not to support it given the support it has here at home among various construction industries and people that work in construction. so i think we've got to wait to see how many republicans and i think they could, in fact. , give the margin of victory for the infrastructure package today. >> hey, heidi, i haven't had a chance to talk to new quite a while. i need to talk to you about the basis issue. i don't understand, i think i know you, i like you i don't understand her perspectives

>> on farmers. >> at some point -- >> andrew, andrew, that's the stepped-up basis it was the tax at debt i can't tell how many say how often i've had to explain this there is think things. what itself in the rate? how do you calculate the tax base and what's the incidence of the tax and for the first time, this package would have taxed unrealized capital gains that's my objection. that's my argument i think they needed to do better carveouts for stepped-up basis for family businesses. i don't think that they've figured that out really well so i'm for stepped-up basis reform i don't think you should tax unrealized capital gain. >> so how should it who, >> if you have a carry forward basis, you can carry forward the basis. when it's sold. >> your family ostensibly could carry it forever >> well, sure.

i mean, i like tory mind people the rocky fellers don't own standard oil 84 people eventually alienate these assets and the big tax guise is charitable giving. that gain will never be passed so a lot of people, people are focused on are people that hav given the pledge to give money to charity that capital gain will never get taxed under anybody's proposal >> heidi heitcamp, thank you nick mulvaney, thank you thank you for being with us this morning. we'll be right back on "squawk box. ♪ feel stuck with credit card debt? move to sofi and feel what it's like to get your money right. ♪ ♪ move your high-interest debt to a sofi personal loan.

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rnltsz welcome back to "squawk box" this morning. the co-founder of a private equity firm joining me, delivering at the alpha conference i asked him, where he thinks we are right now in the public markets. >> stuff happens in october. we got government activity we got potential of the fall, a strap-in it's going to be an interesting time with both opportunities at risk >> are you wearing your seatbelt, bud? you think october. you think this october is going to be an october to remember >> wednesday >> you tell me >> november. >> you got to extrapolate out ahead of that. >> you do. >> predicting the markets?

>> no, i'm thinking it's never going to go down we've had two start of false starts coming up, fanatics executive chairman michael rubin. "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, the world works with servicenow.

it's moving day. and while her friends are doing the heavy lifting, jess is busy moving her xfinity internet and tv services. it only takes about a minute. wait, a minute? but what have you been doing for the last two hours?

...delegating? oh, good one. move your xfinity services without breaking a sweat. xfinity makes moving easy. go online to transfer your services in about a minute. get started today. welcome back to "squawk. this week sports merchandising giants fanatics announced its trading card ventures bumped

equities a private valuation now over $10 billion. that's separate from their $18 billion valuation. their trading cards scored exclusive deals with the nfl, nba and cutting out cards player tops joining us is michael rubin ceo of fanatics. michael this is like a master stroke of deal-making and some rough stuff in the world of tops baseball cards and the history of that. and somehow you got in there, struck a deal with the league and then cut those tops folks off at the knees how did you do that? >> you know, first of all, great to see you, it's always good to be with you guys this is going back to a completely different vision where the trading card industry is going i think you want to think about the experience, it's brutal today. you got to buy primary cards, so many in the middle of it

you sell secondary cards somewhere else another party, you storm with somebody else. this was where we got our vision for incredible experiences to the manufacturers they never vigsd a much more direct-to-consumer model and creating a great collection of space. it's what we did in the merchandising category in our financial examiners business >> help me with the $10 billion valuation. a lot of folks on wall street are figuring out how to get to 10 billion i'll give you a couple reference points, tops when it was going public it was valued at a little more than a become half was assigned effectively to the candy gum busy, ba zook ka and the like half a billion for the cards, maybe a little more. obviously, that was one week you add on the other leagues have you on top of that then

tell me about the next part. is this the secondary market, the digital component that get you that sort of become the multiplier >> first and foremost, the traditional trading cards manufacturers will make close to a little in ebitda this year in a combined basis there were several companies, manufacturing trading cards, tops, upper deck in aggregate it's highly probable this is close to a billion that is also in distributors, who sell to retailers and resellers and put them on ebay who sell them to end collectors. so, you know, look, these are smart investment they boost three-to-five times return once more direct to consumer and adding in kind of this integrated partner experience of having the primary card sold, secondary capabilities, the grading and breaking and

insurance and storage and financing. there is a very mass ive opportunity but i'll give you a reference point to sell to distributors. >> what's the chance, michael, you ends up buying tops? one of the things have you done over the years is gone in, in other instances, effectively cut out a company that was a manufacturer by making a separate deal with the league and coming after and bought them at a lower valuation >> first we think about what is the fan's best interests, the collector's best interest. the original examiners business was about giving much more access and manied to the fan and here in the trading card business, this hobby has so many people in the middle of it and so fer perfectly set up to have an integrated direct to consumer experience farce mna, look, we have done eight mna deals in the examiners division over the past ten

years, i think we believe, we think all these manufacturing companies, they do what they do. they didn't have a vision for the collective integrated consumer experience. i think it's absolutely possible to buy 100 trading card companies. they're good companies. >> i got a tough question from an mna lawyer who said to me, major league baseball long had an anti-trust exemption as effectively monopoly when they get into business with people like michael and cut out companies as a result of these types of transactions, it makes it harder for courts to hold up or the supreme court to hold up that they are not using a monopoly power improperly. what do you think? >> that i would like to speak to the trusted rules of a league or what exemptions. what i can tell you is leagues move rights all the time media rights move all the time, consumer products move all the time, sponsorship rights move

all the time they are honoring the contracts. the nfl players association. the nba players association, major league players association. each property independent ply make a decision that they want to give a much better experience for their, you know, collector's long term. they want to grow the hobby. so they thought the vision that we had makes so much more sense and also you know leveraging the 80 million plus fans we sponsor in our database, they built structural damage platform, so from my perspective, this is a normal day in the sports business for sports property, the players to move rights around it happens all the time. >> michael, we got to have you come on back because it's a longer conversation i have so many questions, including whether you think people will basically buy cars, have them stored and never get them this is where this is all headed you will buy a card, a piece of a card, it will be like art. it will stay in a warehouse. it will never be delivered to

you. it's very interesting. >> that's the most important part this is a financial asset of the younger generation and i believe with the collector experience, we can grow this business many times and it's a hobby, it's a great collection >> michael, just be happy if you are going to blake the 76ers get vaccinated i'm surprised you didn't get to that >> we didn't have enough time. >> we didn't have enough time. >> 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.

good morning

the third quarter leans towards a close the major averages are on pace for the worst month in about a year drama in d.c it looks like lawmakers might avoid a shutdown, infrastructure bill is back up in the air there is more infighting over the 3.5 trillion dollar budget bill if you've ever had trouble understanding inflation, we may have the best example possible dollar tree is raising its pr prices more of its products will be above a dollar a dollar 50. the final hour of "squawk box" begins right there >> good morning. welcome to "squawk box," right

here on cnbc we are live at time's square along with joe kernon. becky is off today take a look at the u.s. equities futures. we are looking up a a bit of a down day more than a bit of a down day. the dow up 130 points. nasdaq looking to open 68 points higher the s&p 500 looking to open 16 points higher. check out shares we joke, we josh about this the company's quarterly missed on the bottom line. the company cut the forecast having supply chain problems, also higher costs. we have not gone in there on a rainy sunday afternoon in a while so look at the britas and vaporizers >> and the duvets. do you have one yet? >> you mean a weighted a weighted blanket i don't know if i like it.

>> i'm not going to ask you much more what you sleep in. >> i told you the one great purchase of the pandemic, sorkin family was an eight sleep mattress cover which controls the temperature. >> i'm talking about your apparel. >> i don't know why you would. >> we have just 90 minutes ray way from something anything anything but this. from the opening bell is what i think we president 90 minutes away from. the final day of the month and the third quarter has been a rough september for the major averages they're all on pace forb the worst month in about a year. mike santoli joins us to tell us what is driving the markets. mike, take us away. >> literally for a couple of minutes, andrew, yeah, the interesting spot here for the markets, we're looking at the first down week, down month rather down about 4% from the high. the top five stocks in the s&p 500 worth about a quarter of the

index, are down. the rest of the market is holding up a little bit better where we are takes us back to early july levels. there has been a reset at the index level that is not really broken down fully underneath the surface, outside of big growth, stuff seems to be firming up, selling rallies in the last few days, it been hard for any rebound to get too much traction take a look at the u.s. dollar index. everyone is noticing what looks like a breakout on this chart. if you look at the shorter term, right. we're getting back to highs from before the covid crisis. this puts it in a little bit of perspective. the absolute levels not particularly challenging a lot of the recent move is the brick pound has been in freefall you have had fed tapering. yield advantage, maybe a growth advantage. so it seems as if this could restrain some of the inflation concerns next year it is a little tightening action in terms of where if the dollar

stays strong it seems like we are challenging the top of the rate. what kind of market is this? we trip back and forth between the more cyclical and yield sensitive ones take a look at microsoft relative to j.p. morgan shares a kind of an interesting crossover. it happened back here in the spring, in the other direction so have you j.p. morgan slightly overtaking this tells a little of the story of this market we used the growth stocks to act as a buffer. it seemed like it was flagging, right now j.p. morgan has been on an absolute tear. very sensitive to those yields it shows you what's mostly been happening in the tough month of september, maybe it will bleed over into october is a very messy rotation with a lot of policy noise around it, but still, the market is seeming to position from a, for a higher yield, a return to that inflation trade, maybe a re-acceleration, even though

third quarter earnings estimates gets revised down. that's a kind of offsetting currents situation in the markets here, guys. >> what do you make of bed bath and beyond >> yeah, this one in particular very difficult to know i think this is going to be historic with many that perform well macy's, how much merchandise did you have how much were you able to turn through in terms of the trixal cost was the third quarter as strong as you thought it was? bed bath & beyond has been kind of a revival story you know, if recent several months it seems some of that was built in there this obviously, i know we had a downgrade of kohl's too. maybe scrutiny going into october as we try to figure out how to position for holiday and the stocks have been better tan you might have expected. >> mike, thank you

we got to step it up >> yep >> we got to step up the bed, bath and beyond business >> a lot >> i've said it many times they don't sell beds it's false advertising. >> the beyond part, beyond the bed. >> okay. why is bedding the first word? >> bedding >> it doesn't say bedding. senate majority chuck schumer says the fed will vote and the house will have to pass a bill and send it to president biden's desk the the bill is expected to fail and the fate of the senate pass bipartisan infrastructure bill is far from certain in the house. speaker nancy pelosi says she will vote today. a group of progressive democrats want to hold off until lawmakers agree what will be in the

multi-billion dollar proposal. the economic adviser, jared bernstein, does anyone know the president better than you in. >> there are a few. >> we always have a meeting of the mind, though, you no that we do you are always honest with me, although you are very smooth in explaining. >> smooth and honest >> the president used to be seen as a real moderate and you are seen what's written now about whether he's, i don't know the progressives maybe have too much of his ear at this point. are you on board for everything in the 3.5 trillion or some people say it's as much as 5 trillion and you know some of the gimmicks we're only going to do some things a couple years. you know it will be extended it will cost a lot more. >> first of all, let me say, i can think of no better place to spend the last quarter with you all. so thank you for inviting me first of all, i don't think labels like moderate really

describe much these days in terms of what's on the docket here secondly it's not so much of what i think. these proposals, whether it's investments in infrastructure, bridges, broadband, safe drinking water for kids faced with lead in their pipes and the implications of that for their brain development, the idea in the care side, in child air, elder care, cutting middle class families and 4 million small businesses, this is what the american people want to see. that's not just me speaking. every one of the ideas i just put forth polls at a level of two-thirds to 80% with the americans pay cross the board. what is president is doing here. i'm not sure where you put it on

the continuum, the political continuum matters, to the heart of it. is to the extent the american people need and american economy desperately needs this investment that's on the docket today. that itself why we are pushing so hard to get them over the goal line. >> we need those words to scribe what we are seeing in the interparty disagreements and squabbles in the party i understand what you said what people want. then the moderates that seem to be dug in very deal. i'm talking in the house and the senate, they all have constituents they are considering that don't want all this done. i mean okay. manchin in west virginia and take the house guys in new jersey or new york, or someone, some other moderates that aren't

full, aren't for the sinker of this they may be gone that's what you will hear people say. >> i understand. >> those are the rules 2022, they're going to be gone >> hold on hold on. so first of all, when you talk two magnitudes and a political body of 535 people will you have lots of squabbling and folks arguing you. we want this, more of that what i'm here to tell you and i have been party to many of these meetings that all of this squabbling has been amplified here the key thread is that every democrat who whom i've spoken and the president has met with by the way, when it comes to infrastructure a. lot of republicans, too, are all growing in the same direction.

they're all rowing in the same direction. if you are talking about joe manchin, kyrsten sinema. just yesterday, joe manchin was talking about the importance of injecting fairness into the tax code, the importance of rolling back some of the policies that were amplified in the last administration in the tax that work over well he proposed to flip that and to pay for these initiatives so they they don't add, to pay for these initiatives with a deep set of tax fairness policies t they are ward and many senators agreed upon. so once again, i under score said of trying to figure out what senator a versus senator b wants. the key thing to to is to drill down cutting costs, lower

prescription drugs, child care, elder care so pot holes covering up of potholes that brake your car, getting across the bridge so you can get home these are practical things, financed by progressive taxation that tacks work. something we haven't done in this country for many decades. >> jared can you explain why there is no, carried interest, an issue that the democrats have talked about for a very long time as being a loophole italked about this, is not a part of this in any meaningful way? >> i think as we've negotiated the tax deal some things have fallen out there are things in the plan that are highly aggressives. incomes above 5 million, higher cpap janes tax rates

the president's idea of stepping up the basis that's something he's pushed very hard for and an extreme policy >> i don't think, i think some progressives aren't quite too progressive. i argue using this tax proposal, it taxes wages, wage inners more than actually it taxes well. >> first of all, some things have come in, fallen out, carrying interest is obviously the president talked about closing that loophole. wait a second. >> let me tell you one thing these taxes hit nobody under 400,000. nobody under 400,000 so i don't get where your wage comes from >> billionaires get off scott free after all the talk and

elizabeth warrens. >> once you are tax, capital gains at a higher rate, how request you tell me, possibly tell me you are talking about -- >> they take a loan against the appreciated shares >> now you are talking about, okay, now you are talking unrealized gains i understand that, that's something the president leaned into, correct. the president has said that should be on the table, too. >> it's not. >> don't tell me these progressive tax measures are not reaching millionaires and billionaires and the scores are very explicit. the compliance measures we've talked about, ramping up the compliance measures, 23% of tax compliance, it's the top 1%. >> that's the reason i'm hoping on the carried interest. we have known each other a long time, i'm hoping you can explain it to the public this is such a glaring privileged position for a certain group of people overjust

about everybody else it's not something that will raise a fortune. but for those that look at the tax policy as a part of a democracy where people have to believe in it. they say, this makes no sense. >> you make a good point. >> explain the rationality and logic of how that can come out >> give me a chance. >> woes pocket who is sleeping with who what is happening in this conversation that we are having this conversation? >> okay. so give me a chance to respond, please no filibustering the point that you are make secretary a completely co-hernt and credible point as you well know, when you go up to capitol hill and you start negotiating on taxes, there are more lobbyists in this town on taxes than there are members of congress the question you have to ask yourself is not only what sells out, not what fell out, it shouldn't have fallen out, but

what is in is this drewly a progressive tax plan that hits only taxpayers above 400,000, that taxes wellment overwork that holds harmless the bottom 98% of the tax-paying public and the answer is absolutely yes. so if you're collecting, literally trillions in tax revenue from the top 1 and 2%. the idea is objectively false. >> it's pam possible how are these lobbyists. how are some private equity more powerful than any industry in america? >> if you look at the tax measures that have passed. we have beat these lobbyists so many when it comes to raising taxes on the wealthy on financing tax cuts for the

middle tax going over tax invasion by 28% it comes from that narrow niche. okay, we're hitting the wealthy. are you picking out one piece. i agree, it should be in there you are ignoring the trademarks of dollars of revenue increases on the top 2% that are still in there. >> it's still taxing income. you are really not taxing wealth >> it is an income tax so, you know, that is a part of it but we're also taxing wealth >> all right jared, all right thank you. >> it's good to see you. >> you too when we come back more highlights of the conference with j.p. morgan wealth management ceo had to say about the markets. as we head to break, check out shares of dollar tree. they're calm at the moment they surged 16% yesterday after

that announced price points, yes, above $1. stay tuned we'll talk more about that and so much when "squawk" comes back after this ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ 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. re-entering data that employees could enter themselves? that's why i get up in the morning!

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. welcome back to "squawk. cnbc's delivering alpha conference becky talked about markets it should end with markets but in this case as the head of asset wealth management, chief j.p. morgan, mary erhodes says the last few months have not been business as usual >> alpha markets up 30-to-50% is not normal alpha in those numbers of 5,000 to 100 basis points is not normal so we're enjoying it but this is not a normal time period >> erdiscuss despite real estate developer evergrand. >> everyone is talking about evergrand as if it's a country it's a company, it's not a small company. it's not the largest thing that's happening in china. it's only 2% of the real estate

debt market of china 1% of the u.s. bond market and less than half a percent of the china local bond market. so, no, is it a lehman brothers,r no, is it a bear stearns that leads to something we all know about? maybe. it's not as inner connected as what you are talking about when you think about the banking system in different countries around the world >> that was j.p. morgan's becky erdiscuss. delivering alpha.com for d details. coming up the dean of stanford university of medicine is coming up, dr. lloyd minor. is coming up, dr. lloyd minor. >>

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. welcome back to "squawk box. new york teachers have a dead line of tomorrow afternoon to get vaccinated against the coronavirus. earlier this week, a panel favoring over objections of some teachers over a high profile mandate from american airlines causing 600 to let go. they said 97% of employees had gotten at least one dose of the vax. joining to us talk about this and the u.s. boothser shot campaign is dr. lloyd minor, he is the dean of stanford university school of medicine. good morning to you, lloyd we are coming on to this moment now where folks that had a mandate are having to figure out ways to enforce it it's one thing to say you are doing it it's another to enforce it

i think it will get a little more complicated in the next coming days and weeks. no >> yes, i think it will be complicated. i think it's important these are among the safe and most effective vaccines ever developed. we have more data on these vaccines for covid-19 than on any other vaccine. consistently, they have shown they are safe and effective. so many organizations, our own healthcare delivery system consistent with guidelines from the california department of public health is requiring vaccination or a medical religious exemption. we are putting in place measures again with requirements from the state to implement those requirements and to place those who have not complied on heave without pay. >> why do you think companies have nothd not moved to using economicings as a tool in this one of the things that's been fascinating is watching what

delta did. if you get sick, it costs us money. so if are you not vaccinated, we will start charging you in advance like a health insurance company does do you think we will get to a point this fall, are you not a smoker, so you get a lower rate. will you check off a box to say you are vaccinated or not and there will be a different rate for you? >> i think that is a route that many companies, many organizations may very well follow either through increasing insurance premiums or other incentives for vaccinations or disincentives for passing along costs for those that are not vaccinated but i do think an economic approach along with various mandates and requirements is a way to pursue going forward. >> one of the things that we're all trying to figure out is when there will be a full-on, if there ever will be, a number-on return-to-work given the nature of some companies moving toward

hybrid for good. but a lot of companies that have put off a return to the office, if you will, have done that through january. i believe on the assumption that children 5 through 11 likely will have an opportunity to get vaccinated this fall and winter. the question is how much hesitancy do you think there will be around doing that, meaning parents vaccinating their children and if there is hesitancy, how that changes or it doesn't change the dynamic about the return to the office >> yes, i have to say my crystal ball has been cloudy throughout this pandemic. i have been surprised, shocked by some of the vaccine hesitancy that we've seen among adults i think that places an ever increasing responsibility of those in science and medicine to communicate what we know about the safety and efficacy of these vaccines we are anticipating as you indicated later in october,

perhaps, to have fda approval that hopefully cdc recommendations for children age 5 to 11 with the pfizer biontech vaccination. i hope parents will sign their children up and get them vaccinated again the trials we participated in at stanford are quite compelling they are safe and effective in children. i hope the fact as of now we have not seen the large emergence of variants other than delta. that is delta is still the predominant variant. i hope that means that as the delta surge declines, that we won't have another variant emerge >> dr. minor, very good to see you. we appreciate your perspective on all that thanks >> rick santoli is standing by patiently with breaking economic data >> reporter: good morning, joe, yes. we are expecting around $330,000

on initial claims that would take it below that 351,000 it still wouldn't change 312,000 is the current low it went the other way. 362,000. so that's up 11,000. but i'm sure the revisions will trickle in for last week and if you look at continuing claims, they moved a bit higher as well 2.80 million 202,000, the low watermark there, which is the good way to proceed is 2 million 715,000 from the first week of the month. so we see that now, let's look at what's going on with our last trip around the block, on; gdp 'it actually gets upgradeed from 6.6 to 6.7. the consumption numbers, wow! up to 12% they moved higher. what stayed the same was the price index. the price index is up 6.1% that remains at a 40-year high going back to 1981 and the core

pce quarter over quarter also remains up at 6.1. that's not a 40-queer high that's a 48-year high going back to 1983. and if we look at the following and i think this is really important. quickly, a two-year note up four basis points on the quarter a. ten-year note up six basis points on the quarter. here's the good one. 30-year bonds unchanged on the quarter at 208 the dollar index up over 2% on the quarter. boone yields virtually unchanged. this makes sense we have all been saying that boom yields from a three-month to three-and-a-half month high it do you havetails back the point, everything i read today, joe, oh, bonds, this is a technical move nothing fundamental am yet, give me a break rates are too low, inflation is too high and policies are too still lative

abc. what does that equal that equals a real move. that's what it equals. back to you. >> i don't know, we get lulled leishman is here can we get lulled into a false sense of security, the ten year has been down there so long, we don't believe it really, we don't realize it may be down there for a reason there is a lot of different reasons people bring up. let's bring in steve leishman and the chief economist at adp, steve, to you first, when rick talks like that it's like, yeah, all those factors have been in for for white a while. they haven't gotten upward drift. rick would say now the tapering will end, some day rates if up maybe we'll get a true price these days is that his point? >> i don't think that's his point. i think rick would argue there is still so much federal reserve purchases, it's not a two price.

i think rick would say, i'm sorry to put words in the mouth of my esteemed colleague from chicago. i say there is still a lot of fed buying and fed shenanigans going on in the bond market. let me put it in the context, joe, one of the extraordinary things about this entire time of fed qe and fed zero rates is that it was down at 25 basis points if you go back and look at how the qe year behaved during most of the time that bernanke and yellen were doing this it was up 48 or 50 basis points. the real issue is not how high the two-year is. the real issue is how low it's been for so long we are still have the market and rick correct me on this, pricing in november 2022 as the first rate hike. yeah, it's higher than it was. it was down near 20.

now it's near 30 it's not 50 and the fed still teams to have this ridiculously long runway before the market is really pricing in too much in the way of rate hikes. so you can look at it as the glass half empty oh my goodness, it's 30. it was 20. i look at at this time other way, it's probably 50 but its only 30. >> before we get back, i want neil to weigh in i looked at your notes you got pa lot of thoughts on other things, why the ten year has stayed here or we're in an upward momentum. what do you think of what you just heard >> i think it's the power of forward guidance when the fed came out and said, look, we're going to tamer first, we're going to slow our bond purchases first and, no, they don't have to be complete before we start. i think we will spend some time on this. that's reflective in the bond market there is not an expectation

despite a real high level of inflation that the fed is going to do anything before they do this one thing, which is to taper and until they start tapering, i don't think you are going to see a real elevated increase >> we'll get some more from neil in a weekend is. did you want to talk to steve about anything are you mad at him for anything? if you are good or >> yeah. >> you know what, here's my issue. listen, it's nothing against steve. the problem is that the markets are a snapshot of a moment in time one frozen moment in time. in the old days, if i want to sell ten and ten, the minute is sound is out of my mouth, the order is no good anymore have you as to ask what i will do next. it's the same with percentages and markets. that's the snapshot right now. but the snapshot four months ago is that the cubs would be in the

world series who knows if that's right. the biggest issue i have is that when elizabeth warren calls the chairman dangerous she can have her opinion on dodd-frank she can have her opinion on esg, in the end, there is a lot of lip service. i think the real issue is we are all pointing toward inflation. this becomes a statement that puts a red check mark on the chairman's forehead. i don't think it's fair. i don't think there is an entire banker when it comes to interest rates and the taper. because this is the if you rules of the road of global central banking. so to me, to point to him on the issue of inflation is to basically besmirch the entire rulebook of what central banks are doing. i think that would be a very

relevant discussion. >> neil, we got to go. >> i want to get neil in >> oh, steve >> kneel, you think that supply chain issues are real, unless we get real wage gains that maybe inflation won't be as big a deal have i got that right? >> i think the biggest danger in this whole discussion is to appeal to conventional wisdom and wages are reacting the way they normally do when we see that wage growth we have the data at adp we provide payroll services to one in five workers in the united states we're not seeing wage increase in fact, wages peaked last year. they're growing but at a much slower rate. we're not seeing an acceleration if that growth that means they are unlikely to contribute to a permanent increase in inflation. that's what the fed is doing that's why they are giving more time to a very low, liquid environment that we have today

>> association steve i love when you two guys talk. nela is nice enough to come on the show we need to hear what she has to say. >> absolutely. >> something is interesting the way we are doing the four box. thanks. coming up, andrew, thank you. >> thank you >> facebook's, it's great, formalize safety chief goes before congress to answer questions about instagram's effects on teen's mental health. i can answer that. it's great ay tell you what to expect st tuned "squawk box" will be right back.

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. welcome back to "squawk box. as instagram drew a potentially negative impact on teens, facebook is returning to capitol hill today a look at what we can expect julia. >> reporter: well, andrew, facebook's global head of safety will be testifying for the senate subcommittee on consumer protection happening at 10:30 eastern today. this all comes after the "wall street journal's" expose of

facebook's knowledge of the negative impact of instagram on teens. ahead of the hearing, facebook provided to congress and published two research decks that the journal referenced saying it's not accurate to say this demonstrates that instagram taught for teen girls, noticing they say instagram made them feel better. these two decks have a total of 93 slides. each one with lengthy an notations around the controversial research one slide says that one in five teens, instagram makes them feel worse about themselves and the annotation was the research was fought intended and does not evaluate causal claims between instagram and health or well being. you can see how he discusses that do you that the committee's chair senator richard blumenthal said this will examine the toxic effects of facebook on young people and others, revelations have raise pro fund questions about what can and should be done to

protect people and ranking member portia blackburn is stating, mark zuckerberg's guiding principle is profit. they are full lay aware facebook has serious and harmful issues this same senatesubcommittee o tuesday will hold another hearing. this time with the facebook whistleblower. guys, we don't know exactly who that is just yet. >> honest question do you usually feel better or worse about yourself i know i feel worse about myself in most instances? >> when i scroll through instagram. unless i post something and get nice likes, then i feel good a minute or two, right, isn't that what happens here? >> don't look at me. >> you have never been on instagram? joe, you got to check it out, to figure out what we're talking about here. >> i miss some of the pictures, you feed an account? >> all these happy people on the

beach. >> what were you saying? i apologize. >> i don't say i am upset that i get sucked in and spend more time and maybe that makes me feel worse i don't think the content. >> guys, this is about team. >> i just guess i get built up so much on twitter, i just couldn't handle any more commitments. less secure. right. >> it's so good on twitter >> you know, they're so nice and complimentary on twitter why do i need any? dance on tiktok. thank you, we'll be watching, of course coming up, when we return, a deep dive into equities on this final day, what investors need to go know to go ahead ahead of q4, here are top performing stocks in the s&p in the past three months moderna up you do not want to own wynn

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shares of bed, bath and beyond are at one point down 20%. supply chain problems and bertha coombs is with us. joins us now stores have been remodeling, launching in-house brands. but no beds yet, still bertha, no beds. that's what gets me. >> you obviously don't shop at bed, bath and beyond they don't have beds, it's bedding. >> it's false advertising. i ask where the beds are >> it'sbed, booth and beyond, what was beyond their expectation were the shipping costs in the quarter they got worse if month to month, they said it ate in about 3.6% 360 basis points into margins. that was more than a full point

more than they were anticipating in terms of what they would ends up having to pay they also blamed covid and the delta variant surge in areas like texas, florida and california for reducing traffic. although, they did say back to college, back-to-school was strong, that impact was not enough to offset what they were seeing and they are not anticipating that it's going to get any better you can see shares now down 26% pre-market, andrew >> okay. joining us to talk about stocks in the fourth quarter, including supply china woes will dent earnings in covering the rates, angle, we have the head of u.s. rates strategy at bank of america global research. good morning to both of you. let's talk about bed, bath and beyond to the extent that it represents or does it? we'll find out, barbara, your sense of the supply chain problems that we may be seeing

ago cross the board, you think of fed-ex and so many others that talk about these additional costs that they're having to do with now. >> right look it's all kind of the pickup we've had since the end of covid. covid still isn't over you still have over. you still have a big delta push toward the u.s., though i will say it is starting to roll down. the supply chain issues will be with us for a while. they're not necessarily denting corporate earnings, because the earnings have been so strong, but we think over the course of 2022 you might start those some downward revisions due to supply chains, but you don't see it just yet on the overall market. >> mark, what do you think do you think we'll start to see more and more companies with wae warnings and earnings that reflect this

>> we do anticipate they'll work themselves out, but it will take more time, but we anticipate by the middle of next year, we're likely to see supply picture stabilize to some extent, companies to operate with more normal margins >> you say you think mid 2022? >> yeah. >> the supply chain problems will resolve themselves? when they do, what happens actually i wonder what it means for employment at that point >> it's going to take time again, it's difficult to pinpoint exactly when it happens. as was just noted, seeing delta fade will help a lot it will allow for ports and shipping channels to reopen. we anticipate we'll be in a better place on delta, certainly in the spring of next year than we are today as that occurs, you'll see production that picks back up,

you'll see bottlenecks that get eased. exactly when, i don't know, but in my mind we're thinking q2 time frame next year that's importantly also when you'll start to see inflation kick in as a headwind. it was very elevated this year, and next year it will look like it's easing to some extent, simply because you'll be using a higher prior-year level to base that on. so we anticipate you will begin to see a deceleration of overall inflation. >> barbara, are you in agreement with that? we were showing nike, which obviously is another company that's had some of these issues. >> right yes. look, if you think about the picture today, delta cases are down over 28% in the u.s. over the past week's reading. also, you're starting to see inflation start to roll over in the july and the august numbers,

so we would expect that it's not necessarily broad-based declines, but some of the places that really were kind of troublesome for the u.s., specifically used car sales, have come down dramatically. that's a very good sign of some early easing of supply chain issues we also think you have to stay in the u.s., the emerging markets have a lot of issues with china, specifically the issue over evergrande, also with the inflation issue there, and the same thing for europe, it's just not as strong as the u.s. earnings are not as strong the supports for the economy are strong, so staying in the u.s. is your best bet. >> but stay in the u.s. in tech or cyclicals or the banks? move towards the cyclicals and

value sectors as well. >> that's unfortunately or fortunately the conventional wisdom >> look, the angle we take on it is to think about it through a rates -- as you were discussing a short while ago, rates have been heading higher, and they're likely going to continue to move higher we're seeing better data driven by covid and reopening dynamics, and the overall rate we think that will continue. as that does, that will be a real challenge for some of the growth names that have done so well, due to a very, very low-rate environment if we're right and rates continue to go higher, the value will look more attractive, and you'll probably see better performance. >> mark and barbara, thank you we've got to jump. we'll talk soon. coming up, top stocks to watch. student.

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just over half an hour to the opening bell

dom has the opening numbers. >> just to put some more numbers around how bad it is, you heard about the 28% drop in the stock. well, over 4 million shares have already traded mea market. on a full average trading day, about 3.25 million shares. 9 keep an eye on that one. also, carmax shares moving lower. as we do, andrew, joe, just for you, we put out that most popular ticker searches, some

new entrants to the list, tesla always in the mix, and warby parker, and micron shares as well, all within the top ten by the way, the rest of them are up on twitter for me, as i always say @thedomino. and a potential meme stock, as well as an insurance company that's being mistaken for a maker of explosives in australia. >> what? >> i got that for you. the ticker is ori. check it out pretty fun. >> do you ever wear fake glasses, dom >> no, because i need real glasses. i wear contacts, because i'm told the lights here shine off my glasses, so they don't like the way it looks on -- >> i wear one contact lens, but i end up going around circles

like a shopping cart. >> what? a fine check on the markets. [ laughter ] looks pretty good, up 67 on the nasdaq, and the s&p indicated up 15 and change. we will be back -- is becky back tomorrow >> i don't know. hopefully. hope springs eternal >> what am i, chop lped liver? but we miss her. "squawk on the street" is next ♪ good thursday morning. i'm carl quintanilla, along with david faber and jim cramer has the day off. congress, as expected, does look to avert a government shutdown