>> 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 fears?

yeah, we've got them what is driving today's market action we'll talk about that, with earnings season that starts in earnest. >> plus we're going to keep an eye on shares of southwest it looks like they'll be down, the airline cancelling nearly a third of its flights yesterday, and nearly 2,000 flights for the wee weekend. kkr's cofounders s.kravis and roberts are stepping down, effective immediately. but, jim, let's start with the markets, of course, something we've been talking about for quite some time, which is a surge in energy prices they've been volatility, but generally the trend has been up and up sharply, more so in europe than even here, but we have said and we are keeping a close eye on this, as we inch closer and closer to colder weather, and oil as well, above

80, so energy has been performing fairly well tech has been kind of a bill of a roller coaster lately. >> there's a short just four paragraphs with barclays, okay the stagflation threat this is what people -- what happened as to the stagflation scenario we know that stagflation has historically been the curse of the market the fact that oil is so visible is incredible to me. there's just no supply and, it sounds like demand is through the roof natural gas, by the way -- -- -- >> you're looking at a note from goldman sachs, cutting that you are growth forecast, just talking about what they expect to be a slower than expected return of consumer spending, a delayed recovery. >> there were a lot of ceos i

talked to over the weekend, who were frankly mystified by where people are, and whether this is a new phase of knowing activity. but they'll relate negativity to things like washington i don't think that's true. i think that where you're going to get a breakout later in the month, you're going to realize that thickets aren't as bad. maybe oil stabilizes when you start seize knows, all right, guys, it's here to stay, that's what you need you need everyone to feel like it's game over i start feeling that from the research the research is pretty negative. >> yeah, we have mary daly talking about inflation as well over the weekend on one of the morning shows. take a listen. >> everyone is feeling the rising prices for energy, food, basic services that's painful

they aren't used to see it, it's eye popping in some categories the keel is if the spending we do as consumers is coupled with the expansion of supply, that we're going to be fine, but if we continue to have supply bottlenecks and keep spending, we'll have more inflation. >> san francisco fed there, governor. >> look, the epicenter, they said, listen, there is software that can make this things better they described a level of disarray, almost as if it's like -- do you feel season two of "the wire." >> i do. >> it feels a lot like that, people are just not showing up, not delivering the right things. you end of feeling like it's not modernized at all. >> well, that's the key. we had great reporting on it last week from our forte

correspondents covering the move of one good from china to the shelves here in the u.s., but one of the keys, i remember, jane wells' interview with the head of the ports was, we could work 24/7, but then there's no trucks >> they should be working 24/7, they should try to figure out a way -- blaming the truck drivers, they felt this outfit felt was not the way to go >> all right i need you to put it in some perspective. urn talking about costs, more concerns about inflation, supply chain bottlenecks, the stocks that are whipsawing a bit. >> the banks continue to look good, but they'll get hit with

earnings. >> they're going to get hit with earnings >> have you looked at bank of america. >> yeah. >> that's just been a fantastic stock. i question whether that would be best citi is so cheap some of the regionals are cheap. they're 11, 12 times earnings, and then there was a downgrade at conoco. i don't think -- >> you don't think so? >> no. >> that guy should play in wembley. >> do we stay above 80 for a while? >> yeah. i just don't know where the supply is coming from. the major oils devon, epa, hess, pioneer natural, all of those are either cutting back or not spending more on exploration. you need these companies to do more the thing we are doing well is we have lot of natural gas, it's landlocked in the wrong places. >> we talked about the lack of pipelines to move it from one

place to another we do export some we have a great deal of natural gas, unlike what are potential shortages in europe, particularly if things get very cold there that's the weather, we know that. >> i remember the commissioner who said, why aren't the europeans getting free of -- they locked us in. they could actually literally separate themselves from the gas pump the gas pump is -- wants to withhold no one seals to attack the russians >> it's important to point out $80 oil is pretty beneficial for the russian economy.

>> to the point you've made many times, they are returning shares to -- not as though many of the major are not spending a lot >> now, just so we know, they are adamant that what they're investing in is going to produce a return we're talking about renewable natural gas. many people will think that's good but what's your thinking cut back try to figure it out

>> i don't know. i think you can expect they'll be fairly aggressive in terms of trying to hit targets, but i think they'll be realistic about it. >> they're anti-oil. no, they're not. >> they have change. >> do you think they want the ceo gone >> i think that is less likely at this point. >> what exactly do they want >> they have what they want they three members on the board, to work towards -- spenting more to transform the company. >> i think -- >> so far it's been a laggard. it was the largest company in the world in 2013.

back to gdp for a second i'm curious whether it's come up at all is tax rates. we can't forget the possibility that corporate tax rates are going to go up you have this global minimum tax rate now, 15%. there are companies that benefit enormously running stuff through ireland, for example i don't know that it's found its way into any estimates >> not at all. it's just all over the map people just accept the fact that washington is a series of show trials -- >> so it won't actually happen >> no. it's more likely that zuckerberg is sanctioned. they don't know what to do with it the ftc wants to break it up so what. >> i heard that yesterday. >> it's like more than twitter

than ever spent. >> my wife said -- >> caught two wide-mouthed bass, and i made them for lunch, and i posted it. i got hit with unhadding of negative comments about the fact that i made -- >> what did you do wrong >> my wife said don't ask what they were. really vile. >> they were offended you were eating a fish? and they just felt i was some rich person, owns in an area that -- twitter has to get it together they really do they can say anything thoept don't rae your mention columning. >> i worn. >> it's kind of ugly, yeah

shares z, the airline canceled more than 1800 flights over the weekend. >> there's speculation that the canceled were due to employees protests with the mandatory vaccination. andrew sorkin had a strong tweet about it he said, listen, be careful. >> so he gave a warning that they took $3.5 billion in aid -- >> i wanted so i stickered it -- >> a lot of no-go territory in this world

this is the time of thing you expect from the other airlines this is something where i think gary kelly should say, los angeles, this is not going to happen again if you fly southwest. this is a new southwest, is what i'm saying >> you talk me that to not -- i used to not let the facts get i into. >> this is what gary kelly had to say he's encouraging all employees to get vaccinate d there's a lok

at the can lace as of just a little over an hour ago. is that back they -- did they overstretched? i'm hearing -- >> some favor art. eunice was reporting that there have been some favorable rulings? >> i think they see went too far. >> they have a big real estate issue, some of the numbers when it comes to.

>> we could have a bass revo revolution >> this haircut is way too short. >> it is does your hair grow back i don't know >> that was a simple yes >> no, i think it looks okay >> i do feel like the coach of detroit lions. coming up we're going to talk about changes at the top of kkr. we'll give you the details in just a minute. jerry is here! j! mate, how are ya!? it's so good to see you.

good to see all of you, yeah! why is jerry so... popular? it's been like this ever since we started using workday. what do you mean? it makes it easier to develop great relationships with our suppliers. now everyone, everywhere loves jerry. they sure do. they do. they really do. mmhmm. workday. finance, hr, planning and spend management for a changing world. finance, hr, planning and spend management today, things can be pretty unexpected. but your customers, they still expect things to be simple. and they want it all personalized. with ibm, you can do both. businesses like insurers can automate it processes across clouds. so agents can spend more time on customer needs. and whatever comes your way, you've got it covered. saving time and improving customer service, that's why so many businesses work, with ibm.

with nhl center ice, you can follow your favorite teams and players, no matter where you live. you'll get up to 40 out of market games a week, putting you in control of the matchups you watch... every night of the season. with nhl center ice you'll get a season ticket to the best stars of the nhl. experience all the nhl action with xfinity x1 - track stats and scores while watching your team live. to upgrade, just say "nhl center ice" into your voice remote or go online today.

welcome back the first name that comes to mind in this industry is henry kravis of course in the book "bar b barrians at the gate" these

firms have changed dramatically. so many names, say, private equity doesn't really define nearly everything they do. and kkr, too, very active in the capital markets. this change hands anticipated for some time. no transitions are happening today. two new co-ceos, but again, their shareholder base has been ready for it >> have you ever heard a bad word about henry >> no, a complete and total gentleman. i haven't seen him in a a long time. >> he always has a good word, cheerful person, very, very smart, and just the good face of capitalism, i think. i don't know, maybe -- >> that might be going a little far. really some people would talk about private equity, which is a debate for another day, but look

at the stock when you look at kkr and blackstone, but you see esg there, apolla, much more an insurance company alternative assets, definitely importance in dead financing there's been a lot of value created. nothing, i'm old, to the immediacy here they're 78 and 79. it's getting on. still incredibly active. i don't know roberts at all. he's like a shadow, that guy. >> well, the shadow knows. >> they're cousins, by the way, first cousins. other than schwartzman -- you've got rowan now at apollo.

leon black has stepped down. obviously john gray runs -- but other than that, now, it's all the new generation these are not necessarily new g guys. >> by the way, to that note, it's taken them quite a while, but they're going to get to one share/one vote, but not until the end of 2026. apolla will be there very soon >> just buy it they just do it right. >> yeah. well, there was some frustration for some period. a lot of them became c-corps, but still, it's a moment. >> can i just mention we want to wish brian goldener and his family. >> brian goldener stepping down. >> a great man. >> for health reasons. >> i know -- can i just say for

charity? let's -- >> yeah, we certainly wish him best, without a doubt. there's a look at kkr. up next jim will have the mad dash and count you down to the opening bell about on, remember, the bond market is closed, but the stock market is open with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility. join the pursuit of outperformance at pgim. the investment management business of prudential.

at vanguard, you're more than just an investor, you're an owner with access to financial advice, tools and a personalized plan that helps you build a future for those you love. vanguard. become an owner. vanguard. ♪ ♪ ♪ hey google. ♪ ♪ ♪ ♪ ♪ ♪

[swords clashing] - had enough? - no... arthritis. here. new aspercreme arthritis. full prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme. we're going to be in the market very soon, of course, the opening bell less than six minutes away energy is still what we will spend time talking about we're back after this.

feel stuck with your finances? ♪ ♪ move your money to sofi. earn up to $930 when you download the app and feel what it's like to get your money right. - [narrator] introducing the grubhub guarantee: our promise to deliver the food you love on time,

and give you the lowest price, or you'll get $5 off your next order. two and a half minutes before we get started with

trading here we have time to squeeze in a mad dash. >> i don't think people give enough credit to kevin johnson at star becomes. also a reinstate of coverage at bank of america. while it's not cheap, it is trading below where it should be david cold brew -- that's when everybody needs a pick-me-up, so you get a cold brew. i was as 186 and lex, and people were handing out krispy kreme flyers in the starbucks, and they were flummoxed, they were such nice people -- just put it that way starbucks thinks that any concerns about chinaer overblown. >> why why should i not have concerns

>> kevin is continues howard shultz' policy of showing reffance to the whole families of the associates. when they go there, they are very conscious of the fact that the people -- it's a root up to do well, but i don't president to say they play by the communist rule, so to speak, but it's been a very good relationship the main thing in these notes is you fog can on america the rewards program is doing better, the two makes lines, i think that matters, and david, i have a triple cappuccino with skim wet, it was like so me. >> that's been your drink for a while. >> all of them don't know it's called a cramer. all right. we're going to keep an eye on shares of starbucks this

morning, and of course you hear the applause building here at the new york stock exchange on this holiday it doesn't -- a lot of people are not in the office, but as is typical, more on that in a moment there's the opening bell ess the maker of long-duration batteries, coming in via spac. over at the nats deck, brp i know you're excited about the battery for your phone. >> i was able to score most of the third quarter. it was quite a win. >> eagles won that game? >> yeah, they won. the jets did play at wembley >> thank you for pointing it

out. we're 1-4. >> ipg going to give you the star of the day. remember the annihilator dutch bros kiosk, almost universally loved, by the way. the annihilators, i felt -- i said, what is this >> you -- >> the reason i'm saying this i'm doing a comparison on "mad money. i used to own starbucks for my charitable trust remember someone came on and said all hell is breaking lose

one company has a $7 billion market value. >> but dutch bros is a kiosk they can put them up anywhere. that's why people are talking about -- blare says they could have 20x -- >> it the kiosk or the coffee. if they have a kiosk and terrible coffee -- >> it's like where you pump it yourself gas, and you're pressing 93 octane for that, buddy. >> all right david, i'm tired of having a drip drip drip. >> look at our parent company's shares it's just been dropping. on friday, it was downgraded,

that just crushed charter and comcast. and today raymond james, jim, comes out and says, first, between now and year end, the telcos are said to make significant change to the communications lands scape that's set to shift the balance of power that's favored the cable companies for the last 20 years. telcos are making slow, steady investments in fiber to overbuild their legacy copper networks, poised to effectively double their current fiber -- >> will you give me a break? >> this is at&t. >> barclays has a very good -- >> when they become the new at&t -- they may close sooner than people think. they are spend ago lot of money on fiber. >> what is interesting is the yield is getting compelling. you know why >> because it keeps going down. >> bingo you, you, you are the man, david. one day -- >> i prefer stocks to go higher.

>> you still like at&t here? >> it's too early. >> even with awful analysts -- >> comcast has something called broadband. it's on fire good ads, by the way, and i just think that, to say -- it's a straw man. these guys are piling on they can't get to zuckerberg, so they attack um. >> raymond james saying they do expect title ii to be restored. >> it's pile on, david. it's day two of analysts coming out and saying -- there's a lot of market cap that's been lost in the last trading session. >> europe is a good idea i thought it was good. it worked out. >> you're talking about comcast again. >> yes people are buying up rugby teams. they think it will be the next soccer, football -- put together

a syndicate, like a fifth-tier team in glasgow? >> better than betting on mainstay. >> it came in last that's last. >> we don't have to dwell on it. >> no, we don't. so we'll move on. >> mainstay is still running, actually. you saw merck is submitting for emergency use authorization. >> dr. gottlieb seems very positive. >> you mentioned the great dr. gottlieb let's listen to what he had to say for that >> i would suspect this is going to be perhaps a two-month review i don't think it's going to be quite as fast as we've seen some of these vaccine authorizations. figuring it takes about two months to get to an emergency use authorization, which i think is optimistic, you can't potentially have it on the market before the end of the year merck does have the supply,

ready to ship. >> they're in positive territory for the year on the strength of hopes for peer review. >> obviously we had a couple terrific people, and i felt, let's just say this is just one more reason why i think that fight -- not being involved in what they're doing medically to beat this was awful when you read the facebook, the huge amount of -- huge amount of comment tear that's negative about vaccines all these different inoy investigations are coming are rather amazing they're putting people to work, but we're trying to figure out where the people are who vanished from work. >> you're talking about friday's number we did look at moderna shares which have gotten shellacked it is down sharply from the ties and picked up a lot of steam

from the down side >> what are you hearing about j&j? >> nothing what are you hearing >> j&j, which reports next week, is actually doing pretty well. >> okay. >> i think what you have to look at j&j, that is going to be the one that has come down enough that i feel good about >> okay. >> i feel good about it. >> emerson does a deal -- >> hard to understand. >> yeah, it's a difficult deal to fully grasp, in terms of the complexity of it it involves aspen technologies essentially they're taking control of aspen, they're contributing some of their businesses, combining them with aspen. >> i'll have them on tonight. >> really what it is, is $87 a share in cash. and the new telco, and they are putting in six bil as well

>> is it because they're doing that 0.42 shares, so the people are trying to lock in -- maybe in aspecs. it also may be people fully trying to grasp exactly what it means. >> we have to get the man to see on >> it's complicated. so complicated i have him on tonight. >> you have the ceo tonight. >> so could you please send me some questions >> yes, i'll send you some questions. >> we're a team. >> we are a team we are i help him. >> i help you. >> no, you don't. >> i said your conference work was amazing. >> and you told me to bet that first short on saturday. >> no, it was the sixth race. >> oh. there's a new ceo of emerson joining jim on mad, to discuss,

in part, thistransaction. >> i can't way this is emerson trying to make it look a little more like honeywell. they have reinvented that company, even though aerospace is not doing that well by the way, raytheon is moving up. >> is it >> yeah. >> our man greg hayes. >> that combination turned out to be a good one, less dependent on boeing. >> they can't get anyone to come to the office, is what i keep hearing. >> no one wants to go to the office. >> it just never ends, the lunching with people who run firms, where they are mandating -- it's like we've got five days a week, and i clearly have no power here anymore, because 350% of the staff -- we have now -- there's no doubt, other than us, everything is -- fridays is no-go territory nobody goes to the office on

fridays. >> it's columbus day, but fridays -- we're france. we don't work on friday. >> main thielman date a four-day workweek. >> yeah, you're there, i think you're reading a novel, right? new novel, read -- >> but they have given up. listen, if this guy is getting people in four days a week -- >> we have to talk to james gorman >> gorman, solomon and blackstone, they all want people in five days a week, but i think they're losing the battle on fridays. >> oil companies have to only work two days a week and it's fine. >> went to come back to hta? i talked a bit about it on friday, but elliott -- health care trust of america, one of the largest investors.

>> i totally. >> they want to buy you, trading below, you don't have a ceo, but they spent a lot of -- >> they're doing medical -- >> those are not one of the names i have. >> this is behind the scenes, people, this is what we do. >> blackstone, health peak, well tower. >> i think aventos is -- >> that's not on my list from friday. >> then forget that one. >> you don't like walmart. >> their partners, good --they

could sell branded >> well, uh, not bad i want a lifetime value, then you can figure out what it's worth, because we have all these different fee that is we pay -- i don't know, 3:30 a.m., this epic decision there's an unbelievable ad about making movies on this i've been making movies david, this is it this 13 -- now, there's three different pieces about whether it's doing well or doing poorly. they can't figure out supply

chain. they said, well, listen, the wait is really long, but is that because of supply chain? >> like, turn in a 7, will verizon give me a 13 >> sure, they will who can give me the good deal? >> you have to get the right people this is what you do. you text -- >> you get adam aron on there. >> daniel craig, this is he. he and rachel weiss, real people they're regular people bob, i'll bet you're a bond fan. >> i saw it at grahamen's

chinese theater over the weekend. it's earth shattering to see it on the historic screen with dolby sound? there's nothing like seeing it in a real movie theater. a great movie. good to be back, by the way. we are seeing a bit of, let's call it, inflation-induced anxiety around commodities today. so oil is up oil stocks are at new highs right now. financials are doing well at the moment near 13-year highs in natural gas, on a little concern about that but it's certainly help sectors. tech is holding up pretty bell, consider the rise in interest rates. we'll have more to say about that in the next couple days, but some of the sectors, banks doing well we've seen -- these are new multiyear highs.

we're talking about before what happened with the great financial crisis so 52-week highs conoco got the downgrade that is not stopping anybody we have new highs all over the place devon, one oak, the big natural gas company has hitting it out of the park this is a small 3% sector, but remember, it's still only 3% of the s&p 500. there is earnings starting wednesday. my heavens, is there a lot of pessimism around earnings season starting we obviously have a lot of supply chain issues. demand is really strong, but supply is problematic. the poster child is nike everyone is saying, is nike going to be what everyone will be the model for demand, really great supply, really a problem

40% from vietnam, we're having problems there they've had shutdowns around covid, indonesia, the same situation. the hope is it would get up and running very soon. they're very reluctant to punish nike, because demand is so strong how do you figure this out it's very different to get the supply-chain issue right i think that's the big problem markets are having norm ate it's a mid cycle thing. we have certains peeking out p.e. ratios start coming down, and they have, and earnings start flattening out look, we're going to the third quarter earnings we're in the middle of a global recovery, third quarter earnings are -- the dollar estimates, they're lower than the second quarter. that's a little strange, folks, when we're in the middle of a global economic recovery the ammists are being very, very

conservative the bull hope is they'll be wrong again. what's holding everybody back is the supply chain we can't figure it out is nike the model here that's the probably we've been having the big issue, of course, is we look at where the stock market is, it's been holding up very well we're only 3% off of a 52-week high if you look at the major sectors, we have oil at a new high, financials at new highs right now, multiyear highs as i mentioned, some of the case of some of these regional banks, multiyear highs. consumer discretionary is only 2% off, so you see a lot of this is value sectors, like energy, financials and industrials, and at the knowledge in part to the consumer discretionary that are growth, all right, they're down, but you're talking 4%, 4.5%.

so the bottom line is the market is still giving everyone the benefit of the doubt we're going to be a very choppy october until we get through two thirds of the owner reports. so just expect more volatility i highly recommend that james bond movie, you know >> i have yet to catch it. i mike, as you say, bob, even see it in the movie theater. >> me too. bob just said, after being delayed for more than a year, thelatest james bond film did debut. "no time to die" grossed $56 million domestically, just shy of what had been expectations. the film did surpass, jim, 3$300 million globally. >> i often find these

expectations are set by people who could find another career. >> what kind of job is that? mel keep-- >> amazon will be the home for bond, if the deal -- >> you have amazon web services on later this week >> i have them on. >> that's great. >> it's a really good booking. my team worked really hard. >> i'll bet they did i look forward for having you on andy jassy, of course, is the ceo now. >> he came from benioff. >> we don't like to let a show

go by without mentioning his name. >> he had such good things to say about you this weekend he likes your skepticism about facebook. >> we're in a good place. >> you're a skeptic. >> as is he? >> i would call him a skeptic. >> reasonable are on "time magazine >> about facebook. >> but he does not influence >> he owns "time" magazine. >> he doesn't influence the cover. >> covers. he's not henry luce. >> remember when "time" magazine was the biggest name in media. >> i worked for "time" magazine. >> we have the power if i were working for "time" magazine, i would -- >> time for -- >> time bought warner. now it's owned by benioff. >> you -- >> they started hbo too. don't forget that. get in on the new cnbc investing club this what is we had to make time for, is this with you. find out nor cnbc.com/investing

club or point your phone at the qr code on the screen. >> why aren't you investing squads. >> nobody wants to hear about what i have to say about any of this. >> you have like a million people already ith tng "squawk on the street" is going to be right back

take a look at the top gainers on the nasdaq. you can see -- >> there we are. >> chinese led by bay dui. jim mentioned earlier, a bit of a rebound. down sharply for the year, but alibaba i'm looking at jim coming back sharply too over 4%. we're going to take a quick break and we'll be back. >> we have no me ttio talk to each other. >> maybe after top trading

at vanguard, you're more than just an investor, you're an owner with access to financial advice, tools and a personalized plan that helps you build a future for those you love. vanguard. become an owner. ♪ ♪ ♪ ♪ ♪

quick goodbye here. >> i was going to talk about henry, high earner, not rich yet, sofi. i have emerson and plug power. plug power controversial because it's hydrogen energy and people are unsure what a great show. >> did you enjoy yourself? >> that's not the pointp >> no it is not. >> enjoy myself? is it a play date? did you enjoy, davey yeah, jimmy, had a good time. >> see you back hereomro torw. more "squawk on the street" coming with -- right back. leaving you lost. 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

that building you're trying to buy, matching your job description. you should ten-x it. ten-x is the world's largest online commercial real estate exchange. and it's fast. if i could, i'd ten-x everything. like our lunch. (laughs) amazing! see it. want it. ten-x it.

. good monday morning. welcome to another hour of "squawk on the street. i'm david faber with morgan brennan and mike santoli live at post nine. carl has the morning off a look at markets half hour into trading and we are up on all the major averages morgan >> yes we're 30 minutes into the

trading session. here are three of the movers we are watching this morning. we're going to start with merck and partner ridgeback biotherapeutics, asking for its covid pill, if approved it could be available later this year morgan stanley initiating coverage on sophie with an overweight rating calling it, quote, powerful revenue growth story and you can see those shares are up 7% on that we're going to end with aspen technology announcing a merge with emerson businesses, a software deal worth $11 billion, cash and stock deal, valued at $160 per share for aspen and you can see those shares are up about 7.5% emerson is down about 2% david? >> somewhat complex transaction involving those software side of that you're looking at it, can the bounce in the stock market be trusted? that is a column from mike santoli over the weekend

you asked the question, what's the answer >> i think it's trust but verify maybe. the old rating line. i think we've had a five-week ongoing stress test of this bull market it's mostly passing, most of the work of what you would want to see in one of these pullback seasonal corrections is taking place, meaning some of the most kind of overextended parts of the market are coming down, a rotation towards cyclicals you have seen a pretty decent adjustment in terms of investor expectation. i think that's a big attribute of what you want a pullback to do is get people a little bit scared a lot of sentiment readings we look at, positioning readings have adjusted people are cautious and the weekly surveys and exposure of hedge funds, that's all to the good seasonal factors become less hostile into the second half of october. probably a positive right there. the issue we have is, nobody is quite sure what the implications are of a labor market acting tighter than we expected as we saw on friday's numbers, what it means for the fed, if we're

going to have this hyper sensitivity to inflation and shortages or if the market is already kind of digested a lot of these things. so most of the time when we get one ofthese 5% pullbacks that has not -- and we have not had one in many months, usually isn't the start of the big one usually is not like the ultimate peak of the market or anything more than a routine correction but sometimes goes deeper than 5% and that's all we've got is 5.8% peak to trough in last week's low. >> there has been a lot for the history books that has been unusual and in some cases unprecedented since last year and the pandemic swept through, but can we attribute any of the action in volatility we've been seeing to seasonality. >> you can't escape that as a matter of fact, it's kind of amazing how much it matches up with even last year, september 2nd was the peak last year and nasdaq was most over bought you had that pullback in september, and a bounce, and then it didn't really end. the whole corrective period did not end until october 30th that's really when we got

liftoff. right before the election markets seemed to sniff something out and the big cyclical stocks started to rip we got the vaccine news november 9th last year. it's not clear we have the defined catalysts this time, but you have to say seasonality is one of the pressure points one final thing, the market is not acting the way it has in terms of resilience, people buying the dip we've wallowed a little bit in this pullback for longer than we may have expected based on this year's action before this. >> earnings season is upon us or just about it will get the banks very soon. it usually takes a while to sort of digest and figure out anything we should be thinking about as we head into yet again trying to get a sense as to where multiples are and whether they're appropriate? >> multiples are down. the forward multiple of the s&p is do down about 20 from above 23 more than all of it happening bau of earnings growth what you should watch for i think is a little more less inclusive beat we've had 85% of companies

beating by the biggest margin ever in the past two or three quarters that'sprobably over. i still think we're going to have, you know, across the board in aggregate you're going to beat system because companies always do, but it's probably going to be spotty what's going to be fascinating everyone will talk supply chain and see if the stocks react to the talk about supply chain. there's a fair case to be made we're past the peak of the intensity of those frictions. >> we're going to have to see. southwest airlines meantime canceling 1800 flights over the weekend blaming air traffic control problems, bad weather, staffing shortage. the airline pushing back against the idea that staff are calling out of work in protest against a covid vaccine mandate. for more on the impact to the stock we are joined by citi analyst steven trent thanks for joining us. first of all where do you stand on the stock and how does this tee up southwest not to mention the other airlines as we do get into this earnings season? >> sure. thank you for having me this morning. i think in terms of southwest we

have a neutral rating and a $55 target price we think it's a very well-run company very strong balance sheet, got a very good hedge position on the oil side, but we see better risk/reward elsewhere in the space in terms of 3q earnings the street has seen the story before over the summer when it was some competitors with these problems and i think kind of goes back more broadly to the recovery occurring in fits and starts as labor and whether it can certainly wreak havoc in certain situations in this environment. >> yeah. weather certainly has many times been the plague for airlines and canceled flights but in terms of the labor piece of the puzzle, for years we've been talking about things like pilot shortages. how acute are the labor issues

at southwest specifically or is this a bigger, broader industrywide situation that, for example, when delta reports later this week we could hear more about >> yeah. i wouldn't go so far as to say that this is going to be something spread across the industry now certainly part of the challenge has been trying to put in enough capacity to cover your demand and at the same time, you have various companies out there that have had pilots, so those furloughed pilots need time to get back into the system and they need to get flight simulator training back in again, before they can get back in the cockpit, so there's limited through put on some of those pilots coming back i think in terms of, you know, the discussion, broader discussion, on 3q earnings and what this means for labor, certainly it's hard to get a match on the labor side at all times relative to what kind of demand you have, as well as what

kind of slack you have in your system if you get some cancellations. so if you have too many cancellations, you don't have enough slack in your system, you know, you just kind of have to cut the bleeding and try to cancel enough flights so you get equilibrium again. in terms of the labor pushback, you know, in terms of what the carriers are demanding of their labor force, it's conceivable that you have elements of the labor force frustrated with some of the current conditions, but that being said, i wouldn't go so far to say this is an industrywide issue at the moment. >> but so frustrated with the current conditions, but you didn't say what is being spec lated, there are pilots who don't want to get vaccinated and staging a sick out do you think that's happening here or not? >> look, i think that you have individual situations where

individual pilots have their reasons for calling in sick or not calling in sick or not showing up, so it is possible that you have elements of the labor force that are frustrated with certain requirements. i could not serge dism -- certainly dismiss that broadly speaking, when you have this level of problems it's not one thing going on, it's a couple things going on, and lack of slack in the capacity or just a few people calling out sick would not be a reason alone to have 25% of your flights canceled, you know, over a weekend, for example >> to use the weather analogy, a perfect storm. stephen, thanks for joining us. >> my pleasure. >> as we head to a quick break, here is a look at our road map for the rest of the hour it's going to include billionaire investor wes edense who will talk everything from the surge and natural gas and

energy prices to the latest with infrastructure. >> facebook trying to fight back unveiling new controls for teens on its platforms following growing concern from lawmakers and after 45 years, kkr's co-founders, they're stepping down from their roles as co-ceos. we'll give you those details and a lot more "squawk on the re" ilahd. don't go anywhere. 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.

this halloween, xfinity rewards is offering up some spooky-good perks.

like the chance to win a universal parks & resorts trip to hollywood or orlando to attend halloween horror nights. or xfinity rewards members, get the inside scoop on halloween kills. just say "watch with" into your voice remote for an exclusive live stream with jamie lee curtis. a q&a with me! join for free on the xfinity app. our thanks your rewards.

major indexes all up about a half a percent, well up from overnight lows the s&p 500 was 12% below where we are right now the bond market is closed. we have no guidance from the treasury market, but the equity market attempting to continue last week's three quarters of a percent bounce in the s&p 500. we'll be right back. [uplifting music playing]

♪ i had a dream that someday ♪ ♪ i would just fly, fly away ♪

[ eerie music playing ] michael myers survived that fire. after what he's done to my family... i will kill him. tonight we hunt him down.

[ screaming ] evil dies tonight. you want your mask? come and get it! make a considerable difference, which is where our systems see that a teenager is looking at the same content over and over again and it's content which may not be conducive to their well being, we would nudge them to look at other content. the third additional and new measure we're introducing is called take a break, where we will be prompting teens to simply take a break from using instagram. >> that was facebook's vp for global affairs, nick clegg who made the rounds on the sunday shows. unveiling plans for new controls for teens using its platforms. facebook shares lower this morning, down more than 10% in the past they've just clicked above the

flat line there. there are green, down about 15% from the high. joining us is oppenheimer's jason helstein to talk about this change. good to speak with you this morning. the dual questions here are, one, what does it mean that facebook is implicitly acknowledging they may have an issue here that might, you know, bring further attention from regulators in terms of the effect of the platforms on teens? what might it mean perhaps for engagement and, therefore, the stickiness and targeting of ads? >> sure. so first, let's start out generally what we think about is facebook is trying to get in front of this. i always like to think when you're in situations, usually it's a cover-up that gets you in trouble. i think facebook has been trying to be transparent. i think what's ironic is, can you regulate one company when it comes to teenage or children's usage? if you look broadly at the

social media ecosystem, facebook, core facebook, and even instagram has less users than others. 60% of tiktok based on data we have are under the age of 25, tiktok users for snapchat it's 48%, instagram 37% and facebook 21 are you going to try to put rules that just go in place for facebook or is it for everybody? now, you know, so if facebook is able to kind of shape the narrative saying it's not just us but everybody needs to do a better way to moderate usage of teen users or let parents have more oversight of what their children do, it will actually hurt facebook's competitors. >> right okay and i mean this i guess feeds into the broader question of whether advertisers because of any of these issues, now facebook was saying that advertisers in general prefer

not to interact with objectionable content or anything controversial, but we have these measurements issues and people opting out of ad target all that has raised the question whether there will be an advertiser response. on one hand, $110 billion in ad revenue is projected for next year for facebook alone. presumably it can't all go elsewhere because it all is about, you know, where you're going to find it on facebook. >> our checks with advertisers and consultants is that while there is definitely a lot more noise in measurement because of the changes apple has made, that the spending is still there, that advertisers understand if they're seeing lower conversion rates it's because the data is not accurate as opposed toed to is the consumer still buying the product. as far as we can tell and facebook reports in a few weeks, we think they're going to say that advertiser spending is strong to your point, look, you may get

advertisers who say you know what, i don't want to market my ad to anyone under the age of 16, right, and maybe facebook will need to put new filters in place. there are companies out there, publicly traded companies, who do ad verification and maybe ad verification around age will be a new service they offer, right, as opposed to, you know, quote/unquote objectionable content or having your ad next to news or something happy or sad. this may be a new area, but as far as we can tell, right now and as far as the outlook for the first quourth quarter this having an impact on advertiser demand. >> it was a week ago we saw the outage of facebook and its different apps and platforms last monday. i mean, is there still, because -- if not regulatory scrutiny and the tools around teens and young potential users

et cetera, that outage alone, does that represent an opportunity for other companies like snap, for example, to come in and take more market share longer term? >> clearly nobody likes to see outages, it's a ceo's nightmare, somebody leaned on the wrong switch on the wall or something, but look, outages happen on the internet, even to the biggest companies, they don't last long, the fact that everybody notices the outage shows you how much they use the product and how dependent they are on it again, i don't, you know, today i don't see that having a meaningful impact as far as we can tell facebook and instagram are still and whatsapp heavily involved in people's lives on a regular basis. >> jason, appreciate your take on this morning. >> thank you >> thank you >> have a good one kkr announcing new changes at the top of that firm, effective immediately. leslie picker has the story for

us >> hey, david, good morning. that's right kkr elevating its two copresidents to the role of co-ceos passing the torch for the first time in the firm's 45-year history. henry kravis and george roberts have been the face of kkr alongside their third o-founde jerry coleburg who died six years ago. the two will move to executive co-chairman while scott nuttall and joe bae will -- while the billionaire founders in their 70s. so this topic of suggestion has been prominent with apollo and carlisle making moves over the past few years concurrent with the management transition, kkr announced a series of corporate governance changes. by december 31st, 2026 in a little over five years from now, the firm plans to eliminate its preferred stock moving to a one share, one vote structure across the shareholder base.

the reorganization improves the right of common stock is shareholders allowing them to vote on matters like directors where they weren't able to do those types of things before the elimination of shares with special voting rights follows moves by apollo and carlisle over the past two years. it could be beneficial for public market investors in these companies because it would allow for broader index inclusion. helpful to some of the passive investing with we've been seeing kkr shares higher today pushing its gains for the year to over 64%. guys >> yeah. interesting that that move -- it's going to take them a long time to do it, but moving in terms of governance, leslie. you point outs the stocks have done very well the companies have changed so dramatically, of course, since the early days of private equity, when really all they did at blackstone or kkr or carlisle were lbos. many have forged different identities along the way blackstone this giant

alternative asset platform at this point kkr, more active in the capital markets. apollo, much of it insurance as you know, having interviewed roh row hen not long ago they have different identities. >> that's right. it's remarkable because they've spent just the past decade as public companies and you've seen this massive transformation occur to your point. it is much more about asset gathering when you are a public company because investors like to see that management fee get bigger over time the best way to do that is to grow your assets blackstone as you mentioned much more into broader alternatives, especially real estate apollo with credit and insurance. kkr pretty big in credit as well as the capital markets as you said, and then the succession idea, the passing of the torch, was something that historically, people weren't sure if alternative managers could do that successfully because the firms were so embodied and personified by the billionaire founders at the top,

could they really actually do the succession with a change from more of that partnership structure to one in which has one share, one vote? all of that has really been beneficial for the public market investors and you see that reflected in the stock prices over the last year or so >> yeah. leslie, i think that perhaps one of the answers to maybe why it's now seeming more feasible is just how tremendous they've made themselves before executing the transition away from the founding management of some of these firms. obviously not all of them have i wonder, you know, if we can extrapolate a little bit to more pure hedge fund manager where we haven't seen the kind of mass set asset bases and kind of a seamless transition to the next generation, at least not too often. >> yeah. that's exactly what i was thinking too this idea that you've got these private equity firms, these storied private equity firms, that chose to go public a decade ago, forcing these transitions into different types of

alternative assets, forcing things like succession, as opposed to the hedge fund industry where more often than not, once a founder gets to be of retirement age or deciding not to do it anymore they will convert to a family office but most hedge funds have not become public companies i guess the exception to that is ox which went through its own succession plan, now they changed their name as well, but broadly speaking, hedge funds are still private. they are still managing for lps. they're not investing for public market investors they don't have the same kind of pressures to expand and survive and grow they can just make the decision when they're done and throw in the towel, they just kind of either close up shop, convert to a family office and we see that time and time again. i think it's an important distinction, at least within kind of the alternative management space morgan >> absolutely. leslie picker, good to see you it is now time for our etf spotlight. we're getting a check on the

energy sector. ticker xle rising with the fund up more than 50% year to date. holdings like devon energy and marathon oil have doubled this year the boost coming from oil with u.s. crude, wti trading above $80 a barrel, now at its highest level since 2014 before we saw that collapse in crude prices back then speaking of energy, do not miss new fortress billionaire wes heens who will join us on the otr side of this break we are back in two [crowd cheering] how's sanchez looking? with your qb's increased spin rate, any pass with a launch angle of at least 43 degrees puts sanchez in the endzone. you a data analyst or something? an investor in invesco qqq. a fund that gives you access to nasdaq-100 innovations like ai statistical analysis software. how am i gonna do? become an agent of innovation with invesco qqq.

♪♪

welcome back i'm rahel solomon and here is your news update at this hour. merck is asking the fda to authorize the drugmaker's pill designed to treat covid. the company official calls it a powerful tool to add to the

toolbox. authorized treatments have required an iv or injection. a decision on the emergency use authorization request could come in a few weeks. three u.s. based economists have won this year's nobel prize. berkeley's david card honored for research thoeg an increase in minimum wage does not reduce employment, joshua angrist and guido imbens they haled the framework for experiments where it's difficult to isolate causes and effects. and i would imagine this was also pretty difficult, in a different way. a 26-year-old estone yan woman jumped from the top of a 30-story building to its twin 36 feet away. she was attached to a wire as a precaution i bet she was able to safely make that jump back to you. >> i bet you could do that, rahel. i would watch that >> no big deal for sure we could both do it, morgan. >> okay. you're on. rahel solomon, thank you the energy sector leading

the s&p again today. natural gas prices are soaring amid the commodity craze take a look at shares of liquified natural gas company new for tress energy, up 24% since 2022 earnings goal, up another 8% this morning. jo joining us now the company's founder and ceo wes edens. >> let's talk about new fortress energy specifically. the shares were under pressure the company was short nat gas. you adjusted that from net short to net long and the stock surged how does it speak to what we're seeing in the market >> it's such a small shift we're largely balanced between what we buy and sell we were thought to be short from next year that moved from down four cargoses to plus eight and has a couple hundred million dollars in price swing because prices have moved so much in commodities generally, but

specifically >> have you been surprised by the move in prices >> it started in the middle of august when things went off the hook i was in london about a month ago and met with a bunch of e and p producers and shippers and came back and told our folks in the monday morning meeting we're going to have an energy crisis because it does seem that the under investment in fossil fuels puts on us on a nice edge economically and a little bit of events or swings one way or another has big impacts on prices. >> it feels like europe is kind of case in point, example number one on the world stage, where this transition to clean energy is concerned yes, it's coming and we're starting to see the implementation of the clean energy alternatives into the power grid, europe being a good example, but to your point is it necessarily ready for prime time and what happens when there are shortages in those types of power? >> that's exactly what it is you have a situation where everyone wants the transition to

happen, but it's going to be a pretty messy transition if we're not careful. if you under invest in fossil fuels right now, you know, you run the risk of seeing exactly what we see, which is weather event here, whether it stops raining in brazil or too much rain in china or there's maybe the russians will ship gas or won't, something on the margin easily absorbed by the market a year ago has a really pronounced effect. >> is the expectation then, i guess at least from your standpoint and new fortress energy standpoint, when you look out and hedge over the coming years we'll see prices continue to be elevated >> i do. i think that the question for this winter is what's the weather going to be like sounds terrible but that's what it is. longer term there will bemore supply that comes on market but energy infrastructure takes a long time to build so i don't think this is going to go away any time soon and has the potential to be disruptive for a number of years. >> we've had this conversation before, but speaks to the business model around new fortress you have the flexibility around prices.

this goal recently commodity neutrality, but you did up the company's outlook at the price spike? >> we think it's the beginning of really good things ahead for the company. we've invested over $7 billion in energy infrastructure around the world. i say we're the seven-year overnight sensation. it's allcoming online in reall big markets. brazil, ireland, on the horizon, that gives us access to these big commodity users and obviously we want long-term for it all to be clean and fossil free, but in the short term it's lng and there's upside to that. >> we had the conversation about hydrogen and the development of that technology, the next step after liquified natural gas. but in the meantime can you secure enough supply as you bring these terminals online >> absolutely. and in addition to the supply we buy in the markets we're actively developing our own supply we have a fast lng concept and we basically started building

our own lick question fier before we have a gas source bet that's going to balance out quick. i think it will be a net long position in heading into what could be potentially a lucrative market. >> brazil, sri lanka, ireland, do you have your sights set especially given what we are seeing in terms of the market right now for other locations? >> we do there's a handful that are meaningful, right, in asia or in south africa they take time to develop but we'll have 11 terminals up and running when all the stuff we're building is completed. we have a big footprint, biggest in the world i think and with the addition of a couple more big countries we think we have a dominant position. >> yeah. so if we see stickier energy prices, i mean it kind of dovetails back into the inflation debate more broadly and what that could mean going out into 2022 and beyond, see supply chain disruptions begin to ease but if energy prices

like nat gas continue to stay elevated what does that mean for the markets? >> higher prices for everything. energy is in everyone's bill, whether directly whether it comes in your power bill or indir indirectly you put in your tank or clothes and food costs. the experience of inflation over time it's hard to take out once it gets in we see inflation at every level across the businesses. commodity prices but in labor and you would think it would translate in the higher interest rates but it seems to be everywhere. >> would you be a byruyer in equities in this market? >> i would be a buyer of equities there's still tremendous opportunities in transformative industries and things that will make a difference in the world i think that with the under investment in fossil fuels it puts so much more volatility in the market the 100 year flood that might be happening every year you have to be focused on making sure you don't get off sides on

these price lines. >> i want to get your thoughts in d.c. as well. something we talked about many times before, infrastructure you got this infrastructure bill that is i guess kind of stalled in the house right now your outlook on that and what that could potentially mean for another one of your businesses, brightline, which is the first privately owned passenger railroad in the u.s. >> look, as we said before, i think we are criminally under invested in infrastructure this country. used to have the best in the world. clearly don't now. more money for infrastructure. it's a bedrock of economic activity and something i think the country desperately needs. i'm not an expert in the politics in washington seems like it's got an little bit sideways there i'm hopeful that it happens because i think there's a lot of different industries that would benefit from it. transportation is near and dear to my heart on the train side. brightline reopens in florida in a couple weeks. >> okay. >> and we think that the orlando service is open in about a year and the vegas/l.a. train is behind that. we think we're well positioned to be involved in the

infrastructure solution of the country. there's a million different things. >> i guess to bring this full circle, the reconciliation package, so-called social infrastructure, may or may not have some power generation stuff tucked into it clean energy stuff tucked in as well. >> yeah. you know the hydrogen, here's the math the way i think of it is, you talk about green hydrogen $3 to $4 kilogram cost, if you multiply that times 7.5 it gives you the gas equivalent. gas right now long term in the u.s. is at $6. 30 versus 6 is a gap of what it would cost to make everything clean. while a big gap it's not an insurmountable gap government should play a role to narrow that gap whether subsidization of the production of it, talk about taking that from $50 to $80, tools the government has and i think, you know, they can play and should play a big role in that.

>> okay. i would be remiss if before you left as the coowner of the milwaukee bucks if i didn't ask about the upcoming regular nba season that kicks off next week. you're coming off this big championship win outlook for the new season how is giannis feeling and your thoughts on what we're seeing play out with the vaccine mandates and what that means for dynamics of players on the court? >> it's amazing it's the regular season, right. october 19th it's ring night for us we give rings to the players and coaches and a lot of people that work there as well as, you know, kind of the owners so we're excited about that. the team is back intact. knock on wood everyone is healthy and we feel like we have a great position going into the new year first celebrate last year will be the focus of the game beginning of the game on the 19th >> congratulations to that. >> thank very much. >> a major win. >> thanks for joining us today wes edens. >> great to see you. >> mike? >> morgan, thank you very much still to come we'll speak

with imax ceo with the latest bond film hitting theaters after being delayed for more than a year, and now let's get a check on the top stocks leading the s&p 500 so far this morning. very much a commodities heavy leadership up almost 7%, rplliburton, slumber ger and vf co we will be right back. age before beauty? why not both? visibly diminish wrinkled skin in... crepe corrector lotion... only from gold bond. ♪ i'm a reporter for the new york times. if you just hold it like this. yeah. ♪

i love finding out things that other people don't want me to know. mm-hmm. [beep] i just wanted to say... ♪ find yourself in these situations and see who you are. and that's just part of the bargain. ♪ halliburton, schlumberger and vf ♪ ♪ ♪

hey google. ♪ ♪ ♪ ♪ ♪ ♪ - [narrator] introducing the grubhub guarantee: our promise to deliver the food you love on time, and give you the lowest price, or you'll get $5 off your next order. as i observe investors balance risk and reward, i see one element securing portfolios, time after time. gold. your strategic advantage.

no time to die bringing in $56 million in its domestic box office debut this weekend. that was at least slightly below in fact analyst projections for the movie. $13 million coming from imax screens. joining us is rich good morning are we back to pre-pandemic levels >> we sure are, david. i mean, if you look at imax's september, we did $55 million in

box office, which was more than '18 or '19. when you look at october it's only a couple weeks in, but i would be surprised if we didn't beat our october for '18 and '19. we're completely back. for bond our domestic indexing was 13%, which was the best blockbuster release since 2018 it sure looks to me like we're there. >> is it bond related or is it more reflective of just the ability and interest of people going back to movie theaters at this point so that the next big one is going to get as big, if not a bigger audience as well? >> i mean, look at venom the week before which did $90 million domestic and people are talking about the domestic number of bond at $56 million, but you've got to look global. it's over $300 million already some of the analysts are saying it's going to do $700 million. the most interesting fact i think in bond, which people

aren't talking about, is the drops in the international markets. so it opened outside of north america a week early and the drop was one of the lowest for all the bonds. in fact, in europe, it was only a 25% drop and you compare that with the pandemic movies which are dropping 65 percent, even as i said to you it's better than the past bond, so i think if you could look forward, you can't just look at what the number is for one movie, but one weekend the smaller drops suggest these things will have some legs then back to your question, i think the rest of the year just has so many blockbuster films coming as well as 2022, it's just hard to see how you're not back >> rich, it's morgan obviously we've continued to see the tensions between the u.s. and china flair and there's a domestic crackdown in that market as well that has affected the film making and some of the

actors in that market. mean time you've got walt disney or reports that walt disney is facing barriers to releasing movies in china amid the political controversies as well. what is the outlook for that relationship between china and hollywood? >> you know, i think he it's been challenged in the last year, but i think it's a little simplistic to say it's been challenged because of only political reasons. i think there are three reasons it was challenged -- one is that china itself obviously had the pandemic and there was a backlog of chinese films so they didn't let in a lot of hollywood films because they gave priority to their own movies the second was the failed experiment about simultaneous releases china where films were released in the rest of the world, they were pirated over china. the box office wasn't available. for a number of films that china didn't let in, of it because china didn't want to be treated

as a second-rate release territory, so they just weren't going to let movies in that had already premiered online in other markets and, therefore, there were so many pirated copies there were political issues on some of the films, but that was just a small amount of the films. i think, you know, the story focused on a few of the films that had political issues, but go back to the big picture on china. this weekend -- last weekend, was a national holiday and they did a movie -- i'm butchering the name, but it did over $200 million in its first week, which is more than a u.s. movie. imax has done $30 million on that movie bond has gotten into china and being released later this month. i think it's october 26th. "dune" has gotten in

i think it's -- of course, there are issue that are different but that's tailing the dog coming out of the pandemic and the failed experiment of streaming have a lot more to do with the china issue than the political issue. >> failed experiment rich, you know, we have you on so often to talk about, of course, box office and what you're seeing, but i do want to ask about your stock price i'm looking at a ten-year you've been through plenty of things, the pandemic chief amongst them, the stock is more or less where it was ten years ago what do you tell shareholders as to what's going to bes the catalyst to create some value here >> i think first of all premium is much more important than it ever was going into the pandemic as i said, not only are indexing for bond which i mentioned, but our indexing on a global basis is higher than it has ever been. in china we used to do 4% of the

box office and now we're doing 5 and 6% because when they go out they want to do something special. next thing is global growth. our network has expanded at an annual rate of about 12% compounded over the last decade. i think i'm really glad you asked that, david, because i think one of the shadows hanging over the whole movie business has been the threat of streaming and how that's going to destroy the narrative of companies that make money through theatrical box office unfortunately, during the pandemic, the studios pushed that really hard, and if ever of there going to be a stress test for the movie business, of it during this period where the studios tried to push everything towards streaming for a period of time and the model didn't work every studio now has more or less a 45-day window around it, so i'm thinking that that existential crisis that people

have priced into it is behind us and, you know, going forward, then finally we've got a bunch of new businesses we've been looking into imax enhanced which enhances the streaming experience at home we have imax live. so, you know, i think we're in enhanced and i max slide. >> hispanic heritage month and all month long we're spotlighting contributors, leaders and our own anchors and reporters. here's trisha. >> i'm a first generation mexican-american my parents taught me to work hard and do a good job in the competitive corporate world you need more than hard work you need your own personal committee of mentors and coaches to help you navigate the playing field, check your blind spot and

position you for the next step because nobody got ahead all by because nobody got ahead all by themselves not spreadsheets. 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

welcome back to "squawk on the street". stocks are mostly higher we're near session highs and maernls energy sectors are among the top performers within that materials trade in particular as we continue to watch movement in commodity prices we're seeing some leadership from metals and mining type stocks including names like freeport, newport fertilizer companies also in positive territory both of those names are trading at fresh 52 week highs materials, commodities, all those prices in focus now david. back to you downtown at the new york stock exchange. as we head to break, can you get in on the new cnbc investment club with jim cramer. find out more at cnbc.com/investingclub we're getting word that the trust is behind shares of wynn

which represents 3% of the charitable trust so you got that going to are you "squawk on the street" will be right back ♪ earl: - hey barista: - good morning, earl! narrator: - since our beginning, barista: - there he is! narrator: - we've looked to inspire and nurture each other, by asking what's possible? what's possible when we connect? office worker: - coffee's here! narrator: - what's possible when we come together. female 1: - kayla? female 2: - oh. is it ok to hug? narrator: - when we open our hearts. female 2: - this is like the best date i've ever been on. narrator: - when we grow together. narrator: - after 50 years, w- [narrator] introducingle the grubhub guarantee:

our promise to deliver the food you love on time, and give you the lowest price, or you'll get $5 off your next order.

the pursuit is on. the pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility. join the pursuit of outperformance at pgim. the investment management business of prudential.

beam me up bezos william is that near was supposed to head to orbital space tomorrow but plans are delayed by weather. the launch is targeted for wednesday. at 90 years old this will make shatner the oldest person ever to fly to space. shatner tweeting out a picture with the crew. he'll be joined by three other people last night before appearing on cbs this morning you claimed i was the oldest person what a thing to have, he's the oldest guy i want to have the vision, i want to see space. i want to see the earth. i want to see what we need to do to save earth. i want to have a perspective that hasn't been shown to me before that's what i'm interested in seeing >> yeah.

we'll watch this one closely of course i'll be covering it live right now the targeted liftoff is for 9:30 a.m. eastern time from west texas on wednesday morning. right when markets open. it's going to be an 11 minutes of suborbital trip 62 miles out from earth. it will include a few minutes of weightlessness and then reland in the west texas desert this is the second crew trip for blue origin behind jeff bezos own trip and include two paying passengers on board this trip as well as blue origin employee, blue origin executive. >> i think shatner looks great he's 90 years old. wow. i hope that happens to all of us >> this is like -- >> amazing >> i was going to say the flight is not fast enough or long enough for you to slow more

gracefully >> he figured it out on earth. maybe it's all that time he spent in space already >> yeah. >> that's going to do it for us on "squawk on the street". "techcheck" starts now. happy monday welcome to "techcheck". carl is off this morning we'll have our good friend joining us today nasdaq adds to its gains from lastweek coming off its best performance since early september, top picks in tech including today's chinese internet stocks are on a