taken out of context we're ready to answer any questions any regulators have. >> do you plan to sue her? >> i can't answer that my safety, the band ground of people, safety it our priority. >> monika, thank you for joining us make sure to join us tomorrow "squawk on the street" begins right now. good monday morning, welcome to "squawk on the street." i'm here with jim cramer and david faber here on the stock exchange best day for the s&p since july, but futures are weak a big week ahead we'll look at isms our road map begins with facebook, though, as that whistle-blower publicly accuses the social media network of prioritizing profits over public

safety. >> plus tesla shares are jumping ahead of the open, the automaker delivers a record number of vehicles for the third quarter, a 76% jump year over year. and jamie diming offers up tough talk for the future of crypto we begin with facebook, the former product manager francis fagan, has released her identity she accuses the giant of allowing the spread of misinformation here's what she told "60 minutes" last night. >> what i saw at facebook over and over again, there were conflicts of interest between what was good for the public and what was good for facebook facebook over and over again chose to optimize for its own interests, making more money facebook has realized that if they change the algorithm to be safer, people will spend less time on the site, click on less

ads, they'll make less money. >> i think urges first of all, we have to understand it's real, the blow back is real. forget the actual whistle-blower the documents are pretty devastating. you either have to be a single source of truth these days, or you go for power they went to power we haven't talked about about apple opt in/opt out for the club, i have owned this thing for about 200 -- maybe, geez, almost 300 points. >> okay. >> i feel very uncertain i feel this time it's probably true. >> you said this time it could be different over time we have sat at this desk many mornings and discussed the latest criticism of facebook, latest concern, latest focus of its critics, yet the stock has obviously done nothing

but more or less go up -- hitting a trillion dollar market cap, in part because their business continues to grow your point now is that will stop, perhaps the advertisers are thinking differently >> that, and apple >> which is the ios, you have to opt in that's a issue for any number of the apps we deal with every day that collect your information and try to help the center of their business. >> apple has chosen to a single source of truth, as marc benioff has said they don't want us to get stuff that we don't want will the documents be used against facebook i think if you are a major consumer products goods company, you better -- there will be someone in the room, at the board, who will say, you know

what this is different. i use instagram for our restaurants, it's terrific i've been a somewhat defender the whole way, saying, you know what i didn't think that i businesses would be hurt. now, the documents -- if you made major changes, would it matter everything always matters if you make major changes, but you have to choose truth. i look at those documents and i don't think these chose truth. i think they chose obfuscation clearly they chose daily average users. i go through this with twitter i say, listen, would you take down the horrendous things that are said, that i can't have my children possibly look at. they say, yeah, but they use a lot of first amendment protection i'm -- all of social media could

be -- could be really upended by what apple is doing. that is more important in some ways than what the documents showed, but let's just admit, there were more people who read that series and watched "60 minutes" than there's been any time that facebook has been on the firing line. i mean, heads have to roll i have to see serious heads rolling. look, i don't think that mark zuckerberg has to roll his head. >> though there is the idea that maybe his super voting shares are at risk, right somebody says, let's rearrange the ownership structure where he does have more accountability, is that possible >> when you have the voting share, you have the voting share, so you need a vote, so basically he has complete control in perpetuity, which is important to point out that wasn't always the case. >> you know this time is different.

>> yeah, tiesers, apple. he needs to do something in order to restore faith do you think faith was lost, as i do. >> that he would voluntarily give up voting share >> no, that he has to figure out a wholesale change how about this we screwed up, this is bad, our culture has to change. we have to start giving the resources that are necessary to do this. now, i don't think it's a totally corrupt company, but that's a pretty low bar. [ laughter ] >> just by saying that, i think you made the point. >> what about the news feed itself is a fading concern as they move into a.i., the metaverse. >> i do like the metaverse, and i think it's a great source of revenue, but right now i'm

talking about consumer product companies that have found it really hard to reach eople, wh say, you know what i fear we are involved with facebook right now we have seen over time seems, people say, you know what? maybe we don't want to be affiliated with that, or maybe we pull back i'm looking at it from the point of view of my investor club. this situation is no longer not at risk. i have said all along, don't worry about t. don't worry about it, because we don't think the consumers will turn away from it now, i think that that's in question >> because they have a viable alternative in >> snap, i think they could, tiktok, youtube? >> even with their own content mott raise concerns? >> yes, but sometimes i think

you have -- someone says, okay, guys, i know we need facebook, but i read through the revelations, and the revelations are just too toxic i don't know if i want to be boy coited by people who saying, do you understand that facebook is dangerous to youth david, the dangerous to youth was seminal s. >> there was a lot that was seminal in the journal pieces. >> daily. >> of course, if you haven't read the series, you should. obviously an interesting story about the lady who appeared on "60 minutes" as well parent had access to a lot of these so-called documents free l. i freely available, i guess, to employees, more than 60,000 people -- this is off the journal's reporting. >> right

>> didn't say or respond for -- >> did you not find at almost every turn the concerns were minimized? >> yes i did. based on the recording i have read. >> i would love to hear the other side, right? maybe they say, look at how much money we spent it's credible how much we're trying to do but they have to say, we hut out a lot of our daily average users that we think are doing things that are bad it's going to hurt our profits, but we're going to do it, and then i like it again. >> they have had said versions of that in the past. how many times have i said zuckerberg is doing his best, give him a break let's go to the stock price.

last quarter the top numbers were stunning. stunning numbers you believe now it actually won't matter you've indicated a willingness to part with your ownership in the investment club? >> yes >> i just hope they do the right thing. >> my daughter was a suicide counselor, working with teens. i've even told marc, she always blamed the fact that it was the postings, now facebook itself.

obviously i don't think facebook took it as seriously as i would have hoped they did because teen suicide, and it's everybody's job i had been saying -- my data was saying, it's not facebook, parents who had kids -- i almost feel like there were people people who said, you know what let's do our best, but there's not much we can do. >> every day our teams have so bal balance. we continue to make significant improvements to suggest we encourage bad -- >> they don't encourage bad content. what i'm saying is you really have to make sure that the

people who like about the vaccines are shut down they have a committee, but i've been calling for a supreme court at facebook. take it out of zuckerberg's hands. send it to people above zuckerberg. >> they don't issue recommendations -- >> i want rulings. >> that's usually often called the board. >> well, whatever they have there. >> he controls roughly 58% of the votes. the organization seems -- the documents seem to be indicative that -- >> did we learn anything that we didn't already sense

>> only if you were cynical. >> you've seen the divisiveness. >> i've placed ads with it >> what, are you making faces at me >> no, i'm not making faces at you. >> i'm just making sure. >> jim mentions the investing club, and you can get in on the new club sign up and find out more at cnbc.com/investingclub, or just point your phone at the qr coat on the screen. speaking of stocks and the markets at large, you're still leery about october. >> yeah, i think -- we have historically -- and if you just decide to overlay 20 years, that it's just going to be negative second and third week, by the

way, is when earnings come i don't think they'll be as bad as the stock market has indicated, but if you look -- there's many stocks that have just gotten crushed here. >> such as >> you want one? >> yes, i would love one give me one. >> how about the largest retailer in the country? >> walmart >> yes >> how about the drugs ex-merck? >> you did that ridgeback interview. good interview >> i could talk for a year and a half about peer review yes so the drug stocks, the rails, and walmart

>> also delta. airlines said they're back on course do you 30 to 35. tsa clear, 2.1 million on sunday, second best -- >> i think people are traveling again. i feel much more confident i'm not at all concerned that the american people are still worried as much about delta. >> there will be roughly -- >> end of the year. >> yes, only a few months away.

>> all right we still have cases down 35% from september 1 we're watching auto deliveries today. let's talk some ford with phil lebeau >> the september number from ford is a decline for the month of september of 17.7%. remember, that's in comparison with september of last year, but there are a couple interesting notes in here, which may indicate that ford could be close to perhaps seeing the bottom in the chip crisis, which is causing a lack of production. >> they were able to boost their inventory they're still dealing with a shortage. the company also says the reservations now top 150,000 vehicles how things are changing in terms of how we interact, ford has seen the increase of number of

vehicles of -- being ordered that's a transition. that is what norad is starting to see in terms of more people order ago vehicle, as opposed to saying, okay, i'm going out to the dealership >> i ordered a maverick. i ordered it in the spring >> okay. >> david >> still haven't gotten it >> i was going to take it down to the -- >> when were you told it would happen >> soon. i'll get it soon i'm just mentioning this as part of the semiconductors. i bought to be able to go to the eagles game, so i really don't have to hurry anymore. >> you can go to broncos game.

>> you're right. andy reid, too i think people are very xhisted to ford and want their products. if -- there might be good battery news but i still don't have the chip news that i want or the car that i want we've got some calls on dupont, 3m, some airlines. a lot to get to on this busy monday don't go away. if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision.

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let's get to a mad dash with jim.

there are many problems with 3m >> i also think they doesn't -- it's devastating for the following reason >> business has not picked up. but it should have also wants -- i don't think you

can talk about china, particularly with the air flights this weekend over taiwan. >> there were quite a few. >> what happens if taiwan decides to activate its anti-a anti-aircraft. >> not good. >> is it like war? what's it good for absolutely nothing i saw the overflights. they were incredible we have to find out about president biden's china, but every company that does business in china. >> extending the same tariff regime, but wrap up 3m for me and the viewers. >> even though it's been slightly underperforming, there's no visibility. we have opening bell just w nus aya don't go anywhere.

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one against it's about premarket. as opec-plus meets today

we'll see whether or not there's an output increase. >> i think we are in the dark about what's going on in europe and in asia with natural gas it is prices are extraordinary australia has got it, kuwait has got it, and we've got it remember, there's a mismatch of pipelines. five pipe did not lines just didn't make it so you have a temporaries mismatch >> we are going to stay focused on this. include, unfortunately, the

possible we may see a lack of it and outages. if supplies are just not able to be kept up with. >> absolutely. we have the ability -- remember, natural gas is a -- if our oil companies are growing again, but they're deciding to hold back. and they love them prices they're returning it to the investors. >> wti, 7704, and the real-time exchange it's chip maker wolfspeed. and hologic, in honor of breast cancer awareness. >> that's a company that's transitioned a lot of people felt service so covid-oriented, one the pandemic peak, that they would.

>> there's one called skin, which is beauty. >> wait, that deal closed. >> one of very few spacs that i feel will not by on your hit lit. >> you knowi funny, looking at spacs that have gone public we're here talking about the pack it's amazing to me. >> hope springs eternal, as we've talk about many times. it hasn't quite completely eliminated the maybe there is

endless demand, but look i met with the person in chans charge of the sustainability they're going to 100,000 rivien. they're going public the old-fashioned way. >> it is one to think about you now that you've such big gains in lucid, which amazon is banking on in order to reduce its carbon footprint. >> and then you have volvo, gm saying they're going to launch 20 new evs, but early 2028 david, ij sure you're all over this engine one. >> i was listening, like a lot of people, "squawk box" that had a great group of guests.

mobile e. of course they're sup supportive making the point that this company is going through a radical transformation so that by 2030, gm will largely be an electric vehicle company i met with the sustainable officer last week, they're not just taking it seriously, this is their imperative. don't you think if you were -- look at that they had big numbers, tesla.

>> your point is good, though we hope to have enough grid remember last week in germany, they were running out of coal. we talked about natural gas. do you know what's going on in cole the price of coal has gone through the room >> hey, listen the investment club that owns union pacific, this company is a clean coal company. that seems oxymoronic, but they have the cold is -- >> back better than ever. >> can you believe what david just said.

>> the reason it's going up so much, because there's so little of it, there are no new mines, we're taking this transition, but it's still need ed i'm telling you that we're going to -- maybe evs don't need all the subsidies. >> when i met eloren musk, by, i don't know, 2015, there will be a. >> 2015, we would have an area in the northwest part of colorado of giant solar panels and we'll pry all the energy we needed throughout the region

>> you've got that right, partner. >> it's going to require a lot more -- and bigger lines in substations, and that was -- he argued the whole reason for his solar panel business, it's not going to be enough to get it out of the main hub. you're going to need fatter pipes for electricity everywhere >> he's right. i think there's solid-state batteries that i think will be remarkable, but yeah, i think we're behind i think you would be saying, you know what is it -- again, back to carl's point, you have to make sure the grip is supportive of it, which is another entire

issue, which a lot of this get back to the bill in congress what pelosi is now say. >> i don't know, make mark zuckerberg >> i wouldn't do that. scare the hell out of everybody. >> have you seen the black friday deals >> carrying the flag on the hover thing.

>> t.j. hooker. >> we have got this morning, we discussed this, it's -- it's not accepted there's essentially, there's a private equity firm, ssw par partners, it's well-known names. ssw partnerssh basically they're doing it at the same time they're going to take the arriver business -- this is the

big that qualcomm wanted, so total value of the deal is about $4.5 billion they'll take a arriver, and thi will be owned by ssw, and then owned of with a -- it cuts the regulatory time frame here the key here is this arriver business is a software spac to go with qualcomm's chips, and they will sell this to oems, we're talking about ev, and of course about automated driving, they will sell this, and compete directly against intel ace mobile eye in terms of landing some of those deals.

with that over bid that they did succeed. to go up against mobile eye is ver interesting. very exciting product. but there is so many -- and on driverless audi calls it a perfect storm. we look forward to more stable operating environment through the fall, and yet marvel said chip shortage could extend

be bedowntoyota and gm were very impacted but there is still many, many cars and trucks at risk it's too early to tell we're just not getting there we're not there yes,. both america and moderna, down sharply merck is continues the gains on news of stopping that trial because of efficacy of the

peer-vie viewed antiviral over a five-day course to basically beat down the virus if in fact you knew you had it and tested for it we did see that then licensing to merck and here's wendy holman. >> well felt an obligation if the drug were to work, we wanted enough to have it 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 they have publicly announced they'll have 12 million treatment courses by the end of the year they have also entered into

volunteer license agreements with different generic manufacturers to allow it to get to, sort of other parts of the world that would not be able to afford it. >> it's going to be a huge revenue boost for merck. now they have gone in opposite directions >> look. this is a drug, when you look at the costs -- this is how they do this it's going to save the -- over three wards more >> it's priced right now at $700 for a course of treatment. >> unfortunately, i did. you know, $1700? just for a relapse, where i had a weekend where i went on a

saturday night, demanded to get out in time for the super bowl, saved the system $1700. we are heartened by dr. gottlieb's comments this morning -- i'm of the opinion this is the last major wave of infe infection, barringing something unexpected. >> i know that people want to be wary about thanksgiving and christmas. i'm saying people are going to places one of the things that's incredible, you can have 70,000 of people in a stadium, you would expect to see a wave in the way that 1918 at a philadelphia war bond, where they -- war bond drive, where a huge number of people died within the next two days here you go to a game, the only thing that really happens is what's on the field, which is depressing, but nothing like -- >> they didn't have a vaccine for the 1918 flu >> but i'm saying -- right

i'm saying i don't believe -- no one is wearing a mask. >> no, but a lot of those people in the stadium are thankfully vaccinated. >> i still wear a market in the elevator you hear about great waves of covid after a ball game? >> florida, which did virtually nothing, cases have plummeted. there's -- actually there is an a.p. story about some states in new england. we're going to be vigilant -- >> maine has some issues, alaska is having some serious issues. >> paychex is on tonight -- why couldn't you just say yes to that >> i looked at carl. >> that would have been a great -- >> i wanted to hear what carl said. >> he has a better way of saying things that i i do >> you know, jim, that is very true you know, that's true.

and your guy, matt, the second greatest in "jeopardy" history he went to yale. >> gentlemen, the "jeopardy" contestant is doing well, and we look forward to him joining us someday if he ever finishes his run. facebook back to 330, down almost 4%. a loot at the bond record, part of that is about the prospect of rising yields. the ten-year is just south of 1.5.

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it's got no intrinsic value, and -- >> should 24th regulate it

>> yes, they have to you can't regulate everything that a bank does in terms of moving money and not regulate what you would call money. if people use it for tax avoidance, sextrafficking, ransomware, it's going to be regulated, whether you like it or not it's not factual statement >> jamie diamond talking to jim van da hi about bitcoin as jpm hits an all-time high. >> i think jpm, one of the things that's amazing about jamie, i think he's spot on about the idea there needs to be better regulation. we're in a world where every single one, everyone, david of the cyber security companies that i have on, i have everyone on, say look, this is how it's paid just pay this stuff. untracked. >> the crypto is used for ransom

payment and -- >> it's an everyday affair not only that, such a shaky system when it comes to stable coin, supposed to be like your money fund, that said, the enthusiasm continues because the one thing that jamie dimon doesn't get, young people don't believe our money has any basis in fact. >> my kids in all seriousness, here's some cash, they're like, what do i do with that that's actually -- >> yours >> give me -- send it on venmo i don't know what to do with this. >> no in. >> no. >> can you not give me the cash? >> what world do we live in. >> first branches and not physical -- >> take the cash, kid. >> can you -- >> venmo what >> take the -- >> will you -- put it in my paypal account that's what they say. >> no one likes to touch cash during covid covid really hurt the whole cash

business why i like the plastic companies. everybody wants to buy etherium. >> was it good fellas like, keep it coming. the guy is like i don't want the dallas, send it to my venmo. >> that's the world we live in. >> thinks the bankers feel like spider >> i don't know. >> i didn't want to get blood on your floor dow up 33. 'll get stop trading with jim in a moment. at vanguard, you're more than just an investor, you're an owner

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let's get to jim and stop trading. >> texted me and reminds me this was a huge weekend since new po reopening records for global attendance and that -- he's talking about no time to die, internationally, being incredible coming here i know that there's a screening tonight. i will point out, that adam aaron is the greatest survivor i've ever come across. i had him with cocktails and presentation at my corporate governance meeting and he has the ability, a lot of money in the bank and i know david, sometimes you think that the stock is over valued, but it's the only game in town. >> he did warn me i'm a bond fan, he warned us don't think

about goings the first night >> i max 2, back above $20 first time since the fourth of july. >> jpmorgan and imax 2, pretty much says everything. >> does it >> right >> will you give me -- >> if you say so. >> yes i do say amc is over valued. >> the oil -- it's the oils. the semis keep going down, the oils up. starting to get me aggravated. tonight we are switching directions and have ibm, fresh off their analyst meeting. >> you always have great guests. >> thank you paychecks because the business there is on -- i'm talking about being on fire. and then mccormick the business on fire but nobody cares because the raw costs are going up so much raw costs, david

inflationary >> yep. >> the bofa note over the weekend. things that don't have a supply chain. >> gaming. >> cloud. >> software, enterprise. >> i think that salesforce is a buy here down. i've been behind salesforce as long as i've been behind facebook. >> but not turning on salesforce >> no! you see salesforce is -- facebook i just feel like that they -- like twitter. >> benioff. >> they have to sacrifice -- >> so big. he would eat you if you did that he would literally eat you. >> came up to me having dinner outside mr. chow's, said i love you at ford. he said my name is -- ford, like the lincoln ad just incredible. you're amazing he said i have more of a body of work than ford but doesn't matter the ford adds are great. >> we'll see you at 6:00 "mad money." merck and jpm helping thdoe w climb up 26. don't go anywhere. you need to hire.

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good monday morning. welcome to another hour of

"squawk on the street. on carl quintanilla with david faber live at post nine. morgan brennan has the day off dow gaining 75 points thanks to some banks and drug stocks we are watching energy prices, oil, near 78 f.a.a.n.g. lower on a bus busy busy week. >> here are the three big movers we're watching tesla rising after the company announced it delivered 241,300 vehicles during the third quarter, 73% increase over the same quarter a year ago and a bit better than expected up 3.75% delta airlines reinstating its third quarter revenue forecast after cutting it about a month ago. the company saying it's expecting 2022 domestic bookings to surpass prepandemic levels. up about a third of a percent. 378, stock under pressure after jpmorgan downgraded from neutral to overweight citing a lack of

funlds direction for the company. a facebook whistleblower unmasking herself in yesterday's edition of "60 minutes" accusing the platform of, quote, betrayal of democracy julia boorstin has more with facebook shares down sharply julia? >> well, the whistleblower is frances haugen, a data scientist who worked in facebook's integrity division in 2019 that was before the division was disband after the 2020 election. now earlier this year she started secretly copying tens of thousands of pages of internal research and last month filed at least eight complaints with the sec. >> the thing i saw at facebook over and over again, there were conflicts of interest between what was good for the public and what was good for facebook and facebook over and over again chose to optimize for its own interest, like making more money. >> haugen saying that after the election facebook reversed many of the settings it had

implemented to minimize misinformation and then the platform was used to organize the january attack on the capitol. she also revealed political parties across europe have complained that facebook's algorithm forced them to skew negatives to draw more attention to their communications on the platform >> facebook has realized that if they change the algorithm to be safer, people will spend less time on the site and click on less ads and make less money >> haugen leaked these documents with the hope of driving regulation of facebook the company responding issuing a statement saying, quote, with the number of missing facts, responses countering six areas of criticism, saying in a statement, quote, every day our teams have to balance protecting the ability of billions of people to express themselves openly with the need to keep our platform as safe and positive place. we continue to make significant improvements to tackle the

spread of misinformation and harmful content to suggest we encourage bad content and to do nothing about it is just not true we'll hear more from haugen when she testifies tomorrow morning at 10:00 a.m. before the senate subcommittee on consumer protection mike >> julia, thank you very much. as we saw that stock down almost 4% turning now to the broader markets with the nasdaq lower for the sixth time in seven days, the big under performer some of the cyclical areas like banks and energy doing better. guide stone capital management david and bny wealth management alicia good morning to you both alicia, love to hear your take on where we are here after several weeks of headline weakness in the s&p 500, a little bit of firming up of some of those other economically sensitive areas, but also tough seasonal period. are we through this or still in it >> so, good morning, nice to see you again, mike.

look i think that we're probably a couple of weeks away from stabilizing here it is seasonally very weak we're really right in the middle, maybe towards the end of getting all those earnings revisions downward for the third quarter. that's probably going to take the fourth quarter down as well. i don't think that's going to be a surprise given where the data have come in over the last few months, particularly on the inflation front and the supply chain front. once you get that out of the way, i think we're fine for the rest of the year looks like the market is set up for this quarter to have a cyclical and reopening bent to it the data have gotten better. the stocks have moved. so as you know this year we've sort of moved quarterly, between growth and value, growth and cyclical feels like the fourth quarter is going to move cyclical we'll see how long that stays. the question on yields is an open one and whether we rocket higher or not will determine how far that trade goes. >> david, does that all fit with how you're seeing things right

here, that yields moving up are so far still maybe in a benign level and saying something good about the economy or is that potentially something that can continue to pressure the market? >> i think near term it's a good sign you are seeing a steepening yield curve, indicative of expectations for higher growth, maybe some sticky inflation, but if we get through earnings season without too many misses and clearly the supply chain issues could create some earnings misses, which would not be well received, i think we're set up nicely for a fourth quarter cyclical rally declining covid cases, positive seasonality and honestly as long as the fed isn't raising rates there's no place else to go and you can continue to see money go into the cyclical parts of the market. >> you would lean into that idea that you would want to ride the cyclical kind of rebound, as opposed to, you know, use the pullback in big growth names to reload there >> i think a barbel strategy makes a lot of sense

i think you want to own financials given the steepening yield curve. energy may be a little over done you want to own technology and obviously having weakness today with facebook and others, but when the market does pull back, those very high growth names are the ones that tend to out perform and i think that barbel strategy will serve you well here >> alicia, how does the policy sofr stay sis or the struggle get done, plus the fed tapering into a slower economy, how do you think that plays right now? does the market want to get beyond it, or are there actually, you know, potential headwinds there? >> look i think the market would love to get beyond it but what happened in the last couple days of last week is going to prevent that because now we have an open-ended question about whether or not we're actually going to get a reconciliation bill of any size now that the highway trust fund has been paired away from the larger infrastructure bill, the

pressure to get that done is also gone. in a strange way, we're worse off than we were because there's less clarity, which means it's going to be noisier going into november and december. that's why i think we have a few weeks here where it could be pretty volatile in the market. if you think of where ism numbers are now, we're probably moving lower into the second quarter of next year, so that suggests that even though we like the cyclical trade here on a tactical basis, i also agree that you have to have a barbel strategy here. in the end this year you didn't perform if you had only one or the other. you had to own both sectors until as needed. the data have come in better as we've spoken about earlier on the traffic side, the tsa side and hotel side clearly demand for services is increasing that suggests those kinds of stocks in the cyclicals will move in the near term.

but, you know, it does you no good to be overweight one or the other in this kind of market >> yeah. obviously moving into sort of mid-cycle at best. usually it does mean one of those transitions is probably around the corner. david and alicia, thank you very much good to see you today. >> thank you >> thanks. we have sad news to share this morning citi group's chief u.s. equity strategist and long-time guest of this show and network tobias has died he had sustained injuries after being struck by a car near his long island home in september. we are devastated. if you knew him well from our air, that was one thing. on a personal note when i started out at the journal in the '90s covering caterpillar he was the analyst on beat and would pick up the phone and help this young cover reporter figure out the industry just incredibly sad news over the weekend. >> without a doubt you know, he did this --s he was

in the strategist role for 20 years. that's an amazingly long run and you only get something like that type of attention -- tenure if you have the rigger and add value, but people want to see and talk to you all the time that's what job is he was really just such a generous and sweet guy when i was at barron's we started using one of his proprietary indicators in my column like 15, 16 years ago he wouldn't give you the secret sauce but every time i had a reader question he would talk me through it and just self-deprecating almost to a fault if that's possible. >> yeah. just a kind and gentle man as you said devastating to hear that so many people were unaware of the accident and so this came as such a shock my deepest condolences to his family but he's going to be missed. >> he will our thoughts are with his biiends and family toas levkovich was 60 years old. can help with that.

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today marks the deadline for facebook to respond to the ftc complaint. our next guest says the ftc will succeed in fighting off facebook's arguments joining us is gewilliam. >> good to be back, thank you. >> we have the ftc complaint back and forth and the "60

minutes" whistleblower interview and the journal reporting. of all of these boiling pots, what is the most significant >> i think the most significant over time might be the last two developments because they have so much to do with the legislative process. i think they're going to stoke the fires that press in the direction of adding new legislation. i think that the lawsuit is important, but perhaps not nearly as important as what might happen in congress as a consequence of both the journal's reporting and the whistleblower's revelations. >> legislation mandates what, given the political framework that we're in right now? >> legislation that deals perhaps with privacy and data protection and imposes much stricter obligations on platform owners to control the types of information that circles through their platform and imposes much tighter controls on how they collect and gather information, how they run the data

circulation and collection business itself. that's one strong possibility. er in the another -- another you get severe controls under antitrust law that establishes a new regulatory framework that sets basic principles that are to the companies about how they can operate. >> companies may argue and facebook in particular, that we're doing our best, we've spent a lot of money, hired thousands of people to try to monitor the content. what more can we be expected to do >> i think both in the litigation process and before the congress, they'll make exactly that argument and say that this is the best that human beings can do. i think an issue that it will raise, especially before the legislature, is whether these systems in some ways defy effective human control, that when you go from having a few hundred users to billions and

expand the range of services, have you established organizations that simply defy the ability of people to establish effective internal controls, even if you're doing your best and using the greatest good faith to make it happen >> william, i would like you to explain to our viewers the connection between the ftc action, should they be successful in proving that facebook is a monopolist and whatever remedies would be applied, and the negative societal impact that the platform at least appears to have and how that with would be part of any remedy that's not clear to me >> the assumption in the ftc's case is that if you succeed in obtaining a divestiture, creating two or more successors to facebook and if you open the door for app developers to emerge as providers of information services platforms, you're going to have rivalry that drives companies to be more sensitive to the types of

concerns that feature in the regular -- in the recent coverage the companies will feel compelled to provide greater protections for their users, to be more solicitous of their user concerns about privacy that's a debated proposition, though, and another interpretation is that firms will simply drive harder in the direction of doing some of the same things that facebook is accused of now a pivotal assumption in the f ftc's case is more competition, more open market, is going to bring forward firms that will strive harder to safeguard the interest of users by protecting their privacy and providing them with better quality information. >> how does the reports, the revelations from the whistleblower that perhaps facebook was aware of some harm being done by some of its products, play into what the ftc or other regulator or

legislatures might do? does there have to be an objective standard of harm that this certain type of product is dangerous, where you say if they knew and concealed and didn't act upon it that is something that is of interest to the government somehow with tobacco, as everyone is drawing the analogy, it was very well established that there were harmful health effects when the companies knew about it. >> i think the greatest concern i would have from facebook's point of view is that the developments raise questions about the sincerity and the accuracy of their representations. that it raises doubts about whether facebook is being truly forthcoming in offering its explanations certainly in the litigation, as both of you just mentioned, and in arguments before congress, the companyis going to be arguing that it's using the best possible techniques to provide a good experience for users. and to ensure that users are not misled or abused in some way

if you raise the question about their sincerity and you suggest that the whistleblower has, that there's a deeply sibsicle approach, that the legitimacy of these valued arguments is called into question. the fear i would have as the revelations come out, is that legislator and the judge simply won't believe me when i argue that i ams using a sincere, best efforts, best practices approach to provide a good experience >> yeah. maybe that is the new wrinkle that the whistleblower has introduced appreciate it. we have a lot to watch regarding that name. thanks so much. >> grateful for the chance to be here today thank you. all right. as we head to a break, shares of lordstown motors falling as much as 10% as rbc reiterates its under performing rate on the stock. other alternative energy players

under pressure including nicola and fuelelun cl, r counter to tesla, that stock up 3% today. stay with us ♪♪ ♪♪

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all right. time for our etf spotlight taking a look at the spider health care sector the ticker the xlv lower since beginning of last week a different story for one of the core holdings, merck, that stock up more than 14% just in the last week and extending gains this morning as you see another 2.5% the data that the drugmaker and its partner ridgeback therapeutics released about the experimental antiviral is a key for that move higher here to break down the space morning star's damian conover. start with merck and what pit cn do for the company and what kind of sales are you looking at for next year and beyond >> great question. a catalyst in the stock and this drug looks very, very good it looks like it's at least 50%

effective in keeping people out of the hospital and preventing deaths, so really important mu drug and importantly it is orally administered. really the only drug for this sort of early onset of covid are these antibodies which work well, but you have to be infused intravenously. that's a big headache for patients pretty important drug for merck. we think peak sales potential for this drug are over $3 billion annually here's the important point when we think about this drug, we think the duration of sales probably aren't going to be as long as some of its cancer drugs that look really well positioned and largely due to the likely scenario we'll see increased vaccine utilization and probably see less covid cases as we get into sort of that 2024 time period and beyond, but nevertheless, in the near term, a nice shot in the arm for merck. >> yeah. so to speak, of course, but this you take orally.

you know, i do wonder in speaking to the founders of ridgeback on friday, there is at least the hope, if not an expectation, there may be broader usage for this drug. it may not just be covid-19 that we're talking about, but any number of other coronaviruses or even flus. is that at all part of your model? >> where you know, that's really upside there's upside not only in the current covid case where this drug could be used more in a preventative setting and we'll get data on that probably early next year but beyond covid there is potential for this drug to be used more broadly and that could be a much longer duration of sales and a lot more potential ridgeback and merck. it's very early days for those sort of extension studies. nevertheless, further upside possible >> yeah. and finally for the longer term you mentioned the usage of it may spike but wane, what about key trudeau, a key drug for this company, coming off patent

is there a gap there still for merck that they're trying to perhaps attack through that acquisition they did last week >> yeah. you know, i think there is an app that merck will need to fill eventually keytruda, important drug, positioned competitively, not facing generic competition for almost a decade. there's a lot of time here for merck to generate enormous amount of cash flow and redeploy that aloe saying like we saw last week with the acquisition and i think further acquisitions happen we think merck looks under valued and we think the concern about the increased amount of cash flow is coming from keytruda are overdone because the drug by itself looks well positioned and the duration of cash flows look long enough to redeploy that capital to do more acquisitions and develop their internal pipeline. >> damian, thank you >> absolutely. good to be on. thank you. still to come we're going to talk supply chain pain with the

ceo of schneider, one of the largest logistics companies. dow down 200 headlines, schumer saying they have to get something on the debt ceiling by the end of the week and bow hard saying we're going to have more inflation than we're used to for some time back in two minutes. ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪

i'm christina and here is your cnbc news update at this hour beaches polluted by one of california's largest oil spills could be closed for weeks or months that says the mayor of hunting beach is predicting after 126,000 gallons of crude leaked from a pipeline owned by amplified energy efforts to contain the damage are continuing. it's the first monday in october and that means the u.s. supreme court is beginning the new term the justices will hear in person oral arguments for the first

time since the pandemic began, although justice brett kavanaugh will participate from home since he tested positive for covid last week. two americans won the nobel prize for medicine being honored for their discoveries of the receptors that allow humans to feel temperature and touch and could lead to new pain treatment. and this morning, an official announcement from jeff bezos's blue origin, william shatner, captain kirk, will be one of four people making a suborbital flight next week on the company's shepherd vehicle in a written statement shatner says, quote, i've heard about space for a long time now. i'm taking the opportunity to see it for myself. what a miracle back to you guys. >> all right thank you very much. cnbc now out with a new road back barometer looking at the ongoing supply chain issues. steve liesman has all that for us hey, steve. >> good morning. yeah, resolving the supply chain problem is critical to the growth outlook and bringing down

inflation. by now, the fed thought the bottlenecks would be opening up but the ply supply chain shows the backups are bad and look to be getting worse according to data from ihs market the data of on time cargo ships, not so reliable, down 10%. the cost for short hold trucking averages $3 a mile up nearly a buck and the key shortage of chassises, that may be the linchpin to this mess running at 8.8 days of idleness on time ship arrival trends worse about as bad as it was in january. the system cannot seem to catch up the $3 per mile trucking average i told you about it masks a higher rate on specific routes for example, the l.a. to phoenix route up to nearly $4.50 that's from around $2.50 l.a. to chicago up 13% week to week

finally the simple pieces of equipment, no microchips in, there the chassis. they move the containers they're in short supply because users hoard them the shortage comes from driver shortages and warehouse space it unload the containers. the system backs up further. mark from ihs tells me the most container lines don't see relief until the-end of 2022 or early 2023 backups in one part of the system create backups in others so relief in are pricing pressure from supply chain troubles could be down the road and fed officials say high inflation rates will remain well into next year guys >> we were just mentioning the bollard headline a few moments ago. why can't they import new chassis but i'm almost afraid i know the answer. >> this is an absolutely crazy chassis story. the deal is this, the trump

administration put some tariffs on chassises that led to a huge number of imports of chassises ahead of the tariff that led to a dumping charge that led to greater tariffs. there's some enormous tariff rate on the import of new chassises that's preventing foreign suppliers from doing it and thens u.s. suppliers are trying to catch up guess what, carl they can't get all the parts they need to build new chassises because of supply chain constraints. >> yep i figured. thanks important conversation steve liesman. for more on how the supply chains are being impacted we're joined by mark york, one of the largest trucking companies in the united states. good to see you. >> great thanks for having me >> i guess maybe it's obvious the view the shortages would begin to get repaired in q4 is that a fading hope >> we're in for several more quarters the u.s. is just so advantaged

from a sophisticated and mature and shichbts supply chain that's been turned on its ear the last four quarters and we're in the same place and we're going to be here for while >> what do you think solves it, other than simple demand in the near term that allows inventories to get replenished, allows manufacturers to reinvest in their capital investment strategies and help those supply chains i guess reshore or move to a just in case rather than just in time >> well, you're on it. we have the whole demand picture is over running what's available and the people resource and the equipment resources to catch up and if you look at the inventory to sales ratio, healthy consumer, all of those elements continue at least give us confidence the condition will continue the way it is i do believe it will be more of a demand correction over time than it will be supply,

particularly in the short term >> we spent a lot of time talking about vaccination rates may be getting slowly better, therapeutics becoming a bigger factor in trying to manage covid. if those things work and begin to click, is that good because you get better outcomes in malaysia and asia where a lot of this stuff is made or is it bad because demand here gets stronger and doesn't let that supply chain get healthy >> i guess that fdepends on you view solid demand is good for the economy. there's a stand in the gears whether the international supply chain or all elements of the domestic supply chain, and so demand condition i think is going to reign here for a while and we're going to have to get more creative figuring out how to deal with it. >> i would love you to put this in perspective for us, i don't know how long you've been doing this, but have you ever seen anything like the number of different factors we're dealing with right now when it comes to

supply chain management? >> i'm in my 34th year and i can think back to years like 2004 and 2014 and 2018, but nothing as dramatic as what we're experiencing since mid 2020. the confluence of issues and challenges across the board are really unprecedented in my view and i think has given legs to this whole recovery. >> right does the confluence of factors mean it's simply going to take longer to ameal rate all the different concerns >> yeah. that would be my view at this point. i don't see a lot of relief coming on the labor front. lots of options in the marketplace for professional drivers and freight handler. you're seeing a little bit more flexibility in the ports, to find ways to perhaps extend hours. i think more and more of our customers and more and more players will have to think some of unique ways, different ways of doing business, to help get

more productivity through the system that's really what's lacking now, is the productivity through the system i think it was mentioned hoarding of chassises or a lot of freight is sitting on boxes, we have containers and trailers waiting for someone to unload them which kind of backs up the next movement and so all of those productivity elements are really dragging down the entire system >> so when you talk about different ways of doing business, what -- give us some examples and how does it collide with what maybe say unionization pressures out of labor >> well, we encourage our customers to be thinking about how to be more flexible. we may not have a truck in that area today but might have an intermobile container or a third party to live load at your facility to get the freight moving thinking across modes, maybe we can get an intermobile move today, moving on that, and so give us the option and let us come to bear with some solutions that can get the freight moving.

>> finally, although we're dealing with a lot of i'm sure headaches in your business, given the strong demand environment, is it a good time to be in your business >> well, it's -- any time that you have more demand than supply i think that's a good capitalistic approach. that's good for your business. it's not always a beneficial you can't make everybody happy which is what you like to make your customers happy each and every day. we've all had to figure out how to allocate resources and that doesn't go without some pain across the supply chain. >> mark, really appreciate it. it's eye opening and we hope you will come back it's going to be a story for quite some time. appreciate it very much. >> thanks for having me. worth mentioning the market here taking a bit of a tumble down 1.4% on the s&p the nasdaq down over 2.25% right now. some of the mega cap names suffering. >> that's the biggest weight also just kind of undoing much of friday's bounce

if you want to look at friday's low just under where we are in the s&p 500 like 10 or 12 points all that together. banks, energy still trying to hold things together, but it's not enough when you have microsoft down 3%. >> tesla shares had been up more than 1.5% but still amongst the top s&p gainers. phil lebeau has more on the numbers. >> these were better than expected deliveries in the third quarter for tesla and when you say well how much better the street was expecting them to deliver anywhere between 220 and 227,000 vehicles in the third quarter. they wound up delivering 241,300 vehicles that easily beat the consensus estimates out there. like in the second quarter and first quarter, the priority model 3 and model y. 94% were those two models. the supply chain issues did hurt tesla in the third quarter elon musk talked about it early in the quarter and made mention of it in the delivery report

but the curious thing is that they've been able to manage the semiconductor situation far better than a lot of other automakers around the world. when you look at their full year deliveries the consensus moves higher it was 860,000 vehicles expected for a full year a couple weeks ago. last week it was up to 878,000 now the consensus is for 838,000 vehicles to be delivered this year or 883,000 excuse me this year, from tesla that is the consensus at this point. take a look at tesla versus general motors and ford. remember, evs make up 3% of the market, but in the last three months tesla has easily outperformed both general motors and ford and again, while that is high as earlier today in the trading session the shares of tesla are moving higher. >> yeah. certainly they've been acting pretty well for a while now, tesla shares so to get at this issue where tesla seem not to have been

impeded as much by the semiconductor shortage, can it be as simple as the numbers game, the absolute number of vehicles that tesla is creating is relatively small? the overall industry does millions, you know, in combination, so is it just about they can scramble for as many as they need and the others just can't? >> well, i think that's a little bit too simplistic you can't just say that. elon musk said that they were going to be prioritizing more readily available semiconductor chips and also working on the firm ware, within the vehicle so they could better handle the situation in terms of the tight supply that was out there. having said that, when you read the analyst notes, mike, it's very interesting nobody comes out and says well this is exactly why tesla was able to do better managing the chip crisis than general motors or volkswagon or whoever it is almost every other automaker has been impacted to a certain extent it's not entirely clear what exactly are they doing that

others are not doing, but you've got to -- hats off to them they have managed the situation in the last three to four months far better than a lot of competition. >> you mentioned the analyst notes today, phil. jpmorgan reiterates their underweight although bring the price target up a bit. it's the same argument, compare the market cap where they're clearly number one to unit volume where they ranked 18th and in their view that does not work. >> no. and that is the argument that you hear from a number of analysts, not all analysts, but a number of analysts continue to say look, you cannot support this valuation with the number of vehicles that are being delivered. even as they move closer and closer to delivering whether it's 900,000 or more than a million vehicles, which is what many expect them to do next year at the valuation where they are right now, the -- i wouldn't call them bears but the more skeptical analysts say this does -- this valuation does not make sense obviously the bulls counter by saying, look, they've got a

number of things that they're working on that are going to kick in and justify the valuation over the next several years. >> get above 800 this morning since march. phil lebeau. we're going to keep a close eye on the market. tech stocks as we said getting hurt here. nasdaq lowest level sin july it does look for the moment atth we bounced on 4300 we'll get more on the sell-off coming up. don't go away. they guide me with achievable steps that give me confidence. this is my granddaughter...she's cute like her grandpa. voya doesn't just help me get to retirement... ...they're with me all the way through it. come on, grandpa! later. got grandpa things to do. aw, grandpas are the best! well planned. well invested. well protected. voya. be confident to and through retirement.

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>> not responding to a back off in bond yields that's usually the combination, they could act as some kind of def here oil racing to a new high, at the same time you have, you know, jim bollard talking about inflation being sticky, whether that was in people's heads or not. if you look at the one month treasury bill, clearly we're pricing in the possibility that the debt ceiling doesn't get done on time it's going up. the yield. while other stuff going down that's been the case tore a little while it seem to me this kind of set of familiar anxieties striking a market that's really back on its heels technically. friday's high was the same as the high in the s&p for the prior three days it seems a little bit trapped. and in a broken trend. i think that's why there's some people emboldened to see if it can force the market a little bit lower towards friday's lows. >> the other headline we dealt with this morning was the opec is going to stick to cautious pace of production hikes, add 400 k in november, though. >> right. >> and so that's not, you know,

it's not oil flying to new highs because demand is ramping really fast today versus what we thought a few days ago that's always, you know, one of those issues out there the backdrop is third quarter earnings forecasts keep getting trimmed, not getting slashed, but getting trimmed. people trying to make the case that we're seeing a little bit of a saturation point, a climax in supply chain concerns, maybe everybody right now is so focused on this one thing and has been for so long it's going to be on every conference call that you can imagine, that maybe as we shift into 2022, people have bought too many goods and go to service. there's a story line you can put out -- >> the other side of it. from the schneider ceo, he didn't indicate -- >> he was looking at the order book. >> but talking about the fact he's never seen anything like it in his 34 plus years of doing this that is the case for many people running organizations right now, both dealing with higher commodity costs for their end goods, supply chain issues the likes of which they've never seen, and i mean then energy,

it's more than just looking the at crude which obviously is moving dramatically higher there are questions in terms of just reliability for the grid as we move into this winter season. natural gas prices obviously moving to highs. europe even worse, though. certainly concerns there as well a lot of different things that we're grappling with here. >> a case made that you're seeing kind of stagflation nary narrative develop overseas especially. >> yeah. >> if you look at europe and that seems to be, you know, kind of filtering back. >> that was of bofa this morning. real yields don't signal stagflation but energy prices are more painful abroad than domestically so perhaps what's actually happening is stagflation fears are raging abroad and dragging u.s. nominal rate with them. >> right >> that makes sense to you. >> i think it's very plausible you have the dollar index has been a pressure point which should reduce the inflationary issues here a little bit at the margin, but you also have this

very modest tightening of financial conditions and so the whole formula has been, you know, earnings racing higher at the same time financial conditions are loose and the fed not looking to be proactive in getting in the way of it some of it is just sort of, you know, we've had some complications to that. >> what do you make of some like credit suisse, that's going to be made clear once we start getting the conference calls >> you can't rule it out, but i think it's obviously company by company, industry by industry. it's not some kind of magic that any management company, management team can execute. i think the choppiness in terms of earning forecast and how the earnings season might look it looks more normal, you trim ahead of time and everybodies beat are we going to beat by 1,500 basis points collective in the s&p, i doubt that. >> what about the overlay? far be itfor me to decide what's going on in washington, d.c. right now, but is there a belief perhaps we won't get any

additional spending, even the trillion that obviously seemed to be more of less locked in >> i suppose that is a possibility. it's never seemed to me that the dollar figure was the material item obviously it contributes to this idea we have a fiscal drag going into next year the same time we have a slow down next year and all of a sudden it seems like as happened in 2011 and 2015 and 2018, as everybody gets used to the idea that we're slowing, that's when the fed decides they have to get on the stick and start removing stic stimulus i think that combination may get in the way not getting anything done is the big issue in washington. >> watch it closely dow now down 366. by the way, it is hispanic heritage month we'll spotlight cnbc contributors and businesses and on air and reporters senior wealth adviser, courtney domingas. >> hispanics are underinvested in the stock markets and keep a lot of money in cash

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comcast business powering possibilities. >> now down to 42,87 dom chu? >> as you're seeing right there, it's the lows of the session right now as you can see behind me stocks drifting that way this morning. led by a selloff in technology and communication services, media-related stocks and sectors. now two of the etfs that track those names the xlk and the xlc, the spider etfs are down 7% in just the last four weeks alone something to watch now in today's trading, though, firmly negative territory down by 2% on the other side of things, though, is the energy sector led by names like devin energy and hallaburton oil comes off its highest levels since 2014 for u.s. crude. that jump is being fueled by opec and its ally countries agreeing to maintain planned production hikes with that

cartel aiming to add 400,000 barrels of output per day beginning in november. watch those energy sector stocks two sectors in the green right now, energy is one of them keep it ghrit here more "squawk in the street" is coming up after the break. what the world needs now... is people. people who see things... just a little bit differently. who go out of their way to find a new perspective and a new way forward. because seeing a smarter, healthier, cleaner world isn't something that's far in the future. it's something we're building... now. ge. building a world that works.

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welcome back as we pointed out, the broader market down rather sharply, at least. 1.5% for the s&p but look at shares of gm a nice move there in what has generally been a strong year with the stock up over 31% at this point earlier this morning, engine one that very small fund that had a big impact when it was successful in seeding three out of four nominees to exxon's board of directors earlier this year came out on "squawk box" and said very positive things about gm no plans to be an activist but being quite supportive of the company's plans to offer really what they've said now exclusively by 2034 all electric vehicles, of course, gm also targeting being carbon neutral by 2040. as for exxonmobil, those shares

up we talked about it, of course. that move up in crude certainly has something to do about that, but we'll keep a close eye on what is also a radical transformation that may be taking place at one of the largest certainly producers of oil in the world with the s&p now down 1.4% and megacap tech taking a big hit. that will do it for us on "squawk in the street. send it over to "techcheck" right now. ♪ ♪ happy monday, welcome to "techcheck." i'm jon fortt talking to julia boorstin and carl quintanilla. half of the stocks are 20% off their high it is now the time to reset in tech then leading the