armies and sleevies. wednesday, november 3, 2021. "squawk box" begins right now >> it has within a hat trick for the market three days this week three days you've seen record closes friday, monday and tuesday watching all three of the major averages let's take a quick look.

talking a couple of points away. the dow transports were 1% all five of those major averages closing at record levels yesterday. continuing to keep an eye on this this morning. a 10-year note yielding 1.35%. andrew >> we do have some results not all but some let's give you an update where things stand glenn youngkin projected now to win defeating former governor terry mcauliffe. youngkin is a political newcomer who made a fortune at his tenure at carlise group seen as a forerunner ahead of next year's midterm elections. frank luntz was right about the results and how quickly we'd

hear it. there will be a lot of folks who will look at glenn youngkin in terms of what this means for the country but how he won how he appealed to both what might be described as trump republicans and more center right republicans. he did it in a unique way. the question is whether that will become a model perhaps for larger politics. >> certainly runs blue there, it's a bluish purple state >> attorney general or lieutenant governor and attorney general. it is a clean sweep. pointed out that youngkin. it is easy to be happy when for the last 10 days, it is clear the momentum shifted his way and

conversely, you could see mcauliffe get defensive. it seemed unhappy from the other side i like his vest. i don't have a red one surprising -- you are going to talk about that now. >> you can talk about it it is your state you guys can talk about it the surprise in new jersey is the incumbent democratic governor phil murphy finding himself virtually tied with republican runner. too close to call right now. democrats have long been pretty confident about.

it has huge implications the votes left to be counted there's a lot. i live in essex county i'm not sure of ciattarelli's prospects. i think bergen county went more. the votes there would be early but this is down to the wire i think it will be a while >> 2,000 votes i voted yesterday. they had little stickers i voted. i put four of them on just to mess with people >> my son got two. he voted with me and then with matt >> i said, early and often, baby making my voice heard. didn't ask me for anything

they asked me where i lived. they didn't say where do you live they say, do you live at >> they asked me to confirm where do you live? give us your address >> i live in such a small town, it is my neighbors running this. >> they probably knew me >> got wore out. >> all the selfies >> meantime -- >> we have eric coming on, right? the mayor. >> meanwhile in new york, the mayoral race, i think we knew this outcome but it is now official eric adams to beat the gop candidate. he had made headlines because he spared with workers about whether he could bring one of his cats into the election site.

his ballot jammed in the machine. i don't know if we'll talk about that later the mayor will be with us about 7:45 a.m. eastern time >> when you think about just politics across the country. you think things are moving more towards or away from certain things interestingly, we can talk about progressives on the left i think youngkin is sort of a middle ground guy and i would argue eric adams is a middle ground guy for his party

>> eric cares about the business community. he wants businesses to succeed no question. >> some of them aren't billionaires the voting system, it was different where you live it was paper it seemed like a shredder. i asked them, are you sure it was physical paper. i had to use a magic marker. it was read immediately. a little confusing

my daughter asked me do you have plans for voting day >> it is good to see young people active. >> cdc formally endorsed the pfizer vaccine for children 5 to 11 last night. shots will be given immediately. a third of the dose given to teens and adults my moderna was half, so becky. >> i've been trying to find out. you can't do it immediately. i've been trying for a while who is going to give it first.

our pediatrician ywill do it but they don't know when they'll get it the apothicary will do it but same thing my guess is that cvs and those places will be the first to get it >> people told me yesterday, i could get a shingles shot at the same time. >> i've heard the shingles shot has a bit of reaction. you might want to staggering it out little bit >> you can go blind from shingers, which makes me think, you know what, not worth it. i might call but then blind there's a lot of other things you can die. that would seem to be a good

incentive. i don't know the whole world is nuts. that's what i've indicted. it sounds like the crazy uncle >> i would agree with you. what we've seen and the way people have been torn apart and divided. >> i don't want to go there. i ideaal logically, there has been some crazy things. you think we are going normal. seattle, things albonkers. >> dallas. qanon people are waiting for j.f.k. to show up at the grassy

knoll. >> what? >> there's been weird. some bizarre stuff out there let's talk some stocks to watch. zillow is exiting the home flipping business. that news comes two weeks after the company said it was halting home purchases zillow failed to predict the home price a appreciation marking an end to a part of the business they felt would make $20 million on the year. if you remember when this first came out the guy who started zillow was adamant this was going to be a huge place they could compete but it turns out it is not easy to do. >> i think it is almost impossible to do this goes to big data and ai and how sometimes big data becomes

small data quickly i think it raises questions about places like opendoor you are not really doing it with humans you are not asking a real estate agent, is this house worth more than that house. the algorithm is only as good. >> score one for the realtors. you are right. >> there you go. realtors nucular. came cramer was reeling about that.

bed bath and beyond soars. yesterday, the company made several announcements including the launch of a digital marketplace that will sell goods from third parties and a tie up with grocery store chain kroger. the buy back of stock is ahead of schedule. likely fuelled by a short squeeze among the most heavily shorted stocks 27% of available shares were shorted. big jump of mentions on reddit after the bell would be cool if our favorite place became a meme stock. >> i mean it was then it wasn't. i don't know anymore >> it is all over reddit i like the duvets. a heavy duvet so i feel safe at

night. >> with a steep drop warning of some supply chain disruptions. up nine. well below best levels coming up, we'll talk about another stock that is a huge jump avis shares more than doubled. more on that at 6:30 the fed getting ready to set its path for the post pandemic economy. we'll get you ready for today's big decision that's next. you are watcng "uaoxhisqwk b" live from the nasdaq market site in time square

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the fed is expected toout line its plan for the post pandemic economy steve liesman with a look at what to expect i hope you mean what they should be doing in the post pandemic economy because i certainly don't ascribe the total post pandemic economy to what the fed does, do i it is not up to them it is up to the economy

you take a market and price it to perfection. let's look at what happens today. it is going to face a question it is the dramatic shift in futures markets. the fed survey thinks things will be announced today and set at a pace of $15 million a month. the fed fund probability you can see june about a coin toss it wasn't anywhere about at

play then up to 2% at a rate hike september eased off a little bit with 40% probability there that second hike had not been priced in until recently stocks so far, the outlook interesting. one to two rate hikes on a slow taper. the danger course is whether powell sends up suggesting a greater look at inflation. a chief economist there writes in, the question to ask is whether the inflation comes back down in the target without inflation. i characterize the recent increase i'm going to watch if the fed

statement still shows inflation and if powell needs to put a time table around whether inflation needs to recede before the fed. >> okay, steve thanks you'll have a long day, probably you like this though >> it's what pays the bills. it is a fun day. an interesting day that's the other thing i'm not sure how they'll handle this he's been out there big time transitory the markets have changed does he affirmed market or push back on the market interesting question of how he handles today. >> talking about the market.

senior portfolio manager valerie. i think you feel maybe the supply chain problems. do they persist a little longer than we think right now or will we look back and say, hey, that's over? >> hi, so in terms of what is working in the markets, i would say stock selection is actually working. so even though sector selection and factor exposure still matter i think it is really a great market for stock picking right now. >> right in some of your notes you are talking about, what is front and center are the supply chain disruptions. you do see the market react, you've had three straight days of new highs that is because we are dealing with new supply chain. or we still have a fed that is

fairly accommodated. part of our life and economy what we've been hearing throughout earnings season, this is consistent across the board company executives are very much worried about supply chain bottlenecks. the data i mentioned in my notes was really from a mckenzie survey that showed supply chain concerns has actually exceeded covid-19 as the number one concern of executives particularly in north america. we still have a backlog of inventory at our major ports the trucking and rail systems. we don't expect this to resolve in short order i think there is some concern about the fourth quarter and even beyond. >> we used to tie a lot of supply issues with covid

maybe it is sort of decoupling at this point. now it seems like a lot of other factors, truck drivers trying to find workers a lot of things at the ports that have nothing to do with covid. that means when covid hopefully is in the rearview mirror, we may still be stuck with some of these issues >> i thinks that why it will take long tore unwind. i agree, some of the supply chain issues relate to covid at the source but the problem is you have a domino effect and it is exacerbated we were talking about deere. that's an example of the labor market we are seeing it across all sectors of the economy interest trucking to retail and all sorts of other companies as well >> the economy would run hot if it could we've got really low interest

rates. if they go up a little, that doesn't necessarily derail a solid performance. doesn't mean we are ready to give back 10%, 15% >> i don't think it derails the economy by in means. we see a deceleration. we may see some pressure on earnings i think overall, the consumer is very in good shape at the high end. people will enjoy that asset inflation. at the low end, people are benefitting from a very strong labor market right now we have healthy levels of demand that challenge is aggregate supply being looing at the long term and whether this storm and choppiness disruption is looking at a favorable outlook for 2022.

>> thank you valerie we'll see you. >> thank you >> happy wednesday it is wednesday. wednesday already. coming up when we return, we have an update on the worker strike at deere. now no end in sight all over again. we have details next and the ceo of alberts planning to go public today above the peedexct range more on all birds. more as "squawk box" rolls on this morning it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. only comcast business' secure network solutions give you the power of sd-wan and advanced security integrated on our activecore platform

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welcome back to "squawk box" for the second time now in less than a month deere workers have

rejected a proposal suggested by their union. the strike will continue while they continue talks over the next steps the new proposal had included a pay hike of about 10% and 5% of the third and fifth years giving traditional pension benefits to future employees and included a post retirement health care fund deere saying it is disappointed by the rejection and the path forward is limited >> that tells you the strength of the worker right now or at least the strength they are

feeling. saying wages are sticking. when you increase wages, that's not an element that may be the down side on the corporate side for the customer. we are seeing hopefully better wages from employees across the country. we'll see how that impacts >> that will be what we will be listening for from jay powell today. >> the new normal. >> when we come back, a big lineup ahead including the ceo of all birds and the projected new york city mayoral winner eric adams. all coming up. let's look at yesterday's

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good morning showing you the futures. the dow would open down about 37 nasdaq up about 16 and s&p 500 off about three points shares of rental car company avis more than doubled yesterday. take a look at what happened here leslie picker is here to help understand and explain what seemed like a crazy move >> that's a big task aside from game stop and amc, few stocks really reached that meme star document enter avis that stock more than doubling on better than expected on hints it could add electric vehicles to its fleet. leading to severe pain for those

who were betting their shares would fall with 21% of the float yesterday. the sharp move caused mark-to-market short seller losses of year $3 million yesterday alone. cheering the move. avis avis budget was actively gained. one hedge fund in particular srs investment made a whoping $5.5 billion on paper thanks to ownership of about 30 million shares of avis a position they've held for about a decade not something you see everyday >> are we convinced this is going to hold. is this the next one or not really >> i don't think so. it is already down in pre-market today. i was looking at the reddit chat

boards it doesn't appear to have the same excitement. with the hold, diamond hand, you didn't see as much of that around avis budget it was heavily shorted going into the move. people heard about the electric vehicles and they heard about hertz. it's not so clear that this is going to be the next meme stock. these are different times. you never know what is going to happen >> we are waiting for bed bath and beyond to become a meme stock again. it sort of was then it wasn't. then it was again. >> and it is heavily shorted still, so it is possible >> its moment could still come short squeeze. gamma squeeze. joe, what do you think >> i can't really come up with

like, the gamestop you can make a really exciting story of what they could do. what would it be for bed bath and beyond i got it they can start selling beds. what a concept the ceo of sieker security firm akamai joins us next and our interview with lyft cofounder john zimmer. that company beat on earnings. you can watch or listen to us live any time on the cnbc app.

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welcome back cyber security firm akamai posting stronger growth. revenue 9% higher. announcing $1.8 billion share buy back program joining us now is john lleyton, akamai ceo >> nice to be with you >> let's talk revenue.

revenue in the united states was up about 3%. internationally, it was up 16% even after adjusted foreign currency, it was up. why do you think stronger in terms of growth? >> we are seeing very strong results outside of north america particularly in asia pacific and japan. there is a lot of major industry and companies there. strong potential and future growth in terms of how foolproof this stuff is the attacks come so fast, there were a couple of big outages that affected websites like delta, costco, american express and home depot what happened and how do you protect. what is the rate of things you can stop versus what you can't >> we did have a couple of service incidents in the summer.

they weren't cyber attacks they were changes made in the system that had unintended consequences they affected about 2% of the traffic. we carry a lot of the major websites even 2%, you notice. any time any customer is impacted, that's not good. we put a ton of effort into services and really have an excellent reputation there on the cyber defense side, again, very strong capability. in fact, the service attacks and account takeover attacks >> you see attacks coming so

fast and so frequent >> i think sometimes we are under appreciated. we have a security business widely recognized as the market leader store stopping denienl of service attacks. stopg the bot armies out there securities up $1.3 billion year-over-year that generates a lot of cash we can use to make investments. most recently with the acquisition which we believe is the market leader in stopping ra ransomware i think it changes over time ass it clearer what we are doing and the accomplishments and the

importance of akamai's business. >> let's talk about the israeli-based company. what is the latest and greatest in terms of ransomware >> the key is stopping the spread of mallware once it gets inside the enterprise. you want to do everything you can to keep it from getting in today, just the slightest opening or gap and malware is in the key is to not let it spread inside once it gets in that's what gaurdacre does if you go into an office, you may have a key to the front door but you don't have a key to

every desk that's what has to happen. you have to monitor communications between each to make sure malware is not spreading. that's what they do. it is known as microsegmentation. >> how difficult is it to lock all those front doors with a large portion of the work force working from home and how willing are companies to spend the money to offer that protection >> the beauty is that they make it a lot simpler to do it is feasible to deploy this kind of solution the world waking up to the danger of ransomware there is a new attack every few seconds. the cost is enormous there is an increased interest given that we can do it fairly easily, you'll see a widespread adoption even since we closed the

acquisition, we closed several major enterprises with the solution >> thank you for your time today. good to see you. >> thank you >> tom lleyton is the ceo of akamai when we come back, the american whisky industry facing head winds the end of three years of tariffs from the eu. the esenpridt of micters distillery will join us next

welcome back, everybody. american distillers are celebrating this week after the united states and the european union reached a deal to drop tariffs on american whiskey. it comes, of course, as

commodities are rising joining us right now is the president of victor's distillery and its parent company chatham imports. thanks for being here. i know it has been a rough ride. but the news the tariffs from the eu are finally going to end, what does that mean for you? >> thank you so much for having me on today. the eu tariffs i think is a wonderful thing for the american whiskey industry it's really had a big impact for example, in the seven years before the tariffs went into effect, couple bourbon and kentucky whiskey grew at a rate of 78%, which is pretty amazing on transports. however, the tariffs really but the brakes on sales, kentucky bourbon sales in 2020 at 35%

the tariffs had a big effect they not only had a big effect on sales mar jens but on margin because a lot of distirls, you know, european counterparts and operations to try to cut margin a bit and try to maintain pricing as it goes up. it was a big increase, it's 25% tariffs. in fact it was set to go to 50% in september unfortunately, it's been settled in the eu. pretty much everyone in the industry, pretty much everybody has anticipated that britain, the uk will drop tariffs as well so that is a really good news for the industry >> so that's good news, it means you can start ramping up exports again, with the supply chain at a mess at this point, are you able to do that? where do things stand in terms of how limited you are and what

you can and can't ship in. >> that's a wonderful question we're in a little bit of a different position at victors because when we saw what was happening in asia, in the liquor industry in january 2020, we took our glass supplies and our components labels, glass cases and we went from a four-to-six month inventory to immediately to a one-year inventory, which that has helped us tremendously. so we haven't had outages because of that. but glass shortages, can shortages in the case of random drink stuff which has been hot in our industry during covid have really led to a lot of stuff on shelves, as well as shipping delays. the time to ship from zhang hoo i to chicago was about twice as long as it used to be. and so a lot of the industries

have delays. with victors, we bucked the trend. our sales are actually up 63%. but that's highly unusual. >> what about labor issues ed that hud agd >> that's hit about every industry what about keeping those workers happy? >> that's great for their work force that they sell things and great for the industry you know, we've had our harder time filling new positions, we have been growing, hiring people as hard as i have ever seen on the other hand, we are very, very fortunate ultimately, companies try to pair people well, treat them well him when a lot of other companies were laying people off during covid, victors decided to

lay off nobody so we think loyalty has to go boat ways. so, you know, we had, vefb we have been fortunately blessed with a great work force. it really is brate for the industry when you go to the store now, you see everything is going up in prices, it's the commodities we have to buy as a distiller are going up like crazy. corn, which is the biggest burden is up 50% over the past year victors, we use a higher grade corn, u.s. 1 non-gmo corn. our corn requests are up 59% so this certainly is a bit of a squeeze in tern e certain ways for us and the whole industry. again, i'm very optimistic, in zrenl. this dropped thing with the tariffs will help a lot. you know, the eu and britain are over 50% of american whiskey exports and it's expected that

it will drop >> we're just about out of time, joe. i know havyou have a is you had able to roll out >> it's a hot category so we called it, in general, tequila and mescal we actually went out because of glass shortages and shipping delays we were out of mescal for five whole months with nothing ship so you know it's hit us in that area as it's hit the rest of the industry hopefully, covid is getting better >> cross our fingers for that hey, joe, thanks for your time today. we appreciate it good luck with everything you are dealing with >> joe is the president of victors distillery and chatham imports. >> why are we not drinking, why?

>> we have bottles here. we haven't cracked them opened >> it's 5:00 somewhere >> exactly meantime, we got two big hours ahead. you may want to drink up, if you want to, don't go anywhere we got you covered on the biggest stories of the morning, including this, all a-bird's ceo on tap and the next mayor ofne york city, eric adams and lyft's jon zimmer after surprising new earnings take a look another the futures after three straight record closes for the major averages. we are trading ithn e narrow range this morning you are watching "squawk box." on cnbc. ♪ 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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high thryv! post on social media? hash-tag high thryv my friend! get a free demo at thryv.com. the markets rolls on with the dow crossing 36,000 for the first time but could the fed's latest policy decision today take some pressure off the gas pedal we'll see. elect night surprises in two closely-watched gubernatorial races. we'll dive into the results and what they could signal for the mid-term elections and allbirds looking to fly high, we'll talk to the sneaker ceo, talk inflation and the

consumer and much more the second hour of "squawk box." begins right now ♪♪ >> good morning, welcome back to "squawk box." right here live on cnbc i'm andrew ross sorkin along with joe kernon and becky quick. let's share the u.s. equity futures at this hour it's been in the narrow range. right now you got the dow off 24 points, 25 points, nasdaq higher, 11 points higher s&p 500 off two-and-a-half points a. couple big headlines, covid-19 immunizations could begin as early as today for children age five-to-11. that follows the cdc's positive recommendation for kids, there are 28 million children in that

age range in the united states we will see how quickly or not kids get vaccinated. meanwhile, the federal reserve set to have the decision at 2:00 p.m. followed by jerome powell's news conference. the fed-ex pictures to layout details how to scale back asset purchases. we will have a lot more on that as well. more record earnings in the mark in the crypto market, that is. ether, the second largest crypto currency hit a record high overnight up six-fold, large arrival bitcoin has more than doubled in 2021. >> now this morning's movers we will look at stocks >> i will look at crypt to lighter on sometimes i look at them when there is a huge amount of movement we will save some crypto for the

next hour for my next update but the action is centered around earnings reports and analysts factions that are happening this morning here the first one is humana up about one-half of 1% in the extended hours trade they come out with better-than-expected profits, but the revenues, you can call them inline or a hair miss for humana, they did cut their full year forecast. so a little movement by the way that cut was due, in part to some of the estimates it has for the net effects on consisted of overall we will keep an eye on those shares next up, you are seeing movement a lot of movement, avis budget group is off 6%. it more than doubled yesterday at close it was up higher at one point in the day. there is a host of different analysts this morning who have not surprisingly downgraded the

stock. j.p. morgan cuts it two notches to the equivalent of a sell rating stifel nicolaus cut their ratings as well a. lot is based on shockingly the valuation. it's gone a little too far, too fast, analysts saying it into evidence to come down towards a fundamental level. then b bank of america is out with the top this season, lowes, it likes its possibility to negotiate deals with its supply chain. walmart and target the two discount pick, they like their inventory position as well as their ac is es to ports and containerships starbucks they like because of the gift cards during the holiday season and amazon in its fulfillment chain and warehousing-type operations, that sort of thing joe, i will give you one bonus pick their top pick in specialty retail is bath and body works,

in part, because they think that they will benefit as children buy more teacher appreciation gifts because they're back in school now more than they were last year. >> oh, yeah, i know. i knew kids like that. >> it used to be apples. now it's hand soaps? >> oh, oh, in the front row. i remember that. i remember that. >> were you one of those guys, joe? >> no, andrew and i were hello. >> maybe that will surprise me. >> i still don't like front rows of anything exmeetings and stuff. why is that? entire places are, you know, when they have you know a company-wide thing, why is the back row so good, becky, do you kn know >> it can be empty all the way up front >> maybe because people will watch. >> you can't be looking at your

phone, anything but staring straight ahead. >> what i would say in our hq operations, when you walk in the door in our lobby, you see those big anniversary photos for milestones like 15, 20 years i will say this, i do see a number of you folks out there prominently in the front of those pictures >> really? that's good. they have been out there so long >> yeah. >> that's covid. we don't mix we don't mix facilities. it hasn't made any sense >> the kids can get vaccinated, starting today >> i get the pleasure of seeing becky here so there let's move on, don, we'll see new a little bit republican glenn youngkin is projected to win the race after a heated campaign. t

kayla tausche joins us this has national implications as well? >> reporter: it sure does, republican glenn youngkin securing 57% of the 99% counted. the co-ceo nabbing the first republican victory at the state level in more than a decade by flipping coastal counties, elevating gop support in deep blue cities and lifting support of white women 15 percentage points by last year by tap nook a highly charged debate over school curriculum and the role of parents in that here's youngkin at his victory party early this morning. >> but we are empowered. we are empowered by a conviction, a righteous conviction in our children's future, we're strengthened by our collective belief in the virginia promise so let's climb that hill together let's reinvigorate our future.

>> former governor terry mcauliffe has not yet conkooed seeded he did not talk about it when he landed he proposal said he did not believe his flagging approval and stalled agenda were factors. >> i have not seen any evidence that whether or not i am doing well or poorly or got my agenda passed or not will have a real impact on when if we are losing. even if we passed many i agenda. >> that's partly true. half of voters said his presidency impacted their vote, that compares to 97% of voters in virginia's last gubernatorialer thattorial race citing president trump as a motivating factor. this is providing a playbook for republicans at the national for how to go into the 2022 mid-terms localizing some of these national issues in order to really touch the minds and hearts of voters at the local

level and it's not just a view of political winds and a gain of sentiment in the nation, there is a real predictive power in this virginia race because of the timing and where it falls in relation to the presidential and the mid-terms. >> depending on where you stand, people will look at this and say, look, if they didn't do better because they haven't been able to enactmore of their agenda or people will say they didn't do better because of their agenda they are trying to enact is too progressive so how does this result. what will happen in washington at this point? how does this play out >> it's hard to know how it will play out there is a sign the president's plan pleased to be play out. this was about issues at the local level. some of these local institutions like school boards and city

councils becoming much more progressive much more quickly than the electorate was prepared for it in virginia, it was turning deeper blew over the past ten-plus years some of the discinstitutions ha turned deeper blue at a quicker pace this is a virginia voters saying that's not what we want so see things headed here >> good to see you >> coming up on the other side of this break, allbirds priced above the expected range last night. the ceo will join us after the break. as we go to break, marriott is beating estimates by a penny, a quarterly profit of 99 cents per share. "squawk box." is coming back just a moment. the pursuit is on. the pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes,

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but sometimes veteran life brings more. - [announcer] as america's veterans face challenges, dav is there. - [greg] i'm greg gadson, army veteran. - [announcer] dav helps veterans and their families get the benefits they've earned. - [greg] today, i'm an entrepreneur, a photographer, and public speaker, and i never tire of standing tall. - [announcer] with the right support, more veterans can reach victories. - [greg] my victory is just being the best that i can be. - [announcer] support more victories for veterans. go to dav.org. welcome back to "squawk box." this morning allbirds going public today on the nasdaq the sneaker and apparel maker listing under the ticker bird as in bird, it priced the ipo $15 a share, higher than the expected numbers, valuing the company now at about $2.1 billion. joining us is allbirds ceo joey

schi schillinger. congratulation on what a milestone it's been quite something to watch you over the past couple years bring this company to life. let's talk about the timing in terms of why now >> first again, great to see you. i know are you a big fan i appreciate all the support so we -- a couple reasons, first and foremost always comes down to product we have the most exciting product as a company coming out. the assortment is getting broader. we're playing in lifestyle, footwear and performance, it's attracting the consumers that coupled with all of our retail stores, which we had very few coming in, as we leave now with the retail traffic coming out, it's just a really nice backdrop for us to have a fantastic run in our first few quarters of the company. that's really important in terms of when you choose to go the long term has always been very bright for us that's a big opportunity but the first three quarters

also matter so we wanted to make a great time this couldn't be better for us the last thing is this leadership opportunity had in creating a framework versus sustain ability. it attracted the opportunity for us to do something that was really related where our financial outcome was correlated with our environmental impact. investors were attracted to put their capital against great opportunities that were better no for the planet. >> that's what i was going to ask you, how much of this is an esg play, how many investors were buying last night and will be buying in today a effectively either running the equivalent of an esg fund or something with that kind of of mandate? >> you know, first and foremost, it's the financials. we are going public is about creating great results for shareholders this is, you know, first and

foremost a financial transaction. everyone who is investing in this expects to get a significant return out of this, otherwise, they wouldn't do it now, we did get exposer to a lot nor pockets of capital, the fact that people saw authentic leadership we put forward and see the possibility of really connecting fantastic esg outcomes with financial outcomes. >> in terms of comps, comparables, what do you think is a fair comp for your company as investors are watching you this morning try to think about how to value your company relative to some others >> yeah, it's everything, it's a difficult one. i think we've had quite a meteoric growth. we're only a five-year-old company. we're relatively early we're a vertical retailer. so some point to some of the ctc brands you seen come out in the last year. sometimes people look at some

traditional retailers and app apparel retail stores in driving business with customers. it's tricky, my business is in making fantastic vishoes, sellig them to companies and the other part let's them drive them away. >> you talked about the direct to consumer piece, that's been digital online, are you now opening more and more stores, what does that look like a couple years from now? 21 of the things i think was a fascinating pivot even for a warby parker and the meals on your board is the pivot from thinking you were basically, they were going to be a d2c only digital-to-business and realized it mate be in store. >> for us distribution strategy is the way we reach customers. the business is really unlocked because we make such amazing

products and we've invested in five years, natural products that by far and away is the most important aspect of the company. the way we reach customers, it is unique. there is no vertical retailer, digital footwear business, so that was an opportunity for us to unlock a ton of value and create an experience for our commerce it is unique and there is no majority dtc led it is an important and if you walk into one of our stores, have you such a gait experience. you don't have to return the shoe if it doesn't fit you nail it right there on the store floor. we have a great set of ambassadors in the store that kind of guide what we do it turns out that people that come into our store very often repeat purchase when they go home they do that on their digital platform there is omni channel commerce that's the name of the game here that's where a ton of the growth will come from >> joe, this is a company that

still has net losses, speak to the path of the profitability, how quickly you will expect that >> sure, as i said, we're quite young in the life yet. a couple years before the pandemic, we were already very close to and on the path to break even so this is something well within our sights we see a very clear and short-term path. or else we wouldn't become in public the growth will come and play a big role in that we have a pretty healthy gross margin, which obviously drives a lot of that as we add stores, it's a unique opportunity to attract a lot of new customers our digital program and how we acquire customers with both advertising. but a ton of these wonderful organic programs that we've done, like ambassadors in the stores, all that combines to a really efficient engine for driving new commerce once they try it, they get hooked >> finally, joe, how do you think about selling post-pandemic? there was enormous growth during the pandemic, a lot of dtc

companies have success, as you know, especially as people got more casual with their clothing, footwear and the like. we've also seen companies that had success during the pandemic. the growth has slowed down i think of the digital companies, you look at the zooms of the world, the pelotons that had enormous success, not in terms of sales, but the stock. here we are now as people are returning to potentially real life so the question is, what does that mean to your business is this a shift in the way people will dress and wear clothing and sneakers forever? >> yeah. i think it is. you know i think people have really accelerated this trend towards casualization and, you know, no offense to you guys with the suit business is not doing great. and so i think coming out of covid, when people are starting to get out, walk around town, they want to be comfortable,

look good, this reemergence and the future for us is much more important than what was happening in the midst of covid when people were just sitting in their homes. we're really excited about the trends we are seeing in the business >> i see you wearing an allbird sweater as opposed to a blazer if we had this conversation five years from now how big will the business be of sneakers, if we were to look at a pie chart compared to apparel? >> we have such a unique advantage in shoes it's partly because of our national material r&d and that distribution model, that we reach customers directly so we lead with shoes. that sets our apparel, the same natural apparel r&d translates to incredible feel for apparel we have such a big opportunity the we'll continue to go to that >> thanks for joining us this morning. good luck. we lan to follow your progress when we have you back. joe, what do you think about a cardigan for yourself?

>> i am thinking slip-owns, though can i get allbird slip-ones? i have the other kind. >> they make them are. >> i would go allbirds but not only can i not reach my shoes, i can't see them very well anymore so i need, i kind of feel around and put them on. so i need slip-owns. i have guccis. have you seen these in these are cool they got like little tigers on them these are cool way too expensive. >> we got to go. mark mobius is coming up hey, coach prime... i think you've got what it takes to wear the aflacket. style, charisma, and a smile, that's a 21 out of 10! [aflac!] you know, aflac can help keep unexpected healthcare costs

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welcome back, everybody. we have a quick stock to watch for you as well. cvs healthbeat estimates on the top and bottom line. they came in at $1.97 per share. that was better than consensus estimate of $1.28. they raised the full-area guidance to $8 from the previous range of 7.70 to 7.80. that might be why the raise in guidance stock down right now by 55 cents. still to come, mark mobius joins us to give us his take on the market and the fed plus we will talk to projected new york city mayor eric adams on his goals and message to wall street a praj ograngmi photo

rightch allison, domino's ceo. stay tuned this is "squawk box." and this is cnbc. allison, domino's ceo. stay tuned this is "squawk box." and this is cnbc. > allison, domino's ceo stay tuned this is "squawk box." and this is cnbc. >t allison, domino's ceo. stay tuned this is "squawk box." and this is cnbc. >c allison, domino's ceo. stay tuned this is "squawk box." and this is cnbc. >h allison, domino's ceo. stay tuned this is "squawk box." and this is cnbc. rightch. >

>>

new projections show the president's social spending frame could cost $4 trillion over a decade with less than

half offset by new revenue if all the provisions are made perm 97 elon mui joins us it sounds like there is so much in place still. >> reporter: yeah, absolutely, becky, democrats claim they've cut the price tag by more than half but are using fuzzy math to get to that figure the most glaring example is a new plan for lifting the state and tax deductions, a source democrats are considering repealing it for five areas, including retroactively for this year they pay for that by adding the tax back for five years at the end of the decade, meanwhile, programs at the heart of their package and after a few years, universal pre-k lasted six years, medicaid expansion is four years the expanded child tax credit is down to one. their strategy is to create as many new programs as possible and build public support for keeping them around.

as you said, if this social spending package were to be made permanent, the budget model projects it would actually cost 4.1 trillion over a decade and the tax increases will still only raise 1.5 trillion. that's one reason they're calling for a jpc scale. it's not just joe manchin who is worried. five members are withholding until there is a official supreme court. over to you. >> when you start getting into some of these details, it doesn't seem like they've resolved the issues bringing both sides together. bernie sanders said yesterday he is not going to support hitting the salt cap for everybody, maybe billionaires maybe we can raise the limit he doesn't want to be giving tax breaks to really wealthy people. >> reporter: yeah, if you include that full salt repeal you can end up with a net tax

cut for many millionaires. that's not making good on their promise to tax the rich. by the way, if you add the cap back at the end of five years, you could end up increasing taxes and violates another campaign pledge of the presidents so this is still very much up in the air. i think a lot of folks feel like after joe manchin came out and said he wanted to sort of pump the brakes on this, that that sort of reopened up negotiations and gave them time to fight for programs and provisions. >> it seems like a hole pops up here and over there it shows you how complicated and messy some of this stuff can be thank you. >> reporter: thank you coming up on the other side of the this break, mark mobius on the markets and eric adams joins us to discuss his goals in the big apple and chmu more. we'll be right back after this

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i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so... ...glad we did this. [kid plays drums] life is for living. let's partner for all of it. i'm so glad we did this. edward jones . welcome back to "squawk box. the futures right now are slightly in the red as far as the dow jones industrials and s&p are concerned. the nasdaq up 16 points but all

three major averages the feds are waiting to hear about a potential end of this bonds buying program or taper. joining us now mark mobius of mobius capital partners, a founding partner of mobius capital. we got how many fingers on each? i got five i don't know how many i need, mark, you might be able to tell help but okay we got the fed and what's happening there we got globaling, this pandemic and variants and china, i have to throw that in there then we got inflation and supply chain issues i don't know are you at 30,000 feet or are you on the branson or on the bezos rocket so how high are you? and what are you seeing? how can you characterize your

thoughts at this point in time >> well, right now, i mean you have the ceo conference to climate change conference and what worries me is they are ig toreing the feeds of emerging countries. people forget that china and india depend on coal for a majority of their power, electric power if you have seen the coal prices, you realize this is a real challenge going forward because people don't want to invest in coal means that's for sure. but that means no more coal mines will be opened and coal prices could continue going through the roof but this is a big, big worry and the climate change people are not addressing that issue. what to do with these coal plants the answer is not to close them down but to make them better and to capture some of that co2 to produce algae or whatever else you could do with it

that's one of the things upper most in my mind. the other thing is that -- >> we need ten fingers then. that's not one of them i mentioned. >> it is tempting. there could be a global policy mistake that lasts a period of years and hurts probably poor countries the most and the best we know about virtuous intention and where they lead most of the time it's hot down there, so you know, we may be cold or too hot around the world based on these ideas that we can do this before 2050 there is no way. no way >> exactly, ignoring the needs of these countries it's not how they do it. the reality is more and more coal plants, power plants are being built as we speak. so they got the effect i believe the technological

issue, the scientists have to get together and say how can we make these coal fired power plants cleaner that's the answer. >> that's something definitely are you investing in china at this point, mark >> yes, we're investing in china. but our biggest moments, we got 20% of our fund in taiwan. 20% in india and only about five or 6% in china. that's mainly because of the direction of where we are looking for good bargains, good opportunities. and the tech sector is up the most in our pvgs both software and hardware and we're finding the best opportunities there in taiwan it could be anywhere and india as well. >> what would cause you to say taiwan is going to be, i mean, we know what the elephant in the

room is. would that cause you to sell everything if that appeared to be imminent? do you have to -- what's your calculus on what is going to happen over the next five years? >> that's the real word. i tell you that not only for us, but for the united states, everybody. consider that esmt is the largest producer of semi conductors in the world. what happened? if china takes over, will they continue operating how will that work out so it's a real issue that i think people are not really addressing at this stage of the game but something that, hopefully, this will be addressed at the highest policy levels >> how -- are you ever totally out of the u.s. market or sit, can it be a small part of where your interest lies where are you now in the u.s., in technology in the u.s.? is that expensive? is the whole market expensive?

what do you think the central bankers are going to do here we are linked to the rest of the world also >> not at all. we continue to look at the u.s. market and we just had a conference call with one of the commerce of our taiwan company that we own and the u.s. market is a huge trust and used for the companies, which we invest we got to keep paying attention to the u.s we don't ignore u.s. companies that have a majority of their earnings in emerging marks, because there are companies there in the u.s. that are really making a lot of money in the emerging countries it's increasing, actually. so, the u.s. is extremely important to us. we keep an eye on it we believe the u.s. market continues to prosper to do well. of course, the big worry is interest rates if the banks decide to raise

interest rates as they have done their stopped their bond buying, then that could be a big worry for not only the u.s. but emerging markets and i think what they're doing is overlooking some of their bigger issues such as supply chain problems and labor problems in the u.s., not only in the u.s. but globally these are the issues that should be addressed before they start talking about raise interesting rates. >> really. and how would you address supply cane issues, you know, we're here, we're in the united states we're looking at our ports but as the global issue as well. houck does it 'er cyst and what itself the answer to someing it? >> oh, the answer is that for the government and private sectors to sit down and work out exactly where the problems are a lot of this is regulatory and some of it is labor unions, of course, and labor. we know the issue between labor

and supply chain is very closely intertwined. so you got to sit down and say, hey, guys, these are the problems we're facing. these are the issues let's fix it it's sort of you have to take a war approach to a battle so-to-speak. >> what about if have you opined on this show about this crypto or the relationship to gold or what happens in a world that where fiat currencies, obviously, it's a race to the bottom but, do you do anything there? do you worry about that or do you think stocks are the answer to all these long-term problems? >> stocks are basically the answer, the valuation of currencies is not going to go away, which means inflation is going to continue at a high rate going forward. don't forget, the u.s. money supply has gone up by over 30% now the bitcoin situation and

the crypto currency situation is religion it's not an investment it's a religion. you fully believe there are people thinking they are getting richer hand the that's fine it's lower and it continues to play, it's great and when they passed it, they said everyone has to get up and dance. once that music stops, then we're going to be in real trouble. so people should not look at these crypto currencies as it means to invest. it means to speculate and have fun. then you got to go back to stocks at the end of the they. >> hey, mark, i want to ask you specifically about coin with the crackdown on technology we saw that yahoo is not going to be operating in china anymore, linked in said earlier, there are other companies that instead the same, they can't comply with the privacy and standards that china is going to be forcing on all of its companies it's a big impacts especially on the chinese tech companies what's an investor to do in this

situation? >> i think it's a big issue for china because china will be a losener that case. because china has benefitted from the incredible technology that has been moving into china from the u.s. and from other types of work. there is a shutoff of this flow in this nation will not be good. on the other side, i believe some of the crackdowns the chinese has done is good, in the sense that corporate governance will improve, the small size and medium size and smaller companies will not be so disadvantaged. the whole idea of the monopoly law is now being implemented in china in a better way than it has been up to now so on the one side, the regulatory issues that they implemented are good on the other side, which are on technology people are locked out will be a loss not only for them but the

chinese economy i think. >> mark mobius, we appreciate it thanks that was a pretty high-up view i appreciate your time this morning, mark. >> thank you very much >> okay. we'll see you. up next, eric adams winning the new york city mayoral race he's got a busy checklist for the big apple. he will join us right after this break to talk about it later, don't miss our interview with lyft leader john ermm "squawk box." will be right back back ♪

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. welcome back to "squawk box." this morning democrat eric adams defeating his republican contender and became new york city's next mayor. adams the brooklyn and native forker will become the second black man to become the city's mayor. joining us is mayor-elect eric adams, good morning to you mr. mayor or mr. mayor-elect it's great too see you again let's talk about the message that you are trying to send to business as you very well know, the previous mayor had a contentious relationship, maybe i'm putting it lightly, with the business community you have been meeting with lots of business leaders over the past several weeks now what are you trying to tell them >> reset we understand that we do not

have a good relationship when i sit down with ceos, they say that they have not met with the mayor here in the city that we call ourselves the empire state. why don't we engage with those that have the empires here when we hit that reset, when resources, the expertise, all of that information can be used to help people move out of institutional poverty. i think it's an important relationship >> a big question among investors and a lot of folks who are watching this program this morning. taxes, taxes in new york city and although the potential to appeal of salt, the salt taxes, there is a big divide in the democratic party over these issues where do you stand on them >> we must repeal salt if we appeal sashlths people talk about the stimulus package [ inaudible infrastructure bill.

the thing is that salt has taken away billions of dollars from our resources here in the city i stand on the side that we don't repeal salt, it's going to hurt our economic recovery >> what do you say to maybe nor progressive democrats who say, look, you are effectively giving a tax cut to the riches? >> i say over time, being tactical i am aggress i.. you can take on policies in new york you see how progressive my ideas are. but the real ity is salt hurts new yorkers. i'm not the 1% i'm a blue collar mayor elect and i think we have to look at salt to help every day new yorkers impacted by this >> one of the big issues all new yorkers are confronting are some

of the issues around covid vaccine mandates and the police, firefighters and others, i wonder how you will work with them, you will think that the mandate should be in place you will think extensions the should be granted. where do you stand >> well, i say this on the campaign trail that i don't want to on monday morning quarterback the mayor. he has the obligation to address this issue what i believe he has failed to do appropriately is to sit down with the unions, the leadership. i a us the term credible messenger all the time when i was campaigning. the leadership, they are the incredible messengers before their rank and file, this is something i will inherit in january, i'm going to sit down with them. we will come to a resolution i reaped out to union leadership yesterday. i'm clear that we will come to a resolution and i hope before january and we don't have a

public safety crisis come out of this >> mr. mayor-elect, a lot of folks this morning are trying to read the tea leaves, trying to define what your win means on one end, what maybe glenn youngkins' race means, the close race in new jersey represents. do you have a take away about all of it? >> i sat down at the end of may with a group of mayors and the program, i'm hearing the same thing. we must understand that being progressive means being practical. i use them all the time here in new york we're talking closing rikers island how about closing the pipeline to rikers island. 55% of the inmates have learning zaenlts. 80% don't have a high school diplomacy or literacy diploma, yet, we are spending over 30 billion in the department of education. if you don't educate, you

incarcerate. the question becomes, we must be practical and help people on the ground clean our streets, pick up and educate our children and have a safe city we can build on. >> you mentioned educating our children, of course, the other big debate in new york has been about charter schools. how swiftly do you think you are going to move on some of those issues >> right away. we want to meet the ground running. in january, we want to stop to have the adult dialogue of charter schools, public schools, mothers and fathers want their children educated in a safe, clean environment. that is what's important to me you know the role of government is not to continue to have these battles after the elections are over but to have, how do we come together as a city and put in place real policies, so they can employ the foundation of the child before they get into school

we join in support with the resource inside the classroom. we're going to do some practical things and turn around our educational failures >> mr. mayor-elect, we've had a number of big tech companies buy up some enormous real estate on the island of manhattan, which you know well. what they have done less is do that in long island city and queens and elsewhere i'm curious, do you want that to change there is a lot of folks who look at the number of tech companies that come to them and say that's a great sign how great new york is doing we don't need to provide subsidies, everything else, others that say, no, no, no, that's just the rich getting richer in manhattan. you haven't reached success unless they move to other parts of the city. >> new york city is not manhattan center it is the four others as well. i looked into that in east new york, we have an

industrial park. we can do some great things with technology there in brooklyn, we had 156% increase in start-ups. here in brooklyn over a ten-year period it's important to diversify here not only on real estate just now or pay 51% of our taxes but also on wall street, we need to diversify that and our tech industry is a way to do it we must build a type line, those young men and women should have a type line. i hope they will buy into my 100% paid summer internship program so our children can get exposed in the tech industry and to buy into my job application where we can match jobs that are opened and people take e seeking jobs so i say let's bring our tech industry here to create a partnership to hire people in the middle class in this city.

>> okay. eric adams, thank you for joining us this morning. congratulations. we hope to continue this conversation on "squawk" with you over the next several years. there will be a lot going on in the city and with business so thank you. >> yes it is, i want to be a gsd mayor, get stuff done. it's hard not to be behind that appreciate it. >> "squawk box." will be right back with senator b rtropoman when we return

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good morning it is fed day, investors are awaiting a big decision from the u.s. central bank. it's details of a wind down emergency bond buying. meantime, we will ask former fda commissioner dr. scott gottlieb how crucial this can be in getting a handle on the pandemic in the u.s a big win for the gop in virginia last night, republicans seizing the governor's mansion the top take aways from the business community from ohio senator rob portman as the final hour of "squawk box." begins right now.

>> good morning. welcome back to "squawk box." here on cnbc live from the nasdaq market site in time's square, i'm joe kernon along with becky quick and andrew ross sorkin not a lot to tell you about if terms of the future after hitting new highs in recent sessions we got the nasdaq diverging from the dow and the s&p. the nasdaq is up about 24 as you can see and the dow is down 44 this morning s&p basically flat down 2.4 points treasury yields with the fed talk and fed speak and fed connextture 1.53, maybe we got some individual movers that are worth taking about. >> we sure hope so

with dom chu here to talk about just that. what you can tell us >> i love the fact that you can tee it up that well. so first of all, yes, like joe points out, there is a lot of insteadiness, a waiting, a holding pattern for the fed. underneath the surface, a lot of headlines moving things. first to i first of all, check out a 10% gain, the company formerly known as michael coors, versace, jimmy chu and others, they come out with top expectations and revenues top expectations aupped the trifecta there driven by a sales gain in the versace brand. watch the shares up 10% on the pre-market on the media side of things, check out what's happening with the "new york times", the big newspaper/digital fuse offnews

publishing in terms of subscription, advertising growth "new york times" shares up 4.5%, up 12% on a year-to-date basis still up 4.5% a check on the most popular ticker searches from yesterday's full session. maybe no surprise electric vehicles are near the top of the list right now tesla takes the number one spot. avis budget because of that massive stock surge may be a bit of a squeeze, it was up yesterday, down 10% right now. bed, bath and beyond is up 58% on the pre-market a. little of the short squeeze aspect according to fact set about 26/27% of shares are held short or bet against those shares are getting a rally there, in part, because of catalysts they will accelerate their buyback program and are having grocery store kroger helping to pro held e pell

things chegg, holding steady in the top ten, under armour big results after yesterday as well. as always, the rest of the top ten and highlights from the top 50 are at my twitter feed at the domino the only crypto currency in the top 50, no surprise, it's bitcoin. it's number 45 on the list despite the fact we got those near still record highs for many parts of the crypto sphere back over to you. >> all right dom, thanks. a big election win for republicans in virginia last night former private equity executive glenn youngkin defeating democrat terry mcallive lot race for governor we are still waiting to see what happened in the garden state right across the river in new jersey that was not with double digits, supposedly so i don't know what it says about polls. joining us to talk about last night's elections in the current battle over the spinneding bill,

republican senator rob portman, a, i wonder what you think it means, what happened in virginia in general maybe for 2022 a although like so far away. we know how fickle the pendulum swings fast, doesn't it what does it mean in general and what does it mean for the prospects of the infrastructure bill on the reconciliation bill this week? >> joe, i think it was a victory for common sense, you look at the polling, it shows republicans are winning on a lot of issues, including the economy. the highest number there in three decades. that was reflective of what happened in new jersey and virginia last night. people are looking for stuff other than the big tax and proposals democrats have been making here. it's a great race in virginia. glenn youngkin run a trick campaign there were education issues and others but the national wave also helped his polling numbers got better

when president biden's numbers went down, particularly on economy and inflation in the economy ban the to shift so i think it's a good sign for common sense meaning let's not go forward with this big tax and spend reconciliation bill at a time we have the sim lus money that will only make it worse and at a time when the american people are saying, hey, kind of like eric adams said he will be the gsd mayor. let's get stuff done getting stuff done is you do it in a bipartisan way, which is reconciliation is. i think it's a time for us to recab brate here, not to move forward with this big tax incentive proposal which will help the economy at a time when we need it so my hope is that's the lesson people take from this. >> in hindsight.

i know you probably right the "wall street journal." it's advising republicans in the house to get wise to what that infrastructure was in the first place i don't think you ever really acknowledged it as a gateway drug to the bigger are you man infrastructure bill. we now know it was linked. you led some of the bipartisanship with the republican party almost as though you were betrayed or the rug was pulled out from republicans when it became clear that the two were linked and one was pa way of getting anything you negotiated out or the infrastructure bill ended up in the reconciliation bail and you were played do you feel that way >> well, the president has said from the start that there were separate bills

speaker pelosi is not so dead. she has tried to link it let's be honest, the reason they haven't moved forward is some moderate democrats to their credit, they've held off and are not going to agree to the proposals the progressives in the house and the senate have been promoting so far, there were attempts to like it. the point, you and i talk about this is the infrastructure bill is truly bipartisan, gave a place for moderates to land, to be for something we have an agreement things in the infrastructure bill won't be in the other legislation it has not passed, moderatessaid, wai a minute, this is not the idea my hope is we allow the infrastructure bill to be viewed on its own merits, bring it up for vote if that happens, it will pass, it is going to help the economy at a time when we have low growth numbers

it will be helpful in terms of moving our country forward with infrastructure, which every president has said, including president trump, president obama. president bush and most recently president biden. let's take it up this is an opportunity to say, let's listen to the voters they don't want this huge spending that's going to aggravate the inflationary pressures out there, make it worse. instead, let's do something that makes sense, it wouldn't be a bad thing to show we can to him o come together and do something for the american people. >> is the big picture in 2022 is coming we have seen a very divided country with extremes on both sides almost, you know, hardly even imagine the two sides i wonder what glenn youngkin represents, what you think it represents is it a repudiation? >> the best thing about sarah

palin she came up with refuddiation it combines the two. was sit a refudiation of the woke squad mentality and also at the same time a pushback against the part of the republican party that is so something ga or president trump was glenn youngkin the part of trump and endorsed and kept him at arm's length what did we learn? what was that? what do people want? the middle >> look, i worked the polls yesterday morning. i was a sol tear and stood at the polls and talked to people and one guy came by, he said, look, i'm a democrat nomally, i'm sick of one party rule other came up, independents, you know what, we kind of had it so i don't know what that means exactly for the youngkin

victory. that's an an next date it's not a poll or a survey but when i looked down, glenn youngkin numbers went up there was also a national element for this what i think people are saying, yeah, they're rejecting this move to the left, the progressive spoke stuff for sure i think they are also very nervous about us putting together another stimulus spending that will add to inflames people are making that link. if you look at your nbc poll living the best number for republicans in three decades, there is something going on out there i hope the democrats are listening to it for the sake of our country so we can move forward and get away from this radical legislation that will put us in a position of higher

debt >> i think it will do with the chronology of the dancing. mcall live danced a week and a half ago youngkin didn't start dancing until yesterday. i think that could have been a tossup that's what sunk mcauliffe watching youngkin there. i'm bad you waited until after the election for that stop stop >> he deserves a victory dance >> he did it after youngkin won. >> he did a great job. >> the rest of the team i think you can keep anyway, thank you >>

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time for the october adp reports. steve leashman has that number steve, what can you tell us? >> 571,000 adp saying payrolls in october, that is higher than the estimate september revised to 523,000 from 568 thousand here you go here are the numbers. good sector quite well services sector even better 458 thousand there is the estimate, 450 talk about the errors on adp in just a second.

looking at it by business size, interesting developments large business up 342,000. medium 114 and small 115 this is the second month in a row that large businesses have had outsized gains it seems like beginning in september there has been a decision that some of the bicker companies at least to hire more workers and to be more aggressive here. you can see back ten year small business can catch up, large business may have an advantage here when it comes to an environment with rising salaries by sector, leisure, hospitality, doing well again, 185. best services, trade, education, 54,000 those are good numbers by sector i want to caution, we did work looking at errors on adp they were okay plus or minus, absolute numbers, 65,000 during the pandemic were plus or minus. of course, those were big errors from the worst times of the pandemic

later, they're down to 266 less any private sector economists called about their forecasting powers, guys, i looked at the private sector forecast it's not been much better at all. during the pandemic, it's been a million plus or minus on a monthly basis. that said, going into the fed meeting today, i think fed chairman j. powell would certainly rather have stronger job numbers when he faces an inflation problem compared to one where jobs were weak it's maybe less of a choice to make if he has these strong jobs numbers, it will be a whole lot either easier, beck my >> a lot of questions, we'll get to them later. thank you. >> okay. we got to get across the pond, world leaders are gone and today, is a finance day, top 26 in glasgow, diana oleg is in there. she saw a team of ceos she now joins us with a readout of that meeting.

what happened? >> reporter: well, andrew, you just can't underestimate the amount of venture capital in this building. it's well into the billions, leading the gate, bill gaits and john do err, they have american airlines and microsoft i met with gaetz and doerr, the cameras weren't allowed to save. they were funding solar, wind, batteries, he said i called 25 people to get 18 yes's, i was asking each for $50 million. doerr said on climate, investment, we started, estimates 30 become. the number of ventures has gone from hundreds to thousands of climate unicorns he added, investors will stop at nothing to copy the success of other investors. the group is joined later from the catalyst group, including u

of a saying technology may be here the benefit of catalyst, he said, these companies will make purse and create a climate market therefore lowering risks by reducing the green premium. i asked gates how a private partnership will work when you can't rely on government money when half a trillion is still tied up in congress. he said the size of the fund will be substantially lower if that bill doesn't pass the relationship with the uk and the eu, he said, is based on money already budgeted back to you. >> okay. thank you, diana appreciate it. coming up, when we return, we will be live with fda commissioner dr. scott gottlieb on the green light, it's total vaccine for kids, later the president of lyft will join us to talk ride hail and demand as u.s. cases fall. we are coming ght ckriba with a lot more lot more >>

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. a big moment in the fight against the coronavirus pandemic in the u.s the government signing off on dose of pfizer's vaccines for five-to-11-year-old children meg tirrell is with us now with the details, hi, meg >> good morning, joe the cdc director signing off last night after the advisory committee met six hours and voted unanimously in favor of

making this available to kid the cdc saying covid vaccines has been among the most intensively studied vaccines in history and will continue to be so for the kids vaccine. they note the vaccine for children will help protect them and reduce in-person learning and curb transmission broadly. this was a unanimous vote. we talked with one of the members, a pediatrician after the vote about why they voted the way they did here's what she said >> there was a lot of discussion among the people who were voting and hearing that, yeah, we are vaccinated our children are vaccinated. my nieces and nephews are vaccinated we made that decision after reviewing all the data in the vaccine and decided, so we want to make this vaccine available

for all segments >> guys, there are 28 million kids become eligible some started getting the first vaccines last night. like this little guy in hartford amazing footage, seeing how this is rolling out this morning, with rehearing how children's hospital is up and running. this guy does a little dance awesome a. lot of parents looking for these appointments, finding them on pharmacy websites, through their pedia visions. vaccine dot governor is a government hundred that's not up for kids, we're expecting the broad rollout next week >> i will ask you as the parents for kids underage five, what does that mane for their parents? >> reporter: i have asked this question of the fda, dr. fauci, pfizer ceo and that advisory committee member from the sec the parent of a 3-year-old

pfizer ceo yesterday said they're sending data two-to-five by the end of the year, down to six months in the first quarter of 2022. as dr. gottlieb told us, the fda is looking for more safety follow ups dr. peter marks from the fda said it will be a few more months we will be rauch watching that closely. >> joining us about the time line is dr. scott gottlieb, the former commissioner and cnbc contributor and serves on the boards of pfizer and illumina. this is a moment we talked about for the long time. the question becomes, interesting, it was a unanimous vote in the fda and cdc when it came to booster shots. parents have seen rising concerns i think since june in just about every survey that i've seen. >> it was a strong recommendation from the cdc as well they didn't say children benefit from it.

they say children should get vaccinated between five and 11 i think the update could be more brisk. we saw kids age 12 to 17, eligible to get vaccinated get the vaccine. i think there is an assumption, less uptick. i think the opposite could be true you could see stronger uptake in part because the lower dose will be reassureing to parents, this is a dose being used in the older kids is going to provide an added degree of comfort to parents, that's a lower dose if you look at the surveys, showing anywhere from 30 to 40% charnts will get them vaccinated you look at children age to 17 they said they would get them vaccinated at the outset of that period of eligibility. i wouldn't be surprised to see more than half of the kids ages five-to-11 get vaccinated eventually >> it seems the numbers, watching in the uk, it looks like this age group five-to-11 is where you seen the biggest

incidents of cases occurring, probably makes sense, because that is where no one is vaccinated that's where parents say they don't g want to get them vaccinated it is probably not that dangerous, they won't be worried. what would you counter and what have we seen in the uk >> look, it's clearly less drank russ in children than adults thankfully, if kids were affected at the same rate as adults were, it would be a different ball game. about 8300 kids between ages five and 11 have been hospitalized if you vaccinate 1 million children between the ages of five and 11, you will avoid 130 cases of multi-system inflammatory systems and 75 icu admissions there is a young morbidity we see children dying from it. compared to other diseases that we vaccinate against, there is a lot of death and disease caused

by covid in ages five-to-11. >> with 42%, those numbers showing how much of the five-to-11-year-olds had covid, are we reaching a point, where once vaccination starts, you could be looking at herd immunity where do we stand? >> data drawn from normal blood draws. they look at kids who go into the doctor for a routine blood draws for other conditions show about 38% of kids between the ages of 5 and 11 have had covid. that's probably a high estimate. but assuming in the neighborhood ages five-to-11 have had covid if we can vaccinate there will be some overlap. we will get to other levels, where you have a an over immunity, this isn't going to spread with the same vel loss city right notice between 75 and 80% of americans have some form of immunity, either through private infection or vaccination or

both if you look at the uk, 90% of people in england have an immunity in the uk, you will see the virus spread, but there is a strong decoupling and you don't see the extreme death and disease, most of the people infected have some level of immunity they are probably reinvections or invection among healthier people that close to go where vaccinated. >> can you speak to the business leaders watching what return-to-the office looks like? a lot of places have returned to the office are masks necessary at this point? are masks not necessary at this point? i ask because part of getting kids vaccinated is getting people back into the office to change the dynamic in we are seeing much lower levels than in the past are we seeing a relaxation of

those things i don't know if that's prudent or not >> yeah, look, i don't think we've done a really good job defineing what covid looks like, what life will look like once a good portion have been vaccinated we will have to grapple with that soon. on the back end of this delta wave we've seen a pickup of insex e fixs in the great lakes region but by thanksgiving, we will be through most of this delta wave. on the back end of this, prevalence could be pretty low we could see 10-to-15 cases per 1200 people on the back end of this delta wave. infection levels will drop lower. i think when you are reaching those levels, you start thinking about lifting these mask mandates we will be probably sometime at or shortly after thanksgiving after this delta wave. look at the south, you look at states like florida, alabama, mismis, they're down to ten cases per 100 or less down

there. those are low prefls your chances of coming into contact with this virus is low in those states. i think we were at those levels nationally i think at that point you lift it, it's going to be hard for some parts of the country. people have gone accustomed to the precautions, it will be hard to go back to interacting normally again, this virus is not going away >> how much of the prevalence, in the north, it's cold, a lot of people are indoors there. it was opposite in the summer, it was so hot in places like florida. you have a lot of people inside at that point or outside now, or does it have nothing to do with that >> no, it probably has a lot to do with that as people move indoors, it's going to be more conducive to spread look, this has been a highly regionalized epidemic all the way through. the south had their delta wave we seen it spread to the mid-west and the mountain stapts they were having a dense delta wave that seems to be subsiding.

now you see cases pick up nationally because of infections move nook colder parts of the country that are more populated states, so it looked like infections seem to be plateauing right now. it's just a delta wave moving around the country in a highly regionalize fashion. this epidemic has been a largely regional epidemic all way through last winter. >> dr. gottlieb, i was looking at the numbers out of the china, they took a zero tolerance approach and started doing that again. when you look at the numbers as reported, it's hard to imagine that that's really the level of cases that they're talking about. something like 97,000 coronavirus cases that they've had through the whole country in a country of more than 1.5 billion people and 4,600 deaths. are these numbers to be believed the severe shutdowns they've done helped to that extent

if that's the case, how many people there are potentially able to be exposed the countries where you saw big outbreaks had some sort of, not herd immunity, the more people who have gotten it in the past, the less likely you are to get shut down in the future. i have a hard time making sense of the numbers you put there >> we said all along paradoxically a lot of countries have done well against covid are very vulnerable to the infection going forward. not only have they not had a lot of infection really the only part of china is ubay province. the infections you didn't even have widespread infection. they've deployed a far less vaccine. eastern though they have one accessible to them so their population is probably less protected against this delta variant as well. there are other countries in a

similar circumstance through a combination of a lack of prior infection, they've deployed less effective vaccines, they've left themselves nor vulnerable. we are more impervious we are more impreservious to the infection because we've had pa lot of infection from prior infection. >> i ask because i want to know about international travel and how confident you feel where they had lower outbreaks or with people have had lower outbreaks and they don't hire any vaccines yet. >> china is still maintaining the restrictions coming in that may have to do with more geopolitical issues than purely concerns around covid. when are you traveling in western europe, they've had a similar experience to the u.s. and there are parts that have more in their immunity certainly the uk is that way prevalence evidence is some level of immunity to covid

through vaccination or prior infection. the only pocket of vulnerability in the uk are children they haven't done a good job of rolling out the vaccine with kids that's where the infections are happening right now. >> what about a global conference are l you go to davos? >> i'd feel comfortable in europe i don't know if i'd go to davos in normal times. but that's another question. >> thank you it's freight to see you. good to see you. >> thanks a lot. >> okay. >> coming up, frank lutz will join is about the gop win and what should the business community be taking away from all of it? don't go anywhere. we're coming back right after this >

. in virginia, we know republican glenn youngkin taking the governor's race last night beating out former governor terry mcauliffe. one of the other big contests was in right next door to the tunnel in new jersey it's still too close to call governor phil murphy locked in a tight race according to nbc news, it's a dead heat, 85% of the expected vote in in

joining sus frank lutz, political strategist at fil, inc. you have eight counties left when it's all said and done, you figure that murphy is likely to win by about 1% then you point out based on last year's election, that's still a 15-point swing so there is something in both of those races in virginia and new jersey that points at something? >> exact lip and virginia the swing was a 10-point biden with inin 2020. now 2 points republican win in 2021 i don't see it as an embrace of the republican party i do see it as a rejection of what's happening in washington with the democrats, in three areas. first the spending, the taxes, and the big government which has even in a state like new jersey, the fact that you had that much of a swing, this is a clearly a

democratic state votes democratic for president in virtually every election in the last 25 years. these and virginia's trend democrat these states made a statement last night of rejection for the policies that we see in washington, d.c. it's now up to the republicans to turn that into votes a year from now i am prepared to based on -- >> go ahead. >> it's going to make news right now, based, what happened last night, where those came from, blue collar voters, suburban voters that have come back to the republican party a dramatic higher turnout than we saw in georgia in the runoff. at this point the republicans have the advantage in taking the house in 2022, if the policies stay the same and the politics

roughly the same this will be the same election in 1994 and 2010 the same ingredients the economy. the politics, the partisanship the leadership of the house. that republicans will win a majority in 2022 based on what we saw in both new jersey and virginia >> yeah. i was going to make a point. it's a year since the last election, we see what's changed. we got a year until the next one. so i appreciate talking about it, you know what i mean it's such a long time, it's like dog years or something the american electric can be in years. bernie sanders ain't going anywhere the squad, aoc will win with 90% of the vote. they won't answer for any of this stuff they will be around.

they will watch as they throw all their colleagues and people in the caucus in more moderate states they don't care, they're throwing them all under the bus. so they'll probably lose control of the house we will still hear all this stuff constantly all this woke can certainly big spending, all the things, obviously, even in virginia that was too much for people down there. so it's weird the way it works they won't lose. they will be spewing this stuff. >> well, the business community has to make some decisions, pla recall in regards to taxation and in regard to climate what they have to notice anticipate is things will be dramatically different 12 months from now than they are right now. so the business community has to decide, do they endorse what the biden administration is proposing or do they try wait it out? based on the results of yesterday, i think new jersey goes democrat in the end, based on those results, the best

approach now is to cooperate with what's happening in washington but to plan for policies that will change one year from now. and that's significant in terms of planning. it's significant in terms of the relationships with various politicians. one thing is clear, in a state like new jersey, which voted overwhelmingly for trump in a state like virginia, donald trump does not appear in any of those states this is also a road map for the republicans after trump. >> is that is reconciliation or tougher or smaller or what >> it's going to be tougher and senator mandhin and senator sinema right now, it's the most powerful caucus in d.c >> thanks for the day after. we had the day before and the day after. there was a movie i think, too >> joe, we got another big

interview, the president, co-finder of lyft. will break down the third quarter results. stay tedun "squawk box." is coming right back after this. back after this. >> ♪ ♪ > ♪ ♪ hey businesses! you all deserve something epic! so we're giving every business, our best deals on every iphone - including the iphone 13 pro with 5g. that's the one with the amazing camera? yep! every business deserves it... like one's that re-opened! hi, we have an appointment. and every new business that just opened! like aromatherapy rugs! i'll take one in blue please! it's not complicated. at&t is giving new and existing customers our best deals on every iphone,

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whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today. . welcome back to "squawk box. shares of lyft spiking in pre-market trading the company reporting a surprise profit also beat revenue estimates for the third quarter benefits from rising as the pandemic eases joining us the co-founder, john, it's great to see you. boys, did this surprise the markets to the upside? tell us what this quarter suggests to you and represents >> here we had another strong quarter. we beat out every metric

the recovery is happening in our business driver, there is a lot of talk about the driver side of our business active drivers were up 45% year over year, we're getting better equilibrium on the balance in our marketplace and people are getting back out there >> speak to this driver issue. i think it is the big question, which is what kind of incentives do you have to provide to drivers? the price, by the way, on the consumer end, because i just used the service, it's still high i mean, it is meaningfully higher than where it was say, you know, 18, 4 months ago >> yes still higher than we like from that time pretty much pre pandemic but much improved since the previous quarter and the driver piece of the equation i think has been you know put on this industry, but if you zoom out and look at retail hospitality and other industries like that when we compete for talent,

going back to january, our driver pool is growing five times faster than other industries because of the flexibility. so we're still coming out of a pandemic and marketplace has to get to the right service levels, but we're happy with what we are seeing we are confident we will continue improving current service levels >> john, one of the conversations all the time is about inflation and wage inflation as a part of that. both the good and bad of that, your sense long term what equilibrium looks for you, how much higher will pages be for the drivers? what is that mean for the margin over the say next 12 or 24 months >> hard to predict overall inflation. the good news about our market is, you know, if you go back to pre-pandemic, the unemployment was at all-time lows, maybe 3.5% we were growing our people of drivers at that time so because of the marketplace

dynamics and supply/demand balance, we were able to operate in many tough environments we've also added for the rider side many differentiated products at different price points f. are you willing to wait, you can get a better ride prior to the pandemic because of the futures. >> how do fuel costs impact your pricing? >> you look at the expenses drivers v. it's obviously the largest valuable expense so when drivers think about you know the hours they want to do and the earnings they have they deduct those higher expenses that said driver earnings are one because things are so busy we made a lot of improvements on the driver's side of the business for drivers to have high legalization or get more rides per hour so there is a lot under the hood, a lot of data science to

pick which drivers to match with which riders you can continue to utilize as you improve that marketplace technology. >> one of the metrix that was fascinating in this quarter was just how many more rides there were to the airport and what are you projecting in that regard? we can say that airport rides were up about 3x year over year, which is quite significant people are getting back out there. business travel i'd say hasn't fully recovered. i believe airport rides had previously gotten up to % revenue, so still a ways to go business travel is beginn ning kim back regional pockets, are you seeing amazing success, or certain cities where it's tougher? is that a function of covid or

the pandemic or is it more competition in those cities >> its think it's a population and its comfort to return to work on the west coast typically we're even stronger, so a city like san francisco has been slower to return to work than in other places i think we're still at something like 60% pre-pandemic in san francisco and higher than in in other habits. >> what about public transport in cities in new york there's more people on the subways than before i assume there had been people taking lyft, uber and the like prior, shifting how they were traveling. >> we've focused on transportation we have city bike in new york as part of our business we're seeing large growth as it

was through the pandemic we have more rides overall in rideshare. we have lyft rent always and transit information in the app. we're -- we're seeing a lot of good things with our focus on transportation. >> john, always good to see you. congrats on a great quarter. >> thanks. good to see you. jim cramer joins us. we have a lot of things to talk about. first, bed bath and beyond, because you guys have the ceo coming up? >> trent been pivoted, last quarter was bad, more importantly this buy buy baby, where it's basically a very good relation can krocorrkroger.com,i

a very big deal, and buy buy baby may be worst of rest of the company. >> you know, to the types of jumping that you have seen, though, an increase in more than 50% a day, that's enough to make your head spin. >> of course, still, when you have a company with a big short, then, you know, the government people get reenergized, people who did amc. they feel like hef hedge funds on the run, kind of like melissa lee's documentary yesterday. out of nowhere mark trenton triggers a squeeze protection. this is the world we're in now

>> strange new world let's talk about john deere. i thought this deal was going to be completely done, they would deal with the worker issues, with the strike that's been going. they offered some pretty generous benefits. big increases in pay, health care even in retirement, putting back in a pension even for new employees. it seems like really big wins. it looks like the workers said, nope, not enough >> i'm so glad you pointed this out. this could be the new world where large companies, maybe the auto companies have this happen, where the power belongs to the workers, and. >> shocked that the co-workers didn't like that plan. but it does that seem like these are the days somewhere shareholders don't necessarily win. we have to watch this, becky i think it's incredibly important, when you heard, wow,

the workers won, and it wasn't enough >> this is a situation -- the company now says, okay, we don't have any more room to give, but i don't think they'll have a choice what happens next? find new workers >> they just take the heat i've got to tell you, of the stories that are out there we're not following close enough is the reempowerment of labor that we haven't seen in ages. maybe -- i don't think they can. >> i don't think they can, either if you have a lockout, you have to bring in new workers to keep things running who? yeah, to cross a picket line would be really amazing. i think a lot of the younger generation money managers can't even remember when caterpillar broke the union back in the '80s >> where do you find scabs at this point

>> that's my question, where are the scabs? >> you're going to have to pay them -- >> we'll have david faber when he's done. >> if this is the case and really an indication of what is to come with worker empowerment, then what happens to this whole idea that it's transitory? we'll hear frommed fed their tacking about transitory inflation, by the way, this was for a six-year contract, and it's still not good enough what happens how do you play that out snowe. >> i think used car sales are way up i think it's going to pressure powell, but i think powell will say there's not a lot of instances like deere, because a lot of unions have gone away maybe he thinking that the workers have actually been shafted at deere in favor of the shareholders for too long. remember, he's pro-worker.

i know that's not the usual stance of a federal reserve president, chairman, anybody, to be pro-worker. i think he want people to make more money, because shareholders basic live have had capital appreciation, so i think he's much more the working perp's fed chairs -- working peon f cirrs'sedha >> we'll see you in a few. we'll be right back.

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a last look at the market. this is the adp number, wow, that means it's jobs friday p no flies on me. the dow jones and s&p, we have that to look forward to. see you guys tomorrow. please join us tomorrow. "squawk on the street" is right now. good wednesday morning, welcome to "squawk on the street." i'm carl quintanilla, with david faber and jim cramer record highs for all the imagine averages, with a taker announcement ten-year yield hits a two-week low, and above expectations. our road map begins with the return of the short squeeze,