big banks are going to report, bank of america, citi group, morgan stanley, wells fargo, all before the opening bell. the biden administration meanwhile announcing ambitious plans for alternative energy with a big investment in offshore wind farms. details straight ahead plus, u.s. workers pushing employers for better pay and benefits employees at deere are striking this morning and hollywood crews could be halting work next week it's thursday, october 14th, 2021 and "squawk box" begins right now. good morning, welcome to "squawk box" here on cnbc. i'm becky quick. along with joe kernen and andrew ross sorkin. and things are looking up this day. at least if you are a bull check out the u.s. equity

futures at this hour you'll see right now there are significant moves, dow futures indicated up by about 220 points, the s&p futures indicated up by about 31, the nasdaq indicated up by 132 i'd tell you why but i'd be making it up look at treasury yields, the ten year yielding 1.535% so that hasn't budged a lot. 30 year up to 2.049% and a range of other issues, like energy, all of those things in the green this morning. wti is up another 1%, above $81 once again yesterday wti was up and -- or it was down yesterday but for the week it's up about 1.5%. natural gas was up yesterday, it's up for the week and right now it's on track for what would be the seventh out of eighth week in a row of higher prices the dollar is the one thing down it's down yesterday, lower

today, down for the week and on pace to break a five-week winning streak you have gold up 2%, the best performance since early march. and then you have bitcoin, i don't know if you saw fidelity saying that bitcoin could hit $100,000 over the next couple of years, indicated up this morning just over $57,000. >> we should say fidelity has been a proponent of crypto at least the company's ceo has been a crypto proponent. >> they already own some. >> they do just saying. >> maybe 200,000. >> let's talk vaccine news guys because a study from the national institute of health finding the j&j vaccine recipients are getting a better booster off of the pfizer or moderna booster shot so the study, which isa mixing and matching study includes more than 450 adults who received one of the three regiments they were

divided into groups and received either an extra shot of their original vaccine so the j&j vaccine or the moderna vaccine or the pfizer vaccine or a booster from one of the other companies. all the combinations boosted antibody levels although pfizer and moderna seem to work best. they say people could easily swap their third doses results were relatively similar. the study has not been peer reviewed but raises questions on the j&j front. obviously j&j is putting out a booster shot and it appears that you will do better taking the moderna or the pfizer. and so, in terms of -- to the extent that j&j has ambitions in this space and again they were doing this on a not for profit basis, maybe they don't, i think there's real questions as to what's going to happen. >> there were all the issues with the j&j shot, it's a one-shot, it's easier to store,

easier to get to places, rural areas maybe developing nations where they don't have the cold storage that you need for pfizer and moderna. remember it's a one shot deal. so maybe there is a place for it but you can bet that probably people here at least may look a little skance at it. >> a in the developed world and b what you're seeing now with pfizer and moderna is they have figure out a lot of the refrigeration issues doesn't have to be as freezing as it used to be, and also i think they figured out the transport and logistics pieces a year from now, two years from now, whether we'll talk about a j&j vaccine, on an ongoing basis i think is going to be -- >> it's one shot to begin with. >> we talk about with no knowledge of anything. for example, you don't know what the t cell looks like. i've had people tell me because

it's a full viral vector that gives a more lasting impression on t cells, which could also be involved in immunity so just measuring antibody levels you don't know if that correlates with immunity. >> the durability has been better with j&j. >> that's what i'm saying. >> that was only after one shot. if you had two shots you may have much longer durability. >> just talking about antibody levels you may not tell the whole story. sam waxle, that was his deal all along, i like the j&j. why? it's a full viral vector that may make a bigger impression on the overall immune system. so just measuring antibody levels, all this drivel we have no idea about a lot of this stuff. >> and that study, by the way -- >> give me one of those, i'll take one of those -- >> i'm pretty sure the study -- >> finally, give me the -- i'm going to the astrazeneca to top

it off. >> the study was based on fewer than 500 people. >> and not peer reviewed. >> yes we're making this up on the fly, i get it that's what happens in a pandemic. >> did they look at side effect profiles i would hate to mix and match and be so sick for 24 hours, too. we don't know anything about that either. >> i don't think we do know about that yet >> right >> and that's what i was saying the other day, i'm willing to do whatever is great for me, but if i'm okay as is, then i don't really feel like introducing more stuff in there and having a crappy 24 hours or something if i already have what would be -- if we were exposed to it, is it around everywhere here still a lot? >> maybe today >> yeah. i don't know i haven't been masking up. you have i haven't been -- i do want to go into the supermarket. >> i still have unvaccinated kids so i'm in a different scenario

>> right a lot of times -- outside -- >> i think the science suggests that boosters -- >> you're talking about science again. >> yes >> i'll come to you for my science, andrew. i always have. >> i think trying to discourage the viewers from taking a booster -- >> i'm not trying to discourage the viewers from taking a booster. >> there's a continual effort to raise more and morequestions - some are fair questions -- >> there isn't a continuing effort i got it waybefore you did, th first vaccine. >> god bless you're older. >> and wiser, especially about science. >> the fda staff struck a more favorable tone of giving the j&j booster shot saying there may be abenefit to administering the second dose two months after the initial shots. j&j still affords protection against covid and death but suggesting the second shot would bring protection from symptomatic infection.

the fda ang kncknowledging that data was limited, hasn't been verified, all that information yet. a group is scheduled to discuss the moderna booster shots today and then the j&j booster shots tomorrow >> at risk of jumping into this again. if you are in a particular position where you have vulnerable people around you, unvaccinated people around you, you might want to take a third booster shot, in order to make sure that you are protecting them i mean, if you're not worried about getting it, i understand that i'm not worried at this point about having to go to the hospital but i am worried about people around me, and not just my unvaccinated kids. >> if you're double vaxxed and you're still able to carry it -- that was the most surprising thing when we used to talk to dr. scott gottlieb, i assumed you get double vaxxed not only are you not protected but you're not shedding virus. >> that's not the case i have people in my family double vaxxed and have gotten

it. >> there are no studies that have said one more gets you to the point you're not shedding virus anymore. >> but it gets your antibody levels back to where they were six months ago. >> the chances you get it become smaller -- look at the data in israel. >> if i looked at the data in israel it would scare the hell out of me. >> it shouldn't. >> i've seen it bantied about by the anti-vaxxers. >> if you look at what happened to the number of -- there are still going to be breakthrough cases. >> that's the immune system not the vaccine. it's your immune system doesn't react to the vaccine. >> the number of breakthrough cases increase dramatically when you have the entire population vaccinated because the only play you see it is the breakthrough cases. >> scary data that says you're more susceptible to the delta because of the vaccine did you see that horrible info >> no, that i didn't see >> i saw it from my brother, who is a doctor.

>> people around you if they are immunoco immunocompromised, cancer patients, other people around you, it might be a good idea to get the third booster shot i'm not worried about myself getting really sick at this point, it's just other people around me. >> the fda has even said we're not sure at this point, or cdc member biden, everybody was going to get the booster, then they said hold off do 65 and above and it was like 14-2 >> there are some weird situations taking place with the fda, too. >> there are reasons why the cdc was doing that. >> last week moderna, too, they said we don't have the evidence right now to make sure you do it. >> we'll have an opportunity to talk to dr. scott gottlieb hopefully. >> we don't need him we have you. coming up, it's a busy morning for earnings going to hear from bank of america, wells fargo, morgan stanley and citi group wall greens also all before the opening bell. one of the reasons the dow is up, united health care we'll

bring you those numbers. that stock is up quite a bit this morning up next, the lost workers. we'll look at why millions of women left the workforce during the pandemic "squawk box" coming right back

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united health just reporting adjusted earnings came in at $4.52 a share beating estimates. the company raised its full year forecast the projected unfavorable impact of covid-19 on the bottom line has not changed from the prior outlook. the cnbc series on the lost workers continues now with a closer look at the mass exit of women from the workforce during the pandemic ylan mui joins us with more. good morning. >> reporter: good morning, joe millions of women are still missing from the work place and the situation actually got worse when schools reopened in september. the number of women with jobs dropped last month by 26,000 compare that to men who gained 220,000 jobs the same dynamic played out in overall labor participation, more than 300,000 women left the

workforce while over 280,000 men came back. kelly is a mom with two kids, ages 3 and 6, she thought she'd be back in the job market now once her youngest was old enough for preschool but that was before covid and now her plans are delayed indefinitely. >> i think it takes a lot of patience you have to be forgiving of yourself as well it really is kind of a unique time you just kind of have to say, okay hopefully we won't be going through this again let's make the most of it for now. >> reporter: now, what would it take to get kelly back into the workforce? a vaccine for her kids, getting off the wait list for preschool, confident she could make enough to pay for child care. her story illustrates the long-standing problems that have been exacerbated by the pandemic and how to fix it all is what the debate in washington over the democrat's social spending package is all about

guys >> sounds like schools obviously aren't the only issues here, what other factors are in play >> reporter: it's important to point out that many women went back to the workforce or stayed in the workforce because they had no choice. they needed that money in order to support their families. but it's also important to realize that many of the sectors that were hardest hit were sectors where women were disproportionately represented in september you saw the government sector, women losing jobs there education, health services also saw thousands of women leaving that sector. another place where women dramatically overrepresented so part of this is the social services, that face-to-face interaction, women tend to be employed in many those industries and those industries have been harder hit because people want to stay home during covid. >> let's talk more about the pandemic's impact on labor here's black rock ceo larry fink

yesterday. >> we under estimate the power of gig economy i think we under estimate what covid has done to so many people around the world in terms of trying to navigate the work/family balance and the gig economy in many cases a lot more accommodating. >> and joining us now shelly shambeau, former metric stream ceo and former member of ve verizon. good to see you again, shelly. the numbers we saw on friday, and the report we just had from elon, what do you think is happening in the labor force we have supply chain issues, so many different, i don't know, headwinds, tailwinds all kinds of things. how would you sum it up? >> i think the way i would sum

up what's going on is just disruption everything is being disrupted. from how companies have to operate and execute and the supply chain things you talked about, when you hire people, our ability to hire as well as how people work and where they work. and how work actually gets done. we're seeing more transformation from a technology standpoint than ever as companies move to the cloud, try to figure out how to get digital faster, how to provide more services in a safe way. everything is being disrupted right now. >> and things that we learned in the pandemic, some of it is useful for just recently i was asked -- we were -- should we do this from zoom call or go on person all of us said let's do zoom that's not going to go back to normal, i don't think. i think a lot of people are going to come back to offices that haven't yet there's still quite a few of that that it's going to happen it's not going to stay permanently zoom forever. >> i agree, joe. i think what we're facing here,

seeing, is not so much a back to normal i don't think we're ever going back to, quote, normal but we are going to go to a new normal and that new moormal is g to institute a number of different policies and practices that we can live with, and in many respects improve productivity for employees as well as employers. >> do you think that a merck pill that takes the worst case scenario off the table for contracting the disease, do you think that that will be a game changer? would we see a qualitative difference in how many people are ready tocome back? >> i think that as the merck pill rolls out and is proved effective, which it is showing, that yes, it will be a game changer because it now gives another option in which people can be safe. and can feel comfort that if

they are exposed, they can take a pill, which will then reduce their ability to -- or problem i should say that might reduce them getting hospitalized from covid et cetera. so i think everything, vaccines, merck pills, policies and practices all will help to create an environment in which all of us feel safer. >> i think a reason that a lot of moms haven't gone back, their kids haven't been vaccinated but they don't have a place to put their kids, day care centers aren't home and it's expensive i know they're working on a plan to make sure more money goes to child care, but i've heard concerns about the unintended consequences of that not they don't want money going to that but the way it's set up in order to get the funds you have to go through a lot of hoops and hurdles, there's a lot of paperwork you have to qualify as a day care institution for doing that i don't know if an unintended

consequence of that would be to put the smaller day care centers out of business. >> i can't talk to all the specifics around what the rules and regulations will be. but what i can tell you is as a country we are woefully behind other countries that are in similar, you know, economic situations as we are in terms of child care and providing access to affordable and safe and effective child care so we have to figure this out. and what the pandemic has done, which many times whenever you're in a situation where you are facing something that is as impactful as a pandemic, what it does is it exposes other weaknesses and what we're seeing is, you know, what, our society and that structure is not the greatest supportive helpful environment with regards to child care and that's everybody's problem, but it's really affecting women we're seeing it in the pandemic with the number of women that have had to drop out of the

workforce. >> shellye, thank you. i'm surprised you have time to talk to us you're on all these different boards all the time. i wanted to -- you have such a nice painting behind you, i couldn't help thinking i'd like to see that. maybe next time i don't know go like this or something there you go thank you. i'm a real art officanato now. i don't know if you knew >> thanks, joe >> thanks, shellye. >> coming up when we return, the pepsi halftime show may soon be a thing of the past. the shakeup of an iconic sponsorship deal we'll talk about it next. plus walgreens set to report an exclusive interview with the company's new ceo, roz brewer. that's at 7:00 a.m. eastern time back after this. (vo) while you may not be running an architectural firm,

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new this morning about 10,000 members of the united auto workers are striking against farm and construction equipment maker deere. the uaw reached a tentative deal on a six year contract two weeks ago but 90% of the rank and file members rejeked it it would have raised the salary from about $60,000 to $72,000 over six years it also included a cost of living adjust m. living adjustment, that might be pretty substantial, which could have helped ease the sting of rising prices but they say the increases are not enough and

are pushing for better pension benefits. >> it's a workers work place right now. we're seeing it play out in other places the union representing hollywood crews is planning to go on strike on monday if a new agreement isn't reached. they're working for better work hours, including a 10 hour turn around between shifts a 52 hour turn around on weekends and lunch breaks if the strike does happen most hollywood productions would be forced to shutdown. if you're in the market for a sponsorship deal, the nfl will soon have an opportunity the super bowl is taking the rights to the super bowl show to market pepsi obtained the rights in 2012 for $2 billion. who wants to take bets on who is going to bid for these rights? and whether you think pepsi tries to stay in it or are they out and done do we find -- i have a funny

feeling maybe like a coin base or cryptocurrency company might want to take the rights. >> like the dot com era. >> or maybe an amazon. >> that would be interesting. >> or a tech company right, a little bit different. >> values going up you see ratings this year, the people being back has ratings at home going up. i don't understand how that works. but i guess it is more exciting if you hear someone cheering at least. but those empty stadiums, trying to watch tennis, remember when there was no one in the stands. >> weird a little unsettling. when we come back, a busy morning for earnings we'll hear from bank of america, wells fargo, morgan stanley, citi group and walgreens. all five coming in the next hour or so. first we'll dig into the biden administration's plan to build wind farms along much of the u.s. coastline the impact on energy prices and

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good morning, welcome back to "squawk box." we are live from the nasdaq market site in times square, checking futures right now the dow up about 2:18 points nasdaq looking to open 118 points higher as well. the s&p 500 up about 30 points >> the biden administration announcing a plan to develop large scale wind farms along the country's coastlines this comes as energy prices remain elevated around the globe the next guest said the hurried transition to green energies will go down as one of the most costly in the history of modern finance. joining us is larry mcdonald, the editor of the bear traps

report you caught my attention with things you were talk about yesterday all based on the news that came out from the iea saying we are not spending enough money right now, investing enough to make sure we have enough energy to take care of our needs in the future lay out the energy crisis we're facing right now as you see it >> well, it's really something, because it -- i think it's going to create a financial shock where, you know, over the last 20 years we've taken 7 million jobs out of the united states, we've shotgunned them around the world. so we've decimated parts of the u.s., ghost towns here and there. the good news is we've taken 400 million people out of severe poverty globally that's a good thing. but the middle class energy consumption component inside the iea, carbon neutral, all those assumptions we hear about over and over again the last 24 months, those have a dirty

secret in the sense they're assuming globally energy consumption per capita goes down 15, 20% in the next few years. everything we're seeing we run a live bloomberg chat with about 600 investors globally, but in that chat over the last eight, ten weeks or so, there are more and more institutional investors focused on this miscalculation and i think it has really colossal consequences looking forward. >> some of the things you laid out yesterday is there are a billion people in china that aren't driving cars yet. there are a billion people in india that don't have access to air conditioning and they are going to want that as their economies develop, as they have more money >> that's right. you guys are doing a great job because you have the echo chamber in the u.s. and you guys are doing a great job at offsetting some of the messaging but the messagining was

globalization is a good thing but there are unintended consequences, and the fed is going to have to deal with for the first time over the last 20 years the fed has been able to hike rates and really slow things down, slow back growth economy. but if you have a growth economy hit with an energy shock with a supply chain shock, labor shock, those three shocks together, raising rates doesn't do much against that that's what asset price is starting to tell us. the bottom line is your viewers globally there's $100 trillion in financial assets, paper assets i think the biggest call over the next ten years we'll see about 10 to $15 trillion move from financial assets to hard assets, the type of assets that will do well in that type of environment. >> hard assets because they lost faith in the markets or prices

have run up too high what are you talking about >> you have inflation, right, and that inflation is causing demand obstruction look at the two sturdiest curves, yesterday starting to flatten avefter the -- >> this is a demand driven problem at this point. we have a lot of people who want a lot of things and we can't get it quickly enough because there's too much demand. >> yes yeah, exactly. that's the early part of the cycle. what happens is, when you have this incredible explosion in natural gas, oil, labor costs, that right now, if you look at the yield curve is telling you this, demand destruction that is going to basically cause a slow down and the fed can't hike rates against that the last 20 years they could hike that's what we're up against you're talking about not a leeman event but your tech stocks could drop 20 to 30%.

but your value stocks, the warren buffett team, they're going to dramatically out perform the s&p the next five years in my mind. >> going back to the energy problems we face, a lot is because there's this move in places like europe to very quickly get away from fossil fuels, try to rely on renewable energy and that doesn't work when the wind doesn't blow and you don't have battery storage to store the stuff that you've been getting from the sun or the wind up to that point. what's to say we can't take care of all of these problems and the ever increasing need and demand for energy by improving technology is there a case for that >> absolutely. so we will get to the -- the 2040 to 2050 dynamic is gonna happen it's just going to be more like 2070, 2080 it'll get there. the problem is, you have millions of -- only 22 million families in india. remember, india has 1.4 billion people it's like you said, there's only

22 million families that have air conditioning as the global economy grows, that demand is over powering technology dramatically. it's like, it's not a fair fight. so the technology will catch up. but it's about 20 years behind so that means that nuclear power has to -- that's why uranium stocks are up in the last six months so if nuclear power has to fill that void. technology we're pounding the table, nuclear power bulls, urnm those stocks are going to dramatically outperform over the next 18 months. >> larry, thanks for your time today. good talking to you. >> thanks. thanks, becky. appreciate it. >> take care. when we come back, bank of america is set to report in just a couple of minutes. we'll bring you the numbers and instant reaction plus wellness platform mind body acquiring fast pass. we'll talk to the ceo in the next hour. back after this.

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welcome back to squawk bank of america just reporting and wilfred frost joins us with the numbers. >> nice numbers, nice beat here for bank of america. revenue 22.9 billion, the forecast was just under 22 billion. and eps 85 cents the forecast was for 71 cents. and there is a benefit on the provisions for bad loans line but it's smaller than j.p. mo morgan's at 624 million so less flattering of the bottom line beat than perhaps yesterday for j.p. morgan. the beats on fee income and net income net interest line came in at 11.2 billion, forecast was 7.6 j.p. morgan on that line was up about a percent year over year and they are seeing loan growth in a way that j.p. morgan was more guiding to seeing loan

growth in the years ahead. strip out their ppp loans drawing down at this stage they saw 2.3% growth quarter over quarter. definitely focus on that the fee income side, also strong 11.7 billion the forecast was 11.11 and like j.p. morgan good on asset management investment banking 2.2 billion, ahead of forecast and includes a record all-time high for advisory m&a is huge. and similar to skbrrks morgan on the trading, good in equities, that's a beat. a bit of a decline year over year in fixed income trading still 2 billion, nothing to turn your nose down down quarter over quarter for expenses, it was high last quarter, flat year over year, nothing fantastic but not bad like it was last quarter and the stock, unsurprisingly

jumping 2% it was down 1% yesterday in sympathy with j.p. morgan now jumping today. just summing it up, ignoring the individual lines yesterday we saw j.p. morgan's revenue up 2.2% year over year, bank of america's is up 12% year over year. >> the big takeaway as we see more earnings reports from other banks and also just corporate america across the board, the big takeaway, do you expect we're going to see great numbers from everybody do you think when we hit citi, for example, we'll be surprised to the upside as well? >> the big takeaway is this is the most interest rate sensitive name and that from yesterday from j.p. morgan we were thinking there's an era to come for the banks but it perhaps hasn't arrived yet bank of america is correcting that saying it has started to improve for us this quarter.

the question is whether they pull forward from future quarters or guide like jp morga did. also for bank of america very important to watch what they guide on the cost side this quarter looked decent, the guidance will be important the capital market side, it's the gift that keeps on giving. it's less important to bank of america than it will be to morgan stanley but record m&a for bank of america today and j.p. morgan yesterday. >> what would roy logan say about these earnings, more importantly? i was watching closing bell yesterday afternoon with a little bit of explicit language. joe, were you watching >> when the first question came to him about any level of disappointment he would probably say, like he said to softarah ad at one point f off these are good numbers can you imagine if we had logan

roy for earnings calls what a joy that would be. >> what a joy. what did you think of what he said about rupert? >> it was -- it was -- i really enjoyed that interview you have to be a fan of succession to do so. he's also an epic actor, great to seesuccession he's a better actor. maybe slightly in the uk before he was here. it's great to see his glory come with this show >> did you know him before this? >> no. >> anyway, we talk about bank of america and. >> hot culture. >> wilbur ross bringing all of it thank you, good to see you. joining me right now with reaction is the cofounder of itf. you don't want to say what lloyd logan said but maybe brian moynihan is telling everybody that given these earnings

report certainly possible i think this is a great number i think this is a really positive -- it's going to be a really positive reaction from the street on this i think the net interest incool number was better. 2004 thinking, higher, long-term yields rising. it should be better for bank of america going forward. they're really the topper. second loan mortgage bank providers. that's huge. they were western hit, issues aren't affecting them. the credit losses that they suffered last time around look a little bit better this time around with that $600 million increase there beat on equity beat on fixed income i think this is a great number for the industry. >> now the big question is, if you could own one of the banks if i only allow you to own one, which bank do you ant? >> yes great question i think i will go for citi, since they're so cheap thereis a 7.2 pe less than the

12 number, which is average for industry i think that's a recovery story there. i think i'd go for citigroup because it's a deep value play on the buy >> in terms of what we will hear from the other banks, is there something you can design from these numbers for bank of america? >> yeah. i this i that the bank earnings are going to be super strong i think banks are benefiting from two factors number one is the rotation people diversified portfolios than have gone to these cyclical trades banks do well, which we are seeing here. mna activity, whether facts or ipos has sustain e tan off there has been crypto trading and custody of bitcoin and things like that which i think is bringing new accounts to banks. i think loan growth is going to pop. now that stimulus is going to simmer down. the consumers that amassed all

these savings, they will put it back into businesses and perhaps get it back to the banks on consume ter goods and commercial loans. so i do think the banks are poised well to grow. >> what do you think about consumer credit right now? >> so consumer credit i think again has been a number that's hurt the banks because consumers have amassed so much savings on the side i think once that dwindles >> does it how much people, i think this is a very big question. it has to do with -- >> a trillion. >> right now. >> yeah. so i think that number actually picks up for the banks, because there is 2.35 trillion is sitting in money markets and savings on the side so consumers have amassed money there is an unemployment incident a lot of people have received stimulus checks. i think that's going to pick up and come in quarters for sure. >> you mentioned crypto. of the big banks, who is the beneficiary? who has leaned into crypto the

most at this point is there a bank that has >> you have financial institution leaning into it. you mentioned fidelity earlier i know that j.p. morgan jamie dimon isn't a big fan, but he does allow for crypto trading an crypto custody i think they are benefiting. perhaps they don't talk about it as much as they should be. going forward, the banks have to catch up with the big them platforms, which will probably allow for trading of sfps. the whole gambit of crypto asset. these will be the assets of the future the banks will have to catch up or be left in the dust for now, they're going to benefit from long growth, from extending the economy. but there has to be the rotation into crypto. >> hey, sylvia, let me tell you what we know at this point the company is coming in with revenue that's better than anticipated $18.7 versus the 18.3 billion the street had been

anticipating it looks like the numbers per share of the 1.17 is well above the nain cents the street has been anticipating. but they did talk about the credit reserve releases of $1.4 billion. that helps things out as well. what do you think of that headline number? >> yeah, again, i think that's a consensus feed there that is a positive number for wells far go, it's the restructuring story. they have sort of that they are trying to get out of of the profit and long growth goes again, wells fargo will be one of the top pampgs to invest n. they were hit heard than the banks. after citi, it could be the number two or number 3 value pl

play >> sylvia, i want to thank you for your time today. good to see you. thanks for the quick analysis when it comes to these numbers. >> thank you when we come back, carlos gutierrez and former best buy ceu hubert joly will join us on vaccine politics. a bit later the head of the port of long beach on the state of the supply chance the chances things will be fixed in time for christmas. you are watching "squawk box" and this is cnbc its low cash mode feature gives you at least 24 hours of extra time to help you avoid an overdraft fee. okay, he's gotta be close. he's six blocks in the other direction. make a left, make a left, make a left! he made a right again. virtual wallet® with low cash mode from pnc bank. one way we're making a difference.

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good morning, financials center stage today bank of america,wells fargo, morgan stanley and citi led all of today's parade. you got wal grens ready to roll out its results. we will hear the number and hear from the company's ceo breaking economic nassau we are waiting on jobs and inflation data the second hour of "squawk box" begins right now good morning

welcome back to "squawk box" right here on cnbc i'm andrew ross sorkin along with becky quebec and joe concerning two-and-a-half hours before the market is set to open. we heard from bank of america, wells fargo as well, the dow jones opening higher nasdaq up 111 points higher. the s&p opening 30 points higher the bank of america earnings coming out, earning 85 percent per shares bank of america benefits a 10% increase in net interest income, united health is beating estimates by 11 cents per share. they raised the full year outlook by the impact of covid-19 remain consistent with its prior projection and earnings just out from wells fargo, becky was talking about those a moment ago earnings per share coming in at 1.17 per share

it's not immediately clear if that's comparable to analysts, factors out some items, we'll bet the consensus by 99 cents. the revenue looks to be beating the forecast as well, natural gas will be hitting your winter heating bill the average house heated by natural gas siege bills jump by 30% this winter. home heating bills expected to soar soy by some 54. >> other big movers, dom chu is joining us now with those. hey, dom >> so let's start with at&t, they were higher a percent or so roughly 45,000 shares of trading volume so far. so the medium telecom company is getting help who upgraded it to a more neutral weighting they like the efforts at at&t to simplify their business and devaluation to a deep discount

it's been a lager over the last 12 months or so. they're trending that way down 11% year-to-date so watch at&t shares up three-quarters of 1% you have shares getting a bid up about 2.5% just about 7,000 shares of pre-trading volume, the transportation giant and steeple who upgrade that spot to a buy rating they long the stronger free cash flow focus among other things and the recent pullback to that stock. you see from the highs still up 11% year-to-date ups up 2%. we will end on another industrial maybe bellwhether this is caterpillar up a percent. 25% of pre-market volume analysts initiateing an outperform rating. it's 191 right now theically the there is an under appreciated value for caterpillar in its autonomous

systems and if you power technologies as well so caterpillar, ups, at&t august on the move, becky, in the pre-market trade right now i'm send things over to you. >> meantime, walgreens out with its quarterly numbers. bertha coombs has comments from the new ceo. >> a big profit,ed a judd earnings of 1.17 per share, 15 cents above expectation. revenues 1 billion above consensus, pharmacy driven by higher vaccinations, while at-home covid tests drove retail comeps one year ahead of schedule i asked the ceo roz brewer about implementing those cuts amid rising costs all around. >> it's been an interesting quarter. i will say the trusts in our

cost transformation, it's been a year in progress and it just really has been very consistent focus on how we take costs out of the system and this team has really focused on how we operate. we looked at how do we consolidate the work that we do. we also looked at that day-to-day operations in our stores so we have been able to keep costs down as we have seen some things happening in the supply chain. >> last quarter, you didn't think you were going to see that big a boost from covid vaccine during this quarter. what was the role of the delta variant surge? do you think that pushed most people into your stores to get jobs and are mandates playing a role there as well >> there are many companies, organizations, cities, municipalities that are mandating. i think it's forcing people to say i need to go to work, so i a have to get this vaccine, so it is creating an increase and we're seeing that in our stores. >> what has been your stance with your own company in terms

of vaccine mandates? >> yes, so it's twofold. first of all, we have mandated vaccines for our corporate offices and our regional headquarters they have been mandated. but in our stores, we are giving our team members to be vaccinated and help them understand how important it is, sharing plans and data with them so they come along in this process. >> is it harder for retailers right now because of the labor shortage to enforce a vaccine mandate? >> it is, i will be honest at some point you having conversations with your teams, they want to decide if this is something personally important with them. >> obviously, you are dealing with labor costs and shortages how are you handling that? and are you finding it hard to stack your store. >> we introduced the $15 minimum wage i think that's helped. i think this is a time we need to make sure people understand that the companies are here for

you and we understand the rising costs that i are incurring in their life styles right now. so we were able to also look at our pharmacists and pharmacist tech, technicians, and applaud them for some of the work they've done so we've passed on bonuses to those individuals in our stores and so it's helping and we're keeping our stores running pretty nicely right now. >> you didn't really talk about in your release about the supply chain issues that every single retailer is talking about. >> yes, we have had the same supply issues as everyone else you can possibly see that in some areas in our store. i will tell you, we had great relationships with our consumer products companies we arm together on these issues. >> it has been a very busy first six months for her, becky. they will be holding their analysts conference starting at 8:30 that when they will be offering their outlook for the year ahead. >> hey, bertha, i saw a story yesterday that said that walgreens was closing five

stores in the bay area because of the problems they've had with people stealing things off the shelves, not being able to keep things there that was a part of the change in the law in that area we seen similar changes in the law here in new york city. can you talk about that and the unintended consequences that come with that because these are stores that were pretty important for the communities they were serving? >> it is it's one of the things they are looking at the company said they have looj looked at it strategically one of the issues is the law, people feel less than $1,000 really doesn't have that much of an impact. >> they don't have that ability. but when you gate lot of people feeling about $1,000 i only notice when you go into any of these pharmacies now to get a number of items, you have to ask someone to unlock the cage for you it didn't used to be when you were getting, you know, so board getting your shampoo that you have to do that. but those are some of the items that are going fast.

so, they need the people on the floor to help you free them up from some of the mundane things in order to be able to help you get at these items. >> i think losing stores in those communities will be a real big deal, too. thank you. really interesting stuff we will watch later today to hear more about what they have to say thank you. when we come back, a fitness deal in the headlines this morning. mind/body. we will talk to the ceo of both companies next. the futures this morning are stronger it has been all through the session, or this pre-market session i should say, the dow is up 207 point s&p up by 30, the nasdaq up by 115. you are watching "squawk box" and this is cnbc

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. welcome back to "squawk box" this morning a greg ga deal in the fitness space. mindbody is raising $500 million in funding join us in an exclusive

interview, mindbody ceo, chris, it's great to see you. we had you on the program a bunch. this is a nice deal, nice to see you as well. for those that don't know, mindbody is like i'll do the work for you here. it's i call it the equivalent of open table for gyms, gym classes. at least pre-pandemic and, of course, you created the subscription service that's allowed people to bop between different games. josh, in terms of why you decided to try to -- to try to buy the business what was the rational? >> well, we have been partners for almost a decade. we seen classpass turn into the largest fit nness and we offer tens of thousands

of b2b aspect. we can empower the health and wellness get back on its feet after months of closures the timing was perfect to make this deal happen. >> before you hit the fridge, explain this a lot of people say a b2b business should stay in the b2b space. b2c is a different business. >> you use the example of open table. that's at b2b and b2c. so one of the partnerships over the years is that if we help get the inventory from the businesses into the classpass app, so it was searchable and bookable, we have tens of thousands of businesses not participat participating. so that's where we saw the opportunities to get more-of-our businesses participating and then expose classpass to millions of consumers booking through the mindbody

marketplace. >> how did it change the business to be hooked up with classpass, with mindbody rather directly >> it dramatically accelerates our progress towards the mission to send lots of consumers and businesses back through as josh said who are hurting coming out of the pandemic. consumers need to get back to in person 92% of consumers are hoping to get back to studios and gyms after one usage, we see people going back once, to 110% pre covid use only ary so there is this coming stampede of consumers to experiences and to put the best forward. mindbody has a ton of things that aren't aware, it has lots of partners who don't have any products so we think that we can up sale each other to different audiences and make them dramatically better. >> long term, how big a business

do you think the virtual business will be and speak to that also in combination with what we're seeing so many others come out with either virtual products, a number of gyms created their own products you have apple with its product. how does that impact things? >> yeah. i think you know the future is hybrid right? there are some people that want digital, some want in-person only some who want both. the emgans is classpass has a digital product solution for those that want that, as does mindbody i am most bullish on mindbody which is giving tools to business owners, fitness entrepreneurs to provide a digital experience so they can have that hybrid both in person. >> josh, what is that product? >> we sold our virtual wellness platform, this is something to be pivoted early in 2020 when we sue that most of the fitness studios were

using instagram live or facebook live and didn't have these custom products that tied in with the business management with billing so that's what we've built we've seen a tremendous option of that both on the business and the consumer side. >> josh, you know, you are really following a bit of the playbook, the company that bought into your business in 2019 by continuing to bolt on other businesses as you look to the business, look to the future of what this business looks like what other kind of things would you want to add on >> well, as we look broadly across the market place, there is a lot of areas that we can expand into. consumers obviously is a big one. next, we're looking at international. we think corporate is compelling, netbook devices is compelling verticals, that share similar attributes to the wellness and fitness industry

frankly with the $500 million in financing, they can do son sol days ago as well as invest in our own product development. >> josh, chris, congratulations, looking forward to seeing your progress >> all right thanks for your time. >> thank you coming up, when we return, will supply chain woes spoil the holidays we get the answer in this week's on the other hand. stay tuned we're coming right back. ...aflac policyholders have been paid $37 billion directly... [aflac!] that's a lotta money. ♪ did somebody say money? he said aflac. well if they're paying out billions of dollars to help cover unexpected medical expenses, what's the difference? coach prime. what... no smoke machine? [aflac!] looks like aflac is ready for prime time. [eh eh eh! eh eh eh!] hey, coach to coach... what do i need to do to get one of those jackets? ♪ get help with expenses health insurance doesn't cover at aflac.com

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welcome back to "squawk box," everybody. analysts continue to worry the holiday season is part shortages and shipping delays. so should investors expect mayhem in the fourth quarter or are things let kay ought ig than they seem? what do you think, jon >> jane wells reported last night that president biden's move to keep ports opened 24/7 won't force personal terminals to stay opened, container ships have no place to park and get unloaded you have to worry investor beware on tuesday they lowered margins on amazon and there is always an apple rumor, tuesday reports claimed they are cutting iphone production because of component shortages. that stock dropped i have been hearing concerns about this ramping up from ceos. it's a multi-level problem, parts challenges make it hard to build stuff. logistics makes it hard to

deliver the stuff and labor charges make it hard to sell the stuff that's delivered today it's six weeks until thanksgiving when the craziness starts it is chaotic. >> why are companies launching new products at all? have you amazon with if you televisions, apple is expected to roll out new laptops on monday >> on the other hand, things aren't quite as bad as they sound. things at the ports are bad. thanks goodness not everything comes in by boat the stuff that will be hardest to get will be heavy, cheap and new, it's too expensive to fly, cheap stuff, companies can't justify air freight and new stuff you have to ship it and build it during a traffic jam. it's show time good companies have been finding ways around this amazon device said they're intentionally announcing the lower-cost devices earlier in the year they did that to build

inventory. microsoft said their stuff is more premium price they can afford to build in shipping costs within it comes to apple new aphones and watches, it's tiny, light weight and expensive, so air 48 makes sense, suppliers said that production cut rumor is false so we're going to have this holiday season, probably not mayhem and empty shelves the stuff available will be small in pricing >> so it's companies that have good data and companies with deep pockets >> yeah. exactly. so if they're able plan ahead and get stuff out earlier, that's going to help and then these production things, they come in waves, sometimes there is a slowdown and they are able to ramp back up if they are able to do air freight and get back up on shelves. they will have stuff up on shelves where others won't >> one of the things i noticed about changing ports immediately, it's not going to

happen in the next couple of days it will take time before you see that starting to move andthose promises xa from the companies involved those were for 90 days who knows what happens once we fet through the holidays the ports guys say you have another shipment that come out to the luan ar holidays in china. >> yeah. there is that to worry about and also the unknown of covid that is not only affecting production overseas, different companies, different countries i should say had different policies when factories get shut down and executives are waking up to new news on a daily basis about that then there is the impact on the work force here and again that logistics problem of getting things delivered companies like amazon have their own networks have a good job potentially. >> good job jon.

see you. >> okay. still to come, we are expecting results for morgan stanley in a couple of minutes. we will be bringing those numbers. plus the latest on workplace vaccinations, including how ceos should navigate the new normal it's hispanic heritage month, we have been spotlighting business leaders and on air anchors. first capital market martin ka pereira. >> growing up in a little village a latino community on chicago's west side. a strong work ethic. family values. and a competitive spirit that still drives me to win in business 5d vice i would give ceos, latino use is the fastest growing segment. it is a whole tidal wave, an economic tsunami taking place in our country. i hope are you ready for it.

. good morning, welcome back to "squawk box." live from the nasdaq market site in time's square, checking in with futures this morning, solid

gains that we've seen in some of the do you components, especially united health and others to have the dow up more than triple digits interestingly, the ten-year backed off the 1.6 level a lot happened since last friday with that weak jobs number now 1.52 58 now on bitcoin. almost it was a second ago. 57.998 what was the high? 63 there it is. 63.64. it's within spitting drans of that yet i think at fidelity they were early someone served something from eight years ago. >> wow >> abigail is being probably friendlier than most people were in that business to crypto way

back there. >> 100,000 yeah did you see larry summer's comments about the fed, his concerns about inflation kind of playing in with the front page story, inflation back at ten-year highs i don't know if you heard what larry summers said keep if mind this is a former democratic treasury secretary saying he's never seen such a woke federal reserve, a bunch of bankers, he said they're way too woke with generation of central bankers who are defying themselves by their wokeness, they're defining themselves by how socially concerned they are. he is worried they will get out of control >> when you lose larry as they say and a big piece in the "wall street journal" op-ed from our friend judy shelton about the fed enabling the, what's some people call profitable spending fiscally >> it's the fiscal question,

probably the big ones that come into play too. >> they're tied at the hip it can't be one without the other. >> you use the word "woke" >> they're defined by their wokeness, he said. >> larry is an enanythigma he's very honest sometimes i can identify with that sometimes the fitter is not, yep, it's pretty porous. what does get out occasionally. >> we will save ourselves from ourselves by getting the details from hey. will. >> we go revenue 14.8 billion. expectation was 14 become. etf 198 forecast for 168 it's nice to be on both lines, nothing in terms of provisions

it's decently on both lines. the interesting part is wealth management both missed a little and institutional securities which contains their trading absolutely smashed it. wealth management, the forecast was 6.2 billion. up sharp year over year, there is an acquisition and investment management, 1.4 billion the full forecast up sharp year over year but you can't quite compare it still very good numbers there. a little behind expectations him now, institutional securities, 7.4 billion. the forecast is 6 billion. investor banking up 67% year over year, 2.8 billion the forecast is the 2.2 billion, continuing across the names we've heard from, very strong investment banking the fixed income trading was down 16% year over year. all of the banks are showing that the reason perhaps that they have such a big beat in this

securities business compared to the others is that they are more tilted toward equity trading than the others. they got 2.8 billion there up to 24% year over year competitive forecast up 2.3 billion. so very strong in securities still strong in wealth management and investment management a little behind expectation. i'm surprising the shares are up 1.7% the business mix is sell suited for this quarter. >> will, thank you doing double duty this morning lots of earnings coming out. we appreciate it >> a programing photofor you, don't miss morgan stanley ceo james goreman, for more on this morning,'s bank earnings, let's bring in amy wu silverman, the head of the markets. and a portfolio manager at dcla, also a cnbc contributor. you said you were looking for good growth from morgan stanley,

sarat, you got it? >> we did, morgan stanley is now the blue chip here if you look at their wealth management business i know it's a little below what they expected. it did really well investment banking did well. they don't have some of the issues the other banks might have in terms of credit. i think there is bank re-rates they doubled their dividend. going forward, they're in the right areas. >> you own this stock? >> i do. we own this stock. i own it personally. you know, i think management has do you know great job. and i look for even better things for them down the future. especially with the acquisition that they just made. >> let's talk about the other banks we got back today, wells fargo, you don't own that one, you think it is cheap for a reason what did you think of the numbers? >> it's a restructuring play they still have to deal with all the issues that they've got with the sec, et cetera i think there are other places

to play. i think wells fargo is a good bank i think when they're all achieved at this level, there is much more upside in the other banks, like a morgan stanley, bank of america, citi and j.p. morgan >> bank of america is out there morning, too they had strong numbers, their concern on one point is wage costs. did you see anything yet in the release that gives you an answers on that? >> you know, nothing yet i think it will be interesting to see how they went about it. because one of the things all these companies, like bank of america and j.p. morgan are doing, spending on that technology productivity, it will be a huge positive it can actually overlay the page presses, bang of america hit it out of the ballpark. they did well in interest growth they did great in terms of loan growth and in banking. so i think they really performed as well, these stocks are all trading at 12, 13 times

earnings the market is trading at 20. they can grow their earnings or get multiple expansion either way, i think investors will do well the next 12-to-18 months. >> amy, have you seen short-term wobbling with the financials etfs what is that telling you right now? >> good morning, interesting because of in the one-month we saw pull buying in xlf there is a slew of earnings for morgan stanley that waited to the beginning of earnings season and then specifically from for morgan stanley, it looks very similar slf in terms of how the option os were set up. one interesting thing i would tell you, though, is when you look at the latest tenors, three months to 12 months you are seeing that demand for protection out in the further months actually gets higher, people seeking more protection, longer dated as far as morgan

stanley specifically. >> you say you seen a lot of volatility with the financial etfed. not so when you look at the regional banks why do you think that is >> yeah. i want to figure that part out i think we will see that through, you know, what people say during earnings season but when you look at our volatility pairs across all different eps, it's pretty noticeable how high the volatility is with financials in the later months, maybe saying something specifically about the large cap banks other than the regional. >> what about the volatility around the fed we've got so many questions right now with the recent res ig nation of rosen, of rongji and kaplan you got so many questions about whether j. powell is going to be retom fated. does that add to anything? do you see it play out in options? >> one of the things we've spoken about with clients, it always makes us nervous when you

convert fed volatility to c volatility the consensus may end up being more dovish. you know any time when it's a question of who is going to be a replacement rather than just about the dot-plus, i think that overall level of volatility regime is something have you as to watch for i think it does go higher if those concerns become something people are watching. >> we were just talking inflation. ten-year highs is what we were seeing, you saw that payment made to social security recipients, almost 40 years. how does that come into play when you start to figure out the financials and your way around th them >> so i think a part will be the net interest income line we have as to watch what the spread is between the one and two year and ten year. that's been tightening you mentioned region also. region also will have better

earnings, but what these banks have been dock you saw it with bang of america. morgan stanley is not that affected the interest, the ten-year is icing on the cake. if that goes up, they will have a huge tailwind. they've also show you they can perform and don't need it as much if you do get it i think the banks get that extra tailwind will you get a lot more money coming in there in the next few quarters >> sarat, amy, thank you, good to see you both this morning >> thank you coming up, when we return, ray dalio on the changing look of the workplace what this means for the futureof the economy, plus, deep forget to follow with quk""saw pod, you can catch best interviews with fuse makers and so much more stay tuned, you are watching cnbc here live from the nasdaq market site. ♪ ♪

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wealth of work >> we have been given a gift to be able to rethink what we're doing. you can see it in the economic statistics and how people are changing jobs and the workplace. we are intentionally thinking about the time together. when do you have to have in-person time and so when we bring people together, it's more purposeful for that kind of experience and then at the same time, what are the freedoms that you can create of where people live and so on i think the whole competition and the job market is going to be around those kind of things >> putin mccord agreed she says surviving the workplace is open to figuring it out >> we're getting the work done in the way that employees want to do it i think it's giving employees a greater strength and a bigger voice in you thising about how they want to work and do their best work.

i think it will be different for lots of companies. every time i talk to somebody, i get the question, who is doing the it right >> my answer is nobody we're all making it up that's a wonderful thing. >> patty also said if you want employees to act like adults, you have to treat them as such you can see more at cnbc.com. >> coming up from airlines to restaurants, across the board business leaders are all trying to figure out the answer to this one question, how do you get employees vaccinated without losing vital workers we will tackle the topic on vaccine mandates next. check out the big mark, winners and lorsse you are watching "squawk box" here on cnbc i think you're going to like it here. umm, why is everyone... throwing things at me? look, as cfo it's my job to be ready for whatever's next. that's why i have my finance team,

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the labor department this week submitting its initial tech to the white house for how to mandate the president's plan for private sector businesses with more than 100 employees, joining us to discuss a tricky path for ceos is carlos gutierrez, a former commerce secretary, former ceo of kellogg, kell-double good and the senior

lecturer at harvard business school and former best buy school the new book "the heart of business" published earlier this year. hubbert sits on the board of johnson&johnson. you remember that campaign, it was a good one >> it was before my time, but i remember it. >> before your time, not mine, gentleman, we all want to get to the same place, get as many people vaccinated as possible. 99.9 sounds good that's where we have to try to figure out how to do it with companies how not to do things that push people to not want to do it just based on being mandated it's like a carrot or a stick approach some people don't like the stick. they'd rather do the carrot. we'll talk specs that we saw in the airline industry in a second but carlos, you understand we want it done.

but eighth fine line. >> you know i think there is a sense. you can see this when president biden speaks that the carrot hasn't been that effective and we have to do more you know, it all depends on the business are you in. if you are serving clients in a restaurant or in an airlines i just don't think you can get away with that you don't have a vaccine mandate. if you are working in an office, you can do things like if you don't want to get vaccinated, you can't come into the office, if you want to come in, you have to take a test i think you can find some kind of a balance it's odd this has become a political, a religious issue. i don't hear anyone complaining about not being able to speak in an elevator or ar meeting room i think the protocols have to be the same as if are you outside, if you are not vaccinated, get a test, wear a mask, stay 6 feet away that sort of thing.

>> hubbert, do you agree >> i think that's obviously sort of encouraging and masks three reasons why we can take dare of it, including the safety the weakest, including aging

as a necessary resort. >> i don't think the bind administration forced people's hands. i think they gave companies core and companies like the airlines, like restaurants, i don't think they have a choice i think they have to tell their customers that haul of their personnel are mandated, are vaccinated if not, that i have a big problem. >> okay. here's a wrink him a. group pass, they have hired advocacy groups such as liberty council to make the case that religious exemptions need to be adhered to and there is sa law that us employers are required to make re reasonable job changes to accommodate a person's religious breach although there is an out to determine if the beliefs are actually religious in nature and sincerely held

how would you approach that, hubert, if you were -- is that sort of a red herring that people are using to fought get it whauld would you change something about how religious exemptions are handled >> i think you described it most in business, we have religious exemptions i don't think it prohibits vaccine, sow need to get into this but more broadly is in last 12, four months, five months, increasingly businesses had to deal with issues of a political nature so you will make decisions that are going to not be supported by everyone but i think if you are guided by bake business principles, like carlos was saying, if are you interacting with commerce, your values, your employees, taking cave of your employees if you are guided by this, the you try to do the right thing.

others will say, by the way, when we talk about mandates, we're not mandating that people get vaccinated we're saying our employees need to get vaccinated. new don't want to get vaccinated, you don't need to work at this particular company. it's no choice my choice as a ceo is to say this is going to be, we're going to be vaccinated it makes sense for business, people, values standpoint. >> so carlos, is there a difference between a federal mandate to get vaccinated and a federal order to have any company with more than 100 employees get vaccinated that almost, there is a little six degrees of separation there. >> it's basically a federal mandate. >> it's a lot of difference. >> exactly i think also, you nknow, the objective of the company is to protect its employees. i think if you cc employees,

would you like everyone to be mandated i think the majority would say yes, if i come to work, i want to know i am coming to a safe environment. on the religious aspect. what i would do is okay let's ask them, what is your religion? please prove it. i think you have all the right in the world to ask why they have a religious exception if they don't, they're caust making something up, i think they're in trouble but i think the objective is keep your employees safe and keep your clients safe do what you have to do if you can do it through motivation and encouragement good for you if you can't, you have to go as far as you can without pan date. >> this highlights exactly what corporate america is dealing with god bless merck. let's go with the pill that can cut the symptoms in half and make a lot of these very

difficult decisions a lot easier to do. thank you, appreciate it when we come back. the parade of big bank earnings continues. we are waiting to hear from citigroup next plus, solving the nation's supply chain problem as businesses look to speed up the movement of goods from ships to your local stores, we'll check in with the man that runs the nation's second biggest port stay tuned you are watching "squawk box." bcis is cn bcis is cn

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. good morning, futures pointing higher as bank earnings pour in already today. we got results from wells fargo, morgan stanley president biden list a top leader, the port of los angeles moving to around-the-clock operations, joining the port of long beach we will ask the headant getting it firing in all cylinders again. we could hear by the end of the day moderna booster shots.

we will them you what to listen for. the final hour of "squawk box" begins right now >> good morning, welcome back to "squawk box" here on cnbc. i'm joe kernon the futures right now triple digit gains for the dow. as you can see, too, almost 300 points now it's been steadily gaining some strength. that as the session, pre-market session has gone on. look at the nasdaq up 154 points dow components, i have reported earnings that is helping boost the dow and i guess they set a good tone to the overall market. s&p indicated up over 40 we have treasuries, ten year well behaved as least as far as the yield goes

it goes down to 1.52%. you saw bitcoin on the lower right. it was over 58,000 a couple of times this morning relate now there. >> meantime, citigroup earnings are out. will has the numbers. >> it's nice to be here. so revenue ahead 17.2 billion, forecasters under 17 billion eps 215 a share. forecast was 165 revenue rolls down 1% year over year if you strip out the seam of the australian business up 3% year over year. within the segment, the strength comes in institutional big klein group 2.9 billion. the global consumer a little soft 6.3 billion not too bad. advisory business very strong, indeed, leading to a beat for the investment bank 1.9 billion. the forecast was 1.6 billion and trading, similar themes, equities stronger than fixed income trading

for them up 40% year over year, but they're kind of holding on to that enormous print this quarter. last year is better than others coming in at 3.2 billion no real provisions benefits 192 million nothing too flatted in these numbers. their expenses, which is important. they guide significantly higher. 5% higher year over year, not more than the guided again what they kind of forecast going forward on that level will be important for expenses at 11.5 billion, andrew >> before we let you go, your big take aways we've got jp in yesterday we got wells far go bank of america. what is the one tack away the investor class is going to think about right now? >> i think that one point is that if rates do rise and loan growth does pick up as well, who ut the economy being derailed,

because rates are going. what we've seen from bank of america today is the operating leverage that can come in when that happens it's still a bit of an if. we got a glimpse from bank of america today, fit comes through, you will see serious pickup and the other take away, capital markets remains amazingly strong we had six to seven quarters, it wasn't gone forever, three or four quarters we wouldn't have expected it to be going on for second quarter strength. baevg of america, morgan stanley, simplifying it a bit. their revenues up double digit, whats the others only operate a lower single digit or slightly lower for wells fargo. >> okay. will, thank you. appreciate it. beck >> tanks, an view, in the meantime, president biden announcing a deal for the port of los angeles to operate 24/7

for a backup that submerged the key supply chain california's los angeles and long beach handled 40% on containers long beach moved to around the clock operation two weeks ago. joining us to talk about getting it moving smoothly again is the port of long beach director. thank you so much for being here today. this is a problem we have been trying the get our arms around i know you know much more about it why don't you tell under the circumstances? what is happening? why are we facing these backlogs at this point? >> thanks for having me. first of all what we have before us is a national crisis. a national crisis that disrupted the supply chain >> a national crisis of disrupted the supply chain that. how do we fix it it can't be one or two simple solutions. this is from everything i hear kind of an accordion that's had a lot of different things come into play.

what are those issues? >> certainly, it's very complex sufficient into is to say during the covid era, we had market -- and bottleneck in the supply chain. as an example, yesterday at the nation's largest port collection at the part of long beach and port of l.a., we had 52 vessels waiting to get in. we had as high as 70 in normal tames we have zero, maybe one or two at best so obviously this has caused delays and overall the costs to transportation and shipping and global markets has skroblthed. needless to say when it comes to the level of a factor in monetary policy, of course, president biden weighed in yesterday on this question so we are very pleased that the supply chain transformation that needs to be had with regard to the 24/7 concept is no longer a vision it's something we need to do as quick as possible. >> ports in asia and europe have

been 24/7 for a while. what has kept us from that same situation? >> well, that's a great question as you know, we have advocated this concept for a couple years and this is even before the crisis we have so i think the bottom line, any time you have an industry that gets out of the comfort zone, there is always challenges but i think to be quite frank, cost is an issue absolutely however, what's the cost of doing nothing? the cost of doing nothing is what we have before us so how is that not the option? >> cost is the issue because if you are working 24/7, you have as to pay more to the union workers, more to the truckers, more to everybody along the line is that the issue, the labor costs? >> labor costs is a big factor again one of the things we have seen about labor, pla recall the men and women who work on the dock, ever since the covid pandemic commenced here in early spring of 2020, these men and women have been working day in, day out.

so i think again the question is what's the cost of doing nothing? certainly it's a lot more than the property should be paid with regard to a third shift and i'm talking about a shift that's 3:00 and 7:00 in the morning that's key factor. >> mario, is this something you anticipate is going to last? the biden administration, proposals they've put forth and the promises the retail partners, the wal martz and targets, that's the next 90 days is this something you see to get us through this big crunch and we can go back to the old way of operateing? is this something is that will be a way of operating, if you have been pushing for this before covid hit >> there is two things to that, number one, long beach has been pushing for that before covid hit. number two, the fact of the matter, is as you've mentioned, other parts of the world are 24/7 in fact, you continue to reference. 40% of the nation's containers lower imports where do they come

from asia the model is 24/7 which is a part ready of the reason they have the bottleneck in the west coast or for that matter to any port in the usa. i think it's something for now it's imimperative we move forward and as to whether it should continue in my opinion, let me say this the most significant complex. we will move 20 million containers in 2021 that number is not going to get any less in the future whether it's crisis or no crisis i think for me and us here in long beach, this is the concept that should be deployed. that your best practices to move the importance of that cargo to the nation and the american shipper and consumer. >> how much more does it cost for that overnight shift i ask just because we've talked a lot about inflation, this is the new way of doing things, we

need to work out the idea that these are going to be here, these are costs that will go up, eventually, they will get passed onto the american consumer, right? >> we are seeing because of the skyrocket cost of delays, those costs are being passed onto the american consumer right now. i'm talking about the cost of shipping and transportation that we've incurred here in the last year and again query whether or not it's such an elevated level, when have you the federal reserve talking about those costs, that's pretty significant. so for me, this work force here at the port is essential and so i think the concept of paying people more money for late shift hours is not new we do tdo that for public safet people and in the health industry and some of the other industries so i think it's nothing any different than what we do a ordinarily

we seen the market duration. the costs again, whatever that is, to do nothing is going to be not a factor for us to even consider at this point and certainly the administration president biden recognized and makes sure this industry considers moving in that direction. >> sow got the union on board. you got some of the big retailers on board who said they will go along with this, too what is the biggest holdup at this point is it railroad operators trucking operators in when that? >> number one, the railroads are 24/7 because of the president's leadership and the meetings we had in washington yesterday. everybody is on board. we have commitments from the retailers and of course labor. so i think it will be interesting how we move forward in the future. like you mentioned, our neighbor in the port of los angeles, they're on board now so, again, from my perspective, we have some great commitments

now the work now is going to be rolling up our sleeves and making this happen. >> mario, thanks for your time we really appreciate it and good luck. >> thank you so much we appreciate it coming up, meg tirrell breaks down a critical two days ahead for covid-19 vaccine bo booster shots. stay tuned you are watching "squawk box" on cnbc

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. expert advisers to the fda getting ready to consider booster shots of moderna's coronavirus. meg tirrell joins us now with more hi, meg. >> hi, joe we are gearing up for two days of meeting of fda advisers, today is all about moderna's booster dose remember they filed for a half dose booster tomorrow the fda's group will be looking at johnson&johnson's booster application and some new mucks and match data on a pre-serve data that comes tomorrow. we will hear presentation from the the fda about what it thinks about this application and of course the overall need for a boostner this group. we're also going to hear from israel again they are talking about the need for a booster dose it looks like they're updating on the campaign in israel.

we will learn about the booster there. the advisers toward the end of the day are going to vote on whether to recommend a half dose booster of the moderna vaccine for the same group as the pfizer booster was cleared for. the fda in documents earlier this week didn't give a strong opinion. they noticed defer disease, some suggestion moderna holds up better against pfizer. the administration wants everybody to get boosters. the recommendation is we will see that recommendation perhaps within a week. joe. >> when would we hear about broadening the original pfizer booster and do you expect them to go straight to a broader recommend able for moderna or start with the same age group or underlying conditions with pfizer >> right now the language is written the exact same way as the pfizer booster was cleared

for. so people over 65 and then people between 18 and 64 who fit certain criteria the "new york times" has some reporting suggesting the advisers group may be asked to consider broadening that we will see if that comes up, that was a sticking point between the fda and advisers so we'll see if that comes up. >> well, they didn't seem to be opposed to it. it was a lopsided number meg. remember it was 13-2 do you remember that didn't, that didn't recommend? has there been additional data come in or anything that would cause them to brand it or swing those people that weren't on board yet for the much wider recomme recommendation >> i don't think so. talking with some of the people on this fda panel, folks like a very influential vaccine scientist at the children's

hospital of philadelphia, he believes and the data show that the vaccines hold up well against severe disease and boosters should only be given if you are worried about people getting sick or going to the hospital or dying from covid there are different questions for what we are using boosters for. we heard some of the health officials there talk about the importance of keeping people at work keeping people healthy and avoiding covid of any sort so in some ways, that teams seems to be the way we are using these boosters, there is a disagreement about what boosters should beulesed to do. >> okay. meg tirrell, it will be interesting. thanks >> the futures are close to the highs of the pre-market session. if you check things out right now, helping them hire, we got united health, which feed on the top and bottom line for the third quarter. warm greens contributing to the dow's rise, those numbers were strong check these out, the dow is up

284. if you take a look at treasuries, we have been watching that closely. not as much movement there if you look at the yield, 30-year yield is sitting at 2.0343%. another check on the big banks, green arrows across the board, strong numbers this morning, too, bank of america is the biggest gainer it's up by 2.7%. wells fargo up 1.2%. wells stanly and citigroup up by one and a third percent. >> coming up, want to visit europe united airline itself just came out with ambitious new plans to get you there. you will hear from a top airline executive when "squawk box" returns right after this in 2016, i was working at the amazon warehouse when my brother passed away. and a couple of years later,

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united airlines making a big play fortravelers who wants to head to europe as countries there open up. phil le beau joins us. he has a special guest good to see you, phil. >> hi, becky let's bring in patrick wales he overseas routes and he will be busy. patrick, let's talk about the expansion that you have just announced. you guys are saying this is the largest expansion of international routes you've ever announced at one time, give us perspective if terms of where united is going to be adding flights in the next year >> that's right, thanks for having me on this morning. we long believed in a strong recovery of international

economy. so we're excited this morning to be announcing two flights to amman, jordan, and the canary islands. on open to have that, we're adding flights to denver, munic, chicago, milan and washington, d.c. to berlin >> patrick we were talking to delta's ed bastion he was saying it was his belief it will be a big summer in terms of international travel. they are expecting big numbers at delta your ceo has talked about the same thing give us where you think you believe we will be a year from now? >> if you look at short singers, like central america it's far greater we're seeing demand and supply far greater than 2019. we're the largest carrier in

central america. we see leisure destinations that opened up quickly, iceland, athens, they were the most popular last summer. we're bullish going forward with the future last but not least is pacific. as you are aware most have their borders closed that will take longer to recover. >> this is u.s. people going overseas to europe or othe destinations or europeans coming over here, percent annual wise, is it primarily or americans heading over there >> this past summer the biden administration had the borders closed going forward, we expect to have a good mix of it but there is a mix of passengers on the aircraft, skewed more heavily toward the u.s. >> patrick a part of your international fleet has been the triple 7s

with the pratt whitney engines you took them out of service following the incident in denver earlier this year. what's your sense if terms of when those go back into service? >> i don't want to get too far in front of my speech here, but we have a close relationship with boeing. i know boeing and faa and pratt are working together we're an airline and safety is number one is when they're deemed to be safe to fly again, we'll put them back into fleet. >> are they a part of your plan? are you saying as you set your schedule let's say for next may or june? we think we will have them back by then? >> i'll say this, phil, we do believe we will be flying in 2022 and summer 2022 however, none of these new flights today are utilizing the aircraft, 767s 787 and our 757 flight so the plans we are announcing

day or night depending on the aircraft. >> one last question if you are in charge of international routes when you look at what's happening with china, how much pent-up demand is there in your opinion in terms of on a corporate side for more travel over to china? obviously, there are a lot of factors, you guys because have you such big exposure there, when you talk with your corporate clients what is your sense say a year from now what you would like to see there? >> yeah, we think, look, carolina is important. we're one of the largest u.s. carriers to china. as you are well aware, a lot of companies have offshore division manufacturing in china so we're bullish it will return. we think it will take a longer period of time, in the 2023, 2024 play. we are aggressive and believe adding custody in china when the borders open up. >> patrick wales, who is in charge of international airlines on a day when they announce the

largest expansion of international routes all of this kochgcoming online n 2022 i don't know if you've made your plans for your international trips. you are a world traveler at heart. you are eager to get to europe >> that is very true, very true, paris, rome, vienna. no, i'm not kidding. i love all those places. budapest the kids love them, too. we miss it we definitely do after all spritz in rome thanks, phil >> coming up, some breaking producer price inflation numbers. the data and the market reaction queen "squawk box" returns queen "squawk box" returns

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. welcome back to "squawk box," right here on cnbc just a few second away from the jobless claims and new ppi do you that, check this out the dow now indicated up by 307 points the s&p up 42.

the nasdaq up 174. steve leishman is standing by. steve. let's get the numbers. >> becky, good morning, let me give you the jobless claims first year we have jobless falling to 293,000. that's a good number we have not seen a weekly number before the pandemic this is the lowest since the pandemic we are easing down towards sort of normal rates when it comes to the jobless rates, going to 334. continuing claims still high at 2.593. what we will be looking for with that number is a number with a one end lot when it comes to the millions on the final demand for ppi here we have 0.5% that's a touch better perhaps than expectations, but the year over year 8.6. that is hot 7.6% year over year.

we have the ex-food 6.7. that's a bit better than expectations here, final demand less food, energy and trade is 5.9 it looks like there. that's pretty good it's a little bit of easing. however you see there, becky, that consumer prices are rising less than producer prices. that tells you there is a margin issue out there. companies are being squeezed with higher input costs. they vblg able to, it seems to me in the second quarter and programs in the third so far to pass along those higher costs. there will be a limit. somewhere in there, becky, what we will. to watch for is whether or not there is margin compression. the idea is they have higher input costs. they cannot pass them along or they cannot find the efficiencies tomorrow, we will ask about

inflation, unemployment and a lot more we have an interview with thomas barkin, president of the richmond federal reserve >> indeed, is this a lag time, steve, between the higher input cost for producers and that getting passed on to consumers it seems consume verse a lot of cash and are willing to pay no matter what the price may be we talked about this consumers have the cash and they are willing to pay up. >> that's exactly right, becky have you this interim period here where consumers have, they're getting somewhat higher wages. they are getting a lot of assistance from the government what's been happening is generally people like to smooth out their income and they can raise their savings, obviously, with poor lower americans, that's more difficult. when they have them, they'll smooth it out. they won't change their spending habits right away.

they'll say, hey, things will get better, things will be okay. i'll use my savings and keep my consumption the same over the short to middle period of time over time, they'll reduce them and make instisubstitutions over time that's when inflation undermines the economy, i was thinking like a river can undermine the bank and finally the bank runs in, the city ha runs underneath it you are a guy selling something, a business selling something you have to raise your price the price where consumers say, we're not doing that anymore that will undermine the economy. >> that is an analogy, something to look for. see you later. a take on the numbers we've gotten and some from last week, betsy stevenson, economics professor at the university of michigan, former council adviser, a member under

president obama and. any positive that might make you think that philadelphia the disappointing number was an outlier? you think things are improving as we get this latest wave under control with covid >> joe, i think things are definitely improving i wouldn't call what we saw in september an outlier i call it a direct response or reaction or effect of the delta variant causing the pandemic to increase more people have covid if you go back to the week in which we were measuring who had a job and who didn't have a job in september that was a week we had 200,000 cases of covid a day and what we saw, not surprisingly, was actually a lot of people are out of work because they were sick we saw a lot of people working part time because they couldn't work because they were sick and consumers pulling back on things

they want to buy you look people were more comfortable dining indoors in the middle of the summer than they were in september so it wasn't really a surprise that we didn't see really fast job growth in september given where we were with the pandemic, but you know this week, right now, we're in the middle of what they call the reference week this is the week they're measuring what's going on with employment i think most economists feel very comfortable saying we're going to see better news in the october jobs report than we saw in the september jobs report and this unemployment insurance claim we just saw today supports that idea. you know, unemployment insurance claims are now down to, you heard, below to a number that's close to where we were around pre-pandemic so back to march, 2020 that great news. if you look at the week of september 26 they measure people getting unemployment insurance that was down to 3.6 million

which is a fall from the previous week and to put this in big perspective, a year earlier 24 million people had been on unemployment insurance this is not the recovery that we're seeing we just got hit by the delta variant. that slowed that recovery way down >> betsy, you do point out if you just look around, if this news was hitting you, if you land on this planet, the economic news, there are some concerning things. we're in a fragile, as you call it, an unprecedented place in tomorrows of you know prices rising, supply chain, oil rising, wages, people quit leaving the work force, if you if you didn't know it was going to be short-lived, these would be concerning trend. can we take solace that these will work themselves out over a period of month rather than years? >> let's be careful.

some of them are concerning trends they're not all. the supply chain problems are absolutely a reaction to covid around the globe and the fact that we have a complicated global logistics chain when you start throwing wrenches in it at random places, it's going to muck the whom thing up. that's basically what we have seen but if we can get covid under control around the globe, those supply problems will get cleared. i want to be cleared, when we see people leaving the labor force to another job most people who start a new job are coming from another job, why are they quitting? they're getting higher wages almost automatic wage gains people get come from changing jobs so people are taking advantage right now of a lot of option to find that new job where the people are willing to pay them a

little more. in the end, people will end in jobs they are much happier in, where they can be more productive i think we can end up seeing a growth that comes out of that re-allocation once things settle down if 20 too >> betsy, do you ascribe any of the issues to too much support during the pandemic? i know you have seen that again and again. there is the ongoing battle, there is too much support. people don't want to go back versus people are afraid to go back because of the delta variant. >> i'm not going to stake a stand whether it's too much or too little support i will say the amount families have got has given them a level of bargaining they didn't have in 2019, even though that was the tightest labor markets in 2019 everybody was saying, whoa, why is the labor market so tight people can't seem to negotiate, particularly at the bottom now we're seeing workers

negotiating not just higher wages, they want more control, they want to be able to work from home. they want to be able to control their schedule or know their schedule in advance. so we're seeing workers making some demands i do think that support has given them the ability to not just make the demand but expect their demand will be met i think that's you know a shocker for the united states economy to see workers getting some bargaining power back andr and i think that's shaping things and how much bargaining power do they have to come back into the labor force i think people are coming into the labor force, because they're taking theirtime and because o the delta variant, we have seeing employment growth slow down again keep in mind, more than three-quarters of men and women have come back to jobs since the work pandemic. >> do you follow the university of michigan? you watch 6 and o, do you hear anything about it when are you

there? you still got ohio state, penn state. but undefeated at this point i think you should be higher than 8, don't you? >> you know, that is not my jam. i will say people around the university are frustrated. >> i bet they are. all right. i figured i'd give it -- i see the university of michigan i can't help myself. >> i know. >> like pavlov's dog >> northwestern. >> is it rutgers >> i think it's rutgers. when we come -- >> it's good >> not as good as michigan, very obviously. right. when we come back, we will get jim cramer's first take on the marks today. then we will have top portfolio manager noah blackstein, what he

finds in the earnings report this morning good morning, are you watching "squawk box" and this is cnbc. only comcast business' secure network solutions give you the power of sd-wan and advanced security integrated on our activecore platform so you can control your network from anywhere, anytime. it's network management redefined. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. ♪ ♪ ♪ ♪

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there is no way not to talk about, hey, tim, no way not to talk about banks but i know what's on your mind, there is no way not to talk act banks. tonight there is something going on >> we will all be there and if there is an upset, we beat the buccaneers, i'm not there, shame on me. i do think that what we have, jp morl morgan did not have growth. bank of america can be the star

of the day, wells is a conference call. we're not sure what they will say. citi it doesn't seem to matter they can buy back all they want and be ayettive. it's bank of america with the leverage 12% revenue growth a lot of people were expecting they will be good. i like what brian moynihan did this quarter >> the labor supply chain ports, all these things we just had an economist on if we knew for sure, okay. three months, this can be over i don't know, there are some troubling, if you were to come in and not know why, you'd go, oh my god, we got some serious head wind. >> we have people like phil mcdermott and the illustrious

day. i think if any one of them came in ten days and beinged out what was going on, bill mcdermott, we all know bill. he's terrific. i know if he were to spend ten days, believe me, he can solve this i know the chinese, blah blah blah i'll take bill mcdermott under any of the people that think they understand logistics. i love that interview, these people need a fresh digital perspective. they don't have it >> energy prices, all those things will revert you think at some point >> i think energy is peeking right now. natural gas pique peaked the whole stagflation thing. you know that meant these people want to call on a sunset of america moment that means you got to buy american. >> i don't know what to think of

bitcoin. what a strange week. jamie dimon, vladimir putin, you know, now we were talking fidelity earlier >> there are four funds that will start to the futures as the general standard are double what they should be the moment should be a short-term peak i will sell my etherium. with some banks, it's like the first international bank of park place in i don't know connect. this stuff is unbelievable >> we get a lot of banks, we have walgreens, what else have you seen >> united health, the analysts want that money to go higher they have incredibly lower estimates. i thought your interview with rons was incredible. i thought walgreens, they did not think was possible they can gain a lot from the vaccine and i think that's

terrific i think what they ere, a company searching for a ceo and they found one and she's fabulous i didn't want her to leave starbucks, obviously, they got a pretty good bench there, too >> give merck the credit >> that was a great interview. >> it says, hi, my name is andrew sorkin. i didn't send it back. my name is james cramer. i think it was one of the best conferences, we had succession and dealbook we're dock some amazing things what can i say >> winners, did the f-word actually come out? on the "closing bell"? >> he said it. >> i think he said it. >> he did. >> you know who else said it beto said it, everybody is using the f-word, like you can just throw it around. you can't. >> i don't use it.

look, we have jeff on. >> i don't know if i like this it was a natural quote f-off >> for ne apologies and look we don't want this. >> i think i beat this if i remember correctly it was taped they beat it >> that was a part of his character. >> part of his character is on cnbc, it should be to help people >> i love that, bertha coombs, great job. you got guys talking about the most exciting day of the year, which is literally today because we have the most confusion, it's not to take away j.p. morgan was the worst of the >> what's happened there we were looking forward to goreman today, jim, he's on in a few minutes? >> i think goreman took in three times robinhood did this

quarter. we have to call him something else >> lith see around here, i see goreman, he never waves. he walks right by. >> i'm not kidding he says, people should go back to work.gorman. >> he only waves at people he likes. >> he doesn't even look over here >> i like that guy very much i worked on that booking for, i don't know, 16 years it timely came through. >> he likes me i was yelling at him and he was looking around >> listen to that sentence -- he likes me, i was yelling at him >> i have the star of "jeopardy"

next week. >> when is the no tie look is that usually tomorrow faber? >> how am i supposed to hear him? i got you now. >> you don't have a mic on. >> you're a real pro. >> hi, joe friday is the no tie >> you used to tell me for your tie is loose, you look drunk. >> man, you've been working hard all day. it looks like you've been drinking all day. >> i wore an hermes tie to bed last night you guys don't wear it >> it's true

you've got to wear tying if you're not wearing jacket. you only cannot wear a tie if you wear a jacket. >> the producer is having a hard of time that we don't get to "squawk on the street" at the right time, but it's "squawk on the street" making us behind. >> yell at cramer. thank you, jim thank you, david. let's look at the futures as we approach the top of the hour. s&p futures up by about 40, the nasdaq up by 159 now what >> okay. now we're going to go to blackstein, if we can. we'll see if he's ready, we'll see.

are we going to dom chu? we're having some technical issues here on the broadcast. >> what do you mean, we? >> you know what i'm screwing whatever script they have here noah blackstein at dynamic funds. great to see you you've been hearing the conversation we've been asking we can talk about suits and ties, but i think we should talk about banks. morgan stanley crushing it, and jim making mention of jpmorgan in a different reference what do you make of what's happening here >> you have year over year comparisons, but at the end of the date, credit looks good, a lot of reserve releases and the consumer's balance sheet looks

strong that's the number one take away. i know people want to put a huge negative spin on everything every day, but it's hard to see that loan growth has been good for some of the bank, and so, you know, i think this economy continues to grow. i'm not sure why that's a difficult concept for some. >> when you look at value, how are you placing that bet and at a time when there's some consternation about what the fed will do and inflation, how do you balance those issues >> i think the fed is starting to taper, $15 million a month. rates will start moving higher in to 22, the yield curve flattening is likely to continue this has been a year for

materials, for energy stocks have been the leaders, and at that curve flattens, you begin to say the technology stocks begin to pick up pace. inflation is high, there's no question about it. what we saw yesterday is that it remains elevated, but certainly not accelerated from here. we don't know how much of this is supply chain or permanent or transitory. >> and, therefore, noah blackstein is doing what >> i think you continue to take some profits in the energy space and energy space you continue to look at some of the technology stocks that have been going -- and buy a tie if your neck is not too fat like mine >> are you selling some stocks >> i think some stocks have had pretty beg move. a year ago we were talking about negative energy prices, so some of these stocks are up even 40%,

60% over a few months? i think some areas have lag ged that could probably have a good run. but i think we probably have a good finish to the year. that can work for everything. >> when you talk about technology, we have the faang stocks up on the screen. would you be own them? >> i think my friend jim cramer was talking about service now. i thinked enterprise software companies, especially on digit at transformation are the ones to be circling back on here, and i think the reality is as businesses come back to work, they continue to roll out digital transformation, and i would look for some of more enterprise-focused companies noah blackstein, good to see

you. the dow is up about 302 points right about now, bitcoin trading over $57,000 that's it for "squawk box" right re ohen cnbc, "squawk on the street" coming up after a quick break.

good thursday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber we're set to go positive here, banks come in with pretty good results. core ppi runs a bit cool we finally have jobless claims below 300k our first interview is with james gorman, topping q3 expectations plus the president announcing a multiindustry 90-day sprint hoping to alleviate the ongoing supply chain pain ahead of the holiday shopping season.

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