energy prices. almost an eight handle on crude. stocks headed the other way this morning set to drop. now mark zuckerberg firing back. it is wednesday, october 6, 2021 "squawk box" begins right now. >> good morning. welcome to "squawk box." andrew is off today. never a dull moment in these

markets. now indicated down more than 1%. s&p down 56% big swings in the up and down days part of what is happening with inflation. check out the treasury the yield has been picking up almost 1.55% that has been putting additional pressure on. it certainly is in the short term we pick up more pressure on technology stocks in particular.

wti down by almost 40 cents frmt brent right now at 22.40 natural gas up yesterday, natural gases was up near 9%. what is happening in europe and asia in europe, natural gas futures were up 21%. up 23% on day for december and up another 25% this morning. take a look at that what means for asia the shanghai composite was up. early hours of trading in europe the dax off a quarter of a percent. pressure across the board on this the only thing i've seen really higher aside from natural gas is bitcoin. yesterday saying they are not going to ban bitcoins in the

u.s. for all of the pressure he's put on crypto, they are not going to ban it now look at it now >> the big bold saying you really couldn't anyway china has tried. it seems like a balloon, you squeeze it and it just gets bigger somewhere else. now you wonder if it is a secular move all of the major oil companies have stopped spending as much on

exploration saying, yeah, big deal opec controls it all >> i asked the engine number one guy that question. i said what happens if you are responsible or pause with countries that do not have foreign energy >> you are talking about

countries in europe not being able to heat things. >> you hasten to competition with all of this esg things and with some negative, unintended consequences come out. we know the path to hell and what it is paved with. that drives me nuts. how much does this set cost. i move my newspaper and this thing flies out and mack has to come over and do something this has me irritated today. on today's economic agenda, the september economic report inspected to show 425,000 private sector jobs added last month up from 347,000 added

prior to that. the current consensus calls for the addition of 500,000 jobs with the unemployment rate ticking lower to5.1. a topic we talked about yesterday with secretary yellen on "squawk box." >> it is really up to speaker pelosi and leader schumer to figure out how to get this done incongress

we'll be out of extraordinary measures it would be catastrophic democrats, mcconnell is not going to move. you need to do this yourself telling the washington post or at least the senior aid we are not going through, period, end of discussion. >> you have to be able to suspend.

if they get manhim, all they ned is 50. >> what could go wrong >> you have to say how much you are raising the debt limit >> that ispolitical. you get their party. get those guys to do reconciliation. >> they probably think it is easier to suspend it >> we'll see how they like it.

>> we get closer and closer to the nuclear option this is just the next level. everyone is looking to ee how they can use the technicality to get to the other side. the bipartisan infrastructure bill is not going to happen at this point you have biden saying it is entirely possible. >> what do all of these things have in common the progressive heft in the democratic party biden seems to be lead around by his nose >> my guess is that biden realized they didn't have the votes for it

>> they kept telling americans they didn't have the votes for this massive tax and spind bill frmt. >> also telling us, the must be of border crossings in texas are seasonal they totally lored the boom they do it today. >> they don't have the votes for it >> they are holding out on the reconciliation bill. >> it has to go through. they should start on it if we

are going to run out of money on it >> causing people to take off the mask and see where they stand on those things. >> can i tell you one thing. that seth is driving you nuts. my set doesn't do that >> i bet it doesn't. look at your lighting. look at you like a diva there. more on this morning's market selloff. we'll talk energy prices and the broader impact next. as we head to break. check out the biggest pre-market movers on cnbc

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wall street looks to have another rough day ahead. yesterday was a great day but we are giving it back this morning.

nasdaq indicated interest rates and check out some other stocks feeling and pain including nvidia and intel. nvidia especially down 2.5 this morning. all of these tech stocks, can you really blame them? they've been so amazing and out performing you get a little move up in the 10 year. and down a little. if you are in for the long haul and people servicing the cloud and selling into the cloud it's going to be an amazing time for tech stocks.

>> you've got windows 11 coming out and the hundreds of millions of computers that can't run microsoft windows 11, so they'll need to be upgraded. cyber security and other things. you do have the long term. >> you have to hand it to dell and how they've kept relevant vaent since 1980s. >> not the point of what they've done with all the changes have been for more broader issues. it will matter for the company just on pc demand. the other issue pressuring

markets. brian is following that part of the story for us the idea is that can they get natural gas to heat their homes. >> as you noted. it is a big, growing story or maybe the biggest economicstor in the world so many things happening all at once here is the run down of why this is happening right now first america. america first. u.s. energy prices, we are up here natural gas hitting the highest

place in a decade. nothing near what it has been in europe if you converted to $200 per barrel oil in america. france threatening to shut off electricity it sends to the uk over fishing rights. now u.s. power plants trying to buy coal because wind energy hasn't performed so coal is the best commodity of 2021 coal china continues to have blackouts in port cities sending prices there about $30 we are talking the highest since

2014 we are at $6.5 they are buying it at $40 some plants have days of coal left. the power in some areas may go off soon. natural gas is huge for everything in my previous life before television, i traded commodities. i traded fertilizer. some say i still do. natural gaz produces mu mownia some have said they are going to

stop production because they can't afford it. fertilizer is needed to make food at a time you have all these infrastructures going up i don't think it is hisomething. with the cold, the wind, otherwise, it is not going to be pretty >> i heard a sound bite played at the top of your show saying, it is okay, because this makes it look more affordable for the clean energy, the wind, the solar. >> i'm rolling my eyes >> when you've got people

worried about heating bills and whether they'll have heat in the winter, you are coming out and you are like, well, renewables are staying stable we know renewables are the future they are great they'll produce a lot of jobs and a lot of wealth. energy is the new internet right now, when you've got these things going on. you are a wealthy politician i think if you are there, dealing with it, you are probably frustrated. you are thinking it is great i'm all down with the greening of the world but i need to make sure the heat works next month maybes that because i didn't get enough sleep

i don't know you think all of this is making you steady thinking here it is here and now. thank you for joining us this morning. when we come back, general motors more coming next we'll be right back. today, things can be pretty unexpected. but your customers, they still expect things to be simple. and they want it all personalized. with ibm, you can do both. businesses like insurers can automate it processes across clouds. so agents can spend more time on customer needs. and whatever comes your way, you've got it covered.

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welcome back to "squawk box. it is a busy morning futures indicated down 320 points the give back now a little more than the dow added yesterday the s&p 500 down about 53 points, nasdaq down 206. so it is the biggest decliner of the three. nasdaq was up yesterday. airline stocks under pressure this morning some of that could be on hire energy prices too. goldman down grading jetblue and american airlines. you can see the pressure across the board. american airlines down 3.7%, joe. >> planes, trains, automobiles gm holding its investor day

today. i figured that it is holding its investor day today, i try to use as few words as possible. i know it doesn't seem that way. >> huge day today for general motors a series of presentations starting with ceo mary bara. on down to folks leading various divisions. the next stage is the overall theme here focused on er -- evs and avs rolling out new products talking

about the hummer and the cadillac lyric the cruise origin will be a potential driver the e vv market is prime to explode. we talked about this a number of times. they are expected to hit 1 million of annual electric kales. that will be 8% to 10% in the market you take a look at shares of general motors we are showing you a runup here. people said, look what they are doing with the vehicles. it has plateaued today, mary barra will outline a

position not just the next couple of this is for them to say general motors will be a player not just rolling them out but creating revenue streams models where it is sell it to the dealer, make your money. having a relationship with consumers on a whole different level. >> i like talking gm i love mary barra and everyone else i guess we will know as we watch whether they become a huge player it is a very competitive pace. >> and they know that here they know tesla is the leader when it comes to electric vehicles >> here is the question.

not about gm it is a personal reqquestion abt tesla and about the yes. i have considered an ev and it is a tican because i'm sick of the s. even the 911, each year, it gets cooler looking these small changes. anything in the works to change the body style to update it and make it cooler and make it an impulse buy for me in the season >> i get no sense of that, joe >> why >> their model has been set up to do some slight tweaks they do not have the same

approach as traditional automakers >> send them a note. >> i'm very serious. don't you agree with me that the s is getting stale a lot of cars look like the s now it is time to let's go. >> when you looked at the model

s, you always refresh every year tesla is a little different. this is the first year to see what happens with the model s. that's the higher end. they are focused on the 3 and the y right now. >> sorry to ruin your gm thing i was having that conversation with someone you see when a ticuan and a we'll tesla tesla has the whole ev thing down more the porsche was stuck. there was a problem with all of them, right? >> software problem, which they say they have started to address and have been fixing it with the

owners >> thank you >> it costs a lot to test all of those things tesla liking what they are seeing from the perspective of being able to knock these things out and quickly. it costs money to redo those things when we come back nasdaq futures down by 220 and facebook's mark zuckerberg firing back at critics before we go, we'll look at yesterday's s&p 500 winners and losers

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good morning checking on futures which have gotten a little worse. monday, we gave back a lot of what weigh had by friday >> does the buy the dip mentality come in? you are right. is that something that goes up or that they get adjusted to pretty quickly >> not that bad. i guarantee you more basis

points those factor in to go moves based on where we've been and how long we've been there. >> within a couple of perfect for months when you dip down to 5 to 7% below. that is something to pay attention to >> the higher yields go with what the fed stops goiting you start pushing above 1.51, that they look up. we'll see how this continues facebook under fire. yesterday's senate hearing featured testimony from facefac facebook's whistleblower >> facebook wants to trick you

into thinking privacy protections or changes to section 230 alone will be sufficient while important, these will not get to the core of the issue which is no one understands the issues facing facebook other than facebook. >> mark zuckerberg saying, we care deeply about issues such as safety and mental health the idea we priorities profit over safety and well-being is just not true. zuckerberg attributing the issue to changes to the company's routers. turning to our guests.

we've seen these change. this seems to resonate more. is that the case >> absolutely. i think because this whistleblower actually showed us receipts they said they are having problems engaging users especially younger users all of this together has taken a huge high of 15% from the high in september i think it will continue to get

ahold on facebook. >> this time, not just mark zuckerberg, the rest of the company's response has been one to take on the whistleblower she was not involved in any c suite level board meetings >> these are problems that don't just affect facebook this is not a facebook issue this is facebook, youtube, twitter. we've seen article after article and investigation after investigation. how many brand headline stories have there been? this is real problems. any time there is an algorithm

it goes well y07bd facebook whether or not you like it or hate it or whatever your opinion is if you want government regulation, it is one thing to say that facebook said they know there's a problem with hate speech and posts. the problem is, what do you do about it and what is okay and what is not okay that's where the real challenge. getting on and saying, we are a metaverse company. >> what does that mean >> part of that is that you

cannot fix this. everyone is trying >> and here is the question. i agree with you i don't know what the perfect solution is. i can say as a parent and somebody who has gone along with this now you are telling me, you knew this. what i'd like to see from facebook the idea that everybody is doing it they are the ones. they are pry or -- prioritized if you say you are doing

something about it, then show us what it is >> you've got to get consistent. don't want to be in position where your publicly facing position is different from a whistleblower. that's whera lose a lot of trust between parents like you and regulators i agree that platforms move and nothing is passed. you want to have a million hearings on section 230? okay there are a few senators out there klobuchar, warner who talk about it nothing is being done. it is not just a facebook issue but i agree facebook is the most

ooerch gregious. >> i think facebook is the scapegoat for what u.s. regulators around the world don't want to deal with. mark zuckerberg raised his hand years ago and said, regulate me. has anyone stopped using instagram, facebook or whatsapp because of this? >> i think there is no massive delete facebook or delete instagram movement this is not a using irissue. in terms of this debate, i don't think that is an amazon.

rich, sara thank you both good to see you. coming up, stock picks for investors looking for a bargain and looking at the latest. stay tuned to cnbc

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futures down 371 on the dow, joining us now stephanie link, chief investment strategist portfolio manager. i'm so happy we get to talk about an oil stock caliber oil services, stephanie. because we have been having this conversation we got all kind of ideas about this i mean, it's $23 you are talking about bargains, it was $70 their business is intact for where it was five years ago. maybe not completely when we had the pandemic but it's almost like the woke

virtue signallers decided through esg that big funds were not going to support the oil industry so they pulled the support from it and hurt all the stocks and the demand and the use and underlying fundamentals have to change we still need the products. >> you just made my case forry like this stock. not only that but slumberger is off 43% year-to-date and trades on a two multiple point discount i think you will seychel spending, because the economy is improving and this is versus down 50% in shale spending last year so these guys are one of the leaders of the industry. they got great technology, great services and increase production and international is 66% of tear total revenues i think that business can double over the next two years. by the way, they have a little

self shep help and margin guidance to increase 400 basis points by 2023 i like this story. by the way, we haven't seen price increases yet. wait until we get that >> steph, just in general, energy stocks, not renewables, but legacy energy stocks, how long do you think have and by that i mean it's gm investor day, they're going to have 30 evs by 3025. is there a way to stay in this, i hate to the say the word space. is there a way to stay in this space and companies that will be supplying the grid for the evs is there some way to do it where you don't get, you know, you don't become obsolete as we transition to wind and solar and everything else some day >> they're not going to be obsolete no way you can have both. absolutely and these companies are focusing on sustainability, too they're focusing on claims energy as well

so i think, look, you know, the demand in the economy is probably going to overtake the ev concerns and so the economy is improving the global economy is going to improve. jet fuel demand is on the rise so there is plenty of places for fossil fuels to exist. i think they can both co-exist with ev. >> there is not many places where the things are going to go okay they don't exist. i worry if there is going to be a wake-up call that hurts a lot of people in parts of the world where they're cold or they're warm or where you don't have a grid supplying the essentials that we've taken for granted for years and years because of these, you know, these moves that aren't that well thought out. you know, we've seen it in gas lines. i haven't been from a gas line there is nothing worse than waiting five hours for a tank of gas or ten hours or a heating bill that you can't afford if

you are an average person in a country around the world you like citigroup, too? >> i like citigroup. it's a laggard it's cheap it's rate sensitive. you got a new ceo who is going to execute way better than the prior management i like hilton because the consumer, the services part of the economy is coming. it's just getting going. consumer has 2 trillion in excess savings these guys are doing a great job in terms of fee increases, margin increases so i like all three of them. >> all right steph, thank you >> thank you when we come back, we will have more big ivdrers behind this morning's sell-off. futures under some pressure. we'll be back with more right after this after this >>

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stock futures pointing to a lower open as energy and inflation worries hit stocks once again energy prices soaring around the world. inaugural gas and coal hitting all-time highs the latest on that move and what it could mean for the economy straight ahead facebook under fire, mark

zuckerberg breaking his silence, responding to accusationss his company responded over everything else. we will speak to arthur brooks about social media the second hour of "squawk box" begins right now. good morning welcome back to "squawk box" here on cnbc i'm joe kernon along with becky quick. andrew is off today. u.s. futures are kited indicatd back down. i think we should, that's about what you'd expect up in the mid-30,000 range here's what's making headlines at this hour crude oil prices are off their highs, not after their highest levels in seven years. opec and its allies decided not

to boost output. oil prices are up more than 50% so far this year but luckily not included in most cpi measures so pitts nothing to be concerned about in terms of your wallet. that's fine. facebook ceo mark zuckerberg is responding to whistleblower frances haugens accusations that the social media giant prior ties over safety, zuckerberg said in his words, it's difficult to see coverage that misrepresents our work and your motives. at the most basic level, i think most of us don't recognize the false picture of the company that's being painted the battle over increasing -- new story, we are done with

that, we will talk about it more we will talk about it with everyone under the sun today they will weigh in i want to see how arthur brooks talks about it, don't you, becky. >> yes >> because he tries to tell us how to be happy and to feel awful about yourself every time you open your computer, it's hard to put those two together but then again, do we want to have someone deciding on censorship and what we're able to see it's really weird the bipartisan comes out at facebook from totally different places >> which is why they will probably never agree on any regulation the two sides, while they want to regulate the company can't see eye-to-eye on how to regulate. >> they can't even agree on why they don't like facebook >> right or an infrastructure bill. anyway, let's get to dom chu she is looking at in the big movers you got plenty to choose from today. >> there the a lot

the reason why, besides the headline with regard to social media and the regulatory environment, with regard to the debt ceiling and getting that whole infrastructure passed in market they are rare here in the last couple of weeks. specifically with regard to the knack, it's an interesting point we're at right now, in a few months, this has been an area of support the lows we saw a couple days ago, roughly 14,181 that was the inter-day low, back two days ago that teams e seems to be an area we found support over the last couple of months so if we do get a few hundred points below this level here we will see if triggers are watching the trend lines we do know that interest rates may be driving a good chunk of the move lower today as they have over courses of this past year as well the 10-year treasury note, right

now 1.55% a. hair below that at the highs of the session, we were maybe a hair above that the reason why that's important is because at that level you are going all the way back to june for the highest levels that we've seen for the longer-term rates, by the way, i don't have the 30-year chart. you can see the same thing with the 30-year long bond. the highest levels since june as well that rising infrastructure picture playing out. from a company-specific point of view, the ones in focus have been the ones at the center of the volatility of late facebook, we'll mention. it's off 1.5% in trading today one of the most volatile stocks with the market volatility has been nvidia. big swings up a lot. down a lot on the semi financial side 1% for j.p. morgan chevron down about 1% of the oil

headlines that joe just brought us on earlier. keep it on those particular names. they could be focal points at the centers in today's trade >> thanks, dom, we'll check in with you a little later. >> the latest read on the mortgage markets hitting the wires, diana olick joins us now with more. i want to see this whether we, oh, okay i love your shots. >> pretty fall, dark >> you are always in that neighborhood, you know what it looks like, halloween is coming up i always say that, go ahead, what's going on? >> all right we're not there, yet, soon, i promise we'll have the backdrop. i will pick it up, a sharp jump in mortgage interest rates is taking a tool. the average rate rose to 3.14% to 3.10. that's conforming loans down that is the highest level since last july. now as a result, we financed a

man in the lowest level, down 10% compared to the previous week the volume was 16% lower than the same week a year ago mortgage apps dropped down 2% for the week 13% lower than a year ago. it was driven by a conventional loan applications. the average loan size is running very high because really the activity is in the higher end and the higher rates are cutting into that. government loans saw a 1% increase in demand they're a much smaller share, rates jumping again yesterday after the services sector came out stronger than expected rates are 25 basis points higher than they were a few weeks ago that's real money on a monthly payment, back to you, guys >> diana, what do you think the real tipping point is going to

be on whether this reverses itself any time soon, talking how hot, residential there is no supply, i guess, but there were also a lot of people fleeing the cities, the vacation spots and outlying areas during the pandemic as we reopened and i don't know, new york is going to have a resurgence, i am sure. everybody is going to come back. will that be it? but there is still not going to be any supply. >> no look there is not a lot of supplies out there. a lot more did come on over the market but it was definitely not enough to meet demand, especially on the low end of the market, which is where the strong demand is. it's coming down to prices we're up 18, 19, 20% year over year in prices it just keeps getting hotter at some point affordability kicks in prices always follows sales by six months sales start to slip. so you should see prices eads up i'm not saying go down the gains will shrink a bit. but right now, it is incredibly overheated when we see mortgage rates rise, like now, that cuts into afford

ability. that's when we see sales pull back and hopefully fries i prices pull back a bit >> a couple weeks, october 31st, coming up. and the movie, becky >> i know, we have already been putting decorations up at our house, very spooky. >> it might be my favorite sit your favorite? >> not my favorite but it's up there. i like christmas better. >> when we come back, the push for boosters and getting kids vaccinated dr. patel will join us next. before the end of the break, though, let's get a check on the markets. as we have been telling you. look out, no here. dow futures indicated down just over 50 point, the nasdaq down by over 200 points. we'll be right back.

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kmpblths welcome back, everybody. the number of covid rapid home testing kits available is growing. there is a new over the counter test from aconlabs approved by the fda this week. that is expected to double rapid home testing capacity over the next several weeks but are these tests reliable and how should you be using them joining us to talk about that is dr. patel, she's a former white house health policy director

doctor, it's always great to see you this morning i think this is a question a lot of people v. you can buy those tests over the counter at places like cvs and walgreens are they effective should i use this test if i feel good sendingpy kids back out there? even if they have symptoms, this is not a big deal? >> yeah, becky, the perfect question to! here's what's important. these are emergency authorizations you have to look for the calculations for which they are authorized it's in symptomatic people where we have a high pre-test probability that they would have covid. so think of this as the test you could use reliably out the door. things that might be allergies are you not sure of the common cold or covid. that's when those high 90s of specificity which means it's pretty darn good at making sure it's positive.

if it's negative, it's negative. that's when the numbers become the most reliable. there are studies to show, not with acon, in particularly, in general, these rapid studies if you can have sequential negative studies three days in a row, for example, without symptoms, that means you are probably negative. but you decide what your symptoms might be before you go out the door >> i just read alum is recalling some over false positive concerns i guess that's better than a false negative what happens here? how likely are these tests to be wrong? >> so this is because in the real world emergency authorization and most of these tests, illume included had high levels f. are you negative, it's truly negative you pointed out. not just illume, the fda has taken away many rapid tests for

similar claims, or when they find out they're not working the way they used to it looks like across the board they can be right about 60-to-75% of the time because we are getting people who aren't using them correctly we have a lot of people using them for symptoms for screening for employer purposes. so this comes back to that ever conundrum. this is one thing that can help us in our toolkit that seems to rain supreme all of these things collectively to give americans a lot more confidence in 2022 >> one of the things i have been using them for is making sure we all take the test before we see my parents especially when they are concerned about immune issues in that setting if nobody has any symptoms, we all get a negative test back and we go. is there a chance one of us could be shedding virus to the

point where it might infect them >> unless there are chances won is not vaccinated, which, of course, if you got children under the age of 12, that's us so, yes, of course, you're vaccinated those negative tests are pretty good at least giving you some confidence that you have to remind patients you can't test your way out of covid. there is that small charges you are raising an important point, not a bad idea to have those tests, use them make your move before you go to see someone who is high rick and certainly testing after because if you can pick it up then, you can warn anybody that you were in contact with >> speaking of, when do you think we will see the vaccinations approved for kid age 5 to 11? >> the fda put down an ad advisor committee meeting. we are awaiting to see a pfizer emergency application. given all this i do have

optimism that we will have action by the fda advisory committee and quickly after that, the cdc advisory committee. hopefully in 25time for spooky governments. immunity after that second shot. so we're talking more around the thanksgiving christmas season especially read that more people are now getting their third shots. 418 americans got a third dose versus 263 getting first doses is that concerning does it mean people probably won't at this point. or does it mean you have done a good job, will you have many more getting the third shot because a lot have gotten the first or second? >> not concerned at all. it doesn't mean we should be patting ourselves on the back. i think we will see another wave as we have vaccine mandates going into effect for employers, federal government contractors in december, for example

that's tense of million% of people like all things, many of us wait until the last minute. if you know you have a deadline and will you return to work in october, november, december, you probably will be pushing it. so i think we'll see some bounce up when kids get approval you will see parents and children getting first time vaccines, most likely. not surprised we will see this rush for boosters. moderna recipients will get more news in the next week. >> coming up, let's see, prices soaring around the world natural gas and coal what are you going to do new highs, oil nearly $80 a barrel we're talking about it in fact, the climate "squawk box" will be right back.

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the hispanic population is clearly a growing force in the u.s. socially, economically. by the numbers, two things stand out by the largest ethnic group, bertha coombs joins us now with more on that, good morning, bertha. >> hey, good morning, joe. one thing is that the hispanic community is on average younger. the other is that they are a growing force in terms of small businesses, really one of the

engines of the u.s. economy, with latinos nearly twice as likely to start their own business than any other group in the u.s. according to a stanford analysis, leading to 34% growth in laity in-owned businesses over the last decade, that compares to 1% for small businesses overall as mostly service businesses, they got hit hard during the pandemic latino business owner activity fell 32% during the 2020 shutdown that compares to about a 22% overall decline. but a usc analysis of census data finds latino business activity rebounded and is now nearly 10% above pre-pandemic levels now, their earnings are down about 25% from the pre pandemic levels according to a new survey, thintech credit. still latino small business profits average 25% higher than non-latino businesses. accessing loans can be a

problem. when you talk about enterprises at a larger scale, latino-owned businesses are 60% less likely than white-owned businesses to be approved for a bank loan according to stanford researchers. so for latinos, when you look at where they get that capital, the top three sources are personal lines of credit and savings. then you look at white-owned businesses who tend to get larger loans from big banks from regional banks and private equity and, in fact, joe, you know, new numbers from crunch nazi shows that latino businesses have gotten 1.7% of venture capital funding so far this year this was about the same as last year when you think of the fact that latinos make up 18%, nearly 19% of the population, less than 2% of funding. that's a real gap. >> problem nose those numbers

the minority businesses, in general, and we've talked, you know, we have john hope brian on all the time a handout versus a hand up i wish the government could figure out ways of providing capital in the old you know fishing rod versus a fish. that's what we should be doing, providing capital, where there is a will to be a success. >> we're also talking bringing more people into the mix when you look at dloeloitte numbers, you look at capital firms the numbers are in the single digits for people of color. when are you not letting people in the door to help them make the decisions. >> right >> this is what happens. >> but you know we do we're hearing j. powell is way too lenient with regulations i don't know if lenders are, too, feed to be even more worried about capital

requirements and that's what we need to worry about. because we absolve. >> the issue here is that you are looking at also, you are not looking at apples and oranges. when all things being equal. these same companies, they are not any riskier. they're just not getting the same access to capital because they're just fought getting those relationships with those regional bankers in some cases, it may be they're not going to them. they feel they're going to be turned down. >> it's an egg thing so you need the people of color at the places making decisions on where the capitalists mark is as well. all right. bertha so something to continue to work on and follow. thank you. still to come this morning, the latest on oil's rally and the best opportunities in the energy sector. arthur brooks gives us his take ey facebook's fallout. th tuned

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in the wake of opec decision, opec-plus decision on monday to stick to its plan and graduate height output oil's rally continued to natural gas also spiking this morning up about 1%, more than 16% in the last week. 16%. joining us now he's watching in the sector, ed morris. ed of global commodities at city ed, it's not just obviously just natural gas. it's like the whole complex that has surprised people in the broader marks and there are implications that are far and wide from what's happening, especially if it's not just something that's just short term >> it's not just far and wide. it's global. it's a coincidence of events to some degree. it's anticipatory to some degree i think we will see things, the kind of softening in the long run. it's where the demand is

here we have some of them at record historical levels it's china's coal is at its lowest it's anticipatory of winter weather, if we have warm weather, we will see a big sell-off we don't already know. as you said, the implications are high for inflation and high in terms of the costs of doing business, particularly bringing energy intensive injuries. we are seeing some closing off, particularly aluminum and copper intensive industries. >> you add in supply chain post-pandemic issues and this at the same time and inflation even transitory inflation will be higher than we thought and maybe not so transitory if what you, you know, depending on what happens as you say with the

winners. the risk is that they're going to be higher than we think. >> that certainly is a risk. if the winter is cooler than normal, then this has implications for the winter of 2022 so, yes, it has implications not just for weather, inflation will be short lived, 4-5% numbers we are seeing in new york because of the increase so far this month. it can be nothing compared to what's going to happen but if mother nature behaves, things can shift rather dramatically by the spring we won't know until we get through the winter. >> we need the think of what that means for various components of the equity market. what does it mean for utilities, for example? >> it depends on what the utility is and regulatory regime utilities are by and large protected. they can pass through in many cases, whatever their costs of power generation might be and then the consumer pays the bill

and that's where there is a danger, particularly in europe ap also if china, where people are already taking to the streets. china is acting as it is to try to grab every barrel of oil, every molecule of natural gas. every kind of coal, because they're worried about domestic unrest countries in europe are worried about people financial to the streets, particularly in countries like france that have elections coming up in the spring so there are political ramifications ahead as well. >> do you think people have a good understanding of where we get all the feed stock for all the chemicals that we use if daily life you think they know? >> they really don't you can see what happened in the uk recently where there was not enough carbon dioxide to kill animals. the solution is to get plants moving up again in order to provide the carbon dioxide i'd say, this is the first

crisis of the energy transition. the hope for getting to renewables we are seeing the failure of renewables and the two rapid retirement of the resiliency needed in the market, namely thermal viral power plants, whether on oishlgs fueled by natural gas or coal. >> we're going to have some green demonstrators outside, but there are consequences to, you know, the path, to good intention on what we're trying to do. if people are cold or if people are waiting if gas lines or if people, all the things we have taken granted for 100 years. the benefits of hydrocarbon, if there is not enough around, people are all of a sudden going to go, wait a minute i didn't sign on for this. >> that's true on the one hand, on the other hand, politicians in certain areas of the world, particularly in europe seem to be thinking the real solution is

to accelerate the renewables what is happening around the world has a significant degree, something to do with too much of a reliance on renewables when you have it around the world. >> capital goes where it's treated best for btus, if something is ten times as expensive, that's money in capital not going into something else, isn't it just to maintain the status quo for where you are in energy usage? >> sure. you have to look at the costs of capital debt, too. they have been subsidizing and the costs of getting it to wind power are fairly attractive. the pou problem is what happens like the last several months in europe when wind stops proceeding >> you tell me what does happen >> we are seeing a reliance on coal and natural gas there are no molecules >> craig, we're back to comb per perfect. that's what i meant, unintended consequences

thanks, ed morse back to coal. >> thanks for having me. >> coal in china, right? if they have any new culprits opened every week in china >> that's true in india, they only have a few days of supply left. >> that won't come over here when we come back, mark zuckerberg rejecting claims thatifiesbook prioritizes profits over safety. we will talk to aei president demurrer us the arthur brooks. he launched a podcast called the launch of happiness, a reminder you can watch us on the go download the cnbc app. we'll be right back. ed using wo. what do you mean? it makes it easier to develop great relationships with our suppliers. now everyone, everywhere loves jerry.

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we see a bright future, still hungry for the ingenuity of those ready for the next challenge. today, we are translating decades of experience into strategies for the road ahead. we are morgan stanley. in our headlines this morning, a ship's anchor is now being seen as the likely cause of 26,000 gallons of crude investigators say a section of the damaged oil pipeline was displaced more than 100 feet along the ocean floor. joe, this is where things get interesting and these shipping concerns, all the delays at the

ports, this could be a part of the problem for this oil spill you know this is the area off of long branch, long beach i should say in california and los angeles. that port where there were more than 60 ships waiting to come in they have been sitting out there for days and days. and an anchor of this size down about 100 feet that would probably not be a pleasure ship that is dropping its line there it's much more likely going to be a cargo ship that's waiting. >> like the last place it's weird, isn't it it's like murphy's law like the last place you need with this situation we find ourselves in with all the ports on both coasts in. and all the congestion how are we not going to help with the bottlenecks and the perfect storm we are see figure prices it is concern, you got the markets. you are probably not surprised why the futures are down today

and when it start, these moves are not huge we are seeing triple digit moves up or down like every day. you wonder which of the waring facts finally wins out. >> you mean at the end of the day? >> yeah. because we're at the beginning of the day we don't know which way it will go by the end of the day by the end of this day or philosophically. oil as we have been talking. i guess, we don't see wti you see sprint at 82 $82, it's up a lot. the ten-year closing in, maybe on 1.6 morris, 1.54, up a little when we return, aei president america's arthur brooks is an expert on happiness. how do you have happiness in social media at the same time? it seems there is a way to do that w pca a newodst weere talking about that and the effects on social media in

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. facebook is under fire over allegations that the tech giant knew instagram is toxic for teens. let's bring in harvard university arthur brooks the pretty emeritus of aei his column for the "atlantic" inspired a new podcast that launched this week called "how to build a happy life. thanks for joining us, arthur.

i understand it's just audio on your podcast have i got that right? >> it's on youtube you can look on all platforms, but i got a favorite for radio, joe. >> i'll point out it's audio i'm slowly move nook the future. so in terms i have not moved into instagram and facebook. so i'm happy i got that going for me, which is nice how do we make what do we do for our kids high school's hard, middle school's hard. peer pressure is hard. all these things are hard when you amplify it and make it totally ubiquitous through social media, what do you expect and is facebook at fault >> this is a social experiment these technologies came on when others do. we do not expect it takes a number of years before people become responsible

with it. there was a time when the telephone looked like a big threat to society and i've looked back at the late 19th century and people are going to stop going out of the house because of the advent of the telephone. it takes time before new technology is used in a responsible way. some talk about regulating like the new tobacco. it has certain properties to be sure it stimulates dopamine in the human brain and makes it hard to control. i don't think that's the right way to do it i think there are a lot of things that have addictive properties good for us, like carbohydrates and social media and screens and devices enhance our lives. we've gone overboard we haven't figured out how to protect our kids yet. >> we go long into a lot of things you know, i wonder about biotech and now look what we are dealing with whether we thought everything out in terms of that so we were head long into this. you know, we haven't thought

about any of the possible downsides to this. sit facebook's fault is the cure or the answer in poor mark zuckerberg and how he manages facebook >> we always want to look at the entrepreneur the founder and say since you didn't see every possible outcome, therefore, your fault i don't think that's right i think the responsible thing is for all of us, including facebook, be looking at ways to counter the overuse, particularly among young people. by the i, what it's not just young people i have colleagues and academia who haven't published a book since 28 because they write 30 twitter messages a day they are eating their seed core and hopelessly addicted. in your business, a journalist who destroyed their ability by saying everything they actually think, partisan things on twitter. so social media has been a scourge for a lot of people. we haven't used it appropriately.

i think facebook and the leadership can get better at figuring out, here's the key, joe, if you want social media to ruin your life, make it a substitute for human relationships and help your life and make you happier it has to compliment your relationships him you find out what your friends are doing. you leave it and done do it more than half an hour a day across all the platforms, until we'll use it responsibly, we have safeguards, it will be a problem. i think the leadership can lead the way and how to make this complimentary technology for our lives as opposed to simply making it a substitute and it results in all these deleterious consequences that we are seeing. >> dream on. you want to make it some type of individual choice. we've got congress to fix this, they're on the case. the rights on the case i don't know what the right wants. i'm trying to think.

i guess they want free speech. the left wants anything they think is misinformation censored by god knows who, by someone who is definitely woke and definitely understands, you know, progressive ideas, they're the ones that ought to be deciding what are you allowed to see. so it's a mess it's a mess. >> it's a mess look, this is the classic case of where when we have a societal problem, technology led us to a problem or any new innovation is having unintended secondary consequence, there is this big debate whether the government wants to solve this problem or primarily rely on individual responsibility i think we haven't started mying about the consequences of doing this at the government level without thinking of individual responsibility look, there is a ton of research out there that shows how we can use social media more responsibly. we need to develop tools to protect our kids from it better to be sure this doesn't require somehow we will break up all big tech, we

treat them like these tobacco companies or that they're gun manufacturers or something it's completely overblown in every single way there is all kind of ways that we can use social media more responsibly we have a column coming up this thursday in the atlantic that talks about research based that everyone of us can cut down our social media by a third, starting immediately. we haven't started scratching the surface, joe, personal responsibility, right? >> personal responsibility what about the idea? it's nice that we think zuckerberg and others could take the leadership position and kind of show us the right way to use some of these things but i think the charges this week and some of the data that's been released suggests that not only does facebook know that it's having a very deleterious effect on teen girls, that maybe it's even doing things with its algorithms to make it more harmful. i think that's the question. the company says they're not doing that show us, explain that to us. we've seen the documentation

that seems to link that. >> yeah. >> show us how you are not setting algorithms that make us feel worse and worse by the way, you are right, when it comes to adults, absolutely, self control when it comes to kid, is it just the parents' responsibility? or is there some responsible on the company that is going after it and targeting these kids, too flu is make a good point, charges that have come to light, social media platforms are targeting kid. what they're doing is trying to target the neurochemistry according to these charges, that has to have a full airing. that is an external consequence, something that's bad it becomes the responsibility of these platforms to show that isn't true if it was, to show how they're going to fix that, how they're going to make sure it doesn't happen anymore it becomes the responsibility. that's the basics of making sure companies aren't hurting us by doing something incredibly irresponsible. so i'm really glad this is coming to light this week. if i were an executive at one of

the social media platforms, i'd be really grateful fithink we're not doing that because it gives me an opportunity to actually make my case f. they are doing that, that's an opportunity for them to stop and fix it and talk about how they're going to help parents protect kids >> all right if you want to talk about facebook but how about your progress that you are making do you remember president biden discuss a nice speech, an inauguration speech, linking us altogether and everything. how is that working you think? are we coming along? that's what you have been trying to do too. who do i give credit to for this big place we are in right now? you or the president >> joe, i suppose i, once again, my message of love and reconciliation it hasn't exactly broken through yet, has it we ultimately we have to keep trying look, we're in this. we continue to be in this moment of polarization, where 93% of

americans hate how divide we've become and 7% who don't hate it are driving the bus politically. polarization gets collision, votes, followers and money, quite frankly. and so the key message we have to bring along because one of the things we find is when the united states gets out of that sort of contempt more rate polarization hate, which happens many times in history, people fight back, we're the 93% to be perfectly populous about it. that's the populism we need, turning off the media polarizing us not voting for politician,that means you and me and all of us who want us to work together it doesn't mean we have to agree, by the way. i have strong opinions, but we actually have to make sure we are getting our voice heard. we're making this case we have to make it again and again until it becomes sticky. it's been tricky i have to say, it's discouraging

to you and to me, too. that doesn't mean we have to stop you believe in love. you have to talk about it over and over and over again. i am convinced that americans will listen and we can make progress >> i think i know exactly who to blame. unfortunately, the people that i want to blame think they know exactly. >> yeah. that's the thing scientists talk about that a lot i 4r06d and you hate and that's where we have this attractable conflict the only way we can break through is when somebody finds an entrepreneurial activity, actually, we don't hate each other. i believe you love our company we will look for common ground in all of this mess. that can happen. that was reagan, joe >> just nod when you say his name so, september 11th, we all came together, post-pandemic has made things 100 times worse what itself the difference social media why are we in this different

sociological place do you have an answer for that >> we had a unifying president on 9/11 who said this is an opportunity this tragedy actually an opportunity to bring the country together we had political party leadership, including the president of the united states and the coronavirus pandemic dead set to actually use the coronavirus epidemic for their own power. for their own privilege and it was the result of that item lip, we became more divided this was a classic question of poor leadership in our great moment of need on both the democrat and republican sides. >> how are we doing now? >> it's not going well i have to say. but every day is a new opportunity. this is america. the beautiful thing about it is that when you live in france, every day is just like the last couple of days here in america, it's a new beginning every single day this is the most entrepreneurial company politically in the world. each one of us watching this can say today is the they we start to work towards greater reconciliation

we try to unify the country around our common needs and the struggles we are having together >> oh. okay arthur, you are indominable. i can't hold you down. you always seem to come back to positive things. i feel a little more better. >> it's a good thing, though, joe. look, are you my favorite. this is my favorite show this is a great audience everybody listening to us has leadership capacity and entrepreneurial leadership starts with each one of us we can bong out if we want or choose to look at each day as a new day. the "squawk box" audience is the audience that's really going to turn this country around starting with a little leadership each one of us has around us so let's do that, starting with i don't know, 7:56 right now on a wednesday. >> fine. i will let's do it then fine, let's try. try. i'll try you know i get up at 3:30. so i start out you know a little

bit tired and i read the news and i'm totally tired. anyway, thanks, arthur >> e good to have you on more on the facebook fallout we speak to the president of the legal defense fund, e are rrilyn eiffel. he's still happy despite your best efforts to bring him down we try senator chris coons is going to join us to talk about the latest out of washington, d.c. on the debt fight. we are looking at the jobs report the adp payroll report check out our podcast "squawk" pod. it's available every day, you can listen to podcasts "squawk box" will be right back. "squawk box" will be right back.

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. good morning wall street's roller coastal week actually it's been a few of them right? monday was down. friday it was up yesterday was up today we're down dow futures are lower, thinning back everything we got yesterday and then some. why rising yields weighing on

tech shields we got eliminating the philly bust ever talked ability the nuclear option is changing it slightly. more on the dirty bomb if it's not a nuclear option president biden says it's possible democrats can do a carveout for the debt ceiling and bypass the republican blockade we will take to a close to friend of the president. delaware senator chris coons and the facebook whistle blower says the social media network needs to change. mark zuckerberg says his company cares about safety so where do we go from here? the president of the naacp educational front will join us to figure that out as the final hour of "squawk box" begins right now.

good morning welcome back to "squawk box" here on cnbc i'm beck question quick along with andrew concern on andrew is out today. as joe mentioned, this is one to watch. things are happening with the markets. you can see it right there stock indicated down more than 300 points 310 right now. s&p futures down by about 47 and the nasdaq down by about 176 so you are talking about declines of over 1%. 1.2% for the nasdaq. 1.1% for the s&p just under 1% for the dow. these are back and forth numbers. if you add it up, there is more down days tan up so you are seeing the trend start to drag things down from the all-time highs we have been sitting at a couple months if you have a view, you see that same story continues, yelleds are picking up 1.54% as that year picked up, that did start to put pressure, especially on technology stocks.

we've watched that play out throughout the morning. >> it's 90 minutes to the opening bell on wall street. dom chu will join us he will look at it this morning, pre-market boomers the big ones, dom. >> so joe, becky, i was looking to your opening for this hour about all of the headlines happening. we do have a lot of movers because of those particular headlines. we'll start off, though, with an an lest downgrade. the analysts have taken a constructive view in the airline industry and downgraded two stocks in platform jet blue from a buy to a hold. and jet blue up about 2.5% in the pre-market trade 3.35% declines for american airlines they talk about some of the ability for both of these carriers who are now partners by the way and they may be more vulnerable for pricing precious going forward. so some moves hitting the airlines natural gas, becky was talking about the volatility in the marketplace. it's been volatile intraday.

check out natural gas prices at one point today, we did get to the highest levels here since february of 2014 but as you can see here from those highs to where we are now, we've dropped roughly 7% just on an intra-day basis so interesting moves here with natural gas. we know over the course of this year-to-day period, the prices have surged for natural gas. some of those idiosyncratic issues with supply, demand is well playing in. natural gas is one to focus on here some of the most popular ticker surges on cnbc.com from the full session on tuesday if you look at those particular moves, i will point out that the biggest, again the biggest most searched ticker was the ten-year treasury note yield. but some of the stocks, specific ones on the top ten, facebook on the headlines and the testimony yesterday before congress, facebook down 1%

apple shares down 1% tesla has held up relatively well for that megacap technology-type trade off 1% amazon and wti crude up 1% it cracks the top 10 there is a lot more interest in that energy trade right now. certainly in interest rapt for those interest rates and more on what's driving that. let's head over to ylan mui on what's going on with the debt ceiling debate and other headlines. over to you. >> thank you democrats are now talking about going nuclear on the debt. president biden saying last night that getting rid of the filibuster that lifts the debt ceilingis a worse possibility. democrats discussed this option during their caucus lunch yesterday. now, this would be a dramatic change in the way that congress works. only a simple majority would be needed to advance legislation, instead of 60 votes. it can open the door or getting rid of it altogether so far, moderate democrats, joe manchin and kirsten cinema have been againstthis the senate is deadlocked

the treasury is projected to exhaust its extraordinary measures october 18th. today the bipartisan policy center narrowed its window for when the government would default fault between october 19th and november secretary. for now, moodies is still maintaining its stable outlook for u.s. debt and anticipating treasury would prioritize interest payments even if the debt limit were breached it is not clear if treasury has that authority or it's possible back over to you >> the clock is ticking. so joining us to talk more about the ongoing debt ceiling fight is senator chris coons senator, these talks are reaching their pace. like i said, the clock is ticking. what happens next? >> well, becky, later today, we'll all go to the floor and vote on whether or not we can proceed to have all 50 democrats vote to suspend the debt ceiling, pay the debts that we accumulated under president trump to deal with the covid

pandemic and move forward and we'll see whether or not republicans will, once again, block us from proceeding to that vote dozens and dozens of times, over recent decade, republicans and democrats have worked out an arrangement, an understanding where the majority provides the votes to lift or seal the dead vooel ceiling. in this instance, majority leader mcconnell is playing a dangerous game in filibustering. weeks ago, he was insisting all 50 democrats raise the debt ceiling. we're willing to do that he is blocking us from doing that we run out of time in two weeks or less. the markets are already getting anxious and jittery and if we were to default, becky, that would have an immediate impact or every american who pays interest treasury secretary janet yellen just testified to congress, it would throw us into a recession. stop our recovery from the pandemic and cause unnecessary harm all across the united

states and to our global reputation. >> mitch mcconnell wrote a letter directly to president biden pointing out that this is his party's opportunity to do something. you all have the votes he says, just use reconciliation and he threw some words at the president he used when a senator saying you opposed this when you were in the minority that we are only taking your position that you have used in the past right now how do you resoreconcile that >> here's what's not true about that statement yes in 2006 then senator biden voted against raising the debt ceiling but it is not true that the majority prevented that from going forward, in other words, excuse me, the minority. in other words, democrats didn't filibuster moving ahead with the debt ceiling they allowed a majority to come together on a bipartisan basis and raise the debt ceiling in this instance, what is blocking us from moving forward is mitch mcconnell's needless

use of the filibuster that 60-vote limit. he and his caucus come together today and say democrats, you go ahead, pay the bills that were accumulated under president trump, which is what this exercise would do, and move forward. we could resolve this, this afternoon. >> maybe what you are saying about the past isn't true but what is true, senator, is that the democrats are k do the, themselves in the "wall street journal" today, they says, democrats just got, accept it mcconnell is not going to do it. you know you are not going to get those republicans. we will go through the charade again of not getting 60. will you blame republicans can you can do it now you got the house. pass it in the house 50 senators, it's done if you don't do it, it's on democrats. >> joe, here's the challenge with that scenario, adding it to

reconciliation isn't simple and it 16 quick. it's not adding one aechltd it could take weeks to do we would have to go through a pain process, joe, called voter-rama that would keep us here all night to vote dozens and dozens of times on amendments we have run out of time for that maneuver and that's not how this is going to get resolved, joe >> done you think that's going to be in the end what happens? so you think it's preferable >> no. >> for a filibuster, you think it's prefrable to go to the nuclear option instead of a reconciliation, you can get that done >> reconciliation would be long, complex and uncertain and accomplish mcconnell's political objective which is to dramatically slow down and weaken our effort to pass president biden's build back better agenda designed to reduce costs for working people, the costs of healthcare, child care and elder care to make our

country more competitive and to get more folks back to work. those are positive objectives. if we take weeks to go through the complex reconciliation complex, we won't be moving that agenda forward frankly, that is senatoring in connell's objective here i have been teching the and calling my moderate republican friends to try and find a path forward, where we can all come to agreement as has happened in the past. democrats can cast a tough vote but one tough vote then we can all move forward. >> senator, are you willing to do this horrible, complicated, terrible reconciliation process for a 3.5 trillion boondoggle that probably half the country at least is raising an eyebrow for, but you can't use it to raise the debt ceiling you are able to do it for you know a few extra -- in the house and a divided senate, you think this is the time to pass every

democratic wicsh list from the past 50 years. >> this isn't a democratic wish list from the past 50 years. >> there's more? >> president biden made clear yesterday the agenda that will ultimately pass will be a narrower range and price tag will not be 3.5 trillion we've made progress in that regard and we already went through the painful, awful process of reconciliation back in august. it takes weeks and so to start from scratch and do the whole reconciliation process again would exactly slow us down and prevent this from making progress on the infrastructure bill which i think is critically important to get out of the house and for the president's desk and the build back better agenda, which i this i is critical for getting americans back to work and making our country and economy both more competitive around more fair

there is a simple path here. we simply need republicans to step aside and let democrats provide the 50 votes to deal with the debt ceiling and more forward. >> senator, are you asking for their cooperation in terms of stepping out of the way, allowing you to do this and slow down the rest of what you'd like to pass. but i think a lot of people were kind of surprised when president biden said the bipartisan infrastructure bill was fought going to be voted on until the other part of the agenda gets settled and it moves its way through. i've heard complaints from republicans, moderate republicans who signed on to that bipartisan infrastructure bill who feel they are getting played at this point it's hard when neither side seems to really stick with the plans they have said it doesn't feel they are pulling some sort of trickery out. ah, tricked you. same with all of these things. they're all political moves to try to push an agenda forward or stop that agenda. >> reporter: well, becky, i was

here in 2017 when the tax cut and jobs cut got passed. the nearly 2 million tax cut package passed onto the trump administration, three times, democrats worked with republicans to make sure we didn't breach the debt ceiling the debt ceiling was suspended even though we were upset but none of our provisions were considered or included in that tax provision that was entirely passed with republican votes, no democratic votes we're in a similar setting now and it is no surprise, to anyone, who has been serving here in recent months that the bipartisan infrastructure plan was something we called owl work to come to agreement on and the bolder, broader, build back better plan is something that only democrats support >> right but to link one to the other >> a to discuss this with republicans in the senate for months >> but to link one to the other. i think that's where the moderate republicans who signed on and the moderate democrats in the house who have signed on, feel like they got a bill bait

and switch situation >> well, becky the record here is that for months, we have been saying, what we can agree on in a bipartisan way out of president biden's agenda is so-called hard infrastructure. and two dozen of us labored for months to get that bipartisan bill done. it was always clear that president biden also had a second agenda. this build back better plan to reduce costs for families. costs of healthcare, day care, elder care, to make college more accessible and affordable. to deal with climate change. we knew the odds that passing with republican votes were zero. i don't think this is a last minute bait and switch i think we need to bear down, get both of these bills moving to the president's desk to joe's point, the build back better agenda will be trimmed in costs and scope. at the end of the day, the bold investments we'll be making in making the lives of working

families easier, getting people back to work and dealing with climate change will be on the agenda in the mid-terms, the american people can judge whether we made a good investment in our time. >> okay. as i recall. we have to go, thank you for your time. we got some data. >> it is time, thanks, snowstorm. it's time nor the september adp private payroll report steve leishman has the numbers hey, steve >> good morning, joe, yeah, 568,000 adp saying the private sector grew by 568,000 in september. they revised down august to 350,000 from 274,000 taking a look at the numbers you see the estimate there 425 so a bit stronger than expectations the good sector doing quite well up 102,000 pig number for them. the service sector is doing better 456,000. there is the non-payroll estimate for this friday, that's government and private sector. so really the adp is in line in

that area. looking at it by business size, 53,000 for small busy. and large businesses hiring quite a few, 390,000 maybe that's connected with reopening and people returning to offices it's unclear why such a big number there by sector, you see the leisure and hospitality sector doing quite well that's the kind of numbers we feed from that sector to get back those jobs we lost from the pandemic education home services doing well that was a big disappointment. professional business services, transportation and trade also doing quite well the manufacturing number stands out at 49,000. joe, for the past several months, i've stood here hon this report and saying there is other data out there saying the street consensus has this wrong if you remember the report i did yesterday, put that together with this report it looks like there is not at least a big signal out there that the street is wrong, this 500,000 number looks good.

i don't have a big contingent of people way higher or way lower it seems more or less in line. who knows, maybe we're finally, after i don't know how many months it is, learning to predict pay roms in this post-pandemic era here we'll see on friday whether that number is in and around plus or minus 100,000 would be a big win for the forecasters. >> other stuff in there is excited, too, i know you are excited about. of course, you get excited we could eventually be under 5%. that's a miracle, given what we went through on the red. it won't happen much quicker than we thought and wage gains we won, we will definitely play into the inflation narrative and how those come out do people -- >> joe. >> i still hear people say, you know, we can't open those tables over there we don't have anyone to bust the table. i'm still hearing that, you know, they have to pay more to

bring people in. >> well, awent to the dentist yesterday. i am smiling more now because i got my teeth cleaned finally he says he's finally, no, i didn't do any, joe unfortun unfortunately. he said she finally finding a little bit easier to get work since the schools are reopening. that's a big part of it. one more thing is that this number, the up and high on the adp is good. i don't know if you've seen these growth numbers have been coming down for the third quarter. it's good to get good news for the markets here >> all right thanks, steve. coming up, vanguard, the cio greg davis joins us on this week's market moves. stay tuned e. gold.

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all you have to do is schedule delivery. go to capsule.com to get started in 15 seconds today. it's catastrophic to not pay the government's bills >> the question i've asked repeatedly, okay when you have research that says your product is designed to hurt teenage girls. what did you change? >> if you think about the last 18 months, the only thing that really worked during lockdowns was technology >> facebook whistlele blower frances haugen urging congress to regulate the social giant late yesterday mark zuckerberg responded to her testimony

julia boorstin joins us with more >> good morning, mark zuckerberg breaking his silence and rep sponding to frances haugen he posted he rejected claims that facebook prioritizes profits over user safety saying many of the claims don't make any sense if we wanted to ignore research, why would we create an industry of leading research program to understand these important issues in the first place, also saying the argument that we deliberately pushed content and make people angry for profit is deeply ill logical we make money from ads, advertisers consistently tell us they don't want teheir ads next to harmful content and defended instagram saying reality is young people use technology and tech companies should build experiences to meet their needs while the keeping them safe this all comes in the wake of haugen urging congress to take action

hauging saying facebook put forth a false choice of profitability versus safety. >> the thing i am asking for is a move from short-termism, which is what facebook has run under today is led by metrics, not led by people and that with appropriate oversight if some of these constraints, it's possible facebook can be a much more profitable company five or ten years down the road. it's not as toxic. not as many people quit it. >> haugen noted she had no direct reports and never attended what they called a decision-point meeting with c-level executives saying, quote, we don't agree with her characterization of the many issues she testified about despite all of this, it's time to create standard rules for the internet so now of course the question becomes, what do those rules look like and whether and how much they could impact facebook's profitability, guys

>> i'm just phosphated i am sure you are, too, there is an algorithm like the menial go rhythm like there is something in numbers that can skew it to the really mean side of things that they decide, well, we get more engagement it's like click data i think people in media know how to write a headline that may not describe the actual interview at all to get people to click on. is that what it's like in this case, it has effects on some people? >> yeah, they probably don't call it the menial go rhythm what frances laid out is this idea that people are more likely to engage with content to click on content to share content of course, this sharing is essential here it makes them upset or even if the headline makes them angry. but so the idea is that if it's something that's emotional are you more likely to engage with it. what facebook said is why would we like to have angry content on

our platform if it makes people upset they're more likely to share it. it becomes engaging. it becomes a viral circle. so two different ways of looking at this, joe, i'm sure more will come out about the algorithm in time what was interesting, haugen said all the content on her news feed should be delivered in a reverse chronological order, so you know exactly what be was posted when as opposed to being, you know, sort of factoring in all these different ways that people are sharing and responding to the content. i guess they don't call it the menial go rhythm >> i know. it's funny you can, i understand i see what you are saying, i'm familiar with click bait i see it on twitter every day, what i look at the article, that is not even close it sucked me n. i am looking at it oh, another thing. we have a guy on at the bottom

that has this star now looks like this. and you got to go through 50 people to get to the star. it looks difficult it's a lot of click bait it's our world, maybe there is a problem. thank you, though. have you done that >> i've gone sucked in >> you have, right >> then you realize you are the sucker for getting sucked if and you are mad. >> you try to go to the next one, you hit the wrong thing. >> julia is right, is simpler seclusion to have chronological order. that drives me nut in my feed then and again anyway, this is an issue a lot of people are in deep destruction discussions now. our next guest, sherrilyn eiffel her organization and civil rights groups have been criticizing facebook for not

reigning in hate speech. she's met with zuckerberg last year chairman, welcome. it's good to see you >> thanks so much, i'm glad to be here. >> so what did you think of these latest revelations >> i didn't find them surprising at all you know, i have been in a number of conversations over a number of years with the leadership at facebook about as you say misinformation, voter suppression. hate speech, this is a very serious matter it isn't just about widening up in the spiral of articles about what a celebrity looks like. it is actually act the safety and security of members of our society. it's about people's ability to get good information about voting it's really about our democracy, itself and i this i this is a very serious matter and i do think it's time for there to be a framework of

regulation for facebook and for other gains, internet companies. >> facebook said, look, we don't do this for profit we are giving people what they want to see. the am go rhythm simply tells us what gets the most likes what do you say in response? >> yeah. you have more responsibility to as a citizen and as a beings leader to democracy than that. you know, a newspaper is bound by certain rules and laws that don't allow it to print anything they have to, the information they print has to be fact chum the same thing happens on television it's not simply because people want it that you get to introduce it and we're talking about something that travels at the speed of light to billions around the world we know what happened in myanmar. we know what happened in india we know what's happened here in this country we remember the kenosha shooting last the year.

a 15-year-old boy transportedpy his mother with an ar-15 to meet up with militia members. the kenosha guard, should not be allowed on facebook by facebook's own standards, posted something called a call to arms, encouraging people to come to minnesota and facebook's own community standards actually bars the posting of information that constitutes a call to arms, that asks people to take up arms and meet somewhere for the purpose of intimidation or threats and yet that flier stayed up and did not come down until two days after the kenosha shooting mark zuckerberg was asked about it he spoke in a meeting transcribed andrie leased and he said that was an operational mistake. so that's their own standards who is minding the store at the end of the day, two people are dead a. 15-year-old boy has committed a homicide, a double homicide and our country is further driven apart.

it's time for congress to step in congress took the original idea that you couldn't regulate these companies because it would inhibit their innovation but i'm old enough to remember when car companies said that about seatbelts. i can remember that my father did not want to bear seatbelts and after he got a few tickets, he learned he had to click it or get a ticket so, we do things all the time for the safety of our country and this is one of those circumstances in which this incredibly potent platform need some framework in which it can work in order to protect our society. i'm not trying to end facebook actually black people disproportionately use facebook. churches love facebook, family reunions are organized on facebook it's not just the about the connectivity it is about having a responsibility as a business and a company of tremendous reach and influence to ensure that it protects the public. >> mark zuckerberg and facebook

say they welcome some sort of rule-setting by congress, letting congress be the ones who step in and decide these things. if you look at it, this is a bipartisan issue everybody's mad at social media, on both sides of the aisle, however, they're mad for different reasons. it makes me pretty skeptical that anything will get passed that kind of lays the rules for the road there >> well, first of all, i should say it's been quite a market evolution for facebook to come to the place of being desire use of some rules. in fact, the position had always been they did not want to be regulated. that was kind of the red line. and i do believe these conversations and what has occurred, the, you know, the consequences of this laissez-faire attitude toward facebook has perhaps driven them to believethat they, themselves, would be better protected by some kind of regulation but you raised the issue we are

now confronting which is we are in a deep political division we are unfortunately in a period where many people want to exploit the you know the collision of facebook that encourage people to feel hate towards other people there are people who actually use this as a model for political advancement and so that will make this difficult to come up with a means of regulating of online platforms that makes it not like the seatbelt there used to be a time when protecting the american public and protecting our political system and the integrity of our system and standing up against hate speech and violence was a bipartisan issue and i often worked, you know, all across the aisle on those kind of issues. that is not what we are faced with, unfortunately, today it is really, that is not the fault necessarily of mark zuckerberg that is the fault of our

political leaders. those who have staked out positions that are antithetical to the core values of our democracy. but that makes it even more urgent for this to happen. because there are people who will deliberately exploit the use of these platforms, the way in which the human mind works. we understand the psychology of why people are attracted to this incendiary material and who like the fact that there is opportunity for disinformation, for discord and to arouse the passions of members of the eing will te-- electorate. that's why we have to take seriously american business to take seriously the obligation of protecting american democracy. they, too, have responsibilities as citizens. it's not just about casting a ballot or helping political candidates but ensuring the framework s strong >> the point has been made people aren't canceling their

accounts as a result, advertisers aren't stopping spending money there. as long as that's the case, it's hard to imagine that things thang organically. >> that's why i call it laissez-faire to the extent that beer decidingthat advertisers should drive whether or not, you know, content on platforms that beech reach millions of americans encourage violence or encourage hate grooims crimes. you know, to me is an about indication of responsibility of leadership we have all kind of rules in the society that mate not result in the most profitable outcome. we impose those for the safety and protection of our soviet foreign ministry i return again to seatbelts we have a consumer product safety commission where toys for children have to be approved so that they don't harm children. yet facebook, itself, gets to decide whether it will launch instagram kids targeted at

children with no regulation around it. we have the obligation to protect our children and we can protect our children, regardless of what tidesers want and harms of what facebook wants the question is, is facebook in the best position to determine whether or how something will be targeted at children probably not they a business. their profit margin is what comes first. but it is the responsibility of citizens and political leadership to make sure wthat w protect american children and there ought to be regulations from children being lured into a lifetime of this engagement with a platform that has been demonstrated to actually introduce harm to young people who use it >> thank you for your time today. >> thank you so much. >> do we have much more on the marks snap we will ask the vanguard chief investment officer greg davis

we'll check out the price of natural gas gained more than 9% yesterday. the highest settled if 13 years. stay tuned the you are watching "squawk box" on cnbc cnbc at vanguard, you're more than just an investor, you're an owner

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this is ashley. she's a posh virtual receptionist. she'll make sure you never miss a call or an opportunity to grow your business. you can't be in two places at once, let posh answer. posh virtual receptionists. >> let's get down to the fork stock exchange, check in with jim cramer here we go

another day, a another big move into futures this morning. things seem a little unsettled lately maybe a little more volatility >> yes, i think it's ridiculous to leave here at 4:00. the futures are fine then you wake up at 4:00 and the futures are bad. we're trading off of europe, which has a problem with natural gas. meanwhile, we have no problem with natural gas this is the kind of market that is dictated by be futures traders. we're trying to anticipate and trade with volatility every day. i think people stick with really good stocks, we will be fine that is trying to find a bottom. it's going to take a little while. it's also absurd so i want people to understand, nothing really happened, other than the taiwan airspace and natural gas and europe and this should not cause this kind of climb. >> we are looking at the euro earlier as the ten year creeped up over 1.55%. that didn't seem to future

additional pressure on tech stocks, too. i realize these are fought long-term stuff. these are short-term issues. but it adds to the sense of the feeling maybe this is a momentum change >> i look listening to a guest on brian's show. he was talking how we are now in the re-inflation trade i think that's a dangerous presumption. what happens is the companies in the fang unit basically are about trying to keep inflation down thand don't have the raw costs and the problems with production which you place in this country, it's shortages, and i'd worry about housing, but i don't worry about salesforce. >> right right. i go es the question becomes, so you are here of the opinion that if are you looking at longer-term stuff, none of those yield issues should pay attention to technology stocks, maybe that's where the growth continues to be? >> yes, that's where you -- yeah, the idea that you buy them when the economy is slowing, which some people think will happen because of higher rates,

you buy them and automate and keep down your costs that is another reason to own them that's a work day. and people quickly try to distance themselves from high growth and this has never worked, becky, as long as we have been in high growth works when you have these dips, that's what you buy it's not an overall gap in the market. >> right >> it's you go and buy the stocks they have made it so they're not impacting by inflation shortages. it's very difficult. we had dow chemical on trying to figure out how much is shortage consolation. how much is shortage it's shortage. it's not inflation shortages are everywhere. >> i think what's so crazy is, our supply chain was so much more delicate than we had any idea once it broke, it's not coming back these fixes that are you talking about a r aer 82, a year first half out, somebody was pointing out part of the reason you can't pump more natural gas is you can't get to the pipelines, there is a shortage of that.

>> remember the northeast is blocking a lot of pipe lines, the rest of the company is bitter about it. >> pipes, in particular. >> i do feel that what matters to me is that, when you look at, say, housing, they can't meet the demand. >> right. >> and that does make it so that well, that's a part of the economy. it's not going to do as well what is going down retail is going down, i don't get that at all. i like technology here i do think if you go and start buying material stocks, that's the latest in the game they already had the run ooip i'm more skeptical about the skeptics let's bring in greg davis, chief investment officer at vanguard we got an adp report that's pretty strong. greg, you oversea 7.5 trillion in assets. how about the energy complex today? add in the adp report and are we getting concerned that the things are getting hot and maybe

that fund managers need to take a hard look at inflation >> look, inflation, we've definitely seen a rise in inflation in 2021. we do expect as we get through the remainder of this year and start going into 2022, we do expect to see leveling off. fo the remainder of this year, probably the first half of next year. >> do you expect -- i know that a lot of the notes that we have on your thoughts were before that adp report, but that was pretty good. what are you expecting tomorrow in terms of wage gains and whether this looks like another data point that the fed is -- sooner rather than later is that going to happen tomorrow >> it will be dependent on you how strong that data is. i think they'll be very thoughtful to say, hey, it's the start of a trend

they've already said taper will begin the end of this year and last through the mid part of next year. the market is anticipating that, but it will be driven by if the strength of the data continues, that's pretty much priced into the marketplace at this point in time. >> do you see yourself adjusting your sectors, rotating into something, out of something else is energy attractive now is tech problematic, given the ten year and the move higher >> one of the things we always say for investors, they should be globally diversified. you know, we have run a very large franchise here we own every publicly traded security around the world. so we tend try to not to pick winners and losers we try to remind other investors to be global le diversified, but if you look back at what's

happening over the last decade or so,growth is greatly outperformed if you look at the impact of growth, it's been 6% in returns in a growth sector, 6% higher than what you saw in value the question is, can that type of trend continue? we think it's very difficult, but what we say to investors, look, the u.s. markets have had a strong run, and benefit from the fact there are going to be differences in terms of returns, because economies are growing at different rates. so, again, it's important to try to have a highly diversified portfolio, and not try to pick individual sectors >> in terms of just cash or cash equivalent, let's say you became convinced that we were in for, not even just domestically, but

in for a pullback in global markets. where would you go as a cash equivalent is it time for fixed income to take a look at that? is there anywhere to hide, greg? >> it's really difficult, joe. that's a great question. if you look at where yields are whether or not you're looking at corporate bonds, mortgages, everything is trading at unbelievably tight levels. you have to make sure you're fully invested, and there's a lot of news that's out there, and there's a big issue outstanding with the debt ceiling, right which will generate a significant amount of uncertainty and potentially greater volatility we always say stay focused on the long-term goal, whether it's saving for retirement or kids' college education, and it's just

noise, you don't want to make shifts based on short-term markets. >> you wouldn't do any on lessening exposure >> if you look at our active fixed-income business, joe, we've been reducing risk because of valuations, looking for an opportunity if things were to cheapen up because of the disruption, due to the debt ceiling issues, we would look to re-deploy some of that dry powder, and put it back in some of the credit markets, mortgage sectors, thick like thatten, but they're in the bottom decile. again, this is for our -- for long-term investors, it's

difficult to time that >> philosophically, greg, do you have an answer to me why the dollar seems to be just, you know, just not lieuing at any of these things, looking askance at any of it, just hitting new highs? you have inflation, you've got the debt ceiling overall, it's a positive we hate a dollar crisis, but can you explain it >> it's an industry question it's difficult to explain the day-to-day movements and the currency the lull the u.s. is stilled viewed as the strongest economy in the world, with the strongest capital markets. so, you know, to the extent the dollar continues to stay strong, it's not a big surprise, just given the stability we have in our marketplace, the stability in our government, things of that nature. could that be, you know, challenged over time

absolutely if we don't raise the debt ceiling, and we have a default with the dollar and with the tre treasury, that would be a big, big issue for the markets. it would be irresponsible for us not to pay our debts so, again, if you want to see a way for the dollar to appreciate in value, you're having an issue potentially with the debt ceiling and not being resolved that's a catholic that cause that is to occur. >> before i go, how has the vanguard crypto index been doing? has that been hitting new highs? do you have one of those >> we do not, joe. we have no plans of doing anything in the -- we use the blockchain technology, but you will not see vanguard offering any crypto index greg, thanks great having you here. >> thanks. "squawk box" will be right back sell.

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you can see almost 300 points downward. it came back after a pretty good adp number on friday we'll get a more

telling number the ten-year has been something to talk about in recent sessions, along with oil becky, i don't -- you yankees fan? >> no. >> it didn't quite work out. >> not this time. tonight, cardinals/dodgers, who do i pick? >> you're going to pick the cardinals, right >> cardinals. make sure you join us tomorrow "squawk on the street" is next good wednesday morning i'm carl quintanilla, with jim cramer david faber is at the active/packetive investor summit in new york city the premarket is red, but off the lows putin says russia is ready to help stabilize the market for nat gas.