good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with andrew ross sorkin joe is out today big day for the markets yesterday. you had the s&p finally hitting a record high. first time that's happened in a while, the longest time that's happened in over a year since it's gone without setting a new record but this morning looking at a mixed picture. s&p futures down by just over a point. the nasdaq down by about 45. nasdaq was up sharply yesterday, there was afterhours news that we'll talk about in a moment that reversed fortunes for the nasdaq and tech stocks treasury yields continue to climb. yesterday the five year closed

at the highest yield since february of 2020, sitting at 1.235% this morning and the ten year is creeping up, andrew. it was almost at 1.7%, sitting at 1.685%. you're talking about real movement in the yields it has not impacted stocks but there's questions when it might happen. >> usually when it goes up, the other goes down. >> 1.8% is the threshold >> i don't know the line let's get to this morning's top movers a lot of things happening. snap shares are plunging -- do you use snap >> no. but our kids do. it is by far for teenagers the most beloved network. >> instagram is for parents i'm told. >> instagram they'll use for arty pictures but the way of communicating with friends is snap >> interesting the company, despite all of that good news from the quick family,

says that ad sales are hurt by the privacy changes that apple rolled out to ios earlier this year it's making it harder for companies to sell ads based on information they collect now snap's slump also impacting other social media stocks, including facebook, twitter, pinterest all down this morning as a result of it. they expected it but didn't expect it to be this bad the online traders are also coming under a bit of pressure. >> i think this is a lot of things that kind of are conspireing at this point. there was -- "the new york times" had the story about facebook, was it over the weekend -- >> right. >> -- looking into it. and their concerns were that teen users weren't using as frequently it had gone up to 3 to 4 hours during the pandemic and maybe that is not going to continue to climb and that's going to come down an hour or so a day because kids have other things they're doing. >> when you get a new app on

your phone and it says, allow you to track -- >> no. >> you say no. i know you. >> never, never, never. >> i think most people probably say no so i think this is probably a much harder business to be in if you are a facebook or snap or somebody who relies on advertising. >> i think teenagers tend to not say no as much because they have -- first of all they like tracking where all of them are, they keep track with each other. i think teens are less likely to say those things but it does show that these changes with the apple privacy issues are going to be a much bigger impact that the market really didn't figure out it's the weakness that you have for all of the apps they're not collecting the first party data themselves they were relying on apple to do it. >> can i say the other side? i know the ads for me on instagram are not as good as they used to be. >> they work for me. i bought this dress from an ad on instagram they capture me with some of

those things but i'm not the target audience. >> you are we all are. >> anybody with money. but not the ones they're really caring about teens -- >> you're still a millennial, at heart. >> i'm not but what i will say is, the other issue is there's not as much advertising right now the supply chain issues. if you are somebody like a mattel or another company that can't get your product in for christmastime, how much are you spending on advertising? >> that's an interesting question. >> you don't need to spend on advertising, if everything is gone before you spend a single time on advertising. i think everything is coming together at one time and this is after the stock had a run up however we are seeing a tale of two tech giants this morning while apple's privacy changes are slamming players, google slashed the fees they have for the play store they have it's a number of stocks relying on that surging on that. among them you had dua lingo up.

bumble up and road blocks up >> global market news, shares of evergrande are on the rise overseas trading after the chinese developer made a key bond payment, that company reportedly made the roughly $83 million payment today after missing it last month, that triggering a 30-day grace period set to expire tomorrow but the question is, would -- sorry it would have entered a default if it hadn't but there are additional payments that are to come. so this story is not over yet. >> it's the same thing here, if you are a chinese investor you're better off than you are if you are an overseas investor that's been relying on these things it's the overseas investors who likely -- china doesn't care about that at this point they're more concerned about their own economy, and by the

way you took the risk on this. it's interesting on the rule of law and it's investor beware if you're coming from overseas. >> i'm with you. >> chairman jay powell announcing major changes to personal investing restrictions. policy makers will not be allowed to own individual stocks or bonds and individuals will be restricted to owning mutual funds. they have to own those funds for a year and then they need permission to buy or sell. this comes from controversy surrounding two presidents that eventually led to their resignations. the fight against covid-19 continues. the cdc approving booster shots from moderna and johnson & johnson. recommending that the moderna booster for elderly people and at risk adults six months after the second shot. and the cdc also endorsing the

j&j booster for everybody over 18 and older who received the initial shot at least two months ago. those boosters could be available as soon as to believe. the panel didn't specify which vaccines should be used as a booster, instead letting doctors decide whether to mix and match. >> doctors are like, great how do we figure this out? there's not a huge amount of information. >> i won't play doctor it looks like the better information suggests a pfizer or moderna after j&j is the way to go seems to make better sense and then the question is if you had pfizer or moderna to begin with -- >> do you stick with it? >> -- do you stick with it or not. the moderna data seems marginally better. >> i would also say, just from the profile, if you had one and did okay with it, i can understand the desire to want to stick with it so you're not taking on a new risk factor. when we come back, stephanie link joins us with her take on

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welcome back to "squawk box," everybody. it is friday, end of the week and we're kind of easing into it you can see the dow futures indicated up by about 19 points this morning that came after a slight decline for the dow yesterday which broke a two day winning streak s&p indicated down by just about a point. but it's worth noting the s&p yesterday closed at an all-time high we'll see how things go as we get closer to the opening bell nasdaq down about 41 points. if you check out bitcoin this morning you'll see that it's up to 63,264 it also set a new record earlier this week and there is a second etf that is expected to launch surrounding bitcoin after the very successful launch you saw earlier this week of the first ever bitcoin related etf oil prices yesterday pulled back a little bit, that broke a five day winning streak. this morning it's up once again.

wti sitting at $82.94 a gain of half a percent many earnings headlines to digest after the bell yesterday. to help break them down for us is stephanie link. i want to start. let's run through a couple here. >> good morning. >> good morning to you we've been talking about snap all morning. the company said ad sales are hurt by the privacy challenges that apple rolled out to ios earlier this year. becky quick says the quick family is still using snap. >> not me. the kids. >> the kids in the household. >> so are the links for sure, by the way. i think the setup wasn't so good, andrew in terms of the stock being up 51% year-to-date. snap also was up 23% from the second quarter so the expectations were high and that's because most people thought that they would be

insulated from the apple privacy issues clearly not the case last six quarters this company has beaten revenues by on average 10%. so clearly this miss was a surprise now 57% year over year growth was amazing. whisper numbers were 70% taus were what was expected but whisper numbers were higher. they needed to guy to at least 50% revenue growth because that's what they have been saying they can grow on a sustainable basis and didn't do that this is going to take the hit today. but becky's kids are using it, my kids are using this, everyone's kids are using this at some point it's going to be interesting to take a look at. in the meantime i would rather buy facebook because it's cheaper. you get the same kind of theme and secular growth rate. >> even though we are down 20% right now, what's the number which you start to take a nibble

and say this is worthwhile >> well, the problem is when i compare it to facebook, facebook is profitable, these guys aren't and this trades at 33 times price to sales facebook trades at 10 times ebitda it's hard for me, this is the problem you wake up and you're down 20% because the valuation can't support it i think it's going to take time, andrew these things take a bunch of -- kind of months and quarters to play themselves out. this was such a favorable name headed into the print. i think it's going to take some time that's why i say, i'd rather own facebook because the expectations are low even if they have the privacy issues, they will, the estimates have come down, the expectations have come down. >> is this a market that's going to have troubles when you have high prices you watch stocks climb so rapidly so many were priced to

perfection i was listening to a stas you can statistic today even though the numbers have been beating you've seen the trading activity be lousy, the worst you've seen in a long time because so many of the stocks were kind of priced to perfection. >> absolutely. that's spot on that's why valuations do matter. i understand the momentum game i understand the total adjustable market game i'm a big believer of total adjustable markets but you have to pick your spots i think there's no way you can rationalize 34 times priced to sales and the sustainability of the company growing at the levels it was growing at just the law of larger numbers you have to be very careful. i think there are going to be opportunities off of this snap call and eventually maybe snap does become a buy on my list but it has to grow into that multiple whereas facebook even alphabet has grown into the multiples

so those two are more attractive in terms of the valuation support. and again, you're playing in the space where you want to be but you're just trying to figure out how to properly execute and find names that have a better risk/reward. >> meantime, we want to move to intel, third quarter sales there missed forecast. the company predicting lower profit margins in the years ahead as we have major questions about the what the semiconductor industry looks like in the united states and whether intel can be a leader in the space with some help from the government >> maybe they can be a leader but it's going to take quite some time. that big number, the cap spend number of 25 to $28 billion is higher than expectations and has everything to do with the fact they were behind the innovation curve over the last many years, amd has been eating their lunch and they have a two-year market share gain window against intel.

i applaud the management for doing this they need to spend the money to build out their foundry business, processing technology and be more competitive. but this is going to hurt free cash flow. and a lot of people are in this name, andrew, because of the dividend now the dividend is safe, i believe. but is it going to grow from here probably not because they're spending on their cap x to build out their competitiveness. >> finally let's look at, it's a squawk favorite, chipotle. third quarter profit did more than double, sales forecasts doubles. customers returned to eating indoors and brisket and avocado. >> i cannot believe i don't own this stock talk about the link family household eating this food all the time but 72 times earnings is hard to stomach at this point, no pun

intended i would say there's nothing to poke a hole in this name, it should be up more because they're delivering in a challenging environment in terms of higher prices but they're being able to parla that to higher prices. the con summer is willing to spend. margins up, comps beat across the board it was an outstanding quarter. >> would you like to own it now? >> you know what, it's hard. the valuation is hard, i was just about to say, i choose to own mcdonald's instead of chipotle, again on the valuation side you guys know me by now, i'm a little more value centric. so that's the one i'm playing. >> this is not the peter lynch approach to investing. you don't own the things you actually eat yourself. >> i hould we should, right >> it's a good strategy, typically. stephanie, thank you appreciate it. >> thank you >> have a great weekend. >> have a good weekend. when we come back we'll talk

about wework's performance on its first day as a publically traded company plus how adam newman celebrated aye occasion st tuned you're watching "squawk box" and this is cnbc. we now find that 85% of individual investors are interested in sustainable investing. among millennials, the interest is even stronger. ♪♪ one of the big trends in sustainable investing is data, and the ability to understand how sustainable your investments are. by taking that information into account, investors can make better decisions for the long term. sustainability is not about one number. it's about variables like water usage, data privacy, consumer trust, diversity, land use and conservation. all types of investors are now considering this in their investment decisions. this is not niche.

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welcome back to "squawk box. we are watching shares of wework this morning the stock popping more than 13% yesterday as the office sharing firm finally went public through a spac deal caps a long journey for a company once valued as high as about $47 billion but its

initial i.p.o. plans imploded back in 2019 while the company's leaders were at the nyse for the opening bell like we were. founder adam newman was holding his own party of sorts with dozens of former employees and cofounder yesterday morning at the bell making a couple of statements i don't know if we have sound of those statements, but it's sort of -- we were talking about during the commercial break it's an interesting dynamic because here's a guy who did create something, $10 billion of value, not $47 billion of value clearly made a lot of mistakes along the way. the company could have imploded. and so how much credit do you give him or don't give him for what happened. he caught the right trend -- >> does he recognize -- his public persona has never been one that seems to take on any sort of remorse for what -- the implosion that took place. granted, this did wonderfully

yesterday, the i.p.o. came out well but because when you're looking at 10 billion -- >> a different valuation there were conflicts of interest which we talked about before, at one point he was buying buildings and renting them to wework there were the issues of governance and how the company was used, selling the trademarks back and forth but then when you say the valuation, who created the valuation, i don't believe the valuation was created by adam newman, it was bankers and investors and folks at softbank willing to do that all of a sudden you have the valuation and thenyou go out and higher new employees and say i'm going to pay you in stock. because it's based on this valuation. >> he always seemed kind of crazy with the things he was talking about. how he was going to run in israel for office and how he was going to turn this into a lifestyle and work they seem to live on a different

planet it's what is he talking about when you listened to this? some people believed it but the market at some point said the emperor was wearing no clothes and that seems to be how it all fell apart around that he's not down at the new york stock exchange yesterday, the interesting thing, they don't want him there this was like travis calnick when youuber came out. >> i wonder how history books like at travis because we all use ubers now and depending on what happens with wework -- >> it's just so much there it's interesting. >> the drama. >> it is. >> the drama. >> it is when we come back, as washington debates details on a spending bill and a possible tax hike steve leaseman has polled the lea leaders to see what they think

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back to "squawk box. we are live at the nasdaq market side in times square this morning. look at futures on this friday morning. still about three hours before we're set to open this morning but you're looking at the board. is that board really in times square >> no. it's magic. >> the s&p 500 -- they should, you know, i think people would like that. s&p 500 up about 2 points nasdaq off about 33 points. starbucks looks like it's open so good. >> open for business times square is busy this morning. as congress wrangles over details of the build back better bill, new polling shows where

average americans stand on this issue. our senior economics reporter steve liesman joins us with the results. i don't know, steve. we've heard the wrangling in congress, the differing opinions there. what's the rest of america thinking while they watch this all get hashed out >> they're sort of lukewarm in favor of it, becky reported yesterday president biden's polling numbers slipped badly in our poll. there's modest good news in this for the president coming on the attitudes of the bills being debated in congress, which is the corner stone of his agenda the survey of 800 americans nationwide finds 41% of the public supporting the bill when told it would increase child care spending, clean energy. some of this stuff may no longer end up in the bill 30% opposed. it. and a large 29% said i don't know enough.

but it's a sign the democrats and presidents have not done a good job explaining the bill or getting the public to know what's in it when told the price tag, 51% of the respondents say they support it going on further, when told corporations and americans with income of above 400,000 will pay for it, support grows to 57% such averages hide deep differences between age groups, regions and parties. 73% of democrats support the bill that's actually low for the incumbent party there. that's compared to 12% of the republicans who support it interestingly, 22% of democrats and 30% of republicans say they don't know enough to have an opinion. and that's just one of the deep party splits in this nation that we found in our poll asked the top concerns, republicans say it's immigration, the deficit and crime. democrats look at the bottom number issues there. democrats answer climate change,

the coronavirus and infrastructure now look at the middle, the most agreement, founding the concern over the cost of living and unemployment independents they're most worried about inflation and the coronavirus. and that puts those two issues together with the democrats and makes them the top issues for the country right now. on the biden bill, independents support it, 37 to 26 but as many independents are unsure about the bill as favor it so becky, maybe there's some possibility here for either side to get their point across to both independents and their own supporters who are unsure and create a larger majority either way. >> so steve, how many people again? what's the percentage who said they don't know enough to form an opinion >> 29 of our 800 respondents, which is very high for an issue that's been -- >> i know -- they're the smart people in this, because how can

you possibly know what to think of a bill that we know nothing about? we don't know the price tag, how you're paying for it they're still wrangling over the most basic details of it they don't know what's in the bill or out of it. to think you have an opinion you're one of the dummies, tell me what the bill is before you can ask me my opinion? >> i think we have two of the smartest pollsters in the nation helping, we have micah roberts, a republican opinion strategy, we have jake campbell from heart research you have to have heard the hour-long conversation we had about how to even poll for this question, how do you ask the questions? we could have spent -- you know, you try to keep the poll, by the way, to 12 to 15 minutes i think that's what we try to do. >> who's going to answer longer than that. >> we could have spent an hour asking about the bill. we want to know is the child care thing -- but there's so much in it, so hard to poll and

that's emblematic of how hard this is to explain to people and figure out do they like it or not. >> do you $6 trillion worth, do you like $1.5 trillion worth, do you like it focused on climate change or child care who can even possibly know we follow this really closely we don't know what's in it. the people expected to vote on it still don't know what's in it all the way up the line you had president biden last night trying to describe how he's been negotiating with kyrsten sinema and what she may or may not like in any of those. the more i hear about this, the less i understand what the bill is about >> becky, notice a couple of things here. we anticipated the change in the price tag in our question, right. >> yeah. >> so we went 1.5 to 2.2 trillion this poll, by the way, is very fresh. we were in the field from last thursday to sunday so we had to come up with the questions last week. i'm giving you more of the incite dope on how we create

these things. >> it's interesting. >> so we're working on the questions here, say we're going to change the price tag because that's what they were talking about. then we get to reporting the results and some of the things we asked about, they're no longer in the bill anymore >> yeah. it's complicated i guess that's the easiest way to sum it all up steve, thank you. >> i like your observation, becky, of the people who say they're unsure they're the smart ones that may be right. >> a third of the people are smart enough to realize, i don't know because you're not telling me what's in it yet. wait and i'll tell you what i think. >> because you can't. >> exactly, exactly. steve, thank you i'm sure we'll talk a lot more about this but we have an earnings alert. the numbers crossing from honeywell, earnings coming in at $2 $2.02. as for the guidance, honeywell

is cutting the 2021 sales to 34.6 billion for the company that is raising the midpoint of theguidance it issued before, but below what the street was expecting the street is at $35.1 billion that might explain why you're seeing the stock down by about 2 preexistin %. when it came to organic sales growth strong up 8%. and margin expansion, this is the question so many are wondering about when it comes to inflation. they had margin expansion of 130 basis points which beat the guidance by 60 basis points. strong news about overcoming things but the sales guidance they're giving, may have raised the midpoint below what the street is anticipating and the stock is off about 2% right now. >> board room battles, jeff sonnen feld is going to join us with how corporate leaders can be loved and yes, respected at the same time. >> we'll see if that's possible.

and later congressman steny hoyer is going to join us. and yes, you can watch or listen to us live you can do it any time on the cnbc app we're back after this. ♪ ♪ ♪ digital transformation has failed to take off. because it hasn't removed the endless mundane work we all hate. ♪ ♪ ♪ automation can solve that by taking on repetitive tasks for us. unleash your potential. uipath. reboot work.

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our next guest says that business leaders have tilted the pendulum between investor returns and social engagement too far in one direction talking about what he's called the misconception that business leaders have to be feared to achieve the highest results. in a new article entitled it is possible to be loved and respects joining us now is jeff sonneson nen feld this is an idea that i like. most people think in order to get ahead you have to be feared, you have to be mean, you have to be tough you don't think that's the case? >> no, i don't think that's the case i thought that just before the commercial break that you sounded a little bit skeptical but you sound more hopeful now. >> hopeful, yes. >> there used to be a regular feature in fortune magazine, 25

years ago that talked about the ten toughest bosses in america they stopped running the country because they realized those people weren't performing well we never see those lists, at least hopefully anymore. i was recentlyin a board room, looking at two different candidates and the debate is he tough enough or is she tough, it's not necessarily one or the other. can they be loved or respected there was a classic harvard business school professor back in my era back then when i was working behind enemy lines there. who used to say to classes, thousands of harvard mbas were told you can be loved or respected. turns out he was wrong a lot of people get that wrong i'm out here at the close of the milken conference and they were advising people go back to the original and find they say something different. i know you, becky and andrew remember i used to pull in the

milton freedman argument from 1970 to say people are mis miswm misquoting what he says about the community. and mack cyrilly's message appears to be different if you go back to what he said in the prints in chapter 17 is that it's best to be both, if you can. if you have to make a choice between them, he said be respected over being loved but you can do them both that's the idea. we have lots of the ceos we admire most on this show match that. >> do you think that has changed? you mentioned this harvard business professor and how that was beat into the leaders over the years, the people who went on to become leaders do you think that that has changed at this point? you know all of these ceos pretty well, jeff. would you say the common line of thought right now is a kinder,

gentler leadership is in vogue right now? or not >> it's a balance. not necessarily one or the other. we used to consider howard schultz as more of an outlier at starbucks or bernie marcus, they used to -- their annual shareholder meetings were called corporate love fests they were a lot of fun they were revered. you can find people like sam walton and others there was this classic landmark these days they find you can do both and surprisingly a lot of people in the airlines, doug barker today like herb callahan earlier, david neilman of jetblue fame -- >> here's the thing i can't figure out companies like starbucks

beloved, done lots of things for employees over the years and now you have remarkable labor, movements across the country including starbucks in buffalo a labor movement against starbucks, a company that's done amazing things in terms of providing education and health care to their workers long before anybody else was ever doing it southwest, a company that was beloved, supposedly, now having battles with their own employees and labor and their unions so something is happening here even the ones that we put up as examples of doing the right thing for employees and being loved may not be anymore i don't know if there's a shifting winds here? >> did they get meaner or did employees take advantage of their niceness >> this is the question. very good question that becky's got. >> a good question i was hoping becky was going to answer it for me but things are at play there i know it's dangerous to do a list on the show one is, of course, the economy has changed and the leverage

between the managers and the managed has shifted. we now have with the scarcities people have extra clout, power in the workforce and there needed to be adjustments with wages in the workforce secondly, i used to teach labor relations when we had a larger organized labor movement afoot and what we found was that labor organizations, the efforts were most successful depending on the quality of local super vision. it tended not to be the leadership at the top. but sometimes you had rogue abusive bosses on the front line that are a problem for management and that's an issue and third there are some management not anti-union. ups invited the teamsters to organize back in 1919 with the founder saying you can be a great ups and a great teamster but that's a good question we're seeing something different happening in the workforce today. >> part of it has to be look we

have asked a lot of employees through the last couple of years, it's been very difficult, especially people on the front lines showing up every day everybody has been stretched thin, everybody's gone through stressful times and look, it's a worker's market right now. there are more jobs open than bodies to take them. >> it's the labor shortage, you're right, becky is a lot of it but you said two profound things in there one you mentioned at the close, but you opened by looking at what the pandemic taught us. one of the critical pandemic pivots is we are turning the pyramid upside down in so many places in corporate america people we have celebrating on the front lines as heroic. we haven't seen them that way and they're listening to us. we haven't given them the most reagle treatment so there's adjustment of pay and benefits and quality of work

life people paying that, last night president biden referred to a fast food company that raised their wage rates to $15 an hour and suddenly they're finding people that wanted to show up at work so that seems there is some adjustment taking place there. but the meanness, toughness, that's gone by the wayside there's a notion you can do both some people refer to servant/leadership and i think that goes too far for my tesaste there's a religious element there. you're not necessarily working to serve the employees you don't want coward ice here but it's a notion you don't have to be abusive in the way you do it how can you be tough and persuasive as opposed to tough and abusive. >> jeff, it's a fun conversation thanks for making us think this morning. thanks. >> thanks. coming up when we return,

shares of trumped link the spac surging this week on news of a deal to launch the former president's social media platform a look at who is cashing in and cashing out. stay tune you're watching "squawk box" live from the nasdaq market site in times square

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. welcome back to "squawk. you may not know the stock it's known as the trump spac

it was active yesterday on the fidelity platform. 470 million shares trading hands. you can look at it right now it's up 50%. joining us to tell us what it means, axios business editor, the author of the pro rata news letter, good morning to you, dan, kind of incredible to see what's happened to this stock. it's a company that effectively doesn't exist. it's an idea a. dream of sorts potentially for the former president and others to create a new social media company look, how do you get to this valuation? >> you don't aren't we kind of past this point that believing stock prices completely relate to the underlying assets? remember this isn't a dream or commercial product, like we seen with other spacs, flying taxi companies, et cetera this hasn't identify who the ceo will be, let alone the cfo, or head of engineering. this is a tech platform. we know less about this than any

other spac for example, we work in public, when wework announced its spac march 26th, they came out a press release, there was a perspective deck that laid out everything about wework. in this case, we have nothing from this spac in terms of the underlying business except for press release. >> these matches mean it was a great speculation, a speculation by investors that potentially they will one day create a social media company of some sort that competes with the likes of ticket and facebook and maybe doesn't have the same kind of restrictions, which is arguably the benefit of what you will they say they are trying to create fortheir audience >> except for the problems yes, the problem with that is a couple things. one, we do know it's hard to do. andrew, are you a really smart guy. i don't think you would be the best guy i don't think i would be to create a social media company to hire people and have the technical know-how, this is

partisan led by the personality and chaired by donald trump work is running for president you can see the fomc problems facing this thing within it lal -- when it launches >> interesting, boaz weinstein not knowing who was going ob to be acquisition target sold when he heard the news and i wonder whether actually you think other major hedge funds and large institutional investors will sell simply because they don't want to be connected to something luke in. >> i can see that. i honestly don't know who is buying it. the spec ladies and gentlemen it's a trump fan trade if you like trump and want to be kind of in the trump business, this is a good place to be i will say one thing notable about the sponsor of this spac this is his fourth spac. he has yet to get one over the

finish line. it is different, one deal giga energy was ready to go it got fogged down, also notable the spac that was going to buy this guy was basically wuhan, china. there was a little irony of china there especially can't say how many e-mails you did for folks on the street,ing the backstory or background of who they were, that put this together, the wuhan, china headquarters being where they are based as one of those items. thank you, good to see you have a great weekend. >> you too when we come back, spanx founder sarah blake aly and ann chung, on the news they're taking the share of the brand. the deal was all female and an all female board will be appointed. we'll be talking to both of them in minutes later the latest booster

news and what it mnsea for marines. you are watching skwaux. this is cnbc skwaux tv: mount everest, the tallest mountain on the face of the earth. keep dreaming. [coins clinking in jar] ♪ you can get it if you really want it, by jimmy cliff ♪ ♪

[suitcase closing] [gusts of wind] [gusts of wind] [ding] >

. the market rolls on, again on the back of the earnings season >> blackstone's owns spanx. and nap, crack him, drop shares of the social media company getting slammed, driving down other tech names with it. we will get you up to speed on what's driving this move as the second hour of "squawk box." begins right now good morning, welcome back to "squawk box" on cnbc the dow is up 56, 57 points. the nasdaq is down about 30

points s&p 500 up about 4.5 points. we probably should show folks the ten-year that may be the thing that will push this story. the equity story, in fact, around a bit. >> i'm not surprised, it's been moving up pretty significantly stocks haven't occupied it him look at that. >> almost 1.7. >> the five-year hit its highest level since 2020 >> you think about wehat equity can do if things really move, meantime, let's tell you about the other big headlines, walmart saying some u.s. commerce will be able to use bitcoin, coinstar best known is allowing bitcoin purchases. there are currently 200 in walmart stores with plans up to 8,000 across the country bitcoin 63,242

i used to take them to the store and put them in the machine. it's satisfying. but i don't care enough cash or even have that many coins these days. >> i don't either. >> meantime, we are watching shares of intel missing forecast, the company predicted lower profit margins in the years ahead as it tries to regain the lead if making the world's fastest chips and ramping up new factories and saying the shortage of other chips are holding back sales in its own flagship semi conductors there is a bit of a focus on the fed, chairman j. powell announcing major changes we talked about this a lot over the last couple weeks, to personal investing restrictions on senior central officials. policy makers will not be allowed to own individual stocks or bonds officials will be restricted to primarily owning mutual funds. they have to hold those a year and need permission to buy or sell this follows controversies

surrounding two bank fed presidents that eventually led to their resignations, let's see if congress will do the same thing to themselves. >> don't hold your beth on that. let's go to dom chu, there is a lot of news over the last 12 hours that will definitely shake things up. how are you doing? >> so many beg points driving the action the macro-predict is a par-- macro-picture is a big part is of it. snap, social media after the bell reported decent earnings, but it was the revenue miss that caught a lot of investors a little off guard as well as its revenue fwieguidance for the ise there. they cited side issues, it affect texas people that advertise with them. they don't want to put out too much in terms of advertising for products they may or may not have in inventory, many

advertisers are holding back ad dollars at that point. snnapchat, that's low and it's having a ripple effect in the atmosphere landscape right now snap is down 20%, meanwhile, facebook is down 3.35% and 44 for twitter. that will being is to watch. also watching what's happening in earnings, there is still a supply chain issue at play here as well. honeywell shares down 1.5% off the pre-market lows right now. they come out with better-than-expected results it's the revenues that come in lighter than expectation they cut their four-year revenue guidance that will weigh on the industry there. honeywell citing some supply issues as well for some of the reasons they cannot meet the projections they previously had. southwest over evercore inline,

the equivalent of a neutral rating they cited cost pressures, labor market issues, so southwest shares down about 3/4 of 1% if you look at the one-year year-to-date ten-year note, becky mentioned some of the highs. we are currently at the highest levels just about may in the treasury ten-note yield at 6% remember you remember andrew earlier this spring it was 1.76%. that's a level only traders are watching f. we get towards that area, will you get a lot more chatter. back then, this was when we saw the tech valuations taking it on the chin interest rate, supply chain, it's all playing out >> yes, it is, have a nice weekend. i think we will be seeing you more in morning.

meantime, in global market news, shares of evergrande, made a key bond payment they reportedly made roughly a $83 billion payment today, triggered a 30-day grace period, which was set tomorrow, had they missed the deadline, they would have entered a formal default. the cdc officially approving booster shots for moderna and johnson&johnson advisory vaccines, they practice recommending the moderna booster for elderly people and at-risk adults six months after they got the second shot. the cdc endorsingj&j boosters, this is different. everybody over 18, 18 and older who received the initial shot, those boosters could be available as soon as today the panel didn't specify which vaccine should be used as a booster, instead, letting doctors decide whether to mix and match those company's

vaccines we will be speaking with the surgeon general in the next half hour about all of this. coming up, when we return, spanx taking its first outside investment from blackstone, now valued at more than a billion dollars. we will speak to the ceo, blackstone's global head consumer after the break later, shares of snap, they're getting crushed this morning and dragging other media stocks down with it. we will be talking about that stock and so much more when squawk returns after this. squawk returns after this.

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welcome back, everybody. the billion dollar shape wear brand spanx is taking its first outside stake ever it values the company at $1.2 billion. joining us to talk about this is sarah blakely, who is the executive founder and chair woman and anne chung, the blackstone consumer for growth i have to say, we have known each other a very long time. i have watchedthis brand grow and watched what you have done over the years you always said you didn't know

when you'd take an outside investor, but you'd know it when you saw it so what happened why did you do this now? >> for 20 years people have been asking to buy spanx or invested in it. i have operated out of my gut. i said i'll know when it's the right time for the business, the right time for me. i was always very quite nervous about who would this be? and once i met the team at blackstone and anne, in particular, i felt so at ease, it's like we were aligned on what we saw for the brand, the mission for elevating women, it was an all female deal team. it was very natural from the very beginning and it gave me just a lot of comfort that this is the right next step and chapter for the brand. >> how did you run into sarah, was this a chance you ran into each other or you were looking at spanx, you were watching and interested >> we had been following sarah and her incredible story for a long time now. it's a brand we have been loving from afar and something we

wanted to be associated with, so we had been spending a bunch of time talking with sarah and trying to figure out what a partnership might look like and gratuitous and it all came together >> let's back up for the viewers that don't know the story like i do you started 21 years ago, you had $5,000 that you kind of cobbled together because you had been selling fax machines. if that doesn't tell you hong you have been working at this. cobbled the together you did this because you just wanted your rear to look better in a pair of white pants >> that's a great summary. i couldn't figure out what to carry under a lot of the clothes, so, is you know, under garments were flawed you could see them under what we wore him i was a frustrated consumer i had never taken a business class and i wanted to invent this one first undergarment that i knew would change the way i could wear clothes and then when i stood on the manufacturing floor 21 years ago to make this

product, i looked around, i was the only woman in the room that donned on me like i want to speak up for women and advocate for women through product. because the people who are wearing the products all day, making them weren't wearing them all day. i to the, guys, we can make these so much more comfortable and functional there is a lot of things about clothing that hang in our closet because we don't know what we're supposed to wear under it. so spanx kind of became the canvass for our wardrobe, it's like a painting, if you don't have the right canvass, it affects the art and the the painting that became a passion to continue to make things better for women for the last 21 years ago. >> spanx you are wearing. >> i won't zoe you the braleluia? >> no, not this morning. but you are also facing a much

more competitive landscape look at just everybody who has copied, piled on and the idea that some consumers don't want shape wear at this point especially after we just spent i don't know two years sitting around at home in sweat pants so how do you kind of get into that where does the industry stand today? >> well, we've had competition the whole time to me what's happening doesn't feel any different than the last 21 years a. lot of people go into this category and quickly exit it after two years. shapewear is easy to make and hard to get right. but what i'm excited about the brand is the magic we created in spanx and defined a category and revolutionized it, we're doing in apparel and active. the consumers are saying put the magic of spanx in the clothing that i'm wearing, spaenx as you know we've expanded into so many other areas that are taking off and the consumer is thrilled ive get excited how i can make things better, there is a lot left to make better for women.

>> what's the opportunity you see at black tone here why spampgs in why this arena? >> what we saw in spanx is an incredible brand, you know it's a staple and a brand that resonates emotionally with consumers. sarah and i one of our first meetings to sit down and talk about this partnership, she told us the word women use most in describing our relationship in spanx to sarah is grateful that emotional connection between the brand and the product and the consumer is very rare these days. so taking that coupled with this incredible expansion that sarah's brand has seen and built over the last two years in terms of expanding into the broader apparel category, also in the going tal transformation of the business the business emphasized the direct-to-consumer channel and they've seen prior growth prior to the pandemic. that's been the foundation to build off of. >> that's a big deal, sarah when you started out, you were going to nordstrom's and standing in

the stores trying to convince people to wear these things, not that are you not in those stores, but to be able to go directly. >> i tell you, my feet hurt way less i mean i stood for eight hours in kniemans, nordstrom's, tellin people what the product was and showing the before and after picture. now to be able to have such a strong digital presence and have women you know discover the brand and see the magic of the brand through this >> what are your sales direct-to-consumer 51st traditional stores >> over 70%. >> direct-to-consumers, that's huge. >> that's huge him because we started as a very wholesale-based business we still have fantastic wholesale partners, but the digital presence for spanx has i don't know if. >> is that a big part of it, in you watch a brand like nike that has made that transformation >> there aren't many brand that

have been able to successfully make that transition i think what we really saw is the consumer was following the company and the brand. whether they were putting shapewear out or leggings out or jeans out, they were following all of the products and being very loyal to the brand and following it from the whole sale channel in the direct to consumer channel that's what we shaw. >> what are your margins >> we don't. >> that's okay >> let's talk about what's happening in the industry, you did this yours, fought sourcing in america, where was it down in carolina >> yeah. >> you found sourcing when you started making these things. supply cane issues right now have gotten so complicated, inflation has been a big deal, inflation, how do you handle all those things >> we are navigating the waters, the supply chain hasn't impacted us too much. we have been able to plan ahead and go into our most robust

quarter so we feel very prepared for that we're just grateful that women are still loving all the product and able to get it through dot-com. >> there has been a lot of focus on women-led companies and you think of somebody like a reese witherspoon and the interest around her company at this point. why is that happening? and how to you capitalize on it? >> i think the impetus are strong entrepreneurs that recognized reese and sunshine, i think blackstone is realizing the power and potential those entrepreneurs have put forth it's an exciting time in that space. we're proud to be partners with all of those women. >> i guess it matters you were dealing with an all female board of directors and that was on the list >> yeah. it was hugely important. i loved a partner was talking to

me about it and they already recognized that and felt that way, themselves. so it was very wonderful to see and, obviously, having a bunch of women involved, we are the consumers, so that's very natural and organic for how we're going to look at the brand and continue to grow the brand >> what will you do with the investment what do you feed the fund for? what comes next? >> well, expansion internationally for sure this brand has so much global awareness. it will be fun to actually start to deliver and provide products all around the world for women in spanx and expansion in other categories, continue to build out what we're doing >> are you still involved. you are not going anywhere, right? >> i am still involved i still own a significant portion of the business and my passion is product so i continue to want to play a real big role in product and overseeing that, so. >> so, sarah, it's been 21

years. >> my baby is like out of college. it can now legally drink it's 21 years. >> did you, when did you first start thinking this was going to happen that this deal would be the one? how long was this in the making? >> i would say months, five months maybe, you know, talking and really thinking about it and i'm really big into signs. i got a direct sign that this was the right partnership, so. >> what was the sign >> oh it was really, i'll talk about it maybe in my book one day or something but i got a very direct sign i got a sign to start the business and i then i got a sign this was the right thing to do that made me feel really good. there were a lot of things you know happening that made it very clear me that this was the right partnership. >> and having come through the pandemic, what happened to the consumer during the pandemic what did you notice in terms of

changes and where are we right now? where is she right now, the consumer >> well, i've seen this trend for a long time, pacific, minorth star was comfort 21 areas. i got to make things more comfortable. we're really uncomfortable in the under garments ade i guess she's voting for comfort even more through the pandemic, i am happy the industry and everybody is stepping up and saying this is a priority. we need to focus on this but that's our core strength so ve shame cous for all the things that we make that were really comfortable that she could be in her home and work from her home and manage the pandemic. i have four small children i lived in spanx leggings throughout the whole pandemic. >> sarah i want to thank you very much nor joining us, anne, it's a pleasure for meeting you. thank you for coming here, too we hope to check in with you as this continues you get your next plans under way, too. >> thanks, becky. >> great, guys, good to see you. >> great interview coming up, when we return,

there is a growing debt problem among americans trying to pay for college loans. sharon epperson has a preview. >> reporter: they've taken out student loans for themselves, their kids, the balances kept growing until the government offers pandemic relief next year they have to make payments again, some aren't ready. some added another debt burden that could jeopardize tear uilnt feeture. we'll have more on this double debt crisis coming up after the break. break. >> check out this coverage... you still got it coach, you still got it! i never lost it! yeah! [aflac!] you see that coverage? with that wingspan i see why you got more rings than a cell phone. there's always room for one more. yeah! get help with expenses health insurance doesn't cover at aflac.com so to accelerate growth, should all our it move to the cloud?

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, now the answer to today's aflac trivia question. california is the most populated state. which state is the least the answer -- wyoming. population 581,075 welcome back to squawk americans owe a total of more than 1.8 trillion in outstanding student loans and more than 40 million americans of federal student loans will have to start making payments again next year that debt burden may have the greatest impact on older borrowers, some of whom are facing a double debt dilemma cnbc correspondent sharon

epperson joins us on all of it. >> reporter: andrew, the pause on federal student loan payments end in january it may be a shock to the day-to-day budgets and the overall debt burden for many, like a program manager in houston. >> my debt is about 36,000 it took me over 30 years to get that amount. my original student loan wasn't close to that amount i think it was maybe $17,000 with the interests that have accrued with it over the years and also taken out forbearance, it has grown to 36,000 >> although there are fewer older borrowers, like short are still paying off student loans, they often have higher balances than younger generations with less time to pay back those loans, new data shows has the while jen debo was owed less than 27,000, gen x and boomers

owed 50,000. workplace retirement savings plans are facing a double debt crisis. >> you see almost double the number of people with 401k debt owe double, that's a financial hardship >> and that can put older americans in a particularly precarious position for retirement, andrew >> it seems cases of those are already in financial distress are making it worse, what percentage of boomers are taking loans from the 401k loans and student debt >> looking at the data about 30% of boomers and 32% of gen x borrowers have a 401k loan compared to 17% and 23% of all 401k savers in those age groups who have taken out a loan from their plan

cassandra told me she is stuck about tapping her nest egg but feels she is too close to retirement to do that. >> people student loans are taking up 401 k numbers, could they offer more assisting programs is that in the offing? >> yeah, you know, it's already starting to ramp up. right now about 17% of employers offer student loan payment assistance, another 31% plan to offer it, according to employee benefit research institute about 70% said employee engagement increased since 2020 and are also more innovative, using unpaid vacation time they're putting that toward paying off student loans or to a 529 plan so it's interesting what companies are doing if terms of new perks and if you ways to help their employees pay down their debt >> hey, sharon, before we let you go, obviously, there is a lot of conversations in washington and conversations about riding people of student debt how many people do we think are

just waiting for that? i ask, because i actually know some people who are remarkably wealthy, seriously wealthy people who have not paid their student debts because they think one day the debt may get wiped out >> you know, you are saying exactly what cassandra short wants to happen. there are many borrowers, waiting, hoping there will be a broad forgiveness plan out there. but they also know that right now that looks unlikely sothey need to come one some type of plan to pay down this debt cassandra doesn't know how she will come up with a couple hundred months necessarily she knows she has to and is working toward it. she has e-mails, texts, phone calls to let her know january 21st, 2022, that is when this payment pause will en. that is when you will figure out when to make those monthly payments again. >> we appreciate it very much. it's a pointed story.

>> sure. >> there are a lot of folks struggling with these payments >> that's an excellent question, though, the idea that wealthy people are thinking the same thing, it's not going to be means tested even. >> my only hope is if we ever do it, i don't know whether i support it or fought, literally forgiving loans, i hope it's means tested, otherwise, it would make no sense. >> if we do this broad forgiveness, meaning that the u.s. taxpayer will foot the bill, it never forces colleges and universities to make sure that they are making sure they refine their products and doing the best they can and keeping to the right parameter zplers you tyou. >> you talk about inflation. >> it will outstrip inflation for decades, why is that is that what would ever be the thing that puts the hold on that. still to come this morning, snap shares tumbling after disappointing earnings we will talk about the numbers and with a strategist ahead. plus the cdc announcing there is now a booster shots

rgn nehave the latest from the sueogeral dr. vivek murthy they tuned you are watching "squawk box". this is cnbc our clients come to us with complicated situations that occur in their lives. for them it's the biggest milestone, the biggest accomplishment, the sale of a business, or an important event for their family. for them, it's the first and only time. we have seen this literally thousands of times, in thousands of iterations. ♪ ♪ i am vince lumia, head of field management at morgan stanley. whether that's retirement, paying for their children's college education, or their son or daughter getting married, our financial advisors need to make sure that they are making objective decisions, every step along the way. every time you hit a milestone, an anniversary, a life event, the emotions will run high.

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welcome back to "squawk box" we are live at the nasdaq market site in time's square. the futures, take a look, the dow up 500 points, the s&p up 6 points, on the other hand nasdaq looks like it will open lower 3-and-a-half point right about now. lawmakers in washington, backing off plans to raise corporate taxes against the wealthy are now scrambling to find alternative ways to offset costs. ylan mew joui joins us. nobody can decide how to pay for it >> yeah, those carrots can be an unpopular vegetable, becky, democrats hope of raising those on corporations and individuals is dig in opposition to kyrsten sinema in baltimore last notice, president biden acknowledged despite 100 hours of negotiations, that i have reached an impasse. >> where she's not supportive is

she says she will not raise a single peppy in taxes on the corporate side and/or won wealthy people, weird. >> the democrats are still trying, they spoke with her yesterday for half an hour and was opened to his ideas. both are committed to getting a deal >> i made the argument for efficiency in the tax policy and the way you do that is simplicity of corporate increases and pointed out that not only are they efficient but they weren't punitive. this was still pro-growth economics. >> and neil also planned to talk to senator joe manchin the two have a good relationship because they worked together on a bill on pension plans and m manchin sounded supportive saying businesses are going to pay. one of the challenges is other options for raising revenue are

new, complex and untested. he said many ideas need to be vetted there is not much time left to do it. >> it would have to be vetted by october 31st or this gets kicked to next year >> i don't even about kicked to next year. they feel they are in the 9th inning, now to debate proposals completely new like the tax on stock buybacks, like the mark to market, billionaire asset plans, some are extremely complicated and how much debate are they going to need over those new proposals if they want to get this done. if not in the next few weeks, certainly by the end of the year >> ylan, thank you very much coming up, when we return, snap shares are getting he it yet again. they're snapping to the onside of the pre-market after sales of privacy challenges that apple hold out open its iphones?

yes. we will discs thuswi a top analyst right after the break. analyst right after the break. >> [ding]

that's the thing about claims, you see. they don't happen on your schedule. i mean, take a chestnut, it doesn't just say “oh, beg pardon, sir, but is now a good time for a jolly bit of window cracking?” i mean, if they did, you wouldn't need a geico claims team that's available 24/7. but, near as i can tell, chestnuts don't talk. or maybe they're just really quiet. geico. your claims team is here for you, 24/7. well, got things to do mr. chestnut, so... . welcome back to "squawk. snap reported it missed revenues in the third quarter accepting shares tumbling 25%.

that equals a loss of $28 billion. just to future that in perspective, that itself the market cap of best buy or southwest airlines so what's this snap investor do? that's the question, richard greenfield, co-founder, you have been a snap fan, let's talk about whether this is a great buying opportunity or whether you think there is larger challenges in store? >> look, we've had a sale on snapchat, a buy, we have not always liked the stock when we had a sell it was when there were engagement troubles, there were questions of users fleeing to other apps. this is not about that this is snap napchat's engagemei at an all time high. they're engagement strong. this has nothing to do with usage, knack, no consumer knows this is a problem. people are using it more than ever and engaging deeper this is an advertising problem

it's a short-term problem. my guess is facebook put more resource than snapchat did i think they made a mistake. evan and his team felt bad there is no doubt, there was a screwup on snap's part, yes, it was caused by apple. this was snapchat relying on apple, that was clearly a mistake. the good news, andrew. >> yeah. >> i would say the good news -- >> one second. let's go back. you said they're going to build their own systems to do this. >> they have >> can anybody build a system that's as good a mouse trap as used to be available when people actually said, yes, please track me >> look, nothing is going to be first of all the system that you just basically described has basically been the system that's existed since the beginning of sort of the mobile internet. so i don't know i think to answer your question, will there ever be a system as good the answer may be, i don't know. that's probably up for tech

companies to figure out over the course of time are there going to be solutions that are quote/unquote good enough i think the answer is there are, there already are and there will be even better solutions that accomplish this. to believe that all of a sudden advertisers are going to stop advertising on the mobile internet is absurd i think the reality is there are going to be solutions. i think you are seeing snapchat talked about there is a solution they've rolled out to half their advertising base they are probably one-to-two quarters behind where facebook is, that will hurt the stock this morning remember internet companies, any time we look at them whether netflix or snap is chat or facebook, it's user engagement if investors are looking at this. >> sure. >> if you are playing between now and year end, i don't know how much the stock is going to move if you are looking between now and a year from now, this the an incredible buying opportunity in snapchat this is one of those few times,

something is broke, short term, it's fixable will you look at this stock i think breaking if you highs a year from now. it could that a couple quarters, the next couple quarters will be a problem. >> if you can buy facebook and nap is not which one do you buy >> look, i actually would curve left and take the other door, twitter is probably the best position on a relative basis i think you had ned siegl on he's talked about, the cfo of twitter, how were earlier in dr, direct response performance advertising. that has been the achilles heel for years, brand is strong you heard last night from snapchat, brand advertising is strong this is a performance in dr problem. i think at the margin twitter is the one that is hurt the least because they're not in that business nay want to be it's a huge growth opportunity it's not where they are strong today. >> that has to be an architect for what you think will happen

to the rest of the market, too if you think this the a stock that you should buy, it might be money parked for a while before you see a big return that kind of is telling, you don't think there is going to be a lot of great opportunities and the market doesn't run from here >> becky, i think you are raising an important issue first of all, it wasn't this apple ad issue that snapchat raised they also raised supply chain issues we've known about auto companies pulling back on tv advertising and having major supply chain issues obviously, that's not a huge category for snap chat, clearly, supply chain is having a bigger impact i don't think it's the majority. i don't think it's 40 or 50% of lower numbers. i think the apple issue is the dominant one, the supply chain issues are something we are all figuring out and thinking out how broad is the impact on advertising? it's not clearly impacting tv advertising. i think you will see incredible numbers oust of roku and there is just not enough supply.

in any category where there is enough supply, whether tv, traditional tv or broad or mobile, this is an issue that we are all thinking about right now and trying to figure out how broad because there weren't. internet chats, sort of advertising chats did not focus on this being a meaningful issue yet. not so much hoff an issue right now. >> rich, before you go, trauma, spac, the if you trump social media company, worth taking a flyer? >> andrew, we were talking about it on the podcast this morning it's sort of funny when you look at the fact that it doesn't just want to be you know a twitter or a facebook if you look at the slide deck, it's one of the most amazing slide decks, they want to be twitter, facebook, disney plus, ultimately stwiep, aws, azure. the goal is they basically want to be the entire internet.

the funny part is they're not building infrastructure on day one. so i think the question like you saw parler get shut down quickly because of things they were doing. the question the, it's not an infrastructure play at first will it get washed out >> it may not get off the ground they have to use somebody else's platform and somebody else may not let them use the platform. >> again, i don't know what the content will be, if it's like parler, they will run into the same problems. >> always great to see you have a great weekend. >> thank you prmplts when we come back, the cdc approving booster shots. we will speak to the surge dr. vivek murthy after the break. skybridge capital anthony scaramucci will be our guest "squawk box" will be right back.

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or xfinity rewards members, get the inside scoop on halloween kills. just say "watch with" into your voice remote for an exclusive live stream with jamie lee curtis. a q&a with me! join for free on the xfinity app. our thanks your rewards. some news just in from pfizer, an fda briefing documents, the covid vaccine had 90.7 efficacy in the clinical trial of 5 to 11-year-olds the company said the size of the covid vaccine that the size of the trials they've run so far, it's not large enough to detect potential risc of myocarditis and they will be running expanded trials after approval in five authorization safety studies to continue to track that this all comes as the cdc has

announced there is a booster shot available for all three covid-19 vaccines that are offered in the united states those eligible can also choose which vaccine they prefer as their booster and joining us with the details is the surgeon general, dr. vivek murthy. thank you for being here. >> of course it's good to be with you today >> so there has been a lot of confusion around the booster shots. at this point anybody who has had a j&j vaccine is eligible for a booster shot people over the age of 65 are eligible for it. and then there are a lot of other qualifications of people who are at heightened risk for that as well i think the question is, are they eligible for this and can get it or are you saying they should >> well, it's a great question so let's just review what the fda and cdc are recommending they're saying number one if you are a john son&johnson recipien and someone who got it two months ago or mo, you are now eligible for a booster shot. second they're saying if you got

the moderna or pfizer vaccine and are you more than six months out, you are eligible as well if you fall into one of three high-rick categories, over zievgs you got other medical conditions, diabetes or high blood pressure or live or work in a mace where your risk of covid-19 is greater, the terms of you should get that or it's a possibility or my general recommendation is for people to get the boost fer they're eligible here's why the point of the booster is to extend and enhance the already good protection people have been getting from the vaccine we know some vaccine, many vaccines that we've looked at over time, some do decrease in efficacy over time, it doesn't mean they don't work well, it means they sometimes need a boost to keep the protection going. >> we have heard this week that in the uk, the numbers have increased pretty drastically to the point it's concerned doctors and hospitals in that country. they are now asking for some restrictions, whether that be wearing face masks or other issues do you know why the case count

is up there? is it because the vaccine's efficacy is worn out sit because there haven't been enough vaccinated people or something schnelz. >> well, there could be several factors counting for the uk's rise if cases, one i will point to is the fact it's getting colder, when the weather gets colder, we know people go indoors, indoor settings are a better setup than outdoor settings, we also know the virus in general is better transmitted in cold weather why so many spread during the wbinter months we had a big surge what is different for us in the u.s. is we had 190 million people vaccinated 360 million are not vaccinated that's where we have work to do. we want the protection that will help keep our numbers down as winter approaches. >> one group that has not been allowed to be vaccinated are children anybody under the age of 2 23 are anticipating that that approval will come in the next

couple of weeks. how confident are new that approval what concerns do have you on the news we just heard from pfizer saying that 90.7% efficacy is there in these clinical trials for kids age 5 to 11 they admit the trial is not big in off to really determine or defect if there are potential risks of myocarditis >> well, look, this is a very important landmark we are approaching. which is a possibility having a vaccine for kids under 12. i say that not just as a surgeon general and a doctor but as a dad of two kids under 12 eagerly awaiting this moment but what's happening is the fda is reviewing the data. the fda is reviewing it right now. within the next few weeks, i anticipate we will hear a decision their advisory committee meeting, the cdc advisory in the first week of november after that we should have recommendations on what to do. here's what's important to know about kid, though, the fda will look carefully at two

parameters, one, is this vaccine effective in kids under 12, football two, is it safe as a parent, i want to know the answer to those two questions before i make a decision of getting my child vaccinated. i think millions of parents do as well, they will not put forward a recommendation to get vaccinated if they don't feel confident about the safety about rare side effects there is a reason we follow, even after the trials and thorgsz authorization is given there are rare side effects. off ma i not see them. again, the point here is that there is going to be likely strong benefit to getting vaccinated if the fda chooses to authorize it we know there is a lot of covid around we know it is not benign in children, thousands have been hospitalized, many have struggled now with long covid, which prolong symptoms of covid. they can last months after infection. >> doctor, a lot of business leaders are watching the broadcast, many have already put

in mandates for vaccines how do you think about mandates for boosters which is to say that for those over certain ages over time as you said, the efficacy is going to wane and there is going to be questions about whether people can affect others. that's been the whole purpose of this i know there is a debate about vaccines, whether it is to prevent infection completely or hospitalization on the other end, but what's your advice to those watching this morning? >> well, first, i would sa i to the businesses that have put in requirements already, i just want to say that that is sa move in the direction of public health and creating safer workplaces, safer places for people to buy products, to get groceries, safer places more broadly for kids to learn and universities and other settings which now have requirements. so it's a step in the right direction in terms of creating a safer environment. in terms of boosters is whether or not they end up being a part of the requirement will depend

on the cdc's definition of who is fully vaccinated. root notice nau they thai say the definition remains, someone that has one shot of j&j they maychange that overtime f that does change, a booster may be a part of the requirement for now, a booster is not a part of what's required to be fully vaccinated, not a part of the requirements. >> as a doctor, i know you won't want to weigh if, since it's been let up to doctors, you can be our doctor, if have you taken pfizer and moderna, you are looking to get a booster, which one do you take? >> great question. you know if you have pfizer and moderna and did well with your primary series, it's quite reasonable, the food news for johnson&johnson, you got good options available. the data shows folks that got j&j and boosted with moderna and pfizer, they had a strong anti-body response, they're those soldiers in your immune system army, it also showed, if

you got j&j as a booster in the clinical studies look at outcomes, you had a high detection of the disease, the bottom line is we have good options, flexibility in terms of which vaccine you get. the boosters will extend and enhance people's protection so if are you eligible, i would urge people to go out there and get that booster shot. >> dr. murthy, thanks for your time today. >> of course take care. >> thank you coming up, crypto making big moves, thanks in part to the new bitcoin futures esf, we will talk to one investor who says he now owns over $1 billion congressman steny hoyer will join us to talk about biden's spending and taxes stay tuned much more on squawk after this it's another day. and anything could happen.

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you're more than just an investor, you're an owner with access to financial advice, tools and a personalized plan that helps you build a future for those you love. vanguard. become an owner. good morning, lots of market news on friday, futures unmixed. two do you components are out with quarterly results social stocks getting slammed, thanks to a huge fall by the parent company meanwhile, cdc clearing booster shots and johnson&johnson covid vaccines, millions more americans are now eligible to get extra protection from the coronavirus. and president biden saying there aren't too many more issues to work out before democrats have a

deal on a big new social spending package, but the question remains, can lawmakers get the ball over the goal line? we will see in a couple minutes. we will ask steny hoyer. the final hour of "squawk box" begins right now ♪ good morning, everybody. welcome back to "squawk box" here on cnbc we are live from the nasdaq market site in time's square i'm becky quick along with andrew ross sorkin joe is out today, watching the u.s. equity futures. remember, yesterday the s&p closed at a record high. this morning it's indicated up by another 6.5 points. the dow was down slightly yesterday, that came out after two days of gains. it looks like the dow is up2 yes or no points then have you the fax, there have been concerns about snap, we will talk about in a bit.

that caused pressure on a lot of technology stocks bringing the nasdaq down by about 25 points below fair value treasury markets is something to watch, the yields keep ticking higher, especially on the long end, right now ten-year note is zealanding seven basis points away from hitting 1.7% the big question is, is there a level where higher interest rates would have a negative impact, damper stock prices? haven't seen it yet. and some breaking news from pfizer this morning. the company says it's more than 90% effective at protecting kids from infection this data comes in new briefing documents and concerns children ages five and 11, we were speaking with the surgeon general, there is an expectation at least the fda will approve this, kids that age would be allowed to get vaccinated as early as early november. >> of all the big stories investors will be talking about this morning, shares of snap plunging in pre-market trading

the social media company warning of slowing groetd due to recent changes in apple's privacy rules. they make it harder to gather information from users and target ads snap did beat analyst's third quarter profit you see investors don't seem to care american express higher after they reported third quarter earnings, revenue above estimates, the results were driven in part by record card member spending. honeywell were flat after they posted a third quarter profit above expectations revenue did fall below honeywell said it's seen small growth and seen supply chain challenges, that stock has dropped. >> it first came out, it dropped 2%, it was 8% organic growth very strong. they alsoed a margins that were impressive, 130, and more than

the streeted a been anticipating we will deep an eye on it. for more in the markets right now, let's turn to cnbc commentator mark santoli, maybe add to that, mike, a market expecting perfection on all of these things if you beat expectations, it may not be enough to give your stock a boost this time around. >> that's for sure, it seems hike overall moving in the right direction in terms of aggregate earnings growth, potholes along the way, the overall s&p 500 you mention as new high, new highs are bullish. it's not necessarily a reason to fear however, seven straight days up in a row in the s&p 500, it's kind of ban slower trudge higher in the last couple of days a lith little bit mixed. just enough to get back over the edge a lot of the stuff i sort of look like, it looks a little like early july in terms of this

upward creep in the markets, long winning streak. a lot of the sentiment data is very similar that was not necessarily a scary moment in the market, sometimes it will flatten out from here. now the growth versus value trade has an interplay with the rising yield story on a year-to-date asis, it's kind of fascinating, almost a dead heat here i have been talking about this, now, growth had a hard time when yields were surging in the spring and again in may when we made those highs in ten-year treasury yields, value did fine, bank and cyclical stocks carrying the way what's interesting, we have a rebound pretty much in unison across styles growth versus value. it definitely calls into question it's been smart to call into question this mechanical relationship between higher yields and lower nasdaq growth stocks nothing says it has to be that way. right now i do think you've had a little appreciation of the longer-term earnings power, the growth stocks, plus they also were very oversold in september. so, yeah, we got cyclical

leadership it's not throwing a shutout against the growth part of the market take a look how the market is navigating that yield story and who is beneficiary of inflation and victims. this is real estates and banks doing extremely well the s&p is up 20%, you have social outperformance. the social media struggled before snap's news today, facebook has been a little of a wait recently, consumer staples not really in the earnings reports doing that well in terms of perfecting markets, even though they trying i do think the market is well on its what toy try to discount a lot of the big macro-forces we are all spending so much time talking about today. >> in terms of the consumer companies, even the ones that are effective at passing on the costs to the consumer, there is obviously questions about how long that can continue you can pass on four, five, 6% price increases, once you get

beyond that it's a question whether they come back or trade down >> nobody really doubts the ability to get price increases, but you know it's sort of out of their hands to a degree and margins next year. relative with respect to stocks, they're not very well loved. there will be a moment people will appreciate the insteadiness again, we may have to get through this period. >> thanks, mike, see you later. meantime, the federal reserve making big internal rule changes, steve leishman joins us with the latest. steve. >> good morning, andrew, the federal retv announcing sweeping new rules in response to a comparable interest controversy. it came on the same day an e-mail was revealed showing the fed records office told top officials not to trade during the pandemic because of the potential appearance of conflict the march 2020 e-mail first reported in the "new york times" obtained by cnbc says in light

of the rapidly developing nature of recently and upcoming system actions, please consider observe ac trading blackout and say void making unnecessary security transactions for at least the next several months. the e-mail potentially changes the narrative of this conflict of interest controversy that led two fed bank presidents to resign some cast the trading at benign, normal fed trading action gone but only noticed by the public they show it was sensitive at the time the fed was responding to the pandemic to emergency access, the ethics office warned officials and was warned new rules should adjust future conflicts. the rules would prohibit purchase of individual stocks, bonds and securities and par them from entering into derivative transactions, investments would be limited essentially to mutual funds and obtain prior approval for

transactions they will have to hold their investments for at least one year and no transaction will be allowed during periods of heightened financial market stress finally, reserve bank presidents now required to publicly disclose trance agency within 30 days, board members and senior staff currently do that, andrew. >> okay. you think, are there any fed members you think that may decide we talked about trying to get quality people on the board, do you think there are any med februarys that will leave as a result of this do you actually think it will make it hard foretr fed to get the qualified people we seep saying we want >> i don't think so. i mean, if you really want to know, the diversity, i think the fed lacks, yes, there is definitely a lack of ethics diversity. i think there is a lack of wealth diversity on the federal reserve. we don't talk a lot about that but a bunch of these folks have a lot of money i think the idea they were trading, it didn't occur to

them, hey, this was a big deal or potentially send e send it to the wrong signal out in the public maybe if there was wealth diversity on the feds, somebody would say, what are you guys doing? apparently, other than this memo from the ethics office. >> steve leishman, thank you, sir v. a great weekend. >> pleasure. still to come this morning as one of the biggest weeks for bitcoin in months comes to a close. we will ask anthony scar much, where it goes next cuff always watch or listen live on the c nbc app stay tuned "squawk box" will be right back. >> >

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to your new address online in about a minute. that was easy. i know, right? and even save with special offers just for movers. really? yep! so while you handle that, you can keep your internet and all those shows you love, and save money while you're at it with special offers just for movers at xfinity.com/moving. . welcome back to "squawk box", everybody. we have been watching the futures. it continues to be a mixed market the dow is up 78 points. s&p's higher, too, it's up by about 4.5. tech stock is under pressure. >> walmart says the customers at u.s. stores will be able to by bitcoin in kiosks. right now, they're at 200 around the u.s. they plan 8,000 eventually

so we'll see whether people can get behind bitcoin at walmart. that's one piece of bitcoin news, it's hitting a new all time high in the futures based etf started flat on tuesday. the next guest says he owns about a billion dollars, joining us is anthony scaramucci, fonder of skybridge capital and cnbc contributor. you started with what 400 million, anthony >> it was a little under that. this was probably around 300, y yeah, good morning we started talking about this in march in the beginning of the year we were establishing our position we had a 100,000 price target for year end i still think bitcoin gets there. there were several things that happened this week in addition to the bitcoin futures etf bank of new york has announced they will have institutional custody by the first quarter, andrew there is a lot of institutions that won't store bitcoin in a

non-carterred bank with bank of fork entering the marketplace, that's going to increase the demand. you know you and i have talked about not seeing institutions, but we are now seeing institutionss in the market. places like houston firefighters, harvard and yale, entering the bitcoin base and the supply is shrirpging, you got all these people holding their bitcoin, including minors, we're very optimistic year end for the price of bitcoin >> $100,000, kathy woods at your conference says 500,000 is where it will be just in the next couple years >> well, kathy is saying that if we can get to a billion she thinks by the end of 2024, these coins will trade over $3500,000. right now skybridge research department, the guys on our team, they're basically saying we got about 180 million

wallets. if that's the case that billion dollar target, andrew, is very reachable. so, you know, bitcoin reached escape velocity this week. the government has more or less given a tacit approval to own bitcoin, so there was a gateway there, can't really own bitcoin until the government opines on it think about the vaccines, there is people that i won't take the vaccine unless the fda approves it, that's the same metaphoriccal analogy. >> it has improved, gary gensler sort of side stepped the issue in a unique way, which is to say, okay, you can bet on the future of the thing, but you can't actually bet on the thing, itself, at least not the way we bet on them today? >> yeah, i think it's close enough you and i can split hairs about the meaning of all that i think what gary is basically saying is he is comfortable with the price discovery in the futures markets. he's fought saying he's not comfortable with the bitcoin cash market. he just needs to regulate the bitcoin cash market and, of

course, the cftc, something he was chairman of for many years has been regulating bitcoin futures so we can split the difference there but i do think that is s a big opening. i think that's the reason why you are up over 50% in bitcoin in the month of october. >> when you think about regulating the cash market, if you will, what do you think that looks like and when that happens, you can look at it two ways. you can look at it, it depends how it happens, i imagine, now it's here to stay and, therefore, it has even more value or you depending on how severe the regulation is, it could be tougher, right? >> yes, so remember, it's easy on stocks, they trade on exchange you get to see the order flow in a two-way market it's a little less easy on bonds, because of the massive size of that market, you are seeing enough of the order flow to know there is no price

manipulation i think in bitcoin that's happening if you look at ftx, coin base, pick the exchange, are you starting to see that scale. do i think the sec will get comfortable with this. it's anybody's guess when they will do that but i think it was seminal i think area is letting people know, he doesn't want the united states to lose the mant emof until leadership nobly he knows bitcoin in decentralized finance will be a big part of that story in the coming decades so that's where the opening is ultimately, it's about price discovery. they want to make sure things are never manipulated, andrew. >> does it bother you nobody is selling bitcoin? i know you know that the a feature, not a bug nobody is selling it they're holding onto it w.cy great as an investment thesis. in terms of actually having real liquidity in the market, discovery over time. i imagine at some point people will want to exit this, pause

they will want to actually be able to go off and use it, as a currency or otherwise? >> listen, bitcoin is a store value. you look at a $10 trillion market capitalization for gold i think people look at they own a digital piece of real estate it's sort of like waterfront, like hampton's ocean-front property they don't trade that often n. bitcoin's case, it's the apex predator in the space, i think people are seeing that this could be and a lot of people sell it's ten times better than gold let's say it has a 1.5 market cap versus a 10 million and somebody that's studied the fundamental amounts does not want to sell right now, moreover, there is huge demand coming so for those reasons, andrew, i don't think you know you got 85% of the retail investors fought selling despite price wings.

but, yeah, you are right at some point people will sell think about amazon in its early days and the stability of amazon today, this is still a new emerging technology. >> what happens when bitcoin gets to the maximum that can be produced what do the minors do? this is a big question in this, in this bitcoin world right now? >> listen, these coins will be mined until 2140 obviously, they're having every four years the price has gone up a lot. the incentives are there for the minors, eventually after every single bitcoin is mined, there will have to be a transaction fee associated with these transactions it will be diminimus, of course in comparison to the banks and the credit card companies and things like that that's way off, we're talking 50ish years before that happens. >> anthony, i got to have you weigh in on the trump spac >> okay. >> your former boss. >> listen, i want that thing to

go up like another ten times okay the more it goes up, the less likely hd donald trump is running for president in 2024 so i'm rooting for that spac. i hope that thing is a 10-to-1 move i want it to move like bitcoin, andrew, how's that >> would you buy it? >> would i buy it, no, i wouldn't buy it. i don't like buying things for my health. i'm not into cannabis or media disinformation and garbage propaganda, so, no, i would not buy it i try the stay away from them. they're sort of sin stocks if you will >> for initial investors out there, some in the digital world not knowing this is what they intended to buy. you saw weinstein dump his shares making a moral protest. deshaun and others have head

fund what should they do >> they should follow weinstein out the door they should sell it. like i said, i'm torn because i want the thing to do well. he's a danger to our democracy he was a part of the insurrection i think he's a domestic terrorist. so i want the guy out as far away from politics as possible and i want that once great party to rebuild itself. remember, we have a beautiful country, wonderful, colorful mosaic of people they should expand their ideas and reach with the voters. they shouldn't be contracting and going back into the '40s and '50 with nonsenseiccal rhetoric. i wish him to stay out of the game i wish him well. i want people that are not working in the interests of america and the institutions of our democracy to be a part of our political process. >> anthony scaramucci, always

holding back >> yes i was alittle reserved for you today. >> very reserved >> so sarcastic. >> no coffee. >> have a cappuccino when we come back, president biden wants half a trillion for his social infrastructure bill now it looks he will be lucky if he got 2 trademark we will speak with steny hoyer about the state of congress. it is tough to follow this stay tuned this is cnbc. stay tuned this is cnbc. >> uhhh... could we adjust our plan... ...yeah, like if we buy a new house? mmmm... and our son just started working. oh! do you offer a complimentary retirement plan for him?

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some global market news for you today, shares of evergrande are on the rise after the chinese property developer reportedly made a key bond payment, the embattled company reportedly made the roughly $83 million payment today after missing it last month missing it last month triggered a 30-day grace period which was set to expire tomorrow f. they had missed that deadline, it would have injured formal default. you see the shares up 4 and a

quarter percent. that's a gain of 11 cents. let's look at shares of chipotle, same store sales beating forecast, commerce returned to eating in restaurants and paid up for smoked brisket and menu items. it was the first interview with brian niccol they were able to pass the costs on to consumers. examiners want fritos and bowls. how much on president biden's healthcare package house majority leader steny hoyer will join us next with a live update. you are watching "squawk box" on cnbc cnbc (vo) while you may not be running an architectural firm,

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welcome back, everybody. president biden sounding optimistic about democrat's chances to pass major upgrade to the nation's social safety net a cnn town hall meeting last night, the president said he thinks lawmakers are close to a deal he also revealed he thinks corporate tax hikes are unlikely to be a part of it joining us right now to give us the latest on what's happening

in the shouse house majority leader steny hoyer thank you for being here i have to admit hearing all of the things in play last night, it made me question if we were further or away from a deal getting done what can you tell us >> there is a lot at play, the president wants to get this done the majority leader and all of us want to get this done asap, which means, we'd like to give a frame at the end of frankly today, but no later than the end of the weekend and the president has been, whoing around the clock, talking to all the member who's are intimately involved, those folks we need and you've heard him i think the latest talking about the latest the latest was last night when the president said he thinks we will get a deal done he thinks we will move forward he thinks we will pay for it i think that's certainly our objective and intent, hopefully,

we'll get there. >> i got to tell you, what i heard last night made me think even the most basic framework, they have been agreeing on that several months with a holdout. it seems that is all in play at this point the idea that kirsten sen my doesn't want to raise the taxes on the wealthy or corporations, how does the progressive wing of your caucus feel about that in the house? >> look, becky, let me say this, i have not talked to kyrsten sinema, who is a very good friend of mine about this. she has been talking obviously to the president the president's people as well as the majority leader in the senate so, i don't know specifically. but what i believe is what she said is she doesn't want to see tax rates go up. that does not mean that the tax, that the thing, the money people pay in taxes is not increased. what do i mean by that frankly, when you take some of the richest people in america that pay no taxes, they don't do

it because the rate is x, y or z. they do it because the loopholes or tax preference items, whatever you want to call it, they utilize obviously, if they're in law, they utilize it, every american would do that but having said that, you don't have to change the rate you may have to change what's covered, how you assess taxes due without raising the rates. i think that's what she means. at any event, the president made it clear last night, that we're going to pay for whatever sum is ultimately agreed to as you know, that's very flexible we have as low as 1.5 mentioned by senator mannequin and 3.5 being mentioned by bernie sanders and that's what we mark to in the house. so, that figure is still flexible and once that's decide, and i hope it's decided very, very

soon, then we will fill in the blanks on what we want to do with this program. what we want to do with this program is, obviously, make sure that children and families are on solid footing and that we raise children in a way they're safe, well educated citizens in addition, we want our best in infrastructure we want to take care of climate and we want to take care of healthcare in particular on healthcare, we want to expand the people who are eligible that's why we want to deal with those individuals who are not covered in those states by medicaid and we want to deal with making sure that it is an affordable care act and by that, we mean we want to bring down the cost of the premiums and co-pays and deductibles, as we did in the rescue plan. we want to have that continue so that everybody will have the security of being covered by healthcare >> you can't do that on 1.5 trillion

what do you cut? or play with the numbers and say we will only do it a couple years? >> you can do either or both, obviously, becky i think what is going to happen is, i personal liam in the camp of do fewer things and do them well make sure they work exc effectiy i think it's good policy and also good politics but i think there are obviously a lot of people involved there are a lot of interests and priorities of people so we may have a broader expanse that that. that has not been decided. you are right, the money will depend on what you can or can in the do >> let's go back to how you raise that money again, if you don't raise the flat rates for businesses, if you don't raise the tax rate on the wealthiest individual, you try to find other ways to do it. you are talking about irs enforce. it sounds to me you are talking other things, maybe something

market-to-market for people who haven't sold their stock or the securities if they increase in value, you'd tax them on it anyway just for holding it >> that's sort of like a property tax >> kept except my property going going up or down by 20 or 30% most years again the property tax is to stay there, to go off of it. if you start doing that, you get to the point if somebody holds stock, you tax them on a big year where there is 100% gains, what happens next year when stocks are down 50%? >> that's one of the challenges with that proposal i don't think it has necessarily been adopted thipt, i don't know that it has, but my point is at the beginning most people want to take advantage of automatic options that are available under the tax system, very mart people figure out how you can have a lot of income but don't pay any taxes and that's what the

president was saying last night is, therefore, some people don't pay their fair share they get a heck of a value out of road, bridges, law enforcement, national security defense operations, in fact, the ceilings are opened, in other words, they're getting a great advantage out of what government does without paying any of the freight, that's not fair it's unfair about those taxes, as buffet is saying, look, i pay a lower rate than my secretary that's fought fair. >> is that income taxez, wealth tax is on the table? it's what you have a given year >> you can manage that, so that you're getting a lot of spendable income and maybe borrowed money, which you then don't pay taxes on and have the right to pay back as your wealth grows and you rely on your

wealth as the asset against which you can borrow money but that's one way you can avoid taxes. the point is, if you avoid taxes, if there is not a minimum that you pay and you make a lot of money, you're not helping your government help you in effect around that's not fair and that's what we can look at but i personally, becky, think the corporate tax is 21-to-26.5 makes a lot of sense most of the corporate leaders i've talked to do not have concerns about that they're much more focused on so-called guilty tax, the international tax but we need to have a tax system that ensures that we are competitive in the international marketplace. that's what i have focused on. >> what about tax at death it seemsing to one of the great places of remarkable leakage over the years that's how people seem to move money from one generation to the

next and effectively skip the taxes altogether. >> that was my point that i made earlier. there are ways that are not available, they're not cheating. what they're doing is taking advantage the rules we set in place. we and the congress set in place. >> usually it intend on capping the money in real time as opposed to capturing a debt. why not try to do that >> look, i'm not a tax expert, i don't know the most efficient, effective way to do it, richie neil and the tax committees are looking at this, how you do it best whatever you do with taxes is complicated. the reason it is, is you got a lot of people who understandably want to minimize their tax obligation either as a corporation, of which you share a responsible they owe to their investors or individuals, which all of us want to pay a no more than we

have to pay or should pay and so without getting into the specifics of how do you that, clearly, the president and i think the american people believe that everybody ought to pay their fair share to operate the government services that were absolutely essential so our economy can operate and our country can be safe and secure >> things are so complicated i think that's why i look at this and i say, how are we possibly getting closer to a deal in washington when you're kind of going back and reevaluating the bakes of how you get the money raised again, it seems like it's way more complicated than it was a week ago. how confident are you that you can get something closed up on this by the end of this month? >> emwith becky, first of all, all of these options have been options for a long period of time they were not new options. they were worked on, the committee has looked at these options, i personally begin it

raises the corporate rate. it is simple, straight forward most of the corporate leaders are comfortable with that. they are concerned with the international cash consequences and in terms of the domestic taxes, you know, that would be simple but if you don't have the votes for that, you got to look some mace else, if you say you will pay for something, you have to look for another way, one may be better than the opt f. you can't get one done because you don't have the votes, then have you as to look at another way if you want to invest in our economy and in our people. i think we want to do that we ought to do that we must do that we want to make sure as i said children are safe and secure, that parents have a place to have their children during the time that they're working. we need them, a lot of those parents in the work force. employers are looking for people they need the skills that they bring. but one of the impediments to

doling that is good child care, we want to make sure these kids are educated and they can afford to go to school or not if they have the intellect and willingness to make themselves more productive citizens, then ewant them do that, to have that opportunity. so we want to invest in children and families we also want to invest in the healthcare, in what on the front page of the washington post says six countries are in dire straits and the national security apparatus in the united states of america said it was climate. >> one other tax credit for you. i know it has been something democrats have talked about for a very long time, it doesn't seem to be happening this time either, which is what some people describe as a loophole around private hedge fund and investment companies in carried interest >> carried interest being tax debt at normal rates. >> my question here is why have

we decided to privilege that at a time within your party effectively controls all of walk or very close to it, that this is not something the democrats seeming to pushing >> nobody controls the united states senate. when you say we control all of washington, that's simply not due true that's not true. tore debt limit wouldn't be in question we have an irresponsible party on the other side that makes sure the united states doesn't welch on its debt. and the minority leader of the united states senate says that option is absolutely unacceptable and he will not lift a finger to make it happen so don't pretend that we're in control of everything. we do have the majority of one in the united states senate, but that doesn't set policy in the united states, unfortunately we ought to get rid of the filibuster but we haven't done that yet so the majority doesn't rule,

having said that i don't know why they don't get rid of carried interest, i have been for getting rid of that for a period of time >> steny hoyer, thank you for your time today. >> you bet, thank you. coming up, the cdc clearing booster doses of moderna and johnson, pfizer out with if you data on its vaccine for kids, we will bring the latest after this plus much more on the markets. the s&p 500 factoring for the longest weekly win streak since july beyond meat plunging, they are cutting third quarter revenue forecast, blaming a drop in demand on grocery stores, up 13% right now. stay tuned you are tcngwahi "squawk box" live from the nasdaq in time's square ♪ ♪

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breaking news on pfizer vaccine. mech tirrell has a lot to tell us. >> reporter: good morning, andrew, the fda posting ahead of the big advisory meeting on tuesday for pfizer's vaccine, kids ages 5 to 11. so far, they are reporting new efficacy data from that trial of about 2250 kids in this age group, 90.7% efficacy for those kids and this comes during a time wendell that was predominant in the u.s. and globally. they saw only three among kids who are vaccinated versus 16

among kids on placebo. this was a randomized study so that 2-to-1 more kids on the vaccine than placeboings that's how they get that 90.7% advocacy those cases were seen between july and september and note among the kids who still got a covid case, despite being vaccinated they had much more fever among kids not vaccinated. so pfizer making the case in these documents to the fda both showing the safety and efficacy, which looked good, also for why a kid's vaccine in this age group is needed. they note that cases have surged among kids and they can cause severe illness and long-term effects, even though those are more rare. they know a vax may reduce transmission and could restore a safe learning environment. we are awaiting the fda's briefing documents, then tuesday next week, wee see the public meeting about all of this and a vote headed to the fda

essentially making its decision in the first week of november. >> meg, i hate to ask you to handicap the situation given the questions that still seem to be out there about the vaccine and how large the study was and all of that, what do you think the prospect is we will see this call it pre-christmas, pre-thanksgiving >> i think the expectation is extremely high this will be available probably by the end of the first week of november the cdc's advisers meets november 2nd and 3rd to talk about this the u.s. government, the white house is spelling out its plan, making sure the vaccines are shipped, ready to go they are different packaging, there will be smaller needles. this is one-third the dose for kid, getting all of this into place. are you right this is a smaller study. the risks that people worry about myocarditis, that rare heart risk wouldn't be picked up in a trial this small. it was hardly picked up, it wasn't picked up in the 44

thousand study they will be monitoring this real time. >> great, meg, great to see you, thank you. up next, top stories to watch ahead of the opening bell ceouprobably wants portfolio advi y can't afford to miss. stay tuned "squawk box" will be right back. >> feel stuck with your finances? move your money to sofi. ♪ > ♪ ♪ ♪ ♪ move your money to sofi. earn up to $930 when you download the app and feel what it's like to get your money right.

welcome back to "squawk box. take a look at wework. we were at the stock exchange yesterday for the opening. now ear looking at it up again, the office-sharing firm finally went public. while the company, we should tell you the company's leaders were at the new york stock exchange at that opening founder adam neumann was holding a party of his own of sorts. here's a taste of what was going on >> this has always been about the team and what we did together we're just so proud today and for this day we just want to congratulation the current wework team and marcelo, and sandip for executing on this team's vision.

>> so a little complicated they were beg very nice to each other on both sides, but they weren't together i'm sure there will be folks asking lots of question about what adam was doing. at the same time we were saying he probably gets a lot of credit for having the idea, though, by the way others were doing this before as well he sold it i think he's probably changed the way work will be done, to spoke degree, but a lot of other things happened on the other side of the story. >> it was a drama, you are correct. i'm sure we'll hear more as people dig deeper. alternates more han half an hour to the opening bell dom chu has some of the prematter ma market movers. >> beyond meat, we are now currently down about 13% in the premarket trade. it basically came out and

updated their guidance they cut their current quarter guidance and cited thins like labor shortages, among other things, that will take a toll, that's why the shar are down also, a dow component to bring you, american express, those shares up rough by about 2%, 3%, the credit card company and travel and entertainment company comes out with better than expected results, and by the way, goods and services spending is surging, easy comparison, i know, but restaurant spending in particular is back to pre-covid levels record card member spend there and then as we do here in this hour of squawk, oftentimes a look at the most popular ticker searches over the last full trading day, the number one by a wide marge

was the spac deal for donald trump and his possible social media ambitions, shares up another 82% after another massive move chipotle mexican up about 1% the proshares bitcoin strat tej etf was number 12 on the list, but we're showing it because there's more interest there. i want to pit more context around that digital world trade. volume was about 435 million shares there are roughly 32 million shares outstanding for this thing, so the company changed hands a lot of different times, if you want to view it that way, the one-week move here massive, but keep an eye on that. you do see a situation where maybe the share count of the shares available for trading may not be a robust as some of the demand out there

that might be some of the reasons you're seeing that surge in trading so that's some to wash as we watch dwac its warrants were 39 on the list. >> it's like a meme stock. >> it is, yes, you talk about the share flowed dynamic and how many people wants to get hands on this, it could drive in dislocations. >> and people protesting it the moral share of the stock, i'm thin thinking -- dom, thanks. have a good weekend. joining us more is nancy zevenberger. we've had a wild week, what are

you expecting to see next week, nancy? >> continued volatility around earnings report when companies either meet expectation. there's opportunity for long-temple investors. >> jim, you've always been a great bull are you still bullish? the ten-year is moving it's moving up. >> yeah, andrew, i still lean that way, we're going to get a correction at some point corrective forces are coming the tapering is coming there's definitely building the corrective forces maybe get one yet this year, or next year. the market will probably go up another 8% to 10% next year, so i wouldn't get worked up on a

correction in the interim. i think economic growth is going to be good i would be focusing away from the s&p 500, toward small caps, cyclicals. i would introduce more and more international stocks into my portfolio. >> nancy, what do you think about that are you playing the cyclicals now? >> i'm a growth manager, so we are investing in -- >> so what do you do typically the big tech stocks would be where you put the money then >> we have in the past at this point, though, we believe a lot of large numbers do hurt you, so where we sold apple, replaced it with tesla ten years ago, as they companies get larger and larger, we want to look for other opportunities. netflix is an incredible executer, but we're looking for a smaller component to

participate in that area >> thank you both. have a great weekend it looks like a bit of a mixed picture. the nasdaq is looking to open down great to see you. >> it's been great to see you, too. >> have a great weekend, everybody. make sure you join us next week "squawk on the street" begins right now. good friday morning. welcome to "squawk on the street." i'm carl quintanilla here with morgan brenner, and david faber. premarket is trying to navigate some of the landmines from last night, intel, snap chat, our road map begins with intel the chip maker reports weaker than expected sales, blames an industry-wide component