good wednesday morning welcome to "squawk on the street." i'm carl quintanilla here with david faber and jim cramer the futures turn -- ten-year near 159, fed funds future close to pricing in a first rate hike as soon as september b ofa, blackrock, delta all beat, but investors closely

watching forecasts >> moody's warning of black clouds ahead, and the white house brokering a deal to keep ports open. and william shatner to become the older person to fly into space as blue origin is set to lift off in the next hour pretty niece beat, average loans of six, that's a interesting -- >> i'm sick of the following obviously m & a look strong, credit cards are strong, then you start hearing things suddenly everyone is looking at credit cards are weakening can people just understand -- david, you know this better than anyone -- this stock has a his

tire of opening up, going down and we are part of that history once again. >> there are people who keep these statistics, but i can't remember a quarterly report from jpmorgan where the stock moved higher in a significant way, maybe by pennies, but this is rarely a positive response to their numbers, despite the fact we say these look pretty good. >> it's been a good stock going into the quarter, but there's a recognition when we start getting there that, you know what this company is not a member of faang, now a super high-tech chutzpa company. when you have comments like jamey about bitcoin is worthless, the world is flat i worked there i'm trying to get my bitcoin moved over to jpmorgan

we have to stop with this obsession. but, david, these numbers are and excellent, what does it mean to the market? >> i'm not sure. there's a period of time after they report earnings, because the stock moves up >> what's going to happen -- you want to focus? >> i'm listening i'm doing both. >> what happens is, by this time next week, we'll realize it was the best of the quarters [ laughter ] i used to say to my friend, mr. vangelisti, joe, delay your reporting for one week he was the concierge

he's dynamite. just report a week from now, and everyone will realize you're the best he would laugh, but the fact is they are the best. >> investment banking up 45. >> look at that. >> buying debit and credit card spend now up 25 over 2019, in q1, it was owned 10, but to david's point, it's at some resistance levels. >> it's discouraging to me, and then we'll get gen, it will be up five, because the stock had sold down in anticipate, so going up up up, and now we realize it was going up because of this. you know what it's not, david, it's not a meme stock. >> no, it is not, nor will it ever be. it's a real company.

>> i just felt like i wanted to go see him, because i was starting to lose faith in capitalism. >> did you spend some time >> yes, he was also killed about ten minutes from where i walk. >> did he communicate anything to you >> you mean, kind of a -- what is it -- like save the whales? >> we'll get to him later. >> so, he didn't communicate -- he just reminded me how this country was built, and you have to be a little tougher he was tough also, remember, he wrote pamphlets not until his name, but the reynolds pamphlet, which is not unlike at&t with that channel they have. >> starting to make a comeback

>> i'm sorry, no it's like ahab with the whale, except at&t is his whale. >> just call me ishmael. >> they love that. >> like citi during the period when they were dancing musical chairs, they like it >> they really are so pleased. >> well, back to the banks for a moment, if i might reserve release never viewed that positively, even though it is a positive. it's not a negative. >> but people are saying why didn't they include that >> yeah. >> look at that, will you? it's a hoax. >> he said i don't count them either. >> is jamie saying -- is he doing that stuff, where it's like, yeah, i don't know, america is great -- >> the line is, good growth, the

dampening effect of the delta variants, and supply-chain disruptions. >> consumer may beau weakening. >> but he thinking disruptions will be a thing of the past come next year. we're past temporary when it comes to inflation, right? >> bostic has a transitory jar every time he says the word, you have to put a dollar in. >> do i win the argument then? it started taking place about a year ago >> bud light transitory is a drinking game. you have to drink bud light every time you say it. you end up getting smashed before "mad money." >> that's a lot of bud light. >> i have to switch to coors light. >> we're going to talk stars upgrade. >> how fabulous was it >> you saw the jeffries quarter, and that's un100%.

we'll see what we go ahead from goldman. >> we've a had you been spot, why don't you get with the program. >> hubspot >> my god, roughare you asking what hub spot is club-based marketing >> it's the best stock in the market. >> oh, i didn't know. >> that's what hamlin told me. >> i don't watch the ticker the way you do. >> you do use it well. part of your old days, i imagine, right >> hub spot, not jpmorgan? i thought it was free per. >> can i just say it was a great quarter. if they reported on wednesday, next wednesday. also delta, of course, moving a bit lower, says they expect a modest current quarter loss due to higher fuel costs. as for the vaccine mandates,

here's what ed bastion said earlier. >> 98% fully vaccinated across our entire company those numbers continue to improve day by day by the time we get into november, i'm confident the number will be in the 95% range. we haven't done it with a mandate. we've done it working collaboratively with our people, trusting our people to make the right decisions, but at the same time avoiding the divisiveness what the mandates pose to society. >> says that revenues should be back to 2019 levels. by 2023, sees business and international having a good year next year. certainly as the u.s. will open land borders, vax required, that will help tourism. >> that's a better quarter than i expect from southwest. delta did better than southwest. i also want to say to corporate

america, stop using the word man dade requires is a sense you have to do it. mandate is the sense of big foot what do you think? >> i like it >> when you go to a college, well, we require meningitis. we don't mandate meningitis. mandate is jackboot. >> we also require you to take math. >> a required coral. >> when i got to harvard, i was required to swim 100 yards, because the titanic, the guy didn't make it to the lifeboats. it was required. >> that was back, in what the 1920s? >> they invented swimming by then >> we did the crawl. >> the australian crawl? >> well, now, speaking of aviation, boeing is going to require vaccines for their --

>> that's 25,000 people, by the way. >> i require better earnings, better sales. >> i've been saying it for a time -- do you own it in your investment club? >> i'm a big on it for the investment club. i am -- you know what i'm going to do? i'm going to do some squid stuff, make your face into a qr code it's you, me and a qr code [ laughter ] >> we'll continue to watch it. the airline, the way in which american and southwest agreed to look past the texas law was because a lot of that is federal work. >> i don't understand. we truly have a federalist system, and president trump was deeply into the old days, a little states' rights action it seems like president biden is

just beginning to realize we're a federalist system. he did not say we've got to leave that to the county of los angeles. no, we're starting to act like a federal government again, more hamilt hamiltonian's, and we're re-claiming the notion of nationhood the texas governor is off the rails, but they're afraid to say it i think we're a federal system the business world is mournings the death of hasbro's ceo brian gold ner

>> can i just say, carl, every time i would have a gsay a grea job, and he would say, no, a great team >> i would say, no, leadership, he would say, no, team >> he was on the board of viacom, talking about how he changed this company from a toy maker into a media giant. >> the acquisition was great he had to do it. if he was just a toy maker, he would have been past his prime he had visions he also would talk about the fact that he was able to revitalize the games that has been a part of their tradition, but what he mostly did was show humility, no matter how good the quarter was. how mile is in short supply. i got the call on sunday that he was six, and i told my wife, this guise is a titan.

it's what you hope a guy would be. >> our thoughts are with the hasbro community brian goldner, dead at 58. ♪ feel stuck with credit card debt? ♪ move your high-interest debt to a sofi personal loan. earn $10 just for viewing your rate — and get your money right. ♪ retirement income is complicated. and get your money right. as your broker, i've solved it. that's great, carl. but we need something better. that's easily adjustable has no penalties or advisory fee.

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we built the recycling system from the ground up, helping san francisco become the first city in the country to have a universal recycling and composting program for residents and businesses. but it all starts with you. let's keep making a differene together. today white house expected to announce plans aimed at

solving bottlenecks. the president is also scheduled to immediate this afternoon with executives from companies like fedex, walmart and depot it's a growing list of decent supply-chain news, whether it's vietnam getting a bit better, toyota, malaysia, shipping rates on u.s./china coming off the highs. >> we'll hear from taiwan semi soon this is precisely what was needed the labor blamed the shippers and the railroads. the shippers and the railroads, union pacific, you know, for the if labor worked around the clock, we would be able to get stuff there. i understand there's a technological problem, they don't know where the containers are, but you need a president to

come in, like harry truman did, to stand up and say we can get this done. sure enough, he did. >> he's trying. >> what happens if they don't over there in china? >> don't ask nothing good 24/7 would be helpful. i don't know how many ships are out there in the harbor. >> remember on the waterfront when marlin brando get out -- t.j. cobb was unbelievable in that when marlon brando gets up, everybody goes to work, okay it's like that remember, that was actually the mob controlled our ports here, right? >> yes where are you going with this? >> bernstein, great score. >> yes, absolutely. >> i'm saying there was a control -- >> i think -- let's keep going here >> give me a beer.

>>le ball is in your court. >> did anyone read the book? my god, do not read the book, he dies -- >> i'm almost going to give you charlie here. >> i can't have been, that cab scene. now, carl, what i'm saying is that. >> he was my brother >> someone had to stand up to labor, and the president did remember how he said he's a union man? so let's focus on that don't forget the demand side there's still an enormous amount of demand, which is why we have the supply disruptions. >> the country has changed the consumer is so strong. we have to go to you, carl there's someone in my ear who keeps saying this. i don't have one of these at "mad money", now i am told. at the top of the hour, jeff bezos and blue origin are set to

send william shatner, along with two executives, three months after bezos himself took the trip going to watch all of this. >> it's incredible to look at the images we currently have a hold right now the hold is about four minutes and counting, so it's poised, this latest second crew mission is posed to happen a few minutes after 10:00 a.m., to see imaging inside an electric rivian, getting ready to drive the four crew members to the edge of space is really quite something to behold. you have william shatner, captain james t. kirk, probably best known as the original captain of the starship "enterprise" at 90 years old,

he's poised to become the oldest person ever, joined by audrey powers, the vice president of mission and flight operations. what is notable from this, two paying passengers will be on board this 11-minute suborbital flight as well dr. chris boshausen, and glen devries. the price for the seats is still undisclosed, expectations is well into the six figures. it speaks to the fact that blue origin is commercially operational when it comes to these space tourism flights. this is the second one in three months behind bezos historic mission, and one more is expected after this. we're about sick minutes delayed. that crew is getting ready to make its way into west texas at

launch site one. we'll continue to monitor this. >> nasa just tweeted, william shatner, we wish you the best. you are, and always shall be, our friend that's a reference to "wrath of khan." >> remember the earwig >> you've brought that up a couple times the greatest ricardo montalban, one of best villains. >> you can't beat that >> nasa is very welcoming of all of this. it's been interesting to see how the policy that is changed for nasa over the last decade or so. keep in mind, here in the u.s., going back to the 180s there's been a push and in fits and starts for a variety of reasons, to see more civilians actually

be able to partake in space flight, but these public/private partnerships that nasa has been involved in in recent years helped to spur this entire sector that we're now seeing become reality we're going to watch the launch with your help, morgan. we have some interest calls on plug, signet, constellation, apple's production as well, as "squawk on the street" continues.

your shipping manager left to “find themself.” 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 our futures have been back and forth between red and green, as we weigh a lot of boiling pots cpi running a bit hot.

some putin comments about net gas and how russia is ready to supply as much asup needs. inbe iabt urfo minutes.

>> announcer: the opening bell

is brought to you by - welcome back let's squeeze in a mad dash as we get ready for an opening belle. constellation brands. >> there's a lot of flop and chop in this market. constellation brands have done premiumization of everything they've been, they've dropped the lowend brands, the hard seltzer does not work out. but modelo especial, they canno even stock the stuff they own a brand called victoria >> yes. >> when they introduced pa pacifico, it took america by

storm. i think trying to push them victoria, maybe they'll do it. they have a very good ceo. >> let's get to the opening bell at the big board it's the extra group of companies celebrating the recovery of the travel industry at the nasdaq, celebrating an ipo, abbott exchange, and payment automation provider. we have not yet hid on this report yet of apple. >> a bloomberg report did say that they checked -- it looks like suppliers, broad com -- have not been able to produce as many chips the language is making so apple is not moving downward, but they're talking about how they cannot meet projections. i'm talking about how they have a demand problem some of the more of a, hey, we have too many demand

katie basically came out and said it, you know, this is not news there's just tremendous demand for the product, let's move on so i did not take it as nearly negative as when the story broke down obviously there will be numbers cut. numbers cut will always send the stock down goldman sachs used the opportunity, once again, to slag apple. they're a slager >> though, in general, tips back to the 200-days on the smh, flat since january, micron, 52-week low. >> a real breakdown, protected by the dividend. i've been liking it, we sent out some bulletins to members of the club that you can't -- micron is not marvell, okay? >> inindividually and advanced micro are card companies, so you're wondering why they're not going down the same. skyworks is directly related to apple, qualcomm is, too, but

david, how about the way they waited and hit people with the buyback. cristiano playing hardball. >> a new stock repurchase in addition to the $900 million that they had left >> what dunk >> it's a nice number, versus a positive impact. there have been a lot of buybacks remember when they moved from buying nxpi to not, and then they increased it to 78 there, too. >> they came in and bought a lot. it's an important part of their overall strategy. >> how about the succession there? engineer malakof, christian from brazil i like him. >> does that mean he'll be a guest on "mad money" soon? >> yes, that's exactly what it means. >> you think i'm that

transparent? i've got somebody lined up tomorrow -- i'm not going to same, bring it on home to me, as sam cook says. >> on this show? >> yes i'm in a zen moment. you know, my wife, who never watches the show, said i heard you hugged 2k5i67ds yesterday. what was that about? i said, it was an ampleation once you have vaccines, it means something. unlike the rest of it is country that it means -- >> did you have a fight with him? >> no, was demonstrating once you're vaccinated, if we're required instead of mandated -- it's kind of like workers' comp. you're required. i took a binax as soon as we hugged. there's been a lot of work on texas, tennessee, louisiana, hawaii, where the cases have not just rolled over, but back to cycle lows. >> your tweet was the first i

read this morning. it was just so exhilarating. what you basically said is that, it's over. >> jpmorgan has put it like that effective end to the pandemic. >> yet everyone is so negative we need like a coach in chief. >> is it really so negative? it's not about the pandemic, but so many other things we talk about. it's inflation at 5.4%, continued demand it's a labor shortage and/or at least a complete mismatch in terms of people not wanting to work and the need for more people to do work. you're working on that one, too? >> 30-year -- >> which is first, working on the chip shortage or the workers shortage >> carly garner, my best chartist, said oil has peaked 30 years, if you look at the chart, this week. this week. >> the seasonality >> the seasonality

right now. this week. look at the chart. >> wti is below 80. >> right here, right now. >> it's on the move, though. what do you do with that you sell chevron what do you do >> i like chevron, but you with go buy -- you know what the most important note was this morning? it wasn't the signet numbers or hubspot. it was a note i read about the top truist -- david, truest, that -- water -- is the most -- they're says west rock, pkg, i.p., top, top, top. if you have a top in chemicals, if you like at dow chemical, you've been a top in chemicals, and liner board, what you have is a top in inflation. my father sold that for a living when the cycle broke, he would

put his boxers on, and go in the bedroom, and my mother would say don't you dare bother dad. it was kind of "death of a salesman" rap. it was the same one that lee j. cobb had. >> i was biff. >> you weren't happy >> no, he was selling toys then. he sold carpets, and then liner board. that was the worst when it peaks, boom, you're done the truest call today is a call that says inflation has peaked >> attention must be paid, huh >> and a smile and a shoue shin. >> we can't do this all day. >> keep it coming. >> i remember once he sold bags

of caesars >> lee j. cobb -- >> how about "12 angry men"? >> how about back to -- what do you want to talk about the stock market >> how about ford? >> i just want to come back to apple. 2.3 trillion dollars market value, it's worth talking about a lot. >> there's an event on the 18th. >> there is. they're also talking about potentially health -- i'm not ben -- making the air pods a -- >> tim cook's desire is to have that. >> posture management on your air pods >> stand up, stand up. >> pull up. >> i think apple is doing so much better than people realize, but let's not forget the small-mindedness of the apple analysts who will seize on this and say it's a sign that things really aren't that good.

i have tony on after -- >> he's kidding. >> totally. >> he can say negative thing, but his concluding is always, you know what? don't worry. i'm waiting for tony to come on and say this is exactly what i've been looking for, a cut in numbers, and that's it >> one thing we have not gotten to, really ly is s.a.p. and lvm. sales up 20, are we beginning to threat out these early commentaries. >> i thing it shows you once again the cloud is king. we're november -- i don't want to talk about what inning we're in, but maybe we're not even, you know -- >> it's still very early. >> lvmh, david who is the richest man in the world. >> i think it might be musk, but

i think bernard arnot might be who you're talking about i would love him to open up the 21 club, can you do that, please very convenient, nice place to meet people for a drink. come on, man >> fabrizio and bernard aroundo a -- arnot are the two best-dressed ceos in the world. >> luxury still a beneficiary of china. >> what do you make of that? they haven't cracked down. >> it's not just them. as you say, it's bernard also it's riche mond. >> that's the number one gift. the communist regime doesn't mind if you have a $15,000 watch

or $50,000 watch. >> so we continue to see that demand coming from china, which is the fuel for so many of these luxury companies. >> have you changed -- through throw out your burner phone that you were talking to to jack ma in china >> there were reports that jack ma is now in hong kong which, of course, part of china, so yeah, it's not that hard to get there. >> no one said great things about nike today, which is disappointing. the stock is up anyway there are certain stocks they're just addicted to. >> we did get the goldman initiation today. >> buy 172 great cash, resume room to expand direct to consumer. they thought the sourcing concerns were overdone. >> made a real comeback. that was a very disappointing quarter. people in there better hope there's a change in the direction. the united states is very strong interesting that boeing is back up after that number that came

out. boeing is up which, i guess, is a benefit for you and the investment club. you still own that company >> fresh two-month high on plug today. >> andy marsh is about to announce the first long-range green truck with renault he has deals with amazon, home depot, and now a gm deal you need a $3 subsidies for commerce in order to make this things economic. it's not economic right now. plug power, we got one major -- put chevron to put plug power terminals at their chevron story, that's failed, but bp is like that. >> look at that. see, there's a stock making a comeback. >> morgan stanley's target is 40, which would imply up side.

>> chuck schumer last quarter up there. this analyst meeting is very bang he aye to say. the cell phone that was the size of a brick was going to light and terrific he was a visionnary. >> there was a time when lucent was the most held stock. >> of course, the stock is still outperforming the broader market by a good amount this year with a 28% gain. >> a lot of people pay up for it when it's never worked

>> there really going to be loan growth in the future >> yes what we really want to hear is fortress earnings per share. >> it's probably going to be a great buy. it's just painful, because people refuse to understand, do not pay up for jpmorgan. they came out, what, 648 this morning? >> i was like, what are they doing? >> faangs doing all right other than apple it hit some los. what does the shaking of the finger mean. >> i'm telling you, that facebook advisories board, they're interviewing the they're

not owned by zuckerberg. >> they just make proposals, don't they >> i think that's going to change they can tell zuckerberg this is what we recommend. inch i'm not sure what leverage they have of the super owner >> i'm going to tell what you we're going to give them -- by saying, this is it these people are so distinguished, so good and they have to be listened to >> retired -- nobel lawyer at? what, are you going to say no to them this is this now, it's not moses with dothan. he's not dothan. remember who played dothan >> no. >> edward g. robinson. >> that's my line.

[ laughter ] i am telling you, this is a heavyweight group. >> i you this zuckerberg -- >> i'm putting my neck in and saying yes especially when i have this nice tie on >> you have two suits on thinks seiny i think he's going to listen, because if you look at the makeup, and you can google of makeup, these people are such hitters. if he doesn't listen, he's making a major mistake. >> definitely bounced off the 200-day, bake to 325 let's get to bob pisani.

>> we had a bit of a wobbly opening. that is very typical banks tend to move down. down a bit today but it's had an incredible run the good news is demand is terrific across the board customers keep saying -- here's the bad news. it's very serious. we've had commodity and labor inflation, on top of that china growth fears there's a bit of a problem because of these issues here, the 20 or so companies that reported

not as strong as earlier in this year they've had 21 companies reporting, excluding jpmorgan. now historically that's pretty high, but the past few quarters we've had 18% to 20% beat. they're not beating by as much the second problem is those early reporters, those 21 companies, they're not provides guidance that's as strong as the last quarter, so the analysts aren't raising estimates as aggressively what everybody is watching is what the operating margins will be north of 13% this year now, right now -- this is an estimate for the second quarter, it's about 12.6%, so it's down a bit, but don't kid yourselves. these are very, very high numbers, the historic average, about 8.5%, we've been inching

up for a long time, at that 13% level for a number of years now, so it's not clear how long we'll be able to steven that 12%, 12.5%, still will be pretty good overall the important thing about today the big story here, i-shares and the money that keeps going in larry fink made the best from barclays, $13.5 billion it's been extraordinary even here, looking at the long-term flows into the etf business this is mostly reflecting money it is retail flows are continues. essentially, it's all about the inflows and about that money that keeps going into the etf

business it's up 125% since the march bottom great showing, again, by larry fink and company. >> thank you, bob pisani i think we have the astronauts and passengers, morgan, headed to the pad they are now headed to the pad the engineers were working on the vehicle readiness. that took more time than expected we're now less than 42 minute from expected liftoff for the latest all-civilian flight to the edge of space. you can see, carl, they're driving, bezos is with them, the founder of blue origin

the four astronauts are driving to the launchpad this is launch site 1, in west texas, where there's not a whole lot other than tumbleweeds, tarantulas, and in this case, spac and it does speak to the opening up of space flight more broadly. albeit to people with deep pockets or close relationships with people with deep pockets. but the opening up of space to more people, more civilians. >> we're going to watch it as our eyes are all over west texas. we did get up to 159 or so this morning. i think we got the tenure back

to 154 the s&p just a shade below wl

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let's get to jim and stop trading. >> thinking about where did all the workers go i believe one of the problems is productivity has made it so a lot of people we don't need you. now this theory is the financial hub they're doing is good. watch work day work day is a sign or like i have on tonight, like salesforce service now. that basically make it so you can do more with less. and i think that's a continual theme. when labor gets expensive, you bring in these companies

i do not think he's going anywhere he's going somewhere he's taking his lane and going somewhere. >> where do people think he might be going >> he's not going anywhere he's friends with david blain. >> david blain he'll make him go in thin air? >> david blain is funny. dr. oz sew up the lips of someone i wouldn't mention and turns out the ace of spades is in the guy's mouth how did he know the ace of spades was in the mouth? how? >> isn't there a great trick where he's doing a trick in ford's kitchen that ford said get out because he was so freaked out. we're going to keep our eye on

blue origin. how do you draw the line between something like this and investable opportunities in space? is it just vanity? >> it is but look, maybe it's the wright brothers and if we were doing a show back then, we would have said wait a second >> wright brothers had no money and no education couple of bicycle shop guys. >> true. >> although, getting to space is expensive. >> i'm just saying >> the wealthiest people in the world -- >> but they're not killing the poor people. >> huge opportunity here when it comes to coming to space >> it's very exciting but rich people pery. we used to go to art museums

now we go to space remember i used to watch john glen take off? >> no, i don't remember that that was 1963. >> astronaut, astronaut. replace firefighter. you all wanted to be astronauts. that lasted a while >> maybe the three of us >> the gulaugss. >> the first show from space how about that >> i can't even get a show done in san francisco i'm going to get one done in space? >> we'll see you tonight "mad money" 6:00 p.m when we come back.

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good wednesday morning welcome to another hour of "squawk on the street. busy morning but this morning, jeff bezos blue origin is set to launch the

blue shepherd rocket with william shatner on board morgan brennan is going to help us to launch in about 30 minutes we think >> 30 minutes and ten seconds. that's what they're targeting for lift off in the west texas desert and as you can see right there, you have those four all civilian crew members for this ns 18 new rocket and jeff bezos was on the first human flight that we saw for this new shepherd castle and booster in july. what was a historic flight this is going to be historic as well they're going to travel above the carmen line. so, more than 62 miles above earth. they'll experience several minutes of weightlessness. this will be a 11-minute trip that's autonomous.

but william shatner is the headliner of the crew. captain kirk will become the oldest person to have ever travelled to space and guys, very worth noting. two paying passengers on board this mission as well which speaks to the space tourism market that they're firmly in the lead on. which is why you should keep an eye on virgin galactic stocks. >> i've seen something amazing and historic a 90-year-old guy put his shoe on by putting his foot on his go to i can't even do that now >> and he's going to space it's amazing >> i mean, that was amazing. >> it's interesting to see jeff bezos. he's just climbed the watch tower with this crew he's suited up in his blue origin suit as well. just a reminder this is a

fre pressureized cabin this is suborbital not going all the way to orbit maximum speed they will travel to are about mach 3, about three gs prr it is interesting to see him up there as they're getting ready to climb aboard the capsple i know from speaking to him post flight just how much he loved it and was very much vocal in saying he can't wait to go back to space again >> can't he just get on with them >> there's six i've been inside the simulation capsule, which is at the astronaut village in the location in west texas they train for several days ahead of lift off. and i've been inside of that capsule. there are six seats inside of that capsule

four crew, six seats it does look like right now he is saying goodbye and probably wishing them god speed as well the well wishes are abundant on space twitter as well. but elon musk sending his wishes to the captain, william shatner, as well. if you're in the space industry, you're a "star trek" fan bezos is a life long you go to kent, washington and you will see star trek memorabilia. this is one the industry in particular, the world overall, is watching closely. of course, i'm watching it, from the cnbc standpoint, very quickly because this is the first of two flights that are expected just before this year is out so, we're seeing william shatner

get on board the capsule >> who's been hilarious on board. told anderson cooper i want to press my nose against the plastic window what i don't want to see is someone looking back at me ba -- bezos himself with a hard-hitting piece in "washington post" about culture at blue origin >> there has been a flurry of reports, and investigative pieces, "washington post" yesterday the most recent. our own michael sustr has done something on it as well. there was an essay by former blue origin employees and 20 other employees taking aim at the culture. saying there's been sexist issues and safety concerns

the faa is looking into this in the midst of the flight today. it's a very key time for the space company. >> we'll watch closely with lift off. bank earnings let off by j.p. earnings. >> yes, indeed so, j.p. morgan comfortably beat on earnings estimates. bottom line was flatted by $1.5 billion benefit but there were plenty of other attractive items through the rest of the relief as well capitol markets activity remains strauj strong. the gift that keeps on giving, if you will. and included a record all-time high in mna revenue. and fix undercome trading was in line but still strong at 3.7 million.

better than expected 17.1 compared to 17.5. and that was solid in line up 1 cent year over year and they've suggested we may now have bottoms going forward in terms of the macro outlook, diamond says under everything, we still see a strong consumer and strong businesses. he had a lot to say on particularly sulie chain he said within a year i doubt we'll be faking about it might keep seeing the 4% or so handled for quite a few quarters to come but didn't think it was a key, immediate risk the company would grow earnings in is that environment. let's get out of covid first if you look backwards, we'd be celebrating. he's not overly concerned but

definitely watching it >> stocks are trying to avoid their fourth day of losses aztec names continue to see a bit of selling. despite volatility, larry fink says he's still bullish in the long run >> i'm very bullish but could we see period of time, like in september and october, this rotation isthis consternation in the marketplace. i think that may be longer than people estimate. but in the back end, when we have more understanding of how this is going to play out, i truly believe we're going to see higher highs in the equity market >> here to the breaking thes down, bill good morning >> good morning. th thanks, carl >> historically, seasonality would argue things might get better but inflation is still a big risk

there's going to be a debt conversation the company has again in december. >> we're thinking much longer term than seizeinally. the s&p is trading 20 times next year's earnings. maybe you could adjust that down to efficiency and how it treats intangible investing you compare that to a bond market yielding less than 2% a negative real return i just don't think there's a strong argument against equity and within the equity market, we view it as two tiered, there are a bunch of stocks, especially financials and energy. and a bunch of stocks that are expensive. i think the cheap stocks are cheap enough that a value portfolio looks pretty valued.

we're we're excited about the returns we think we can get. >> tell me whether it makes it less cheap than they were six or seven months ago >> a large holding for us is allied financial it was a horrible stock but had a really strong rekovry and riit's rallied to the point it's eight times next year's earning. you look at a large holding like citi, where we think frazier is doing a great job of rebuilding the corp red light culture, focusing on the customer the stock sells below book value. yet she believes and we think this is likely, that over the next five years can almost double the return to equity. i think the banks are really

cheap, despite having big performers overthe last year >> looking a that performance in the oak mark fund and the oak mark select fund, you vastly over fund the broader market in terms of your selection verses what we would see in the broader market >> if you look back over four yearsduring the period where value is so horrible relative to growth, the big performance the past year has been a reversal of the names that hurt isin the prior three years. so, from 2016 to 2020, banks and energy were difficult holdings for us and those have been among the strongest performers in the past year. that's relative to other value and investors, we have a somewhat more inclusive definition of value. what i refer to as deficiencies and investing.

so, we own names like facebook, alphabet, netflix because we think they're cheap relative to value. that's been a large part in the strength in our portfolios >> speaking about the threat from bonds to equities, where is your overall thinking about the level at the tenure, let's say, that would imply serious risk to your equity portfolio? >> i think you have to think of two different stock market out there. the very high growth stocks that have benefitted from low interest rate said because in a discounted cash flow model, low rates makes the future, the distant future worth more than when the rates are at higher levels. i think those stocks are quite vulnerable i look at our portfolio. the bank holdings would benefit in general from slightly higher interest rates i think our oil stocks would

benefit because rates would go up due to inflation and that would be good for commodity prices it's more of a mixed bag with higher rates helping some names and hurting others and in the growth portfolio, it's negative. the real rate should be positive again, others with there's no reason to commit to long term. >> everything has been born out, at least, in the last couple quarters great to see you again >> thank you we continue to keep an eye on energy, which has performed quite well and in particular, natural gas down today and you can see the enormous move it's had in terms of price and those pressures, by the way, not just here. for more significant in europe and having an effect on the

overall global markets joining me is the founder, chairman and ceo of the stekd largest exporter of l & g in the u.s. and like me, is a long suffering fan of the new york mets we won't talk mets right now we'll talk your other area of expertise, which is natural gas and l & g. not just here but perhaps more importantly in europe, where there is a lot of pfear as they head to the winter >> europe has a difficult winter ahead of them. firm it were to be a cold winter, it could be devastating for them their inventories are 18% below normal for this time of year

it should be in the single dig lgts their inventory should be full but something we've never seen before in the past year. asia was -- took all of the cargos that were going to europe throughout the winter, through the summer and there was a cold winter last year in europe just never was able to rebuild their storage. there was hope that they could get cargo this summer and russia would increase the supply of natural gas. but russia has curtailed the gas going to europe. there's many thoughts of why one parent reason is they want approve as fast as possible and they're putting the pressure on them to get that done. >> putin saying somethings that are a built different, which

we'll get to in a moment china in particular, right, michael, has stepped up its purchases over a period of years here and just become a much more sn significant factor in the overall global market. is that right? >> you're spot on. we built our facilities starting in 2014, signed a contract in 2012 at that time china was fairly strong consumer of l and, g, probably around 18, 20 million tons today they are going over 80 million tons, which is almost 20 plus percent of the marketplace. they've had a compounded growth rate of 20% the last 25 years and sucked up all the perceived excess l and, g but we found out

after the pandemic and everyone needed to go full blast, that the market wasn't over supplied. it was very tight. and so when it got cold in asia first last winter, asia started taking as many cargos as they could and paid up more than what europe would pay for and it's been an unsagsable appetite for china and the rest of asia japan had been the largest buyer. there are customers where a lot of our lng goes. so, it's been a complete opposite of what the forecasters were predicting just a year ago and for the last five years, what they've been predicting >> just to finish the thoughts

here on europe in particular again, so you've laid it out for us, obviously, in terms of getting ahold lng. putin says i'm not slowing it but many disagree with that. the wind is not blowing in the north sea, apparently. and they don't have the investment in terms of actual development to stem some sort of shortage, should it come with colder temperatures. >> that's right. these investments take a long time to produce the oil and gas. and the esg movement has been very strong in europe. their governments are telling the major oil companies they can't even invest in any fossil fuels, including gas they're telling banks they shouldn't lend to oil and gas facilities and they've done a wonderful job

in job in europe with renewables but you can't do all the renewables at scale fast enough to meet energy demands and you don't have back up you could applaud the uk for having 24% of their electric driven by wind power texas, the largest state, is 23%. the wind, this year, is very light, and the u.k. was only getting 2% from wind and in texas they're only getting 3 to 5%. all of that had to be backed up by natural gas >> right right. well, all right. let's come back to texas, let's come back the united states then it's a very different market we're watching natural gas prices far higher than they were a year ago we can imagine it's going to cost us more to the heat our

homes this winter. i know you're -- it's not like you have any shortages coming into the terminal. >> the united states is the largest producer of natural gas in the world we have a very vast underground storage system every year during the off season, after the winter, we show up the storage to handle the worst winter imaginable. our inventories are 176 below the five-year average, which is only a 5% below the five-year average. the obviously, the price has gone up from 253 to 540 today. and we are at risk of it going up higher if we have a cold winter and if we have a warm winter, it will be right back to

three. even if we have a cold winter and it gets higher, we have so much gash to be drilled in the united states that hasn't been drilled because prices were so low. that if we had any sustained periods, they'll come out to work, drill enough wells and drive the price down to 253. europe doesn't have that asia doesn't have it we are unique. and that's why u.s. lng is so special. our customers have signed up for 20-year contracts. they buy u.s. gas right now at 550 and they pass a few dollars to make the product get to europe or a dollar for europe, a c couple for asia. and the spread is almost 15 to $20 higher it's a great model but we need more of it

we need more lng facilities to be built in the united states. the world needs more gas because gas is the number one cleanest burning bridge -- >> real quick, then, mike. we're one of the largest infrastructure projects in the world for a time, spending more than 13 billion to build those trains do you have enough to build a fourth >> we're approved by the government there's been -- the mark was very soft until recently and everyone was focussed on short term and they're focusing on tie up supplies. we're hopeful we can sign the contracts and start construction next year. we're the only facility in the united states and one of only two in the world that electric drive.

so, we have the cleanest -- we eliminate 90% of carbon emissions. so, we have the cleanest lng in the world to offer >> we got to leave it there. always appreciate your taking time with us thank you. >> and go mets wait until next year >> it's -- you just heard david talking about texas. we're going to stay with the state, west texas, blue origin launch site, wheres there is another hold the astronauts are on board as the technical checks continue. we're going to keep watching it and bring you their live once the lift off actually happens.

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he's poised to be the oldest person ever to fly to space, a blue origin executive, and two paying passengers. this is not only the second manned mission the first being with jeff bezos in july. but also its second market commercial service, as space tourism begins to ramp up. we will bring you back to west texas as that hold lifts and we get closer to the actual lift off. >> in the meantime, making a look at crypto and macro and he writes the crypto asset could reach 100k as early as 2023. and he joins us this morning fascinating note you make the point that this recent run hasn't been pinned on

the tweets on the likes of elon musk what's behind it, do you think >> good morning. it's been a very stealthy advance. what i would define as the tourists so, holders of bitcoin for less than three months. they're only 15% of all coins held and that's below where we see most bottoms happen. at the top it's 30/35% so, this has not been a momentum-fuelled run by speculators. that gives me conftdidence thiss a sustainable move and as you point out,100k and i know better than to make bold price predictions on the air and certainly tourism will do that for me anyway. but i have a supply model and a

demand model and the next and last time those two models intersect is at 100k in a couple of years my sense is the trajectory is up and so far there is really no evidence this is a bunch of momentum chasers bringing this up to the 67 and today more like 54 >> you even make the point that you know better than to make bold price projections you've also -- you take a look at bitcoin through the eyes of the multiple to goal what to you think is behind that where are we on that >> it's another way of looking at what the values of bitcoin. and i've done another study where i compare it to apple's networth and val using and size. this is about exponential. one way to look at it is if gold was a traditional value. i think bitcoin and gold are two

different players on the same team gold's -- bitcoin is trading 32 times gold and rirtit's not agan moving away from gold. not in the sense where i think it's unsustainable bitcoin is a more complex version of this. obviously has a scarcer supply and does not have a network dynamic that bitcoin does. it makes sense bitcoin would out perform. >> yeah. i mean, i definitely heard those comparisons to gold, also that they did digital real estate as you're seeing more countries find finding a way to use it. i'm thinking of elsavdore.

does that undermine the dollar >> i really don't think bitcoin's threatens the dollar but i know that's a common narrative among the hard-core bitcoiners and i don't subscribe to that lat. i think it further insures the dollar will maintain status because kucurrency will be among at farther reaches in the world and it's still connected to the dollar in some way i don't think the dollar is at risk at all. and i think bitcoin's value profit forces that ultimately it goes from just store value to a meeting with exchange and that depends on the second layer that are being created right now.

obviously bitcoin is funky, it's slow not very scaleable finally, they need to happen and they are happening >> we have a bit of a squeeze on the tenure but the composition was pretty firm in the eyes of some a lot of attention being paid to shelter this time. fed funds futures looking at a rate hike as early as september. i wonder whether that's weighing on equity today. >> i think the stock market is going through a wobble and it is the season to worry for a lot of people that september, october time frame but we're in that transition where the bull market goes from the v-shape valuation driven advance, where price is moving aup already. now earnings are catching up

but the rate of growth for earnings is in the process of teaching er for it's not a bad thing. earnings flow is peeking at plus 15%. we're entering midcycle or we're in midcycle. and the fed, of course, realizes correctly that 120 billion a month and 0% rates are no longer warranted and it obviously needs to start tapering if it's going to raise rates next year 15 billion a month is the current thinking then we're facing a treasury next year that will have to produce paper as they're not buying bonds and i think that does create a new paradigm for bond yields >> we've been talking about this

moment for so long it's weird we moigtd be here great stuff on crypto and the macro. let's get a news update. hi, rahel. >> hi. social security benefits will increase by 5.9% next year an extra $92 a month for the retired worker the biggest kaucost of living adjustment in more than five years. one example is container ships waiting to unload in southern california the white house says it's helped broker an agreement that will help the keep of los angeles operating 24 hours a day, 7 days a week last night a tornado hit kansas taking down power lines and damaging buildings in the northern plains, the

first storm of the winter season is bringing heavy no and hot winds to wyoming and south dakota and eve n a snow day in october. i guess that's more common in other parts of the country and to texas where the second hold was just lyfted. we're t-minute 13.5 minutes for the latest flight to the edge of space for jeff bezos' company. a flight that william shatner, vianaronoa fkirk, and four other cilis e brdor

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whadda you guys doing out here? there's a creepy man in a white mask. run, run! michael myers has haunted this town for forty years. if you track michael's victims, it's a straight line home. he's coming for me. we're coming for him. wemcome back we're just 11 minutes away now from blue origin's latest launch let's bring in will marshal, friend and former colleague of one of the passengers on this flight it's great to have you on and i think let's start there.

as we're counting down to lift off. a little about your cofounder and the fact he's on board this new shepherd capsing right now >> yeah, chris is a space enthusiast, through and through. slightly nerve racked for him and excited for his journey to space. it's a fascinating time in spags. there's a space renaissance going on new rockets, space tourism, helicopters on mars. hundreds of new satellites going to space it's like the birth of the internet going on for space. it's exciting time >> it's pretty amazing and wee spend a lot of time talking about the human space flight it's been such a big year in terms of ushering in this new era of space flight. case and point today but it's one piece of this growing space economy. in terms of the company you

created, let's talk about that since we talked about things like satellites and data as a service. that's where a lot of the near term opportunity seems to be >> you werejust talking on the program about the wicked trajectory of bitcoin and the like i think the trajectory in space is more exciting we say about 10 billion invested in spags last year up ten fold in the last few years. a huge new economy it's the whole earth every day and millions of farmers uses our data to improve their crops. nasa uses it to check variables around the planet and help us understand climate change. germany the floods it's basically to help us take

care of the planet but it's one example of a renaissance happening. this economic shift happening below the really exciting billionaires going to space and new rockets you see on the news. >> we're t minus eight minutes and change to lift off here. as it stands for this crude new shepherd flight that your friend and cofounder is on board. i guess in terms of planning itself in terms of this being a big year for space flight, it's been a big year for the companies going public they're merging right now. so, talk about growth and the growth trajectory. when we talk from an investor standpoint, how quickly are we greing >> exactly we're going to public right this second it's an exciting time.

hopefully we're on the new stock exchange the next few months before the end of the year our growth trajectory is solid we did just over 100 million in revenue last year. and we're expecting a growth rate like in agriculture, mapping, governments, the world is in need of new data sets. everyone is fakie talking about. and it's powered by the new data sets data sets from space help us measure capital. so, every company measuring esg needs this data. we need a satellite that's grering to measure emissions directly and the sustainability transformation is a big economic

opportunity. people don't often realize but space data is behind that. it's fascinating time. we're on a high growth trajectory based on those demands for data >> how large do you expect the market to be >> i would predict, within ten years, [ inaudible ]. >> the full economy or just space data and data as a service? >> i mean the whole space economy. >> that's quite a number so, given the fact that your former co workers on board the capsule that we're watching live images of, do you have plans to become a so-called space tourist. >> i go up thall the time in my dreams

i'm trying to save the planet and we're fairly busy going for that i would love to go to space. it's not a huge priority but i'm hugely excited for chris and nerve racked frr because it's a dangerous journey. but i wish him all the luck and going to be exciting to see that go up and down it was cofounded by chris, myself and my other cofounder robby. so, chris helped make some of the satellites that are going to take pictures of him riding to space. all these satellites looking down to take pictures and videos >> i love that that's so cool we look forward to seeing the images the so, we're now just five minutes from lift off for this blue origin suborbital flight to space with this all-civilian

crew, including two paying passengers and captain kirk, william shatner himself. with us is former astronaut and gentleman, great to have you both here joining us as we do countdown to the latest launch from blue origin colonel, as someone who travelled space, i believe three space shuttle missions -- i realize this is suborbital space, different than the space shuttle, which was orbital space trips. what the asctronauts would feel being able to stair back at the earth? >> i'm sure -- and good morning. thanks for having me i'm sure right now they're dominant emotions are same as mine were on top of the space shuttle. those being pure joy simultaneously it's scary to be on top of a rocket

it's a lifetime dream come true. they're going to be overwhelmed with true, even if there's fear. when the rocket gets started, i'm sure they'll get a heavy vibration. t-zero rocket's going to lift off. at that point they'll get pushed in their seats by the d-force as the rocket continues to accelerate higher and higher and at some point, i'm not sure what altitude but at that point, the engine will stop, the capsule will separate, have enough for trajectory. and at that point, they're going to see a three-minute weightless period before it falls back in the atmosphere and starts hitting resistance to the atmosphere, the d-force will start rising they'll unstrap for their seats, float around i'm sure they'll have video of

that once they're in weightlessness then parachutes open and they're back to earth. >> and we're going to keep track of all of it i want your thoughts on all of this as someone who has made trips to space with nasa and now, i believe, an advisor to spacex, a rival to blue origin this moment in time, this new era of commercial human space flight we've seen ushered in this year. how does that speak to the role the private sector is talking about that has been talked about for several decades now? >> this is super exciting. it's exactly what we hoped to see and it's all happening this year in 2021 with blue origin and virgin galactic and spacex launching private citizens to space. but today is all about captain kirk

as a big "star trek" fan it's been exciting to watch this and let us all go boldly go and make really lame jokes. >> beam me up. >> but he's approached this sense of humor and a great sense of joy and for that reason, it's been really fun to watch >> mike, i want your thoughts on that too this increasing role that the private sector is playing in space flight now such a difference from what we've seen in space travel in decades past 2367 >> i find it really exciting space is always in the news, the race against the russians to get to the moon. it inspired me to pursue a degree in engineering and become an astronaut

there are a lot of young people watching these launches and getting inspired to get involved in stem education, to become the next engineers or astronauts and they'll end up in other stem-related industries that will fuel the nation i think it's greater by the way, when they announced nasa was going to privatize the lower orbit, i thought it was crazy. we didn't think it would ever work that's the way we've always done >> yeah. we're going to listen in as we're 22 seconds from lift off >> t-minus 10, nine, eight, seven, six, five, four, three, two, one.

. >> you could follow along at the bottom of the screen as well as the speedometer. we have confirmed the

aerodynamic on the vehicle were at their maximum. thank you, again, everybody for joining us live for with william shatner and chris boshosen on their way to space so far a clean burn on our blue engine 3 new shepard giving them a beautiful flight to space this morning.

the rocket is climbing towards an altitude the line of space and a gorgeous view down the rocket the engine has shut off and in just a moment separate the capsule from the booster and at that point the astronauts will have the opportunity to get out of their harnesses and enjoy the beauty of zero g let's wait to listen. a clean separation between the capsule and the booster.

there you can see the capsule from the top of the booster. they are continuing their ascent over the line. >> as you can see right there, that is the new shepard capsule with its four crew members drifting out in space, suborbital space just past the edge of space. you can see the booster, the new shepard booster is now going to begin the process of relanding it's so key to this process to talk about reusability this is a technology and innovation that spacex, for example, has harnessed and pioneered in many ways but blue origin is the other company that has been working very aggressively, case in point

today, with new shepard and now orbital rocket that is under development, as well, of reusability and hardware brings the cost of launch down dramatically to be able to reuse these machines, essentially, that these companies are building and just in terms of you can see it right there, just in terms of the capsule itself, you have a crew that is now getting to presumably experience several minutes of weightlessness and be able to take in the curvature of the earth. this has been the year of space tourism. this era of space tourism really kind of taking off here. so, we want to bring in our astronauts who have been watching this alongside of us. colonel mike malane and, garrett, i'll go to you first. never gets old watching a launch

but to see four more civilians now get to experience and encounter the earth from space, really, how do you see it? >> it's fantastic. yeah, it never gets old, as you said and it's really exciting to watch. so far everything is going perfectly fine they've gotten through a bunch of the key events, the separation, any mechanical separation is always something we focus on keenly and really now just coasting and the next big moment will be coming back through the atmosphere and deploying the parachutes they are through about 50% of the danger of this mission, if you will but we have another 50% to go. going up is hard and coming down is just as hard. >> yeah, colonel, want to get your thoughts, as well, as we watch this second human flight from blue origin play out on our

screen >> you're right, never gets old watching these launches. my heart was in my throat watching that just as it was when i was riding the rocket i am envious seeing the views, the accurvature of the earth and the weightlessness that they will have and just an awesome, awesome view that you get from those types of atitudes. they are seeing things they may have seen in photos, but photos don't do it justice. but the human brain can comprehend it as you look out that window. i'm very envious of them >> looks like we have five minutes left for this flight right now. you can see the booster is making its descent and going to land in the west texas desert. garret, reusability. i was just talking about it, but

what it does in terms of driving down the cost of launch and moving us towards this process and touchdown. welcome back, new shepard. the fourth flight to space for that vehicle provided a beautiful flight to space for our second human crew. wow. that gets me every time we do this live down here in texas the sonic boom is so cool. the wedge fins just looks like you could fuel up and go again. >> just what you saw right there that booster relanding again after its fourth trip to the edge of space. and, garret, i was just mentioning it before, but the economics of being able to reuse hardware what that does to drive down

costs and to be able to offer commercial services like this to civilians. speaks to this opening up of a broader space economy. >> it sure does. reusability is a real game changer. you know, i work on the other team over at spacex, but i have to give some respect to blue origin because they did it first. they landed their booster and brought it back safely before we actually did it with the falcon 9 rocket although it's harder you can imagine how expensive it could be and as i'mtalking i'm noticing the parachutes coming out now. that's a really key moment that's a good piece of news. always a huge relief when you see the capsule coming back and lowers the blood pressure a lot. that's great but, yeah, you can just imagine how expensive it would be. if you flew a boeing 777 from l.a. to new york and then threw it away and had to build a whole

new one to fly back. traveling on airplanes would be really expensive that is what we have been doing mostly in space. space shuttle was reusable but very costly, not affordably reusable getting to the holy grail that blue origin and spacex has obtained and virgin galactic, as well, it's really enabling a lot more activity in space >> yeah. and as you just mentioned, we just did see that deploying of those three parachutes that slow the capsule down as it reentered earth's atmosphere as that capsule floats down, it's going to slow down to one mile per hour before it touches back down in the west texas desert mike, just in terms of i guess land landing and what that en entails. i mean, so many of these companies now that are offering these types of services, whether it's suborbital or orbital trips and everybody is going about it a little bit differently

speaks to the evolution of the technology and innovation. >> well, the virgin galactic is going to be coming back andened laing like the shuttle did and comes back to landing on the runway the other two players in the field, their capsules come back by parachute >> the capsule just landed >> awesome now, glad to see that. see the actual vehicle on the ground but, yeah, there's different ways of getting crews back and it's always a look at the cost and, obviously, parachuting these back with the most for spacex the dragon capsule coming back by parachute is, obviously, the most cost effective for them "blue origin" lands on the land and spacex lands in the ocean. again,