finally bitcoin, real quick after this new etf, $64,389. >> i loved that conversation with paul tudor jones. >> you were so right about him. >> i wish we could have him back soon. >> gratitude every day. >> that's right. "squawk on the street" begins right now. we're riding a five-day win streak some companies -- but others like brinker and renault, with a warning. micron is making a big bet on manufacturing and r&d, $150

billion over the next ten years, including a potential new memory factory in the u.s the ceo join us? a for a minutes. facebook reportedly planning, according to one report, to change its name next week. netflix living up to its reputation, not a name you want to trade around earnings what issing controlling this market for the last year are the number of price boosts 11 price target raises, that's what controls. we do have a the only difficulty in the call was when the annual

it's ran the call and said you can name your favorite, but you could say squid, that sent everything scrambling. >> nope, nope, i like -- and then they like spanish production, some production from mexico, whatever it was, david, another tour de force call. >> what about the fourth quarter gets as good as it gets? >> i'm going to default to reed. reed made it clear, you never know which one will be the big one. they talk about 20 million for squid, but they spent a lot of money in korea, but it sounds like there's another "narcos." analysts ask tough, informed

ques questions. people should read they calls, how are the gross margins? >> i've been to follow the game, david, if you're going to comment on it. >> that's a good point >> but the analysts are stretched. >> because they're worried about the ohio teachers pension fun. it is very clear that they have

this international strategy that seg -- look, they made a movie david, humor me. they make a luxembourg movie, on from madagascar, we're all going to watch is it. >> if it's good. they always do good. bull reed liked that i called customer service at 3:00 a.m., i wanted that movie about stalin about berlin, immediately they had one. do you use artificial intelligence so many morse are scarface meets the godfather. of course it's a.i., the original a.i don't nod at me, snide, california interviews. >> what do you want me to do, when you have no idea what

you're talking about. >> say, jim, that is quite a revelation, tell me more, except i would love to hear from carl. >> you brought a lot of motion to that read, david. last night reed hastings talks into -- they own at least one movie theater. here's what he said will the netflix total experience. >> three years from now, some future "squid games" is launching with an incredible arare of interactive gaming options, all built into the service anded off-float flicks experiences, consumer products all of that coming together. disney is a bit ahead of us, but boy, are we making progress. >> first time i've heard him say

we want to be more like disney. >> there's -- reed is an amazing, humble man. he's too humble. what he hayes created is incredible once you start sending the discs back i do thing when you go over to -- the louie mcvail, the largest series from brazil brazil what does brazil produce -- >> we are well aware of their incredible reach, ability to create kept and different markets for it to have a global footprint. they're spending more than any service by far, and now i will try to bring you back to what

that means for the stock price so just wrap it up for me. >> well, sometimes it's not -- you are -- i'm surprised that you're bound by what sounds like the four walls of a spreadsheet. these tesla, this is netflix, this is amazon these are basically tan, or nat, that's north american tanker, but these are companies that sea best of breed, i'm going to give it some room, let it come down and i'm going to buy it again, because they are -- we call it law school really make me be pompous here, sui generis here dave, 142 million viewers in "squid games." i still haven't watched it yet

>> i'm surprised at that. >> i'm too busy watching "succession. maybe these services can ko exist, then? >> one of thing i love about reed he's a more than merrier guy. >> and he says he's not competing against other services, but he's competing against everything he's just competing against time, against sleep. >> yes >> that's why the stock has underperformed this year people who are in the stock market, they've had netflix, amazon, facebook, soon to be known as, i don't know, alice in wonderland

>> tronk was another option. >> that makes sense. >> how about -- >> we can have so much fun with that we could be here all day long. >> i expect another revelation that's negative. like another, you know, splash splash that's a good name. >> i like that chip suggests venetor. remember that? what was the united. >> technologies, that's available now. >> unisys? this could be the power of four, wha whatsapp, facebook, the metaverse? >> i'm thinking, how about ww warrenco at least one out of 100 is

silent. >> she's suddenly on your side >> how about warren klobuchar coe? >> well, let's get a bad piece from "wall street journal" showing there's a secret memma that zuckerberg secretly doesn't like people, he likes tranche. that has a bit of uplift, so next -- >> okay, you did do it. >> i did it. >> go on to ulta ulta was not bat david, here, thermo fisher undervalued. abbott a huge blowout.

i'm almost done. severe weather air, vaccine no-go, paypal coming back, hall burter bon -- better than expected, and boot barn. 97 to 110 for the boot barn. that made your list of things you wanted to talk about by the way, do we have a -- do we have any time for that? >> our viewers are not billions nair our viewers are trying to make some money. >> boot barn going to a whatever wherever is not -- to cowan. all right. we love cowen. >> let's talk about tudor jones. that was a great interview you can listen to him for quite some time. he's always interesting.

he has serious reservations about fed policy, saying, simply, this is not 2013 take a listen. >> if they try to fight the last war and do the taper they did in 2013, well, we're going to go ahead and ease off the pedal for the next six or eight months, well, that's just the wrong policy prescription. we're so different than 2013 2013 commodity prices were down. so to answer your question, we have to watch what this fed does. >> we always have to watch, but he's clearly not in agreement with what he expects they are doing. >> i think there's issues with the proctor goal the idea that we're starting to get more people doing better,

that there are jobs for people paying a lot, i love paul tudor jones, but rich people come on and say ultimately the poor people are hurt by inflation i think there is a moment where the average american is finally get paid what they worst >> they would then respond by real wages are not keeping up with cpi year on year. >> i think real wages are what you make of them if you go and take a job at any of the factories you're talking about, you're going to even dollar so, i think he was talking prices up 100%, i'm talking about a lot of people's wages being up, and i salute of average person >> you were talking about -- >> jay powell slams the brakes

on i'm rich -- that was another point he made. >> by people who don't have a lot of money, they're getting a chance to get unbelievable jobs. why does every rich person talk about their own inflationary woes, and saying i'm seeing people who are making 30 now, and that's what he does, sleight will charitable. there are 40 million, 50 million people that aren't just having a cheeseburger at mcdonald's, okay >> we'll listen to more of that great interview with paul tudor jones, about why new york is so important to the company when we come back, wee san to sanjay mehrotra in micron. don't go away.

strong, international demand is particularly strong. so we feel like it look like we're bottomed out and are on

the way bay. >> that's the united ceo jim, they're going to add 10% international capacity and they see corporate travel -- >> that was just a great interview. it's doing much better, remember i said they have another morass with vaccines. it's the most vaccinated united is how you go overseas, it has unbelievable routes it is clearly the one to buy now. it's shocking it's down this low. david, i know, as you did with that excellent interview with carmine disilvio people realize -- >> the business travel -- so many people will never do a road

show by traveling. >> individuals have realized the peeped has changed people's minds about life i'm no dream are on this carl, people who have never traveled are saving up to go somewhere. >> the diminution of business travel will be offset by personal travel? >> you want to go places before the die. >> that's why they call it the bucket list. >> someone told me i have to go to a clemson game. >> we'll take a break, and we'll take about micron after a short break. don't go away. ♪ feel stuck with credit card debt? ♪ move your high-interest debt to a sofi personal loan. earn $10 just for viewing your rate — and get your money right. ♪ tv: mount everest, the tallest mountain

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dow's on pace for the best month since march. we're up five days on the nasdaq and another day up today would make it the longest win streak since august of last year. opening bellom cing up in about eight minutes.

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>> announcer: the opening bell is brought to you by -- let's see, another day, another down grade from micron these analysts have decided there's nothing to this name we're very lucky we have sanjay me -- mehrotra. are you feeling they downgrades, are they something we should pay attention to whatsoever? >> i think, jim, you have to look at the underlying demand continues to increase. we're excited to share with

everybody that micron is looking at investing more than $150 billion in r&d and manufacturing in leading-edge memory globally. this is really about three things, jim. memory and storage is underlying foundational enabler in everything that's transforming or lives and business today from cloud computing to 5g phones, and the content of memory and storage continues to increase. second, memory is at the leading edge of the semiconductor manufacturing. micron is leading within that leading edge we have world et cetera best d-ram and nan technology today, and we have a strong road map of technology leadership ahead for ten year that's what's highlighting our confidence for the plans we announced today. think third i will say --

>> sorry, go ahead. >> tremendous support, as we look as expansion of our fab sites globally, tremendous support for the u.s., with the passage of acts to support the u.s. semiconductor industry, which is extremely important for economic growth, national security considerations, as well as driving innovation for america on the global stage. >> sanjay, i would rather see you in boise rather than the capitol behind you reason is you've been most america's beacon first of all, i want you to rye assert yourself as the company that's done the best of building in america, but second, i see d-ram and nan pricing going down why should i think that we double down those, when we have so many high-performance

computing semis that are needed that you're not making >> well, jim, what you have to look at is memory and storage constitute 30% of the semiconductor today. and with the wordloads, this percentage of mix within semiconductor industry will continue to increase that's one important thing memory and storage is essentially for all computing today. it's in every piece of computing. jim, while the prices may go up and down and production will have its cycle, the trajectory over the cycles is one of free cash flow generation capability, this is what micron has demonstrated we have just guided in september that our fiscal year '22 will be

a record year with solid profitability as well. >> but let's talk about shortages for a second you say the supply crunch is already improving, but the shortages will last into 2023, why not sit down with the commerce secretary, with mary barra, jim farley, and make the plants we need, because we don't have the full-featured chips that you know would change the dynamic and make sure our auto industry is number one again micron has number one market share and we are a very strong partner to the automotive industry, just like all aspects, and of course we are working hard to increase the memory production for the markets what is important is the announcement like today, we

trade for long haul to absolutely make sure that investments in increase production capacity -- over the course of last seven months. therefore, building resiliency of the secure supply chain in america is important, and therefore micron is -- and it's important that congress passes the chips act and the fabs act for grants, but also the investment tax credits for the long haul support the competitiveness of our industry with global industries overseas, where in foreign countries there are already hundreds of billions being spent between public and private enterprises in shoring up semiconduct or manufacturing. we need to bring some of these leading-edge manufacturing to the u.s. >> sanjay -- there's the opening bell, right.

david? >> you're obviously making a call for getting congress to step up and come up with a clear plan these days trying to figure out when and if is very hard to do, though, when it comes to whether it's bills or action from the white house or any other thing what are your expectations if you have them for what we will end up with, in terms of the sport you're talking about and you fee obviously the industry would benefit from. >> we are very thankful to the white house, very thankful to the secretary, as well as the bipartisan support for recognition for semiconductors and their importance to national economic as well as security considerations we know that there is a bipartisan support existing for this in congress the senate did a great job passing the hitchchips act, andw

the house needs to support it. and subsequent support in the fabs act, they will be important appeared necessary first step in restoring manufacturing presence in the u.s this is what we would like the administration, as well as the congress, to act upon. it is urgent we get going with this foreign governments are already supporting and -- there are companies in their nations, and it's important that america provides for a policy that's very supportive of semiconductor industry leadership going forward. again, semiconductors form the backbone of all economies and national security considerations >> sanjay, it's been a few weeks, but the commerce secretary said it was time to get more aggressive on the chip shortage they announced some initiatives

to get better eyes on the supply chain, at least within the u.s can you talk about whether or not that's bearing any fruit >> we really appreciate the efforts from secretary raimondo on getting the industry players together and highlighting the need for greater transparency and greater commitment, and highlighted the need for the industry to move faster. newer technologies have greater available of supply s. companies that are investing in new you are technologies, these are the dialogues that are taking place between us and our customers, and, of course, the government absolutely cares about the shortages and has facilitated certain dialogues, but we need to continue to focus on transparency in the supply chain, as well as commitment, so that investments can be made and faster move toward newer

technology transitions which are key to. >> sa lot of your competitors us taiwan semi, and i know you watch the situation with china do you ever fear that china, with sabre rattling in taiwan we'll one day wake up that taiwan is in the hands of the prc. could that happen? >> these geopolitical situations that bring about uncertainty, are really important i think this is why it's pretty clear, and covid certainly taught us all how important it is to have a diversified

resilient secure supply chain, and hence the importance of america to invest more in semiconductor manufacturing for a the long haul. remember, this switch doesn't flip overnight this will require investments to be made, to achieve scale, competitiveness, as well as return on investments, so that the business operations and technology and production leadership can be sustain away this is why it is important for congress to act now, so that there is absolutely resilience, sufficiency in the supply chain here in the u.s. sanjay mehrotra, thank you for what you're doing. you are the leader of the american semiconductor movement, make no mistake about that micron >> thank you, team, for having me on the show. >> of course. you have some of the earnings movers on the green

side abbott and biogen, in fact beresponsible points out 60 companies have print so far, you know how many have accompliced three. >> abbott is amazing here's what's going on it's not just the binax, we've had these diagnostic companies go up, but there's fantastic things they're doing with diabetes, lots of stuff with the heart. this is not going to be a one and done, even though they are making a huge amount of money with binax now, which is the at-home test, a few bucks, i like abbott a lot. it's owned by my charitable

trust. i sang praises for it before, and i feel like it delivered and then some. >> diagnostics revenue beat by more than a billion. they do raise the guide, along with biogen and verizon. >> we covered verizon -- >> we didn't really. though the stock is up, which is not typical. it's still down 10% for the year the competitors are down over the course of the year it's quite competitive and then the comcasts and the charters of the world competing because they lease network

capacity on them from, and then sell it more cheaply in packaged bundles, so nobody seems to win when it comes to -- >> people who own vising veriz because they called the yield. it was a good quarter. i don't want to be too dismissive of it >> 4% revenue growth this is a company that barely ekes out revenue growth. >> but david, low bar. >> well, disappointed? >> i'm just going to say under at&t -- >> it just never ends. it never ends. suicide king, the one-eyed jack

>> you are unrelenting >> the stock is up over 7%, did you see that investors got very excited about the 220-page dec, but earnings growth targeting 5.50 a share, $9 a share by 2026 18% compounded annual growth rate, $15 billion in capital generation can fighted many investors. >> at milken, there were so many different private equities, and everybody is going in different directions apollo, a lot of it is an insurance company. >> travelers had a great number, nobody cared. >> that's a different insurance company. >> chubb always does well.

my premium always -- is it automatically 12% a year >> i would have to check >> i can only imagine what yours is >> unh is the best do you performer, humana, there is a three-month high they're starting to get some yields >> these companies are just killing it these are the companies we thought, when you elect president biden, it would be like hell would just come down upon them and screw their margins. it's not happening >> it's a great company. >> i feel very confident with

them. >> feel confident about? >> to pay my bills. >> really? >> mri. >> i may need one. i have a side pain >> i think a lot of the risk is being taken out of offspeaker pelosi say, by the way, the health insurers are making too much money. i'm not hearing that. >> it does sound like the democrats are scaling back what can be done, 1.75 to 1.9 billion. according to records, pelosi and hoyer want something agreed to by the end of the week. >> you could play a lot of the infrastructure stocks that have gotten hit people -- the steel companies have been cascaded here, as people feel the numbers are going to come down. >> if you do get both bills, that's a decent amount of money.

>> help to create more jobs, so we have more jobs that can't be filled, because we don't have enough people. >> structure dislocations in labor, that's what tudor jones mentioned. >> tonight, we have doordash, how trying to find the right people the dashers, these are in short supply, but a lot of people cobble together terrific existences by being a dasher on the weekend or working a shift in the evening >> do you shift? do you know what it is >> doing different things during the day, would be my guess i didn't know this would be quiz time. >> it is target's unbelievable omnichannel offering we do a shift almost every day.

>> shipt, i didn't -- i thought you were talking about shift you're talking about shipt yeah, they advertise on our network with the golf clubs, is that them? >> carl, we have to talk about stocks. >> i do have one question. >> thank you get us out of here. we're beginning to see a group of stocks that can handle margin pressure, and then we're having others, brinker and -- >> brinker was just pathetic. they said, don't buy us. labor and commodity challenges, and packed their margins, did they leave anything else out let's just use the term

shortfall. >> they guide upper net to basically half of what the estimates were. >> i don't know, i think they're going to do better chi chipotle, i think is not having they problems. >> what about tesla? >> what kind of food do they make [ laughter ] >> goldman does defend starbucks and mcdonald's. >> tesla -- china numbers are great, then it will be austin, they have what they call a road map so any time the stock goes down, it will move back up. >> it's interesting, now outperforming the broader market

adam jonas is a tesla guy, i'm trying to get him to be a ford guy. he better get on the bandwagon. >> i think he stuck with 900 on tesla yesterday. >> upgraded to $15 to $20, valuing argo, which is autonomous, at $5, and rivian, and jim farley they've had some meetings about taking on tesla. they're not just sitting there they are very belichick-like, kind of a smiling andy reid and

bell click they feel like the ravens meets kansas city. bitcoin is at a record high. >> yeah, wow, look at that 65, wow. remember we were making ought those $64,000 questions -- >> i sold a chunk of my et ethereum it feels like monopoly money. >> there was a lot of enthusiasm around crypto that i picked up at milken, taking it seriously not necessarily bitcoin, but cr crypto >> dollars versus bitcoin.

>> i don't know what that means. >> when you're a younger person, do you think the dollar will be worth more >> no, i don't think so. >> how many mortgages did united wholesale mortgage write with crypto >> six but it's early days. >> billions and billions of mortgages, but only six that -- >> doge, you saw that at milken. >> i know there's people at this table that think that stoke is hopef

-- stock is overvalued. >> i was listening i have this thing in my ear. i hear everything you day. >> david, we've got to go. >> we've got to go. vix close to 15. let's get to bob. >> a bit of a flattish open, carl, but we are knocking on the door of new highs. flattish open here, health care l leading, tech is holding up. we're 0.3% from the new high so we're six points amp from a closing -- a news historic closing high the reason it's been happening the earnings have been good, holding up we've seen cyclicals in the last few weeks, really good momentum, of course, these are sectors that do better, transports have

had a great one, energy, this is just a few weeks, materials, autos, home builders, at the same time the thematic tech stocks, they've been trading sideways for months, based on some signs of life ark is doing berth. >> -- there's your average aps people, that's better, but not as good as the prior quarter that's the key that's the whole game here the estimates, fourth quarter estimates is what we want now. they were 21% a few weeks ago. they're not creeping up very fast that's what i mean, starting to flatten out, so prices are going up, but the earnings estimates flattening out a bit you want to see them going up

aggressively the worry issue is the inflation comments you saw some comments recently here, supply chain disruptions out there, they think it will be transitory the market is acting thisway, like upside surprise. inflationary pressures are broad-based and sustained. and jim was referencing? brinker comments yesterday these were very alarming because basically, they're trying to imply costs are getting away from them so, they're going to raise prices 3 to 3.5% to offset inflationary costs you're going to have margin erosion. that's the concern we have right now. >> thank you very much let's get to the bond report we dpid did to 167 on the tenure

overnight. we backed up a little bit. and dilleard and daily. ♪♪ in boxing or any other business, one day, you're gonna take a hit you didn't see coming. do you stay down? or do you get up? [announcer] and this fight is a long way from over, leonard is coming back. ♪♪ ♪♪

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it's been a pretty good week for coinbase they were chosen by facebook to be a customer partner. and another 3.5% that's going to take you back to, say, midapril. dow's up 9an9 d we have 3540 on the s&p.

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♪ good wednesday morning welcome to another hour of "squawk on the street. s&p really just a few points away from an all-time closing high dow up 100 as we weigh through corporate results. >> we're 30 minutes into the trading session. here are three big movers we're watching this morning. and tell combeat estimates revenue was slightly above forecast we're seeing more adoption there and shares up more than 2% another mover on earnings, anthem, beating on the top and bottom lines, also raising its full year outlook, thanks to higher premiums for medicaid and medicare businesses. and finally we're keeping an eye on alibaba

it releasing a cloud focussed chip there have been report that founder has been traveling in europe and ma has been largely out of public view since 2020 when he made comments that raised the ire of chinese regulators and q 3 beat with revenues in line. the company added more than 4 million subs and while netflix -- wants larger content budgets >> in the long term, we have to be able to monetize it but it would be incredibly satisfying if we could build up to much bigger content budgets than we have usefully deploy. >> here to bring things down, good morning

glad to have you both. >> good morning. >> let my start with the quarter itself and this idea, some have argued, that content spend got pushed into q 4. is that valid? >> you had a modest subbeat in q3 and own the where consensus was for subscribers for 4 q and was in line. he said it was accelerating customers. the strongest month is december, followed by january. looks like they're set up to beat subscriber estimates. so, we're quite constructive on the stock. i think that's the explanation why the stock is weak. >> what's your take of the rather expansive view on content budget, especially after a big

hit that was made for more munnee they could overall lower their cost to production >> netflix has been growing their content spend by billions every year we think they'll be 25 billion to spend by 2025 as streaming continues to gain share from linear, you're seeing money move from linear tv budgets to streaming budge tsz probably 100 billion spent on entertainment content per year it's going to switch to streaming and netflix is cap chrg a share >> and is it saturated and does it matter how focussed across markets the company is for future production? >> i mean subscribers in the u.s. are approaching cable levels

but the vast majority of growth comes from markets outside the u.s. 120 million subscribers are being added over the next five years. and about 95% is from outside the u.s. so, we're fine with the maturity of the u.s. market the company infuses pricing each year it's rising, even as growth in lower price markets is driving subscriber growth. >> so, given the fact that, from the last earnings report to yesterday's earnings report, we saw netflix shares jump more than 20% how much is baked into the stock? how much further could it move in the coming months >> it is up 20% since the last earnings report. the stock had a tough year so, it's up less than the s&p year to date we recently raised our price

target to $700 per share what you need to see is fourth quarter content, which is expected to be so good need to see engagement in the fourth quarter content i think there q4 is conservative they say they give it to us as they see it. i think thalk beaten the 8.5 billion subs for q2. >> earlier in the week we had a down graded disney thesis is they would have to double their title count to match that of netflix. are streamers trading on the number of titles they offer? >> the beauty of netflix is it has something for everybody. it's not targeted at any one demographic. it has so much content, that it fits an entire household disney's a great product

it's a little different in that regard than netflix. some of the subscribers disney got early on, were related to third-party relationships it had. disney's a different animal than netflix and will be successful in it's own right. but netflix's broad-base sd content and essentially replacing tv in many ways. and netflix has the opportunity to have "squid game" and more "squid games." that doesn't work for disney they're a big budget player. >> and talking about what he called off netflix aspects i assume he's referring to gaming he says a company like disney is ahead of us but boy are we making progress. do they want to see netflix get more expansive, rather than the

core business we know? >> yes, they do. consumer products is an easy add on disney probably has a hundred million dollars. just look at the success of some of the "squid game" knock off. and in terms of gaming, it's a larger business than the films entertainment business today netflix has all the consumer relationships. it's got the infrastructure. it makes perfect sense for them to try to do gaming. one of the reasons is offering more products. you're already spending 25 billion in entertainment content. it makes sense to start looking at the gaming business and investing there.

they're trying to change game -- change the way people view gaming, just like they changed the way people view tv not trying to monetize it through advertising or in-app purchases. >> people playing "squid games. on fortnite know erse and revenue higher than expected no timeline when it might return to profitability but take a listen. >> we definitely bottomed out, probably the beginning of september. started to see improve we've seen business bookings, the holidays are strong. international demand is particularly strong for europe it looks like, from the data, we bottom out and are on the way back

>> some of the internal metrics are more impressive than delta last week >> they talked about the restructuring and investments made in terms of technology and what that's meant for flight times and service as well, even as we've seen hiccups at places like southwest we are seeing more international travel being allowed here to the u.s., including from places like europe, starting on november 8th. that their bookings are higher he said it's higher than what they saw in 2019 in terms of trips potentially between the u.s. and europe in both directions and of course, upbeat about the return of corporate travel, which echoed some of the comments we heard from honeywell. >> i don't hear anybody saying it's going to return to the levels of prepandemic. and i think the one expectation is it won't. jim was making the point earlier

that it perhaps will be made up bypeople wanting to be more aggressive in their travel get out and enjoy their ife, a the pandemic seems to be ebing >> you heard google talk about 50% of new york coming in and delta variant getting crushed in the south. we haven't yet mentioned the white house plan to vaccinate 25 million kids, maybe as early as next month going to make it easier for some people to get to work. >> the vaccination piece of the puzzle and lawsuits and legal challenges playing out airlines are on the forefront of that airlines and unions too. as we head to break, in the meantime, here's a roadmap for the rest of the hour the bitcoin futures etf is here. what does it mean for the crypto, as it hits record high and we're not done talking about netflix. finally, no salt, low salt or extra salt.

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welcome back we spoke to gary genzler about

that etf and investor protection in the cryptocurrency space overall. >> i think what you have here is a product that's been over seen for four years by a u.s. federal regulator and cftc and that's being wrapped inside of something within our jurisdiction, called the investment company act of 1940 so, we have some ability to bring it inside of invester protection it's still a highly speculative asset class and listeners should understand that, underneath this, it still has that same aspect of volatility and speculation. >> well, here to discuss, is digital assets analyst, mark palmer

first, i dowant to start with bitcoin at fresh record high it's been a strong rally up something like 50% since september and doubled since midyear levels how much of this can we attrib aught to the bitcoin futures etf and the fact that you have more demand within the futures contracts market right now because of these types of funds being rolled out >> well, it's certainly been a catalyst for bitcoin's appreciation but it's not the only thing going on here. i think if you look at bitcoin in the broader context of crypto currencies, in a sense, it's become a safe haven. bitcoin has been, essentially, blessed by regulators, as a nonsecurity. and as such, it doesn't face the same challenges that the

so-called altpoints, other cryptocurrency tokens could face especially as chairman genzler has made it clear that, in his view, most of the tokens are securities so, bitcoin has its own special status within the cryptocurrency ecosystem and i think that's definitely helping it here >> how realistic is to do -- especially given the comments we heard from genzler, that we could see a etf manifest in the future let's start there and then i have another question. >> i am not anticipating anything on that front anytime soon this has, basically, been a beacon to those who had previously intrd bitcoin etf applications to reapply.

chairman genzler made it clear that he views the securities act of 1940, in one category hence, futures etf is approved everything else would be under insecurities act of 1933, which simply, by focusing the way he does on the '40 act, makes it clear he looks at the 1930 act with suspicion i think clearly was under pressure to do something, given everything that's swirling around crypto. this is the least thing he could do while still allowing the echo system to move forward to some extent >> so, for investors debating on whether to invest in the bitcoin futures eetf, what makes that compelling, since you're talking about the rolling futures

contract verses, saying the physical coins them selve and trading them on coinbase or a microstrategy i know you cover >> frankly, i don't think any individual investor, particularly retail investor, should be looking at the bitcoin etf as a vehicle given the fact you have significant costs associated, the futures etf could underperform, especially when we're in what's known as contango, which is when the futures price is higher than the expected spot price, which happens quite often. so, this is not a vehicle for anyone outside of a professional trader and we would strongly recommend investors either buy bitcoin straight out and if they're unable to do that and

looking to buy a stock in the equity market, we think microstrategy represents an attractive way to play bitcoin, not only because of their enormous holdings on their balance sheet, dh makes them look liking a defacto eetf to some and enabling them to buy more bitcoin i would say away from the futures etf but there are other ways to play bitcoin >> i realize some of the other coins out there, there is a lot of volatility. prrls what is your outlook, not only the end of this year but 2022 for pricing >> i put bitcoin in a different category than the rest of the crypto currency ecosystem because it has been blessed by the regulators to the extent it has. etherium is in that same

category there have been a few ruffles about its status but it's also in that protected area it's very clear we're going through a process of figuring out exactly what the extent is of the sec's reach regard to crypto and how to determine whether various tokens are in fact securities or not and frankly, that may not be something decided by the sec frankly, the sec's authority to even be able to have jurisdiction over the crypto spaces in question frankly, the two federal courts who have ruled whether crypto is security or a commodity and they both ruled in 2018 it's a

commodity and should be over seen we think a lot of this is going to end up in court and step one is the sec case, i think could provide clarity. >> very interesting. we'll continue to keep an eye on that space within the cryptocurrency space as well then mark, thanks for joining us. >> bio tech names have been some of the biggest movers on the s&p. movers one up a little bit, one down a lot politico reports and we have a check onhepa rhtft is breakig aer stay with us

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welcome back it's now time for our et, if spotlight. it's up about half a percent, but has taken a leg lower this month in general, after peeking in september more than 10% off its highs.

bio gen raising its full-year forecast as the company remains optimistic about prospects for the alzheimer's drug one of the biggest movers is drug maker, novavax and that's down 13.5% after a report from "politico. saying it was having trouble mee meeting fda quality standards for its covid vaccine. >> reporter: novavax one of the vaccines supported by operation warp speed with more than a billion dollars in funding siting multiple sources that there are manufacturing issues delaying novavax's vaccine from becoming available around the world. this after multiple quarters and

still hasn't applied for emergency use authorization in the united states. that's driving the stock down as investors are wondering when the vaccine will become available. the company pushing back on this reporting, noteing it only sites anonymous sources. we're confident our vaccine will soon play a significant role in the global 19 arsenal. and address two major issues global distribution challenges and vaccine hesitancy. this has been an absolute roller coaster for this company over the course of the pandemic novavax was on the brink it had been working for decades, trying to bring a vaccine to market its stock was close to veero and it's run up incredibly as the power of the vaccine technology has been proven phase 3 results showed more than 90% efficacy

but the manufacturing problems causing delays in them getting the vaccine out. >> in the meantime, headlines about the white house's plan to quickly immunize kids 5 to 11 in covid. of course, this will be the pfizer vaccine how quickly can that ramp and how does it speak to the supply dynamics already on the market globally >> reporter: so, we're expecting this to happen over the next few weeks. fda advisory committee meeting next week for kids november 2nd and 3rd, cdc advisors meet and are expecting the vaccine will become available widely after that. so, they're putting in place how it will become available it's a lower dose and will have different packaging. having that ready to go as soon as the regulatory green lights

are given is the plan. and they're talking about whether they're going to do vaccinating, in pediatrician offices, or schools and community health centers, pharmacies, all getting those on board for the 28 million kids in this age group to get the vaccine as soon as it's ready. >> and wulen ski's on the tape this morning and says the new variant has been found in the united states but not any cluszers it's not spreading quite as fast as delta what are people saying about it at this point? >> the jury is out on whether this variant poses new challenges data from the uk suggests 8% in prevalent cases. we'll have to see if that's in fact thrown.

the bay they're looking at it is if the growth can be tied to the variant is perhelps 10% more transmissible than delta and so, anything being more contagious than delta would be frightening. and we'll have to see if it starts in the u.s. >> all right thank you. meantime, boeing saying the company's starliner spacecraft, built to carry astronauts to the international space station for nasa, is not expected to conduct its uncrude test flight until 2022, with a flight test carrying people not expected until the end of next year this as spacex gets ready to do its next flight of nasa astronauts

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i'm christina and here is your cnbc update at this hour. a naval base in maryland is on lockdown after receiving a bomb threat from an anonymous phone call it's the home of the walter read medical center russian president putin ordering a week without work work may be paused even longer in areas with highnerfection rates. it's mentd to curb the record surge in covid deaths. more than a thousand in the last day. until now, the kremlin resisted calls for another national lockdown queen elizabeth has cancelled her trip to northern

ireland. doctors advising her to rest instead. a spokes person said the queen is in good spirits back to you guys thank you very much. we're looking at the s&p this morning above its all-time closing high we might get a dow record high any moment we're trying to get above 20 point away let's watch all that this morning with our senior commentator, mark santoli. >> 724 has been the vix this year so, that's the time to say maybe something has come along to challenge this gentle upward grind. and already we've gotten into low volume, upward spiral type mode we're getting stressed in the very short term. i think a lot of people can say

we have spectism is to burn up and use as fuel for maybe further upside into the fourth quarter. wouldn't or shouldn't surprise anyone, if the market takes a rest right here. you're looking at oil just slightly here. it's interesting context for the heart of earnings season where you often have a push pull that keeps index volatility trapped but a lot of underlying corporate moves. >> that's a good set up for us as we go to our next guest as well so, threats bring in schwab asset chief investment officer as we get earnings season in full, i guess, full court here, i do want to get your take on what we're seeing so far from companies. on the one hand, it seems like

consumer's very strong and many companies are able to grow their earnings on the other hand, you have costs and inflation pressures given what we're seeing. >> it's great sote up right now thinking about a risk on marked like we've seen in the last few days in the middle of earnings season corporations confirmed the invi environment, that said two things one, consumers are really healthy and the demand is there. what has accumulated with savings and extra liquidity they have on the other handled, corporations clearly still have that pricing power the nature of the challenges that they have in profit margins continues to be something that can still pass to those consumers. and i think that dynamic is

reflected so far it will come in the first quarter is there and the market seems to be adjusting tweel it >> so, as we said, the number one issue facing investors right now is tinflation and it's prett clear it's not commentary. you think what >> well, two things. there will be components of inflation that will not be transitory and i think what we see in the imbalances of the labor market basically clear that there is a growing wage growth situation. we see the rate of people changing jobs, it is increasing. but around 3 to 4% that obviously puts pressure on wages that will create inflation, that's not necessarily going to be transitory on the other hand, inflation is not always going to be wrong necessarily.

as long as you have an economy that's growing, inflationary pressures are healthy and on the other side is the fed. and providing the liquidity and taking a very conservative approach on how to increase rateds is something that could settle inflation the big question mark is timing. how much of the supply chain c challenge could last >> how would you counsel investors to be positioned within the market right now? >> if you look at snap shot of today's markets, whether it's yields on bonds, the equity market, whether rirtds a dollar, commodities and you actually go back to precovid, we pretty much have recovered completely and we went into an expansion the full global recovery and

everything else can move into the next phase of the business cycle. our advice is to look away from the recovery part. and moving into higher kwaultd, higher levels of inflation, higher levels of gregt at a decelerating rate more cyclical quality gregt companies that can benefit from the next phase >> so, is u.s. still the place to be or are there opportunities abroad and i ask that, given we're seeing signs of economic slowdown globally, whether it's china or other places. >> we believe the u.s. will continue to lead the next couple of quarters. the level of our growth continues to be significant leader around the world.

that being said the movements and changes that we see out of europe continues to be attractive we encourage investors to continue to diversify. there's been a trend to stay -- and this is a glatd opportunity to move into areas that may have upside we're probably going to 2022 to go back to the normal growth rate of the economy. and in that case, you want exposure to international markets. >> so, biggest risk to the market right now as you look to 2022 >> the biggest risk comes back to the patience of the consumer and as you seek about companies that are putting pricing power to work and as you actually see consumer is still having the pent-up demand if consumption starts to low

down, that's the biggest risk for the economy. you think about it, we were in a good track in the summer until the summer hit so, it's always for us to watch. >> all right omar, thanks for joining us today. >> thank you >> keep your eye on brinker today. one of the companies getting beaten up after they reported that higher costs on labors and commodity did hurt and korean show did not translate to a wave of viewers in the u.s. and canada as we got that all-time closing high level on the s&p. x points away from a fresh all-time high.

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we'll get back to netflix. despite what was a beat of earnings estimate yesterday. they touted the success of shows such as "squid games." on its earnings call and what that means for the future of streaming giant. >> imagine a future "squid games. and it comes with interactive gaming options built in. then the off netflix aspects, consumer products all of that coming together. so, a company like disney still ahead of us in some of the dimensions inputting the whole experience together but boy, are we making progress >> joining us with reaction is former netflix and hulu executive, simon gallagher let's start with "squid games.

it's got to be steen a powerful statement that the most successful platform in their history is made in south korea >> it's a surprise but they're managing the service as a global service. they have their 17 billion annual content spin and they are good at understanding it's not just a u.s. audience and trying to export u.s. content to the world. surprising in some ways but if you look inside the organization, i think you'll see they're managing it as a global content firm >> and hastings says their desire is to be the first choice in entertainment and will include perhaps a more robust offering in gaming are they succeeding in that mission? >> i think they are. you need to look at the time

when facebook was down during the last month and netflix saw an uptick in usage during that time frame facebook is one of the direct competitors. they don't see the other services as the direct competitors. and wherever that entertainment comes from so, when facebook, instagram is out of the mix, you'll see the numbers for netflix shoot straight up. >> hey, simon, to the degree they're able to lower production costs by ostensibly creating content that originates from overseas, does that mean the giant show runner packages that have been handed to the stars of the industry are in danger should the rock be worried about his comp going down? >> i don't think so. because if he has a new show he's developing out of his own

production company, he's going to pitch to all the usual suspects amazon, apple, netflix and there will be competition in the united states for that these other services are, in some ways programming u.s. content to the world netflix will compete for the big ticket shows in the u.s. but they're finding those undiscovered gems in international markets. >> just to dig into that a little more, simon, i know we've talked about this quite a bit in the past, it does seem like they're constantly tinkering that or at looegs in terms of disclosures and instresers and shareholders as well so, how does that factner to recruiting people verses the other competitors, whether you want to call them that or not. other competitors looking for streaming content right now.

>> that's a good kwelgz. you only need to look at hiccups disney had with scarlet johannson. you don't hear that out of netflix so much in terms of chal mpgs they're good at understanding their needs and helping them make the decision that netflix is the right place for them to deliver content to so, it isn't just relative to selecting content but it's in relation to building content with con -- relationships with content creators and you're going to see them be a preferred home for content creators in the u.s. as well >> as all the others out, the pluses so to speak paramount plus, and amazon, our

parent company, peacock, i could go on and on . who do you think is in the best position to compete with netflix? >> i think you need to have it on a genre by genre basis. if you have kids is a preferred home and you want that tradition and history of what hbo have done here in the u.s. the great thing about netflix is their ability, they're not in one particular type of content or genre they very much have a broad content offering and i don't think they've been labeled going down one path or another perhaps the way other services have. >> an area we will continue to focus on simon, thank you. >> you can catch more on netflix coming up in the next hour.

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welcome back to "squawk on the street." i'm seema. stocks are mostly higher today but we want to look at the notable movers within the consumer discretionary space booking holdings as well as casinos like penn and las vegas sands and marriott is in focus as newly public documents in a lawsuit filed by the attorney general's office reveal a accusations of resort fees marriott is misleading customers by not disclosing the fee to customers up front a hearing is expected to be scheduled r rcoffomah next year there's more ahead stay with us

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welcome back washington continues to wrestle with what to do with deductions and if they can agree to raise the cap on those deductions. robert frank joins us with what could be a super salt deduction for the welty. >> good morning, david democrats as you mentions are still pushing for salt repeal

and perhaps still on the table perhaps they raise that $10,000 cap on state or local reductions or maybe adjust the time horizons but with talks of a smaller reconciliation package in the works, they need to cut costs and repealing salt would cost over $85 billion a year in lost revenue adding to those complications are questions over two tax provisions that are tied to salt whenthe $10,000 cap was create the tax cuts and jobs act got rid of most of the alternative minimum tax and the pease limitations. those two programs effectively served as limiters to salt deductors. high earners could deduct from their federal returns unless those are also restored simply repealing salt would create a super salt windfall for the wealthy, according to the tax foundation repealing salt by itself gives the 1% a tax cut of $25,000 a

year if they repeal salt and bring back the two other limits, the tax cut would only be around $7,000 a year. so far none of the supporters of s.a.l.t. repeal talked about the two other programs which could help reduce the benefits to the wealthy which is at the center of this debate for repealing the s.a.l.t. cap david. >> to put it in perspective, robert talking about diminishing state and local income taxes for the high-tax states as people who are wealthy leave. so, clearly, they want this repeal but at the same time, it seems very hard to imagine parts of the democratic party endorsing something like this. >> yeah, then you just maybe do the easy thing which is that in 2025, this cap naturally expires unless congress acts so, i would just say, look, let expire in 2025 and let the congresst a that point deal with it and maybe that helps to

offset the fears of people moving >> robert frank, thank you salt on the wound. there is a lot of puns >> wow that's good. >> a lot of puns we could go with here. that being said, major averages are higher today the s&p now on pace for the best month since november both the dow and s&p traded above record closes. that will do it for us "techcheck" starts now. good wednesday morning welcome to "techcheck. today a red light or a green light for investors. we'll debate netflix's results and status as a volume shooter then facebook changing its name. some of the best ideas that don't include the word the the creator of