♪ good friday morning. welcome to "squawk on the street." i'm carl quintanilla here with jim cramer and david faber america announces a treatment for covid. our road map begins with squawk, futures point to the rally to kick off a new quarter. >> in what could be a breakthrough for treating covid,

merck shares are soaring, and ridgeback's cofounders will join us live in a few minutes. zoom and five9 scrapping the merger amid scrutiny. beyond seeing jim on the air, on the daily shows, of course here, "mad money", and investors will get even more very soon with the new cnbc investing club you will send daily e-mails to detail your thoughts on the markets, you'll host periodic event, share more in video form, and a deeper insight to jim's charitable trust he candid reflectreflections.

>> we'll by sending e-mails and videos of course, we have 34 stocks, really a recommended list. i'll tell you when i screw up. here's what i did wrong. when you do something right, who cares? when you do something wrong, can you learn from it. i'm being a teacher. i always wanted to be a teacher. i was going to retire to teach a class. it turns out i have the best class here on c mobs. >> i was in my neighborhood, a guy says, you guys have helped me retire. i thought of you immediately, jim. that's your mission. >> we're fortunate to have the people from "mad money" called in, because i've done other work to try to explain why things go up or down that are mystified, but more importantly, say, i bought union pacific i thought the great reopening would occur. what i didn't count on was the port situation

well, do i just sit there and say i own facebook and it's been amazing and it's a great run, and i bought it at 50? no, i made a mistake with pacific. i can try to trade around it, bring it home or saying what a screwup. you never hear anyone on tv saying, boy, pacific was unbelievably wrong, i just screwed up david, when you screw up, no one ever hears about it. >> no, it's more interesting conversation, frankly. to your point, you do learn and can get a sense from people. by the way, i appreciate that when people tell me and admit to their mistakes it doesn't happen too often on cnbc but it is helpful when they do that. >> carl, i will tell you to, edu educate, teach and recommend, look, that one is too risky for

me, we also rank what we're about to sell, what we don't like, it's kind of like a brokerage house, we don't want your commission. we just want you to learn. i have been teaching stocks since 1983, but i've never had the audience to teach like i can have here. the fact that mark hoffman, cnbc, all the way down, all the way up, brian roberts, who is such a great guy -- there you go, i work for comcast. >> yes, i do. >> just a delight to education people and what i did right and, more importantly, what i didn't do right >> and the qr code will allow you to do that >> let's say i do a mad dash today, and it's on regeneron people say, that was a good 35 seconds.

david was able to flesh it out for another ten seconds. then what happens, that's it no we talked about how len schleiffer may say the drip is better, but that will happen, i'll give them inside. david has been saying this thin will happen for a long time. really quick, sign up, find out more at cnbc.com/investingclub, or just point your phone to the qr code at the bottom of your screen. >> and, jim, congratulations >> i need you to learn i need you to learn. thank you for the kind words. >> i'm happy that means you'll be sitting next to me for a long time i would say until i'm 48 years

old. i signed for five years. >> let's move on to what is, of course, a big story. for the overall markets, share of merck are up in the premarket. the drug maker and partner ridgeback that much ticks announcing at 6:00 a.m., the experimental covid pill, they stopped it early because of efficacy the fda said, yeah, we agree with that. move on. plan to file, get it going for emergency use authorization. they will do that. it is certainly possible this will be available perhaps before the end of the year, guys. it's turned the market it has merck shares up, some of the maker shares down. frankly it's a story i've been talking about since the first weeks of the pandemic, given my relationship with ridgeback therapeutic and its founders,

who will join us soon. it's been amazing to watch it move through from last summer, all the trials, and we've talked about it so many times, jim, as a potential breakthrough it's a five-day course, two pills a day. even if you're asymptomatic, but if you have symptoms, you get it early, you get a test, even breakthrough infection, whatever it might be, it knocks the virus down it does so quickly, makes are faw less infectious, and could be the game changer. also psychologically, because so many people refuse to engage in life, perhaps, because of concerns, and this changes that. i want to quote dr. topol, my expert -- he's well known to many of our viewers, because i was skeptical. he says, look, almost as good as intervenous monoclonal

antibodies, that's regen ross, but it's far simpler to get and take if you're getting symptoms. it maid turn out to be preventive after exposure, but the new trial was mild to moderate, and it was very, very promising. let's go back to what david was saying about the notion of what our country can do we had a -- there were a lot of people who changed plans because of the delta they did i show my card everywhere. i'm always worried when i matter someone is exposed you take away the worry of hearing that someone is exposed. can you imagine what life will be like? >> huge implications for the labor force, maybe for the supply crunch we're all in it's a global story, of course the white house already has some investments baked into some of this. >> it did. it does. i understand it's relatively easy to make. >> easy to make and easy to

ship obviously there are many countries where vaccination rates are much lower. >> what is the analogy >> it's more that tamiflu. frankly, it's more effective than that is in treating the flu. actually, we should put it to our guests so i want to get started with that in a second. >> i think one of the things that people have to understand the regeneron drug is great, but our country is not centered around a drip. if i told you you could work out two hours a day and lose weight or i could tell you there's a pill to help you lose weight our country is a pill-oriented country. i think what's terrific is psychologically -- look, i'm not afraid i have three moderna, but it's only after the third that i feel like i could sit next to you.

>> you were sitting next to me even after two actually we were sitting 30 feet apart when we didn't have any. it was march of 2020, when we first spoke to dr. wayne holman about a potential treatment for covid-19 how quickly can you move here if this thing shows that it's evocation and tolerable among humans >> we can advance this very quickly. it prevents disease when given as a prophylaxis to animals, and it reduces the severity of disease and the virals in the lung, when it's given as a treatment for mers and sars. >> it's great to see you both, founders of ridgeback.

it's been a long road in many ways, wayne. what gave you the confidence then in fact we would get to this moment today? >> hi, david, thanks so much for having us back it's a very exciting day you know, in drug development, the truth is when you have a molecule that's never been given to a human being before, confidence might not be the right word, more like hope, but we were hopeful. we also thought that it was absolutely essential that we give this drug a chance. we thought it had a chance we were concerned the pandemic, this virus might caught a pandemic, sadly, the way it has, and it would be a big need unmet. we took that chance. we started to get confident when we saw the human data. we went into phase one we were able to give the drug to people, at every dose we gave to people in phase one, we saw that

it was very well tolerated, similarly to the placebo, and we were getting blood levels that suggested there was enough drug in the people that, if we treated people who were sick with covid, we should be able to replicate what we saw in animals, which is prevent people from getting sicker. happily today, we were able to show that phase three was stopped early, as you mentioned, in outpatients we're able to reduce hospitalizations by half, death and hospitalization by half, and reduce death to zero no one died in the treatment group. >> wendy, obviously, having been close to the two of you and watched this process, i can remember when you were dealing with the u.s. government early on, before you even signed the deal with merck. give us the background and your

partner merck, in terms of manufacturing. how many courses can they come up with as soon as it's approved under emergency usage? >> thanks, david the primary reason we originally went to the u.s. government for help with manufacturing, we were -- we felt an obligation, if the drug were to work, we wanted enough for everyone we never got government funding, so we then turned to merck, who is a tremendous commercial partner, to help us get this to people so they have publicly announced they'll have 10 million treatment courses available by the end of the year. as well as we have entered into voluntary license agreements with different generic manufacturers to allow it to get on other parts of the world that would not be able to afford it. >> wendy, what are your expectations beyond that we were talking about before we came to the two of you, in countries where vaccination

rates continue to say low, and perhaps there's other variants as devastating as delta. can merck produce more than 10 million doses into 2022? >> the great part of the news today related to variants is 80% of the patients available had gamma, delta or mu so we have seen the power, and the voluntary license agreements allow manufacturers to sell it as close to cost as possible as the rest of the world. >> wayne, again, as you explained to me many times, it doesn't work against the spike protein the way the vaccines do. it actually works against all the variants, because it has a different way of knocking down the virus. can you explain why that's the case and why it's important so it may mean that any future

variant could be susceptible to the drug. >> that's right. this drug acts on the part of the virus that it uses to reproduce itself it stops the virus from being ability to do that, or reduces the ability to do that that has nothing to do with variants or the genetic code of the spike protein, which is what we hear about. not only does it work against all the variants that we have tested in vitvitro, and we know from other work, it works against other coronaviruses, and sars 1, mers, and also unrelated viruses such as influenza. you know, it's a very fundamental mechanic tism to how viruses replicate, and it's difficult to generate resistance

it should work against all variants that we see >> let me come back to that, actually i want to come back to peer reviewed and covid, but you indicated there might be indications for this drug far beyond even covid-19 flu? is that a possibility? why? >> absolutely. basically if it's an rna virus, it uses a similar ensides to sars cov 2, and this medicine tricks the virus into use it as a building block of the chain as it try to say make copies of itself it will do so, has done so successfully in vitro, as well as in animal studies for influenza, sars-1, mers, as well as other viruses. >> wendy, all three of us at

this desk are certainly vaccinated, but if one of us were to get a breakthrough infection, would our doctor advise us, if this is available, to actually take the five-day course would it be your expectation that would be the case >> obviously it would come down to your physician, but you've seen with some of the breakthrough cases you see hospitalization and bad outcomes i would imagine your physician would want you to take this, and obviously avoid the hospital. >> we'll see what the fda label is, but ultimately, as wendy pointed out, it's a decision if you're symptomatic, your physician, it's about having that option available, too. >> in addition, we announced in september that plmerck started prophfphylaxis trial if you've been exposed to covid,

does this treatment stop you from getting it. >> i remember the date when you indicated to me i better be very careful, stop taking the subways, basically you want other things, too is this day a specific one in terms of our ability to deal with this virus? >> absolutely. what we are afraid of with the virus is bad outcomes, right there are four other coronaviruses that have been circulating naturally that give people mostly common cold symptoms we handle that and live a normal life the idea is all of these innovationses are designed to help get us back to the normal life if you know your risk of being hospitalized or having a bad illness, or obviously death has been dramatically reduced by all of these counter-measures, then feel comfortable conducting activities the way we did.

that was the hope when we first spoke in march we're super excited and happy this drug has worked the way we hoped it would it's easy as to distribute and manufacture from a logistics standpoint this can be distributed around the globe and we can make large quantities available, and our partners can as well merck's manufacturing is really incredible they have done an incredible job and we're super happy with what they've been able to accomplish. sorry, let me -- let me stop you there. i know jim wanted to get a quick question in. >> it does feel like the polio moment when we licked polio, when we gave it to the sugar cube congratulations to both of you i do -- dr. holman, let's say it comes out positive, monday it's

negative, tuesday it's positive, what should i do how do i change my life the moment i see it's a positive reaction to binax now. >> if we're fortunate to get emergency use authorization, and it's available, likely you would want to call your physician, let your physician know you have tested positive, and your physician, in consultation would decide if it's the right thing for you to reduce the risk of hospitalization or death, based on the data that we have shared today. >> wednesdayy, this is also a big day, obviously not just for merck, but ridgeback therapeutics as well conceivably, you guys will do quite well as well i just wonder, how will you change your approach i know, wayne, i know as an investor for so many years, does it change what you're doing at

ridgeback? it's been a long process, but likely to end in great success >> not at all, it strengthens our resolve. when we founded ridgeback, our primary goal was global health, and we wanted to work on things that sneaded champions we used our knowledge from our investment world and applied it to looking into the antiviral field. that's how we started our work in ebola ridgeback bio was one of the few companies got a treatment approved in a pandemic setting we used those lessons and applied it to covid. we will continue to do that. >> pfizer has a therapy, i think it's a different mechanism, is it seen as a competitor from your perspective and frankly, from what you know about it, it's like will to work

as well? >> great question, david the way we look at it, is we don't have competitors in this covid world. we have allies in the fight against this pandemic. we're very close to a lot of people at pfizer, and very happy that they're having the huge success they've had, both with the vaccine, and happy to see them getting into later-stage studies with their antiviral as well as you pointed out, it's a different mechanism. our compound inhibits the ability of the virus to replicate by stopping and inhibiting its ability to reproduce. theirs is called a protease inhibitor, and that has an effect on an enzyme that's necessary for the virus to assemble itself, essentially so these things in history suggest that combinations in antiviral can be helpful, but we welcome all effective therapies

that can help this pandemic. >> well, wayne and wendy, we certainly appreciate you joining us on obviously a big day for you, for markets and perhaps for global health as well. thank you both. >> thanks, everybody. >> thank you. there's plenty of data headed our way we already have core pce we'll talk about congress with a clean cr now signed. what is next for infrastructure? and a number of calls for names like southwest, mgm, dollar tree and zoom and dis neydisney. don't go away. trading isn't just a hobby. it's your future. so you don't lose sight of the big picture, even when you're focused on what's happening right now.

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coming off the s&p's first monthly loss since january, biggest monthly drop since the beginning of the pandemic, and as we kick off q4, the best gainers for 2021 so far. it's moderna at number one with a gain of almost 250%. the opening bell in about four minutes. don't go away.

♪♪ in boxing or any other business, one day, you're gonna take a hit you didn't see coming. do you stay down? or do you get up? [announcer] and this fight is a long way from over, leonard is coming back. ♪♪ ♪♪

>> announcer: the opening bell is brought to you by -- all right. we have a minute until we get started with trading here. let's squeeze in a mad dash. >> i'm very excited about what's happening in the movie business. what i just heard from the holmans, i think people will be going out more amc, we have "venom" coming out, the bond numbers in europe are extraordinary. it's going to get people going to the movies. if you have an amc, and you're thinking, maybe it's too dangerous, this could change

this it's also, by the way, anti-inflationary, if you can believe it >> wow, a big cheer here [ bell ringing ] >> you love the enthusiasm there's the opening bell it's quantum computing company celebrating its listing. a restaurant chain celebrating its ipo we haven't had too many of those. >> i'm doing work for an index that i would want to put together for the investment club basically a brand name, people no dutch bros. there's a lot of companies that are coming public, because wheels up, they've seen the ads.

i want to be a little circumspect. if you like your warby parker glasses, that does not mean go by it. it may be a start, but it can't be the end point you need to do some work >> we'll do work to help people. believe it or not, i talk to enough young investors i'm saying we have an idea, you have to look to see if the company is doing well. >> jim, your point about all the leaders this morning are cruise lines, airlines, there's livenation up there. as we get a sense of what this could mean svp says, for example, could game billion in near-term orders

for merck and represent the best option to get the pandemic under control. >> this is it. if i were jay powell, which i'm not -- a lot of times i'm confused -- i would say, you know what? forget about the current inflation numbers, we may see a return to work the issue is absenteeism people are scared. maybe if you're less scared and you show up for work, there's 10 million people who somehow disappeared from the workforce the belief is many are afraid of catching this, getting into the hospital or even dying you heard the holman, i think you take the risks and it's like having a flu. >> as supreme court justice

kavanaugh testedpositive today vaccinated since january >> this is another momentous line here, particularly for those not vaccinated you wonder what would they be willing to take if they got it i don't know merck is merck, you know, they know how to do trials. gottlieb tried to argue the commission, the agencies could extrapolate that data for those who have been vaccinated >> i hope the cdc, fda understand and don't botch this.

as anyone who has read -- comes back, and the cdc has been an unmitigated disaster, so dysfunctional that you almost start thinking that it's a keystone cop movie -- that's my extrapolation -- >> understood. >> just so many things were done wrong. i don't want them in the way i also want to be sure that dr. fauci understand when he comes on, that this is a breakthrough, it's a good thing, and he has to be -- maybe he has to be alternates more forward-thinking i don't want to hear -- i don't want to hearing -- don't say much about it, because there's not enough of them yesterday >> first of all, that's not going to be an issue for merck, i don't know if they've had a day where -- we'll see how it ends the day, but that's where

it is right now. >> that was a long time ago. it was. >> this is a moment, by the way for merck, which is under management mrna, in particular moderna is down almost 9% we're hearing $700, a treatment course the u.s. has already committed, by the way to 1.7 million treatment courses, but 10 million available. they can manufacture quickly this multi, multibillion dollar retch opportunity, this could be similar for merck, which, by the way, did not succeed in its early attempts at a vaccine.

merck is a company that david has been talking about for literally since this happened, that makes people comfortable. merck, j&j, these are companies that you say -- and pfizer, wow, merck puts its name on it -- we used to call it saint merck, because america would never do anything that was wrong. president clinton attacked merck, at its headquarters, one of the worst things we have enseen he was doing anything he could to cure anything they never did anything -- >> it's been a pretty impressive drug >> there was a period where they

came up with a drug that was like celebrex, that was an amazing drug, but got pulled anyway, that's why they got in trouble, they had lawsuits, but i do think it is breakthrough. i think psychologically, carl -- >> this turned the market. before this news came out, the futures were looking down. >> and we also getting away from -- when i spoke to brian cornel yesterday from target, and i spoke to marvin ellison from lowe's, there is resistance they put people who refused to have a vaccine, and then you don't put them on the front line this takes away the resistance >> nearer term, though, we're still looking at inflationary

pressures that will build in q4. powell essentially admitted that yesterday again in front of the house. we have a downgrade of dollar trees on that very issue. >> when i talked to dollar tree, what did they do snowe they admitted you can't get a lot of stuff for a dollar anymore people were relieved that they went that way, but i think if i were fed chair powell, i would try to find right now absenteeism and correlate that with freight i mean, when i talked to bed bath, freight was just dreadful. traffic was dreadful, too, and i can't predict a quick turnaround there. when i look at what's going on, i just keep coming back to absenteeism, and what absenteeism has done to inflation. this is the break that jay powell may have wanted, needed.

>> you think so? >> i really do, but he has to be empirical about what it means to cut back on why theism >> on that note, i continue to hear a litany of frustration from those who run large organizations in terms of their ability to get people back into the office i had a lunch and dinner last night, it's a neverending theme. i mean, some of these ceos are at their wit's end how do i get people back in? the younger people in particular they don't get it. they don't understand. it's a new world benioff is, i don't care, stay home as long as you said >> you have to have a test before you go to his house before dinner, and he asks you -- gives you a quiz, how many jobs did you put in how many circles do you make >> maybe he'll start to relax.

>> though pwc, the big consulting and accounting firm, telling 40,000 u.s. employees they can work virtually, live anywhere, in perpetuity. >> and as a consultant, they tend to travel all the time anyhow. >> yes. >> but that's amazing. >> e.y. does talk about you need the one meeting, not the multiple meetings. >> using zoom, let's get to it the deal's over. they voted it down yesterday we were waiting, the vote was later in the day, there was an expectation that the vote of five9 shareholders would be adjourned, because as i said many times, they would not vote in favor of a deal with the company that -- actually agrees to the deal to be acquired by

zoom it was an all stock transaction, announced a number of months back they held the vote, and it's over was there also concern, perhaps from a national security front, did it have anything to do with it i have no insight into that. but there was no way that five9 shareholders were going to approved this unless zoom improved the consideration they couldn't get there, couldn't bridge the gap, held the vote, it's over. >> zoom has been to be more than zoom when you talk about zoom, people says it's got to become a platform it could just be a consumer to consumer thing i think it's important to recognize that five9 was for them to be more of a thing, and

become more of a service i also thought it would have been a great combination >> both are up zoom may be up on short covering, perhaps. giving the news today and the stay-at-home plays, that this would be down were it not for the first company related to the dissolution of the transaction >> well, it's amazing that this thing kept going on. you knew -- you said this is going to not happen. david, let me ask you, why do they have to go through the motion when they know it's going to lose? >> what is that? >> zoom wasn't going to win. >> that's why they held the vote >> i'm saying, is it a sham vote why didn't they just pull the offer? >> because they don't have to pay anything there's no break fee >> kinds of like congress. a sham vote, which we haven't mentioned yet, but we will talk about it in a minute.

jay timmons on supply chain concerns, the infrastructure bill, and a lot more the bond report, see how treasuries are doing we've been watching yields all week with the hearings of the treasury secretary and the fed chief s s&p is up, by still more than 100 points down from monday's opening high. we're back nam

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of your entire operation. so that everyone, in your boardroom and beyond, speaks the same language. honeywell forge. industrial grade software. welcome back to "squawk on the street." rick santelli here live on the cme hq and pmi, m.a.r.k.i.t., it's 60.5, an improvement of two tenths if we look sequentially to the

final read of august, that was 61.1, so sequentially a by lower, but still better off that this the back month. yields have dipped a bit they're still up several basis points, and more data to come, university of michigan construction spending, it sm a the top of the hour. "squawk on the street" will return after these messages. before we talk about tax-smart investing, what's new? -well, audrey's expecting... -twins! grandparents! we want to put money aside for them, so...change in plans. alright, let's see what we can adjust.

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cathie woo shorter term, exxon, with filing says higher oil prices are going to add as much as 1.5 billion to earnings and saying $100 billion oil could start the next macro crisis >> it's certainly possible i speak to enough oil companies that are concerned about environment and want to return money to shareholders. they're the company that has led the whole charge of saying we are not going to blow up the balance sheet. we're going to return capitol. that has never been what oil companies have done.

when you first started >> and she's talking about whale oil. when they first started it and it started it all off. >> i keep telling my wife let's drill in the basement. >> german power plant just ran out of coal. they ran out of coal i mean europe is having some weird energy shortage problems >> but we're not and that's important. but the fact is oil's a world price and natural gas is not so much it's possible we keep going higher >> it would have an effect on airlines, their second biggest cost other than labor. jp morgan upgrades southwest from tourists. >> no longer a fan of southwest. their execution has been

suboptimal, verses delta, which i like more. >> what do you point to that's been suboptimal? >> they missed the quarter repeatedly they are, i think, not necessarily where you want to be with international travel. international travel would be fantastic. i think they're going back overseas and go places the pill i mean, people say if i get sick, i'll take the pill it's very big. >> and look at mccow month on month. up 32.4. you can imagine what would happen if you got oil around the world. and cuts gm, saying draft kings puts their grip on the market at risk >> there is just a ferocious battle for clients in gambling i would point out what we'll be

writing about for the club, that it's been down and out and un of the reasons is china is so worried about the olympics, that they're afraid people will contract you're going to contract and get rid of it? ta that's amazing >> wynn was the worse performer >> maddox had the best program i thought china -- this is an example of what i talk about the club i thought china was going to be more relaxed about this. china went the other way i thought vegas had unbelievable numbers. i thought people would care. they don't it's very inexpensive stock at this point replacement value would cost 13 billion and it's at 9 billion. >> we spent the hour talking about this potential game

changer on the reopener but once again, their q4 view, higher inflagsz, more hawkish central banks, cell rallies into a fed taper that might begin in november, which apparently cash carry's okay with. >> i've been saying since september 17th that we have to wait, using larry williams word the bottom has come, october 22nd you look at 20 years between october 17th and october 22nd is where the market has bottomed. so far it's exactly like the last 20 years, if you average it out. so, don't get too bullish but not long october 22nd is not that far away >> 22 days, i think, actually. if i'm correct it's october >> you must have done well in that class >> you know it

i wowed it with my math skills >> that was arithmetic, not math one thing is iff andreas has retired and the stock's up nine. it used to be that company -- >> that did not go good. >> when the stock is up nine after they retire, it raises eyebrows >> i thought they had an activist in there as well. didn't go so well for the activist >> who would be other than -- you know, other than homeland, who would you like to hear from most >> jeff bezos. you got him tonight? >> that's next monday, right >> chief of sustainability for amazon is ordering 100,000 ribbons. >> what would guess you have taken that was once ours and now

is yours >> the head of five 9. and i lined up about the club. >> you said that during the commercial break >> yes i was going back and forth last night. while i just felt it might bea good guess to have and i wanted to nail it down but then you know what? i don't take it lying down i come right back with something i think is good. >> that's good u unfortunately wasn't with us on this show. i did. it's true. i did in the flesh >> it's the best i've seen in a long time. >> it's fascinating to report on this story, from those dark days in 2020 until today and thankfully, watch something progresses >> my guess, guys, game changer. i said no way.

he said no, if you can get this preillness, >> talked about oral antivirals for a long time. today is a momentous day for that >> i think people may not understand when polio was popular. i had a sugar cube at the end. you're kidding does it really work? people debated it. it wiped it out. >> and against every variant >> ever core says the data really is that good. >> congratulations to them and thank you. >> jim, congratulations again on the investment plus. good news. >> locked into that seat forever. >> or at least for the foreseeable 200 years. >> weir.

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"someday" can be any day you want. one of the many reasons you're with amex platinum. welcome back to "squawk on the street." live here at cmehq breaking news, our september final read, it improved to 72.8. 72.8 this replaces the midmonth read at 71. and if we look at all the other subembassies, current

conditions, improve to 80.1 from 77.1 and 68.1 is what lies ahead on expectations. that was at 67.1 improvement from all of them moving to the final read at 4.6%, one year inflation, that is moderated. our last look was a 13-year high now, letsds look at five to 10-year inflation. that moves up to 3%. and why is that important? because 3% equals a read we had four months ago. that is a 10-year high so, we're tied for 10-year high. so, we're still hot, hot, hot on inflation. a disappointment expecting a positive number up three-tenths unchanged. and we had the market read ism manufacturing jumped a handle we're looking for a 59 handle. 61.1 61.1 er for that's the first read over 60 since june

and if we go through subembassies, we want to pay close attention to prices paid that did move higher from 59.5 to 61.1. i'm sorry. prices paid 81.2 verses 79.4 and that number, just to keep in mind june was all the way up at 90 so, we have moderated a bit. now, let's look at new orders. 66.7 better than expected tied with our last final look and considering one week from today, we'll get the employment data it's holding steady at the expansion mode to sums are, nice improvement in the numbers but also a bit of improvement or higher, higher, higher on some of the inflation numbers. morgan, back to you. >> thank you very much good friday morning,

everyone welcome to another hour of "squawk on the street. we're trying to hold 4300 here that data just now did help a little bit dow's up 221 on a very busy friday, first day of the quarter as we look add merck's oral viral data >> and what has been a very busy and volatile week. here are three big movers we're watching right now we're going to start with zoom video. shares rising after 59 shareholders rejected the deal and national security fuelled regulatory scrutiny as well. shares of zoom are up 1% right now. and disney and scarlet johannson settling a lawsuit after the actress sued disney plus the terms of the settlement not disclosed. put for buyou can see shares of

the blue chip media name are up 2% neois also getting a boost after reporting 126% increase in vehicle deliveries year over year the stock is still down about 20% year to date >> speaking of things that are up shares of merck are up slightly. the stock had been up as much as 12%. this on news we got at 6:00 a.m. this morning an antiviral drug we've talked bo about for many months having success. in fact, success was such in terms of showing efficacy, that the trial was stopped, with the fda's aprauvl stopped and now submit for usage of the drug you may see it in the market as soon as the end of the year. and there you see it a global study reduced hospitalizations or death by

50%. and they did stop post trials early. you could see an eua made by merck to the fda five days, two pills a day and again, it's for those that have had mild to moderate -- you need to take it early. previous trial indicated it's not helpful in a hospital situation. where this drug has had efficacy is in the early days of covid. you show symptoms, you take it, it decreases markedly your ability to be infectious as well stops the spread and you're looking at how many courses of treatment. they have the manufacturing, they have the supply chain they've been getting ready for this they're on course to have 12 million treatments ready and u.s. government said we'll pay a billion and a half for

1.7 billion doses. and there's an option to acquire more courses of treatment, should it acquire to do so and again, benefitting merck and having a negative impact on some of theother players in terms o the vaccine world or regeneron, which has an antibody effective in treating covid as well. moderna down almost 13%. earlier this morning, i had an opportunity to speak to doctors, founders and leaders of a comp an that actually licensed or took the drug from emer university, where it was being developed and moved it along and did a licensing deal last summer with merck, which has moved it along in the trials to get to where we are today

here's what they had to siay >> you know your risk of being hospitalized or having a bad illness or, obviously death, has been dramatically reduced by all these countermeasures. then you feel more comfortable conducting activities the way we always did we're super excited and happy this drug has worked the way we hoped it would and that it's so easy to distribute and manufacture from a logistics standpoint, this can be distributed around the globe and we can make large quantities available. >> and morgan, that could mean, obviously, good things for merck. not just 10 million treatment courses initially but perhaps hundreds of millions over time >> good things for merck, good things for society at large. look no further than the futures market that had been lower before we got this news this morning. and looking at the s&p the sector underperforming and

down one% is health care and that's because names like pfizer, moderna, that are weighing on that sector because of this news and the implications that peepople are going to be able to have this tamiflu-like treatment to access and use. >> and works on all variants which is of significance, given we don't know what variants are yet to come. the expectation is many will stock pile this in expectation of future pandemics as well. and it could also havea very positive effect against other viruses, including flu so, there's potentially broad usage for it out there >> you don't see merck up 9% that often going back to our data set,

which began in 1978. and the street's assessment of the data has been pretty good across the board barkley says it's remarkable how the street hadn't given the stock much credit for this drug, even though they had been coming out and saying we're getting close. >> it is interesting there were a handful of notes that, at least in the past, have noted it might be a positive contribution, should it work it's been under the radar too, some extent. >> merck and their new drug to fight covid is moving the market this morning joining us is pivotal advisor, ceo and cnbc contributor, tiffany mcgehee and investment strategist, brian nick and we're going to stick with this treatment news and the fact it does seem to have broader implications on the market this morning.

i want your thoughts and how much of a lift is tied to that and how sustainable it is. >> yes how are you? so, this is potentially huge this is great news to wake up to this was like the wow card, right? the delta variant and what that was going to mean. are we going to have to have another repeat of last year? do we know what to do? we have information in the trial run from last year but now with this news, i think it's reallyreducing stress for the overall economy. so, not necessarily for health care workers but the service industry, restaurant, travel, airlines, entertainment. all these industries that have been hit hard by covid i think this is a game changer not so much for regeneron and moderna but broader implications for the overall economy.

>> how do you see t given we've had rates move higher over the past week and a half in a marked way. we've seen a movement into more sickliccal names and health care has been along side tech, one of the losers in the process. >> yeah. good morning thanks for having me i think this is pretty consistent with what you've seen all along. cyclicals tend to get a boost. it's been consistent with the decline in delta cases world wide in the united states. i think that's part of what's driving industrials more into the cyclical and value trade this doesn't feel as immediate in terms of the impact on the economy. i think you're seeing a slowdown, not due to delta and covid-19 necessarily but the remove of fiscal stimulus, monetary stimulus. might be appropriate, given that we're moving out of the emergency mode of the pandemic

i think all that's going to be the major narratives into the fourth quarter and 2022. i think it will have its day when moments of bursts of better than expected economic data. but we slide back down to some normal looking environment by next year, i think growth is going to get more of a look. >> what is your outlook. certainly the markets are climbing a wall as we get ready to go into that season could be nasty, given the supply chain issues we've heard companies warn more so about cuts to forecasts >> absolutely. i mean, supply chain issues are the key issue, right, that everybody's talking about. i think going forward into q 3 and into q4, profit growth corporations are going to definitely slow, right

so, costs are increasing, labor, freight, materials, all those things i know of a company in asia, who can manufacturers stuffed animals. and it costs them $5,000 to ship a container to the u.s now it costs them $24,000 to ship the same container. i do see margins shrinking i think overall, we're still going to see positive results from earnings, from stock. but it's definitely geing it get tight and we're not going to see what we saw last quarter >> the fed's getting ready to taper. we know that we're going to see pullback on this monetary stimulus but the fed has been behind the ball so far this year in terms of inflation forecast.

>> the fed's been extraordinarily patient, i would say maybe even accepting or encouraging to see a central banker stand up and say not a huge difference between 2.4 and 2% in terms of what the average household is going to feel the economy is deliberately being run hot by central bankers and i would say though we saw own the spending data for august, consumers are rotating away from durable goods and rotating to services even in a month where covid-19 was spreading like wildfire, we saw them increase spending on fun and decrease spending on stuff. the more the rotation hans and the economy gets back to equilibrium. it's not just the supply story demand was shockingly high in the first half of the year that's going to be coming down and that's going to ease pressure on inflation and global

supply chains. >> appreciate you both kicking off the hour with us with the s&p up fractionally 43-11 is the -- and the ceo of national association of manufacturers timens >> crypto is creeping higher bitcoin creeping to new highs. or at least to start the month of trading, it's moving up and a interview with the ceo of rocket lab. wondering what actually goes into your multivitamin? at new chapter, its' innovation, organic ingredients, and fermentation. fermentation? yes. formulated to help you body really

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the drama in washington d.c. continues with them failing to reach a deal on bipartisan infrastructure deal. >> well, david, the house is officially reconvened and democrats are going to meet in a few minutes to determine if there is any way forward on the infrastructure bill. house speaker nancy pelosi arrived at the capitol a year and a half ago and said we're on a path towards holding the vote today and she did not rule out the possibility of waiting until next year for a vote on the bigger social spending package lawmakers were here until midnight, trying to work out this deal. one of the moderate democrats involved was optimistic.

he tweeted t ain't over yet. this is just one long legislative day and he recommended grabbing gatorade and red bull but progressives were more pointed. congresswoman warned against any predictions until all votes are counted. and they're not backing down from their demand that the bigger social structure package gets passed before the infrastructure bill. they were trying to win over the two key senators, kristen cinema and joe manchin. >> just explain where they are and we understand very much and a need for a lot of people who need help. we understand that >> now, we also learned yesterday that manchin has his own long list of demands, including tax rates and the federal reserve but says that should not hold the house up from voting on the infrastructure bill.

we should see if there's any break through after democrats finish their meeting >> meantime, factories around the globe are suffering as supply chain disrpgdss take their toll for more on supply chain manufacturers are facing jay, welcome back. happy friday good to see you. >> morning, carl, and happy manufacturing day. >> yes, that's right it is manufacturing day. i do want to ask you about the events of last night and where things stand politico this morning wrietsz "first it's pretty clear to progressives they can forget about $3.5 trillion. they think the compromise comes in between 1.5 and 2.1 do you think this week was a needle mover >> i would have stayed focussed on the task at hand and that is that we have a bipartisan infrastructure investment bill that passed the senate it's before the house or should be that was a promise to bring it

up, actually on monday but this week and i can think of nothing better for the men and women in manufacturing on manufacturing day than having the house of representatives pass this bipartisan infrastructure investment bill because it means jobs for manufactures, jobs for americans better roads and bridges and lack of crumbleing infrastructure for the first time in generations in this country. >> all right so, that's your hope but what do you think the reality is right now >> i think the reality is this thing can get passed because it's the right thing to do for working people and midinalcome americans. if that's what congress wants to focus on, this bill is the first step to doing that obviously there, have been back and forth, when it comes to the reconciliation package you've heard that in your lead up to the segment. but for manufacturers, we're looking at that with a little trepidation because, as senator

cinema has so rightly pointed out, the tax increases in that bill could really harm investment and job creation and the ability to raise wages and benefits here in this country and i don't think that's really what we should be focussed on. we should be focussed on strengthen the economy, rather than setting us back with arcayic tax policies >> as a note yesterday from j.p. morgan, shipping and logistics supply constraints show no signs of abating basically said last night the white house's view is infrasfrukture will help that. maybe even this merck antiviral could help that. do you think q4 could be the worse of it? >> you have a lot wrapped up in that question. first and foremost, gel getting people vaccinated and finally under control is absolutely essential to getting our economy back on it's feet and getting the supply chain bottle necks uncorked, if you will.

finally, infrastructure investment is critical to that because we're having trouble moving goods back ups in ports, all kinds of logistical issues. but it's not just about those two things, although they're two very important components. it's also because we frankly do not have enough people who are working in manufacturing today we had 900,000 open jobs in the sector we have to fill 4 million jobs by the end of the decade that why we have launched our creator's wanted campaign. we're going to be in hoy thigh try and inspire the next generation of manufacturing workers. we need more people in the sector that's why manufacturing day today is so important. we're opening up facilities to young people so they can see what a incredibly rewarding career in manufacturing is all about. all those things will help us

uncork that supply chain bottle neck >> so, given that fact -- it's morgan >> hi, morgan. >> on a day where ism manufacturing index had another hot prices read tucked within it, i notice said not necessarily as fiery as it was in the summer but still very elevated how long is it going to take for all the pieces of the puz tool come together and inflationary head winds begin tew bait? >> i like your analogy of the puzzle because when you're -- if i'm sitting with my kids and working on a puzzle, i'm deliberately putting piece by piece together so you can actually get to the end. that means we've got to do all these things simultaneously. we've got to get the transportation infrastructure bill passed. that's a given we have to have americans getting shots in their arms and we have to have more and more employers encouraging employees to do so i think you know, carl and

morgan, we have a vaccine mandate and 100% compliance. we also have to get that next generation inspired and that will take a while because a lot of the young people are still in school it's going to be a few years before they get into that pipeline but the work has to begin now to make sure they understand what great career opportunities there are for them and their families >> i just wanted to come back to your opposition to obviously raising corporate taxes. it's seen as one way to pay for the $3.5 trillion bill are you actively opposing it lobbying against it and what would you and your organization be supportive of, if anything, not infrastructure >> so, look, we're opposed to the reconciliation bill as it's drafted because it's going to stifle investment in the united states it's going to stifle job creation i don't think anybody wants to do that.

if we rewind and have tools manufacturers have been asking for, for decades not just for c corporations but also for past entities or small or medium-sized businesses that supercharged the economy and we have record investment following the new tax structure. record job creation and record wage growth for three years in a row. so, if we undue that, we then, by very logical definition, we undue all of that progress and you're going to see us start to fall back. when we were advocating, back in 2017, i guess it was, we were advocating for a 15% corporate tax rate because that would make us just globally competitive, without question and in fact, as you might know, secretary yellen is calling for a global minimum tax of 15%. i don't know why we would want

to impose a 25 or 28% tax on ourselves, which is 10 to 13% over the proposed global minimum. we need to be competitive. we're in a global economy. investors are going to make decisions about where to invest. it needs to be in the country. the reconciliation bill would harm that pretty substantially >> appreciate that again congradilations on the holiday >> only a holiday because it's another work day for manufacturing and we're going to show all of america how great manufacturing is >> we definitely hear that message. frrlg thanks, jay. >> thank you >> as we head to a break, we've got the s&p in negative territory. slipping back below 4300 right now. here are the top gainers in what has been a rough week for that average. merck is topping the list between the covid therapy news we got this morning and an acquisition earlier in the week

and energy names, which have been an out performer topping the list of, in many cases double digit percentages week to date we're right back stay with us rgest online commercial real estate exchange. you see it. you want it. you ten-x it. it's that fast. if i could, i'd ten-x everything. like... uh... these salads. or these sandwiches... ten-x does the same thing, but with buildings. sweet. oh no, he wasn't... oh, actually... that looks pretty good. see it. want it. ten-x it. yum! wealth is your first big investment. worth is a partner to help share the load. wealth is saving a little extra. worth is knowing it's never too late to start - or too early. ♪ ♪ wealth helps you retire. worth is knowing why.

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welcome back to "squawk on the street." it's now time for our etf spotlight. we're looking at energy xle. check out shares of exxon mobile saying in an filing that higher oil and gas prices could raise q 3 earnings by as much as $1.5 billion the stock is up 45% year to date folks the world's first fully autonomous vehicle is almost at the finish line today we're going to fine tune the dynamic braking system whoo, what a ride! i invested in invesco qqq a fund that invests in the innovators of the nasdaq 100

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kavanaugh has tested positive for covid-19 the high court's new term starts monday a prosecutor told a court in winnipeg that peter nygard has agreed to expedition to the u.s., where he faces sex trafficking charges. he appeared on a video link from jail the justice minister has to approve a transfer to american authorities. just days after announcing his retirement from boxing, manny pacquiao filed papers to officially start his campaign to be president of the philippines. he's feud wed with the man he hopes to succeed, who is running for vice president because he's barred from running for another term and the image first started appearing on london's streets in 2002 christy's is predicting this will sell for between 3 and $5 million. i'll send it back to you we're getting ought so sale

numbers from gm. >> they're a smidge weaker than expected by the way, none of the auto makers are going to report good numbers for the third quarter. gm sales down 32.8% compared to the third quarter of last year check this out average transaction price, $47,467. up $8100 compared to third quarter of last year gm says it's seeing inventory improve in the third quarter or going into the fourth quarter, i should say full-size plants are still operating but to what degree they expect to come in at 13.5 million vehicles, gm. the third quarter of last year, the sales pace was 15.5 million vehicles >> wow phil, thanks

i think we can all read between the lines on that one. let's get a check on the markets with the nasdaq trying to avoid its longest losing streak since august of 2019. mike, you've been pretty resolute in making the point that, even though the drawdown, year to date, has been mild by historical standards, there's been a pretty good reset in the market >> the average stock really has done nothing for five or six months starting in early june, you give oplot of the early year gains. we did price in a magnitude of slowdown i think the reset has happened at the index level definitely not a wash out yet. we haven't got a great flush and in terms of sentiment and positioning, it's come off the boil for sure. kind of remains so but now they're more cautious. they think some of the tactical players have come back

all of that is constructive in terms of setting things up for a potential recovery and move higher later this quarter. but it's a tough news flow situation. you have a push full of inflation. it's a nagging issue it's why the fed has now been seeming like they're in a little more of a hurry to start tapering investors want permission to look through the third-quarter slowdown towards a reopening type trade and with this merck news, that arguably could have given you the excuse that's where we're caught. >> from a technical standpoint, the fact we saw a burst higher to start the trading session today for the s&p and dow and now the s&p is firmly negative and dow is at the flat line. how does that speak to market sentiment? >> there's definitely been a severe loss of momentum.

you've had breakdowns on the charts overnight, the s&p 500 futures went down, i guess, 4270ish. maybe the actual index has to go and take a look at those levels as well. usually when the market has been in one of these down trends, you don't want to see a treped morning bounce i don't think it's, by any means, undoing the longer-term uptrend but much dicier than it has been for a while you lost that sense that they had a sense of urgency to buy the first 2 or 3% and they remain sidelined right hire because the first group of traders are the ones confident and that the rotation is going to keep the market higher. i still come back to the point, you rarely see a market peek on september 2nd, unless there's been a policy mistake or

economic slowdown and shock. i think we remain in the camp but we're not there yet. >> thank you have a good weekend. well, crypto falling along side the broader markets in september. higher to start the new month but for the month of september, finishing more than 7%, while etherium saw losses. and october bringing good news for crypto you are seeing the rally this morning. we ask top investors how they view the space >> while people focus, i think often myopically on prices and bitcoin prices, we try to look at other signals we see as leading indicators and one of those is developer activity another indicator we always look to is the talent coming into the space. >> how could you not love crypto look at the movement aren't we all tired of paying all those transaction fees and

exchange rates and seeing currencies in different countries being devalued and watching our friends in argentina carry things around to try to purchase based on inflation rates. >> it's hard, sitting here too, give you a price prediction. but i can confidently say that bitcoin, i think, has effectively replaced gold. and it will continue to do so. and so, that market cap is just going to continue to grow. >> still to come don't miss the ceo of rocket labs, who's going to join us talking a new contract to the u.s. space force that stock is up more than 50% 'l a month wel be right back.

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mom, are you painting again? you could sell these. lemme guess, change in plans? at fidelity, a change in plans is always part of the plan. and a rough week for the broader market rocket lab up about 11% for the week the space company awarded a contract with the u.s. space force for development of the medium-lift neutron market under development. peter, great to have you back on show >> glad to be back >> so,ia just got awarded this 23 -- $24.3 million contract from the u.s. space force that puts you in this elite class of rocket makers, along side the likes of spacex. under this program, what does this money enable, in term oz of the development of this new

neutron rocket >> it's focussed on the alpha stage of the launch vehicle, the second stage, if you will. but i guess the more important part of the contract is endorsement from u.s. government customer this vehicle is seen as being very important for the future of national security and space launch >> so, given the fact that you do have this contract with the government, does it enable you to development the rocket more quickly or how are you thinking about that as you go in the coming years >> it's always great to have more funding we're on accelerated development anyway what it really does is enable us to work closely with our government customer and get to know the vehicle early on. i want to bring it to market and start launching this there's nothing learned about the vehicle. for us, it's really strategic as

well to bring that large customer into the development program early and ultimately, compete for the very lucrative space contracts, which are very large ones >> in the mean time, you have an eelectron market that's already done 18 successful missions to orbit. i mean, basically, the friction of the atmosphere and a parachute and helicopter to pluck the electron booster from the sky. in terms of reusability of electron, how quickly can you ramp the turn around and what does that mean for launch cadence for that vehicle in the future >> i mean, that program is going extremely well and we have a couple of recovery flights coming up shortly. so, we've demonstrated all the elements, successfully splashed down two groups. brought through the atmosphere, four

and done the catchers with the helicopters. i know it sounds a little james bond but it's pretty straight forward. that program is really all going well what that really means is we're able to catch an electron, bringing back the launch site, do a small amount of refurbishment and that does a lot to turn vehicles quickly and makes electron more competitive in the marketplace >> you're basically building this vertically integrated space company. you've also been enabling the big bet on small satellite manufacturing as well. you're seeing that take root in the space sector of your portfolio. >> it's roughly about double the size so, launching space systems group plays in about a $20 billion tim.

but ultimately, we're building a launch vehicle obviously we have electron already flowing consistently neutron will come along. and building infrastructure. so, we've run a fnumber of programs recently. and ultimately, we're trying to go you have your own rockets and into the space company and ultimately, you can start through your own consternation >> go ahead. >> for us right now, it's basically got getting a neutron online and building up that systems group, which has just been an incredible growth path this year. >> and just quickly. given the fact you have so many different projects underway r you able to get all the components and materials you need, given the fact it's fuelled by liquid oxygen

>> we're very integrated so, we carry a large amount of safety stock so, no troubles for us on this side >> thank you peter beck, thank you for joining us today ceo and founder of rocket lab. coming up next on tech check, do not miss an exclusive with amazon's head of devices. we'll talk about the new robot, robot,astro, which you've probably seen a lot of this week and jim cramer delivered to your inbox with the cnbc investing club eas he's going to write for our website, all to give you his unique insight into the markets and you'll see what he's trading in his charitable trust. total transparency you can sign up to find out more c cnbc.com/investing club. dow is down 15

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restaurants continue to deal with staffing shortages a month after unemployment benefits came

to an end. a look at overall restaurant stocks kate >> hey, david. good morning that shortage has hit all the major restaurant chains, many of which have gotten creative to attract and retain new workers over the last few months if you take a look at restaurant stock performance garden dine brands and cheesecake factory, those concepts rely more heavily on table service but overall if you look at restaurant stock performance, it looks much like last year with pizza and quick service companies leading the pack chipotle, wingstop and domino's the top performers for the year. enhanced benefits is one reason that workers were staying away from the industry. but new data shows a more complicated picture here after the benefitstapered off, the national restaurant association says that still four in five restaurants don't have enough staff to meet existing

customer demand for limited service operators and full-service operators 40% said their restaurant is more than 20% below necessary staffing levels. as a result of the ongoing issue, operators are taking several measures 68% reducing hours of operations and nearly half cutting back on menu items and closing restaurants on days they would normally be open others undergoing a combination of all these steps really an ongoing challenge. back over to you >> amazing figures, kate, thank you. kate rogers. let's get over to dom chu. >> good friday morning, carl stocks have given up the early gains with and the nasdaq and s&p are firmly lower at this stage, as you can see here the s&p is now down over 3% for the week on pace for its worst week in about a year healthcare and technology the biggest laggers. some of the biggest laggers. this morning after claiming the top spot last month. among the components making the

biggest moves this morning marathon, devon energy, pioneer natural resources all up more than 3%. keep an eye on the energy sector with a big opec meeting next week "squawk on the street" will be right back keep it right here

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welcome back to "squawk on the street." let's get out to contessa brewer with a look at the pandemic's impact to the latino community. contessa >> morgan, good morning. the pandemic hit the latino community in the united states particularly hard. threatening household wealth built through home equity. according to a report just released, latinos were more likely to be laid off and less likely to work from home and more likely to get infected than their white counterparts the consumer financial protection bureau says black and hispanic borrowers made up 18% of the total last year, but they're 2.3% more likely to be in forbearance i talked to bill daley for wells fargo about it >> we have been very aggressive in reaching out to our

customers. two types of customers those that you service that are in portfolios like for fannie and freddie and other government-backed programs and then there's our own portfolio with our own portfolio forbearance to the end of the year and we announced that last june so, we're constantly reaching out to our customers saying, work with us the last thing we want to do is foreclose on someone it's costly. you've broken their dreams and opportunities because we all know that the basis of most wealth creation, especially for people at the lower level economically is a home because that grows in value and then that may be sold or transferred to your kids so that's the most important investment most people will ever make >> he acknowledges the significant disruption for latino americans in their homes and small businesses, of course. but he says wells fargo is focused on hispanic americans and helping them overcome these

hurdles. david. >> tessa, thank you. tessa brewer as we keep an eye on the markets here, of course, as we wrap up a week here on "squawk on the street" the s&p let's call it flat not been a great week, though, overall. if you own merck shares quite a good week. that stock backing off its highs but still up 8%. that will do it for "squawk on the street." "techcheck" starts now. good friday morning. welcome to "techcheck. today trying to hang on to this rally to kick off october. nasdaq is coming off its worst month since the start of the pandemic will q4 bring more pain for tech plus, what did we actually learn from facebook? the stock led most of big tech