it's tuesday, october 19, 2021 "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick. joe kernen is here, andrew ross sorkin is here and we are checking things out on this tuesday morning. right now you seethe u.s. equity futures are higher after a mixed day for the markets yesterday. dow futures up triple digits, 101 points above fair value, s&p up 15, nasdaq up 44. the nasdaq and s&p were both positive yesterday if you want to check out the treasury market we saw yields pick up a little bit yesterday and higher still the ten year 1.588%.

energy obviously the big deal. we've been watching this very closely. wti yesterday once again settling at a seven year high. i feel like i say that at every day. this morning that's the case again. it's up another 1.1% $83.37 yesterday as high as $83.87 during the session. natural gas and brent higher, too. crypto, there is the day that that pro shares bitcoin futures etf starts trading if you check it out ahead of that, bitcoin up to 62 -- $62 $62,134. a lot of questions about what the fees may be in an etf like that because it's futures and it costs money to roll the futures contracts every month. the s.e.c. out with a much anticipated report on the gamestop saga. let's talk about it, the main

regulators brokerages are turning it into a game in order to try to increase revenue. trying to motivate some, robinhood for example made their site look more exciting. the s.e.c. report did not lay blame for the stock mania on a single cause or entity i don't know if you read through it it was about 35 pages and i was disappointed. >> why >> i was disappointed -- or maybe i was happily surprised. but all of the onjenture -- >> those are opposites. >> totally all of the conjecture by the folks on reddit and twitter about the role that citadel played in somehow killing the shorts and forcing robinhood to do this and that, and melvin

capital and this and that, and all of the this and thats were not even touched upon by this report and i think the implication is they weren't touched upon in this report because they were not true so i was -- i was disappointed because the report didn't even -- it didn't even seem to try to explain any of this, except to say this is how it is. the good news is, they did explain one thing that i thought was actually important because it was a complete misunderstanding in the world. if you remember, there was 140% short interest in gamestop and the reddit folks sat there and said this can't be right, this is manipulation, how can this be and the s.e.c. said this is exactly how it could be, this is normal, this makes 100% sense let's explain it to you. there were things in it that to me gave some -- >> when you look at the way options worked and how you get to that 140% number you can see

it but the -- you know, just on face value that gives people a big -- >> i know but i would have thought -- >> but then the other thing, this is not going to stop the conjecture that they didn't find anything this is going to be a big -- they're going to call that a cover up, the wackos that are sure all my friends run hedge funds. i know a couple of those guys casually but they never told me -- it's ridiculous to say that any of us are in the -- me, i like corporate america am i in the pocket of corporate america? yeah, i prefer it to the public sector so in that respect you will hear a defense of capitalism from me. but nobody individually said here's stock, say something good it's just bs same with the higher ups here, no one has ever told me to say anything they told me some things not to say. but those are -- >> well --

>> and you too. >> i get it on both sides. >> i know. >> i'm either a communist one day or a wall street lover on the other. it's very complicated. >> i think it was the carters, there's a picture with john wayne ga si, president carter and roselyn carter were not friends with john wayne ga si, that happens all the time getting a picture -- one that was really toxic was our buddy epstein, he had pictures with everybody. >> and he showed it off and used it as a currency. >> it doesn't mean if you have a -- >> i don't have a picture with epstein, i never met the man. >> i don't either. >> i don't either. >> we're going to move on. >> i think i'm too old to have a picture with him >> good one. >> here we go. >> it's only 6:05 in the

morning. let's talk about what's going on on the west coast this morning and that is arc invest kathy wood spoke at the milken conference and weighed in on the game-ification of trading. >> i know people are concerned about the game-ification that the robinhoods of the world represent i'm not. i think after the bust after the '08, '09 meltdown, the fear and risk aversion that permeated the markets took the joy out of the markets and took the creativity and maimagination. now it's coming back >> and gary agaigensler has mor the report this morning. >> they took the creativity out of the market. like cdos and making sure you can find new ways to come up with different things. it just -- when you start

talking about the creativity of the financial markets, most of the time that doesn't lead to great things. >> three letter things aren't always great either. we'll see what happens with the nfts but that's three letters too. >> it is. >> now you're going to a three letter agency. >> when we came on -- then there's four letters like mrna but when we came on i said -- i said t cells because i was taught we were having a conversation -- >> i didn't entirely hear. >> i said t cells and the reason i did -- it's this story the fda is planning to allow americans to mix and match covid boosters receiving a different booster shot than the initial vaccine. reports say the agency won't recommend one shot over another. it might note it's preaferable o use the same, but it could make it easier to some extent the fda is expected to authorize

moderna and johnson & johnson booster shots by tomorrow night and could green light the mix and match approach at the same time i think you're right, when you get the j&j first, it's a lower amount, theoretically amount of immunity to start with so make sense just to get the pfizer or moderna. for me i got the moderna, it's appealing to mix it with the j&j because a lot of people say that the t cell response with the j&j response vaccine is better but then i start thinking about thewhole idea of -- i mean, your immune system is a beautiful, wonderful thing that you want to be careful long term and there are very, very small adverse side effects i mean, there's hundreds of millions of these given myocardd

clotting so i say i handled the moderna well, do you want to start mixing and matching? >> that's the perfect thought process for going through this i've been trying to figure out the same things myself here's the other question i'm dying to ask dr. scott gottlieb, if you have a bad reaction to a shot, i'm not talking to an adverse reaction, you get side effects. >> sore arm, chills. >> yes maybe you feel like you have the flu for 24 hours if you get a bad reaction likes that is that indicative of somebody with a good immune system or is that indicative of somebody who would have a bad reaction to covid, because everybody reacts differently >> that's a good question. probably it's that you have a pretty strong immune system and it sees something like whoa, in the form of spike proteins, not the virus itself, and so, you know, it kicks into high gear -- >> then do i worry about it?

my dad didn't have a strong reaction, a lot of older people don't have a strong reaction because the immune system is not there. i'm not sure what the answer is. >> when i didn't have a strong reaction i just think it's because i'm strong i don't think it's because i didn't have a good -- i don't think it's because i didn't have a good -- >> i don't know what the answer is >> i felt a little hungover, but i -- that's -- you know, i did have a couple cocktails so i -- >> is that explaining this conversation >> not today i haven't had any cocktails. people like to say that because we're so crazy sometimes. >> no. we're like this anyway. >> try getting up at 3:30 every morning five days a week >> we should talk to gottlieb about this >> he's not on today, is he? >> no, he isn't. appears if you took j&j only the moderna and pfizer seem to be the obvious choice if you took pfizer or moderna

it's not clear the j&j would be -- >> that's my personal thinking >> i'm just saying in terms of what the charts suggest but again i'm not a doctor, let's wait for a doctor to talk to us about it >> there are positive things to come. >> we have kavita patel joining us at 7:30 >> we'll talk about it with her. fallout over the covid vaccine mandates, a college football coach and espn reporter are out of a job because they refused to get the jab. getting you ready for the big earnings reports starting with johnson & johnson that's later this hour you are watching "squawk box" live from the market sites in times square ♪ feel stuck and need a loan? move to sofi and feel what it's like to get your money right.

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zbloe welcome back to "squawk box. earning seasons kicking into gear this week we'll hear from johnson & johnson, united and after the bell netflix revealing numbers we'll hear from ibm tomorrow and tesla a lot of people focussed on that for more so far and the markets bring in valerie grant at alliance bernstein alliance has a french feel to

it but we'll stick to alliance. >> lines thank you. great to see you we heard the bank earnings everybody was very happy about the earnings reports last week but i think there's a little more trepidation about what we may hear this week, perhaps in the earnings reports themselves, perhaps on the calls when we get some color around what the future looks like when it comes to supply chains, cost of energy and labor. >> right i think that the main thing that investors will be listening for is the impact of inflation and as we look across the board, companies, you know, of all sizes and across sectors really, are talking about it quite a bit. so in terms of input costs, obviously input costs are rising and as inflation expectations go up, that means that people will seek to have higher prices going forward and that's where you have the ripple effect i do think that over time as we make our way through the covid pandemic, which you were just describing, some of this will

resolve. it will take some time but it will resolve but the wage inflation i think will persist that i think we've had a major mismatch in supply and demand and i think the wages will continue to be elevated. which is not necessarily a bad thing, depending on how companies manage it. >> if you're right, how are you advisiing clients to position themselves amidst all of this? >> we're focused on consumer discretionary stocks we're underweight energy, actually we have good eccexposure to consumer staples. >> go back to energy why the under weight given the rise in price of, for example, wti right now? >> wti is up, i manage a portfolio on responsible investing. the energy companies it's hard to find a place for them in a portfolio like this. we seek to have exposures in

ways that energy companies typically provide. the other thing with energy companies en companies, it's difficult to forecast the long-term cash flow given the likelihood of regulatory actions and shifts in demand in the end markets. i think there's more risk there than perhaps people are considering. >> this is a policy question, nothing to do with the investment case in some ways do you worry at all that the lack of investment or the positions that a lot of invests are taking around esg, and what we're hearing about the reason the cost of energy is going up, because we may not have enough supply >> you can invest, i think in some of the energy companies but if you have a focus on those that are really pivoting towards an energy transition, so to speak, right because again coming back to the

long-term, you know, cash flows of these companies you want them to be fit for the future that's what we've seen with many of them. in fact, they've announced they are seeking ways to reduce their emissions. so i think there are ways to maintain some exposure just that we don't have any currently. we're underweight and have been for some time. >> i interrupted you not politely in the middle to talk about energy but you were about to tell us about two or three other themes in terms of how you positioned the portfolio. >> one other issue we focus on is labor management and human capital management practices because, as i said, we're seeing essentially a war for talent really at all levels so there's -- there are companies that are addressing this in some pretty innovative ways we have walmart as an example in the portfolio which had a bad reputation on labor. but their wages have increased and in addition to that they

have a program that enrolls 300,000 people in college education and college access so the actual employee mobility is really improving and we actually measure the employees' perception of walmart as an employer of choice so we're looking at companies that are going to be able to attract the labor they need as we're in this very tight labor market. >> fair enough valerie, appreciate it >> thank you. we'll take you live to beijing for the latest on the evergrande saga. that's next as we head to break, though, check out the shares of xiaomi jumping in this hong kong on news that the smart phone maker will produce its own electric cars by the first half of 2024, that update coming from the ceo seven months after they annound eicethr entrance into

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it's time for the executive edge and an upgrade on the evergrande saga. probably an update i guess. unless you want to upgrade it eunice you're not in that business, are you? she joins us now. >> reporter: i will upgrade it, joe, because there is some good news here. evergrande has made its onshore bond coupon payment. this was $19 million so that is an upgrade based on everything else we've been hearing about the company.

so that payment was due today. but it's still unclear whether or not evergrande is going to be able to make up for a missed offshore bond coupon payment which was supposed to be made on september 23rd now people are looking at saturday as to whether or not the company can make this 30-day grace period and then avoid default. so today, state media were reporting that evergrande was having some trouble raising cash more recently with a stake sale of its property management business this was supposed to be a 51% stake sale to a chinese rival that hoped to raise about $5 billion, now it looks as though it's falling apart. in addition to that, there have been several reports quoting sources saying evergrande intends to prioritize the domestic market for its funds where the stakes are perceived, according to sources, to be higher for the financial system.

so in the past several days, the central bank has been attempting to reassure investors that evergrande's problems are unique that it blindly expanded and diversified. but that the spillover effect is controllable so the messaging that people are hearing over here, including some foreign investors, is that from the authorities as well as from the company is that the authorities are still not willing to directly intervene with any sort of workout program for evergrande and also, that the priority of the authorities, as well as the companies, is going to be domestic focused so the home buyers, the wealth management product investors, the local banks, local investors and that the foreign bondholders are lower on the priority list guys >> just to broaden out the discussion and you can give us your analysis, the journal's

lead story is crimped growth tests beijing's agenda and i think president xi we talked about this, so there are consequences, so he's moving in a lot of ways, you talked about it just about every day. we've talked about the different sectors, whether it's gaming, whether it's health care, whether it's property, whether it's education, for profit, whatever you want to talk about. those idealistic moves he's made to move back to closer to comm communism, they have effects when you've done so well under a capitalist system and you post a 4.9% gdp and there's covid still and supply chain issues and energy prices, all these other things, but those things you didn't need to do but you're doing philosophically. what are those cutting off gdp, and suddenly it comes home, wait, am i going to be able to

continue with these reforms when in the real world it has consequences. >> reporter: yeah, and it does look as though the signals that we're getting is that the government is going to continue on with some of these changes. i mean, we did -- there obviously is an impact on growth and there is some belief that as president xi gets closer and closer to the political year and gets more and more concerned about that, that, you know, growth is going to become much more of a focus. but as of right now, some of the signals we're getting is one from the central bank that there is this attempt to continue to make changes within the real estate sector, but also over the weekend, president xi had penned an essay which was publicized and that was talking about the importance of common prosperity. and so the belief is that the government is still on this tra

salm -- trajectory to ensure they push through the regulatory changes and make the reforms because they think it's necessary to help improve the common prosperity of all people in china >> well, lesson might -- you know, you figure lessons are learned, i remember when it happened and they've done really well and here we go , it's like let' try communism maybe it will work this time. it doesn't work! thanks eunice. we'll see you in a little while. let me give you an update with johnson & johnson, those numbers just out running through this it looks like the company came in with an adjusted number of $2.60 a share. street had been looking for $2.35 but clearly there's stuff in there that we should look through. in terms of the revenue it was a miss 23.34 billion versus the 23.4 billion the street was looking for.

they are talking about adjusted operational earnings per share or awe justed eps per share of $9.77 to $9.82 and just checking again, the street was at $9.66 so they are raising their guidance for the year. comments from the chairman -- the ceo of johnson & johnson, also the chairman. he said they're looking at this for the quarter, solid performance across the entire board driven by robust above market results in pharmaceuticals. ongoing recovery in medical devices, remember during covid people stopped having surgeries, couldn't have surgeries that were not deemed necessary at the moment things had been put off but they are seeing an ongoing recovery with that, and talked about strong growth and consumer health so it looks like in all three of those areas things are showing some improvement take a look at shares of j&j up right now up about 1.25%

we are going to speak to the cfo joseph wolk in a few minutes when we return, a college football coach fired for refusing a vaccine mandate we'll talk about vaccines and the work place right after this. as we head to a break, let's look at yesterday's s&p 500's winners and losers hey businesses! you all deserve something epic! so we're giving every business, our best deals on every iphone - including the iphone 13 pro with 5g. that's the one with the amazing camera? yep! every business deserves it... like one's that re-opened! hi, we have an appointment. and every new business that just opened! like aromatherapy rugs! i'll take one in blue please! it's not complicated. at&t is giving new and existing customers our best deals on every iphone,

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good morning, and welcome back to "squawk box. we're live from the nasdaq market site in times square. we are green across the boards, dow looks to open up about 131 points higher, nasdaq about 55 points and the s&p 500 up close to 19 points higher. contract talks between deere and 10,000 striking resumes have resumed. they're now confirming the renewed discussions. workers began that strike on

thursday after rejecting a pro posed contract that would have delivered 5 to 6% raises to workers. johnson & johnson just posting an earnings beat and raising its forecast the company's ceo joining us here in a few minutes. and later proctor and gambles incoming ceo joining us to talk through that company's quarterly results and what it means for the rest of the economy. you can watch or listen live any time, do it right now on the cnbc app we're back after this.

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[ screaming ] evil dies tonight. you want your mask? come and get it! some fallout from the covid vaccine mandates, washington state university has hired the head football coach and four as assist ants after they refused to comply with the vaccine mandate. he had an annual salary of $3 million, he said he would not get vaccinated but declined for weeks when asked to explain why. the university said he would be fired for cause because he's unable to meet the requirements in his contract. espn reporter allison williams is leaving the network after refusing to comply with parent company's disney vaccine requirement.

she said she was not ethically and morally aligned with the vaccine mandate. you are seeing cases or instances where people would rather leave their job than get the vaccines that have been required at this point we had yesterday the conversation with new hampshire's governor where he talked about look, if you're truly a republican, if a public -- if a private company chooses to do this that is their choice and the questions come back to what the government is requiring and whatnot. >> i've seen people that say well, you know, we're trying to work on employment issues and firing people doesn't help with the employment issues. i was surprised when i asked sinunu, yeah, fire, done there are a lot of groups pushing back, policeman, fire, whatever it is there's some carveouts that the biden administration gave to certain government entities,

right, which was weird and unions. >> there's been others it's like to not -- >> how do you read it? >> i think part of that is negotiations with the union. >> post office is one. >> it does -- it doesn't sit well when you're telling other people they have to require it and allowing exemptions in your own ranks. the if a company chooses to do this, i can understand why some companies would, they want to make sure they're protecting their employees, customers, and there are some employees who want everyone around them to be vaccinated it's not just the anti-vaxers who are there. >> i guess people that have had covid that at this point say look, i've had it, i got better immunity than you get from the vaccine, i can understand -- >> for example, the espn reporter's view -- >> what if someone did say that. say you had it and had a robust

immune response -- >> i think the science says right now that the vaccine -- >> will hurt >> it won't hurt you we've seen millions upon millions of people take it. >> hundreds of million. >> billions of people have gotten it at this point. >> i don't understand the conversation about why not to take it. >> if you had covid you can understand that. >> i also -- this is my personal view, this idea of transmission, yes, people say the vaccine doesn't prevent transmission the vaccine prevents lotso of trans mission. so you want people to be vaccinated. >> we can talk about it again. that was the most disappointing thing that gottlieb came on and said you're still shedding virus even if you're not sick. >> that was a turning point, i think. up to that point i think we felt like we got the vaccines it's okay you can go out there. >> exactly >> and that was a little bit of

a show stopper. >> but i think it's true usually i think it would be much less likely. >> it's much, much, much less likely the chance you can spread it -- the chance you get infected and then spread it is lower than if you don't have the vaccine we'll have a conversation very soon in this country which we haven't introduced about bo boosters, which is to say i think we'll get to a point that employers say not only did you have to get the vaccine the first time but you have to get boosters. >> the biden administration you saw totally jumped the gun on that, couldn't get its federal agencies to back him on it coming up, johnson & johnson -- and their -- you know, you talk about the science. they're looking at it and they're going to wait until they have the stuff before they make it -- >> joe, part of that was a political discussion it was what do we want these vaccines to do do you want to make sure people don't wind up in the hospital or they're not transmitting it and do you want to do it before

other people -- it's not just the science. it's what we want of these things and is it fair to take them first i think that needs to be brought up. >> once they are approved, then businesses are going to make these decisions about the boosters on this -- probably on this same basis of lets reduce the risk to our employees. >> if the science says you have zero antibodies left maybe so. johnson & johnson out with quarterly numbers, the stock is up sharply they happen to make a vaccine also cfo joseph wolk is with us next. that's wolk. bicoano-k-e. a g mpy, he probably is woke "squawk box" will be right back.

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>> johnson & johnson reporting better than expected quarterly earnings raising the full year forecast as well meg tirrell joins us with more on the details >> reporter: coming in with a beat on earnings but a slight miss on revenue looks like the medical units came in slightly shy of expectations nonetheless j&j raising the full year forecast joining us to dig into all of this is joe wolk the chief financial officer. walk us through the quarter. looks like a slight miss for the two units but you raised your full year forecast help us understand. >> pleasure to be here with you. the miss is really a matter of timing the first part of it was really related to the vaccine, the covid-19 vaccine where we have not changed our full year guidance of about $2.5 billion

in revenue and we plan to ship what we can manufacture through the balance of the year so really a timing element there. i'd almost classify the medical device miss as something similar. as you know in the quarter we experienced fluctuations in elective procedures with the delta variant, we know that hospital staffing is somewhat constrained and that served to reduce volume in the third quarter with respect to elective procedures we see the procedures coming back in the fourth quarter or early next year so we feel good about the results we were able to deliver on the top line if our core business if you think about pharmaceuticals growing 13%, consumer products growing almost 6% and even medical devices with all those fluid dynamics still growing better than 7%. it was really just an outstanding quarter by our companies worldwide. we're also extremely proud that we're able to increase and meet the short term objectives and

increase our r&d investment. last year was a record year with respect to innovation, through last year we're better than investment in r&d. we're meeting the short term objectives but also positioning the company for the long term for the balance of the decade. >> tell us a little bit more about that hospital staffing issue. this was something that analysts had flagged from some other companies working in this space that -- and this is something we've been worried about throughout covid but you see that getting better in the fourth quarter, is that right? tell us about those dynamics. >> we do see it. a tremendous job by the hospital administratorer particularly across the country there is worker fatigue, vaccine mandates have played into the mindset of some. so the hospitals are very efficient now at scheduling those procedures out into the future, creating i would say a

mini backlog, not what we saw maybe in july or august of 2020 when the second quarter of that year really kind of went dry so i see it much more pro programattic in terms of way. >> let's talk about your covid banking. there is a lot of news leading up to this report in that sphere last week, fda advisers voted to administer a boost tore everybody at least two months out a. feeling from a lot of the committee members believe this should have been a two-dose vaccine all along. but j&jr is positioning it as a w wonderous vaccine. if it becomes a two-dose vaccine, that huge implications for global semi. >> certainly, we can zee sit

here, 15, 18 months later, i would remind people how the w.h.o. defiance the gold standard for vaccines in a pandemic and one that's being efficacious in terms of limiting hospitalizations and death it's a one shot. it's easily transportable. i think if you look at the j&jr vaccine, how that's looking to end the pandemic, where we have approximately 50 million doses already out in the developing world, that's three times the number of the combined mrna vaccines and i don't mean to be critical of them they've played certainly a key role in stopping the pandemic as well but i think it took multiple players. and we don't have any reservations about how we approach this we were trying to live into the gold standard. i think we've done that. the booster will only build upon the 94% efficacy that we have established through the data that was seen last week as well

as what i would say is best in class durability a booster should only help that going forward. >> of course, there is a lot of conversation about switching brands for a booster for j&j after the anti-body data came out last week. the "new york times" reporting the fda is allowing people to switch brands for boosters how does j&j view that situation for its vaccine going forward? >> yeah, so we're certainly monitoring the situation we will respect the scientific process. i think if you look at the nih study that was being referenced, that measured anti-body with the t-cell activity is what is indicative of efficacy but we're going to respect the process and see how it plays out, we'll proceed accordly there. >> and what can you tell us about supply of the vaccine? we know your partner came back on board in july

how is the ramping up of the partnership going with what does the supply look like this year into next year >> we plan the 2.5 billion dollar forecast represents production of 600 million vax doses. by next year, we will be well north of a billion dose run rate we feel good merck, the partnership, we are collaborating well there they were our 9th facility nobly to bring up, to manufacture the tech transfer is occurring we really don't see supply as an issue even if boosters are approved here in the coming days >> joe, quickry, you mentioned the t-cells, is there an easy assay to measure efficacy in t-cell immunity, or are you sort of at a disadvantage because it's much more difficult to prove that, than it is cirque lath anti-bodies >> i'd say it's a little more difficult to measure, joe.

we have a great scientific team that will be able to convey that should the do you that prove that out so i -- i am probably a little beyond my skeeves to measure antibody versus t-cell activity. but our scientific team will be able to handle that. >> just in terms of medical dechases and the ongoing release in the press release, what does that 19 mean what does that look like that people couldn't get them in the lockdowns of covid >> it's those people tra referred procedures, think in our orthopedics unit, if there were a knee surgery, it's uncomfortable. you want to have better mobility but it is something you can delay. we contrast that with let's say our electrophysiology units, it's more in the cardiovascular area, something you can't defer as long, nothing of what we have

learned throughout the entire make is essential, but all the time i think people will actually come back to a mindset of making sure that things do not linger, they get the surgical procedures and therapeutics they need to continue living a healthier active life. >> supply chain issues seem to be a concern for every single company. what do you deal with? what problems do you run into on that front >> oddly enough, we improved our gross margins about 200 basis points we are experiencing some i'd say higher distribution or higher freight costs, but the goods that came through in this quarter's p&l were probably items we manufactured in the first quarter or third quarter of last year we're starting to see and monitor come increases on some commodity products we realize and appreciate how important our products are to

the world. so we have great business continuitys in place we will look to at just as needed into 20 too it is something we are actively monitoring >> hey, meg terrell. one last one, i'm sorry i'm so fixed on your vaccine, but that's all i think about for the last year-and-a-half are you worried at all the about waste here in the united states? we heard the fda is unlikely to extend shelf life again, is that what you are hearing how many doses do you worry about potentially expiring on shelves here >> right now we haven't acknowledged that as a concern at this point, the meg, as we've seen previously, the fda will adjust accordingly, as long as it's backed by science and safe and effective when you use so i don't have specific concerns waste is not a concern when it

comes to vaccine distribution at this point in time. >> all right joe, we appreciate you being with us this morning thanks as always >> thank you, meg. have a good day. >> mech, thank you when we come back, procter & gamble is set to report in the next few minutes we have a first cnbc interview with jon moeller that's coming up next and the chief health officer interview, we'll be right back. we'll be right back. >> amazon helped me with training and tuition. today, i'm a medical assistant and i'm studying to become a registered nurse. in filipino: you'll always be in my heart. there's software. and then there's industrial grade software, forged from decades of

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. earnings alert, dow component procter & gamble reporting results. we will be speaking to the company's vice cramer live vaccine mandates and the fda could allow mix and match booster shots making headlines today. stocks of the vaccine makers are up this morning. we'll get you up to the speed on the latest amc networks is looking to shake up the world him they join ug to talk about the company's streaming strategy the second hour of "squawk box" begins right now. good morning, welcome back to "squawk box," right here on

cnbc, we are live in time's square, andrew ross sorkin and becky quick and joe kernon we do have some green to show you this morning after yesterday morning, we were sitting in the red. the dow right now though about 184 points higher. nasdaq opened up higher as well. we got the s&p 500 looking to open 23 points higher. we have headlines as well, bitcoin is moving higher again, the first etf gets set to list pro share's bitcoin strategy etf will debut and others are set top display there's in the near future you can see the price over 62,000, 62,208, meantime, the fda said to mix and match booster shots. we have been talking about it all morning. multiple reports saying the organization is will allow people to receive booster shots

from different companies and the vaccine from the original one they've received so far the agency has approved pfizer's booster shots, it's expected to okay boosters from mod na and johnson&johnson later this week. meantime, dow component travelers out with quarterly numbers a short time ago, earning $2.66 per share for the third quarter, well above the $1.67 consensus revenue beating forecasts, travelers noting upbeat results you are looking at that stock up a little over 1% right now procter & gamble out with quarterly results moments ago, beating quarterly profit of $1.61. jon moeller, right now, he's the vice chairman, chief operating officer of p&g soon we will call you the president and ceo, jon, i will

say this, people across the world said you did a great job in your previous rolls at p&g. so it probably was not coming on "squawk box" every quarter that got you that move, right i mean, it's more than just that i would say, you earned it >> it played a part. what's more important is sustainability delivering results. i am joined in that effort by 100,000 plus colleagues. we just delivered our 13th consecutive quarter of volume sales consumption and shared growth we view our top line globally in nine out of our ten categories we held our build share in our top country combination and built aggregate share by 50 basis points we have significant commodity costs with that strong top line and our continued cost savings

program to deliver earnings per share down 1%. 5 billion of cash returned to shareholders all in a very difficult and volatile operating environment the results for the quarter, the strength and the breath then give us confidence to confirm guidance, which ensdz in june. top line, bottom line cash. >> we talked about it that you were recently able to be above plan in terms of organic sales growth it was 4%. for the year, are you moderating a little you were two-to-four people and did four now you are 2-to-four again for your forecast. will you be able to beat that again or do you think caution is warned with the state of the world? >> there is a lot of volatility around the world, whether that's

in the supply chain or the geopolitical environment but we're confident in the business consumption continues to grow. which is very important. we finished our first quarter. starting at two-to-four seems prudent for now. >> if all you had to worry about is taking market share i know you had to introduce price increases, analysts worry if it can be bumpier in terms of increasing the price increases what i am getting to is your second biggest market. we talk about it a lot here. that is coin ceos are faced with really trying to thread the needle there. we want to satisfy the chinese consumer the great people in china, but some people are unl comfortable with the moves in the leadership and cpp and maybe some of the

future moves that can be downright hard to deal with as you want to be enabling the chains >> we are thinking the of serving consumers and dock at this time right way. that business for us has doubled over the last ten years as you rightly mentioned, it's their second largest market in sales and profits. the market was a little flat in the last quarter we delivered top line in line with a year ago on a two-year stacked basis, we delivered 12% growth which is about current market growth up 6% per an number we will continue focusing on serving consumers in a superior way around the world doing it the right way. >> would you say to press an

issue a little bit are you agnostic for lack of who you are in bed with in terms of being? i look at the nba, nike, starbucks. someone pointed out that com cost is a theme park universal does so have you to be there but there are going to be rammicss, things will be written they helped develop a technetic in china to get around iphone privacy issues i don't know if you the want to comment on that then you also developed your own way to sort of monitor consumer behavior and maybe won't feed to do that anymore. but that was written about in sort of a kind of a negative tilt >> well, we need to have a one-to-one relationship with consumers around the world, where they choose to enter into that relationship in a manner and fashion that they choose to

interact with us that allows us to serve them hospital mali, efficiently, effectively for them and so that's a intierd outcome, again, one that's welcomed by consumers. >> do you also, john, think that things are going to loosen up in terms of the supply chain and it's transitory? what are you factoring into your twoed on three-year expectations will we expect any shelves to be downright bare again i know christmas can be a problem. are we on the other side of these disruptions at this point? >> i'd say there is still a ways to go for the mark forces to work and equalize the supply and demand situation in different parts of the world so we're not through it in the quarter we just

completed, despite delivery and earnings, we had an increased commodity and transportation costs that related to those supply chain dynamics you described. there is another equation that we're not talking a lot about. that's what's driving that supply shortage, which is demand demand is very strong on a global basis consumption in the u.s. continues to grow of markets growing globally 3-to-4% and higher rates in the u.s. so as the supply chain equalizes it itself, that underlying consumption and demand should lead to very attractive conditions >> effective to the way that you approach satisfying consumers, there is sort of a juxtaposition of privacy and having big da that that allows you to serve

customers better do you have a way of walking that fine line as well and i guess you can do with met that data, you are not in58 any individuals? you are looking at a large trend? that's a big part of what procter & gamble is trying to do >> we have a big sources, much is anonymized. it does allow us to sea real trends in real time. again where consumers choorksz we'll have a one-on-one relationship with them and they'll decide how much they want to provide us to be able to serve them better. all of that gets combined into a world class understanding of consumers around the world >> jon, do you have a view on where your taxes are headed, not you, yours are headed up are you the ceo. i'm talking about procter & gamble, itself, it can be a

global pass, nato. it looks like there is going to be one there could be higher corporate taxes in this country s. any of that out of your control, i guess, unless have you lobbyists? do you have a problem with where we're headed and also comment on rising interest rates and tapering and everything the fed might be doing all out of your control, but something you have to think about. >> our biggest desire from a tax standpoint is that american companies be fully competitive two their domestic and multi-national competitors both here and abroad and we spend a fair amount of time explaining the downsides of not being competitive on a global basis. if you look at our business, for example. roughly 60% is outside the united states. but that business creates u.s.oabout 20% of our jobs in the united states support our

national beings. in estate, it's higher, close to 40%. so it's very important that most of our competitors as you know are domiciled outside the united states, they're companies like unilever, hempg him, like cow, in -- henkel, like cow, it's important we have a competitive tax rate >> if i distill that down, do you think it's a mistake to raise corporate taxes back to 25, 26%? is that something that would adversely affect your ability to hour to satisfy shareholders and other stake holders? >> it certainly affects the attractiveness of investment in this country, but the u.s. rate presumably applies to all competitors, some it's less concerning than, for example, an increase, a unilateral increase

in the tax we pay in overseas earnings, that would apply just to u.s. companies, generally, i think tax is cash and it affects a lot of investing in the market. >> are you a big global brand guy or a niche i heard someone call it a zoomer it's like a generation z boomer or something so they want all these ifoo-foo kale-based products are you going to stick with those or pie, things we can trust because we know about it for 180 years >> well, we focused our portfolio into cages where primarily performance dryers brand choice that's certainly the case in laundry detergents and baby diapers. in those daily use categories,

where performance drives brand choice, trust in the brand and its delivery against my needs president a significant factor in the purchase decision and over the course of the pandemic, we've actually seen a migration towards those large trusted brands if i just look at private label market shares as a proxy for that, they're down about 80 points or sorry 80 basis points. in the u.s. over the last 12 months, they're down about half that amount in europe. we're seeing migration towards brands that perform in categories where performance drives brand choice to serve me on a daily basis >> all right good, jon, one last prediction in our lifetime, will the bengals win a playoff game >> i have to believe so, joe >> when joe borough gets out of the pocket and starts running, you just go, no, no, no?

>> do you do that like i do? he will be okay, right he's like -- >> he did much better two days ago if terms of protecting ours ourselves. >> all right november 1st, we're counting down is that the day? >> that's the day. >> next time are you on, you will be using that acronym ceo. >> thanks, joe >> ceos, see you later, thank you, jon >> joe, speaking as one szoomer not interesting in any products, zero >> it's preciferrous call flower, brussel spouts. none of them do.

>> brussel sprouts are okay. when we come back, an exclusive interview with google's chief officer and the futures of the dow component and proctor and gamble you see right now futures are running up we started this session up about 102 points then we heard from johnson&johnson and procter & gamble with better than expected results. dak futures up 190 points. the nasdaq is up by 64 and "squawk box" will be right back. "squawk box" will be right back. >>fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this.

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. coming up, google made a big bet on a move into healthcare. now the heck giant disband health bertha coombs takes a look at what is next. >> reporter: that's right, andrew, we will be talking to karen desalvo, who is the head of google health what is that now we will talk to her about what's next. and where tech is headed in healthcare bill, mary? hey... it's our former broker carl. carl, say hi to nina, our schwab financial consultant. hm... i know how difficult these calls can be. not with schwab. nina made it easier to set up our financial plan. we can check in on it anytime. it changes when our goals change. planning can't be that easy. actually, it can be, carl. look forward to planning with schwab.

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welcome back, everybody. google made a big bet to move into healthcare to find hospitals find insights into their data now the tech giant is stepping back from the business bertha coombs has a look at what's next for google health. hi, bertha >> reporter: hi, becky we are at the health conference in boston where a lot of health leaders are meeting here this week joining me now is karen deval have, who is a chief health officer at google. thanks for coming. >> thanks for having me.

>> you are the chief health officer, but google health has disbanded. what is google doing now it's disband ed we are all in on health, it includes organizing information and technology tools like artificial intelligence, our journey across covid taught us the best way to make a difference for billions around the world is weave health from search to fitness to cloud and leverage our ai, where we can to help people better diagnosis and faster therapeutics. we are growing and doing more than ever before to help our partners and users >> you worked with partners such as aca, announcing a new partnership with california blue cross to speed up billing and for patients to be able to see their billing in real time then there was the deal with askrengs that was a bit controversial. a lot of people were concerned about google and ai in the midst

of healthcare and privacy concerns is that a part of the reason that you've stepped back and taken more of a consumer approach now >> we are still thinking of three big buckets where we can make a difference. the first is consumer as you say. we have people every day coming to us to ask information we will search youtube, maps, fitbed is a more personalized insight. the second bucket is care givers, we're still working on tools like care studio that give information at the bedside a physician, you want to have fought all that time hunting in the electronic health record, but spending more time looking at your patient and being human. we have cloud tools like you mentioned with blue cross. the third bucket is context. where people live, learn, work, play, the social determ nants of health that drive health 80% we're thinking consumer first, care giver second, the community

context third. our work then is working with partners to broaden the ways that we can come to the table. ma io is a great example they have asked for diagnosis, head and neck cancer and better treatment. so we can leverage ai and cloud tools. they want to message to patients they want to take advantage of youtube, when we go to partners, it turns out they have all of those things we are learning in, an all of these three areas. >> you are leaning into the private sector, you were a part of the director of the office of national coordinator for health i.t. i wonder if you were on the private sector side whether have you concerns about just the regulatory environment and whether that is making it harder for technology companies to really disrupt the system? >> you know, i where i to my world here at google my experience practicing medicine my experience in public health and service, and my experience in the regulatory environment.

i think it really helps me think about the work we are doing. i can get excited about all the ways tech can help and healthcare i think we also have to be respect. of people's privacy. we want to weave that into all the work we do we want to be respectful of the idea that digital can drive equity if we're not intentional about it, it can exacerbate disparity. so equity is the values that we have but this notion of really thinking about is the regulatory environment ready for some of the innovations? i'll tell you, i think it is they've do you know lot of deep work in this country to see that we are building an environment where consumers should have access to their health data. >> it's still difficult. even as the last administration continued along the same line, that you had set up in the obama administration. >> we did. every iteration of making it easier technologically for people to access their data. it's important for people to know that the technology enables

it i think you see some great examples of how health systems are able bring that together, increasingly help plan we have to make sure the business sector the healthcare sector explains and understands they can share that to have more control over their health. >> you think it will be easier >> absolutely. the next few years, the rules are beginning to take effect and health plans and health systems will need to aggregate people's information around we want to be as helpful as we can >> darren desalvo, thank you so much for joining us. joe, accepting it back to you. >> ber that thank you for that still to come, the fda allowing, planning to allow americans to mix and match covid-19 boosters. we will talk about the news with dr. patel. that's coming up next. amc network is workening on a new strategy, the interim ceo joins us for the latest.

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fallout from the covid vaccine mandates walk state university has fired a head football coach and four of his assistants at wsu and it wasn't, i think there are like three in one they're not doing that well anyway. >> that's not it after they refused to comply with the state covid vaccine mandate, he highest paid state employee in washington with an annual salary of more than $3 million. they say he wouldn't get vaccinated but had declined for weeks to really say why when he was repeatedly ask if university said he would be fired for cause, because he was unable to meet the requirements in his contract.

mean mean,time, allison williams is leaving the espn they are trying to have a second child. she said she wasn't ethically and morally in line with the vaccine mandate and overall four and three, becky, walk, three and two in the conference so they're behind oregon and oregon state. if you were wondering. it feels like o and 6. >> look if you lay down rules, employees don't go along with it it has to be enforced all the way up honestly, i have to say, at least it's not something only being forced on lower-level employees, if you make a certain amount, you don't get to follow the rules. we require this as a requirement for working here and if you choose not to, that's your your

choice >> that's pain , though >> kyrie, you saw, he is leaving on the table over 10 million. >> they are paying him an enormous amount of moen to stay at home. you had that deal for a while. but you were on the air. >> working >> three straight, washington state. >> yes look, it's going to be painful for the organization if he's taking four atlantas with him, too. you are talking about some significant lot of the program tant so they are kind of doubling down maybe it was a game of stricken. you thought, there was no way they'd get rid of all of us. >> you will vote, right? >> what's that >> you will vote, there is a provision there to allow betting on in-state teams. >> you trying to buy my vote

>> i am, i am trying to say i have been unable to vote on rutgers. >> i don't want rutgers, are you the kiss of death. any time you like goes down. please, stay away. i will vote no, you sealed my vote thank you. >> fine. i thought i could get you on my side. >> no way. we don't want you as a fan, thank you. the fda is planning to allow americans to mix and match covid boosters receiving a different booster shot than the vaccine. the act won't edmonton one over another and might use the same as a booster when possible is preferable the official word could come as soon as this week or next week, maybe the boosters will be rolled out joining us is dr. evita patel, a non-resident follow at the brookings institution, also a primary care physician in washington, d.c. she served in the obama white house as director of policy and, doctor, again, we come to you

with some confusion about what the rules are. people kind of look at this and say, okay, what should i take away from this and the honest conversations we have been on the air is it a good idea to mix and match would you rather get the mrna if you take the j&j, would you like to get the cross benefits of mrna i think there are a lot of questions people still have around this. >> leckey, i think these are the questions the fda will have to thread carefully when they issue an emergency authorization in the language you point out so a up can him things are clear. if are you a johnson&johnson recipient, you have benefitted from an mrna vaccine that much is clear the best matchup was j&j and moderna. keep in mind, that was a full dose of moderna. what they haved for is a half dose one would say j&j with an mrna

gives you the best outcome the mix and match studies were small. a little over 400 patients across the board so we don't want to extrapolate too much from it. i would say the ability to have mix and match as an option is certainly something that makes it easier for me and we are getting booster confusion, getting somebody in the door when they need it. here's where i think the real confusion has been a lie the recipients will be bound by the high risk conditions and limited to 65 and older. but as you might recall, the fda advisory committee struck a serious doan tone when they said a all j&j recipients must get effectively a second shot two months or later. so i think j&j recipients are in a different category and the moderna and pfizer ones, if you stick with the same one fine that's when the agency will as you mentioned, if you need to mix and match, that's fine, too.

moderna, mrna and j&j wasn't necessarily more beneficial. so i wouldn't necessarily go out of your way to look for that i still have concerns about the safety profile, given that one dose j&j, rare occurrences in women especially under the age of 50 with rare clots. it will be something, it's the j&j original recipients we are discussing the benefit >> so look, we all say, you want to follow the science. the problem is, there is not a lot of science to follow and reasonable scientists are coming to different conclusions than reasonable science at the authorities in other countries where they are saying you should get a booster shot, even if are you under the age of 65. how do you follow the science when there is so little science and almost people can walk away with disc opinions based on the designs they do see?

-- based on the science they do see? >> i think we all need boosters. i think it's a question of when. let's put away the global supply those are two issues, put aside the noble equity issue to your point, becky, the science is very clear, israeli's data, looking at the uk data, one of the reasons we think the uk has the decline in delta and this plateau had a lot to to with waning immunity in their population so they had astrazeneca. it wasn't as effective as mrna vaccines, still, immunity decreases over time. so i think that for a lot of reasons cluck legal ones, we will follow the science around boosters if you will notice, becky, these emergency authorizations for pfizer and what i expect will come out from moderna and j&j give doctors like me an incredible ridge i'd set of conditions, in people age 16 to 64

obesity, for example, is a condition. so i think there is flexibility and latitude for people of all ages above 18 to talk to their the especially if they're concerned. especially as we go into households, thanksgiving and holidays, where you might have that immuno-compromised adult in your household, making your booster very relevant for their health. >> doctor, two questions for you, one is to put a fine point on the mix and match program that you are talking about we have been having this conversation in the 6:00 hour and earlier in the 7:00 hour the idea is if you are taking the j&j, the one shot j&j. clearly you need to be taking it seems like either pfizer or, betteriest, moderna based on the data but just to clarify, those who have taken the pfizer or moderna when they think about the booster, you would not be taking necessarily a j&j booster. >> right

and there are several reasons for that, andrew, just, number one, i do think if you look at the data, you will see that especially, for example, moderna recipient that you started with moderna, it's still incredibly effective to stick with that mrna category and with that mate na and pfizer set, i'm bringing up the fact if we didn't have enough in that population, it wasn't powered to necessarily look for some of the safety signals. they didn't see anything, small population and i just don't want to go back to those dark days of j&j in the initial weeks we start to pause and see the clinical guidance around j&j, to warn people, especially about the risks. they still apply in a booster setting. so those are all reasons, mrna, stick with the category, j&j, i would advocate the mrna. >> here's writ gets complicated. we have business leaders, ceos,

watching us this morning >> many of whom have mandated the vaccine at their company once boosters are approved, at what point would you recommend that they mandate the booster, not just the original vaccine but the booster recognizing that it appears that the diminishing efficacy of the original vaccine is real? >> yes andrew, i also talked to some of these small and large business owners and my advice to them is the same do not start to count a booster a as part of a mandated series for return to employment criteria simply because of what becky and i were discussing, there are criteria all people are not eligible. you do not want to create a strange incentives as employers start to put into near pass cards a requirement timed from that data, the second

dose it could be that people are not eligible for that dose i do think until we see broader approval and broader recommendation for any eligible adult. which i think we will get to, it will take several months it feels we rhea snail's pace in other countries. we will get there. the question for employers is whether they will have those to count. we'll save that for another day. >> great to see you. >> coming up, amc networks interim ceo on the strategy to add extreme services, disney and peacock the toughest competitors. take a look at walmart, goldman sachs adding a buy-rated stock. they still have one.

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the dow up 162 points nasdaq with an open hire as well. the s&p 500 looking to open about 22 points higher remember here's what's leading the dow higher travelers up 3%. walmart is getting a boost before the break, they added to goldman america's conviction buy list another big day for the firm it's now up about 8% just in the past week. >> right after this, coming up streaming company amc is looking to expand its portfolio of products the interim ceo will talk about the seangtrmi strategy and much more strategy and much more "squawk box" will be right back.

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...delegating? oh, good one. move your xfinity services without breaking a sweat. xfinity makes moving easy. go online to transfer your services in about a minute. get started today. welcome back to "squawk. streaming services are if an all out brawl with disney and netflix fighting for subscribers. our next guest is fighting on brigg linear content to the space. the interim ceo matt blank, it's good to see you. you have a new role? congratulations, it's been a while. it's been a minute as the kids say. let's talk about in particular what you are trying to do.

we spent a lot of time talking about netflix and disney, but where does the linear world fit in this streaming world? >> look, the linear world is certainly from an amc standpoint a pretty strong business we are having a great year but we know what the future is the future is streaming. and, frankly, the linear world gives us an opportunity to produce a tremendous amount of programing in a revenue-rich environment, which will then inform our entry and growth in the streaming business and, you know, as we know, we have been in this business for a short period of time, but i feel very strongly about the opportunities for the future. >> man, i don't need to tell you, because all the headlines say it, is amc networks for sale that is always the question. how do you think about that, though, in the context of a streaming universe >> well, no, you know, i'm here

to do one thing, that's build shareholder value. we will do that in several ways. we are increasing our production of proprietary content i think one of the myths is we don't own any content. in fact, we have 6,000 episodes of serious content, something close to 1,500 movies, other content and very valuable licenses around the world. so you know i think we have to do our story of telling the public the most important public will be the ultimate consumer of our streaming services. >> how do you think about costs right now when it comes to producing new content, new programing obviously, there is an all-out brawl between netflix and disney, apple and others, some seem to be willing to effectively overway for conten to get people on their streamers? >> you know, we're not going to do that. we think we have the ability to

play our own game. people talk about the end of curation i don't believe that i think we are curateing a wide variety of networks here, a targeted consumer and we've had the ability to control those costs we can't compete on a cost basis with netflix or hbo max or prime, so we'll continue to do our thichlth we don't know where our next break will come we are seeing that in the show where was that show a month ago? where did it come from it could have been amc or anybody that found that amazing cul culture-clappinging show we're going to keep doing that >> thank you that the mark for tv right now rational? is it irrational we just had an analyst come in yesterday who were suggesting that actually when you look at disney and the growth they were

having, it's going to get harder, a lot harder to continue to grow and make it harder for netflix to grow and the like. >> i think we have an opportunity in this situation. we play the game of lost swann they're playing in the law of big numbers. netflix will report today and they'll say they grew exmillions of subs in the quarter tomorrow will you have all these people on the show saying how everybody is rurting netflix they only grew 3 million subs or 4 million subs we're not playing that game. we've given some guidance that over the next couple of years, we will get the 20-to-25 million subs we think we can do that and we're going to do it way amc was built before, choosing great target audiences. >> you mentioned squid games one of the details that's come out over the past week is reporting from bloomberg that, in fact, it apearce netflix was trying to prevent from being

published. internal metrix suggest they value that program something 900 million in terms of increased value to the franchise, to the platform do those numbers make sense to you? what did you think when you saw that >> you know, look in a premium subscription environment that's that was the challenge hbo and show time had for years. how do you come up with a number that value was a given show is worth to a network what was the sopranos worth to hbo? what was homeland worth to showtime i'm not really sure i understand the metrix that netflix is using. that's a huge company and a huge number that's been put out there. we don't usually see any numbers of that sort we don't know how many squid games, to the world of squid games, what will be coming next? i don't imagine they will play

that out for years and years and years. >> strategically, in terms of the content library you do have, how much value will you consider extracting by way of sale to other platforms like a netflix, a paramount plus, a peacock and the like and how much of it is going to be about protecting, if you will and creating your own streaming platforms with their own subscribers? >> i think like others, that's probably over in terms of distributing to those other platforms. we've got to build these amc resources with our own pro piretary programing. we got to keep that value in-house that's what we're intending to go going order >> matt blank, always good to see you. >> you bet >> when we come back, kevin o'leary and john hill brian will talk president biden's tax plan and whether corporation pay

their fair share. >> netflix reporting we will get you up to speed. netflix shares this morning up 1.53 stay tuned you are watching sfraux and this is cnbc. ff everything you've seen me do was made possible by what you don't see.

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ff good morning here comes the earnings. futures are up as results pour in from three dow components and we get set for the first fang stock to report. and bitcoin is also gaining. it's closing in on the all time high as we get said for what is expectedto be the fairs trade of the futures based etf product this morning it's a milestone the crypto industry has been waiting for. and hot energy demand in an esg world as oil, gas and coal prices sore world wide, environmental principles about to vanish in the wivenltd we speak with a top strategist as the final hour of "squawk box"

begins right now good morning, welcome to "squawk box" in our cnbc live from the nasdaq market site from time's square u.s. futures are up 178 points, treasure yields, they've moved back to 1.6 and are stalled there crude oil yesterday bti hat the liest level and check out commodities. we talked about these, natural gaz yet fell nearly 8%, that brings the october decline to about 15%. in hind's sight, i wish i had

asked about the you can whating dead it's how long? my requests was walking dead with a squid game component, so that the contestants, you don't need new contestants, because even though they die, they're still. >> they come back. >> there they are. >> have you watched it streaming? >> i saw the first episode. >> you hooked? >> you are not >> i will try the second i didn't like the first. >> subtitles, what it was conundrum for you? >> watch the first episode you will see >> people moving forward in this, getting new, just, you know head games broken off one by one >> gratuitous. >> roman emperor. >> we are paying close attention to the crypto currency, closing in on it's all-time high of $65,000. rye now it's above $62, 62.067

some of the bullishness extends from the extended kickoff of the trading of the first american bitcoin futures etf starts today on the new york stock exchange it is still expected to draw more investors into the crypto world. that's just seen a steady run-up the sec out with a long-awaited report in mean stocks earlier this year. one of the take aways is retail traders, say that five times fast, quickly bidding up game size, share price tested the markets. but overall operations remained sound. the report also found it was mainly positive sentiment around game stock that led to its shared of price spikinging, not a short squeeze, betting against the video game company it cautioned that online broke rajs could be looking future

video games, points, leader boards, yesterday we had comments on the so-called gamification of trading from a prominent robinhood shareholder. >> i know a lot of people are certain e concerned about the gamification that the robinhoods of the world represent i'm not worried at all about that i think what happened during the after the tech and telecom bust and the '09 meltdown, the fear and rick aversion that permeated the markets took the joy out of the markets and took the creativity and the imagination now it's coming back i think it's starting with the millennial's they are excited. >> game information of trading the sec's report will be on the table when they join "squawk box" in the street in the next hour we'll hear what he thinks about those comments from kathy wood, who again is an investor in

robinhood, finally some earnings news from this morning johnson&johnson, beat on profits and raised the full year outlook for the company. the company's cfo joined us a little earlier in the show he wouldn't comment stancively americans may get different booster shots than the ones they initially received he praised j&j's shot for it effectiveness. >> the booster will only build upon the 94% efficacy that we vice president established because the data that was seen last week as well as what i would say is best in class durability a. beers should only help that going forward. >> shares of johnson and and johnson were higher, they've since turned down, by a half a percent annual point a news alert on possible covid strooemt treatment. meg tirrell joins us with the details on that. hey, meg. >> reporter: hey, becky, this is

another covid anti-viral drug that would complete with the peer review, a disappointing news out this morning partnered with roche roche roach on this drug they were halted for a short period of time now they're down 75%. this is a company with about a three-and-a-half week mark cap before this move this morning. now, here's what happened. they were testing a covid antiviral i viral drug similar to merck's new peer review they found it missed its primary coal of reduce ining the sars vs they enrolled all comers and said two-thirds of the people were essentially young, healthy people with conditions to progressing to severe covid. they said among high risk they seen a reduction versus a placebo with the people that got the drug they are pubing their expected

phase 3 results back to the second half of 20 too. they're financial to use these results to retool the plan for that trial so, you can see that merck this morning is actually rising, it's up 3.5 or 3% in the pre market they have showed to work in a phase 3 trial notably. merck envold only high risk patients and they didn't include anybody vaccinated they said they did have vaccinated people in their study. so we will be parsing out overall for the anti-viral space. it's a setback, obviously, for partner roche. >> mech, that's so interesting so this was a similar drug, but the test that they set up was different. the trial was different and maybe not able to leap the hurds because you were mixing it up with people that won't have a bad reaction anyway. it just speaks volumes about what you have to do to get a drug approved by the fda to fet

something out there. this will set them back. it's not necessarily that the drug doesn't work in the targeting population, right? >> yeah. it's really unclear right now. these drugs are different. one of the things that i see and emphasize here is the safety profile of this drug it's not mustogenic. it has been a concern for birth defect and cancer risk merck looked at this and says the short duration that those are not high rick, those will bed a juddtated in late november right no this study, design, does not work for roche. around merck notably had narrowed its study designed to high rick patient, it has seen it was useful to do that what you say, it's not something that gives the risk of birth defects, what's different between the two drugs in that respect? >> so, yeah, so i don't

understand the design of the drug well enough to explain it contains a mustogenic effects. there were concerns about it merck has vetted this very thoroughly, it will be vetted further and it's notable you only get the drug a few days so it's not a huge exposure to this but it is a different in the side effect profiles of these drugs. >> meaning they wouldn't recommend pregnant women take the drug >> it's possible they were excluded very strictly from the merck phase 3 trial and so that will all need to be something that gets looked at through the evaluation process. >> all right mech, thank you. thanks for the quick update. >> thanks. >> meantime, i want to get back to the broader markets the futures are improving. bitcoin moving as well, mr. santoli, mike santoli has been looking at the health of the american consumer amidst all these earnings reports we have

been getting. >> it's been a consistent positive message even when the market was having a little struggles. it was not saying the consumer was in pad shape s&p 500 making further progress back authorize those highs raised in early september. 45, 45 was the inter-day high a. little below that on a closing basis. so the market making its case that it did have a proper shakeout arc reset everyone's expectation went down, earnings forecast got more conservative along the way so you can't say in the clear, but the market is definitely much more black in balance very much a clothe-led move yesterday. keep in mind, it's the nasdaq stock that has this punishable above their weight yesterday take a look at the consumer staples area this is etfs that equal weight those sectors. it takes away the outsized effect of things like tesla, for example, and so, it's been, you know, participanty much nudge

toward new highs, sideways for months look at the big spread the the market was concerned about consumer spending power and stress is building up, you would see consumer staples doing better relative to discretionary. that's a reassureing mark. look at the paths of ned flicks shares versus did my this is dated from march 2020. keep in mind, before this, disney crashed, of course, the theme park business. this is a rebound move the white line you can see it's built up this massive premium. people got very excited about how much you should pay for the disney-plus subscribers, netflix comes right back they did embed a netflix multiple obviously, to netflix. you see them coming together netflix a more expensive stock if you look at it based on cash

flow and earnings, coming into far difrom that covid crash low. >> mike, here's the question, i know are you not supposed to project out, if we're going to look at that start we looked at it 12 months from now, what diengt looks like? >> you know. >> do they cross >> what i will say is netflix now has the somewhat better technical profile. what's interesting about diz incy there is still billions of dollars in operating income. that i have a theme park that are absent right now so it has this continued kind of potential energy of the reopening behind it. whereas net flivenlths accident feel people quickly got newly excited about the netflix story even though they to have been doing the same you have to be projected based on valuations on cash flows for the years to come. so i think maybe they're going to continue to trade off in terms of fave for the next who

knows indefinitely >> i'm just waiting for tiring king 2 mike, thank you. coming up, are >> that's a couple more epis episodes >> i don't know. i'm trying think of the tiger squid games combo. coming up, president biden, all the democrats jones'ing. to hike corporate tax rates. they have a strong desire or craving. what if we told you that u.s. corporations that never paid more we got some new da that you want to hear. maybe not. stay tuned you are watching "squawk box" on cnbc >>

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let's keep making a differene together. it's moving day. and while her friends are doing the heavy lifting, jess is busy moving her xfinity internet and tv services. it only takes about a minute. wait, a minute? but what have you been doing for the last two hours? ...delegating? oh, good one. move your xfinity services without breaking a sweat. xfinity makes moving easy. go online to transfer your services in about a minute. get started today. . welcome back to "squawk box," everybody.

this is cnbc you see right now the dow futures are indicated up about 172 points johnson&johnson had been higher earlier when it first reported earnings procter & gamble was up, too, the dow was up triple digits before we heard from those two dow components >> we got new data showing companies paid a record amount of taxez last year we got more on all of this from robert frank robert >> good morning, andrew. the corporate tax revenue hitting an all-time high that according to bucket office. corporate income tax receipts hitting $370 billion that's in the 2021 fiscal year ended september 30th that was up 71% or i should say 75% over last year and up 61% in 2019 it was higher in the corporate tax cuts it brought it down from 35 to

21%. you had lower rates and more ref no. as a share of gdp, corporate taxes are high tore 1.63%. the reason for high ev rer news? record corporate profits many say this won't be repeatable since the surge in profits followed the shutdown of the pandemic, but if you look at revenue from the wealth years income tax revenue up 28%. expect it to top $2 trillion say much was from capital gains with the wealthy catching in on gains from stocks and other assets if you look at total federal taxes paid, in the fiscal year, they reached an all-time high in nominal terms of more than $4 trillion that was the highest share of gdp in taxes paid in almost 20 years, andrew. >> robert. was there any sense that we talk about the capital gains issue

and people selling stock that that was done as a function of an expectation that we would higher tax rates >> it could be we don't know why people sochld certainly every time in history, have you market run-ups like we've had in 2020 after march and certainly 2021, you will see a huge increase in capital gains. that happens in almost every market boom. so it's unclear whether how much of that was in anticipation of gains. of course, we know that some people sold anticipating games, economy private companies they were planning to sell, but so far this year, we've also seen strong gains and many people say you are probably too late if you were selling, taking a gain in 2021. >> robert before i let you go, what did the ceo expect? i say it's interesting to think about this, you have the ceo and others projecting out, what revenue will we get?

where will you be on the bug and the like were they planning and expecting for this >> all of the financial predictions, whether you look on the state level or federal level way undershot on tax revenue if you look at new york state, d.c., if you look at any tax tax prognosticator, they undershot revenue. we thought the economy would take a long time to recover. we didn't expect asset prices to go where they are. so the ccbo, everyone expected lower taxes. >> thank you let's talk more. i am joined by investor capitalist kevin o'leary, also joining us, operation hope founder and ceo john hope brian. he is hosting the 8th annual hope noble forum in atlanta over the next three days, which atlanta is famous or other things going on down there, the hot, hot braves. we'll see what happens concern

and john i want to start with you, john, ask you whether in a moment of weakness, john do you have think, wow every single government job need to be paid for by taxes we levy on private company employees we want as many private companies employees as we can paying taxes did it over occur to you we should keep tax as low as we can on those entities so they can innovate, do research and development, hire people and compete globally aren't these all good things, john why would you sax from what, why tax them higher? >> i appreciate you. you are right, you are partially wrong. i understand what you are sayingb.

you said all these government jovenl jobs 88% of jobs in market are government jobs. local are 12%. it is enprepreneurship the government the a bit of venture capitalists. you need roads to drive on for those companies, bridges to cross, you need workers who are not incompetent or unlittler intelligent intelligent. they are trained for the future, people at the bottom that can come to the top, like this founder of walmart that came from nothing you can't do that without the gort using taxes at the bottom of the pyramid my poor residents only to stay rich that we're at odds with each shots a false narrative. we will not play that game today as smart or as cute as it might sound. we are making smart investments. by the way, the numbers you

heard, my friend, joe, those numbers from robert. that's because the government and wall street kept asset prices high. and corporate because we're all at home zooming and ordering stuff. >> kevin, i want to get to you i always talk about fair share i don't know if he has a calculation. i don't know how you arrive at it what the fair number is that would be ret toreic am question kevin, aunt this when we see different states on a relative basis go much higher than their peers we see companies move out of the state. the higher taxes, you don't get revenues from that some are leaving why doesn't that happen to a whole country? oh, pate a wrnths it has, in the past >> it's happening rate now, it's happening between new york and

florida and new york, texas, california and texas, you saw tesla move its headquarters out of california you can't do business in california anymore i want to go back to something john said, the government is a terrible venture capitalist. the last place you want to put a dollar, there is no accountability i am sure i am right, a third of it gets wasted i want to talk about policy not politics what happens here, these record tax revenues are a result of making america competitive in its tax rate corporately you just heard the ceo talk about being uncomplettive in a corporate tax environment. it really stops people from investing in america right now as we speak, joe, bill gates is sitting with boris the prime minister of england. why? not no see the change of the guard. he wants bill's money.

he wants bill to invest in a competitive england. the biden proposals take the middle of the g-20 to the highest ever we would be the number one taxed jurisdiction but the insanity of that is was because at the same time you are raising personal taxes of the people i said this like a mantra, in new york, in massachusetts, in california andother states lik new jersey, they'd be the highest taxed people on earth. why would do you that to an economy that just generated the most tax revenue in history as a percentage of the gdp in the last 20 years? these are numbers irrefutably show you when you give corporations and the american entrepreneur and the american individual and the american shawl business person a cancel to compete, that i come out on top. so does the government we shouldn't touch anything and one last thought, yellen was running around the country and all around the world, just a couple of months ago, talking

about a 15% tax rate well, that's where i want to go, america should go from 21 to 15. then we can compete and get more tax revenue. this is the end of the story for considering killing us with tax rates that put us at the top of the list what a thunl mistake that would be. >> that was a huge number robert frank was talking about, wow, couldn't be spend it a little better what if he means tested the lyons share, what if we mean-tested that and gave you all of that money, you and others that have great idea of where to spend it. we kept it where it is there is plenty of money there the government had no idea how to spend it successfully or has a lot of trouble spending it effectively. >> so, first of all, i want to give my man kevin tea versus

coffee she far too lovely to do this angry. look the government created him, not literally, the fed window, all this fed investment, allowed him to be who he s. i'm a fed capitalist all the engines were everything. i believe like you, kevin, that states are the shooting themselves in the foot i agree some of these tax are wrong-headed joe i would like means-tested strategy there are some ways, by the way, the government that you talked about created us and the biggest economy in the world, i lould would like to invest and target worker retraining for the skills only 5% of engineers are black that's a problem the dropout rate for poor whites and black students is five times

everybody else why they should raise 41%? the penalties are too high all these things need to be targeted and smartly done. we do need infrastructure investment because we're 13th in the world so all that stuff kevin just said, you rearrange the titanic. if we don't think of things in the next decade, the roads are going to the crapper the ferrari will be lost in a pothole. >> john, the current, kevin's point was the current tax regime is what created these record profits. why not take that huge amount of money we were just talking about and use it effectively why would you want to mess with that so next year you might have lower overall revenue that feel about about how you are redistributing it in that's always the mantra. >> have you forgot there was a

pandemic last year the government powered 7 trillion into the economy. both which was effective i'm repeating myself now whcausd assets to go up. the government did stimulate that's one of the reasons you are seeing record profits at the corporate level. not the tax rate, with all due respect. i think some of this stuff is smart. yellen, secretary yell isn't talking about a global tax policy for all countries i think it's 10% that smart all right we should all pay our fair share nor the future of this country myself included. you can not pull something from nothing. and america is the largest economy in the world but we're at war, joe. china is not fighting fair russia wants to be us. they're not fighting fair. >> kevin you know how progressive the u.s. tax system

s. who is not paying their fair share? i go es the billionaires average i think high income pooebl people are 50 or 66% on the east coast >> once you start taking more than 50% from an individual they start to contort their practices. they move from where they're living they try and figure out a way. it's unfair to do that now you have that happening in many states remember the president called out to all of these private business last week to start investing in infrastructure and in some way help the play then they. let's check the chip shortage. that's multi-billion investments. the u.s. produces 25% on earth you want that money back, you need a competitive tax rate to attract capital and ask bill gates to come home invest here in the united states he'll do that win make it competitive. all we have to do is compete

you don't have to be the lowest. it's happening at the individual level and the corporate level. we don't want to make and break at the same time the economy is on fire because of great policy. my point is, don't change it this is the golden goose leave it alone let's proceed forward. i'm not angry. i'm happy. i don't want anything bad to happen to us what i hear are dark flouclouds back policy that will damage america in perpetuity. >> they told me to wrap, don, i feel like that wouldn't be fair. you want to quickly have the last word? >> i keep hearing that word, fair god for bid if i'm not fair? >> we are exactly where we were after world war 26789 we were higher than in gdp it tack 1945 by '50, the tax rate had

colorado we got to come down the gdp is coming down to to revenue. we're at war this is an economic war. we have got to reinvest at the bottom of the pyramid to get the return that kevin wants to sustain. i do agree some states are overtaxing >> okay. that's good. >> look at that. >> all right thanks, kevin o'leary. we'll do this again. no doubt >> look. >> good luck with the big event, jon. >> we are just now getting new housing data rick san telly is standing by. the numbers, please >> yes, becky a. bit of a mix. we are expecting a number of 1.6 million seasonally an leads units. we end up with 1,55,000. a slight revision that puts it down a little over 1.5%.

if we look at permits, also a miss expecting a number close to 1.7 million. we ended up close to 1.6 1 million 589,000, a settled down revision on last month. but that put it down on permits. determines is what we were counting on. we know there was a back lolg, there are issues, whether it's labor or materials and price up what close to 20% year over year in permits a dump in terms of start, we know there are issues between single family and multi-family in the end, maybe interest rates, which haven't crept up could be a part of the picture still historically low, short maturities are coming down if yield, up in price a bit wie do know we touched 43, 44 basis points that was close to a 20-month

high, basically around the beginning of covid whereas the longer maturitys, a different scenario, so much of the flattening has been done on the long end, now we will see if we get steeping. maybe short rates have gotten ahead of themselves, i can't expect the fed will be tune iting aggressively in the future, inflation has gone from transitory to a big piece of gum on our shoes it's an area we want to keep up with 30-year bond seem to be the most aggressive of late theng anything that includes the third-year is more inclined to be moving from steepening more towards a flattening mode. we want to pay attention to the yen. to the three-year low against the dollar the dollar the a three-week low against all urine mean currencies back to you. >> let's hope inflation is gum on the bottom of our shoes, not

something much smellier that we stepped in along the way >> i tell you what, no matter how we slice it, inflation will be hotter for locker the for longer there are certain issues that won't reverse themselves down. we see big general moves in commodities. some are come downs, i think energy i think at the end of the day, the fed's biggest problem is going to be how much higher interest rates can go with how the fed fits into that process >> a lot of questions to be answered steve leech e leishman, what did you think of the numbers >> i thought they were okay. the big deline or miss was in the multi-family area. that had roktd up a bit. it came back to 4.75 fp i got this right, single

ma'amly starts were pretty much in line with august. so it was a change in multi-family have you this 27% decline in the northeast for starts and 6% decline in the south we had hurricane ida moving through that month today there might be a reason for what's going on, when it came to permits, i don't know if that had an effect. the other thing you have to ask yourself to the extent this number is limited or will be limited with supply shortages. the builder doesn't have to go get the workers or materials to build their homes. on the feds, rick for sure alluded to this, to the probabilities, becky, i am looking at about a 50% probability that judgment rate hike, what's happening is that i think people are building in a little hedge on what the possibly is. how the fed might respond to

persisted inflation. you have a story where it's going to last longer and whether once the fed gets done with redugs its purchases, that it affects rate hikes in the summer of 2022. >> let me ask you of another situation of odds, that has to do with fed chair j powell, whether he will be renominated predicted has been showing a steep dough klein in their odds on it. it dropped no 64% from 79% the day before the and from the 90s a week, a week and a half ago. this came as there was a story reported from the american prospect talking about some of j. howl's own trading somewhere between 1 and $500 million as this continues to drip out, what do you hear what do you think? because that may be a key question to the marks? who will be the fed chair? >> i want to answer that two kay

ways the first question is an interesting one, will he be renominated? i want to answer the second question, which is about the stories, themselves. i have reported two or three of these stories because i think they are legitimate. it looks like a whole rung of other stories that i don't know quite to make about the one with richard collarida and j. powell the ones we reported about the trance agencies made by kaplan and rosengrant and powell who had mitted this himself, held assets before the feds started buying those assets. the questions around that the trading, i'm having trouble finding the gain or rational behind those being controversial issues you are right, all of this is adding up. i think there is a progressive part of the democratic party

that wants to see someone else in that job. i think the chances of being renominated are reduced. i still think he's the odds on favorite. >> thank you when we come back, we will be talking about the global run-up in energy prices. what you need to know for your portfolio and what it all means to the environmental component of esg e ay tuned aryou watching "squawk box." this is cnbc this is cnbc

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, welcome back to "squawk. we want to take a look at what to expect later today from netflix after the bell julia boorstin joins us with

more julia. >> reporter: good morning, andrew the big question for netflix is whether it can react sell rate user growth after last quarter, it stopped at a weaker than expected subscriber guidance the numbers to watch are two there is 3.5 million that's how many subscriber additions the company forecast it would add in the fourth quarter. 8.5 million is the street's guidance for fourth quarter subscriber additions analyst are watching revenues to grow 16% in earnings per share the stock is about 18% year-to-date after about 20% just in the past three months, bolstered by optimism. quit game set a record as the post-watched show ever we will be looking for guidance on what's next for the video game business afternetflix watched for commentary on the outage over dave chappelle's

comedy special it prompted a virtual walkout. i did interview the ce oh in los angeles i didn't push him for exceptionary how he feels is an appropriate line of content to cross, he would not answer one bit. >> before you go, are you expecting them to comment on that later today >> i was shocked reed hastings went on stage with me and wouldn't competent i wouldn't be surprised after that experience if they didn't make comment ted seranos has gone out and made the decision to put this on air. i think he will let his co-ceo hand him that one. but it will be -- i was

surprised hastings was on stage for 45 minutes and wouldn't weigh in one bit the one thing he was talking about education. one thing he said, though, andrew, it's easier too challenge dpiz my than to perform the education system that was the best i got out of him. >> julia bars stin, wewill be watching you when earnings cross and get tack reaction. thank you. coming up, can companies still afford to prioritize esg principles during an energy skwiez like the current one. we -- energy squeeze like the current one? stay tuned are you watching "squawk box" on cnbc my son romeo has sought counsel with some strategic advisors. they suggest that we marry our fortunes with...the capulets.

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who will sign back in at 9 am tomorrow morning. orrrr... you could find the answer right now in slack. and give steve a break. slack. where the future works. welcome back i want to get down to the new york stock exchange, where our good friend jim cramer joins us. i read your e-mails now. i feel i am a part of the investing club i have a couple of questions,

maybe a preview of what i will expect in my inbox soon. here's this. last night you talked about apple. you said own but don't trade apple. >> that's right. >> that fascinated me. why are you saying that? >> because i think this will be a decent launch. i think they've got this thing that they have not revealed yet that i am trying to get them to reveal, which is the lifetime value of a customer. we got people buying new phones, old phones, whatever, you end up with an ecosystem of the best technology, i know people are saying, listen, the number is too highs, people are saying they will navigate the supply shortages. in general, there was a big tech move yesterday and apple was a part of it it seems new money is nov moving in take a look at facebook, could they have done anything more wrong? these stocks are doing better. we have stocks doing better. i just did what i am looking at. i talk about j&j

it wasn't enough it's still good enough i don't know, i'm seeing a lot of stuff that tells me, we're kind of, we got a lot of buyers, a lot. >> we have next flicks this afternoon, what are you expecting? >> squid, it's still huge and they can talk about, and raise price right now. i think that what i'm thinking about is hbo max and whether that can deliver something and the at&t deal is a morass. >> i'm not sure where to land but i have another one for you before we go bitcoin. you suggested i think with the etf that's about to launch that we would see a run-up and then a selloff. are you still there? >> yeah. sold a tenth of ethereum yesterday and five minutes ago. >> a second tenth if you will? >> yes does anybody not know that

there's an etf i don't want to hurt mike's feelings there are levels where you need to sell. the orthodoxy says that selling is - >> paper hands paper hands! that's what they'll start calling you. >> you know what they can call me a lot of bad things but they have ruined the column and no longer fun my kids won't look at it which is bad. >> we'll see you in a couple minutes. >> do you know they wrecked twitter? >> don't i know it >> doesn't want to do anything about it a great thing about twitter is care how many users. not how many people they drive out like you and me and joe. >> which is boater twitter or facebook? or worse >> instagram is very nice. >> we got to go. we'll see you in the next hour

very soon. everybody should get on the cnbc investing club bandwagon sign up for it right now shoot the phone at thecode on the screen as we speak coal, natural gas and oil and gasoline prices shot up recently the last one particularly squeezing americans' pocketbooks right now particularly hard. we are about to head into the winter right now we want to talk about the impact the higher energy prices have on the broader market and may say about esg investing. joining us is thomas marqetty. what would you say what are the reason or reasons that prices skyrocketed recently >> thank you appreciate you having me on. on one side it's complicated and the other side is not. we have seen a surge in demand underdevelopment of fossil

fuels. a point that investors don't appreciate is likely to add duration to the commodity cycle and from one main reason is esg. you will not see the same type of cycles of the past. you think about the reopening of the global economies, the fits and starts we have had, stimulus is part of that and spurred demand opec have managed supply and how it is returned to the market but on that side it is not just opec outages like we have seen this summer, like to your point it is not just crude we have seen utilization rates at very low levels you have coal production, trade disputes with china, australia and climate on the other side you have renewables and seeing and this is global the effects are becoming increasingly

relying on the variable power source generation and depending on water poor hydro in california and china. poor wind in europe and continuing to take place we have talked about in terms of transition is the need to reduce emissions and until now a main point that's not a factor is reliability. >> it's not just reliability but cost and a thing that caught me off guard yesterday is we have been using less and less coal. u.s. energy companies moved from coal and this year for the first time in seven years they're firing the coal plants back up and in a major way first time in seven years to see an increase because coal all of a sudden looks cheaper with natural gas prices going up significantly. maybe that's an unintended

consequence while you try to move to thesal tern tifr forms of energy it won't happen business theycan't say we'll charge you 500 times what we did last year. >> i think that's absolutely right. certainly during 2019 and the covid years a lot of the industrial production based off of coal pulled down so this year we did forecast a sea of rebound in coal fired generation because you look at the export markets pay for natural gas certainly coal represents a cheaper option the problem if you take a look at coal production in the united states we are still not back to 2020 levels let alone back to 2019 levels so if you don't have coal stockpiles or rationalized the coal fired capacity you don't have a choice but to use natural gas and the international markets still offer a better price for our

domestic u.s. production and not just on coal but natural gas and the only thing that's saving us in terms of cost is that we have limited export capacity and that's helping the u.s. at this point. >> what does this mean for investors? you have the climate chang talks coming up. the administration's effort to spend more on climate change kind of hitting a head and running into joe manchin in a big way. what do you do right now as an investor >> let's be clear. a biggest headwind for the fossil fuel industry is esg. at this point what you are seeing is it's shifted from a head wind to a tail wind and when you factor that in that means there's much more higher prices and there's also going to be a need to grow. i think what people fail to realize is that a lot of commodities are required until

there's a new technology that kind of bridges the energy transition and this point we don't have a solution and been recommending and where we see value is oil and gas companies strong cash flow use discipline they've done mechanical engineering. so again they present better opportunities to this point. >> right thank you for your time today. folks, that does it for us this morning. we'll see you tomorrow morning "squawk on the street" is coming up after a quick break

good tuesday morning welcome to "squawk on the street." i'm carl with jim at the new york stock exchange. david is in los angeles for the global conference why meantime we are looking to add to four straight wins for the nasdaq futures with solid irnings and guidance from j&j. netflix tonight. bitcoin near 63k we begin with retail traders versus the short sellers a report playing down the meme madness narrative. we'll break it down with gar