now. good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen andrew is out today. but it's monday, and we're ready to go. let's look at what's been happening with u.s. equity futures under just a little bit of pressure this morning, the dow indicated down about 50 points s&p futures down by 12, nasdaq off by about 58 friday was a down day for the markets after the weaker than expected jobs report a bit of a surprise. if you were looking for the week last week all three of the major averages were high other the week nasdaq eked out a gain just under one tenth of 1%. the dow had the best week since

june for everybody keeping score right now how far we are off the all-time highs dow off about 2.5% s&p down by less than 3.5% and the nasdaq off by i think 5.3% from its all time high so that's where we stand after last week energy prices still the big story here if you look at things this morning, you're going to see higher prices again. wti up to almost $81.50 a barrel, $81.43, a begin of 2.6%. the brent price, the price in europe, up to more than $84 a barrel and natural gas this morning up another 3% watching that really, really closely, natural gas again bigger story in europe where prices are about 5 times what they are rights now here bond market closed today treasury yields did tick higher on friday with the weaker than expected jobs market but bonds closed today for

columbus day. >> it's 6:01, sometimes i wonder how long the -- we explain a block, b block, c block. i want to talk to you at the end of this because it's really fascinating. >> good. >> so we may be -- >> 12 minutes in. >> or 6:11 breaking news, merck said it submitted its application to the fda for emergency use, it sings oral anti-viral medicine to treat mild to moderate covid-19. it showed a 50% reduction in the risk of hospitalization or death, it can be taken by patients at home shortly after a covid diagnosis. it inhibits replication of the virus, shown to be active against the most common variants we'll talk to dr. scott gottlieb about it and we'll talk to dr. christiana bardon, who was a speaker at some of our conferences. and m.i.t. undergrad, so get

ready. i'm going to talk to her about which department -- she has a masters and bachelors there. then a harvard m.d. suma cum laude. and so she's heading up a big company that does this, she knows about this stuff too we're talking about. but what i was saying that i was getting to was who slowed merck's covid remedy this is really interesting there was a whistle-blower that got the fullbacking of a lot of people who now have egg on their face rick bright at the bio medical advanced research authority and they said this was rushed through by the trump administration because of a relationship they had with a guy at emery remember we heard about ridgeback down at emory

university they were accusing this of being for profit my favorite line is from senator elizabeth warren who treated in may, the trump administration ignored warnings from dr. rick bright and fired him after he wouldn't go along with the president's reckless push for a miracle cure for covid do you know what that was? >> this drug. >> this drug it's interesting now this guy works -- was appointed by president biden and is back in government. the officials who backed it can now claim vindication, the journal says, but it's too late for the thousands of americans who died from covid-19 because this might have been ready a lot earlier. >> i did not know this >> so we got two more opportunities to talk about this

with dr. scott gottlieb and then also -- i'm excited to -- i mean, i don't know maybe she's in law school now or something >> next degree. >> doesn't have one of those degrees. but it's interesting i did a little research on her she's going to talk to us about this fund, one of the largest raised, 850 million for bio tech, it's hot obviously but she points out all these philanthropists like sean parker, they're all throwing money at bio tech and all want to win nobel prices. her point it might be better to find companies that have drugs that they're testing and see whether they work and commercialize these and take it, you know, maybe hit singles and doubles not necessarily home runs. >> new uses for existing drugs you mean >> not necessarily existing but things you can commercialize in the next two, three, four, five

years. >> i do know a lot of places where they are trying to find existing drugs thatmight work on things that you haven't thought of trying them before. >> middle development that are already. they're not, you know, still at the lab bench just doing the basic science of trying to figure something out. >> stuff approved for one use you might find it works well for something else and now because of the different screens you can do because of technology, there are lots of people trying to work and find a drug that might work for an existing -- an existing drug that might work under a different label use. >> i might have red too much the 850 million is going to focus on cancer and with all the excitement about messenger rna now because of the pfizer and the moderna drugs, which are really -- >> huge. >> -- miracle vaccines. >> and based on 20 years of work to get this. >> but it might work

messenger rna might work for a lot of things. and apparently -- i don't know the i looked at it too much. if you get it to exist in a circular form it might be more stable people's eyes are going to glaze over when i'm talking to this doctor when she's on be forewarned. >> be ready. >> drink some coffee. >> and get ready for a deep dive by the way, we have viewers who do appreciate deep dives. >> i think you're right. in the meantime let's talk about shares of chinese food delivery company meituan they're higher this morning. this is an important story chinese regulators fined the company more than $5 million as part of an investigation, believe it or not the fine was lower than anticipated they said that meituan pushed merchants to sign exclusive agreements so half a billion dollars was a lot lighter than people had been anticipated they'd be getting. that in itself is good news, not

just meituan but other hong kong listed china tech stocks jumped on this p maybe on the hope they'd get off more lightly than investors had an tis paid too. southwest airlines cancelled more than 1,800 flights over the weekend, citing bad weather and short staffing and blamed air traffic control issues that's a favorite when i've been delayed. but the faa said that's not the case, that's the go-to excuse, because other airlines are unaffected it comes amid concerns over vaccination requirements on friday the southwest pilots union asked the court to block the mandate. the union then shot down rumors that pilots were calling out sick in protest of the mandate and said there were, in their words, no fishofficial or unoffl job actions. i don't know what the story

behind the story is on this. >> i read a lot on this because this is fishy, if you look at the number of cancellations, it was 1800 and just north of -- maybe 1,825 flights cancelled between saturday and sunday. that's 28% of southwest's schedule amr had 63 flights cancelled because of -- that's 2% of their schedule spirit had 32 flights cancelled, 4% of their schedule and those were ata issues and weather issues ata said there were no issues with air traffic control -- i'm sorry atc, said there were no issues after friday afternoon. the union came out saying it wasn't that. but gary kelly said october 4th, last week, they would go along with the vaccine mandate it brought a lot of ire from the pilot's union there because they said they weren't consulted on that, and it's a holiday weekend. so shutting down the flights on

saturday and sunday, whoever's fault this is, it did have an inordinate impact because it's the holiday weekend. >> a miserable situation for people that are trying to get somewhere. any time i've been cancelled, i can remember -- i've told this story to my wife and kids recently back in college, i wanted to come home, big christmas things planned, and it didn't happen. it's like you can't believe it i was in denver, stuck, had to stay in a hotel. you're stuck you want to be there so badly and it's not going to happen for you because of this. and so you take 1,800 flights times however many people are on there where they had places for whatever reason needed to be there and it's not good. it drives home the point that like 1,000 miles is a long way and it -- we take it for granted. we walk on the plane, walk through one door in one place and then you sit on the plane for a while and then you walk out the door, it's like time

travel here you are in another place, you're 1,000 miles from where you were, and we take it for granted like it's easy try driving or planes, trains and automobiles, that's why they made the great movie with the great john candy, trying to get somewhere talking a thousand miles -- >> it's a bigger deal for southwest too because they don't have the same agreements with other airlines to say if we cancel flights you'll pick up our passengers. >> think how many people are like are you kidding me? my daughter's wedding, no problem. how many different things were there? what do you do displace 300 other people that are going to do something? it's really difficult. it's not good. >> there will be people looking for answers. what really happened this weekend and is it going to happen again >> wouldn't be surprised if it has something to do whith what you were saying. the unions wouldn't want to cop

to that would they >> it wouldn't make them popular. in fact the airline pilot association said no this is poor planning on the part of the company. >> southwest doesn't get a lot of bad pr. it's unusual cnbc is kicking off a new series on the struggles in the workforce. plus why goldman sachs cut its forecast for growth. "squawk box" coming right back ok, let's talk about those changes to your financial plan. bill, mary? hey... it's our former broker carl. carl, say hi to nina, our schwab financial consultant. hm... i know how difficult these calls can be. not with schwab. nina made it easier to set up our financial plan. we can check in on it anytime. it changes when our goals change. planning can't be that easy. actually, it can be, carl.

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goldman sachs economists cutting their u.s. growth forecast for this year and next. blaming a delayed recovery in consumer spending they cut the 2021 gdp estimate to 5.6% and the 2022 estimate from 4.4% to 4.0% the forecast also assumes that the global chip shortage won't improve until the second half of next year. i don't know that first one is -- really okay about $300 oil you predict >> super spent -- you're talking about back in 2007, right? the super spike, that was 2007 >> if they can't get that right how do they get a tenth of a

percent right? >> it's the direction. things are looking worse than they had been to this point. >> adjust your forecast for your investments because it's 5.6 not 5.7 according to goldman sachs >> things are not looking great, not anticipating the chip shortage is going to get fixed before the second half. >> act accordingly i'll look at my mutual funds, oh, no 5.6 not 5.7. make a switch. >> let's turn to another thing tough to forecast. that's the job market. the weaker than anticipated september employment numbers we saw. a reason for the jobs numbers being weak is employers can't find workers it's not that there's no demands, there's no workers. we're launching a new series called "the lost workers". we're trying to explain who the missing workers are, why they're on the sidelines and what can be

done to bring them back. steve leaseman has a look at who these missing workers are. >> evidence for the lost workers, it's everywhere and every day in american life it's in the help wanted signs of the windows for stores closed at odd hours. it's in the inflation numbers where they had to bid up costs and pass them to consumers and the lack of hiring is a lack of workers to hire three classes of people stand out, women, retirees and immigrants we go through those. of the 3.1 million fewer workers, 63% or 2 million is women. this is the reverse of the last recession, or most recession, where it's men that drop out women age 20 to 34 represent about half of the lost women workers. it's an indication that child care issues and school closings could be a major reason for their absence.

the number of americans 65 and over leaving the workforce each month ratcheted up to a new level. you can see it there with the onset of the pandemic and it's never returned, 145,000 americans in this age group drop out of the labor force every month. up from 93,000 that means an extra 1 million retirees according to our calculation. a decline in immigration, ban in the trump administration before the pandemic it increased during the pandemic with shutdowns of immigration. and eased only somewhat with the biden administration they haven't brought back all the immigration there was. david buyers tells me the lack of immigrant workers is a substantial portion of the labor market you're talking hundreds of thousands of fewer workers that the economy would have expected to be present but are not. a half million lost immigrant

workers. and that meant a decline in au pairs from abroad. which is part of the reason women aren't working it's all intertwined it's like the supply chain problem but in this case it's the labor supply problem >> you know, if you look at women in those age groups, i think the question probably becomes can they eventually be lured to come back to the workforce. same with retirees, it doesn't surprise me to hear people age 65 and up are leaving the workforce more rapidly than before because they are the highest risk when it comes to covid. you may think i was going to retire and maybe work part-time, maybe it's not worth it risking that in a covid environment. post covid do you find any of these demographics coming back >>, you know, you can't say somebody is not going to do something until you say the price they're not going to do it at, right. you're right, wages could be an issue.

safety in the work place could be an issue. and when it comes to women, i'm not decided yet, until we get the schools open, i want to see the numbers next month i'm optimistic about that, that when the schools are sort of reliably open, remember we did the story early in september that schools that opened and closed right now. >> thousands of schools closed. >> i think that might have been a deterrent getting people into the wforkforce plus i think a lot of women lost low paying service jobs and may not be in a hurry to go back to them. >> steve, thanks good to see you. >> my pleasure. coming up we talked about it, bio tech stocks pulling back the last several months. we'll look at the sector talk to christiana barden next she is the co-managing partner of mpm, which has done a lot a lot of work in bio tech.

it should be interesting right now as we head to break. a look at cryptocurrency, "squawk box"ilbeig bk. wl rhtac that's the thing about claims, you see. they don't happen on your schedule. i mean, take a chestnut, it doesn't just say “oh, beg pardon, sir, but is now a good time for a jolly bit of window cracking?” i mean, if they did, you wouldn't need a geico claims team that's available 24/7. but, near as i can tell, chestnuts don't talk.

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tastes great! high protein. low sugar. so good. high protein. low sugar. mmm, birthday cake. try pure protein shakes. with vitamins and minerals for immune support. somebody in there? with vitamins and minerals [ scream ] micheal myers is still alive. tonight, our family will kill him. i want to take his mask off and see the life leave his eyes. bio tech has been one of the busiest sectors for i.p.o.s this year, over 80 debuts, a busy area for private investment as well one of the sector's largest investment firms mpm capital just raised $850 million for its oncology impact as well. joining us now is christina

barden were you biology department at m.i.t. >> no i was an electrical engineer, if you can believe it. >> the department is still sharp. i went -- i did that as well so we -- i was excited to have you on i was kidding around said you went to get your m.d. at harvard and your mba at harvard and now you're at law school you have more things to concur, maybe not. >> many more things to concur, that's for sure. >> you have shepherded more than 100 companies through i.p.o.s and received fda approval for 53 drugs. becky and i were talking earlier how that works and you told some philanthropists maybe not try to hit a home run, but maybe try to get drugs through fda approval,

that may be the way to approach this business? >> the way we think about it is in bio tech the only way to create value is to get drugs successfully through the clinical trial and regulatory process. you need to get drugs that gets to patients and transforms their lives. so we're proud of the funds and investments we've made but ultimately the real proof is in the pudding which is how many drugs did you create that got to patients and transformed their lives. so the companies that we've started have created over 50 drugs in history, one of which was the largest in the industry for the treatment of hepatitis c. so that's really the ultimate goal of this industry. >> we're talking about oncology now, and that's the focus. and everybody, you know, gets a buzzword so we all know about mrna drugs i mean, it's obviously -- mrna

is sort of important for everything now it does seem to have some therapeutic uses potentially even for cancer. is that part of what you're looking for with this 850 million? what are the most exciting avenues currently in terms of treating cancer? >> you know, right now we're really in the midst of, i would say, a revolution coming out of the sequencing revolution in 2000 in 2000 we sequenced the first human genome that cost $1.4 billion now we can sequence every patient for probably $1,400 so from that perspective we know a lot more information about the diseases that affect us and like cancer and other areas and two, we can also use the genetic tools that we have to

create new therapeutics. so one class is mrna, as you know it's the basis of our vaccine technology, one of the vaccine technologies which has transformed the outcome of covid and i jokingly say this industry just saved the world with mrna so over the next 20 years i think we can use mrna for lots of other applications. and we'll see applications in that for a lot of different disease areas, including oncology >> how do things come to you do you still live in -- are you in chestnut hill you're in the cambridge area i was looking at how many time you must have spent in cambridge. that's where a lot of these startups are at this point i would say coming out of mit and harvard and the west coast as well. is that where you beat the pushes for new technologies, new companies? >> yeah. turns out boston has become the epicenter of bio tech right now.

there's a few reasons for that one is obviously great academic centers we have with m.i.t. and harvard. but two is the massive inflow of pharma r&d facilities into boston so we've seen know var dis, pfizer, come into boston with big research laboratories. and that's really transformed the environment within boston bio tech and that's why i think we are now the hub of the world. of course, we have the additional centers out of the san francisco, san diego, and now emerging bio tech centers outside of that as well. such as chapel hill. >> sure. the research triangle. yep. you mentioned private -- it is a public/private partnership i can remember that you have try to get grants from the national science foundation or from all these -- basic science is important. government can see a lot of advances in this area but you mentioned the private sector

is it 50/50? what do you think? >> yeah, so i would say when you think about the bio tech innovation, you know, if you start really at chapter one on the first page it comes from basic science research funded by the government by the nih, et cetera so that's where it starts and, in fact, that's why we want to encourage that and support that. that's where the next generation of bio tech companies are going to come from ten years down the road the discoveries are being made now in laboratories. so we're focused on making sure the next generation research is continuing it's important to get funding for these agencies on an ongoing basis. hopefully funding without too much conflict because it's so important for so many applications. >> doctor, just to your point of needing to get these drugs through the fda process. that's not easy. and my guess is, once you figure out how to do it, you have some sort of a recipe, some sort of

plan, playbook, for how companies can do that. is that the case has it gotten more difficult to get things through the fda or easier what would you say to that >> if i feel, i would say the modern fda agency really started with legislation years ago that provided the infrastructure and the financing that the agency needs to run effectively. and the agency is working incredibly effectively, as you saw with covid, when drugs were submitted to the fda we got pretty quick -- i don't think you can get any quicker, that's light speed for regulatory actions. so the modern agency is working very productively and collaboratively with the industry one thing to remember, that doesn't mean we're lowering the bar, right it means we're working together. so when the fda says i need x, i need x formatted in this manner, i need data y. i need you to make sure that the trials run like this with this many patients and this outcome that type of communication is

what we have right now with the industry and fda to make sure that our drugs can efficiently get through that process so i think the fda is working very well and effectively with the industry to get life saving drugs to patients as quickly as possible >> doctor, thank you a pleasure having you on i know you've done some work with our conferences, et cetera, it's great to have you and we can use you as a resource, hopefully, in the future at some point. >> great nice to be on. thanks so much have a great day. >> you're welcome. when we come back, big box chains are getting creative in combatting global shipping delays, chartering their own ships to get goods p what this means for the holiday retail season next as we head to a break, check out crude prices, wti up 2.8% this morning, $81.57 fuelling the highest prices in seven years in the united states the average price of a gallon

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welcome back, everybody. as bottlenecks in the supply chain get tighter, retailers are working on creative ways to get cargo ships unloaded and merchandise available to consumers. joining us right now to talk about the retail sector is jan

niffin and oliver chen, and jan, let me start with you. we've been hearing for months this is going to be a nightmare to try to get things delivered, get them gifts that people want. to people need to have their shopping done by tomorrow? >> it's a nightmare, you needed your shopping done by yesterday. however this is going to be the best holiday shopping season ever the retailers are going to do very well. because they're not going to have any unplanned markdowns inventories are coming down three to four weeks late if you see it, buy it. it's not going to be there or not be cheaper when you come back consumers are not in charge this season for the first time in a long time, the retailers are. >> the retailers are paying more, i read about walmart and target and some of the other big companies like home depot finding their own ships and making sure they're getting

their shipments but that costs more money does that mean they are no going to see the sales we normally see or are they taking a hit to margins unchts it's going to cost about 100 to 150 on the baseline. since they're not going to markdown, though, they will do better on the dollar of sales than last year or 2019 the question is how much product will not be there and will they lose some sales because of it. they will lose some sales out of it inevitably. but the best guys, people like walmart and target, they're getting delivery better than other people, so are macy's other big companies. small companies are not. depends on where you are in the food chain everybody is paying more and everybody is going to have some shortages but i think it's the best holiday season ever because the gross margins are going to be so good and sales are going to be good enough. >> who do you think is in position to navigate this in terms of retailers, who is not

who's caughtbehind the eight ball here? >> we're mostly excited about retailers with diversified business models, walmart, target, costco we likedistributed inventory models such as posh mark and inventories from different places and scale matters, too walmart, target, costco, they are chartering their own ships, that's a big deal, that will be helpful. in terms of risk factors, the mall will be an interesting place to watch apparel, footwear. apparel is fashion sensitive it's like produce, expires quickly. that's a risk factor there have been callouts from retailers such as kohl's and others where it's interesting to watch, particularly in women's product. >> the consumer is flush right now. we've seen that, they're willing to spend and spend more if it's something they want. how does that play into the luxury industry?

>> we are enthusiastic about the luxury industry, lvmh, they're some of our top ideas. inventory problems have been less of an issue on the luxury sector and the consumer is high end we also see consumers starting to get out, wanting to spend and express themselves that's a positive for luxury as well. although delta is something we're watching the momentum in china has been strong a lot of the luxury companies we cover are very global in nature. so we're enthusiastic. we think the luxury sector, as well as thinking about value will be strong catalyst. and we also think the consumer is in a good place with an elevated savings rate at 9.6% and unemployment at 4.8, those are positive things to watch >> before the pandemic people were about going out, doing

things, experiencing things and maybe less about buying things when you had the experiences taken away, you couldn't travel as much, they started to spend more maybe do you see that flipping again people wanting to get out there, travel, as covid falls by the wayside, as kids get vaccinated, you have the new drugs coming out, new cures in. >> i believe all of that will happen but not between now and holiday p p i think holiday is revenge of things. the higher end you are, the better they're going to be great. but so is ralph lauren, and capry, and pbh and levi. all the people that are the strong brands are going to be really good because it's still things that whole transition over to experience can't occur until next year. i spent a day at american dream. nobody is there doing the fun stuff. and i don't think they're going to -- >> you mean the skiing and the

amusement park, all the other things >> all that, yes the aquarium, et cetera. >> jan, oliver, gentlemen, thank you very much. >> happy holiday great to be here >> thank you coming up, shatner, william shatner, talk about him all the time, one of my idols, 90 is the new 60 bad news for andrea, that means 65 is the new 35 we have to wait an extra day for his trip to space. and later the take on markets as we prepare to kick off earning season and you can watch and listen to us live anymore on t chenbc app. we're kcoming right back.

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apple has filed a notice that it will appeal the ruling in the epic games case the company is asking for a stay on the injunction that lets developers add links to payment websites in their apps if apple wins the stay it could be years before the rules change takes effect they'll have to wait for years for a ruling a judge will rule on that stay next month remember in september a federal judge ordered apple to make the change to its app store but that ruling was based on california law, not federal law and people looked at it and said apple won on just every count on

that lawsuit we'll see. william cshatner the trip t outer space has to wait another day. shatner, at age 90, will become the oldest person to travel to space, he orridge nated the role of james kirk in 1966 on star trek. 90, the new 60 bad news for andrew because that means that 65 is the new 35. >> feeling pretty good are you >> if he's 90 and going to space, i'm feeling pretty good i have three idols now, him because he's 90. grassley, you see he's running for another six year term. >> i did. >> he's 89 and he announced it on one of his morning friday 5:00 a.m. runs >> constituents can come along if they show up and want to go on the run with him.

>> and then my third clint, 91. >> i was going to guess clint. >> still punching people out in his movies people driving a truck around -- >> you forgot about buzz aldrin. >> who also punched someone out who said you didn't really land on the moon. really don't you think i would know wouldn't we know what our tax rates are? wouldn't we know when people tell us -- >> you would think. >> you would think coming up the debut for james bond "to time to die" is in the books. what it means for the movie industry "squawk box" is coming right back hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene

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bond is back topping the box office making $56 million with one of the biggest openings since the pandemic began however, second to last in the bond films joining us now to discuss more, sara fisher, axios media reporter, bret lang, variety executive reporter sara, i didn't go but i had family members they were actually patrolling the aisles to make sure you are auto mask was on right it is not the perfect situation yet. is that what accounts for the

second to last opening in terms of debuts for james bond >> yes i think the pandemic has something to do with it. theaters are open but people are cautious especially this crowd. the type of people going to see james bond films tend to be older and they also tend to go to theaters later on i do think the test will be, yes, james bond did okay it sort of met analyst expectations will other nonmarvel films fair okay. do we have a box office that will hit the top of the year >> also the last in this time. he was a good james bond how is james bond holding up

he's not canceled? the james bond i know is canceled for like a million different reasons. what is this guy now he's rile nice to the villain and doesn't shoot anyone >> he's definitely not canceled, joe. james bond is still a timeless classic especially for that older theater goer that really likes this franchise the film does need to embrace and they are considering bringing in more divest cast members. it ranked high on rotten tomatoes >> it is 2.5 hours

writers are important. is this a good two and a half hours? >> three hours, actually it is a miniseries i think they probably needed to cut into some things it ate into the show times when you look at a film that cost $150 million to make and $ $56 million isn't bad but not grade if you need to make about $800 to $900 million to make a profit >> is it good? does it hold your attention? >> it is good. it is stylish but i personally

think no movie should be over two hours unless it is lawrence of arabia. >> power the dog, i hear it is a really a smokey type of a western with a lot of undertones and the best benedict cumberbach yet. >> yes don't bring the kids to that one. it is like the antidote to everything going on right now. it's such a feel good movie with so much empathy and warmth >> sara, any other ones besides bond i don't know if we can judge anything in terms. people aren't vaccinated masks are still mandated have they been able to make movies >> they have we know some like top gun has

been pushed further off schedule to 2022. i'm excited for the next marvel movie, the eternals, to release. we'll see if it gets that china release date joe, i don't think you'll see the box office normalize until 2022 that will be the big test whether or not theaters can come back to prepandemic levels this year was not fair to judge by it. we didn't have theaters open until may and june >> i was going to ask you about many saints but i guess i won't. i tried to watch that. david chase was a genius what happened there. the guy they had playing the stevie van zandt character >> it has its moments but nowhere close as good as the

sopranos >> and uncle junior, come on thanks did you see it yet >> i have not. sylvio is like he can't do that doesn't work >> not buying it just yet. merck is submitting its application for anti-viral medication to treat covid-19 i wanted to help protect myself. my doctor recommended eliquis. eliquis is proven to treat and help prevent another dvt or pe blood clot. almost 98 percent of patients on eliquis didn't experience another. ...and eliquis has significantly less major bleeding than the standard treatment. eliquis is fda-approved and has both. don't stop eliquis unless your doctor tells you to. eliquis can cause serious and in rare cases fatal bleeding.

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new this morning, merck will seek emergency use authorization for covid treatment and anti-viral drugs chinese tech stocks move on the week plus, the global energy crisis not going away anytime soon. will americans feel more pain at the bump probably not we begin the second hour of

squauchl good morning, welcome back to "squawk box." u.s. equity futures are now back triple digits. 100 points interesting session ended up slightly lower battled back and no one knows what to do with weak job's number >> remember, it was government numbers that showed real weakness it wasn't the private sector as much it had people thinking, okay maybe we are dealing with those issues bad. worst than anticipated everybody said okay. wait until next month. that will show us what is happening at the end of september and october. you'll hear people be quite a

bit more concerned >> did you see you made grudge you and lisa steve said whoa and you express shock. >> it was way less than we were anticipating famous >> here is what's making headlines this hour. this morning, merck has submitted its application to the fda for emergency use of oral or viral medication the drug can be taken by patients at home shortly after diagnosis like a pill. it inhibits the virus. dr. scott gottlieb will join us in a couple of minutes to discuss the news and much more >> also, the price of gasoline

jumps six cents. the average price is now $3.31 per gallon that's $1 more than a year ago goldman sach cut its forecast. cutting 2021 gdp estimate by a 10th a percent to 5.6% from 2022 from 4.4% to 4%. also assuming the global chip shortage won't improve until the second half of next year then southwest airlines canceled more than 1,800 flights blaming bad weather and short staffing also blaming air traffic control issues other airlines unaffected.

denver,and other places were the biggest hit. 28% of the schedule. the pilot's association said it wasn't them. there wasn't a job action taking place. the airline itself has been fairly quiet noise that last week, the ceo was talking about a vaccine mandate. air pilot's association were not happy they were not consulted on that this morning, shares of southwest down by 2% let's get a look at what is moving pre-market. dom joins us >> i hope you did too. aside from the fact that we have a very busy weekend ahead. we have a slew of analyst calls. among them, we have starbucks.

coffee giant is up analysts will keep it up from a buy to hold. the valuation lends itself from investors to start to leg in reinitiating coverage with the buy rating and $135 price. scale and coffee outlets to out perform general food service operations shares of so-fi up 3%. specialty fintec company getting help from analysts who initiate cover reasonable from an overweight rating based on a strong franchise so-fi has like lending. and a couple of down grades. telecom both charter

telecommunications and comcast, which is the parent condition of universal and cnbc they cited among other things changing landscape comcast shares off 1.25% charter communication up by about half a percent a few interesting moves in the pre-market the telecom interesting because they pulled back from the recent highs. >> dom, i know you can't read every note entirely but what are they talking about >> you could see some other issues and frameworks. raymond james' view said these moves could put pressure on these and change the ways they operator interact with each other. also this notion with both of these companies, there is a little more competition that has come into play now

maybe that's the reason why. but comcast, our parent company has seen a pretty decent slide the raymond james downgrade is interesting. >> comcast, that started with comments from the cfo. >> yes, it did >> just talking about the numbers of subscribers >> that was a couple of weeks ago. that was down 5%.

i wondered because of the big move >> coming up, booster shots rolling out for seniors and certain at-risk adults oil prices jumping going to speak to dan with ihs market the global energy markets. "squawk box" will be right back. my son romeo has sought counsel with some strategic advisors. they suggest that we marry our fortunes with...the capulets. blasphemy! fear not. these advisors managed one of the largest mergers in history, creating billions in value. billions? plus, they have experts in global trade. this merger shall be a boon for our spice business. and set a course for growth. here, here! friars, send word at once.

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merck has admitted its p indication for approval of the treatment to treat mild to moderate covid-19. with us now, dr. scott gottlieb. you probably knew all of this already. did you know about the whole rick bright saga did you realize it was monopurivir came out and senator elizabeth warren came out saying they are trying to hype this drug and it would have been sooner >> this story has been out there. it was in the whistleblower complaint. he had some residence everybody

a -- reservations about the drug. merck and ridgeback were committed to this. the only lament is that we didn't have more scale up early on, so we'll have limited supply. >> there was some type of financial incentive. all in the wall street journal what if we had this a year ago, six months ago >> i know the people behind this were committed to this early on.

again, i think where the government miss stepped, we didn't scale it up not just for the drug but the antibody drug. they also need to look at what we would have. there was a focus on the vaccines wasn't enough focus on the therapeutics that's where the government really played a role they are good at that. merck knows how to conduct massive clinical trial they could have done much more if one of these drugs was successful that's part of the problem >> the vice president said at that time, i wouldn't take a vaccine developed by this. it reads like the same stuff to

me if anybody is interested in the wall street journal. so, scott. how quickly until you can have your doctor prescribe this >> it is hard to say the fda has been reviewing this on a rolling schedule. i would suspect this will by in review but not quite as fast as some of these vaccine authorizations. >> i think it is an optimistic scenario they'll get that labeling on

>> what do you make about fauci's comment about halloween? christmas was questionable but now halloween is okay. it is okay to get candy from strangers. >> pref length has collapsed in the south. delta has run its course down there. the national average has seen sharp declines the plains is heating up in the midwest an west. parts of the country right now that are pretty shot we are not seeing a surge in the northeast. when it gets cold and people move indoors into confined spaces without masks we'll see that pick up

judge your status. i still think you can do things you want to do >> if you have mild symptoms and you don't know is it going to be covered by insurance or medicare? >> right now i think it would cost $700 so they'll contribute this. it will be allocated

that said, merck will have much more supply coming on board in 2022 they have 10 million doses i know the u.s. government has option and i assume they'll exercise that said, this may not be available much before the end of the year before we get to 2022, merck is ramping up supply. that manufacturing should have been sitting there hot waiting for this given the crisis we have been waiting for. >> a couple of years from now, what do you think it will cost >> will it be like tamiflu, will it be like, i got a little covid

coming on, i need a merck drug and you will get it and take it and hopefully it won't be $700 anymore. >> i think it will be something like that. i'm not involved in merck's pricing. a lot of work is being done with it because it looks to have the pan rna replicating. this will be good against flu, coronaviruses. i suspect, they will reform late this it is a big pill now it is not optimal from the standpoint of delivery

>> well i think certainly, this can be used along the drug no reason this would be synergistic. i expect the fda would consider authorizing it the drug looks very good the magnitude of effect would be found in a population already sim toe magnetic presumably if you move it earlier to say in the disease and lower risk patients that reality will be even lower rebound. >> earnings multiples. this is great.

we get mr. science >> and answer every one of our own questions of what we should be doing at any moment >> one company is looking to open the doors for the latino community. bertha joins us with a preview >> for patients that are spanish speaking we look at one telemedicine provider tackling that problem head on when squawk returns.

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nearly a quarter of hispanics say they have trouble reaching health care bertha joins us with a health care firm trying to bridge those

gaps >> launching a bilingual service. partnering and offering bilingual medicine and continued treatment but getting funding early on was difficult the pandemic changed getting the

funding is uncommon. total dollar amounts have more than doubled since then. access is all about relationships they've managed to tap into latino access >> how does that become access and the available to grow business >> for them, it is all right they have gotten capital from a latino firm and worked to bring in in person care into the home. >> the ama is looking at that and that's one of the things they want to tackle in order to

tackle health disparities. they want to make sure organizations for people of color are getting funded and those that are well suited are funded as well continuing oil prices continue to surge over the weekend. we'll have the latest on energy prices ahead wti sitting at $82 a barrel. aup about 3.3% this morning. >> and richard fisher joining us to talk about all things fed and maybe about his n'sos appearance on 60 minutes last night stay tuned this is cnbc new projects means new project managers. you need to hire. i need indeed.

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the price of oil continuing to climb

joining us now is dan vergin, author of "the new map because of the reason of the wind blowing the way it was anticipated. >> becky, this is an energy crisis different because it is led by natural gas and coal the prices you said, breaking $80. this all really started with china which was the workshop of

the world in overdrive what will happen in response >> one of the prices you will see those shoot up in oil is because those are substituted by natural gas and energy in europe and china. ultimately, you will see they are rationing electricity. they have a gasoline shortage of all of this will take a toll on economic growth. we've lowered projections on brother this year because of energy and the supply chain problems if this winter is cold, this problem does not get better but

it gets worse. >> i think this will require particularly on what is happening on the eve of the un climate summit will require a rethink. working to develop of the it also points out the fundamental thing about electiricity >> does the higher prices resolve that or is that not

worth it. the governments will have to do that it is the hallmark system no extra coal what is taught, it is a very tight market right now as we go through energy and timing if this is a security and you've got putin deciding whether or not to move forward with this. >> what is in putin's mind, none

of us know their inventories is low they'll have to worry about their own winter here in the united states natural gas prices is doubled markets will respond those signals prices at the pump will go from $3.25 to $3.50 >> talking about opec we've seen

a reduction of that as well. you are not going to see some of the same where you can flip a witch and turn a lot of those wells back on. how has that changed public companies are being very cautious we are going to see an up tick next year, we'll see substantial increases. >> what is your prediction in the next couple of years >> it really depends on

predicting the weather and the winds. l&g prices are six and seven times higher are c coal prices are higher we've lowered our productions because of this and the supply chain problems that will be another way this is resolved >> you will deal with crippling energy prices or you won't because of prices. >> or slower growth. >> always good to see you. i have a feeling we'll need to have you back to talk more about this >> thank you >> coming up, will fed chair jay powell be reappointed.

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new this morning shake-up at kkr. henry kravis and george roberts are stepping down as kkr co-ceos. chinese tech stocks are rebounding the food delivery company. eunice yoon joins us with more now. good morning >> good morning, joe

the fine was about half than what was previously reported a lot of people felt this one was very good for meituan. the formula was less punitive than those used for the aen ty communication behavior hit for 3% of sales revenue for the year alibaba, 4% punished for sales revenue in 2014. between the u.s. and china where officials would be over again. that relationship would be improved and lead to something

better a lot of people were still talking about the ipo process. still signs that the regulations would be forth coming still. securities daily, which is one of the official papers here did run a commentary today about meituan and said tighter regulation will become the norm in the future. >> eunice, thank you, everyday it is good to be able to check in with you. would you read anything into this from some of the other issues any softening whatsoever did it occur to xi live by the sword, die by the sword. you don't want to kill the goose. >> it is really difficult to say. a lot of that is because there are still plenty of

uncertainties ahead. one is something we talk about a lot which is the common prosperity drive end at the end of 2022, there is a huge political event which we would normally see a leadership change president xi is going to open the door to take a third term. because of that, we still don't know how president xi wants to solidify his power and everything will be perfect and how that will affect the private companies. >> joe see you again this week, i'm sure >> when we come back, former

dallas fed president richard fisher will join us. for monday morning, a little weaker the dow has improved a little bit. now down by about 66 points. this come after a down day on friday but an up week for all three of the major averages. the dow had its best week since june we'll be back in just a moment

some key federal reserve roles this week. here with more on this story good morning >> good morning, becky president biden has faced mounting pressure to pressure more up to more senior rolls to fill including two chairman and two vice chairs. president biden and top aids three times said he has confidence in the fed chair whom sources also adviced him to reappoint. one possible olive branch would

be to identify to the roll overseeing bank regulation the current vice chair sees his term for that role expire this wednesday. making fed picks focused on climate change and inequality. the following nominations have struggled to gain support. the nomination for the controller of the currency which is now in question after banking groups raced concerns with two key democrats on the senate banking committee that will process her nomination a fed chair nomination would likely need to be announced by early november to win confirmation by the february start date of the firm the former trump white house sought to wait to the last possible moment before announcing powell on november 2, that was later in the calendar year than predecessors had made

those announcements. the president will engage in careful, thoughtful process and appoint candidates that would be most effective in monetary policies >> there is a lot of other things congress, the zmart are considering right now. a lot of chaos too what does this mean for the nomination of the chair and whether powell gets reappointed? >> the stacked legislative agenda makes this more of a question keeping fed officials on the fed and perhaps doing the musical chairs of moving them into new roles. the budget process of spending as well as the debt limit. they had incredibly time

consuming. that means perhaps some of those vice chair nominees or just a simple open seat for the fed would get delayed until early next year but the senate would likely priorities the consideration of a chairman nominee because of how criticaln nominee because of critical role that it is richard fisher is former dallas fed president and cnbc contributor. there's some anxiety that's starting to well up a bit, richard, especially when i had elizabeth powell take jay powell to task when he came before the senate last week coming out in such a manner i think would -- >> she has her split couldle needs she was stress strong in

her criticism. i thought jay policy held his tongue well. i think it would be appropriate to reappoint jay powell as dallas chair he as a lot of other things he's working. and, of course, governor brainard is a likely natural replacement. she's also been on the committee, by the way, she chairs the commit tee i've been inside i've got supervised, they go through the federal reserve also the behavior perhaps moved lael

brainard into that position and then perhaps randy quarles >> to not be put in the middle of things -- including these trading scanned always that have come out with three of the different members there that i industry -- just looking at this historically, how would you describe it now? again there are rules i think powell has announced this properly there's an ig investigation of these with, of course, the

biggest one, my successor. but, again, you have to remember, the way it works in the system, there is a committee of the board that goes into this every single year, so it wasn't just 2020. i think governor brainard has chaired this committee for the last four years, so they would have seen red flags coming up through that committee, and i guess -- i think they're handling it properly that the old rulings may no longer apply but i hate to see politics injected into the fed, and i do not want to see it injected into the fed. it would have looked like politics have superceded the

need for -- >> i want your opinions on professor omarova, and some people in the media have had some fun about it. there was a movie that was based on her work. i'll just use the other word, but the movie spelled it out, the bay it's called. where do you think the biden administration got the idea -- is it senator elizabeth warren,

very, very controversial and very, very progressive, and very, very left. you know, people have used it thatted biden administration is nothing like he promised on inauguration day, but what are your comments on this? you don't need to walk on eggshells. >> i'm never walked on egg shells, as you know, joe >> dunk this was a good nomination >> no pun intended, she came out of left field. i know nothing about her she'll have to confirmed, and will have to be confirmed by the senate so let them decide, but to be honest with you, joe, i know nothing about this woman inch. >> i -- you don't know someone that's in the biden

administration's ear to put forward someone? >> well, obviously i didn't like the way she addressed the decorum in the senate. but she does have a lot of influence in this administration from what i understand, but these are confirmable position, that the president proposes and the senate disposes, and we'll have to see how though individual will work her way through. >> i saw your son last night on "60 minutes. that's something else, this deep fake world, but your son is probably the best known of all of the actors who have portrayed -- >> that's my son right there, myles. he's an excellent actor, by the way, done all kids of shows from "gossip girls" and "mad men" and

other movies, but the purpose of that was to show the damage that can be done or the dangers of this whole process seeing what they have done with my son's face, because he haus certain mannerisms i found that all to be kind of scary, except the part i can watch my boy in which he's the actor and super-imposed this this artificial intelligence creation of characters, even if they're not real characters. we'll have to see how this infects politics as well i hole t i hope they adopt do it with fed presidents or oral official, by the way. >> thank you so much for your time >> thank you bye-bye. on youtube, you have to look him up when he's running some of those things, he wrote it, put it together, it's hilarious

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you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire good morning, futures pointing to slightly lower opening on wall street we're about 90 minutes away from the opening bell the dow had its best week, though, since june

we're going to talk about a big week ahead for earnings, it's time, four times a year, september is over. that means all the companies have put together their numbers. over the next three, four weeks, we'll be swamped we'll go through friday's big jobs miss and what that main means with allianz mohamed el-erian. and you're not free to move about the country, southwest is shaking off the trouble, and we'll speak with an expert about what went wrong. the final hour of "squawk box" starts right now good morning, everybody. welcome back to "squawk box" here on cnbc i'm becky quick, along with joe kernen

andrew is out today. check on the the futures you have seeing some additional weakness below fair value s&p futures are down by 20, the nasdaq is off about 20, of course, this comes after the weaker than expensed jobs numbers. bond markets closed today because of columbus day, about you around the go the german ten-year is still in negative territory, but hit its highest for the year higher yields still in negative territory in germany >> that has to factor in it's the fed and that, don't you think, becky it's a global marketplace and the extraordinary measures we

have seen from the fed i always get this next read here, becky. have you ever looked into this thing at this hour with the guy that produces this hour? it's like a volume i'm going to read volume 1, 2 and 3 of these -- >> it's the news. >> you want me to do it? >> no, you do it. >> here are some stories that investors will betalking about today. merck and its partner ridgeback announcing the submission of an eua for the oral covid 1 treatment. that follows positive study results that we talked a lot the pill could be ready for americans by late this year, and pill is the operative term with the regeneron, you have to feel you're ill, get test, got to the hospital and get it infused. this, you just take a pill

southwest airlines cancelling more than 1800 flights, citing bad weather, air traffic control issues, and staff shortages. it disputed speculation that the cancellations was due to pilot and employees protests of the vaccine mandate. i don't know, though we'll see. where there's smoke there's fire, usually, but the union denies it. we'll talk more about it later this hour. apple has asked a judge to delay changes to the app store the changes stem from the cases involving epic games, scheduled to go in december. apple is asking its appeal to be played out >> nice try, nice tries, it's only 8:04:34

>> man. >> good thing we have other things to talk about, too. mike santoli, again, yields are climbing that's generally good news what do you think this time around >> probably will continue to be, but it works against in other big markets. just that general sense that the jobs number. as federal bank globally -- i would say a welcome bounce, but not necessarily the most persuasive one 4400 area, 50-day average, all this technical stuff, that's playing out. we're up 2.5%, still down 3.5%

from the highs, and looking like maybe a bit of an ebb -- sort of a little test to the down side this morning talk about opposing currents we have the banks, they have broken out to a newhigh, but semiconductors, another area of the market that you kind of want to see performing well, if you want to believe in the force of a rally. they've been looking like oil and water here you had all they are periods and we're in another one right now, so it shows you a reflation idea, we have this rotation going on, it's a bit of slippage along the way usually when a market is in gear, you would like two groups working together and it's not mapping right now in terms of whether we saw enough of a bit of a flush near the down side, take a look at the volatility index it goes back into the middle of

last year, which i wanted to point out. you've had these periods where you had a spike like this on the chart. it does usually mean people are a bit of concern people rushing for hedges, and not really matches that, part of the reason for that is the sector divergences and that, when you have push/pull below the market surface, the vix gets suppressed as we did see back in october of last year, one spike, and then another one away it, and we weren't quite out of the wides i think this is a mix of factors that are kind of operating on the market now, becky. >> i was trying to figure out when it was, october of last year when the vix spiked to, like, 40 what that that then? why don't i remember this?

>> we had a big correction in the nasdaq stocks. we had pre-election jitters that seemed to get people nervous, then the election, then the vaccine results coming all at once, and that's when we were off to the up side october 30th really was the touch point when the cyclical stocks started to rip and the rally that carried through august got started the second spike, was that january? >> yes, that was late january, exactly. >> okay. mike, thank you. we'll see you later. the how expected to okay an increase in the debt ceiling, but it would only covered country through early december, where we might have to go through last week's trauma all over again kevin brady joins me now

i find it just boring to talk about, congressman i don't think it's going to happen i think cooler heads always prevail, when push comes to shove, we have to deal with it what i think is more interesting or more important to talk about are both of these bills, the infrastructure bill and then whatever you want to call it, the spiritual infrastructure bill, the metaphysical, which is $5 trillion, not $3.5 trillion if we go down, they'll just shorten the term of the entitlements for a couple years, where they will be renewed, but they were unable to get it through. will anything change by the end of october have you noticed we'll do it by halloween, trick or treat? i don't think that's a coincidence, is it >> maybe not, joe.

we have known this day was coming for two years, no discussions on how to pass it, but yeah, it will be done tomorrow secondly, look, i think this jobs report on friday didn't help democrats find consensus. the president's almost a million jobs short already of what he promised from his last $2 trillion covid package we are not seeing any progress in the worker shortage on main street and all throughout the supply chain obviously prices continue. we're on track to hit a 40-year high on prices and while wages are going up, families seem to be falling back each month, so i think this makes it more difficult for them, especially with americans losing confidence now in the president's economic leadership that approve is not in the 30s range. i think what moderate democrats

are left, i think there are good people, but i think they now know they are on their own the president doesn't care about them certainly their colleagues don't care about them. i think at the end of the day they hold the future of whether we see they trackses in $5 trillion of spending i think it's a 50-50 shot this collapses. >> do you think the virginia governor's race and new jersey, do you think any of these elections between now and when you radio he visit this deal, do you think that has any impact on whether the president's agenda gets passed in full? could that throw a wrench in it? maybe the country says, we didn't sign on for this. you lost people in the house the senate is 50-50. how do you completely reset the american economy based on that type of mandate?

>> it does have an impact, obviously, whether it's special elections in congress or these governor races, you want to know, is the president a drag on nigh reelection results? certainly now it seems to be the case again you're only looking at two moderates in the house, and 15, 16 in the house these approval ratings, the border, the economy now on competent competence in the 30s. many of them are very good legislators who now know they may well not come back >> do the progressives want to pass the infrastructure bill do they see that or do they really not care unless they get the full -- they don't even want to go to $2 trillion

they say think already have come down would they do it long term? >> yes, i think they would without blinking they say now is leverage, that's all, andthey're going to keep holding that leverage. they are very clear, they could care less about the moderate democrats. they want that $5 trillion package. you can do as much economic damage, as much as well tear fate expansion in $1.5 trillion as you can in the full one so they know -- they just turn the dials, change the years, they can get what they want, but including bernie sanders, who just refuses to back off this massive number that's why i think the odds aren't good that they can come together, reach consensus by the end of this month. i do think if the spending and tax bill collapses, i think be

the end of the year you will see a pretty significant infrastructure bill, but the way it's linked in the house, as we say, republican supports roads and bridges, we don't support roads and taxes. in the house, they are one and the same you won't put numbers on it, but manchin and -- now sinema is a wild card, but what is manchin's body language telling you? he said he might go to $2, $2.1, but you don't see many democrats sitting behind majority leader schumer burying their hands in their face he's pretty strong in his convictions. he's not totally folding >> you know, he is -- he's not folding, and i think, too, senator sinema is also a real, sort of barrier to this huge

explosion of taxes she's put policies to it she doesn't think we all to be raising taxes on businesses coming out of pandemic especially not on small businesses she's been pretty clear about this my understanding is she's had that list of policy to say leader schumer for quite a while. so i think the two together are pretty effective there, but in the house, i will tell you, they don't have the votes yet we've had two democrats who voted not on the overall packaging committee. we need three. do they hold and do other moderates join them? i think that's the key test here. >> one good shot here, congressman. the wealthy have done really well in recent years whether it's back the fed has been at vierso or whatever, the wealthy have widened the gap can you come up with a way to organically grow the bottom in

something other than what the democrats areproposing here? you understand why they're doing it they figure this group has made all this money and dorn really, really well. let's use some of these things to help people with child care, to help with education, some of this vast wealth that these people are just sitting on, let's move it over and, you know, make up for some of the last 20 years where people have been left behind why not do that? >> so a couple thoughts. one, as you know, through this pandemic it really has been the top ten, 12 or so whose stock numbers have gone up dramatically that has skewed all of this. secondly, we know when we did lower taxes, drive the economy and encourage investment, from the wealthy to the smallest businesses, we saw those social in income equality, we saw wages

go up for a family in 2019 than all eight years of president obama and joe biden. i still believe driving those incentives actually reaches the social goals that we share with the democrats. >> congressman, thanks, always a pleasure. >> good to see you, joe. >> good to see you. >> thank you, sir. when we come back, we'll get you ready for a big week of earnings with mohamed el-erian and it was a weekend of expectation did the long-delayed james bond movie hit a succeed at the box office? this is cnbc flexshares are carefully constructed. to go beyond ordinary etfs. and strengthen client confidence in you.

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it wasn't is the record setter that many had hoped for julia boorstin joins me with more still, i think, julia, wouldn't it with masks and we're still worried. it's not going to be like five years ago when a bond film opened it couldn't be people are trying to figure out how fast the box office will

bounce back. james bond's "no time to die" brought in -- they expected $60 million. and some had projected $80 million more for the weekend the explanation for the short didfall is -- the running time and the older audiences are less likely to rush out to watch a money on opening weekend they're hoping that means the film will hold up better than the superhero fare that tends to bring in younger movie-goers the global take is quite good, and it hasn't opened yet in

china, and this is the first time it's topped $100 million two consecutive weekends, to one other bright spot is disney is hitting a milestone, on at least we're seeing signs of life, jo, in the theatrical movie-going business. >> i think of you an a cine-phile the new york movie fest tfestivl is going on. >> i think it's going to be an interesting fall, because there's, of course, going to be the oscar fare, but some of these films will be available in theaters at the same time they're available streaming. remember warner bros. has decided through the end of the year they'll have a simultaneous release strategy they have "do you know" calming

up there's a new movie called "duel" coming up i think that they're feeling this out, joe. >> difficult "duel" do you remember it, dennis weaver, wheeler, do you remember that -- >> not that one. i thought i knew all the spielberg's movie. >> you know that one >> i don't know that one, either anyway, when we come back, we'll talk about exactly what happened to southwest airlines over the weekend it canceled close to 2,000 flights. other airlines didn't seem to

have many problems at all. we'll deal into the story when "squawk box" comes right back.

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vanguard. become an owner. southwest cancelling more than 1800 flights over the weekend, or more than a quarter of its schedule. they cited bad weather and short

staffing the faa said there were just a few hours of flight delays on friday, nothing the rest of the weekend. other airlines didn't see the massive cancellation as southwest. on friday, the southwest pilots union asked a court to temporarily block the company from enforcing the federal man dade the union shot down rumors that pilots were actually calling out sick and said there were no official or unofficial job actions over this weekend. joining us is dan any tashier, who leads the union that represents pilots who fly for american airlines. dennis is a pilot himself. this was weird they had to cancel 28% of their schedule over the weekend. other airlines didn't see anything like that amr had something like 2%, spirit maybe 4% of its flights were canceled. what do you think happened here? >> it's not that uncommon.

unfortunately we've seen management teams unable to connect their pilots with the airplane we at american have experienced all through the summer, we're concerned about the holiday season coming up for all the same reasons wee seeing the same crush on the amount of pilots that are able to connect to the airport. so southwest admitted, they blamed everything except their management skills. the pilots acknowledge that. we're experiencing the same things here at americans we didn't have as many obviously a cloud was over southwest, but of the cancellations half were due to the ability for management to connect pilots with the airplanes. we have to have this fixed before the holiday season, and that's what we're doing at the union. 1% of flights -- for american, they canceled 28% of their flights. that's a really big, big

difference you think this is just management's -- >> cite 28% of american, but it was southwest. >> i'm sorry. >> no worries. no worries we try to go for zero, and certainly any of them we don't want it because they couldn't connect the pilots to the amps clearly southwest was an outlier in this, but with the swap of pilots that i'm talking about, we had experienced at american airlines over this weekend, the cloud was over southwest operations i know the pilots over there they want their airlines to pralt reliably, because they're missing time at 4078 as well same with american it's a convergence of failures it's not because the pilots aren't trying to get the job done. >> what about this timing just with the vaccination mandate push united has taken this most seriously and said you're going to be gotten rid of if you don't comply with the vaccine mandate.

how big of an issue is it for your pilots union, and for southwest, too, they say they're unhappy with it, because the company didn't negotiate with the union before this putting this mandate on? >> that's the devil in the details. i personally have chosen the vaccine back in march. we have 4,000 pilots yet to make that choice. this seems to be a bit arbitrary. if you're a federal contractor, while not making a decision on the vaccine, but leslie joseph broke the story that the regional affiliates, which sometimes fly over half the schedule for american, delta and others, when you buy a ticket on those airplanes, you may find yourself on a carrier that isn't mandated that is to point out how inconsistent this is now, the ironic thing is the aircraft is safe it's safe to be on

so we have tried to at apa is propose an alternative means if you have natural immunity or frequent testing, or just like many other transportation, we're trying to find a solution. this is all going to crush on the important holiday travel season at american on the 24th of november, the day before thanksgiving, the busiest day of travel for us and retch generation, they're going to say, hey, you're fired it seems like a rush to comply we're hopeful to get an extension or they alternative means, but it's inconsistent and not supporting the recovery that we all fought for. >> what about the other side of that maybe the airlines thinking i want to make sure my employees are vaccinated not only to protect the passengers they may come in contact with, but more importantly, so you don't have a great number of pilots out at any given time if there's another wave of covid that comes

back >> that's a great point, but the idea, our passengers are safe. we have proven that throughout the pandemic our pilots have flown into new york during the darkest of times carrying medical supplies and professionals, doctors and nurses we've gone out and taken out the afghan refugees when called upon it's safe and we're getting the job done this type of -- doesn't seem to have a logic chain for making it better we incentivize the vaccine at apa with management. we came up with an agreement, but we have to deal with the reality this is all coming at a really unfortunate time. perhaps it's times, as we say in the airplane, perhaps it's time for a no-fault go-around, so let's get this done right and make sure we don't undermine the recovery. >> what about what dealta has done, which is to say if you're

not vaccinated, you have to pay $200 more a month for your insurance. when they made that decision, it was almost all unvaccinated people going into the hospital, and it was costing 50,000, on average, saying you should by the ones more not vaccinated >> that's their choice they made a commercial decision, but the reality is these are human decisions. just like -- you know, we have 70% of our pilots who are vaccinated that's higher than the general population this isn't really a debate about the vaccine as much as how to get to the end state, where we're all flying these aircraft that our passengers so desperately want to be on. uniquely at american, over the next three weeks, we'll have informational picketing calling out management's inability to schedule this airline so we can get the job done for our passengers that's what we're trying to get at here. we'll just have to bring up the

volume, but we will be heard and we will get this fixed, but we want to make this a time to fly versus the james bond movie that's out we need management to join us. >> what is management not doing right in terms of the scheduling what are they getting so wrong >> number one, they don't have the assets in line we called out in the spring, you don't have this together for the amount of flying you want to do. for instance, american just casually announced and we're happy to hear it, more than double hiring for next years it's on the backdrop of instructor pilots, many going back to the line because of the paycut they received as an instructor pilot and the amount of days on >> they just don't have enough staff when there's problems along the way? >> yes they actually do have the supply they're not utilizing us

it's that frustrating. i hope i'm exhibiting that in my comments we need the tools from management >> good to see you today, dennis >> thank you. allianz adviser mohamed el-erian joins us for the earnings weeks ahead you're watching joe biden on cnbc wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq

the labor department says less than 200,000 jobs were created in september, well below the estimate of 500,000. joining us to talk about that and more, mohammed ellerial, also the president of convene's college in cambridge mohamed, that was a darn good number for where we are in this pandemic and how quickly we snapped back then again, there are a lot of openings that don't seem to be getting filled and that's where the dialogue comes in, it becomes politicized. are there too many reasons to stay home still? is it just safety issues about covid? what is really going on in your

view >> the answer is we don't know, joe, there's also labor force participation that's gotten stuck, and that's a concern. i can argue it's either covid, which means it's reversible, or structurally there's something going on in the market my inclination it's more the latter than the former, but we have to be dead hospitals. we simply do not know. initial, you're getting conflicting indicators, depending on whether you look at the surveys, but we don't know what is clean is inflation that's going to be more and more of an issue for markets and it's going to separate winners from losers in a significant way. >> it's not a great story, either, mohamed, because any wage gains we see, and we're finally seeing some. maybe when there's a shortage of

workers, you think, okay, that might be one of bright sites, but if it's eatsen up by inflation, oar actually losing ground and that doesn't help anyone. >> it doesn't. my feeling is we'll see wage growth in excess of inflation. for the first time in a very long time, people are offering all sorts of bonuses that are soon going to translate into the whole lane ladder, so we can see wages going up, and you and i will be talking about not just the level and participation of inflation, which is way beyond the transitory camp, but we're going to talk about how different sectors and different companies react to that that's why it's going to be why isn't

the down side toe that that's where you start saying wage inflation is where you start worries about it really getting out of hand? >> that's why no one likes to talk about supply disruptions. no one wants to talk about stagflationary winds, but fundamentally, joe, here is the situation. we have cpi at about 5.5%, ppi at about 8.5%. that means either companies increase prices to cover their costs and/or they suffer a reduction in their margins so there are certainly companies that have pricing power that they're going to be able to take on the higher costs. the others who won't certain sectors, financial that are going to benefit from the

high interest rates that will follow, even if the fed tells us that they won't. others not so this is going to be a great time for stock pickers, and figuring out which are going to benefit, and which are going to lose. >> so staring us in the face, another earnings season, mohamed, and it's been pointed out peak earnings growth, we're probably on the other side of that will that affect stock prices in the next six weeks, do you think? or the earnings will still be pretty good, i would think, compared to last year. >> the earnings are going to be good, but what people are going to be looking at is something i've been talking to you for months, which is how sensitive are the companies that supply the structures what is it going to tell us about the ability to source the inputs what will it tell us about the ability to get the products to the consumer the more multinational they are, the closer people are going to

be listening to this so i can guarantee you, the headlines will be dominated by how sensitive are companies to supply disruption, and how much pricing power do they have >> one thing you've been right about, buying the dip, man -- and there's times when i think, okay, mohamed will have to come on and revise that, and that's still happening. you don't see any end to that, near term? >> we saw it again last week. >> we sure did. >> you have to acknowledge it's getting weaker, because we've had a small policy mistake, which is a complete mischaracterization of inflation. the fed has done no service to the real economy, to the political class, to markets by hanging on to this notion it's transitory, it's transitory, when companies have been telling guys, it's not transitory. we're planning on these things

to persistent next year. now, suddenly there are questions starting to form not only about tapering, which is going to happen, but i'm not so sure the fed will be able to separate the taper decision from the high interest rate decision. that's what they'll try to do. the more the inflation dynamics get out of control, the harder that will be, i expect to buy the dip, ffomo, and the stock -- >> okay. are you here are you in london? >> i suffered through the game i suffered >> do we like zach do we like him he does some dumb things, and i like donald, but what does it get? we just can't get it right. >> you saw some of those passes earlier on i can throw better than a couples those. what was that? was zach -- did you notice

>> i've been noticing every week, joe. it's painful, but let's talk about the bengals. can we have your quarterback >> i thought he was hurt you know else who took it heart? the giants guy, man, that was really scary to watch. >> your quarterback fell and when he hit his head on the ground, i thought -- >> that's what i meant thanks, mohamed. we'll talk soon. >> thank you. when we come back, jim cramer's first take, and also talk about bank earnings coming fast and furious this week 'she happy his team won yesterday stay tuned "squawk box" will be right back.

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let's go down to the new york stock exchange. jim cramer joins us now. you like being wrong about the eagles, don't you? >> yes, but it was three quarters of the house of pain and a fourth quarter that looked like they were a real team not quite sure what to make of them you have a tough quarterback that kid is tough. >> he is tough he's pretty good >> that was the most exciting game i have seen in ages >> that was nuts, man. five missed field goals -- >> everyone was texting. there was one where the bengals were celebrating, and i thought the game was over. >> i was so conflicted i needed 51 points on the over i'm so screwed up. i'm ready to hang it up. >> oh, man that was close. how about the lightning delay

last night they had a lot to talk about i got to see the whole eagles game again it was fantastic. >> tell me about earnings. did you see comcast on friday? were you privy to what was going on on friday >> and another downgrade today i think everyone is saying telco will move in what telco is going to move in i think that's a bad chart i do thinking this -- everyone is just freaked out about nothing. there's absolutely no data to indicates that the telcos are mock in aggressively at&t has got not so great balance sheet. i don't see t mobile, i don't see very much doing it with ver verizon. i just don't like the calls, but they have two in a row, so people will think it's real. >> what do you think happened with southwest really, jim >> i think it's a labor issue. i think southwest is not -- it's

not the company we thought it was, joe it really isn't. >> we always did they were like teflon. >> yeah. i just think this is not who we are used to, and it is not one i want to buy. i like at delta as being the one to buy it's a much better field to it these days 24% international, that's good i'm not going to cry on national tv about southwest it's not my style. >> still, they have a unine relationship with the public, where you depend for safety and if you've got things you've been looking forward to for a long time, 1800 flights become canceled, that's totally unacceptable. >> you're right, just totally unacceptable it feels like a sickout to me. i don't like that we don't have the full story it's not like the southwest

style. i want to know what really happened they should come on at 9:00. >> thanks, jim we'll see you in a couple minutes. >> absolutely. we want to remind but the new cnbc investing club. take it on where the picture thing is, point it at that, and then you can just see exactly how to do all of this with jim cnbc investing club, it will take you right is there. it's magic to 4% from 4.4% for next years, goldman citing the escalation of fits dalles support from congress and a slower than expected recovery in consumer spending. joining us to talk about where investors might start looking from is anastacia omaroso. and kevin nicholson, co-chief

investment office at riverfront investment group anastacia, what is working right now? >> good morning, becky the reopening trade is very much continues. i think it would care us into 2022, and what i really like about the reopening trade is there are many different players through which you can execute. clearly there's the energy trade. i think the oil will continue to be $70, $8 a barrel, and then looking into 2022, i think we're going to see a meaningful snap back in our international travel and also return of big travel. one thing to throw in the mix, which by the way, has not been working necessarily as of late, but this is what i would want to buy on the dip is

semiconductors, because the consumer demand, the corporate demand for things like 5g will still remain very strong for later this year and into next year there's a lot of catching up that the semiconductor space has to do. >> anastacia, part of the call that we heard about goldman's concern about the slowdown comes from this idea that we're not going to get through these shortages. it still will be a problem into next year. >> that's right, it's going to take time, probably six, 12 months that's why i would focus on a sector like semixhuktor, whether it's auto production that's likely to come back, whether it's the 5g cycle, we don't have a teach mand issue, but we know there's shipping 40, 50% below what those demand estimates are right now, so as they rebuild, i think that's exactly the kind of sector that will have the pricing power, and we're seeing

that right now. >> kevin, you like domestic stocks, technology, too, but you also like the financials we'll start hearing from the big banks this week. >> we're going into a rising interest rates. >> and they tended to do better as the fed finishes their tapering, and begins to start to raise rates that's one of the areas or sectors we like right now. the taper will start, but you think this would be a.

>> thefact we've had two over the last couple weeks they're going to be replaced by dovish members of the fed we're also going to see who the nominees is for either way, the composition of the fed will be more dovish than it had been prior. and the fact that fed chair powell, even if he does continue, he's been on the more dovish side and wanted to see what the data does so i think the fed is going to continue to be do muchish for the foreseeable future >> thank you both.

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dom chu joins us with some of the morning's premarket movers. >> joe, we've been talking a lot about in the rise in commodity prices, so if you look at some

of the biggest s&p 500 movers, it's freeport mcmoran, nucor up, and so watch the commodity, energy commodities that will be a big move. also cryptocurrencies, bitcoin up about 2%. 56,514 or thereabouts. ether also up, and algoran, down about 2.5 ticker, coinbase and robinhood also among the most popular watched, and becky, from friday's full session, among the top 125, tesla up there in up top ten, wti, facebook cracks the top 10 or 15, and that stock doubled on trading on friday

beck what, back over to you. >> wti will be the one to watch. dom was just showing you, we did see oil above $82 a barrel, and that's why the energy stocks are doing so well. looking like you're almost back to the flat line, so keep track of that. that does it for us today. joe, i'll see you tomorrow. >> i'll bell here. >> bye "squawk on the street" is next good monday morning. welcome to "squawk on the street." i'm david faber, along with jim cramer carl has the morning off u.s. bond markets are closed in objectance of columbus day, taking a look at futures right now, you can see we are looking like we're going to have a slightly lower open. our road map does start with big tech shares. they're declining a bit. energy shares are up inflation