>> 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

shortage. >> plus snap against apple smacked, shares tumbling, blaming apple on the privacy changes which is disrupting its business and pfizer reporting that the vaccine is more than 90% effective in kids. really this couple times down to data center was a miss, and cloud service provider down 20 is the one that's getting attention. in terms of the past quoted, that's true, and also the guidance on how much spending they'll have to ramp up to make the transactions to get through some of the supply stuff it seems like it's given the street a bit of hesitation in terms of when will we see our way cleared to margins that we're used to from intel, and really it's kind of eating up all the free cash flow that was expected in coming year.

so it's already a cheap stock. we weren't expecting 2022 bottom-line growth already, and now it's like, the table stakes are higher for intel i think you can back off and say the street is all right skeptical of the stock they've been doing this for 50 years, managing transitions and all the rest, but it seems too high it's less than half the market cap side of nvidia right now. >> this is a name that's been underperforming for a couple years. capital expenditures much higher than analysts were expecting, despite the fact that revenue at $74 billion is coming in higher. margins are supposed to be a bit weaker, and tamd and nvidia last i checked, those names were higher, but it speaks to the

di234578ic here of a reimagining of this company and all that it's going to take >> speaking of getsinger we've had this conversation of the ceo of intel, whether this should be a finance person or a technology person when he came in, the street for the mast part said finally we have an engineer running the company, but still the pressure is there. >> i think that's fair there is a certain shareholder constituency they're playing toward, and if this is the conclusion, maybe it's the right call it's just at a high cost to shareholders for the short tomorrow i assume earnings estimates are going to come down, but it's acting like a value trap, but it already is pretty rock bottom

value-wise. >> you have the china smackdown affecting the cloud side of the business everything is going on with the chip shortage, not necessarily their chips, but getsinger did say and this was an issue that plagued intel for a couple years, that the shortages facing its own internal manufacturing operations has largely been resolved you could called that a silver lining in it is midst of all of this. >> he did talk earlier in the weeks, and he said the solution for intel would be making better chips, but that's a moving when you're make playing offense and right now it does feel you're playing more defense. >> he made a note that pushed out the time where he did believe that the industry would have supply meeting demand, so that was a bit of a splash of cold ward on people's expectations that middle of next

year might be more in balance. last night at the town hall with the president, which dropped a bit of news about the status of the negotiation of spending plan, but also where we stand on the supply chain crunches. >> would you consider the national guard for truck ing? >> yes. do you have a timetable? >> first of all, i want to get the ports up and running and get the railroads and railheads, the trucks in port ready to move i have walmart and others that say they'll move it off the port into our warehouses. >> but you're actually considering the national guard's men and women driving trucks >> yes, if we can't increase the number of truckers >> the country is getting educated how things are moved in

this country now the journal this morning with a story about warehouse space, and how that is limited, too, adding to some of the woes. >> i don't think there's a day that goes by we're not talking about supply-chain impact and the fact it's rippling out it even calm up on snap as calls and earnings results yesterday, too. but to your point, warehouse space is limited you have issue with empty containers finding their way back to china so more goods can be shipped here, which is why you have this expected holiday crunch, you have issues around the chassises to move, and we talk to lands ce fritz, and youa argue, based on some of the results we've gotten from that company and others in this week and the commentary, you're starting to see some of the easing of that, but the trucking

piece of the puzzle continues to be the most strained right now. >> some encouraging comments off mattel let's bring in matt bryson matt, thanks for the time. happy friday to you. >> happy friday. >> is the shortage element -- i mean, it's a legitimate reason, but is it an excuse to cover for less competitive chips >> i certainly believe it is a legitimate factor that is affecting everyone seagate just came out with as-expected results, they're supplying the same data center as intel is. they didn't cite chip shortages for problems in either q3 or q4. >> so you think the rationale is specific to intel?

>> i think that intel has some specific problems, right they're struggling, seeing apple switch over to internally made processor, you got an announce innocent that alibaba is also shifting so the chip shortages don't make things any easier for them >> so it the way to think about it this, matt, is that intel manufactures many of its own chips, having that more vertical, i guess, supply chain is adding to the hiccups versus some of the competitors? and how does that picture continue to einvolved, if so, when it's looking to expand its work. >> i think the way to think about it is not so much intel is affected or had has direct competitors, other than amd ran into problems to secure enough

substrates the way to think about it is the pc manufacturers, dell, several manufacturers, dell, le nova, what have you, if all of them are struggling to get the answer lair chips that they need to build products if they could build the server, then because they don't have a power management ic, they drone need an intel chip they also don't need an amd chip, but with intel those issues are compounding the share loss they're seeing. so the impacts has a larger effect on them than it does in some -- >> matt, the guidance on capital spending that people are focussing on, and it's going to be essentially defers this moment when they harvest more free cash flow, is there concern about the value of what it will take in this kind of heavy investment phase, or are we concerned about what the ultimate return on that investment is going to be? can they skufrt this sort of

transition and capacity expansion that in a way is on the other end of it, going to bring back the era of the more family high margins? >> i think both of those factors are a concern. i think in guiding for cap ex to come up, for guiding for margins to come down, that's the primary reason for the underperform. i saw this big period of investment, but while they're going through that, they're also dealing with share loss, struggling to hold revenues higher, so there was going to be an impact on free cash flow earnings i think them going toward that gets that out of way to the second factor, what happens going forward i think the concern migrates toward that issue, where pat getspellets --

just don't get a lot of visibility into whether intel's plan is really going to work until you're a few years out from now >> so no hurry to buy the stock is basically what you're saying. where do investors put their work in the sector then? >> we still like amd i still have outprogram ratings on taiwan semi and umc you can't get enough chips, taiwan are where chips are made.

they're benefiting from pricing power to just a shortage of manufacturing capacity i think that continue to say remain a factor through mid '22 if not into '23. >> matt, appreciate it very much as we mentioned earlier, gelsinger will join us on "techcheck" this morning this comes ahead of a key advisory meeting scheduled for tuesday. above the those companies are higher, this comes on the heels of the president sail -- the administration saying earlier this week they're already rolling on you the admission to roll out the vaccine, since the

process will be different. >> 9 -- definitely would help on the labor front. you have a lot of parents that are perhaps nervous about bringing covid home. a survey did show a drop in people not working, which may be an encouraging picture for october. >> you see the biontech stock always reacts in a pretty sensitive way. you do wonder what the implied estimates are for the uptake of child vaccines in terms of percentages of households that will do it there's no dowel it's got to ease up the labor participation situ situation. >> so potentially the demand continues for these products, as we continue to make our way through the latest strain of the pandemic. >> by the way, we'll mention

this initiate of a sell on moderna, with interesting rationale. a rough morning for snap as we said, sharing are tumbling we'll get details as we look at futures here, as we continue to wade there, about a quarter of way down with earnings season we're back in a moment [crowd cheering] how's sanchez looking? with your qb's increased spin rate, any pass with a launch angle of at least 43 degrees puts sanchez in the endzone. you a data analyst or something? an investor in invesco qqq. a fund that gives you access to nasdaq-100 innovations like ai statistical analysis software. how am i gonna do? become an agent of innovation with invesco qqq. ♪♪ hey businesses! you all deserve something epic! become an agent of innovation with invesco qqq. so we're giving every business, our best deals on every iphone -

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snap shares tumbling here's what snap's ceo said on the earnings call about the impact. >> the new apple provided measurement solution did not scale as we expected, making it more difficult for our advertising partners to measure and manage their ad campaigns to i ios. this news instantly hit the entire kind of ad-related ecosystem stocks it's a shadow over the industry for a while. facebook has had some struggles with it. snap did miss on average revenue per user which might have been a bit of a signal, but this idea there was just less push behind

advertising demand in general mock -- meaning companies that don't have goods to offer customers because supplies are tight, they're not advertising as much. that is an interesting macro piece of it. when a stock valued 30 times above sales, like snap is, that's the negative whiplash when you miss like this. we were just showing the boards, facebook is trading lower, alphabet, twit, a lot of these names will report next week, and they're thinking wait a second, maybe people haven't anticipated how negative this

privacy change will be. >> last week the street was saying ios change will be the real factor, and snap is an early indication of that. >> the other thing to keep in mind, the run that it's had. it was at 60 in late july, in the high 50s in late july, you're sweeping around, say, three months worth of gains. not insignificant, but it does show there was a bit of the push behind the stock in general, but when they have this paypal maybe looking for acquire pinterest, simply because people are ready to buy something, it seems it has value to somebody. >> even despite the head scratches yesterday.

>> by the way, despite snap's troubles this morning, reiterate by goldman, reiterate by piper and mkm, the thinking they'll find way to say assure adver advertisers a work-around. >> it's not as if advertisers will give up they'll try. >> and for online advertising, of course, there's only so many place to say go, anyway. maybe it affects the ad dollars right now, but at the end of the day, if you want to target certain -- >> it was a $120 million market cap, how much is lost with its hoff take a look at the futures here a bit muted, obviously coming after a nice run we'll look at the market

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>> announcer: the opening bell is brought to you by -- welcome back to "squawk on the street." another blue chip that reported earnings this morning is honeywell. the company beat on earnings, but it miss slight will on revenue. it also upped the lower end of

the eps guidance for the full year, but in part due on to dining -- companies business seg mountains, all of them saw rise, that is certainly worth noting warehouse, technology, some of the workplace st. louis in particular a real bright spot. we're actually seeing a ding from defense there's some weakness in defense, but after-market for commercial aero and aviation, and potentially the street is saying from smome of the results next week. but, guys, supply chain and inflation is what -- for the

multinatural conglomerate. i spoke with darius last week last week while they were in a quiet period ahead of earnings here's what he had to say about that hen >> we have much greater visibility to be much more precise on how to deal with some of these supply chain challenges it doesn't mean you'll completely avoid them, but you condition more pinpoint and precise in actions, because we have great visibility to data and information, what's happening to our business, where, and where we're seeing inflationary pressures, where we're getting some challenges in terms of delivery, and so on >> of course, that's in reference to all of all of the soft way and technology investments that this company has been making, the fact that that adds a lot of data and up

sight noble into the company's supply chains and businesses and the market that it supplies as well >> given the lost sales they talk about on the call, they only tweed the guidance, and they actually bring up a low end of the eps guidance. >> i was going to say the keep it simple version of how to think about supply chain at this point is that they've been in it for months, they're kind of on top of it. they've been good at try to go manage the logistical change, whether that's walmart or the industrial conglomerates like honeywell. i think defense related have perked up a bit, this idea that really it's not being targeted for budget cuts. >> and those names, of course, will be in focus next week as well, as you get the heavybeats

re -- heavyweights as well let's get to the opening bell the real-time exchange it's babylon, celebrating a listing via spac and at the nasdaq, it's baby 2 babe 'members with a beat, and i think it's going to be an all-time high, as they see restaurant spend the largest part of the category they do talk about a recovery on travel, it kind -- >> absolutely. you know, the consumer financial stocks have been great in general. looks, a capital one, something like that, but american express is kind of participating in that

whether it's overall business spend or this pivot toward services, which is, among other things kind of a bit of an insulation against the buy now/pay later wave that's watching over things, despite the fact you will get an offer from your credit card company to sprend out the payment of some kind of services still, i think it's a good look, pretty much on par with a discover as well so it's hey, the consumer is in great shape, spending, loss rates are minimal, and there's more to come, but you have the kicker if you ever do get the comeback. >> obviously we've been talking about that a lot, and you have seen this inverse correlation, and those more traditional credit card companies, but mast master in theory, that they're

trying to get ahead of it. >> overall you think you have a strong consumer, maybe you have these inflationary risks and companies are dealing with that, but that consumers, at least for now, seem to be flush with cash and excited to go out and spend. >> it sort of brings us to mattel, quote -- we successfully navi navigated ongoing supply change disruptions. we have the shares up 8% premarket, now up about five really it's turning into a record card of the case of industrials like honeywell, off some of these toy companies, they used to used to crunch

time you know, if there was a probable at -- if they say there's not a problem at this stage, they're probably oak through the holy days. >> it's also worth noting we're talking about some goods that are very deliberately being brought into this company from the manufacturing sites overseas, they are shipped on campaigners. typically that starts in august, the peak shipping container season, so there is some sort of leeway or run time in terms of these containers being on and off the ships and onto shore she was, but i think it's pretty significant they tried it a few times, but now you go to netflix, and it's like barbie

cartoons galore. >> it sounds like you're speaking from experience. >> and there's a dreamhouse in my basement. take a listen to last night. >> we're seeing consumer demand continues to grow, and we're off to a great start we expect to continue growing for the balance of the year. gaining market share and have a strong holiday season. >> so maybe a bit of an encouraging data point we are worried about making sure the holiday season goes off well we have seen how that has paid off. i did want to look at zoom quick. jpmorgan ups to overweight

i think the title of the subhead is enough is enough. they do art that modern corporate -- has changed to zoom before reaching for the office desk phone as the primary mode of community indication. maybe there is further enterprise growth. >> it seems like there's a bit of muscle memory i think it's an interesting tactical call. it still is an $84 million market cap it just got well over 100 for a while. so definitely interesting. i don't think the debate has ever been are people going to stop working at home it's just how much, what subgrowth looks like and who is left to add new paying subs.

>> we're going to be business travel certainly come back, and we go back to the honeywell discussion, pretty upbeat that you will see that recovery as we turn into 2022 as well, but perhaps the bar is higher, right? when you're not getting on a plane to have a face-to-face meeting, especially with marketing sales, or some deal is being struck, to actually see somebody face-to-face, is a lot more compelling than phone also how much different work forces have been hired through the pandemic and actually never met their co-workers at least zoom gives you the face-to-face recognition. >> it seems ready for a pause, but it's paid to buy the open seven days in a row. so it shows you had, there's

been a bit of a slow-motion chase, you can say we got the seasonal shakeout we are positioned for it would make sense at this point, but we go green again the nasdaq under a bit of pressure what's fascinating is what's moving in high velocity ways outof equities, and it's not really upending -- the market rushing to price in at least two rate hikes into next year for the u.s. not to say it's definitely going to happen, that the market is hustling to that point we have a one-day pause in the oil rally yesterday. it's also bounced, so i think it's interesting that what we're looking for for the fed november 3rd. whether they'll be super-'gressive about the pace, and whether the market has it right, right five-year market implied inflation levels, bumping up

against 3%, which is a high for, like, since back in 2012 in 2012, the market didn't know what it was going to happen. you can't take that as some kind of prophecy. you can take it as people putting money behind the idea or fear that inflation will be sticky on the high end >> all of that said, with the event yesterday we're looking at reasons for why oil has gone too far. a lot of looks at the brandy forward curve. the vix, i know you've been watching, you have made the point it will be difficult to get it much lower, because traders are conditioned to stay alternates cautious. >> 15-ish has been the low. it would take but the overall

setup for the way people are kind of hedging is are still benign the vix doesn't have to crab, but it has been sticky around this floor we'll see if that matter we're poised to see our first down week while we continue to see -- certainly natural gas has been -- and that, in turn, i think is rippling through to some of the other energy complex contracts as well. in large part now potentially the winter is expected to be mild, too. i think goldman said if the winter is one deviation standard colder than norm ago you could see some dramatic increases in net gas and crude.

we want to make attention to the digital company helping the donald trump -- basically it was interesting to watch the "new york times" tell readers about what a spac is, and interesting color, naming google and 578 zone as potential rival s rival sort of memes and personal brands squared and cube. yesterday i mentioned late in the day, that over $12 billion it was double what apple traded.

whatever the business look like, it's just on the idea of the stock and the spac alchemy is working in this sense. i mechxed this yesterday you can look at that potentially as an investor and say you have a built-in audience there we don't have a lot of details, so it will be interesting to see the i say that talking about some of the alternatives media sites as well. and some of the issues like parler is going through.

there's only so much adrenaline to go around. >> mike mentioned some of the from the ten-year, around 167 this morning, overjaw, though, dow is up we do have a record high, that will be the 56th of the year we'll be right back.

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evil dies tonight. (crowd [ chanting ] - bi evil dies tonight.o! [ screaming ] [ chanting ] evil dies tonight. [ screaming ] happy halloween michael. . welcome back to "squawk on the street." rick santelli here at cme hq on manufacturing, 59.2, a bit of a miss sequentially following last month af's final read. this number is better than expected at 58.2 and 54.9 last month.

let's compress it into the composite, also a couple points higher than our final read at the end of last month at 55.0. at 1.67%, ten-year notes are down a few on the day, but up ten basis points on the week, and bund yields hit an intraday high yield of minus 0.7, the highest intraday trade since may of 2019. "squawk on the street" returns after these messages t all. you have to deal with higher expectations and you have to lower wait times. with ibm, you can do both. your business can unify apps and data across your clouds. so you can address supply chain issues in real time, before they impact your bottom line. predicting and managing operational issues that's why so many businesses work with ibm.

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from anywhere, anytime. it's network management redefined. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. got a brief record high on the s&p this morning bob pisani has more. >> good morning. supply change constraints, labor market shortages, raw material problems, now we have this curveball from snap hurting some of the tech names. this is about the lumpiest, toughest earnings season i have seen in a very, very long time the bottom line is the market is continues to hold up very well overall. if you look at some of the sectors s. materials and banks doing well tech and communication services weak, but not surprising take a look at some of the tech names, snap, of course, getting killed along with some of the other names that might be

affected, like facebook and twitter. intel is down, but it's not affecting most of the semiconductors they are mostly trading to the up side right now. i have to say, despite these concerns with the labor market shortages, the market has held up well. there's no major sectors in really health care, consumer discretionary, technology still remain up on the week. industrial is also doing well. we have a ton of comments on supply chain, on labor shortages. i thought one company with amazing things to say was mattel on the supply chains you heard the ceo saying they suck susfully navigated supply chain disruptions. they contract said more ocean 48 capacity this is what you need to do to make sure employees are in the store.

not to new high from mattel but not far from a new high. i think the exact appropriate comments given concerns about supply chain labor shortages. i thought the whirlpool ceo had the best comment we have more than 20,000 employees. so, yes, demographics are a little bit of a worry down the road the key word is structural and a real problem down the line i think that's the most important comments for the day on the labor market. it's q4 we care about, not q3. so, the numbers have basically stopped going up up 22% for the fourth quarter but that's about where it was a few weeks ago and you have markets at new highs no move in earnings. that's a little bit of a divergence people talk about

finally, just want to note, on the bitcoin futures etf. proshares has a billion dollars in assets. that's quite amazing just started a couple of moments ago. trading today and we'll have them trading monday or tuesday we got a claire f on that. valkerry is just started today it opened on the upside. the btf is the symbol there and you can see that nice little open there what a move this week. remember everybody two weeks ago saying we don't want an bitcoin futures etf, it's not going to work or track. guess what now everybody is saying this proves the public has faith in futures contracts. this is a complete 180% round trip from what people were

saying two weeks ago back to you. >> the market has a short memory, thanks we didn't get to chipotle, which is down a couple of percentage points and balk mentions the concerns about inflation, specifically food inflation up 400 basis points. so, they're passing it through >> sure are. >> comps ahead of expectations pretty remarkable. some focus on the guidance for comp sales low to middouble digit percentage, which i think is slightly below the consensus but at this scale, obviously a lot of that is cost, i mean, prices being pushed through. everyone thinks -- whatever it is, the story's in tact. even though mega expensive stock forever. >> and they've been deploying so

much in terms of technology and digital capability and you're seeing that come to fruition, even as the company did say that there are uncertainties weighing on the business. and it's thesame ones we heard from inflation, staffing pressures, covid-19 as well. they did open 41 new restaurants and only five didn't have a quote/unquote chipotle lane. which i think speaks to the strength to fast food and drive-thru and options to dig tale or remotely or not get out of your car, whatever, pick up your order without going inside a restaurant too so, it's interesting the pricing i think is especially interesting how much further could they raise prices if they needed to the prices are pretty high it's kind of eye popping >> the market seems to say this never depended on being the

lowest price or paying the lowest wage relative to the competition. so, maybe their workers are better positioned in this mark >> and how many seconds does it take to get in and out i've been in and out in 60 seconds. it's fast. >> well, there's a twist in the supply chain story that involves mna. hi, frank. >> good morning, morgan. it's all about mna almost triptling the s&p following the acquisition of a freight broker at time when it's at an all-time high. both increasing from 2019 levels that has many logistics companies looking to increase their capacity judy mcreynolds expects it to remain elevated through 2022 >> when you look at our balance sheet, we do have resources,

ca capital allocation is what's the best return for our stake holders and that most certainly includes shareholders. >> logistics companies seeing cash on hand increase sharply in 2021 the nation's largest trucker and containership respectively there's also a company called hub group. they saw their cash nearly double and then they acquired a refrigerated trucking company. shares nearly doubling s&p they say that's a trend likely to continue. >> function of the supply kman disruption it's a function of that's leading to substantial cash generation and looking to get deeper into the supply chain and diversifying your end market and in some cases regional exposure.

>> this week a record 103 containerships were in the ports of los angeles and long beach. and even some of the companies, they're eyeing acquisitions in the u.s. supply chain. so, so, as capacity crunch continues,, could be an interesting environment. back to you. dow's up 145 holdong to that all-time high we got a few moments ago.

good friday morning. welcome to another hour of "squawk on the street. live at post nine of the new york stock exchange. steady as she goes after seven updates. a fresh record high as the market continues to work around land mines like intel and snap >> here are three big movers we're watching this morning. we're going to start with mattel, moving higher and saying the supply chain disruption would not prevent it from having a strong season. and shares basically turning flat right now

honey well topping earnings estimates, the company saying it's seeing strong growth across all segments so, do trim seals for full-year guidance and finally, intel another blue chip. those shares missing q3 sales forecasts and predicting lower profit margins due to on going investments in new technology. shares down 11% right now. however, do not miss ceo pat gelsinger in the next hour on "tech check. >> we're also keeping an eye on shares of snap that stock hit after signaling apple's global supply chain issues impacked its quarter. joining us is analyst at bernstein to talk a little bit about this reaction. good morning obviously the market, somewhat blindsided by the impact of the

ad changes and commentary about ad demand in general in this environment. how do you put it in context in terms of how it's valued right now looking at growth ahead? >> it was priced to perfection and this wasn't a perfect quarter. obviously, when you're telling them you're going to grow revenues for the next three years and guiding towards 30% next quarter, there's going to be questions and a bit of a sell off. i think what's important is two factors driving it the first is supply chain constranlts, which i think was already known and issues tied to apple's privacy changes caught them off guard i thing they trusted apple that the network was going to work effectively and the answer is that it's not.

it's insufficient for advertising needs and it's going to take time to work through and figure out forgrounds for at rubugzs of those we went through this when apple first did changes last year, that for six months nobody talked about it. i think we're realizing it is having an impact and certainly it caught snap off guard and investors as well. >> you say companies will work around it. facebook down 5% this morning. but even if they do find these work around, does it restrain average revenue for user or other metrics the stock valuation is based on? >> it shouldn't. management came out and said it was transitory i tend to believe them issues tend centered around measuring and not targeting. that's difficult to aplicate for

the advertiser to find their audience but you can -- we know facebook's further along that path they introduced their ag rugts adult manager and effectively come up with an estimation of how effective the ads were and that they were underreporting it towards 50%. it just takes time you have to go advertiser by advertiser takes a lot of integration, a lot of human power to effectively go off and do that in my view, this is going to weigh on the industry probably the next six to nine months. as we go through next year, we should come out. >> you mention the supply chain head winds were largely expected or known coming into this. what does that say to the mix of

advertisers on snap and does that carry through to what we might hear from their competitors, like facebook or alphabet or twitter next week? >> sure. and one of the more interesting points from snapchat last night is if you look at sekwengsal ads, which would imply it was growing somewhere in the neighborhood of 20 to 25%. so, if you look at the platforms like twitter, like youtube, they may be more insulated from some of the trends taking place and pressures. what we know is if an advertiser has nothing to sell, they don't want to spend any money to advertise. does it apply as much to brand partially. it's something i'm watching to see some of the more brand-dominant platforms describe what impacts their forecasting as relates to the brand component. sorry. >> finish that thought

>> so, you know, again t feels like google is quite insulated because for the most part, they advertise on android if anything you see it putting to work on android google may look the most insulated but certainly other advertisers, like facebook, with a lot of similar exposure, you should see those head winds persist and why you're seeing the stocks move in the direction they are >> so, my question is given snap's troubles with android, much more reliance on apple, much less international than facebook or google, trying to use snap as a read through to the bigger names is a mistake today? >> it's not mistake. i wouldn't apply it uniformly. you know, there's certainly some issues like the supply chain issues that are going to effect anyone with exposure to retail

and that hold said true to someone like a pinterest and an amazon you know, facebook was never stood still on this one. starting when the news first broke last year, they were already working to bring sellers on the platform. so, i think the magnitude of the impact is going to be felt very different. i would use it partially as a read through but not to the extent we've seen. >> finally, you mentioned to start that snap had been priced for perfection obviously it's a huge haircut but only dials back the stock to where it traded in the summer. >> and that's certainly true it's still in the neighborhood of 20 to 30 to date and it's not priced to perfection there's upside relative to their highs. i think what management said on the call should give investors

confidence, that there's long-term confidence remains in tact i think that's a very important measure because it speaks to management's confidence that head winds are transitory. things like user growth was very strong, the path to pro profitability. this is their second quarter of positive cash flow the biggest question i get right now is how transitory are these or is it a permanent impairment? the more they're believing it's temporary, verses permanent, i think you'll see the stock come back >> thank you for the thorough read >> thank you intraday high at the open today. and earning season, as we know it to date good to see you. happy friday to you. >> and a happy friday to you and

everyone >> you mentioned on yesterday's trade, not a bad finish at all is how you write it. overall, global equity markets uncertain but relatively stable. the bulls still have control of the ball >> yeah, no. actually, they've been in relatively good shape. we've been waiting for this october correction everybody was wondering if we were going to get one of the classic october washout corrections. as he's pointed out again and again, we've had a normal seasonal pullback. then you had an extraordinarily sharp rally up 6%. and small number of trading days ordinarily that would be a big standout but given where things are. i think what the viewers want to watch for is the yield on the

tenure we're up in a interesting area if they get to 1.70 to 1.75, will that turn into a third rail for the market you see nasdaq has remained relatively weaker or weakest of the three industries we're looking at and i think that's because they're afraid of the impact of higher yields on the high cap tech stocks it's been, maybe not poisonous, but a problem in the past. and then you've got the individual problems, as snap and uan other things you've been mentioning this morning. powell will be talking late morning at an international conference no one expects wild surprises out of him he walks on egg shells as much as he can. any move on the tenure can have

an important effect on the market we're trying to consolidate those gains here and they could move rapidly if they were big surprising yields. >> a couple of things in terms of worries the markets had to process so far the new trading rules, he arcued, does help his nomination prospects. and the other is he's giving in on corporate tax hikes some argue means the market has one less thing to worry about on that front as well >> but the ole be careful what you wish for call? i heard several people come on air and say we're not going to get a hike in the corporate tax rate so, therefore that will be great for the market some of the things they're talking about anyway is taxing corporate buybacks and they've been a key, key support for this

rally that we've had over the last couple years. i disagree with senator warren and some of the progressives say that's manipulative of what you're doing what it really supposedly historically says is look, i have money here and i can't think of any better use of it than to put it in my company because my sales are great, operations are strong. so, that corporate buyback has been a really positive reinforcement. so, it's one thing to get away from corporate taxes but if you're going to start to charge for buybacks, that could put a dent in the market >> you mention said the market should probably be sensitive to any inflections in what powell has to say regards to the the outlook in rates the markets really kind of rush

to that point of anticipating a series of rate hikes next year, based on this inflationary them to 16 months ago he said we're not even thinking about thinking about raising rates. sglrm i think he was of the opinion that it was truly transitory and in that sense, i think he meant temporary supply chain inflation kind of demand pull along. and now i think he sees it as maybe not a permanent inflation but one that is longer lasting than they thought. an old foegy like me will look back and say inflation normally is a monetary event but

something i would advise the viewers to watch is the velocity of money you can't get inflation unless you lend it or spend it. so, we've had the money supply grow greatly butted we're not seeing the velocity of money moving along that's a phenomenon we've had since 1977 a long period of relatively low inflation. i would say what you want to watch out for, keep an eye on the velocity if that starts to move up, then get the heck out of the way because inflation is going to spike. as laung as it stays relatively low, you might be there. i think you're right, first it was we're going to take it slowly suddenly now we're all rather cavalierly talking about the taper being over six months into next year and at that point,

they may start talking about raising rates. that could become rather aggressive i don't think they truly believe it yet but it's something the market is somewhat worried about. for now it's a supply chain thing, not a monetary thing. >> i'm glad we were able to close out this friday with you have a good weekend. >> my great pleasure have a terrific weekend. let's get a road map for the rests of the hour, including intel warning u.s. super power could be in danger if they don't protect key technologies we'll explain. and exploring the broken supply chain. we'll do a deep dive into the gro growing demand for warehouses but with nothing to put inside them jane has more.

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welcome back to "squawk on the street." we're talking about supply chain this morning, this time on the warehouse front. morning, jane. >> reporter: hi, carl. we're here in lynwood. we keep hearing warehouses are

full and can't take anymore. so, we can't to the warehouse and surprise, it's not full. what's going on? so trucks are bringing containers to the facility and a building owned by warehouse realty but there is space here. igc is working two shifts but not fully staffed because truck deliveries are so inconsistent >> we should be at 80 to 85 per ship, so 60 to 70 labor. frrgts right now the first ship is running about 40 and the second shift is running about 30 >> reporter: this leads to questions again about a trucker shortage but meantime, demand for warehouse space is to the rafters. vacancies are down below 4%. duke is adding millions of square feet of new capacity. buildings are fully leases before they're opened. and they would open them sooner

except >> we buy steel and concrete and roofing material you want to build a building today, we'd be lucky to get steel in about 11 months >> ceo jim conor says he's nevr seen anything like it. and everyone i talked to said, folks, get used to it. ch and all around this region, you see them empty containers just kind of hanging out because for whatever reason there's not enough financial incentive to come pick them up. >> chassises i mean, i'm having flash backs, chain, to a couple of years ago when you were having the strikes and the chassis shortages. we're back to chassises again? >> reporter: we're back to chasys i think what we're seeing are issues that have long been idio

sin kratic at the ports here in southern california, as warren buffett would say, the tide's gone out and we see who's swimming naked they have rules about truck appointments they fear they have to change their truck under new california law. and maybe they're making enough money on shipping that they're in no rush to make things more efficient. >> we always appreciate your reporting. thank you. well, we're going to stay with the supply chain our next guest believes we're near a peek for retailers and the problem should start to alleviate. michael, great to have you on. why do you think that? >> this is a call that we had a few weeks ago and we think it's coming to fruition the call was things are going to start to goat worse in the near

term and alleviate as we get closer to the holidays we're seeing the short term pain get worse with a bunch of misses in the last 24 hours with various supply chain regions, intel, whirlpool last night. it's going to alleviate itself eventually as we just worked the pipeline, particularly as we get through the holiday season, which is really clogging things up right now >> who's winning and losing as we look to the holiday season and talk about inventory and the mad dash to get things to store shelves to consumers >> big retailers are going to win out. because they have the muscle to work through some of these things and they're sales are up year over year because of strong vendor relationships, because of their size we think that will ultimately benefit as we look ahead to other companies.

walmart, target, etc., because they have the muscle to work through it it could end up being a positive, because they're able to have fewer stocks than some of the competitors, they could pick up market share sgl >> it's been pretty conspikulous, the underperformers. and it seems like the market is concerned. since they're feeding off of excess inventories, that they may not have enough? >> that certainly does hurt them right now. also, perhaps, with the consumer so strong a lilt bit of a move away from value and more towards convenient they do better when the consumer is focussed more on value. >> if you had to pick one name, specifically, going to the holiday season too, invest in,

as we get an earnings season unfolding right now, what would it be? >> sure. i'll give you three. we like the supply chain comment. walmart, target for reason i mentioned and particularly walmart. we thoing that needs to rebound. and the other is alta. the stock was down but they don't have supply chain issues and they're earlier in their recovery there's still more room to go in terms of recovery on that one and we think hopefully we'll come out of the pandemic issues and we think there's more demand inflation in front of this >> thanks for joining us >> thank you as we head to a break, we're watching the ongoing rebound in the chinese tech sector, with the k web etf. names like alibaba, jd.com, all

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welcome back to "squawk on the street." we're taking a look at the global x cloud computing etf this is ticker, clou yes, cloud without a "d. "and it's up again fractionally. but watch zoom in particular today. that got upgraded to over weight with j.p. morgan saying it already reflects a post pandemic slowdown and add that growth will bottom this quarter and accelerate due to the increasing adoption by businesses it's still down more than 2% year to date though.

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welcome back here is your cnbc news update at this hour. pfizer says kid-size doses of the covid vaccine are effective for children age 5 to 11 a study shows vaccinations are nearly 91% effective against preventing symptoms. and the director of the movie was also shot and wounded. baldwin was questioned by police and photographed afterwards by the local county sheriff's office a spokesman for baldwin says there was an accident involving a misfear of a prop gun with blanks an attorney for the laundrie family says they're seeking more

details on brian laundrie's death. the fbi says human remains found in a florida nature preserve are those of brian laundrie. and robert durst has been charged in the death of his former wife, cathy durst she vanished in 1982 last week he was sentenced to life in prison for murdering his confident, they say helped cover up cathy durst's death as well sorry. >> christina, thank you. appreciate that. let's get another check on two of today's big earnings movers we're going to start with snap, down about 22% and also we're going to take a look at intel, which is also in the red and helping attract the dow lower this morning as well intel seeing a miss in sales, both because of china's tech crack down and the industry-wide

component shortage for pcs we're going to bring in john fort, who has a big interview plan tomorrow as well. >> that's right. coming up next hour and as you mentioned, there's short-term, medium term and long-term issues that have investors questioning what's going on with intel the china crackdown, particularly on video gaming, hitting intel pretty hard because they have a lot of share in china and the cloud stuff not so much the demand for intel's chips themselves but the ability to sell them through because power supplies and either net switches are not as available. you can't really get the product out. the intel chip, maybe you can get that in the medium term, there's issues of margins.

guiding to 51 to 53% gross margin down from the usual level investors are used to. it's been a 60% range. they say they're investing in process technology, as part of the reason why gelsinger put the focus on that. he had announcements about that earlier in the summer. and what gelsinger is saying is they'll get to a annual growth rate of 10 to 12%. analysts are skeptical asking how on earth can you do that and you're pointing to a number of initiatives they expect to be up and running in four years and they're pushing high-performance compute into graphics all those things together, gelsinger argus, will make it work weerb nearing a moment, i think,

of maximum transparency and maximum doubt whether they can pull off >> it's big bets and going to take big dollars to get it out in the meantime, they've kponted to take market share from this compopy last couple of years >> i mean, i think we expect to see them continue to do well i think it's important to separate the parts of this where they're competing with a and, d. we want to see if intel is able to really turn some heads. performance is starting to leak out. then longer term, as they're talking about process technology and foundry. that's not direct competition. they talk about packaging and the shift in business models it's a question of execution and how much wiggle room and that's

what i'll be asking about in just a few minutes >> thanks for teeing it up for us all right. it has been a big week for bitcoin. notching new record highs in price. and kate rooney is looking at crypto traders taking on more risk than they did in the prior run up >> that's right. they are taking on less risk and some see it as a sign they're less frothy, at least than they were earlier this year this is based on bitcoin leverage ratios. for bitcoin, they looked at the total futures interest divided by the number of bitcoin on exchanges. the leverage ratio is, quote, considerably lower than levels we saw earlier in the year and this is according to data from glas node and fun strat if you look in may and early

june, the leverage essentially fell off a cliff as people sold out of a lot of their positions. bitcoin lost about a third of its value. it has been a key driver in some of the volatility we've seen in bitcoin. they were driven by traders, in some cases, taking on 100-1 leverage two of the biggest crypto exchanges, xts and binance and another sign the market might be maturing there's more long-term holders at this point. bitcoin was attaunather all-time high oaf 71% of all the bitcoin supply stilt, they say the price moves mean there are definitely some traders chasing leverage analysts are looking for any other signs that the market is over heating, especially as bitcoin hits a new all-time high this week.

and the whole crypto market is known for booms and busts. guys >> so, only 29% of bitcoin are being turned over in less than five months. i guess you can call that more stability than there was these issues of leverage as we have these two bitcoin futures based this week. we have proshares out there. and attracted a huge amount of assets and i think it's raising questions whether these funds will be a huge percentage of the futures volume, maybe going to change the overall dynamics in terms of tail wagging the dog in the market >> and a ton of interest by some metrics, it's broken records. and i think the more bitcoin old-school buyers are saying you have things like roll over costs and it's more expensive, trades at a discount. there are some holding out and

saying this isn't the easiest way to buy and others are saying because you have the paypals and coin bases of the world making it easier, they may thought be looking for an etf ushering in a new type of buyer, verses those looking for the quick trade. >> what a crazy week it's been as we go to break, tesla notching a record high for today. and for the first time since january, got a big show on the half jim reynolds, and jeffrey all joining the judge at 12:00 p.m. eastern time s&p is going for nine straight gains, the longest streak since february

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cnbc's out with a all new america economic survey, to look at the debate over whether to impose vaccine mandates, especially on children awfully relevant, given the news of the day >> definitely is the cnbc all-american economic survey showing americans sharply divided on the issue of mandates at all and whether they should apply to children once vaccines ruproved for their use 49% of americans approve of vaccine mandate for kids under 18 compared to 43% opposed and 8% that are unsure. but 79% of democrats approving and just 23% of republicans.

men and woemen differ by nine points with 53% of women in favor of a vaccine mandate for kids a 10-point difference between those in the west who favor them and those in the south that generally do not and starker differences when we look at just the parents these are smaller groups so, margin of error is not enough to explain what you're going to see here. big gaps overall, just 34% approve mandates and when you look at vaccinate said parents and then go to the right there and look at that big orange bar. 95% of unvaccinated parents oppose mandates for kids part of a broader debate there's been some increase in support from places that americans figured with growing

support in conferences and in the workplace but just 61% probably the result of more americans getting vaccinated tend to show up as more likely to favor mandates. but the issue looks like it's gor eing to remain contentious with a portion of the vaccinated public saying no to the mandates >> and seems like a hard ceiling on overall likely vaccination rates in the country as we head to break, let's get another check on shares of the trump spac, digital world acquisition. they did trade higher. and volumes are through the roof $12 billion worth of shares traded not spreadsheets. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

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and america's rivals, are trying to steal every 1 of them russia is also a concern officials said they're concerned that foreign theft of american technology could not only rob the united states of economic leadership in the key sectors but could threaten the u.s. ability to even remain active enthese industries at all. the sectors of concern are artificial intelligence, the bio economy, autonomous systems, quantum computing and semiconductors the national counterintell jngs and security center wrote they produce technologies that may determine whether america remains the world's leading superpower or eclimsed by strategic competitors in the next few years e adversaryinations have used a variety of techniques to steal and replicate american

technology officials i met with outside d.c. yesterday said they can take several key steps to mitigate counterintelligence risks. including identify your organization's crown jewels, setting security they said american businesses just need to understand that chinese companies are required by chinese law to share data with the government state security services. back over to you guys. >> yeah. i think this is fascinating and reminds me of the conversation i've had with defense officials and national security officials over the years around the critical relationship that these new emerging technologies are going to play in terms of our own national security outlook and defenses especially as we put more money towards countering the likes of china in the future how much money could we potentially see carved out from the federal government to go towards these initiatives that the private sector is working

on >> well, look, what officials said yesterday, they're not recommending decoupling by u.s. businesses or academia from china and russia and cited a number of different programs that are engaged in right now by u.s. companies they said those can be beneficial, but they say you have to be careful here in terms of understanding that the business opportunity that's presented to you by a chinese company, for example, may not be on the merits. it might not be that the chinese company has decided that is a good business opportunity. it might be that they're being directed by the chinese government to acquire that technology, whether it's an m&a deal or hiring or in partnerships so they're talking about a lot of money here potentially in terms of u.s. r&d, but it's in the private sector >> all right eamon javers, thank you. still to come, wager space teaming up with lock ahead martin to create the first ever free flying commercial space station. we'll talk with the ceo next

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and people to deliver a cybersecure record of your entire operation. so that everyone, in your boardroom and beyond, speaks the same language. honeywell forge. industrial grade software. welcome back to "squawk on the street." voyager space teaming up with lockheed martin to develop the first ever free flying

commercial space station star lab, as it will be called, is expected to be initially operational by 2027 and here to discuss voyager space chairman and ceo dylan taylor great to have you back on the show. >> thanks. good to be here. >> so we talk about so many potential initiatives that are under way right now where space and specifically commercialization of low earth orbit are concerned. space habitats seem to be that next run from be tear as the international space station looks to eventually decommission the international space station. talk to us about star lab and what the financial opportunity of this commercial space station could be. >> right well, if the last ten years was about building the elevator, so to speak, to space, the next ten will be about destinations as you alluded to the iss will be de-orbited around 2030 or so, and, you know, listening in on the earlier segment on the national security piece, we as a country can't have a gap in

terms of capability and low earth orbit so it's really important that we commercialize low earth orbit in anticipation of the iss off line as early as 2030 >> yeah. now you're partnering with lockheed martin. how did that come to be? >> if you think about who the best are, nanorax the company we're the majority owner of, is the best in class servicer of the international space station. they've done over a thousand missions we have a commercial airlock attached to the iss. that's best in breed and then when you think about technical integration, manufacturing capabilities, companies that can deliver hardware on time and budget, lockheed is best in class. >> i mean, there are other players that are working on their own space habitats and stations right now, blue origin is putting investment to work on this front as well, and a number of others. is there going to be room for everyone in low earth orbit?

>> yeah, i think so. we anticipate between eight and ten free flying commercial space stations by the end of the 2020 pz there's plenty of room in the ecosystem. that shocks people, i know, but when you think about all the capability that we can enjoy in space, not only space tourism, not only, you know, human rated habitat, space manufacturing, science research, it really is going to be a renaissance of in space capability. >> yeah. of course, we mentioned you're a majority shareholder in nanorax and own a bunch of companies under the voyager space umbrella getting ready to file to go public via traditional ipo which is exceptional compared to the way we've seen other space companies go public this year? >> yeah. that's certainly our intention maybe one or two other acquisitions we would like to get done prior to that, but, yeah, we're on a glide path to get filed here pretty soon.

>> i want to ask about your nonprofits, space for humanity, you're the founder and chairman, news there that world view is going to start flying passengers on its balloon rides starting in 2024 and then space for humidity has bought the seats for that trip are you going to be on board >> i don't think so. the whole purpose of that organization is to democratize access to space, so i think it's unlikely just to be clear, i don't run it i'm on the board, and i'm the founder but i'm not actively involved in the day to day. >> okay. going to be interesting. in the year that we have seen so many private citizens go to space in some form or fashion it's interesting to see another company working on another way to do that as well dylan taylor, thanks for joining us today >> thank you. mike, just getting a check on the markets here to finish up our two hours together it's really a mixed picture. the dow is ever so slightly

negative i mean not the dow the dow is ever so slightly positive the s&p is ever so slightly negative the nasdaq is the big under performer giving everything with snap and the other social media and tech stocks falling. >> generally you would say the broad market kind of taking a pause right here, seven straight days to the upside we've surpassed the former highs. pretty logical but the market trying to build firewalls against a lot of these like snap, like intel, even the overall semiconductor index is up, despite big losses in intel. we did get the market manufacturing and services pmi numbers. a light miss on manufacturing, but actually better than expected on services good employment indications on services it's what i think wall street wants to see as this transition from hot demand for stuff and then transition towards services and that's the next phase theoretically of this recovery and expansion which would in theory ease some of those supply chain frictions that we've been

talking so much about. >> we'll continue it talk about as we get another busy week of earnings next week the s&p did hit a record high today. that's going to do it for "squawk on the street. "tech check" starts now. ♪ >> good friday morning welcome to "tech check." i'm carl quintanilla with jon fortt and julia boorstin there are three stories in tech, 30 billion gone in snap, stock tumbling 20% then another ecosystem play, google changing its app store model, cutting fees, names like bumble, match and roadblock soaring. third stock at play intel, shares are sinking as sales miss and the company sees a tough road ahead for its turnaround. you will not want to miss pat gelsinger in a first on cnbc interv