same with the s&p. oil, which i don't think we can talk about it too much because it will filter through to a lot of things and we know it hurts them. but parts of the economy more than others. and then the ten year is always something that we should check 1.63 make sure you join us tomorrow, everybody. >> will do >> "squawk on the street" coming up next. ♪ good tuesday morning welcome to "squawk on the street." busy day at q-3 earnings got a bunch of giants raising guidance we're looking for record highs at the hope for dow, s&p, facebook is in focus our road map begins with facebook shares rallying ahead of the open

investors focus on the earnings beat looking past the whistle-blower document dump. >> and we're keeping an eye on the industrials. >> and tesla remains on watch after the company passed that trillion dollar mark in value during yesterday's session i guess time to dive into facebook we actually got some explicit q-4 revenue guidance for the first time big investment cycle $50 million buy back. >> i think the average users were better than i thought but i think people are anticipating thursday, anticipating mark zuckerberg talking about -- they changed the verticals -- the metaverse i think he's more excited about the metaverse than anything. i also think as you guys know that the metaverse is the next step after video and i think david -- it's not being done -- it won't make money initially. he's not doing it to change the narrative.

the narrative is kind of -- didn't come up that much on the call, nor did that adjudicating board that i thought you could have said, listen, you have to change your way. the analysts seem to be uniquely tone deaf to the issues, i think. >> analysts are not known for asking those types of questions. typically journalists do and zuckerberg doesn't talk to too many journalists that i'm aware of i pulled the metaverse stuff from the call to read it again because it's really important. you've been talking about it for some time in the larger context, also involving nvidia. but that number that struck me -- and i think should strike everybody -- is wow, is the $10 billion number they're going to spend $10 billion at this company. it's kind of more or less lumped in with operating expenses, on building the metaverse without any prospect of this becoming a revenue-generating business for years to come. >> but he did say -- >> it's amazing. >> but he did say that this is

the way that people will communicate through the metaverse. it's not going to be zoom. >> he has a view of the future listen, you can make an argument this what you want from a ceo. he's looking out years ahead he sees a huge potential opportunity and he's spending money that only the likes of a couple of companies can actually spend. facebook, alphabet, microsoft and amazon and apple are the only ones in a position to spend the kinds of numbers that facebook is at, what, 34 billion in capex for next year that's the high end of their range. and you throw in operating expenses >> they have 64,000 employees. >> and they have incredible gross margins. >> i think we're going to see uniquely the description of what the metaverse is going to do look, nvidia goes up every day because nvidia's chips, they're

ready. when jensen, the ceo, showed me what the metaverse was going to look like, i just thought there was going to be -- >> what is the metaverse going to look like, jim? i think a lot of people would like to know what does that mean? >> you program people to say what they want you can talk to people that you know you can have them in the room with you you can also have shakespeare in the room with you. >> second life you've have your regular life and a digital life >> how are you going to -- do you think if you're at college that you're going to sit there and learn about shakespeare from a teacher? you're going to learn about shakespeare from shakespeare >> a lot of comparisons in the notes this morning to when google -- alphabet carved out other bets although they say this is a much bigger deal for facebook than other bets >> i remember asking jensen about what it would look like.

one of the things you can do, you can -- you can say that you want do a seascape you can be able to communicate with your friends as friends digital world. your digital world will seem like the show "black mirrors." >> all right >> that's not what mark wanted to hear -- >> next it will be "squid game." >> they were concerned whether it could be used for harm. >> but the way that zuckerberg is talking about it, he's saying it's going to unlock a creative economy, both digital and physical goods and allow millions of people to be able to do work doing what they love as well there's also an enterprise element to this -- >> enterprise and education. and i think that -- we're going to see it all. i think that mark wants this to be his legacy. not anything else. you can argue, wait a second, is

that because he doesn't like the heat him i think the narrative -- he's anxious to get through the next narrative. >> there's been continued heat on a new round of reports today. "washington post" has a big story about how facebook's algorithm amped up content that included the angry emoji over, say, content that had a like zuckerberg did address this last night and argue it's painting a false picture. take a listen. >> i want to discuss the recent debate around our company. i believe large organizations should be scrutinized. criticism helps us good better but my view is that what we are seeing is a coordinated effort to selectively use released documents to paint a false picture of our company >> he's not arguing with any of the substance of the reporting.

>> no. i think he understands that there's a cadence, that things are being released, knows they're going to be released, they're being released in -- one by one by one. normally i would say that's the paranoid style of the web. i could clearly understand why he feels -- why didn't -- why wasn't all this dropped at one time why was some dropped on the day of earnings? the answer is, there's a coordinated effort by some people who hate facebook to release things every day >> did you get something new about facebook >> nothing i'm taking zuckerberg's side on this. >> i know you are. >> i think there is a coordinated attack >> there may be. but it doesn't mean that it isn't valid. >> i think that it deserves a thorough airing, but does it deserve daily airing daily hearing because things are

being sent to different newspapers, one this day, one that day -- >> "the times" had an interesting story on it in terms of the slack group and the way they went about coordinating the release of documents after dealing with journal >> who is tomorrow >> i don't know. >> i think it's important to mention, i'm looking through a list here of firms that are lowering their target. they did miss -- continue pressure from the ios change. >> that's not for real >> lowers their number to 405. wedbush goes to 325. jeffries goes to 420 these are all lower. on and on. >> because apple is going to have a new iteration that's even tougher on facebook. cheryl sandberg made an important point, now we're being

undercounted people remain convinced this is the best way to reach people the businesses is challenged i'm not debating that. when you look at what snap said, i think that made it so that we're not going to worry as much because this was better than snap it just was. >> we had tried to make that clear in the wake of snap, that this is more international, bigger advertiser base, less reliant on apple than snap specifically and that's what happened do you think 320 was the low here >> yes i think that we are going to be -- if i'm -- i sure hope i'm right on this. that we're going to be mesmerized what david said is confusing. >> the metaverse. >> the metaverse it's such a stupid name. >> spending 10 billion on this year -- >> engineers. >> it's software engineers. >> because, you know, you want it to be doing what you want it to

i think that there are cards in his hand that have not been played, that will be played this week. >> i'm sure there's cards he doesn't even know he has yet it's still the early days for this. >> i don't think he spends every minute thinking about the revelations. >> the end of the decade i would say later in this decade is when we expect this to be -- >> jensen would say earlier. the head of nvidia would say earlier. he had a five-year time frame and that was 2 1/2 years ago i think that's an underpromise, overdeliver situation. i really do. i think we're going to be blown away i think this is going to excite us it's going to be something knew and we're going to be talking abil about a long time. >> are we going to do our show from the metaverse >> of course if he looks at you weird, you can maybe delete him >> you can disappear me. >> what's scary, how many years ago did elon musk attack me, he saw the metaverse coming and he

was going to cut me out. >> all through a simulation. >> anyway, i think facebook is a buy. >> he's not. sometimes i would like him to be >> look, he -- if jensen were there with him, it would be amazing. i don't think that's going to be the case look, don't we all want to have something new? don't we >> as long as it's good. >> and i'm sure with facebook in charge, i'm sure it will be great. harmony and love will break out around the planet. i'm sure the metaverse will be everything we've been waiting for. what could go wrong? what could possibly go wrong you're such a negative person. i'm on instagram constantly. i instagramed on a tractor this weekend. i thought it was cool. >> some parents of teenage girls might disagree we know where you're going >> my daughter got a new job working antisuicide. >> there's a lot of challenge. jim mentions elon musk, he did make comments about inflation.

cathie wood in a debate over that issue watching tesla's evaluation over the $1 trillion mark we'll be back in a moment. [coins clinking in jar] ♪ you can get it if you really want it, by jimmy cliff ♪ [suitcase closing] [gusts of wind]

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we built the recycling system from the ground up, helping san francisco become the first city in the country to have a universal recycling and composting program for residents and businesses. but it all starts with you. let's keep making a differene together. watching a bunch of big industrial and transportation names. u.p.s. is a beat

revenue ahead up 9.2 they raised their margin to 13 from 12.7 and their capex guide. if they help the transports get a record, that would confirm the industrial records and you would have some people say this is for real. >> i think that you're exactly right. i think the transports are in great confirmation mode. we have to remember that u.p.s. went down after fedex. fedex didn't do that well. he said we're really done with the margin compression and a lot of people -- the stock was down after the interview i didn't get that. but the operation margin target raised remember, we all thought that last year was the year that you ordered stuff online because you were home. no she's gotten it together i want to know -- i think she's turning down business. >> yes >> that is -- >> turning down bad business and i think that's very, very important. i like the fact that logistics

is finally starting to do something. this was just one of those true blowouts in the face of what people thought was going to be a blow up. >> you had been frustrated with this name. >> yes, and i was frustrated in part because the last quarter was not that strong. the analyst meeting, i felt, was down beat. it was one of those things where i was trying to literally get her to say, look, wasn't this better and she kept holding back. to her credit, underpromise, overdeliver. i begged union pacific to be more positive. and they shot the lights out people were going -- maybe they just don't want -- they want to be cautious because everything is so screwed up in this country right now. >> supply chain is still -- >> 3m supply chain. >> let's talk 3m for a moment. we have 3m and ge. it's interesting, one is $105 billion market value, the

other $115 billion looked like a decent quarter, jim. >> it was up four at one point. >> the organic revenue growth number was, what -- >> a strong 6% average adjusted 6 6.3. >> and they did update guidance in terms of sales growth -- >> you remember the key line, it said price increasing more than offset by higher materials i said good, good, good, good, and i said, holy cow bad people are having a hard time with raw costs. >> he was asked about supply chain, i'm not sure we're yet at a place where we would say things are stable. >> their conference call started at 9:00. we should probably get more there. ge has a conference call that began at 8:00. we largely have everything we're going to hear. >> i like the quarter.

i liked the quarter. except for renewables. >> they took revenue guidance to flat they did increase their expectations for adjusted industrial profit margins. >> well, i can go through a myriad of reasons why i like it. executing better in aerospace and not being hurt by boeing's missteps there were a couple of things i liked about ge, one is the balance sheet. the order book is extraordinary. >> they're going to close that combination very soon. >> yeah, they front ran that. >> that's going to close in a week or so. >> health care. >> and that reduces that even further. and ge capital becomes -- >> it's supply chain they had far more orders than they can produce mris. they can't -- there's just not enough components. so the stock, if it doesn't rally is because, once again, the supply chain

>> it's not a demand problem. >> definitely not. ultrasound is strong. >> it's not a function of -- fulfilling demand is the problem. it's not creating demand. >> i'm going to give you one person who i think figured this out. all right? and it's kari at best buy. corey barry. she saw a supply chain problem developing four years ago. took a big hit for earnings. made it so they would never be short product. nice price bump today and i got to tell you, that company is undervalued versus -- they have the stuff for christmas that you want they have it that's why it goes from 150 to 155. it's best buy. >> interesting hasbro with some encouraging holiday guidance as well we'll talk about that -- >> and we -- actually, i missed

the -- i hope the family is doing well. >> yes we'll talk about tesla, of course we'll get cramer's mad dash and the opening bell in about ten minutes. bogeys on your six, limu. they need customized car insurance from liberty mutual so they only pay for what they need. woooooooooooooo... we are not getting you a helicopter. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪

let's get to a mad dash. we have a little less than eight minutes before we get started with trading here on a very rainy day in new york city. >> yes, weatherman, absolutely in the metaverse, it's always sunny. philadelphia and the metaverse you want to talk about raytheon. >> i think it's important. this is a good quarter can the stock get out of its own way, no.

the defense contractors, this is very important biden is just as strong on defense as his predecessor so you have a backlog of just a -- $156 billion backlog. 65 billion in defense. the chinese are ahead of us was one of the big themes. i don't want that. you don't want that. it reminds me of the -- >> we do spend 800-plus billion dollars on defense. >> maybe it's on the wrong stuff. >> the chinese don't spend anywhere near that >> but they work for free. >> 22 -- chinese have a missile that can go 22,000 miles per hour. >> that's very fast. >> and i remember this in 1959, i heard about the missile gap constantly, that the russians were going to do this. they got the h-bomb. but what i like about this, david, is that there's actually good aerospace without the

787 -- boeing has had a problem producing planes that may come up tomorrow. they repurchased a billion dollars. collins aerospace is doing much better than expected i'm saying this is a good example. what's their biggest problem m vax. >> he should they could be faced with having to dismiss thousands of employees >> any defense contractor -- everyone has to be 100% vaccinated >> required to be vaccinated he indicated 3% of their employee bases refused so far. >> but people estimated, he said it's very hard to replace. there aren't enough people where did they go? well, a lot of them are not willing to get vaccinated. a lot of it is in the south where the manufacturing base is of our country. >> we have a lot more for you straight ahead more earnings. we'll talk about that potential

deal with entain falling apart thank you, jim you can catch us any time, anywhere because you can listen and follow "squawk on the street," the opening bell podcast. we're back after this.

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we continue to watch shares of tesla, up 10 of the past 11 days trillion dollar market cap the fifth biggest company, surpassing facebook as of yesterday. on the hertz deal, says it's going to give them a trove of data about mileage and that they'll be able to vertically integrate fleet management, essentially. >> i think they can. but i thought that elon musk's tweet was brilliant. we have tremendous demand. it's supply that's the problem everyone else is worried -- everyone has demand. but this guy sold through. when you start talking about what he's doing with hertz,

that's software as a car service. basically find more information, make it a fly wheel. and it's real fly wheel. david, i'm in awe. he makes them everywhere he's going to make them in -- berlin is going to be great. there's demand for tesla all over the world there's not some of the same thing for some of the other companies. >> that was an interesting tweet on his part. it was promotional because he often is but he's like, that's not the issue. can we make enough of them >> look, if they can -- if they can leverage it, the thing is, what he needs to be able to do is make all the cars he needs and he can't there was a time when the bears would tell you, listen, there's no demand. well, that was just wrong. >> or that it was subsidized demand. >> that's true >> meanwhile, though, the trillion dollar number is staggering tesla is the only -- there's only $4 trillion companies right now and it's one of them.

>> the market cap that was added yesterday -- >> excuse me five. >> it's equal to two times four. it's bananas >> ford is going to have a really big -- a really huge electric fleet next year and it's not -- it's kind of like, yeah, so what? they're going to be sold out of the f-150, but it's, yeah, so what and i find this astonishing that doesn't matter what ford does, what mary barra does, he gets a hertz contract and we're excited about it. >> they're paying 4.2 billion over time -- per vehicle 100,000 vehicles. >> doing some division. >> 100,000 vehicles is -- that's all over -- >> over a period of time. >> i'm saying that it's just the same thing over and over again we know that he sold through so every time he gets another order, does it go up it's not -- it's obviously not an auto stock, obviously

we don't know what it is [ laughter ] >> there's the opening bell, away the big board is live. climate acquisition corp. celebrating a listing. mink therapeutics focused on the treatment of cancer. you mentioned lily a little while ago. what brought it down >> well, i think it's back up. that was just maybe a rogue trade. you have to understand that lily missed the quarter they absolutely missed the quarter, but what this is about is their alzheimer's -- accelerated approval out of the fda. but they've got a new priority review diabetes drug that could be enhuge there's hype in it and he didn't hype stock didn't rally that much >> talked about minimal covid

therapy revenue. >> right and i think people aregoing to look at that and say, well, that's unfortunate if it'slily is down a lot, you e to buy it. i believe that their alzheimer's drug will move the needle. i think that there will be people who want to take it just simply because they want to prevent it it does reduce plaque. there isn't any study that say it doesn't reduce plaque we have to decide as a nation whether reduction of plaque is enough and i think we will say it is enough we did not mention the reason why facebook missed its numbers. apple has decided in its ios -- and there's another ios coming that is tougher on facebook. they decided, that's enough of this we're not going to do this anymore. tim cook is saying we don't want to do this anymore we don't want to be a vehicle -- he actually is -- customer goes

first. we all feel when we talk and it hears what we're saying and it produces that, we're done with it we don't want that >> anybody who has an apple phone is probably had a click allow or not any number of times for the websites that -- >> he's offering -- >> they need that information to enhance their advertising and know what's going on. >> it's apple versus facebook. >> yeah. >> right >> listen, probably not great for pinterest. there are -- >> collateral damage. >> yes. >> when two elephants fight, you don't want to be the grass it gets pounded. >> i like that i think tim cook has the upper hand because we love our phones and i believe that phone sales are going to be very, very strong there's -- i just wish that -- we have netflix doing great and we have -- by the way, i think amazon is going to do very, very well i think apple is doing much better than expected. >> alphabet also may do well

and, in fact, may be a beneficiary of -- the search may be a beneficiary of the loss in advertising, revenue, if you want to call it that. >> first party >> that's it you have intent, you go and search it's a very different thing. now youtube, they may -- theirs is similar in the sense of targeting and -- >> the stock went down. >> alphabet may very well pick up there's an expectation they will >> i think that's a great call by you absolutely >> i'm not making a call i'm just stating something that -- >> okay. it was a bad call by you it was good for somebody else. what do you want me to do? i don't compliment. >> i don't make calls. you make calls and then i sit here and make fun of your calls. >> that's true thank you for that i was going to talk about microsoft -- >> by the way, jeffries reiterates a buy

but nadella has made comments lately how there's so little competition in search and, you know, they would like to be a bigger piece of that. >> i don't think he wants the government involved. i think he just wants to win more -- he's got to develop a better product did you catch the fact that intel is still getting downgrades the ceo -- >> i'm aware of who he is, thanks what about him >> incredibly nice. >> uh-oh uh-oh. that's not good. >> what happened to we finally got an engineer in the ceo's chair. >> what they need is to be able to get to the -- don't you have to crawl before you can walk. >> it's going to be a while. it was not a great quarter to your point, jim, the stock has not performed particularly well since. >> he should have said it's a rebuilding year. let's look at it like this when you have a coach who comes in, a new coach, what happens?

you don't -- you can't turn it around the first year. you got to take time he chose to set himself up for failure. and i don't understand why he did that he set himself up for failure. you absolutely have to change your top team and he hasn't done that yet. >> how was he supposed to control apple's move into vertical on chips and all that lost business? >> well, i think that -- that was kind of in the cards i think that people feel that -- you talk to sanjay at micron, they are the u.s. company. no, everyone talks about intel intel. intel. i was an intel hawk. this is ridiculous intel is not the same company and it doesn't matter that a guy who was there before comes in. he has to have a little humility humility is a good thing >> okay. i'll take that >> i did want to -- did you hear

anything about draftkings? >> i'm going to do it right now. draftkings has terminated its offer and the talks that were taking place to acquire entain we first broke this story back in -- was it september 21st, i think, around there. they increased their offer it was 28 pounds most of it was made up of draftkings stock i think we were talking. yeah, 22 of the 28 or so pounds was made up in draftkings stock. at least that's what we knew publicly where it went from there, unclear. not enough certainly there was always a thought that as high a price as that was-- and don't forget, this is a company that earlier this year, mgm offered 3, roughly 13 pounds to buy they rejected that as high a price it was, the fact that much of it was made up in draftkings stock seemed to have given entain some pause. you can see draftkings stock had

suffered a bit it is up today and entain anticipated, of course, given there is no bid any longer is down i want to keep an eye on mgm too. it was a potential beneficiary member of their partnership with entain and they were able to gain control at mgm they certainly might have benefitted from that as well but that story that we first brought you, they extended the deadline on october 12th entain extended the deadline again on october 19th. here we are prior to any -- prior to the deadline expiring which was november 16th, draftkings says, no mas. >> this is a customer acquisition game and i think that genejason robis knows how to spend to get customers. will the casinos have an edge because they've been set up for betting. david, i don't think so. when it comes to draftkings. draftkings has decided, look, we're not going to lose this

game and jason robins has a lot of firepower and he just got a lot more firepower gambles is huge. it's doing well. we're going state by state it is not -- a lot of people feel that the back end of gambles is overdone. and i happen to agree with that. there's a lot of companies that are supposed to help -- >> maybe draftkings and robinhood should get together. customer acquisition being a key part of both of them they're doing the same thing -- >> when i interviewed vlad, i presented -- i happened to agree with a young man who was 19. and he said why did you trade? he said i graduated from candy crush to trading i thought that vlad did a good job. when you speak with youth -- >> speaking to the youth >> yeah, it is amazing to hear a guy say, candy crush is the gateway to robinhood

i thought it would be the gateway to draftkings. >> i wouldn't have anticipated that >> that was a good and exchange with you and vlad about candy crush. he's gotten better and better. by the way, the sec likes the -- >> ceo of robinhood. which is going to report numbers -- >> thursday. >> but -- >> no, tonight tonight. along with microsoft. >> and people genuinely believe there's a lot of stock for sale. but you don't need to do it today. >> jim, i wanted to ask you, there's -- there is a a sense among some that the record highs that we've gotten again today on the dow and the s&p are related somewhat to the earnings and the quarter. but the notion that corporate tax is not going up. manchin is on the tape right now. >> the only thing that -- yes. manchin -- president manchin that guy is -- he was saying,

listen -- i want him to come on. he said be sitting right there he really should covid or no covid. he's probably quadrupled vaccinated what matters, when you listen to raw costs, what's amazing is that the street thinks that steel is going to be down in price next year. i asked every ceo whether they think steel is going to be down. no, they cthink steel is going t be up. it's a huge part of the american industry that sounds like infrastructure. but not massive infrastructure which then gives you this kind of, you know, decent -- there will be a deal, no corporate tax. the wealth tax, i'm not certain on whether that's just about hedge fund managers. don't you love it when hedge fund managers, i'll pay it, but i want it earmarked. i don't want it thrown away. >> that's more likely to apply to the likes of musk and bezos,

those who own enormous amounts of stock in their company as opposed to a hedge fund manager. >> did you ever study lennon >> a little bit. i want you to read "what is to be done. he was in favor of mass murder of millionaires. >> i don't think they've gotten there yet. >> but that was his -- people think that -- you study lennon, he was not thinking. he was acting. stalin turned out to be nicer. he was a mass murderer >> tough road there. >> a bunch of mass murders really evil. i was surprised when greg hayes said that the russians are ahead of us. how is that possible are we back to those days? >> the chinese have -- the chi chinese have an advantage on hyper sonic. >> when i asked if they were all

going to die, they say no. >> he does run a defense company, just so you know. just saying. >> right we're behind we're behind >> lockheed martin didn't have good things to say. >> he's not going to say, we're way ahead. you don't need to buy my weapons systems. the stock is down 12 >> we do have a record high on the dow, s&p 10 points from 4600. let's get to bob pisani. >> mixed open. 3m weighing a little bit, intel weighing a little bit on the dow as well. the important thing is, leadership groups still there. semiconductors, we're not far from a new high on the smh there. energy has been a leader throughout the month industrials holding up banks a little waeaker after a terrific two-week run. what's going on with the supply chain issues been listening in on mike roman talking on the earnings release. he said market demand remains

strong we navigated supply chain disruptions. there's the quarter in a nutshell i've been listening to the ceo talk at length about addressing supply chain disruptions i think significantly margins came in at 20%, they're talking about. the guidance was 19 to 20% navigating the supply chain disruptions is a big thing here and not dramatic reductions in margins right now. sherwin-williams was similar they've had some margin declines here there's some of the companies there. same story, demand remains strong raw material and costs were pressuring margins and they're implementing price increases but this is important at the end, they specifically said, they're confident the margins will recover as the inflation headwinds will eventually subside. that's what they believe here. but here, they did have some impact on the margins. you see what's going on here and put up the supply chain issues

extending the building -- the overall building cycle so that's an important issue you see some of these stocks modestly to the downside the big thing overall is margin erosion is limited to certain industries and still pretty sure we'll have 12 -- almost 13% margins in the s&p 500 meantime, we are just -- we have, like, 16 ipos coming this week we're in record territory for all the ipo business right now best ever right now. we're going to have rent the runway tomorrow here, big fashion. it's a relatively small deal compare today what we're actually looking at here they're raising 293 million. the big deal of the week is going to be over at the nasdaq everybody is talking about global foundries it's a foundry company, but it's a u.s.-based semiconductor foundry. u.s. based and we're talking about raising 2 1/2 billion dollars. it might have a $24 billion market capitalization. this is a big deal

this would be the third largest ipo of the year in terms of raise. and the biggest u.s.-based ipo raise of the year. coupang raised 4 1/2 billion if global foundries, it will be number three bumble would be number four. we're breaking all kinds of records, carl, in terms of dollars for the ipo business here we're going to have -- so far, we've had 339 million. the old record is 486. the total raised, 113 billion. we're not even done with the year yet the old record was 97 billion and that was back on that record year remember that? of $2,000. this is not including spacs or direct listings. this is just ipos directly dollar raise is really -- if you consider spacs long with everything else, a stunning amount of dollar raise carl, back to you. >> thank you, bob.

as we go to break, let's get to the bond report. we did get down to 1617 this morning. lowest in a couple of days i got some data coming out this morning. new homes in conference board, later in the week, durables, and, of course, on a core. dow up record highs on both don't go away.

doj increasing the likelihood of a lawsuit. they say doj lawyers have asked customers questions about how they maintain strict control over the iphone and maintain as strict round sent to people over the summer meanwhile, it does reiterate

neutral into the print thursday. >> i can remember the microsoft antitrust investigation and back and forth was front-page news all the time meanwhile, alphabet has been under investigation for the doj. i didn't try to come back at facebook these stories take forever, of course, to play out. but they don't seem to capture any of the attention in the way they once did. >> no. and i think they don't because there was a crucial error that, if you remember, steve balmer did. he took on the justice department, which is something that was highly unusual and very ill advised. and these guys are cooperating they all cooperate they do not say we didn't do this and as long as you don't embarrass the department of justice, then things just kind of muddle through. >> one day we may be faced with

big headlines ear moment of truth for these companies. will any of them ever be forced to break up? are there arguments to be made about crossing of their businesses i don't know >> we're worried -- well, stocks worried about creative law p proscuatory precaution we're not seeing that now. >> we've seen it in the past in different ways competition beat us again. how? they have a better finance system than we do. i feel like they might have a better finance system than we do. workday. how do they make better decisions faster? workday. it's got to be something workday. i think i got something. work... hey, rob, you're on mute.

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let's kget to jim and stop trading. >> includes judy mark attodes. china was remarkably great the china property developers only represent 3% of the business she says u.s. is on fire doesn't matter and one of the things really interesting. center city. they're still building center cities and i've known judy.

she is good as gold. if she says it's good, it's a lot of cash flow, i think the market is misinterpreting her comments >> she was talking about china >>er to are worried about property developers. >> when we talk about evergrande, which has not missed but others have missed >> that's why the stock is going down she said the business is really service. everyone cares about saving. or as my friend, michael hailey, a guy who does a lot of demolition safety never takes a vacation. if you leave this show with anything, safety never takes a vacation >> thank you for that, jim i will try and be safe >> if mark zuckerberg came on, before he started metta verse,

safety never takes a vacation. >> that's all he needs everything will be fine. >> i think that logitech had a great forward look it's just the opposite and safety, it's such a great thing to say i got to script that >> let him know. i have four words for you that will change everything, mark >> good to have you back as a reminder, you can get in on the new cnbc investigating club. find out more at cnbc.com/investing club. or use the qr code on the screen dow's up almost 100. and record highs yet again

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welcome back to "squawk on the street." live with breaking news. if we look at consumer

confidence for the month of october, expecting a number near 108. much better. 113.8, following 109.3 definitely solid and it reverses, it reverses three negative months in a row mostly due to energy prices rising, of course. and if we look at the present situation, it moves to 147, following 143.4 and finally, expectations jump to 91.3, following 86.6 fed propped over at 12, definitely reversing a minus three, which was the first minus number in 16 months. and new home sales for the month of september jumped to the highest level at 800,000 seizeinally adjusted, annualized units and of course, that follow as downward revision of last mo month. and we know the issue with home prices

this jump was somewhat expected. home sentiment index jumped to 80 we know that's a lofty number. higher prices and higher confidence but we know the biden agenda may be passing around 2 trillion the more money, the higher the prices seem to go. di dianna, what do you see in regard to the jump in new home sales? >> reporter: i'm staring at the price. 18.7% annual jump in the median price of a newly built home sold in september $408,800 was the sticker price we saw a sharp drop in rates in september and august it fell below 3% is that was the first time we'd seen that in a while people may have jumped in to get the low rate before it went up which it did that gave them spending power.

and there's a part of the report, which i love to look at. the home selling at what price point. the share of homes over a million a year ago was 5% of the market we're up to 9% of the market over a million dollars and there was a miss on revenue. they noted there were significant disruptions in supply chain and challenging conditions so, their stock down on that news carl >> thank you very much and thank you rick santelli. and welcome to another hour of "squawk on the street. so, we have a beat on home sale said, confidence, combine that with q3 earnings and guidance and we have highs once again on the dow and s&p. >> there are so many big movers to talk about today. we're just going to start with three right now.

we're going to start with lockheed martin, which is sinking. down almost 10%, amid mixed results. revenue fell short guidance is what is in focus for the biggest weapons maker. and lowered, not only 2021 revenue guidance, but the outlook for 2022 sales as well as it's reassessed the five-year business plan. and in agreement to deliver fewer fighter jets than previously planned those are some of the things factoring in here. multinational industrial giant, 3m, on the top and bottom line that's increased demand. stocks about six-tenths of 1%. higher inflation, supply chain bottlenecks, commodity prices all due way on the bottom line we're going to end with a health care name. lilly did spend more money on

research and development the company also raising its full-year outlook. nonetheless, the shares are down 1.5% let's turn to another earnings mover it is facebook a mixed report >> well, facebook beat on the bottom line but revenue and revenue guidance fell short of expectations the stock was bolstered by the announce of a $50 billion share researches authorization and the call start wed with the defensen the face of growing scrutiny take a listen. >> the reality is social media is not the main driver, then it probably can't fix it by themselves either. we should want every other company to make the investment and achieve the results we have.

i worried about the incentives we create for other companies. >> after somewhat emotional defense, he pivoted to talk about his confidence with big investments in the mettaverse, which is separating into a new devisions, called facebook reality lab and telling e commerce, a key tool to help navigate the ad tool navigations. for >> they make e commerce and customer acquisitions less effective on the web, and allows them to set up shop inside our apps will become increasingly attractive and important we built ads that can go to business's website or their shop, depending on what will perform better for them and that will help more businesses navigate this challenging dynamic. >> there were quite a bit of questions about facebook's work

to address apple's ios changes ceo saying they think they'll be able to make meaningful progress by the end of the year, while ch challenging targets are a longer issue. >> that is a great set up for our next guest for more on facebook, let's bring in eagle of web bush the fact the stock is trading higher perhaps not as bad as some had feared your takeaways from both the results we got after the bell yesterday and some of the comments we got from the call last night >> sure. thanks so much for having me looks like the stock is trading lower now, which i think is actually more in line with the quarter that we just saw and remember, the set up really changed after snap recorded earnings last week and the impacts from apple's ios

changes came to the forefront more expectations had been lowered coming into the quarter. you saw revenue mix and the outlook below expectations and what we're seeing right now is privacy changes from apple is having a real impact across the digital advertising landscape. and facebook is at the forefront of that. i thought they gave great detail on how much it takes to correct and adjust it does feel like a midterm type of issue and that's really the biggest impact right now >> the facebook reality lab segment, that's going to be broken out here. we've heard zuckerberg talk, for weeks, if not months about the opportunity around mettaverse verse. how great is that opportunity, longer term, for the stock how are you factoring that in?

>> there's a lot to learn around metta verse. it certainly had the opportunity foobe a really impactful part of a their business we're talking multiple years mark zuckerberg talked, on the call, over the course of the next decade. we should expect a lot of extensions and facebook did give what to expect next year they're going to be up 33% so, we're going to see a real impact to margins and then the revenue side, from metta verse, is a hit for a couple of dwreers. probably longer than that. i want to see a lot more expenses and we have to wait and see how it all plays out, in terms of revenue but we're not going to see it anywhere in the near term most likely >> i want to bring in michael

nathanson as well. maybe we'll meet in the metta verse and we can do an interview there. $10 billion. it goes to the incredible gross margins they have that they can spend this type of money and come in with those kinds of margins that they have >> i agree we backed at the 10 million. earnings are 19 bucks next year, ex-metta verse the stock's trading at 16 times next year's earnings i know we have head winds. i'm cool with that we've given no credit from metta verse. it feels like we're going to talk about hew great stock facebook is. we have worries to hurdle. 10 billion is a rounding error look at the company's quarter earning power, it's amazing.

adding to up 97 billion how are investors going to view this, given what is an incredible profitability over all of the business, as the spending continues to ramp up, without any revenue coming from the metta verse for years to come >> we're having a hard time trying to figure out how do we value this what bench marks do we use there's metrics that we're able to track the cloud here it's just going to be, feels like a black hole too, excuse the joke. it feels like black hole and i think the street has given facebook a lot of trust, in terms of their ability to invest for growth we believe they know what they're doing. i thik it's, in some ways, unmodeled over the next couple of years we back out the losses, giving

them no credit at all for top line and said look, we hope is it works we don't have enough road maps to understand how this is going and how it's going to trend over time >> i guess to bring it back to this universe and stick with a theme here, how does this set us up for twitter earnings? how does this set us up for alphabet earnings? and what we can expect to see as we get more of the tech day unfold >> sure. what we have seen so far is the privacy changes from apple are having a really pen trbl and noticeable impact on digitaled a vrs iters. they're having a challenge targeting their audiences effectively. measuring how digital ads work it's really impacting everyone for twitter, they're a lot more

focussed on brand than direct response most of the privacy impacts are happening around direct response advertising. and google, to a greater degree, in our view. we would expect dollars to shift? search google search has a much more meaningful desk top presence and none of this imp palkts desk stop at all. they targ at lot more rounds of context to search behavior google has its own system across search and youtube, which is mostly brand android benefits for and i think google is the best set up among digital advertisers to faces the impacts. >> okay. gentleman, thanks for joining us this morning shares of facebook are lower

>> as we go to break, here's a look at the road map for the rest of the hour and that would be tesla. now, the fifth most valuable company in the u.s >> and a lot more earnings ahead. gps, hasabro an this... is the planning effect. this is how it feels to have a dedicated fidelity advisor looking at your full financial picture. this is what it's like to have a comprehensive wealth plan with tax-smart investing strategies designed to help you keep more of what you earn. and set aside more for things like healthcare, or whatever comes down the road. this is "the planning effect" from fidelity.

got, we had an incredibly positive outcome from some of the strongest investors in the world. it's not just expanded 20% when people look at the list of investors, they'll be amazed at the quality and strength of the investor group in tesla. >> there's a walk down memory lane elon musk 11 years ago outside the nasdaq that was the day tesla went public the ipo price back then, 17. they're the latest to reach a trillion dollar milestone. and here's a neutral rating on tesla and a target of 250. craig, i'm not going to give you a hard time because i love this line the market valuation apires to rest on the assumption that the hundreds of evs slaeted to

launch by 2025 will be flops tesla does not operate in a vacuum >> it will happen over the next few years. they're executing impeccably but the market valuation is a distortion they're going to produce less than a million vehicles this year and they're valued at more than the rest of the industry. so, does tesla deserve a 75 x premium? my answer is categorically no. you look at what happened yesterday. they had a fantastic contract. 100,000 cars from a major rental company. that's a big deal. $4.2 billion contract. but it added $114 billion to the mark cap you know, if ford or general motors announces something similar, and they both do a lot of work with the rental houses globally, is that going to have

an impact on their market cap? no there's a massive distortion >> if that's all true, and i see your point about fleets, why didn't hertz announce a deal with ford or gm for the models to come? >> they need to get out there and take the market share that we expect them to take from tesla. there are over 500 electric vehicle models slated to be on the road by the end of 2025. tesla, right now, is having its hay day. for it's executing impeccably but the competition is real and it's coming and has incredibly good financing so, it's hard for me to be bullish on tesla here. i love what they're dig done they're a pioneer in evs and they're fantastic vehicles i think everybody should test drive a ev before they buy a

vehicle, because probability is good they'll take one seriously. but valuation is too much for me >> and i get it. and it's funny but i can remember having conversations with amazon 20 plus years ago where people say the market cap is bigger than the entire book business or sale of books. i mean, people didn't have the imagination to realize what amazon's real ambitions were i wonder with tesla, you know, what about autonomous and what that will mean what about solar what about things we haven't even thought about that clearly others perhaps believe musk will be able to deliver >> if you want to day dream, there's a list of things you can day dream. yes, autonomous, whole sale driving vehicles if you want to day dream, go or it, right? i think that's out of the bounds of what's rational for me.

you know, i know elon talks to his friends about taking on the railroads with autonomous trucking, you know there's electric flight is taking off these days. be my guest, right i love the progress of technology i just think it's a little agre agreszival to assume everything and to think they're not going to impact everything from pricing, because it's a great brand. the company's done a fantastic job, to date and others will also do a good job. and that's really my contention. that's why i think people are better off in small cap. then there's people who thing you're better off with one of the more traditional oems. >> i won't bore you with the shade over twitter i love checking in with you,

craig. thank you very much. >> thank you >> as we head to a break, look at shares of draftkings and entain late, september, we told you draftkings made a bid for entain and this morning, draftkings saying we're done. clearly not able to reach a deal to the liking, at least, of entain and they will now geaway, for some time. doesn't preclude the possibility that, at one point, there will be csodaonn isonliti ith sector globally hey businesses! you all deserve something epic! so we're giving every business, our best deals on every iphone -

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[ eerie music playing ] michael myers survived that fire. after what he's done to my family... i will kill him. tonight we hunt him down. [ screaming ] evil dies tonight. you want your mask? come and get it! ge, another big earnings mover in focus today here's the highlights of, i'd imagine both marges and supply chains >> those are the key issues, really on aviation, which is the bread and better and it'sner creases demands for after market business.

as planes spend more hours in the arks ceo telling me this is a business he sees sekwengsal improvement in growth and a higher margin business but ge is not immune to supply chain issues they're akin to playing a game of whac-a-mole calling it an endeavor with multiple moving parts and that issues are showing up, mostly in health care. about nine points per growth in the quarter. its renewable business not panning out the way ge hoped initially. that's primarily due to the pending tax credit extension and inflation issues weighing on the business to get the business back to profitability, he says it will take time. not next year but 2023 now, we're looking at the stock moving higher. look at the balance sheet. $75 billion in debt reduction over the past few years. they're in talks to sell the nuclear turbin business.

but over time, we didn't see the focus being on net asset sales that's been a strategy the last two or three years over time, it's about focusing on the higher margin businesses like aviation, seeing a recovery in health care and growing earnings that's where he sees growth going forward and that's what lifted shares of ge, which were flat when they opened but now up about 3% here guys >> the aviation piece of the puzzle is particularly interesting. so, commercial aviation, the rekovry there is taking route and becoming real and that's moving the stocks that are exposed to it. the defense piece of the business though, is where you're seeing a lot of weakness in part, because, whether it's ge, lockheed martin, or other names, like honeywell, you're

seeing supply chain issues and not on the demand side but in terms of deliveries i wonder what he had to say about g cap because that deal is expected to close next week. porou with three years at the helm, where he sees the portfolio. >> the company with the major deal set to take place and all the debt reduction that's happened >> so, $75 billion in debt reduction. and as i said, those talks are continuing with evf, a supplier of potentially selling the turbin business, which is sa -- $1 billion deal, i believe going forward, he said, the focus is on about playing office he really wants to grow earnings within aviation and find the higher margin opportunities.

because as we see in the after market business, up year over year that wasn't the price for the market >> thank you it's time for the eetf spotlight up another 2% today. stoking notes, i have to say from strategists this morning. one of the fund 's biggest holdings, ups, leading the charge on better than expected q3 results and double digit pricing growth is offsetting decelerating volume growth. and inflationary pressures that suffered so starkly by prievate fedex. and you can see that reflected in the stock, up almost 7.5%

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welcome back here is your cnbc news update at this hour. clean up is underway in missouri, after tornados tore through the region up to six tornados may have touched down this is in the northern part of the state. some residents say they feel lucky to be alive after seeing all of the damage. a cyber attack is causing huge lines at gas stations, angering motorists, who usually get half price, are forced to pay full price ahead of fuel price increases that sparked wide-spread protests in japan, princess says her

marriage was inevitable. they married without traditional wedding ceremonies and turned down the $1.3 million usually given to women who leave the royal family and one in three adults say they're so stressed about the pandemic that they struggle to make basic decisions millennials are the most likely to struggle at 48% the struggle has been real i'll send it back to you >> thank you well, let's get back to facebook the company is still under fire, of course, following the release of documents that show internal strife among employees, among other things and zuckerberg firing back in the earnings call. >> i want to discuss the recent debate around our company. i believe organizations -- i'd much rather live in a society where they are, than where they can't.

good faith criticism helps us get better but my view is what we're seeing is a coordinated effort to selectively use leaked documents to paint a picture of our company. >> our next guest says we can continue to expect employees to fight back, in a sense joining us is carly fiorina. carly g to have you. you know, it's fascinating to watch this on any number of different levels give me your perspective, from somebody who's run a large organization, in terms of the importance employees have here in the ongoing debate within the company? >> good morning. it's great to be with you as well i think we can expect revelations to continue. this employee basis is obviously very savvy and now there's chum in the water i think revelations will

continue and for mark zuckerberg, the problem is he's squandered a lot of trust he's gone to capitol hill on multiple occasions and made blanket statements about what is or isn't going on. and it turns out, the statements have been, as his own advisories board said, less than forthcoming or, in many cases, misleading i think, by the way, the pressure on mark zuckerberg, personally, is going to continue a lawsuit in d.c. court now names him personally it's virt wale unprecedented for a single individual to have this much control over this large a publicly traded company. and i suspect hareholders will continue to put pressure, not just on zuckerberg, but eventually on the board. because there are some real governance issues at stake here as well. >> of course that is the crux of the issue.

as you point out, vzuckerberg controls this company. from a shareholder perspective, it's performed incredibly well over a long period of time he continues to be focussed on out years, such as the metta verse. this would require the board to say we still see a threat here and i wonder what that threat really is, given again, it doesn't seem to have impacted, as yet, the financial performance of the company >> you're right. and i think in the short and maybe midterm, there is no threat to shareholders' wealth and obviously, in this latest quarter, you know, not a blockbuster but nothing wrong with it either a $50 billion share buyback doesn't hurt i think their decision to break out their investments in the facebook research lab is really smart because it actually

demonstrates how strong their core business model really is with amazing cash generation and gross margins. nevertheless, for example, the duo class stock structure should be sunsetted there's no reason for that anymore. there are reasons to have duo class stock structures but the time is long past. when it comes to facebook, there have shareholder whose have been agitating about that for some time they don't getanywhere because mark zuckerberg is such a huge owner. i think as you look at, for example, boeing director being under personal fire in delaware court now. i'm not comparing planes falling out of the sky to facebook but nevertheless, there are risk this board need to pay attention to >> there are certainly a lot paying close attention to esg, overall.

their employees push them to do so and i don't hear facebook's name as much. the social and governance, would seem to put it squarely in focus in that realm, carly are we not yet there and will be >> i think, in fairness, there are shareholder proposals that have tried to push facebook in those directions those shareholder proposals haven't seen the light of day. and they haven't seen the light of day because of the concentrated ownership in mark zuckerberg 's hands. nevertheless, i think pressure will continue. and if the pressure continues to come from shareholders, if it continues from the regulatory regime, even the sec or ftc, if pressure comes from the legal system, as it's starting to do on mark zuckerberg personally and from employee groups over time, i think that pressure

is going to matter >> all right well, we're watching it closely, carly. appreciate your taking time with us this morning. thank you. >> nice to be with you as we head to break, shares of polaris after they cut full-year guidance, siting wn% ghnohain constraints do 9rit w.

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for more, let's bring in the venture partner cofounder. good to see you again. >> good to be back >> you're making the point that we're seeing things like asset inflation and not so much random twe tweets from an elon musk, for example. >> that's right. the latest rally touching new all-time highs in bitcoin and etherium and many other crypto assetsute there. it's all based on real market forces and dynamics this time around it's not the same kind of spec speculative hype and apparently elon musk is tweeting something this week. personally, i don't know what that was that's an exciting development for the industry as a whole that we've come a long way in only six months, in terms of the foundation we've laid for this

type of adoption and therefore, these types of rallies >> he is tweeting a bit about inflationary pressures, so is jack dorsey. a nice debate between them and cathy wood i wonder how you think it's factoring into the crypto trade? is the main dynamic? >> i don't thing it's the main dynamic. i think the main dynamics come back to what we talked about earlier, in terms of the e, if f finally being approved and the likes of which we hadn't seen before. i think 1.5 billion in crypto backed funds, verses the preevlious all-time high, of 640 million. so, that's obviously a massive increase on that front i do think these inflationary fears are lurking in the back grbd

and obviously, really since it came into existence is this is something that is fixed in supply in a way that gold can't claim to be. and it is a digital alternative to gold and there a lot of investors looking at it from that perspective i think it is hyperbolic to say the least to be talking about inflation. bearing in mind the definition is 10s of percents of inflation happening at a very rapid pace and a very rapid pace of acceleration we've only seen hyperinflation over the last decade so, i'm not really sure where jack dorsey is coming at it from that angle he's got his own bitcoin bags to be talking there >> i mean, you make a key point. the definition around the

hyperinflation probably being debated, and these are crypto plays to some extent so, when you think of fast r master r master card yesterday are the lines blurring and is this where we're going to see underlying technology itself put to use in a much more meaningful way right now? >> absolutely. all of the lines are blurring between traditional sin tech and obviously social media companies, whether that's twitter or facebook blurring into having their own crypto plays. a few years ago the big buzz word was that everything is thin tech today everything is crypto, whether that's an nft angle

companies are adopting whether it's infrastructure, building insfru structure around crypto currencies or working with skb deve and developing their own digital assets which is exciting for those that got started in crypto. because this is all adding just good sort of tail winds to those businesses and i wrdant be surprised if we end up seeing acquisitions in the space and so many companies are growing at such a rapid pace themselves that they're actually now the pervaers selling into the bigger incumbents, which is a cool dynamic to watch play out in the industry. >> we mentioned genzler at the top. and for all of those in the

crypto space who criticized the secs regulatory framework, is he seen as a good guy >> i think yes and no i think he's coming out with a lot of caution to consumers and i'm definitely someone who believes consumer protections exist for a reason i think what we've also seen over the last couple of years, really, is retail wants to take the markets and they want to take finances into their own hands. whether that's through products like robinhood, whether that's through these more innovative cutting edge products and i think againsgensler has to put e appropriate warnings and protections. what would be a shame is see that stifle innovation i'm hopeful, cautiously optimistic, i would say, that we

can strike the right balance in this country >> we're all working on that jill, good to see you. love talking a little crypto this morning an interview is coming up on "tech check. all begins at the top of the hour as we're still within a stone's throofs&46w f p 00 dotting is

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welcome back to "squawk on the street." jez bezos blue origin is teaming up with a another private billionaire run company. organizal reef as it will be called will be a, quote, mixed use business park in space offering research, industrial, international and commercial customers everything from space transportation and logistics to habitation including on board crew and will be deployed in the second half of the decade as the international space station is poised to be retired it's the latest private space station to be announce affidavit they unveiled star lab with lockheed martin last week. nasa looking to fund early

development of up to four stations public/private partnership. blue origin and sierra space have a number of partnering and working with boeing and newly public small cap red wire which surged on this news this week. it's up 2% right now it's up something like 9% just since the start of this week because as jeffries puts it, quote, these wins support the potential to expand the revenue base just for red wire meantime, probably also worth noting that bezos' other company amazon is also making space-related news today as it strikes a deal with verizon for its project kuiper broad band satellite system. both of those stocks are trading higher on that as well and of course, project kuiper for amazon is $10 billion investment in over 3,200 satellites also for low-earth orbit. >> a lot of low-earth orbit satellites out there, right?

>> it's getting very busy. >> star link also? >> yep this will be a direct competitor project kuiper to star link from spacex >> yes >> keep it all straight. >> yeah. let's get other to dom chu now with his sector sort dom? >> i'll try to do it as best as i possibly can, david. so stocks, though, mostly higher today with every s&p 500 sector with the exception of a couple now floating the red industrials and consumer staples most positive territory. we're tracking outperformance specifically in the technology sector, particularly among the chip makers. so you have nvidia for one, trading all time highs, soaring today, very little real hard news still a lot of sensitivity in semiconductors playing out right now in many of those names that stack, by the way, has been on a tear in 2021. it's up around 90% other semiconductor stocks

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as the wealth tax proposal continues to gain momentum, our robert frank is taking a look at how some billionaires could game the new rules. they're already trying to figure out how to get around it, huh? >> yep, david. they're already at work on that. now, we don't have the details on this tax yet, but accountants and lawyers for the wealthy already working hard on potential loopholes. one tool for avoiding this tax could be trusts. billionaire founders like elon musk or jeff bezos could place their shares in a trust so they're no longer the official owners they would lose some voting power likely, but the beneficiaries could be family members so the ownership would still be protected then we have charity this would apply to those with 1 billion in wealth or more. right around that 1 the $2 billion level, they would create a foundation, contribute some

assets to bring them under the $1 billion threshold, get the tax deduction and avoid the annual tax and then there's staying private. this annual tax would only allow to marketability securities like stocks or bonds. closely held assets like private companies or property would only be subject to this tax retroactively once it's sold so you could see people shifting their stock holdings to private assets or even a wave of go-private deals where billionaires bring their companies private to avoid this annual tax and david, you know wall street already looking for an angle here they're working on some structured products for billionaire clients that would allow them to borrow more from their shares to pay the tax or even create some kind of new financial vehicle to hold those shares for them so they're now again the official owners. so on the legal side, on the financial side lots of people working hard to figure out ways around this tax.

>> of course tax that doesn't yet actually even exist robert, thank you. i know you'll have more tomorrow appreciate it. yeah so just getting quick check on the markets. major averages are all higher. the s&p 500 trading at a new high 4594 is the level there. we have more earnings after the bell in the meantime that will do it for "squawk on the street," "techcheck" starts now ♪ good tuesday morning welcome to "techcheck" i'm deirdre bosa with carl quintanilla and jon fortt. look, you're here with me at one market this morning. today facebook's new north star after mixed results will shift toward young adults be the right direction? we'll discuss. >> tesla heads to the moon