states are important, all 57 of them i know there are only 50 i know in new jersey and particularly in virginia, we will know r, according to frank luntz, in a matter of hours, not days, in the closely watched fwu gubernatorial race "squawk on the street" is next good tuesday morning welcome to "squawk on the street." we're at the new york stock exchange futures are mixed as we blend industrial and consumer earnings today. i got raised guidance. two-day fed meeting begins, of course, and some relief in commodities at the front end of the curve. investors are a bit caution as

elon musk of tesla says they have not signed yet. we're keeping an eye on the semi-conductor chain and pfizer's revenues and profits surge boosted by the vaccine guidance we start with this motion, jim, that from musk on twitter, they have not signed a contract with hertz, although, there are headlines that deliveries are actually beginning. >> i think there will be a lot of people saying, hey, wait a second why didn't we figure this out before we took it. the answer is the corporate government is rather odd david, you know that when you say something has happened and it hasn't and the stock goes up gigantically, there's typically i questions asked. it's questionable. >> questionable.

there were press releases put out. it's surprising nothing was signed by the way, we've sat here and said how much of it should be. >> right. >> the story is still the movie in tesla and the increased market value of this company over the last four weeks, which is well above now $300 billion. >> right. >> that's the story. musk was a part of it you don't know how much is based on that. my guess is they won't fulfill the contract and he makes the same point he's made a number of times. it's not a demand issue. it's a supply issue. >> so why are people selling it, which i think is a mistake because what's going to happen is retail -- >> 52% a month >> there's a couple of stocks. nvidia owned by my childhood trust. you have meta stocks

there was a really interesting interview with eric schmidt. there are stocks called retail stocks and the retail investor has decided it really doesn't matter i saw a tesla last night, white tesla -- looked very nice. they say, i saw a tesla, let's go buy tesla retail investors are being driven a lot by what we call esg. they think that i want to make a statement, i want to buy something that cleans the environment. so the retail investor's very oriented toward morals and ethics it's quite different than what we're used to. >> that's what jonas said a few weeks ago. there's influence where tesla is seen as akin the a full-stack sustainable etf. that was morgan stanley. >> look. the only difference would be if you did it with a plug power and say, look, we're green hydrogen.

tesla plugs into a system that's not necessarily all green. you know our system in our country is hardly green. when i was called hologram biden, the fight at the dinner was it's a farce to think the skies are green. it has to be solar of course, he's addressed that. >> he has. he's addressed a lot of things. >> he's addressed a lot of things. >> tesla is an incredible story. we talk a lot about that because of that. musk is probably the most consequential business figure on the planet right now. >> i'm not going to dispurt that most consequential person in business today. >> yeah. >> because of spacex if it was just tesla, maybe bezos still or zuckerberg what with he's doing. oh, man, that's scary. i mean he's also -- musk is also -- >> he's the driver. >> yeah. we talk about him a lot.

>> he deserves it. >> whatever. whether they're buying him at retail or there should have been -- honestly who cares. >> rivian is going to become public ford motor owns $1.2 billion >> that's going to lower the valuation. >> right. >> we're going to see a $16 billion valuation. i probably will go up. by the way, the enthusiasm created by tesla and is pushed ahead in part because of esg, the environmental being the first part of that, we watched it happened over these last few years. rivian in january was a $28 million private value. now it's coming into being public very soon it's 60. these private valuations have been incredibly important.

they're strat furyk in many ways there's some question as to how long they will continue. but they've been incredibly helpfulto public market inv investors, a la the investors we've been talking about you have the marks they've taken on the privates. by the way, so many of them do privates they're incredibly significant they're losing billions of dollars every year. >> people have lost it to other things besides tesla. >> you have to spend the money initially and we'll see if it becomes a huge player in the e.v. market for pickups and s suvs. >> we know ford has a full line of pickups farley has said we're going to own that david's right. what's happened is people want to be e.v. now, what's happened is say you call on a lightning round.

i'd say, listen, just go buy tesla. buy energy carl, i find there are people who literally are voting and buying with their dollars as if somehow if you buy shares in lucid, it's going to be good for lucid and the environment, but i never bought a stock because it was going to be good for the environment. now it's front and central they're all rating it. soon the s.e.c. is going to rate it it's not green wash. people want to buy when one says we're going to be highly rated, people don't care. people are less interested in eps and more interested in h

hydropower. >> that's why on every call you have everyone talking about cfg. >> carbon-neutral when >> ebay is talking about it. >> everybody does. nucor, largest steel company. >> because there's a lot of capital that's been tagged for deployment in these areas. >> if you google stock, there's an outfit, cdp, and it tells you what the grade is. they get an "a." paypal gets a "c" because they haven't entrusted the issues do you really think paypal is a major source of evolution

no no, i don't. >> they get a "c." >> i don't know. by the way, we cannot rely on many of these metrics. >> delta says they're the most. >> right we need a much more uniform approach where the s.e.c. gets involved they're judging on a daily basis, and you need to go. young investors are uniquely saying, at least when they call on my show and i see them, okay, how does it do with the environment? if you tell me it's okay, then is it good company whoever cared, david, this isn't new. >> it is. >> it had better work. it's a better world. >> okay. but we're all going to be living in mark zuckerberg's metaworld in the next ten years.

i don't think that's going to be better. >> don't be so critical. did you know there are great sales in the met a world they have the avatar, ralph lauren. >> i can't even remember. >> i like ralph lauren. >> ralph lauren had comps up, 23 you're saying in the future we'll look at metaverse comps, they sold more metaverse clothes? >> when we spoke, the answer is yes. >> i'll have topay for how i look in the metaverse, the same way i buy something online >> yes he thinks i'm being facetious. >> no, i don't. >> your avatar is going to put on clothes and you'll say, hey,

i look pretty good in that. >> you're going to have the same wife in the metaverse? >> scarlet johanssen wants me in metaverse. >> this is something she told you. >> i dreamed about it last night. we'll talk about r.l. and undergar more which also raises the guy, but downward guidance from industrials like cummins and dupont we'll keep our eye on the headlines. "squawk on the street's" back in a minute >> announcer: this cnb program is sponsored by baird. visit bairddifference.com. but this is worth. and that - that's actually worth more than you think.

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we need this bath. yes. yes you do. a kohler walk-in bath provides independence with peace of mind. call... to receive fifty percent off installation. and take advantage of our special offer no payments for eighteen months. they say the global chip shortage could be hitting apple harder than indicated. apple's cut back sharply on ipad production and produced 50% fewer ipads than planned over the last two months. nintendo's switch production down 206789. >> i wish that were the case i was speaking with secretary r rimando.

the semi-conductor is the principal player i'm very big and also agree with that i just think that the most important story about apple this morning was the story about how the service is still doing very, very well and that's cloud service. look, ithink that we hit -- th market looked at apple and decided that there is no perishable that's the term that tim cook used on the car, perishable being that you either bought them or you didn't i have a mac 13, and i -- a mac pro and apple. maybe they give something else for a present, but these are precious these two products are precious and they matter a great deal. >> the larger issue, again, is

that apple even apple has to manage that. we talk about the auto companies. you talk about the suppliers and whether they're going to face pressures. >> who can -- dupont, i know, is a very convoluted, very difficult breakdown, breakup, whatever you want to call it they move away from the cyclicals. they're able to raise price. a beyond go back to e.v. it's the reason why you buy a new car. i wish people were more focused on it because the company has been put together where it uniquely understands the auto system 75% of our jobs are affected

>> i think she used the world scary when you think about america's reliance on asian-made chips. take a listen. >> i thought i had a lot of pressure before coming in for the interview. you have to work with your allies there are ways we're looking into to boost production in certain areas and we are very focused on that, none of which is a substitute for passing the chips act as fast as possible and letting us get to work to really boost supply here in america. >> i'm kind of surprised. >> i can't be. in the end, i've got this commerce secretary saying we've got a year and a half. the bill's locked in congress.

there's nothing coming out of congress i find that worrisome. but i think the demand for everything, the demand is so up that that place is working 24/7. it doesn't matter. there are not that many foundries, and the places we do have are all high-performance chips, which is cloud. it doesn't really help the situation. biggest maker of full feature chips is globalfoundries it's an american company but owned by asian interests i do this globalfoundries is the man of the hour. ford needs them, ford being so much e.v it's overwhelming. the supply chain is overwhelming go listen to dupont. dupont is trying desperately to get it so that more chips -- anyone who's involved with chips, it just holds the whole

system the ports and the chips, david, are really what is frankly waylaying our whole economy. >> everything. american eagle outfitters had to buy a whole logistics system. >> they had to. >> they had a lot of cash. they spent $315 million to buy some company called quiet logistics. >> people want nothing to do with this whole logistic issue, which is why they come back and buy metaverse or alphabet. >> no supply there all the statements about demand. demand shock. >> it's so incredible. the company set down now the firehose is open and they spray everybody. >> you know when they open a bar at a wedding reception and everybody goes, it's kind of hard to get the bartender's

attention. >> yes, right there at the bar right there. >> waving a dollar bill. >> waving for a taxi. >> it is hard to get somebody's attention. i cut in line. i said my name is jim cramer from "mad money," i want a gin and tonic. they said get in the back. they knew nothing. >> we watch the fed and rates as well back in a moment an help you do that right now. high thryv! thryv? yep. i'm the all-in-one management software built for small business. high thryv! help me with scheduling? sure thing. up top. high thryv! payments? high thryv! promotions? high thryv! email marketing? almost there, hold on. wait for it. high thryv! manage my customer list? can do. will do. high thryv! post on social media? hash-tag high thryv my friend! get a free demo at thryv.com.

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let's get to "the mad dash" as we get ready for the opening

bell in half an hour from now. let's talk about a company we haven't been talking about we did back in the day when they were fighting with -- >> -- in tell. >> david simon said you should stop saying that by the way, forever 21 and brooks brothers, remember they bought a stake and are doing quite well retail sales have accelerated. they had that strategy of buying jcp jcpenney, making it so you didn't have a black hole at the end of the mall. i don't know this is an amazing pent up demand story people want to stop shopping people stopped shopping for a while and they're back malls are doing well. >> some malls. >> a mall. >> the same way we talk about

buildings in new york city a office biuildings, sure a b building, you're in trouble. >> outlets are high end. what i find incredible is the surge in shopping, i don't know how much of it is federal shopping or people had stopped shopping, but once again, there's -- in the high end, which would be ralph lauren that you'd find in simon property mall, there was a time people were worried about the mall. if you go out to the northwest and go to a mall, what do you find >> you find a lot of cars. >> they're paying 1.87ch for

8.2-year money. >> on the mall what does that show you? >> less than 2%. >> assuming someone goes there and says, listen, you're absolutely right, but should they be paying them? >> all right, we've got an opening bell for you by the way, in case you forgot, you can catch us any time anywhere because we have a podcast. >> we are the champions. >> announcer: on "closing bell," five ceos, five important takeaways. crucial insights for

pfizer's going to be a story this morning, shares up 3% premarket. 1 3/4 beats by a quarter they raised their hikes on the vaccine. 268, 265, moved the needle up a little bit. >> one of the things that happened here, carl, if you take a look at the long run, there were people very worried about the patent, would there be a bridge

i remember speaking to faizer who said, one day we'll get a booster. maybe we can have this every year and then dealing with a lot of doctors and then press critics who said a booster is something that pfizer's dreaming up. well, i think we all subscribe to pfizer's dream. >> listen. $13 billion of the covid vaccine in the quarter obviously carl mentioned the guidance. >> moderna could be it. >> yeah. >> me der na could be anything it wants, could clearly bump numbers. covid is a gift -- it's terrible -- but a gift that keeps giving to these companies i think when you go out and they check your card, you're going to want your third. they're going to say, where's your booster. >> booster's definitely a big part of the vaccination rate,

which has brought it up. by the way, the white house says there will be 15 million doses next week for kids between 5 and 11. >> the doctor is saying, look, there are some who believe there's myocarditis. there have been no incidences in ages 5 to 11 we continue to get people who say, you know what this is dangerous. and then the stats just don't prove it out as being dangerous at all >> i mean i think the meningitis is related to the mumps. >> let's get to the opening bell you have burford and arteris

amazon is not going to require their employees to wear a mask. >> we're becoming like portugal. we're getting there. we're getting there. i think a lot of it is going to accelerate when we get this december deadline for companies to take federal money. everybody takes it. >> a lot of them do. december 8 is the deadline. >> that's it. >> we've talked with a lot of the ceos, even those who don't have their own mandate for employees for southwest. but the december 8 f they want to keep that business with the government, they'll need do it. >> is it forced? there are some people going for the religious exemptions typically because fetus -- it's not born out, but people have objections based on religion that's really been the sticky point. >> right

but there are questionnaires from companies trying to understand the objections. it's working, getting a lot of people vaccinated. thankfully the priv lens is down across the country. >> hospitalizations down almost 60% now. >> but the great retirement continues. the retirements -- accelerated retirement i keep getting that from companies who are replaced people with technology now, gxo did not expect they were having to replace people. they weren't trying to throw people out of work they just can't find people to fill the warehouses. it's absolutely filled with robotics if you're going to do same day/next day, it's got to be in the city you can no longer put a warehouse in the middle of

nowhere and get next day or same day. i expect wall mat to keep action is. >> let's take a look at the stock. talking generally about stock. there's chegg. down almost 40%. missed earnings estimates by a lot. what's going on? here's app answer to the question this is a post-covid hangover of mental exhaustion, an opportunity to earn more money, a reassessing of their lives,

not unlike what you hear going on in the corporate workplace. it just all came together at one time we didn't see it happening and it happened. at the end of september, it didn't seem to material ice. they didn't see it coming. >> given the fact that tuition is going to be x amount of dollars, i question whether you should be in question. >> but a lot of this is community college. >> and at the low end, job f hunts. did you see 17% growing going to 5% growth. >> if i had my old penguins today, we'd be rolling them out.

>> how many classes did you take that whir class/fail >> i don't remember taking any. >> pass fail. >> it was hard for some. >> do you not have an existential issue here that perhaps this is the decline and fall of the western severalization >> because chegg missed earnings because people are taking pass feign. this is -- this is an attack on regular core i think you make it a little ju jumpier. i think you're going a little ways. >> you thenlt the combination of the met a fers

>> i'm saying your avatar maybe takes the classes and you skip them. >> you've been hot on it. >> yeah. >> eric schmidt was asked what if peopleprefer to live in the m meta world >> mark van driessen gave an interview this summer. reality is good. there are a lot of people for where reality is tough he said it's had five years to catch up i'm not waiting. >> you want to go into the people who are in the peanut gallery. there are a lot of people. the metaverse, i find as an

equalizer. are people going to buy stocks in the metaverse >> no. >> they're not showing up, not buying textbooks, digital orover o. you may not be getting more mod ice worth to worry about >> it's like 75. it's not even 100. then they have any sin kynchrons class you can take for free. >> there within -- are people

going to college, just not as millimeter -- e's temporary and coming back. >> zillo the housing issue, you've got streaming companies as people leave the house. remote work that affects cities. >> look. we don't have enough automobiles because people decided to move and the high -- how the power went the dwlij perfect people. i know some of our friends want to disagree chlgts they're not coming back, i keel debt enthem.

we said to everybody we want you back, 15% 20rks%. >> wednesday, thursday, going to be better. mon, grain >> there's an option now that ready fret s mechlt which ddays do wow work >> they covered nate we'll beat on the office >> some of them as the wrirest the people are not beg their we should have talked about zillo.

>> the-american thing is interests. the best thing in cloud, analytics, productivity. >> greater aguilt speed. >> my childhood trust has been very disappointing >> that's a small company. >> under arbor, that ee. i want to go back. a genius she has run the company very well, be 10ling. under armour really faltered they came up with it incorrectly. did you see apple up

>> i did. >> i see alphabet up a lot actually. >> there was a keynote on alphabet that said absolutely nothing. >> it might have sent enough to send alphabet shares i quote these things i say, why do i quote them. >> why do to it's gotten really lochlk well done i have a lot to say about ralph lauren. >> if you join the investment club, you can do that by flashing your phone. >> use the u.s. course then you get this list. >> i do it every morning i start at 22, 23.

i didn't get to start the show i say this every morning i say it and it's flip it's -- let's just say it's -- it's skeptical i've been looking for a word that means nothing, because, for instance here, one of the things i made the point is alphabet morgan stanley saying free can fliel. some of it is new information? come on. it's not a lot of inform information. it's reported. >> apple did file a k.a. >> she's fantastic advertising being number one that's a fantastic point david, how many times have you told me with amazon, you have to think about advertising. >> absolutely you do. >> i vowed infill.

if you hone the phoenix in temperature head. >> to i have the q.r. code >> yes, you have. >> i'm glade. >> how many days do you go up? >> it's more than double this year it's a great call. >> you need to see something happen it's good to see a stock not go up every single day on the same information. how's that >> all right we mentioned the morgan stanley call on ferrari yesterday and they did have pretty good numbers, i believe stock, wow, look at that it's going from 211 to 243 in lis less than a month. >> adam jonas is proving to be one of the stars in this period because he gets the zeitgeist. he talked about ferrari being

sold out for two years being v. and that got people talking it was down 4% why? because the guy was eight cents like people didn't even look. >> they announced a deal as well. >> they're out of the lower end going to the higher end. david, they're keeping tyvek and co corian dupont, when they came up with

nylon and dacron. >> right. >> i used to wear a lot of dak kron. >> did you you must have looked sharp in your dacron. >> there was a song about me, "light my fire." >> that's why it brings up memories for you, that jacket i wear i get it now it reminds you of yours. >> i always remember going into kohl's. >> there was a line around the corner and they rejected me for credit >> you couldn't buy your dacron slacks. >> i bought chance that ralph lauren has offloaded they had their own brarngsd which is exceptional.

>> this is really important. he has done this traditionally he's given you very low guidance and crushed it, which he did today. then people sell the stock he's a genius. he invented the selfie generation, by the way, and i think one of the things you're going to hear is he has a huge number of fans everyone is looking at a guide that have no idea how great an opportunity this company is. when i issue my bulletin about is d estee lauder you know, down 2.7% is ludicrous because this guy is crushing it,

but that's the way he plays it only 3.1% of it is in the macy's world. his reverse mentor program is genius they boss you around a >> what are they doing >> let's get to bob pisani. >> good morning. take a look at the sectors sort of a mixed open overall consumer discretionary flattish, finally taking a break semi-s are bouncing back health care and next the supply chain issue, you talk about dupont cutting with the ripple effect. we're hearing this right across the board today.

big industrials are now reporting and they're saying essentially the same thing i'm very interested in what mosaic had to say. this is a real window in what these global businesses are doing right now. of course, they make fertilizer. phosphates and potash. higher prices yaufl setting. earnings and representative nighing were on the low side some o requesting commitment this the second quarter. they're raising prices and the consumer is locking it then the company says there remains considerable upside. what they're saying is if they could unravel supply chain issue, i they could do a lot better look at eaton

supply restraints. limited organic growth again, limiting their ability. cummins, they make truck parts all over the world order trends their ability to deliver and the full year guidance was on the light side because of that you say the same themes showing up time and time again look at blooming brands. they own outback steakhouse and others we told you about 1% commodity cost inflation now it's going go 1 s it if you look at the numbered and earnings on the light side mosaic 8%.

you've got a lot of demand, very strong a lot of difficulty supplying the product, but margins are holding up very well bringing back people today, two days a week, tuesday and thursday, one more step toward a little bit of we did get some declines in yields, pretty much across the board. below 48 basis points. 10-year around 1.55. holding on to 46.20. we'll be right back.

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all-time high on the s&p tesla narrowing the pre-market losses and by the way, transports, first record high since may

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jim, what's on "mad"

tonight? >> we'll see if that stock doesn't continue to go up. and i'm urging people to go buy este lauder and you'll say what was i thinking >> everybody should do we'll see you tonight. >> ow. me "mad money" 6:00 p.m. easte rn ti at pnc bank, we believe in the power of taking steps forward. moving ahead. whatever the pace. and whatever the size. that's why we set out to help make it easier for everyone to move forward financially. with small business, personal banking, wealth, and corporate solutions that help you reach your goals and plan for the future...

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good tuesday morning live at post nine of the new york stock exchange. 4625 is an all-time high this morning on the s&p dow about 90 points away but we are trading above an all-time closing high >> we're 30 minutes to the trading session. we're going to started with pfizer, reporting better than expected profit and revenue. and strong demand on both covid vaccine and noncovid treatments. you can see shares up more than

1.5% right now and simon property with improved occupancy rates in the quarter plus, an increase in shopper traffic. we're going to end with chegg, which is charging lower, after they reported lower-than-expected quarterly sales. they say the education industry is seeing a slowdown, siting inc increased employment opportunities and fatigue all pressuring enrollment numbers. down almost 48% right now. >> those are numbers it hasn't seen since, i think, early 2020. and tesla has -- or the company has a more than $1.2 trillion market value yesterday. elon musk down played the deal with hertz that was one of many reasons that tesla stock was so strong

in the last couple of weeks. but let's go to more on that story. phil >> david, so many people wondering this morning does tesla have a deal where hertz is going to buy 100,000 model threes as you mentioned, david, tesla ceo, elon musk, down played the deal, at least whether or not there's a signed deal during a tweet -- or in a tweet last night when he was asked by somebody about the deal with hertz. and in his tweet, this is what started all the sell off earlier this morning if any of this is based -- and talking about the move in tesla share price. if any of this is based on hertz, i'd like to emphasize no cona tract has been signed tesla has far more demand than production therefore, we'll only sell cars to hertz at the same margin as consumers. immediately people started

thinking wait a second, is there no deal between tesla and hertz? hertz saying, through a spokesperson, deliveries of the teslas already have started. we are seeing very strong early demand for teslas in our market fleet, which reflects high market demand for tesla vehicles and look, they had a commercial or a video they put together with tom brady, where he was plugged in and they were talking about the importance of hertz going electric that's the reason shares have taken off over the last week and remember, the hertz deal is not the only reason the stock went from -- and i think it was trading in the early 900s. 930 and now it's up in the 1100 to 1200 range. hertz deal is not the only reason why shares of tesla have moved higher but one of several factors that serve as a catalyst.

this deal is for 100,000 model 3s that have already begin, according to hertz, and through the end of next year significant deal for hertz and for tesla, regardless of what the prices is going to be. and the tweet got a lot of attention and still is >> shares of avis budget group up 56% this morning. what is going on with fleets in general? >> they have such tight supply and it's not going to improve dramatically over the next year. will they get more vehicles in yes. but i was on a couple of trips within the last two weeks, carl. there's very few vehicles in these rental car lots. they're just not there i had a trip to denver where they said menobody has vehicles. so, you're seeing this and i don't think it's changing

anytime soon >> similar experience this summer $600 for a rental car. it's up 56%. thanks for capturing it all for us this morning. cnbc is out with a new survey, asking participants to gauge an up side or down side move in soks hi, steve. >> our new cnbc risk reward ratio tries to gauge the probability of a 10% move to the upside and the down side of the s&p over the next six months and launches at minus nine meaning more towards worry about a down side move 48% chance of down side correction and compared to a 39% chance, yielding an index of nine that general level of concern, it goes along with a view of 72% of our respondents, who believe

stocks are over valued in their outlook for earningses and outlook growth from the high 50% range, ilt's p for there. and the gains are in for the year and on average rising just 3% in the next year. that could be in part, because the fed is seeing both tapering beginning in november, beginning that taper in november, as well as moving up the outlook for ratehikes from december to september with a healthy contingent looking for a july rate hike. stocks will have to battle as well rising the 2.2%. early next year and into 2022. it's also unclear how -- and inflation seems the number one threat

5% by the end of this year the seventh time it's risen, which is also higher i feel like the economy can withstand higher rates i don't know how much the market levels right here are pinned at the fed staying at zero for a very long time >> we'll find out more in the next 24 to 36 hours. and the nasdaq hit some record highs this morning. and formerly wells fargo asset management hi, ann, good to see you >> good morning, carl. >> i wonder how you're balancing the risks and maybe valuations with the seasonality period and something that argus this is the best time to own stocks. >> that's exactly what our investment teams are paying attention to, is looking for opportunities in a market where it might be a little bit more

difficult, certainly the inflation fears have created challenges for the economy and certainly that will spill into the market at some point. again, bottom-up stock picking at this particulate of the cycle is going to be key for investors and that's what our teams are doing. >> what buckets does that lead you to is technology, for any reason, at risk because of competition from rates or is this huge cap ex cycle we're in argue you have to stay with it? >> i think it's dangerous to pick your favorite ones right now. i think it's more about selecting stocks across all sectors. you're starting to see more and more frequent sector rotation. i think that's likely to continue as all of the things in the market get challenged. if we see increases in growth, it's likely -- economic growth that's likely going to spill

over to being really good for the cyclicals. however, if we see a slowdown in the growth, that will be good for growth stocks, as investors look out for companies that can seek better growth in that space. it's hard to choose. i think you have to stay well diversified in this type of market >> it's morgan speaking of cyclicals. energy, just been on a tear this year the move we've seen in oil and gas prices i mean, we can talk about inflation and whether it's here to stay and impact rising rates can have on the higher commodity complex. but when you look at production numbers for oil and gas and cyclicals, how much of a wild card is this when we think about what that means for monetary policy as we look to earnings in 2022 >> i think that's a great question and energy has been key. for

it's the one area where it's been a lack of capitol thrown at that space there's been capitol constraint in energy. and less -- not less demand for energy, itself but less demand for the equities and energy. so, when you have oil prices take off, not surprising sootee the equities follow. it does make things more challenging for the consumer i live in the midwest. i hear about it from our friends all of the time. as soon as the heating bills kick in, they're going to feel more it's the shocks and rapid changes in energy prices that are difficult to figure out how to put in your budget. energy is the one thing we carefully watch to make sure it doesn't have an impact on consumer demand, which copts to be really strong >> finally, one of the more

constructive arguments about equities this week has been the idea that taxes, on corporates is not going up as dramatically as some have been modeling in the year i wonder if that's going to take the edge off any tax-related selling? >> i think it's too early to pro dict where we're going to end up with taxes that's one thing that's been difficult to price into the market we'll wait and see where corporate tax rates fall out if we get a big rise in corporate rates t will have an impact it could take mid single digits out of earnings for those stocks it's something we carefully watch but it's hard to predict right now where that's going to land >> we're still -- the story's changing by the minute as we keep our eye on d.c. thank you so much. good to see you. >> thank you

as we go to break, a roadmap for the rest of the hour, including how airlines are combatting staffing shortages. and a former tesla members who says there's a large correction coming to the overall auto market. and launching broadband satellites, taking on the likes of spacex and others we have a lot more "squawk on the street." straight ahead ♪ dream, dream that's the thing to do ♪ ♪ music ♪ when you see value in all directions, you add value in all directions. accenture. let there be change.

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welcome back to "squack on the street." with american airlines canceling more than 2,000 flights since last friday. they say it's cause for concern with the holidays approaching. joining us, strategist, elaine becker we keep hearing it, from the airline ceos, that it's going to be packed and busy and congested and busy holiday season with all the feeks expicted to get out and do traveling and tourists as well so, what are we looking at as we go into the final months of the year and what it means for the bottom line for these major airline companies?

>> yes, it's going to be a tough holiday season they're tire ofds being home and looking forward to seeing friends and family they might not have seen last year. it's issues that not only staffing but weather issues. that's typically what happens. you don't have enough staff. i think the mistake they made when they asked people last year to take voluntary leaves, that they thought everybody would be waiting at home for the phone call to go back to work and they went out and got other jobs. you have a training issue and you have to bring people back. it takes a while you have people flying reserve that might not be available when you call them. it's going to be messy, to say the least. usually we get at least one snow

storm between christmas and new years. people are going to have to be patient. >> yeah. so, who's navigating it well who's well positioned? i realize united comes to mind, that there have been heavy investments in tech along the way too. >> i think that's a good point the airmens were investing heavily in technology ahead of the pandemic, especially in digital and communications to your point, we think united is doing the best job and delta is too and the reason is, in part, because both have fewer flights than american, southwest, and spirit had so, it winds up being you have more control over your obviously whr you have fewer flights than when you have more and for united, they didn't furlough people as much as they reduced hours. they said to their employees, we

want to keep you on board. we're going to reduce your hours. and when things recover, we'll start increasing the hours and that way they never lost momentum i think of all the companies that i cover, they've done the best job of -- from start to finish, if you will. just planning for t heading into it, going through it and now coming out of it >> and of course, the other piece of the broader puzzle in air right now -- i mean we just talked about the people piece. but there's the package piece. ups and fedex. i know they're both doing their own things to navigate but fedex, for example, we saw labor shortages hit earnings in the most recent quarter too. so, how does that fit into the puzzle >> that's a great question fedex is hiring 90,000 people, like, right now. and ups hiring 100,000

amazon hiring 150,000. target hiring 100,000. walmart hiring 20,000 and all the people the airlines are hiring i'm not 100% certain where all these people are coming from that everybody wants to hire for the peek but yeah, i think the other part, and you have been doing a great job reporting. send your packages early, order early. if you see something, buy it now. i think retail is obviously going to have a good season for the same reason and it's going to be elon longated. if you wait to the last instant, you might be disappointed. christmas comes december 25th every year that's seven weeks away? people can really plan i have seven weeks to get my stuff in house. and i'm going to use everyone of those days to plan properly, rather than say okay, i'm going to waited until december 24th

and hope for the best. >> thanks for joining us today >> thanks, morgan. >> for more on some of the challenges the airlines are facing, we're joined by sun country. his company reporting results in line with expectations i do wonder if you think we're headed for some kind of holiday capacity crunch. >> absolutely. the airline said won't be able to add capacity required for the demand and that's going to result in higher air fare for everybody traveling. and there is going to be conservatism >> where do you think the breaking point is for fares at this point what is the consumer willing to pay? >> it depends on the time of day and why they're traveling.

we're seeing holiday fares to above prepandemic levels in contrast, if you want to travel midweek, particularly domestically, i think you can get a pretty good deal because there's not a lot of business demand business demand has a long way to go to get back to the prepandemic levels but thanksgiving is going to be a tight market out there >> i know southwest and american have addressed the labor shortage air canada this morning, said they haven't seen it to this degree are you somewhere in the middle? >> yeah, i think canada's not nearly as tight a market as we're seeing here. we've hired 700 employees today, which is a 50% increase over where we were at the bottom of the pandemic and we're hitting our targets. we're seeing a little more turnover, particularly at the ramp so, people who work at the

airport. i think it's in the positive we're having to be better employers. and we're rolling out technology and we're increasing pay i think that's what you're going to see across the economy, really, as we compete for the same person. everybody's out there hiring to pick up for the winter period. sgli >> it's morgan one of your other businesses is private charters we've heard, in the midstet of earnings, that demand has been pretty boyant. does that continue to travel into next year, even as the pandemic woes begin to subside and more people feel comfortable getting on planes for business travel >> we have a travel bds. our cargo business has been strong throughout the pandemic and the fourth quarter we'll do more cargo flying than we've ever done.

the charter business, as you pointed out, is coming back. we do a big program for major league soccer and nca programs all over the country and they're coming back really strongly we still have casino charters that haven't fully recovered everything is flashing green for us >> how about fuel? what's it like trying to hedge into this market right now >> we don't hedge. we would say that we have a veryiable capacity the perfect airline can fly a lot or a little at the same unit cost it's impossible but we're getting close here fuel goes down, we add them back and that's the most efficient edge an airline can do, in my opinion. >> jude, talk about a fascinating period for what's always a crazy business.

great to talk to you thanks so much >> thanks for your time, guys. >> sun country >> take care >> and zillow shrinking as they plan to sell seven of their homes, a week after they said they would stop making new offers to buy homes. is everyon. throwing things at me? look, as cfo it's my job to be ready for whatever's next. that's why i have my finance team, randomly hurl things at me. it's also why we use workday. it gives us insights, so we quickly pivot our strategy, people, planning, you name it. sorry, sir. i will aim straight at your next step. see that you do. would you like some coffee? workday. the finance, hr, and planning system for a changing world. ♪ your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do.

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time now for our etf spotlight. and the xtn. as you see up almost 30%, actually 33% year to date, due largely to what the top holding is avis budget, it keeps getting halted and still up more than 700% for the year. and a beat on earnings results were boosted by heavy demand for rental cars. and don't forget there were a number of people, given the run that it already had taken place.

not to mention, as well, you had some who were short this and long hertz as a trade so, there is a lot of covering going on as well an incredible move and increase in market value in one day ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪

good morning everybody here's your cnbc update at this hour at the global climate summit in scotland president biden is proposing new regulations, targeting methane leaks. while it dissipates more quickly than carbon dioxide, the effect on climate change is 80 times more powerful after it gets in the atmosphere it is election day at home and polls show closely watched race

for governor is indeed very tight. former democratic cover is running against republican, glen young kz din being seen, in part, as a proxy battle between president biden and former president trump and jesse jackson is in the hospital after falling meeting with howard protesters the former presidential candidate hit his head in the fall but a t scan shows no internal injury. you are up to date that's the news update tesla shares and the company has not signed a contract. joining us now is the wesley group founder and former group members. you've been a member of the company for a long time.

i wonder do you find this latest move in another 300 billion or so in market value added over the last few weeks stunning? >> i do. look, the stock's up 50% just in the month of october alone so, that's stunning. you have to ask yourself is this stock nose bleed high? it is. but don't forget the fundamentals tesla's a company growing from 32 billion in revenue, 51 billion this year. that's 50% year over year growth no one in the auto industry is doing anything close to that second, tesla is the clear leader in evs. a clear advantage in battery production cost. now they're about to open up new plants in germany and austin further reducing costs tesla's sitting in the seat and we'll see how long they can stay on top

>> everything you mentioned, many might say, has already been accounted for in the $1.2 trillion market value we hear about new all the time lucid's out there now delivering and others of course with the names ford and gm and on is it going to create more competition that could potentially hurt this company? >> i think it is going to create competition for tesla. and for the next six months, tesla's going to do well the others, simply put, got started too late here are the things to remember. tesla has real advantages in three areas people often don't talk about they're the first to bring battery production in cost and the leader in the new 4680 form factor second, they are the leader in building connected cars.

for some reason, it took eight years before the other auto makers began to make all the other cars connected they're selling over the air software features. this is why the average gross margin is in the 20s, while most are in the high teens. but as you step back a bit, here's what i think is going to happen a lot of auto makers may have started to late. i think ford's going to have difficulties and gm started too late the world's company is in a big deal the ones interesting are volkswagen, and he's getting near cost parity batteries with tesla and the chinese. people forget china is the biggest auto market in the world. the first time, you'll see chinese auto brands on the streets in america and everybody 's waiting for the big smackdown in trucks.

>> it's getting interesting quick. it's morgan. it seems to me part of the reason we saw such an incredible move on the hertz news with tesla is, because to your point, the connectivity, data, technology involved, and the fact it was a deal struck with uber as well speaks to the future of mobility and this idea of robo taxis and everything all the technology, built by companies, like tesla, is going to enable. are we going to see more of these types of partnerships and deals? and if so, how close is the reality of those type of fleets? >> look, here's the big picture. the whole world is finally realizing auto industry is going all electric it's already total sales of electric we'll be catching up americans are waking up. tesla's the brand people want. the rest of the world will make better cars. they will eventually provide the

con connectivity in the over-the-air services and there too, tesla epeers to have the lead. we're going to have to see how long they can hold it. expect a lot of pressure as everybody comes in the market. the other thing people should look at is i expect a great shakeout in the auto industry. because precisely when all these new brands are coming into the market, like lucid and apple in the nearby future, the next generation appears to be increasingly happy with ride hailing and as that becomes autonomous and less expensive, you may see too many car comp in as on the market we'll see. >> the other piece of the puzzle, you just mentioned it is china and obviously the ev capabilities are what's in focus for some of the start ups right now.

as we talk more, does that become, especially when you're talking about dynamics between u.s. and china a national security issues giveline the data and security elements attached with the technology >> first, americans tend to forget, china, not u.s., is the larjest auto maker in the u.s. it's going to have the large cost advantage in the company and they'll likely put their fing oren the scales tesla's done well producing vehicles to date we'll have if the chinese government allows that and 60% of the world's semiconductors come from taiwan. we're already seeing global supply chain shortages second, it's just hard, traditionally, for americans to compete in china and now that china can compete in europe and the u.s., things are going to get interestingly

quickly. i've been their biggest champgen and you have to acknowledge, people like volkswagen, started moving to evs years ago. and the lowest cost battery for byd. this is it going it get tough for tesla. they're going to have to be on their best game. good news is elon is smart when their stock was nose bleed high, they raised their balance sheets this is going to be a fascinating battle >> it will be and they have seemingly limitless access to capitol and that could change. finally, you mentioned apple what are your expectations for an apple car, steve? >> here's what investors should remember, cars are about internal combustion engines and brakes and tires and all that stuff we love.

going forward, cars will be computers on wheels. as you mentioned earlier, they'll increasingly be sold in fleets, not so much individuals. so, apple is a natural they understand beautiful products and seamless integration with phones and the other parts of your life so, apple has been in production work for close to a decade i believe within two to three years, they'll put a car on the market it goes to show, a lot of new intrnts, the old brands are going to have to up their game to compete with the likes of tesla and apple. these are two of the world's now six largest companies. the ability to invest in r&d and win the race for autonomous and i'm hoping for america to come out on top i think we're going to have strong intrnts >> appreciate it thank you. >> you bet thanks for having me

turning back to pfizer, getting a boost after beating on earnings cdc meeting to discuss the company's covid vaccine for children more on both of those. meg. >> hey, coming in at $13 billion in revenue and more than a billion ahead of what analysts are looking for. and now predicting $36 billion in sales up from 2.3 billion doses, for which they plan contracts to deliver. next year, they're projecting they can make 4 billion doses. and signed contracts for 1.7 billion. they're in discussions for more. that results in 29 billion expected revenue for next year this really exceeding those estimates. the call is going on now pfizer giving updates on multiple programs, including

when it expelks results for the younger children, over the age of five. and now kids two to less than five and for babies six months to toddlers less than two so, parents of younger children, this is the latest update for that kids 5 to 11 have a big day today, while the cdc's outside advisors meet to discuss the vaccine for that age group we're expecting a group around 4:15 if positive, the cdc director would have to sign up. that's the last step before kids could get these vaccines as soon as tomorrow morning. >> a lot to watch. and i have to say good to be a government contractor, whether it's pfizer. you talked about the gangbuster covid vaccine numbers and

company who has helped deliver the vaccines over the past year now. in terms of deals with the government in the u.s., as more people get shots, boosters, how much would we expect that type of tail wind to continue into 2022 and beyond? >> that is the key question for all of these covid vaccine stocks right now what is the booster market going to look like in the united states does this turn into a flu shot type of market, where we have to update the vaccine it's not clear but throughout at least 2022, getting the visibility from pfizer, seeing a lot more folks across the world who need their first doses, there's a lot more people who need the vaccine beyond that, we'll have to see how it goes. >> a lot of moving pieces. thank you. as we go to break, watch und underarmour shares up.

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welcome back amazon will launch the first two satellites late next year. and deploy and operate two prototypes to test the tech in the final design of the low orbit satellite constilation, that will include more than 3,200 satellites this is a $10 billion long-term investment for amazon too, provide high-speed internet access around the world. and nearly 2,000 satellites

already on orbit and names like one web, taran orbital, which will soon be publicly traded. if regulators give the green light as well. and noteworthy, the company chosen to launch these two prototypes and rocket maker, abl space. they have yet to send a rock toot orbit but closed another funding roubd round with a $2.4 billion valuation it's looking to send the first rock toot orbit potentially before the end of this year. and amazon has a deal with a joint venture between boeing and lockheed you can say space is definitely, especially low-earth orbit is getting quickly. and it's a reason they've ris --

elicited the ire and claim it's gotten in the way of actual star-based constilation with their telescopes >> don't need a lot of broadband for the mettaverse >> and as you see the 5g rollout, it's a reason they're reaching out for the hard-to-reach spots because they're granted on the condition that. >> built it out. >> yeah, and you'll have connectivity everywhere. >> nike with a trademark package for selling goods in the mettaverse virt wale >> virtual sneakers. >> that's where we're going. speaking of amazon, on tech check, we're doing a deep dive, on rivian.

seeking the rpo next week. dow's recovered from early morning losses up 60.

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welcome back to "squawk on the street." stocks are higher today with most s&p 500 sectors, as you can see behind me here, in positive territory. we're at section highs we want to take a look at the action in the technology sector, specifically the second-best performer right new. so far today you are seeing within that group some of the financial technology fintech and payment infrastructure stocks lagging today. we're talking names like fidelity national. global payments by the way is down almost 10% despite a beat on earnings and revenues though the company's full-year revenue outlook came in shy of some analysts expectations watch fins there tecanwah d tch payments technology. "squawk on the street" will be right back don't go away.

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the last three months have delivered a lot of regulatory clarity for bitcoin. you see support in kochk and senate and very progressive administration and most of the fear is around the china crackdown are past us now.

with the bitcoin mining industry, relocating to the u.s., i think it's very bullish outlook for the next 12 months i don't think things could have gone better in the past quarter. >> that was -- >> oh, that intro gets me every time micro strategy ceo michael saylor yesterday talking crypto regulation and perhaps some of the worst fears have not come to fruition we get this as the president's working group on financial markets released report on stable coins yesterday as well that's been hotly anticipated. regulators finding that asset class could support faster, more efficient and inclusive forms of payment, but still calling on congress to limit issuance to ensure banks listed as a market participate in the report is cumberland, whose global head joins us now chris, great to have you on. i do want to get your thoughts on this report on stable coins and whether the fact that we do

have some guidelines from regulators now about where this could potentially go is going to add some lift or some certainty to an emerging asset class >> yeah. you know, i think the stable report represents a great step for the industry we're absolutely thrilled to be asked to participate and i think it represents an optimal way to approach regulation and guidance here the regulator asked for feedback from the industry. they formed their opinions and provided clear and transparent thought processes and guidance my take away from the whole thing is that the president working group is not working to stifle innovation or prevent the adoption but rather trying to potentially plug any regulatory gaps to add additional regulatory oversight as well as participation protection in order to, i think, allow for more rapid adoption over the course of time >> yeah. so how -- what does this mean for a company like couple cumbe.

silver gate, fed regulated crypto bank surged on the stable coin report and this idea that there's an urging of congress to regulate issuers of stable coins like banks you're a regulated entity working with institutional investors. the fact that we're starting to see more clarity around where regulations in this country could go, what does it mean for you? >> you know, i think it gives us a better road map on how we could interact with our counterparties at scale. largely who we're trading with, the entities that look for regulatory guidance and assureties that if they were to enter the crypto space that they were following the rules and that the regulators would approve of their activity. so any time we see something like the president working group report or see clarity from the s.e.c., we see increased interest in the asset class. we see our participants coming in to look for ways to deploy capital, look for insights on

how to create businesses and as a result, that puts us in a position where we're able to, i think, grow our business along with the growth of the market overall. >> yeah. in terms of the growth of the market overall, i mean, michael saylor making comments about bitcoin. we saw senator loomis on cnbc saying that bitcoin is here to stay a lot of others potentially aren't that's the standard. we saw ether the other big name in the market right now at record highs again today so what does that potential shakeout or consolidation look like when you look across all these different coins, especially when there are things like meme coins surging on a daily basis? >> yeah. that's a great question. and it's one we ask ourselves on a daily basis. but i think is important to do as you move into the crypto space is to understand the actual use cases and the purpose of the asset bitcoin represents a great store

value. ether, dot and other lair one protocols that represent the ability to disintermediate represents another idea. and i think when you -- >> okay. >> look to find opportunities you should look for those opportunities that change the way we do business in the world. >> okay. >> and move us forward >> sounds good got to cut it off there. it's the end of the show thank for joining us that will do it for "squawk on the street." "techcheck" starts now ♪ good tuesday morning and welcome to "techcheck. i'm deirdre bosa with julia boorstin and carl quintanilla. why shares of tesla cratered earlier and why it's coming back this morning. then