♪ ♪ train your mind. ♪ ♪ train your game. because your only limits... ♪ ♪ are the ones you put on yourself. ♪ ♪ here's your top five at 5:00 oil prices up again, stock futures they are lower is the great rotation here to stay we'll talk about it and where to invest now. investors eyeing the surge in energy prices and china and europe face critical shortages. fallout for southwest airlines and the weekend cancellations. why the faa says it will not be caught in the middle of the blame game. no squid game here

netflix standing its ground and standing by comedian dave chappelle around his latest special. and jamie dimon doubling down calling bitcoin worthless even as it surges close to all-time highs. it's all happening on this tuesday, october 12th. this is "worldwide exchange. good morning, good afternoon, good evening and as always welcome from wherever in the world you may be watching. i'm brian sullivan, thanks for joining us let's jump right in. futures are down mildly right now. could even turn by the time the show is over nasdaq futures off .2% all this after the market posted some markets -- i just said it, nasdaq futures are in the green

as well. so we could see an up day for big tech yields are ticking back higher. back above 1.6%. energy, of course, one of the biggest stories of the week, of the month, of the year oil hitting its highest level since october of 2014. we are seeing crude oil down a bit from its high of yesterday, but still above 80 bucks a barrel a number of stocks in energy hitting 52-week or all-time highs. names like devin, apache, marathon, hess and more. we'll get more on where to invest according to goldman sachs. that is your rbi and that's what they call a tease. stick around we'll have that as always towards the end of the show. crypto, bitcoin is trading at its highest level since may, 57,400 remember the all-time high was 63,333 but bitcoin has been red hot the last couple of weeks. we'll get more on that in a few

minutes. around the world, red arrows in asia, hong kong, south korea and china, their markets dropped. europe is getting going, they're down across the board, about .7% down we're not seeing the losses get bigger, in fact, some are getting muted as futures here turn around. that is your tuesday set up. before we get more on the markets and your money, let's get the key headlines that you need to know about now, including the latest on china's heavily indebted evergrande group. >> chinese property giant evergrande reportedly missing another round of interest payments to international bondholders overnight. they were due to make three payments by midnight totaling $148 million evergrande originally missed a crucial $83.5 million interest payment last month on a bond

maturing next year the missed payment triggered a 30-day grace period. it's now missed at least five bond interest payments sticking with china. authorities confirming overnight that 13 people are dead after a bus drove into a rushing river in the northern part of the country. the heavy rains north of beijing not only a danger for civilians but they're causing shutdowns at china's largest coal mines 60 of the regions 682 mines have been forced to close since yesterday, putting pressure on an energy system pushed to the brink. and allen horn, the long-time head of disney studio says he's retiring at the end of the year it comes alongside several other high profile exits from disney, including bob iger who stepped down last year after serving 15 years as ceo we'll get more with you in a

few minutes. thank you very much. let's get back to the markets and your money your first guest today launching a new small to mid strategy. dan varue, named as one of cnbc's top financial advisers for the second year in a row welcome back and congrats on that cnbc honor. well deserved. >> thanks, it's a lot of people at palasade capital who get that honor with me. we work hard for our clients. >> you're very humble. that list will be on cnbc.com. let's talk about it, we have the top financial adviser on the show here, kicking it off this tuesday morning. you guys have just recently launch add new small to mid cap stock strategy

why, and where in particular, do you see opportunity? because even though we call it small, it's actually a pretty big space. >> it is and, you know, so this is a category commonly referred to as smid cap so you're not quite at mid cap and you have a lot of small cap stock. so it's the 2,000 stocks in the russell 2000 and approximately half of the mid cap index but the smaller mid cap companies. one of the themes you and i talked about now several times is the importance of profitability. and we're seeing that right now with rising interest rates how important that is. the companies is that right not profitable the more speculative stocks have not done well in the more recent period as the yield curve is stee steepened and risen. but what have done well,

industrials, banks, materials, that's where you want to be. that's what's in the russell 2500, a highly profitable index. you have less of the profitable companies in the 2500 than you have say in the russell 2000, which is roughly about a third i think the small -- i think the russell is going to do well, the 2000 is going to do well as well that's my call from now through the end of the year. i believe the russell is going to reassert itself and between the 2000 and the 2500, those index should be among the best performing domestic equity benchmarks this year if i'm right with the steepening yield curve as the economy continues to recover >> dan, what makes you so confident on small caps? we showed a chart of the russell 2000 and small cap stocks have largely been flat money since new years, since december. >> it's been a consolidation period after that massive rise

that we saw with the launch of the two vaccines to get everybody back to work again now merck's announcement of a pill you can take if you are sick to lessen and reduce the symptoms of covid-19 look, i think the delta variant is running through, i think we're going to start to see, you know, things start to resolve themselves supply chain issues as we get further towards the end of the year you know, we had, i think, a growth scare more recently that's why i think the -- you know, the big cap tech names over the summer really reasserted themselves, and you saw a corrective period in the russell and some of the other companies. but i think now things are starting to turn the other way as the yield curves have begun to steepen, i think there's two

things going on there, i think it's predicting that growth is going to reaccelerate into next year we'll have a more normalized fed. we need cooperation in washington with a rational corporate and individual tax rate policy. that's certainly a question mark that's out there but all indications are original -- the original scope of the tax spending plan and the tax increases are going to be scaled down considerably so i think those are all positives. >> yeah. >> for the economy to continue its reopening phase. >> yeah, and we are thankfully seeing covid cases down 44% from their september highs. let's hope that continues. and everybody busts out. dan varu, appreciate you kicking off the show and congratulations once again my friend have a great day >> thank you you're welcome we're getting going on this busy

tuesday and when we come back, much more on the global energy crisis, oil hovering at the highest prices in nearly a decade and china and india worry about running out of power. could be another tough day for flyers of the southwest airlines the steps they say southwest needs to take right now to address the crisis later, watch out some of the signals seen in the red hot housing market for the first time since before the 2008 crisis tell you what those are. futures, they are turning around nasdaq now in the green. we are back right after this

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welcome or welcome back. the biggest economic story in the world right now may be the sudden surge in energy costs and shortages in many parts of the world. crude oil here back above 80 bucks a barrel in india some states are worried about running out of coal. lebanon forced to force blackouts as supplies run low. and europe and china facing huge prices for natural gas all this as oil and natural gas stocks surge higher here two energy etfs both at multiyear highs. and many stocks like apache, eog and diamondback are up more than

50% this year. the biden administration is blaming opec saying it's urging them to add more oil to the markets all this as america is down about 1.5 million gallons a day from the high. rita is joining us thank you. great to have you on again. >> thank you. >> it awe ppears that opec with russia is in the driver's seat biden coming out saying we're calling opec, asking them. putting the finger on opec, despite u.s. production down how do you see it all being played out ultimately? >> the pressure on opec plus is going to continue to grow from the u.s. given where prices are. there is, of course, a lot of concern about gasoline prices at the pump but the reality is opec has clearly laid out the road map. they are going to bring on 400,000 barrels per day every

single month and, of course, opec plus also don't want very high prices very quickly because it will damage demand. however there are uncertainties, what happens in the winter, do we get covid flare ups and that's why they've been cautious if pressure mounts and prices stay high, opec can look into tweaking the deal come the november meeting or december one. they could add more and force the next month those options are always on the table. it isn't just opec why prices are high, demand is rising quickly and more broadly we haven't kept up with investmentment because generally policy makers focus on transition. >> that's it, you nailed it at the end. it's happening in europe right now. we are seeing it and understand the so-called green transition is happening but we cannot lose

sight of the fact as that happens there has to be adequate supplies of power in the real world that we are in we're starting to hear european politicians say, this is the price of the transition and we have to deal with it i'm not sure if people in europe and the uk are going to exactly feel the same way. how long do you think, amrita, this power crunch with natural gas and even coal, believe it or not, might last? is it a multi-week story, a multi-month story, a multi-year story? >> i'd go with years for the simple reason, we have more renewables, wind and solar generation, but we've retired a lot more coal plants, right. like you mentioned, people have been writing the obituary for coal for years now and look it's rising the growth has been led by

emerging markets but this is a global world interconnected. so if you retired a lot of coal plants before demand has come off and we don't have enough renewables to fill the gap of course you get high energy prices gas prices we think will come off from the current level but we think it will be structurally a lot higher than we've seen in the past there is one truth about the green transition, that it is extremely inflationary to your point i'm not sure consumers necessarily understand that until now i'd love to see what the reaction is about the tradeoffs that people will have to make going forward. >> yeah. we're going to find out quickly. do you think there could be power shortages in the uk or other parts of the continental europe as the weather gets colder >> if the weather is cold, i wouldn't rule that out for sure. >> always appreciate and value your opinion thank you very much have a great day. >> thank you big story there.

on deck, a cnbc investigation and the nightmare facing some customers on one very popular cryptocurrency trading platform after their investments simply go missing we'll get more on that coming up right after this [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.

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for southwest airlines it scrapped another 360 flights yesterday after canceling around 2,000 flights over the weekend southwest saying bad weather and a shortage of workers a big part of the problem now some have tried to blame vaccine mandates for the shortage, but the airline saying that's not the case. southwest shares singking on th news yesterday and down again. down about.5%. let's bring in david really glad to have you back on as well. what exactly do you think is going on at southwest airlines right now? >> thanks for having me again, brian. as i mepntioned the last time, the schedule in the industry is complex on a good day and the typical things like weather, hec problems, the 800 problem, which grounded the fleet, certain

maintenance issues across the fleet can happen i've never seen anything like this if i were to use the quote i would say the perfect tsunami. let me explain from my view what needs to happen. southwest is one of the best run airlines in the country. i've known them forever, i studied them and studied their quick turn program years ago carriers turn airplanes in 30 to 35 minutes, southwest is 15 minutes. that's the positive of this tsunami experience the problem is, like so many things in life, that strength can be its weakness. they schedule so tight when you face the combination, i believe it is the combination of covid, pilot issues and i think there are some pilot issues, no, i don't think they're slowing down that sort of thing but before you effect the mandates 100% -- i'm sure gary

does this. you have to sit down with the pilots and say if somebody says no what about sick leave, these issues and so on in addition, the demand, as i mentioned once before, has caught everybody by surprise wait until you see thanksgiving and christmas -- >> it's going to be -- david i'm flying every week, i'm flying again sunday, i'm at the airports probably done 50,000 air miles already this year. i've seen it firsthand i think the issue is the pilots union at southwest airlines is pushing back on the vaccine mandate going to court but southwest and even really others inside the airline are saying no, they're not really related. our pilots are wiped out, they're exhausted because people got furloughed now the sudden boom, they simply don't have the people and pilots, they need sleep. you don't want your pilot

running on being awake for 22 hours. how bad do you think it could get this thanksgiving? >> well, if they don't get ahead of it from a scheduling point of view, it's going to be a problem. i really hope it isn't these are smart people let me give you a technical observation. as we mentioned, you can't bring a pilot back tomorrow morning so you have simulator time. and then pilots, you might take people that are trainers in simulators and put them on the line and they can only fly 100 hours a month by faa regulations anyhow so you have the training component, the shortage component, the demand component, that's the tsunami their strength has been moving airports fast. but when you get all these blips together that becomes a serious negative what should southwest do that they're not already doing? i'm sure they're on top of all

this stuff i think they need to come out and talk more about it i really do. i think go public with every single issue, covid, pilots, training, weather. it wasn't just weather in atc, people know that because american only lost 2% of their flights. so it's more than that one other thing i would mention, it's the technical capacity within flight operations to manage this stuff with the most sophisticated hardware and software i assume they have i know american does because i've been to their system control operation six months ago for a day. very sophisticated i am sure they are very good at that, but i can't answer that specifically for you, brian. but if i were them, from a suggestion point of view, come out with everything. today. come out with everything including a plan for the rest of the year so people regain their confidence in a quality airline.

>> david, to your point it is not united, it is not american, it is not delta, it's not sun country, so there is something specific there going on. >> something missing >> really appreciate your views. >> thanks. see you soon. >> thank you david's point he said they got to get out in front of it and they're going to try to. today on ""squawk on the street" gary kelly, who's been at the head of the country 15, 20 years he will be on this morning at 9:30 a.m he'll talk about everything that david just talked about and try to get some trust back into southwest flyers who have been facing a really, really tough couple of days, certainly stuck at the airport that at 9:30 a.m. eastern time in the meantime a check on this morning's other key headlines including the sudden resignation of jon gruden at the

top of the las vegas raiders. >> good morning. let's start with texas residents who won't be mandated to roll up their sleeves to get vaccinated against covid-19 governor greg abbott entered an order from preventing any businesses from imposing covid-19 vaccinations on employees or companies and standing up for david chappelle. in a staff memo obtained by variety but not independently verified by nbc news, netflix defended the chappelle's title, saying he's one of the top comedians today and said the platform would not remove his special. jon gruden out as the head coach of the las vegas raiders he resigned over reports he made

home mow phone bik remarks in emails >> like i say, i'm not a racist. i can't tell you how sick i am i apologize again to dee smith but i feel good about who i am and what i've done my entire life i apologize for the insensitive remarks. i had no -- you know, i had no racial intention with those remarks at all gruden issued a statement saying he doesn't want to be a distraction and didn't mean to hurt anyone. raider's owner accepted the resig resignation. and the coordinator will take over head coaching duties.

"the new york times" reported he sent the emails while an analyst at e spn those are the headlines for now. >> frances, thank you very much. good tuesday morning on deck, can you believe it, it is earnings time already again. maybe the only group that's going to get more attention than energy are the big banks but one thing you really need to know ahead of it chris way lan is here with that. do you futures are up and were ckig aerhis. a [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. i'm so glad we did this. i'm so glad we did this.

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xfinity makes moving easy. go online to transfer your services in about a minute. get started today. everybody. good tuesday morning, it's 5:31 eastern time hope you're having a great start to your day, here's how your money and the markets look today. stock futures are now in the green. it's been a big turn around in futures over the past hour we know that volumes on the futures market and with all due respect to our show are low at 5:00 a.m. so they tend to be fluid. they were down when we got in but we're seeing a gain. at one point the dow was indicated down 150 points, probably one trade same story for the nasdaq.

and volumes increase we are seeing the mov to the upside right now. futures are in the green not a lot but they're in the green nonetheless. as always, more on the markets and your money in moments. but let's check this morning's other key headlines including congress looking to kick the debt can down the road silvana has more on that what do you got for us >> reporter: here's what i'm going to give you. members of the house return to washington today to approve that short term boost to this country's debt limit the $480 billion increase cleared the senate lake effect snow w-- senate last week on a party line vote. the house is expected to approve it and send it to biden this week but congress will have to revisit this december. turning to the housing market. jumbo home loans are approaching levels not seen since the lead up to the 2008 financial crisis.

according to a new research note from bank of america, large residential mortgages that exceed conforming limits could hit $550 billion this year and j.p. morgan's ceo jamie dimon says while global supply chain issues are hindering economic growth the problem he says will be a temporary one and calling crypto worthless saying he expects governments will take steps to regulate the digital assetsan eventually. back to you. >> thank you why don't we stick there with jamie dimon, j.p. morgan and the big banks because earnings are going to roll out soon hard to believe but true everyone is wondering how the move in interest rates mostly to the down side last quarter will impact the numbers for more let's bring in christopher whelan, good to have

you back on, ahead of these big bank numbers about to roll out the ten year has ticked up the last couple of weeks but that's not going to impact the numbers because the numbers are based on the previous quarter on a macro level, i know all banks are different i get it, what are you expecting as a larger trend from the numbers that we see rolling out? >> i think what you're going to see, brian, is the banks are going to stabilize we're not going to have the volatility we've seen in earnings the last 18 months because of covid and other factors and the question is what is the run rate like going forward? i think it looks a lot like 2019 j.p. morgan is only half loans today. that number is falling because they're not making many loans, they're not buying many loans so they've invested in securities that's the story across the industry even though the fed has grown

deposits by 30%, lending is not growing. we're at a 50 year low for assets it's like the end of world war ii, the banks are all buying securities and that's not driving net interest margin as much as we would hope. >> you're right. maybe we need to find another term i don't like to call goldman sachs a bank, j.p. morgan a bank i understand they have a banking unit but they're different from the small and local banks that we use around the country. these are trading companies that may have a bank inside them. to your point, chris, 50 year lows on lending. if that's the case, who's actually lending money these days >> the new platforms the non-bank lenders, whether you look at mortgage, autos, consumer lending, that's where the orga rig nation is happening

banks have been so badly limited and neutered by people like elizabeth warren who think they're a problem. but the problem is they support the economy. if they don't lend then you have less growth, less job creation i think we have to re-examine how we look at the institutions. look at bank of america, $2 trillion of assets and deposits and they're barely growing. we have to fix this. if we don't get our banks in the game we're not going to support the economic expansion we'd like to see for our people. >> or our small businesses certainly out there as well. to your point, chris, some of the nonbank lenders are picking up the slack i want to focus on one bank. a while back on this show, you're not a stock picker, an analyst, i get that. you talk to us about western alliance bank corp. what a good spot they were in, under the radar, crushing it, by the way

they continue to wal is the ticker, i'm not asking you to make a stock recommendation, but is this a company that you still think, even under the midst of the big names is doing it right? >> very much to hear an example, brian, of why the value creation is occurring in the smaller banks, the large regionals like western alliance, focused on the mortgage industry and then they went and bought an interesting company called ameri home frommo poll low and they are head to head with penny mack and the other leaders in the industry. you can see the stock is up a two-fold increase from the conversations we had i'm a banker but i talk about fundamentals, drivers and western alliance is a great example of why small banks generate more value than the larger banks

>> yeah, we are watching those bank earnings set to roll out as well all next week hard to believe, but true. christopher whelan we appreciate your views as always 50 year lows on lending. incredible thank you. >> it is to chris' point no credit no expansion there. on deck a cnbc investigation you have got hear. it is about crypto and why users of one huge trading platform are very, very upset we're back right after this.

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welcome back as cryptos go main stream with consumers, a hunl number of them are doing business on coin base. it is one of, if not the, largest crypto trading platforms in the world but for a number of customers i it's recently been a nightmare after hackers stole their investments and many say they have been left in the cold by coin base's customer service amon javers looks into this as a cnbc investigation. >> i was panicked. >> reporter: eric and molly richardson said they saved nearly $1.1 million of bitcoin in an account. but then in july he got an alert on his phone the message said someone logged onto their account. he clicked on the text, logged

in and received an email that their two factor authentication had been changed. >> he was in a state of shock. so i tried to help him i tried to stay calm and i, you know, looked up coin base online, trying to figure out how to get ahold of their customer service. >> reporter: like thousands of other coin base customers the richardsons said they got nowhere when they tried to get immediate help because the company didn't offer any live phone support. email was the only option. >> within the 20 minutes we sent the email, somebody had done 110 different transactions sending out about 21 bitcoin >> reporter: in all the hackers stole some $700,000 of the couple's saving. they're not the only ones as cnbc reported in august, crypto holders across the country have been victimized by hackers who drain their accounts and then they can't get anyone on the

phone to resolve the issue coin base said in august they set up a phone number for customers to call if the account had been taken over but that doesn't seem to fix the problem. customers told us the live support was useless, a joke, and only for accounts actively locked so we wanted to see what would happen when the richardsons called the new support line. >> i'm going to call and see if i can get my account finally unlocked and maybe should i ask if they'll give me my money back. >> reporter: a coin base agent does answer. >> i got locked out of my account two months ago and i haven't been able to get back in, somebody stole 21 bitcoin out of it. >> reporter: the agent told richardson he doesn't have access to his case file instead saying he should respond to an email he already responded to. a coin base spokesperson said we recognize the challenges our customers have faced with their accounts improving our customer experience continues to remain a

top priority eric said his big request is not doing more to secure his bitcoin before the theft because he thinks the text alert was a phishing attempt to get his information. one thing he didn't follow-up on is a cold storage device. >> i have my friend's voices every day saying eric put it on cold storage and i didn't. >> reporter: nicole, who helps clients secure their cryptocurrency said cold storage is virtually hack proof. you get a private key like a password to buy and sell crypto and store it offline. >> when you keep your funds in cold storage you own the funds you have access to them. they're offline, away from hackers. >> reporter: of course the problem with even that solution is owners can lose their passwords or something can go wrong with the device itself as far as the richardsons, soon after our interview, coin base

restored access to their account and received a credit, but nowhere near what they lost. just $500 worth of bitcoin. >> i felt like they kicked sand in my face that's what made me think is there anybody senior at coin base looking at this >> reporter: coin base said they won't refund the savings because the company was not responsible for the attack more than 12,000 complaints have been filed against the company since 2016 meanwhile 500 new complaints have been filed since our story aired in august. >> the markets collapsed in crypto in july i'm sure people are frustrated by that bottom line, are these customers, the richardsons others that you talked to, are they going to get their money back or part of it >> reporter: it's tough for the richardsons, what the exchanges say in a case like this, we had

nothing to do with the hack, they're saying the hacker got into your phone and the phone company is responsible for that. and therefore, it's not our problem. so you saw that they got about $500 worth of credit there that's tough when you lose $700,000 it's an emotional experience for a lot of families and individuals who have lost this money and hackers are getting away with it you can track some of the funding on the block chain but ultimately they're able to move it into jurisdictions where u.s. law enforcement can't follow them and they're able to cash out a lot of this money. >> a lot different than butch cassidy, it's like we didn't take your money, the robbers took your money. but that money would come back through the fdic, a little different here, isn't it >> if you had your money in a bank it would be fine. but crypto is not money and an exchange is not a bank >> very well said. aemon javers, appreciate the

cnbc investigation see more of it on cnbc >> you bet. on deck, your morning rbi and eight oil and gas stocks that goldman sachs is pounding the table on now dr. jarrett is here to weigh in and let you know what he's seeing in the markets right now. dow futures are flat, may be slightly higher. oil is up. we're back right after this.

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today's rbi stays on the oil and gas story. and why not. it is one of the biggest economic stories in the world. and really america right now but instead of complaining about high prices, this rbi is going to help you make some money off of them. first, let's look at how well some of the energy related stocks have done here are a few big etfs in one month returns. the xlp up, oih and xle up 18%

each what a turn, oil up, tech down but with so many oil and gas stocks booming, is it too late to buy no but you have to be selective so says goldman sachs. in a note, goldman's energy stock team said, quote, we view long-term oil demand risks as overstated in other words, oil is here to stay and they continue, quote, in north america we believe investors can ark bitrage this difference in views by owning eight buy rated upstream stocks in our coverage. those names are, get your pens or notes ready goldman sachs says right now you need to buy hess, pioneer natural resources, ox den shl and kosmos energy, it does all of its business off the coast of west africa.

the other four, exxon mobile, cenovus, canadian natural resources and suncor energy. the last three are all canadian companies. goldman sachs said these eight stocks should return an average of 18% according to their estimates going forward. random but interesting stocks in the o&g space. maybe you can make money to cover your higher heating and gasoline bills this winter random but interesting let's stick with energy now and bring in john, he is market cofounder and cnbc contributor we talked about it by the way in ve vegas, live and in person at your awesome conference about a week ago. >> thank you. >> are you seeing any options action in some of these names or some of these etfs >> in particular, brian, it was great having you there because

people always enjoy your insights and expertise and energy what you're talking about is exactly what we've been seeing for weeks now. about four to six weeks we've seen the xop, which is the exploration and production etf up about 26% and the xle up about roughly half of that, 14%. and both of these, and many of the constituent stocks that make up those two spiders, if you will, have had huge inflows. both of stock, people buying blocks of stock, as well as options. i know one of the things we talked about brian was energy is not just one story it's basically all of the energy complex. so if you want to trade uranium stocks, those are absolutely just moving up like crazy. coal up 300 and some on percent

over the last six months and that's really putting even more demand on the other types of fossil fuels because if you can't get enough coal, brian, you're going after nat gas or going after diesel, a derivative gasoline, so all of it is moving up >> coal is the best performing commodity this year. 2021, the year of the fossil fuels, i guess, jon. and the ceo of aramco said in china, they have these coal and natural gas plants they can change input to oil or diesel and thinks that can increase oil demand by 500,000 gallons a day. we can't get coal or natural gas, let's burn oil. it's like this is 1931 we're talking about. >> yeah. and i think a lot of it is that,

of course, mbs, the head of saudi arabia really by dropping those prices so severely that briefly they wentto negative i 2020, he really disciplined a lot of the folks in opec that up until then had not been hit with that stick that hard and that might even include putin. because his real effort was to get putin in line. and i think they both benefitted when you look a year ahead because look at the price that putin is getting for natural gas and various other fossil fuel derivatives in europe, right now. absolutely exploding yesterday we had slumber jay and halliburton, people that pull it out of the ground, a lot of the focus is on energy and people that can get it quick. >> so you are seeing some

activity there in the options, in the equities of slb and hal because again we always tell people know what you own when you look at etfs they're basically 40%, slb and hal. a couple big companies and the rest are laid up you're seeing more activity in the individual names as well >> yeah. absolutely talked about it yesterday on the halftime report. the slumber jay call activity and both of them have made some pretty nice moves over the last few weeks, brian i think there's a lot more to come there a lot of the discipline from the shale fields i think starts to --some of that discipline probably fades a little bit as we get closer and closer to 90 and pushing perhaps through to 100. i don't know if we can get much higher than that, but i think that turns the spigot on, pardon the pun, if we get over 90,

towards 100, i think everybody is going to open them wide open. >> yeah. and also demand is structured. maybe hit 6 buck gasoline and parts of hawaii and california as well. you get to points where consumers stop driving or dial it back. thanks for having me at your conference, fantastic time, always appreciate it. >> thank you >> take care. suddenly everybody is on the oil and gas bandwagon, folks a long way to go on the story through the year, particularly in europe and asia as well that wraps it for us on "worldwide exchange. i'm off tomorrow but i'll see you back here on thursday morning as well. squawk and the gang picking up the coverage have a spectacular day, thanks for watching

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good morning, stock futures looking to erase some overnight losses as we head directly into earning seasons, what's moving right now. j.p. morgan ceo jamie dimon says he still thinks that bitcoin is worthless but acknowledges his customers disagree. and more fall out for southwest as they cancelled 360 more flights yesterday when the carrier says they'll be completely back to normal. it's tuesday, october 12th, 2021, and "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. and andrew, welcome back >> thank you >> we're going to check -- >> it was just one day. >> i know. we missed you. you're back. >> it wa