behaving you know, if the lo gist six problems that frank was talking about aren't transitory, why isn't inflation going to be transitory >> i think that's why the fed is changing their tune. i do think that's why they're backing away from it. becky, see you tomorrow. >> bye-bye. it's time now for "squawk on the street." good thursday morning. welcome to "squawk on the street." further gains at the open as the market looks for progress on the debt limit extension, oil and nat gas add to yesterday's losses jobless claims fall to the second lowest since the pandemic we are set for a sharp rally, oil and nat gas continue their

pullback. plus crisis averted, raising the debt limit to december facebook now reportedly delaying launch of new products to focus on improving its reputation for the moment let's talk about the reversal if we open at these levels, you would be looking at a 2% gain for the month. energy got high, and then it got too high, and the rescissions of -- the idea that nat gas was going to go to nine. europe was going to get felled by nat gas prices. david, the whole scenario ends when our government says, maybe weep open the spr. >> there were clearly margin

calls on the uk natural gas move that happened on monday. >> we have to get away from just that energy is in charge there are many things happening. yesterday there was a delayed reaction to pepsico. pepsi announced a very good quarter in terms of revenues, but people are talking about raw costs going up next thing you know, people decide what the hell, let's just buy the ones that are good if everybody has raw costs that are bad, let's find something good, that's a new new narrative. i have constellation brands on, and they were saying, maybe it goes up. >> we saw it through the lens of pepsi, and then constellation, and then levi. take a listen. >> cotton specifically, we don't buy cotton we buy finished product from mills. we negotiate with them in

advance. so our pricing is locked in through the first half of next year already so our cost top goods are already locked in. we're in the midst of negotiating for the second half. i'm bullish we'll about be able to land that, kind of in the mid single digits. it turns out to be higher than that, we may need to taymor pricing, and we're confidence we'll be able to do that >> is this take shapes >> levi able to take price, what it does mean is that you can raise your price and the consumer is not going to object. a lot of that is the consumer is flush.

i'm not saying people don't have to work, but people are feeling pretty good. usually the approve ratings of the president usually coincide with a decline people may be feeling good but they're also paying more for things. >> but people have more money, and they need it again, i come back to the idea that powell will be proven right on some of these things. you and i were having this conferring nine months ago, except for lumber. >> we always have lumber >> that was called a blowoff top.

i don't have any idea. >> our aluminum. >> i can put up an aluminum factory in six months. we're point about the market, is interesting, because j.p. mortgaging says stocks with now that they think we'll get there, but the view was provoc tiff. >> look, i can take the view that goldman the other day came out with perhaps 100, and then oil immediately collapsed. >> now if it were zuckerberg

i could say -- >> the way you talk about -- >> he's incredibly nice. >> yeah. >> i do think -- remember, seasonably the best days of the years. if you look at down 23 years is the last ten days of this month, a couple days of november, so i think they were trying to figure it out i think the comeback yesterday was extraordinary. it came back on headlines of spr, and maybe a deal in washington the reality is this market wants to go higher does it want to go higher like the futures? i got up earlier, and david, i wanted to communicate with you, but i got up early. >> that's fine. >> nothing happened overnight, so let's stop this let's stop having the seven people who trade futures control

our dialogue instead let's focus on the company. costco, you become a club member, you get a thing. >> look at that stock. >> they offer value -- >> put up a ten-year, please >> i don't know if it has a special dividend. >> you've been positive on costco all the way through >> yes look at that >> well, i'm positive, because i shop there now, you know there's some months where they sell so much hundred thousand dollars jewelry -- this is not zale. every kiss does not begin at costco, but at the same time they sell an awful lot of expensive goods. >> i know they do. >> that's why they put it at the

front of the store. >> and they sell a lot of travel packages, but they sell hear aids, too. baby boome ers need them. samples are slowly coming back david, you starve yourself, you fast, you go to costco, and you beat them, but then the cfo, one of the greatest guys ever, i used to go to costco, and used to beat the heck out of you? , and he said then, how much did you spend? i don't know, like a thousand dollars? maybe we beat you? >> i took my wife there, and she said, is this bulgari? i said, geez, how much is that she said, do you have to ask i knew i was --

>> i like your point about samples coming back, david has gone to a conference united is going to add to their schedules. >> i think this is great the other day, there was a note from goldman, downgrading american airlines, and downgrading nucor. i find these things ridiculous how can you downgrade nucor? why would you downgrade any one of the airlines? if travel is coming back, just own them david, did you know that delta is 100% carbon neutral >> as of when 1234. >> i don't know. at april 7th >> no, that's usually a tart.

>> delta, the airline is -- >> no, delta the disease yes, delta the airline. >> are you sure? >> i had her on conference last week yes, i'm certain am i sure? am i sure? >> there's always interesting metrics to judge carbon neutrality it gets back to the largest question, and awful different metrics that are difficult as well i would seem like many they would have been a number of years out. >> you can buy carbon -- i'm going to quiz david, because that guy, the latest on "jeopardy" who's from graduate school -- >> yes what did you just say? i asked him the questions.

>> yeah, i forgot. what is the best way for companies -- and i'm not kidding. when i interview fortune 500 companies -- >> yes, yes. >> -- what do they say about becoming carbon neutral? >> how do they say >> what is the best way? >> plant trees. >> exact lid you can replace a whole burned-out forest in oregon for $1 a tree. that's how you get the esg people to like you more. >> i want to talk about that later, but back to the other delta, we have good news from pfizer as well, seeking approval for 5 to 11. that's yet another milestone dr. gottlieb yesterday, finally got to interview him, he sees

that as a positive they'll most likely get approval, and peer review for merck will get emergency approval -- >> you're not worried about side effects? >> no, no. safety profile >> dig deeper. >> i'm not >> all right >> i've looked at some of the data, phase two. i'm happy to put the question to merck and ridgeback. >> i want you to >> you should look more deeply boo the sources for that. >> don't you dare. don't you dare no >> i'm saying you can't put that out there and question something's efficacy profile. >> so far there's questions. i want to put them to rest

that's all >> you might not want to raise it on air before you do so >> i'm trying to find -- you're absolutely right i want to say i'm searching for -- i'm checking. that's different from saying there are. >> one would assume the fda will do the same when they review the data. >> yeah. >> have you read -- -- >> i know. >> the cdc does -- >> you're doing a lot here to bolster confidence. >> gottlieb's book, the cdc stuff is hysterical. if it weren't about disease, we would think it's a movie. >> as he said, they are not equipped to do this. >> no. it would be kind of like a keystone cop. >> leslie nielsen is in charge of the cdc well, there is good news around the world germany, the health minister says they're not going to need further covid measures this fall and winter, because their

vaccinate rates, jim, are so high. >> green pass. for the time being, futures do look good a lot of other news to do to, including conagra, we furtouchen costco "squawk on the street" continues in a moment.

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facebook is reportedly delaying the roll-out of new products in the wake of that criticism. "wall street journal" says the company is also putting a hold on new products, as it station a review it comes after tuesday's congressional testimony by whistle-blower frances haugen. you have to imagine that they do these reviews before any launch. who knows? yap morgan does rate it overweight. >> i saw that. the new apple ios will make it difficult to track -- more formal, if you're a consumer products goods company, you may not be able to see how well facebook's ad did versus a google i think we all want to be jaded as imaginable as mark zuckerberg, but isn't this what

you would have liked if you want to figure out how to change their ways you would like them to hold back, figure out and for mark zuckerberg to get personally involved he's a parent, he's getting personally involved. it's no longer a muted message where he's like, we have industry best, we do more than industry best. >> we'll see what actions follow those words. >> i agree we'll hold people's feet to the fire. >> the point of facebook, of course, at least they're doing research they claim many other competitors are not even doing that. >> that i don't -- one of the things that you learn to argue that is kind of a bad way to argue is, you know, i can say, david, i listen to you, but you know something after i listen to you? i know other reporters frankly that are every bit as good as you, but they're not you can't just say apple doesn't do -- that doesn't work.

i think what mark zuckerberg is going to go towards, rather than try to measure what others are in, he's going to recognize the power of facebook, and recognizing with power comes responsibility i don't mean to be too cliched, but i think this is the beginning and there will be a pivot. others will say that's inconceivable that this man can do anything right. i'm not saying that. i think he can. >> we went through this on gpdr, calling for standards, which leaves the giants better positioned it happens every time. >> it does i think the difficulty he's in he says, listen, congress, you take care of it. he might become the winner, because congress is so ineffectual. >> that's a key question we all listened to the senate hearing, or many people did. they going to be real action

and what will it be? >> i think we wait to see, but the fact is this is a start. look, let's say he were lucifer, lucifer does not say, you know what we're going to stop and figure it out lucifer doesn't do that. did you ever see the match ad? >> yes, those ads were great, right? they don't do it to fake you out and then it comes to get you >> he's not even re ryan reynols i want to be ryan reynolds. >> now he's in the wireless business. >> his gin is pretty good. all i'm saying is give zuckerberg a chance. >> you've got to since it, jim [ laughter ] >> i have what am i looking at for my club? i say you mention tony.

>> john lennon and yoko. the futures are positives, coming off the biggest uidpse reversal in about seven months don't go anywhere.

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all right. let's get to a mad dash. we have a little less than seven minutes before we get started with trading here. it's thursday, right >> yes, it's thursday. >> that coverage at the conference yesterday, i loved it. >> thank you. >> when you start talking about what the activists are doing that are thoughtful, you realize the interview with jeff smith, made my think about whether box was compromised or not

>> but we're not here to talk about it >> they put on the a note on a charitable trust name, and it's on disney. they are saying it's a nice consolidation pattern. now, if you really do think the economy is going to open worldwide, i come back to this is still not a covid play, but a post-covid play. i think that was a moment that bob chapek alluded to that i think you'll hear about the merchandise, and yes, going to the movies, adam aaron -- he's amc. i think the world of this stock

now. it's made its deuce. obviously it peaked early this year >> i say -- and then there was in question about indian numbers -- boy, was that a sleeper? this is going to become a standard name for big institutions if they think that the delta variant is under control. >> yeah, sure, people say, yeah, i own disney, it's going to be like that after a hiatus >> we do have an opening bell coming up less than five minutes from now more "squawk on the street", we're coming right back.

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so day one will be bad, but the cascading effects in ensuing weeks could go from a recession to a complete catastrophe for the global economy i don't know why anyone would take a chance like that. >> that's jamie dimon meeting with the president among others. some conflicting reports this morning, jim, about whether the democrats want it to be farther into february, but overall, goldman's note was die another day. they say there is still the possibility you wind up in december with a debt limit and broader fiscal spend dilemma at the same time, which would put us right back here >> look, i think that's a little too negative i think he did it because he wanted to invoke the buy move. i die another day, he wants to somehow make is so his original thinking, but the idea -- this

has brought the market down big. i expect more to go on for a while, but in the end it seems like the s&p has been on the sidelines. i think they warn us, david, we are going to downgrade your today -- if that continues that was the big fear. [ bell ringing ] pretty much the inverse picture of the breadth is a. lifetime, we'll talk to the ceo. he started out as a trainer. you will love him. it was undervalued, and he took it price. >> and then at nasdaq. biotricity, celebrating its recent listing the cost of of shipping goods fm

china to the united states has finally slumped. they're looking at rates from a container from china to l.a. has been halved between september and october. >> it's a well news, on a day we've started an amazing story on getting a care bear here. if you get that under control, everything from housing, autos, by the way, if you get seismis under control, let me know. >> that's more of a supply part. >> we have to find truck drivers. that's what jane wells was repo reporting. by the way, we have reporters in four spots showing hour a care bear gets onto the shelf but jane was them talking about going 24/7, and they said we could do that, butthere's no

trucks to take the stuff away. >> i know uber has a plan to make it you can find truckers everywhere we need the containers to come back to san francisco. this would be amazing. if you got the principal choke points removed, then i think jay powell would win on this transient battle right now everyone thinking jay is doing a song-and-dance machine, you know, keeping his job. no, jay powell is so rigorous. he doesn't i don't the term -- he didn't go on transitory the last time, but i think these little points, natural gas peaking, spr, they can start going and have a momentum and make it so the finance guys who, by the way, the finance guys are the buyers at the -- thank for you that, great work the henry hub, natural gas, a

lot of that is hedge funds. >> speculators >> speculators >> do you think we'll be sitting here two years from now talking about it's transient or by then will you admit it wasn't >> i'm with jay powell ives with jay powell the whole time i'm staying with him. >> it's like the president may be with him, too. >> i think jen psaki was asked, does he have confidence, and she said, they do, the white house has confidence. >> he favors putting as many people to work as possible i think the problem is finding them everybody has to learn what happened to the 60 to 65-year-old cohort who left the -- >> the great resignation >> then people in their 60s. anyone who hears they need a

booster? it's like, hey, why do i need to work >> b of a has spending at daycare centers has improved, but has not fully returned to 2019 levels, suggesting child care challenges remain it will be an issue for the jobs number tomorrow. absolute. >> absolutely, but if we're going in the right direction, we're going to look for a bottom this up/down, we don't want that if i want good research, i try to look at a thing like baird. baird put out a note saying -- they did their survey. i'm looking for stocks that have come down enough that are buys this kind of prolongs things a lot of these stocks have not come down enough. >> craig moffett, a longtime critic of at&t doesn't think it's come down enough to be a buy, but it does go to a

neutral. >> does he think the bloodbath is over? >> i think he does -- actually i read up to page 11. >> that's the first line. >> well, i skipped ahead even after the implied dividend, there's a look at it he still can't get himself further than that faint praise oh, it was having a positive effect on at&t >> i said nothing. >> that's not the right quote. i have at&t up am i lagging here? i don't know >> the worst is over, but to me -- >> they have $20 million free cash flow target, which he is still questioning. 8.5 billion is going to be devoted to the dividend. boy, you spent a lot of time on

that >> because i was right, too. >> you were right. i would also point out its merger partner has been getting s shellacked also. into what will become warner discovery, that's been coming down that company will be five times leverage >> you got the note last night with hbomax there will be a prequel to "game of thrones. >> i'm not going to -- but they do send you the e-mails. there's a pulse there now. >> there's a pulse he still says their leverage is four times, they would dispute that, but he throws in other things in terms of identifies what he believes is the leverage at the company he questions how much more spending on spectrum, but a neutral they're happy with because this guy has been a frequent critic of the company.

>> more than i. >> and rightly so. largely when you look at the performance of the stock, that's a good call. >> i do think that apple is a big beneficiary of this in the end. everybody wants to give you the 13, which i love oh, i left the light on -- >> you're going to wear your battery down. >> this battery? i have charged my house with this battery i'm not kidding. it's look a generac. let me tell you, carl, the one that people were buzzing about is why did mary barra give such aggressive targets for 2030? >> double revenue by 2030. >> 20 billion in services software heart of north america with ev-ready production by 2030? >> i think that's very tough

we don't know what 2023 will look like. 2030 is very impressive. their cruze, they have a lot of intellectual property in there. >> ford's got a stake in rivian? >> amazon has a stake in rivian? >> that's going to be an interesting ipo. this is a private company, it makes the ev suvs. i have a few friends who are waiting for them >> it's in normal, indiana, where they make them >> i want to go to the factory -- >> no, i already have that >> now we have this upgrade of nio over at goldman. >> thank you i mean, gee -- no. no, you're not to wbuy nio.

get two days of nio, and then go see the movies i don't want people in the shiny stocks it's kind of like "godfather 3." she gets you in, and then you're done. >> baba is back above -- >> i know. it's a great holiday week there. >> and then the tollbooth, and that's what happens? >> you want to be in a fly-over this weekend a taiwan fly-over? i'll get you one of those. >> we have the jake sullivan weekend in switzerland, and then it looks like biden and xi will meet >> they have to stop the flyovers in taiwan pepsico is up again. >> we're above 4400 since september. >> remember a week ago we were talking woe is me, woe is

monday, oh, it's the worse since february whatever. do you remember that, david? >> i do. we were just talking esg i spoke to ed garden yesterday. >> i loved that interview. >> there's an interesting inflection point, where we're getting a lot of endocuments or those who give money to those who allocate the assets, who say, here's my list, you can't go there you can't own exxon mobil, and we have wondered would facebook ever be a part of a list of stocks now is it an esg no. >> but garden makes the point that may not be exactly the right approach don't you want to be somebody who will be a force for change take a listen. >> i think what you will see is more money going into esg -- companies who have esg issues,

versus the small number of companies that are perceived at good esg players a huge important nuance to all of this is, in order to become best in class, management teams will need to spend money and it's going to take time. >> interesting if you are an asset manager who has -- or is on the board of exxon mobil, you're probably having a hard time raising money. >> what do you do if you're mike worth at chevron, and he does what you really want it's not lazy susan, i send you chips, you give me back my certificate. he is spending to develop new ways of energy i think he's doing everything you could possibly ask he's a very smart man, you get a 5% yield, which is safe. why is he not given the opportunity to say, hey, listen,

i think you're doing everything -- or does he say, energy it doesn't matter like with apartheid in the '70s. >> do you force them into certain moves they have to make, because they don't have sack to capital the way other industries do or are you better -- it's not just oil and gas it could be any other number of companies, where you might be better served having somebody put the feet to the fire in terms of changing and, by the way, potentially beneficial to shareholders over time do they take scope 3, where they're hammering their suppliers? to me that's microsoft's way of doing it there's a lot of people -- i talked to carmine, and i think the best measure, the independent outfit that measures this he would tell you, listen, we know who's phony or not, and

we'll work with you, who is trying to clean steel and who is saying they're cleaning it. >> it takes a lot more work. >> that fund should have a higher -- i don't want to say cost of funds, but you know what i mean you can't just say they guys sound like they're jokers. no >> it's a marketing pitch for a lot of platforms to say we're great on esg, period, and then the money comes in instead of saying it's very complicated and we're going to take it on a situation by situation basis, and therefore you have to rely on us, because we may invest on things that may appear on the outside are not particularly esg friendly. >> i think they have to hire people to professionally analyze people yesterday we had jim fitterlin

on yesterday, dow cause down aw, which i thought was awful, because i thought he made a great case pepsico was down at 601 when they reported two days ago, now it's up. i think there's a lot of companies -- marvell had a meeting yesterday. i've been pounding the table for marvell, every one of the major cloud companies has to use them. no one was listening no one, and then boom. you know people say, marvell is good where have you been? david, look at that chart. >> can we get a longer-term chart out? this is a company that's said we're going to get everybody from all the great chinese companies, to the amazons, to the googles, and they have done it i mean, look at that.

>> i'm looking at it. >> that's a good chart. >> a nice chart. >> that's a company that snuck between nvidia and amd to become the we need help making a chip chip 28% autos in iot, not a choke point. they are delivering. we would like nxpi here to talk about the choke point or global foundries. >> and to your phoint about a cr being a phone on wheels, and upgrades to car play >> samsung has an unbelievable alternative, ever since they bought harman. i hope apple has a better package, because i'm an apple person i'm not a samsung person are you a samsung person >> no, i guess not. >> when steve balmer retired, he

said look at this, a microsoft phone, what do you do with it? >> it's a valuable piece of hardware. >> like a shoe phone. >> it really was it's a collectible. >> you can get in the coin of ai -- cone of silence for that. dutch officials have decided that the in-app store payment system is anticompetitive in their view, so they're dealing with that issue all around the world. >> yeah, it gets tiresome. this is something that zuckerberg didn't bother to do apple can say you can go have your own that was the epic battle remember that? the epic battle? >> i do. >> that was off the front page after the settlement. real quick on the activist front, relatively small , hta.

>> that stock has been an underperformer, elliott owns a pretty significant stake there i've been tracking this for a while. they were disappointed when the ceo disappeared for unknown reasons. they're looking to replace the ceo, instead elliott would like them to sell the company blackstone could be interested, unclear at this point, but poor cost to capital, and just generally a bit offrustration there. i did want to mention that one bloomberg originally reported it. >> good job. between the debt limit extension and the decline in energy prices, we are above 4400, as we said on the s&p, first time in a bit more than a week got the vix back to 20 all sectors green.

pretty much a 9 to 1 update. even as yields haven't budged a whole lot. >> see, we just are divorced from all that stuff. we start thinking about how companies are doing, and i still believe we saw a template from pepsico. if you have good revs, that will take you up. we look forward to goldman at 600k. we'll see. we'll be right back.

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let's get to jim and stop trading. >> we have to talk for a moment about this advertising for apps and it's a terrific company.

i know until i saw what they did, i really questioned maybe it was kind of like my favorite super bad character, mclovin'. >> you like mclovin' >> how can you not like the name >> it is applovin. i had them on and liked the company. >> tonight >> tonight we have newcorp and this is a travel trust name, talking about one it's a steel company that is the most esg oriented closed loop steel company and jeff arnold, one you like, sharecare. >> we interviewed him when they announced that deal. >> look at that spac, nowhereville usa. >> yeah. >> ebayitda positive. >> excuse me, $8 now, a share. >> let's look at it. >> it does have broken spacs, a

lot of them, broken for a reason but -- >> i liked your coverage yesterday in your conference. >> thank you >> you know, pertinent to our conversation on energy a few moments ago, jim, oxy is on the tape saying they're going to prioritize margins and dividends, rather than focusing on oil production volumes. >> occi? >> vicky at a conference this morning about our point we're going to get sustained capacity in energy. >> that's important because they've been going flat out. >> a lot of debt on that balance sheet. >> they did. warren buffet did very well. >> he did. >> speaking of buffet, the bank, we get closer to earnings, wolfe cuts bank of america today. >> that's an infatuous downgrade. that -- very inexpensive situation. rates are going to go higher

my favorite, my trust is wells fargo. wells fargo, lost $20 billion on that fine, which turned out to be not that big, $20 billion. >> $20 billion in market value. >> market cap. and look at it, it's all the way back people want charlie's -- i know elizabeth warren is not complimentary of wells wow. when she takes you on, what does she call, jay powell, the darth vader. >> you should know. >> of what the -- she was jay powell said was most dangerous man. >> yeah. >> dr. strange love. >> we'll see you tonight. >> by the way. >> you can get on the cnbc investing club with jim. find out more at cnbc.com/investingclub or the qr on your screen session highs, back to 4416. don't go away.

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good thursday morning. welcome to another hour of "squawk on the street. i'm carl quintanilla with morgan brennan and david faber live at post nine. the debt limit and energy prices seem to be moved off of the

market's plate for now dow up almost 500 points and 4420 is the best level for the s&p in more than a week. >> we are 30 minutes into the trading session so here are three of the big movers that we are watching specifically this morning. we're going to start with levi, shares rising after beating earnings estimates with denim styles driving that growth the company raising its outlook and the shares are up 7.5% we're going to stay with the retail news as well and watching shares of affirm following yesterday's 20% jump after announcing a partnership with target, up more than 100% over the last three months. we'll end with rocket lab surging after winning another government contract, this from nasa to launch an experimental technology to space for a demonstration, the advanced composite solar sales system, think using the pressure of sunlight for propulsion on the heels of a space force award last week for rocket lab to develop the next gen rocket.

shares up almost 10% right now >> let's get back to the markets as we said stock up for third day in a row. dow's best week since june as concerns over congress not passing a debt ceiling deal appears to have eased. blackstone's private wealth solution group byron joining us. what a treat as always good to see you again. >> always good to be here, david. >> let's talk about what the market has to deal with at this point. i wonder whether or not you think we can truly set aside the debt limit concerns. as far as inflation goes, you are not of the belief it is transitory >> no. i always thought it was going to be here and stay here. i never thought the transitory argument made sense. >> and that is because why is it about their repatriation of supply chains over the long term or something else >> no. just look, i mean, you know, the

major drivers of inflation are commodities, that that may be capable of retracement, but also, now you have rents going up, you have wages going up, and those are sticky rents and wages are very sticky. and you have the supply chain glitches and you have all the ships that can't be unloaded in california there are too many factors out there end kagt that inflation is here to stay will, the pace of the economy is strong companies have pricing power and people are paying -- willing to pay higher prices to get the goods and services they want >> so that obviously has implications for the taper, which i imagine you think deserves to happen sooner rather than later what does it say about actual interest rates and then the implications on equities >> well, i definitely think the

10-year is headed to 2%. i think i could get higher than that i don't think it's going to go above 3% if it went above 3%, i think that would be very negative for the market right now i think the market is fairly valued at 4500 and at 2% long 10-year treasury. >> byron, it's morgan. going into 2022, where do you see the market going from here if inflation is sticky and lasting, then at least the fed seems to think if you have peak earnings that have potentially already occurred, if you have slowing economic growth and, by the way, not just here but globally, you have the china de-leveraging and all the issues playing out there as well, i mean, do those actually go away or stay put and what does that do to equities >> well, you know, i don't think

there's a lot of upside from here i think the market is fairly priced at around slightly higher than current levels. so i think we're in a long-term bull market. i think it will go higher next year i'm using 225 for earnings for this year, 250 for next year, so, you know, there's a possibility of appreciation driven by earnings in 2022 but i don't think there's a lot of upside. i think the 20% years are behind us, but i do think that if earnings increase to 250 next year, the market could rise another 5 to 10% >> so how much of the relief rally that we have seen in the

last 24 hours do you think is actually tied to the debt ceiling or is it really more technical here since i think many folks on wall street probably expected we wouldn't see some sort of default because the game of chicken has been played to different extent in the past >> i think the market thinks that somehow the debt ceiling could be raised, that, you know, it always goes down to the wire, but then it gets raised. the market thinks that infrastructure bill will be passed the market thinks that safety net or the family bill will be modified, reduced, but will be passed so some part of the biden agenda will be implemented. i think the market basically has a positive view of the outlook

but the market got ahead of the fundamentals and that's why we had a correction over the past couple weeks now it's stabilized and i think a modest drift up is what we're going to see from here >> yeah. byron, it's david. as we talk about, of course, raising the debt ceiling, if memory serves you have been concerned along the way about rising deficits, have you not? are you still? >> yeah. i'm not in the modern monetary theory camp. i think deficits do matter i think we're going to run the largest budget deficit in peace time that we've ever run or close to it. you know, i am concerned about spending, but i'm also concerned about the fact that we don't have the social safety net in the united states they have in

europe you know, doing things for kids, doing things for families, providing maternity leave and vacation leave i'm in favor of all of those things so they're important parts of the biden agenda that i support and if it results in a larger budget deficit, i'm willing to live with that one thing i do believe, though, is that the biden program and the taxes associated with it don't pay for themselves the biden program even if it's modified will add to the budget deficit. >> finally, on inflation, i wonder how do you push back against those who argue that our demographics long term are still pretty lousy, you have deflation and things like technology and financial services, you got remote work which is going to

usher in a new era of productivity, give you protection against inflation, why despite those things do you stick with the long-term inflationary call? >> well, because i'm seeing it in so many components. all the things you say are right, but look at wages look at the personnel consumption expenditures if wages and rents are going up, and if oil is 75, you know, maybe oil will examine back down when there's more production next year, but you have too many things where prices are rising you know, i think there's a limit to how high inflation is going to go. i think it will be between 3 and 4% on personal consumption expenditures, which is a key

variable but i don't see inflation going back to 1% any time soon. >> byron, we love checking in with you and wish you had a little more time but look forward to next time some time soon great to see you. >> always great to be here >> byron wein. let's get a look at our road map for the hour fitness company lifetime going public at the nyse we'll talk with the ceo. >> bitcoin having a bounceback in october, at its highest level in five months. >> exploring the broken supply chain. a deep dive into how it could imyou pact the upcoming holiday season live reports from shanghai and our jane well who is off the california california coast. >> we follow the path of a lonely carebear from china to you if we can ever get it off the boat our great logistical nightmare whene meac wco bk.

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let's keep making a differene together. welcome back all day long at cnbc we're doing a deep dive into the supply chain disruptions we've been talking about so much, so often. the issues firsthand that it's causing for shippers, transports, retailers and for you, the consumer.

ueunice kicks off the story. >> a stronger yuan, higher wages and pricier stuffing means the cost of making one of these care bears is up 25% since january. ahead of christmas boxes are stacked here for one to two months compared to no waiting time before the pandemic >> we don't know when the shipping space, we don't know. >> reporter: once a bear leaves the factory it takes 15 to 20 days to arrive at a u.s. port like l.a having these products stuck in china is just the beginning. i haven't gotten that care bear yet, maybe it's on this ship so busy here at the port of los angeles. today there are 65 ships parked out here it's going to take ten days to get an appointment to be unloaded longshoremen are not working 24/7. >> we can work 24/7 and our men and women are willing to work 24/7 the problem is where do those truckers and it's not their fault, where do they take the cargo? >> 30% of daily truck

appointments go unused that's because warehouses up the road are full that means right now there are 650,000 containers full of goods either on ships or on the docks waiting for someone to come move them >> race to move from containers like here in l.a. to chicago 2225% higher half of the care bears will stop in chicago east of the mississippi. but now these transfer points are backed up and containers delayed because there's not enough workers or equipments to haul them available. >> driver shortage, labor shortages across the supply system that is really causing the problems also trucking rates are 91% higher than prepandemic. making the trip to retailers more expensive and take longer >> it can take twice as long for a product like this care bear to get from a chinese factory to this learning express store in bedford, massachusetts the journey cost toy makers 620% more.

>> we're adding a freight surcharge at the end of the invoice and the retailer will have to determine whether they incorporate that into the selling price. >> this toy store selling care bears 16. $9 and they have enough for now. >> the supply chain issues are real it's taking weeks to months to get product into the store and so we encourage you to buy now if you see something you want to give this christmas. >> joining us now live for more is eunice yun from the port and jane wells at the port of los angeles. we will start with eunice. >> thanks so much. the producer of this care bear also recommends that americans buy their christmas gifts early. this care bear has traveled from the central chinese town here to the shanghai port. before it gets on a boat to the united states it still faces bottlenecks because of the government's very strict approach towards covid, zero

tolerance approach, the port protocols cordon off workers from the rest of the population, so here in shanghai the current protocol is 16 days of continuous work, then 7 days of government quarantine, and another 7 days of home isolation. in fact, the policy so strict that even if the authorities detect one case, they will shut down an entire dock. not a whole lot of people want to be living their lives this way, so that's been leading to a labor shortage as well as other delays factories say that they now face other challenges in fact, they're seeing more orders from big box retailers like walmart, as well as costco and target and so because of that, they're seeing long lines at the big warehouses here around the port where truckers are waiting for up to 40 hours and so that is hard for the factories. they can't find as many truckers willing to do that which means they have to pay more money and then they have to add costs to manufacturing their bears.

morgan >> wow eunice, great reporting on this. something else you've reported on in recent months has been the fact that there have been shortages of containers themselves as well in china to actually be able to ship this inventory. is that still part of the problem here as well or is it -- >> absolutely. >> more people the piece of the puzzle >> absolutely. here in shanghai people have been telling us a lot of ships off the port have been waiting for on average three to four days, so still very much a problem and in fact, the factories are a little bit concerned that they're going to see as lot of uncertainty into 2022 as well as 2023 because we have been seeing some licktrycle limitations here as well as rising petroleum costs which again adds to the costs of the insert inside this bear. >> thank you eunice yun in shanghai

jane wells on the water outside l.a. jane >> i finally got my care bear. l.a. port police told us last week they saw a ship out here completely filled with only walmart containers as these big companies are chartering their own boats. john is an expert in logistics and represents a chinese manufacturer and has about seven ships on the water any boat that can carry a container is being used and new ships being built. listen. >> 5.3 million new vessels will be coming online between the end of 2022 and 2023 we're facing a period until then that nobody knows where this is going to go. >> yeah. i mean, there's so much more supply coming on you heard frank talk inland places like chicago have slowed or stopped accepting containers which means everything gets stuck here at the port the head of the port of l.a. says it's like shoving ten lanes of freeway into five and doesn't

see it beginning to loosen up until after the lunar new year. >> major retailers are telling me that following that holiday, they're going to focus on replenishment of inventory inventory sales ratio the lowest since 2008 that may run us into next summer time and head of peak season for 2022 >> he says fortunately many retailers ordered early. monroe says one thing that might help in a way is the power crunch eunice mentioned it in china, it could slow down manufacturing and guys, at the same time, just to throw it out there, the coast guard looking into whether an anchor from one of the ships out here may have caused the oil spill. back to you. >> yeah. the convergence of those two stories is amazing a lot has been made this morning of the benchmark freight rate of a container going from shanghai to l.a the biggest weekly drop since all of this began. are you beginning to sense that kind of relief where you are

>> no. i talked to a furniture importer last night he's under contract so he paid and his contract rates have tripled since before the pandemic he's not going to see that fluctuation. the people who are quintupling because they don't have a contract they may start to see relief from that >> right it's a heck of a live shot, jane once again, jane wells off the port of los angeles. thanks as we go to break, take a look at the top gainers on the s&p for the week dow is up you 526 as schumer is on the tape saying they have reached an agreement to extend the debt ceiling through december and then a vote could happen as soon as today. be right back.

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as we said before the break, breaking news from the senate floor. ylan mui is stand big. >> good morning, carl. senate majority leader chuck schumer has said that democrats and republicans have reached a deal to extend the debt ceiling through early december and he said that he hopes to get this deal done today. we do not have many details of this deal, but republicans had

previously offered to democrats to help them raise the cap for the debt ceiling to a specific number, rather than the suspension of the debt ceiling the democrats had been looking for. now we will see if that is what the final agreement amounts to at least for now they have averted the short-term crisis of hitting the debt ceiling around the date of october 18th, so morgan, back to you as we await to see if the state does take that vote today. >> ylan mui, thank you for bringing us the latest. lifetime meantime is returning to the public markets this morning after being taken private in 2015 under lth, shares at $18, towards the low end of the range joining us now on cnbc, the founder and ceo. congratulations today. >> thank you so much. >> we mentioned the company has been public before it was taken private in 2015 why go back to the public markets now? >> it's really a great time.

the company has evolved significantly over the last five years. it's much more of a lifestyle company, lifetime living, lifetime work, lifetime athletic resorts, lifetime digital and we are in a great position to grow substantially over the next decade as we stand in our own space in this healthy way of life category. >> so in terms of that growth, the money you're raising through the ipo process how much goes towards that expansion >> pretty much all we're reducing our debt but gives us the liquidity to do the growth as we would like to go. >> you're more than 150 centers locations last year were closed because of the pandemic. we talked to you and checked in with you during that process last year as well. they're all reopened now it looks like you are as of the end of july, back up to 767,000 memberships, but still below the

prepandemic number you were at how are you bringing some of those potential members back into the clubs especially because it's more competitive environment now, now dealing with other fitness clubs and boutique brands but pelotons and mirrors and others >> we have an amazing digital platform ourselves and we see the members are looking for more of an omnichannel solution, rather than just physical or digital. the members are coming back at a great pace and we're gaining significant market share as we treatd the customers and our team members amazingly during the covid. we're getting the benefits of that today but the opportunity for us to continue to get this market share is better than ever. we really, really have been trusted by the customers, they love the clubs and know when they're there they're safe we see no reasens to people coming back. we're doing more memberships per

day in our net gains than we did in '19 and '18 we can see that this trend we're going to continue, we're going to get all of our dues and membership back and go way beyond it's very clear. >> interesting i mean, historically i feel like it was always the best business model for a gym was the members who sign up and never go to a gym. does that still stand, especially now it is more of this i guess for better lack of a better word omnichannel approach. >> yeah. that's the misunderstanding of lifetime lifetime isn't a gym or fitness center it's an athletic resort. it's all aspects of healthy living and aging for us we want our members engaged, to come in at least three, four, five times a week some other business models you're talking about, which are not really our business, the fitness or gym business selling 10 or $15 membership per month,

while they hope not all the members come in because they couldn't fit them all into the place. very different business model. >> okay. the lifetime work piece of the puzzle, you watched in 2018, shared office space, why branch out into that? >> the lifetime brand is so respected and so trusted by people that when we open one of those, our members who have had any experience with lifetime, know that if we do it, it is done right so they come to us. we're not going to build lifetime work units as just a standalone across the country. we're not in that business we're building this healthy living, aging, live, work, play villages we only do lifetime work when they're attached to some of our big athletic resorts that creates a very, very unique competitive advantage for -- makes it super easy for the customer. >> and quickly, just in terms of

prepandemic, you're profitable, what does it take to get you back to profitability now? >> we are actually nicely in the positive right now and because we have past that tipping point, with every single additional dollar of dues revenue that comes in, it's mostly margins. we're going to very rapidly get back to our 2019 monthly ebitda and go beyond that. >> all right byron, thanks for joining us today. >> thanks so much. thanks a lot. >> carl? >> thanks. time for our etf spotlight, taking a look at the communication services sector, ticker xlc, up more than 20% this year. top holdings include facebook, alphabet and netflix twitter, shares rising after announcing the sale of the mobile ad unit for more than a billion in cash. twitter bought it in 2013 for an estimated $350 million shares of twitter up more than 35% from a year ago.

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i'm christina and here is your cnbc news update at this hour in the last hour a strong earthquake shook the tokyo area. the earl estimates it was a 5.9 magnitude quake and some buildings swayed and several bullet trains were halted but there are no immediate reports of extensive damage or injuries and no threat of a tsunami my. the white house says pfizer's covid vaccine for children aged 5 to 11 could be available as early as next month. today pfizer says it has formally asked regulators for an emergency use authorization. and flash flooding in alabama left cars stranded and some drivers had to be rescued the "halftimheavy rain blamed f

death of a child and flood warnings remain in place today. the coast guard released video showing damage to a pipeline the source of tens of thousands of crude oil the oil spilled into the ocean off huntington beach, california we're told that last night coast guard officials boarded a large german cargo ship in oakland near the spill and may have broken the pipeline with its anchor carl, i'll toss it back to you. >> thank you very much we are about an hour into trading. stocks are extending yesterday's rally, the best day for the s&p since july let's bring in our senior markets commentator mike santoli to talk about what's happening regarding the debt limit extension and energy prices. how much needs to happen before we stop talking about the downtrend? >> i think first of all three days in a row to the upside, the index is kind of climbing out of that pit good first step. i think, you know, we're just a few points, ten points on the s&p 500 below where we closed monday, so that's sort of the

first stop in terms of deciding if, in fact, we're going to reverse this down trend. i think it all happening in the context of what we've been saying all week has been this multiweek reset of the market. we had earnings estimates that have flattened out in terms of their growth path, sentiment really has turned to the sour side that's a positive. if you saw the retail investor survey today following some of the other stuff, shows you people have reset their expectations lower all that to the good economic surprises have turned for berth, even though third quarter look like it was slower than we thought and appears maybe things have perked up from there. all that, you know, in the mix i think right now. what's interesting today, too, is it's pretty inclusive i think it's kind of a markup across the board all the major indexes up about the same percent. >> you said that vix still hovering around 20 means it's not an all clear. >> yeah. >> and the 10-year at 155, a tern to? >> i think 155 as a level is probably fine.

i think the market just sort of makes its peace with each level as it goes higher if it's not happening for the wrong reasons, runway inflation as opposed to to the economy firming up. the volatility index did not go to new highs for this downturn in the market. even as the s&p made new lows. there's been a muted response because it already was elevated. that's one of the things you watch. eventually -- it's made a nice spike on the chart usually when you have the big surge to the high 20s and back down, that's a net positive. it means we're on firmer footing. it's october you can keep in mind what happened last year, we peaked on september 2nd, both this year and last year, you had a correction, a failed bounce out of september and in october it hashed around similar levels technically before rebounding. you know, nothing matches up perfectly and the decline last year was deeper than this one so far, but it's worth keeping in mind this is the cadence of how these phases go. >> yeah. when you look at the s&p 500 today, i mean, it turned

positive just a little while ago, but energy has been the under performer again today. among the s&p sectors. we've seen a dramatic pullback in the last 24 hours mike, where crude and gas are concerned, but overall, the big spikes we've seen across the commodity complex right now, how much is that helping to drive this bigger, broader narrative and the correlations we're seeing between stocks and other asset classes? >> when it comes to energy, it's super over bought in the short term, the stocks and the commodities need to settle back a little bit i think the general increase in commodities we're talking about, cotton and everyone is grabbing their favorite ag or industrial commodity to say things have gotten out of hand ends up being a support for that kind of cyclical reflation trade but i don't think people want to see it get out of hand the charts got too vertical, the market seeking pain and ration scarce supplies as opposed to

just responding to good demand probably stocks would be good if we stayed at relatively decent levels on these prices but came in a little bit and slowed down the increases is probably what we want to see just because i think that ends up being a little bit of another pressure point on the market if all of a sudden seems as if the shortages, supply chain stuff is creating friction as opposed to just responding to better demand. >> cargo fees, we've been talking about the cover of barron's, the crunch followed by the first downtick in shipping rates we've seen in a long time, not to mention the way in which pepsi and constellation and levi's handled some of those headwinds. where are we in terms of reaching some kind of saturation point? >> on the focus on the issue we might have been there in the last week or so. obviously companies are going to have to still contend with it. the way i think about it in market terms is, there's a case to be made that we had this massive pull forward in goods demand if we normalize the economy,

covid rates going down, 2022 is a shift of spending towards services that further kind of relieves a little bit of stress on the supply chain system and that doesn't all have to happen very fast. it doesn't have to be true in every moment you look at it. it has to be plausible for a while as an outlook for the market to try to kind of not be too over excited and worried about it >> mike, thanks. good stuff mike santoli bitcoin soring more than 20% over the last week of trading. a closer look at what's behind the crypto rally when we return. dot awhe.n'gonyer think you're g to like it here. umm, why is everyone... throwing things at me? look, as cfo it's my job a closer look at what's behind the crypto rally when we return. don't go anywhere. randomly hurl things at me. it's also why we use workday. it gives us insights, so we quickly pivot our strategy, people, planning, you name it. sorry, sir. i will aim straight at your next step. see that you do. would you like some coffee? workday.

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brennan. bitcoin hitting a fresh high overnight coming off the levels a little bit today this morning right now, trading around $700 above 55,000 those levels would bring us back to mid may this morning pulling back as i mentioned a bit but still up better than 20% for the month so far. joining us asset management cio matt hogan great to have you back on. the rally, since the start of october, in bitcoin and other crypto currencies what do you attribute it to? >> i think this is just the first down payment on what would be the biggest story in crypto over the last 12 months, which this is a rally on regulation. there's a wave of institutional capital that has woken up and realized it needs exposure to the market the only thing holding it back is a lack of regulatory clarity and we got a tiny dose when gensler said he wasn't going to ban crypto and the market started to price in a bitcoin etf approval later this month

and that's unleashed this bull market i think it is a down payment there's a lot more to come and still a huge amount of capital on the sidelines and waiting for that regulatory signal okay ready to go into the water and it could be a very strong moment for the crypto markets. >> when do you think it does i ask that because we're getting more commentary and rhetoric and more officials nominated to posts within the biden administration that could have a role in this as well. what does the timeline look like >> i wish i would say it's tomorrow i think it's going to be a year-long story with peaks and troughs. i think, you know, one mile post is a potential bitcoin etf approval in the middle of this month. the market will likely price that in ahead of that approval if it thinks it's going to happen this regulatory story is going to play out over the next year what happened last week, which is really important, is that the left tail of potential outcomes got clipped off. i've been on the road talking to

investigator advisors in cities across the america and the number one worry is they might ban it we had powell and gensler saying we're not doing that in america and removed that possibility and led to this bull market. this is a story that has legs and the biggest in crypto not just this month but for the next year. >> of course we start to see all of those details begin to flesh out, i mean, do we actually yet know the role of crypto currencies in the financial markets? i ask that because last month, for example, we saw stocks fall and bitcoin fall in tandem and this month since the start of october a decoupling in terms of the perceived correlations of crypto currencies with other asset classes, i ask that question because it's going to have a big role to play in regulation >> oh, it's such a great question from an investor perspective if you look back in time, crypto was a risk asset it's an early stage risky investment

no surprise that when the market as a big risk off moment for a short period of time crypto falls, what we're seeing is crypto penetrating its primary use cases as digital gold as the financial rails for decentralized finance and it's those use cases get more clear, get more embedded, more real, get accepted by more investors, you're going to see that counter correlation play out more and more i think what we hear from congress these days is people realizing that bitcoin isn't just a currency, it may not be primarily a currency, what crypto is about is rewiring the financial system to make it more efficient and cheaper and inclusive and people are positioning to allow that boom to occur really positive comments out of washington over the last few weeks. >> that's interesting. ken griffen gave a chat this week at the economic club of chicago, and he said it was a crazy concept that we embrace so many bright young talented people to come up with a replacement for our reserve

currency, i wish all that passion and energy went -- was directed toward making the u.s. stronger sounds like you kind of disagree with his premise >> i do disagree i don't think crypto is about replacing the u.s. currency. they live side by side the primary thing crypto is about is rewiring the financial system allowing money to move at the speed of internet and a billion dollars to move to anyone in the world and settle in ten minutes to make the financial systems faster we're hearing about nfts i think that comparison to the u.s. dollar is not the right comparison this is about sort of a fin tech play on disrupting the financial ecosystem. we know it needs disruption and we know it could serve us better and i think it's going to be one of the hottest areas in economic growth in america over the next five and ten years >> interesting well, we will talk to you more about it as it all progresses i'm sure matt hogan, thanks for joining us getting some details on that

debt limit agreement including a dollar figure. ylan mui >> yeah. carl, that agreement would increase the debt limit by $480 billion, which is the amount the treasury department says would be required to last through december the 3rd now this is the number and the date that both alliance with the government funding deadline when the government would run out of money, so those two dates would now coincide senate minority leader mitch mcconnell said both sides have been negotiates to reach this agreement. the hope for the vote to still happen today on this deal, which now has $480 billion increase in the debt limit which would supposedly last through december 3rd. guys >> thank you a lot of moving pieces today very quickly coming up on tech check the ceo of abbott labs the first health care company to headline ces which will return to being a live event in january. that all begins at 11:00 a.m. eastern time

dow up 526, s&p still shy of the 50-day, but with delta, the debt ceiling, energy costs coming down, the market does like it. stay with us esg is responsible investing. who's responsible for building esg into your investments? at pgim, the pursuit is on for outperformance. as active investors, to outdeliver with customized strategies, integrating esg best practices into our investment decisions. as asset managers and fiduciaries, to outserve, with our commitment to better esg outcomes. join the pursuit of outperformance at pgim. the investment management business of prudential.

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welcome back to "squawk on the street." i'm dominic chu. stocks are trading higher. a lot of green behind me much of the s&p is in positive territory. the tech sector in particular more thanup a percent today. the big chip, semiconductors, along with the solar company outside of the s&p, chinese technology get be a boost like bili, and alibaba, on a tear right now, on the best pace since april, after a disclosure from the dale journal corp. reported $40 million in share.

charlie munger, from berkshire hathaway -these tech companies getting attention. alibaba,or emp fxale, still around 50% off the 52-week highs. keep an eye on chinese internet. "squawk on the street" been right back keep it right here that building you're trying to buy, - you should ten-x it. - ten-x it? ten-x is the world's largest online commercial real estate exchange. you see it. you want it. you ten-x it. it's that fast. if i could, i'd ten-x everything. like... uh... these salads. or these sandwiches... ten-x does the same thing, but with buildings. sweet. oh no, he wasn't... oh, actually... that looks pretty good. see it. want it. ten-x it. yum!

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facebook whistle-blower frances haugen's testimony on facebook's negative impact on its younger users has highlighted the broader implications for a lot of social media companies. joining us the founder of tech and education company roomie and the former blackrock cio, good to have you let's start off on the question whether facebook will find itself on the no-go lists for those who esg in their investing, do you believe that's the case >> i believe that's unlikely facebook has had governing issues and has for a long time they're kind of mishmashed together something that they think is a marketing imperative and usually that's off

and that's led to tech companies getting overweight in those funds. they could reduce facebook a bit because of government and social issues is an optical thing but on a large scale, i think it's unlikely >> so nothing really occurs in the capital markets that could constrain their behavior and/or other companies that perhaps as seen as not providing potentially social benefits? >> i don't -- i think it's a dft one, right because at the end of the day, you know, esg has all things, all people you're either talking risk return or impact on the record if it's risk return, from an investment perspective, i don't think it changes that much, right? there's a social backlash in consumer pressure, but ultimately, people are going to go back to using the platforms and the risk of government regulation is fairly low because, first of all, the government doesn't really know what to do, right? and second of all, facebook and

amazon spent over double the amount of lobbying last year, more than exxonmobil did, right? so, you have a significant power to restrict legislation. and you just don't really know how to legislate it anyway i think the return dynamic stays the same -- it's generally favored by esg investors because ultimately it's hard to major esg. >> you get to an important point here, it's hard to measure esg and a lot of market funds on that, and they can't because of they're at the behest of those investing with those a spoke with a long capital inv investor, he brought up the point, tariq, saying it has to be the bad actors you have to engage with, not necessarily the good ones? >> that's right. engagement is only going to get you so far with facebook

for the last few years to change the government structure and the majority of people are now c called zuckerberg risks. and nothing has changed. 50% growth and 43% margin. and that's why esg is likely to redefine capitalism. and if it does, it does it by destroying capitalism, but the changing market. look, i'm 43 most of the people younger than me don't believe in capitalism, right? >> all right tariq, we're almost out of town. you sound pretty cynical what happened at that year at blackrock for you? >> i think i got in middle of the machine and saw that the incentives of the system are not going to produce the outcome nas people that lead that system and want, and they know that it's short-term incentives to kick the can down the road on long-term social issues. and the more than that

happens -- if you saw greta thunberg's blah, blah, blah speech from last week, she's far more cynical than i am you have an entire generation, all they hear is words >> tariq, this conversation could be continued appreciate you're taking some time, thank you. >> thank you >> yeah, really interesting conversation the major averages are higher today, actually the best daily gain for the s&p and down from july from nasdaq in may, less than 2% for the record highs. that's it for "squawk on the street." "tech check" starts now. ♪ good thursday morning. welcome to "tech check." i'm carl