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, watching wild swings, mark

tritton will join us in a few minutes. it has been said already, that when it comes to avis, that's what you get with the short interest meeting thin markets. >> people don't seem to under, this is a new world. watch melissa lee's documentary. if they smell blood in the water, they show no mercy. you take a look at avis, yes, it added $10 billion -- they're insensitive to market cap.

there is obviously gaming with people who have discovered there are hedge funds representing rich people, by the way, that can be annihilated very quickly. >> also hedge funds that are in on it. >> like fellow travelers >> that's a nice way to put it. >> actually a communist way to put it, actually. >> yesterday around 10:00, we know that those who owned hertz, which was a head, and avis had enormous performance, though there were those simply shorted as a result of how much better can it get then you got better, which took the stocks back up to its highs yesterday.

>> carl, what happens is -- i don't think people realize a lot of money managers are giving money to say, listen, we need been to gain shots, now, they funds that have this is provisions, say they must have shorts, these are ones where meme go to work every day and say i wish i was an assembly worker at deere, because i'll make more money this year. well -- >> hedge funds have underperformed the broader market those that have private investments, that's probably where they're outperforming more than anywhere. >> i'm hear it from many others taking place in the market, but

they will tell when you they underperform year after year after year, is they risk adjust. that's what they're doing, risk adjusting. >> we don't want to buy into their act? their act is bogus >> it's an enormous thing. >> you can feel people -- they're out for a long time, 25 great years of creating billionaires >> i think warren buffett has covered that ground closely, saying these people can't outperform they have a lot of good graphs have you ever seen the presentation, whiteboards? >> marketing is the key to it? >> i was in there for a half hour, and said, where is your dec? a dec this big, wow, wow, and you get to the numbers, and they suck, the numbers are awful.

so i come in and say -- i say i'm going to beat everybody. well, no, what is your strategy? to when? well, no, but what's your plan to win a w is a w they kicked me out so fast my head was spinning, and they gave all that money to the guys who made the graphs. >> are they now also expected to raise money when it's their turn >> the opposite is what we're going to see today. >> mark tritton is going to talk about that the stock just had a make move adam aaron in melissa's show, basically said these people saved my company

>> this year was not the biggest move because of the memes. it was still arche good. arche ggos. >> that was not the reddit crowd, some guy who are $10 billion working out of his office -- where was he was. >> that was a prelude to the year, to the z zanyness >> hey, listen, i would sell

high, buy low. it's about stock, right? >> yeah. >> don't confuse things. it's about the stock, not the company. that's the year, 2021, it's not about the company, it's about the stock. >> to that point you've been pretty good telling our viewers what a good seasonal period the last five days have been, and we're up four for four >> i went back to larry williams, he's a great historic of the markets, saying stay the course it's a bit early to get off the horse. we have the fed today, and the fed will do something that i think is not antiworker, because that's jay powell. i think what's happened is we keep expecting him to low irthe boom he's learned his lesson. don't lower the boom don't do anything where it says,

it made the fed kill this. don't do that. >> so what does that mean? taper is not enough? >> although dudley without an opinion piece this morning, arguing the fed may have to do more than the market expects, he looks back and says you went from 1 to 5.25 for 17 consecutive meetings he said that's the better template to look at it unltsds -- >> the problem is jay doesn't dough -- he's kind of an historic in the market >> he knows history. jay knows historic do you think he fell out of a turnip truck he nosknows 17 times is wrong.

when he said -- he learned from his mistakes i think that shows wisdom. wisdom we're a podcast, don't shake your head. >> i forget we're a podcast. did i do okay? >> put me in my place. >> no i wasn't being condescending or insulting i'm sorry you were misinterpreting. >> were you condescending and insulting when somebody got it so wrong didn't you want to say -- >> there was one category, celebrity mothers, and the guy did the father i was, like, the category is mothers? >> listen, you joker -- >> i'm not going to do that.

you can't get the damn buzzer right? it's hard. >> maybe the best party i went to was the "jeopardy" party. i saw your son, so smart and great. never too late to tell a mom how -- >> let's move on here. good lord. talk about a some. c? >> no, i think jay powell would be a great "jeopardy" contestened. we'll talk with the ceo mark triton after the break we'll watch that oil us back below 82 don't go away.

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all right. it's also a company, shares of bed bath and beyond are soaring ahead of the opening it's now -- kroger has a lot of stores, by the way people don't understand how big this thing could be, an increase in buyback ahead of schedule which is interesting a pure delight bed bath and beyond's ceo mark tritton. it seems like you have course

corrected. tell us about it >> yeah, thanks, jim good to see you. billed bold news we announced yesterday, in terms of two prongs one around creating authority in the home and baby space with our partnership with kroger and is the marketplace. showing the confidence we have in our three-year plan, we're at three quarters, which is substantial. but we believe we're on track. now it's actually a good company, but what i'm worried about, is it right to spend of money up here or wait until it comes in a little more >> we'll be prudent within the year on when and how we perform. obviously this was a big rock,

creating some big ripples. so we've got a price to assess and evaluate really prudent spend. so, again. shares shooting up to 2732, that's a moment in time we have a good balanced approach we feel good about that. >> great conversations around really a fantastic market leader in consumer engagement what does that mean, though? it's a clear entry point, as well as importantly the buy buy baby brand, and really be the dominant brand around the fed.

and we see that being tapped into a much wider base, and a geography base, and creates that authority, and giving kroger a key brand and key statements and key benefits they can utilize to create authority for their customer let's say you do a $1 to 2 million i keep thinking, therefore, buy buy baby is worth of whole price of the company? >> i think what this does, this will be sequential, right? firsti the digital engagement, i think that will teach us a lot, and piloting, testing opportunities within the store

for shop in shop concepts and bringing that authority. i think there's a long-term place here i wouldn't begin to speculate on its impact at this point, because it will be over time, but clearly we have stepped in and partnered with a great partner for a very specific purpose for growth and authority. we'll continue investing across the board, to create -- particularly with buy buy baby, where we're about 130 stores now, and we are in an original geographic market, number one in baby when we're not, we're three to five that recognition of our banner and the associated products, with the differentiation of buy buy baby as well as bath. >> back to stock buyback

you've kind of committed to repurchasing 400 million in the third and fourth quarter of this fiscal year. i just wonder, it's a high-class problem. better off to just wait, or what's the point >> unfortunately a few times we've bev watching it closely. we're not going to waste or precious dollars, so we'll be prudent, cautious, but we believe at this point, when things settle down, we'll have the right share price to purchase ahead of what we see. >> they seem -- you told me

to -- but what i'm wondering, if we see janus suggesting a tax, macy's doing a dot-com spin-off. isn't your e-com -- i don't know it could be worth $12 million? you know, there's a lot of money around, and your to be is way too cheap versus the assets. >> i think for us, we have come out from day one and said we're omnichannel. the integration of the physical side, that actually creates a strong load for us to say that the data and the engagement and expert are deep le connected we see the value in the company being value of the ecosystem

>> i think you're too modest, you were not happy with marketing, you were probably, like zillow, incredibly hard on yourself what were you able to do, how were you ability to move so qui quickly we have always been committed and that goes in times and bad, and we had a tough time we saw some headwinds, we had to something the supply chain and then headwinds that were self-inflicted we cut off the lifeline, and

divested and reinvested, and we didn't have the right clarity around that. we stopped that, pivoted really engaging that 360 response, coming back to key vehicles, not to promote, but to engage the cutts and share our stories, and our opportunities, whether it's a deal or a great new brand. just getting that into remastering the fundamentals was one of our key priorities. we've done a lot of work with google and et cetera to understand our customer and traffic. and that's been an evolutionary process. really strengthening period. >> we'll urge people to go to the chelsea store if they want to understand the future

mark, great to see you, market triton, who is the ceo of bed bath & beyond. thank you. >> thank you. a countdown to the opening bell we'll get to some of the companies that have -- nasdaq has a good shoatt an opening high we're back in a minute

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take a look at some of the laggards we'll talk more about that in a few moments.

we'll have the opening bell in 5 1/2 minutes. don't go away.

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let's get to the mad dash, down to the opening bell as well why paypal >> you know you have this investment club. we have some wins, estee lauder, a very big position at dupont. i want to talk about a loss, because you have to be transparent. that's what the club is all about. we've been buying paypal, thinking that people would realize paypal is doing well, and talking to pinterest, but it doesn't matter one reason is there's a company called global payments, and it's -- there's a lot good people there she talks about a ho-hum quarter, but she's talking about a new world. mastercard, visa, pay balance

a -- paypal and global are old, new is affirm and more, so paypal is now being lumped in with old. >> it seems hard to imagine that it could be lumped in with old >> now, let me just go back to the real world dan shul man runs paypal he's the best there is the idea this company is falling apart, it's really -- >> they may -- and we talked about this a few weeks ago. >> it's big. >> a truly emerging force. >> a lot of ipos are coming, and paypal has become a source of funds. in my defense, since i've been completely wrong on this that dan shulman, he's not say my stock goes down every day, why,

why? it's a great company. >> the pinterest thing did throw people sometimes it can be seen as a sign, like, what are they thinking and why are they thinking it? particularly when they articulated -- >> you just did it that's why it's going down dan shulman lost his mind? he might have lost his mind had he bought it, but the stock is not going up -- i mean, it's going down almost every day since they announced the deal. the chartable trust owns it, been wrong a lot of money manager comes on, they've never made a mistake in the world. there's my mistakes. allbirds ringing the big at the big board, a pretty did

pipeline of ipos coming. we have brad been ipos -- not making money my idea of branding an ipo is when it's not profitable what matters to me is there's a group of companies, whether it's warby parker, this one, where they come public david, what they really do is like in the 1990s, all-birds, i'll buy that, i like their shoes. that's one of the things we're in i have three pairs of allbirds aren't that reminiscent of another? >> yes, it was and it was not clear whether any of those companies would ever be profitable we had a glut of athletic footwear years ago, another one came on fairly recently, and a number of new.

>> look at underarmour yesterday, the dick's/nike partnership announced today, the patent that nike filed >> we haven't talked about match. >> what's going on with match? >> you must have seen what happened. >> tell me. >> so match, as i get on the what am i looking at >> we're up to page 70. >> there was a number. -- >> remember, you hold your phone up to jim's head where there's a qr code embedded. >> the cramer-verse. >> what was interesting, is match has a metaverse called single town. it's a live virtual world, where you get an avatar that can engage with others it provides a glimpse into the metaverse, they call it the next face of dating where your avatar

meetings someone else's, and if there is chemistry, who the heck knows? right? >> do sparks fly do you keep it in the metaverse? >> what happens in the metaverse staying in the metaverse. >> there's so many questions that i have about this we need to start can be them all. >> yesterday it was do you keep the same wives and now can you transfer girlfriend from the -- >> your avatar could have time of its life. >> you know what leads. >> yes >> every single time >> i think our viewers do, too >> microsoft in a video yesterday looking at mesh and teams and the testimonial from acce

accenture. it's like, wow, i guess i better use it he's doing a good job. it's never mentioned in front of congress, not since 1999, when they had that nasty dust-up where steve balmer said some things >> half a billion write-down, cut ago quarter of its workforce. is this right, in april of 2019? take a listen to this. >> maybe they can orchestrate a remarkable turnaround in zillow, but i think this headlong rush into buying houses business, there had be brutal speed bumps along the way. >> wow >> well, it turned out to be a

bit like when andy deframe approaches the ward in shaw shank, and says there was an obtuse mood. remember, they were going to make a market in homes, like the now nasdaq it was ill-advised, i said stay away, count touch the stock. >> and you were dead right. >> but i liked wingstop, too. >> was it based on estimates >> exactly they thought they could predict. >> ai. they own thousands and thousands of homes. >> i think they're down average, like, 4%. >> they have cut 25% of their workforce. i felt, when i listened to the

c call, the level of arrogance that oozed through the call, it was kind of painful, as i felt the "closing bell" interview with barton was painful. here's what he said last night. >> this was a necessary decision we just determined that being an i-buyer was too risky, too volatile, and ultimately addressed too few customers, too narrow. >> that wasn't eating enough crow for you >> no. what i want was it was too risky, too volatile, and too small. better late than never no 25% of the workforce, billions lost i don't know i think that's a -- when mart triton reported, head said i

screwed up i felt this was not sorrowful enough a guy finishes the last plate in the nfl is more sorrowful. >> it's suboptimal, to use one of your favorite terms >> one second -- >> do you have an envelope >> one more. >> t-mobile. >> yes what is t-mobile it's still up over six obviously one of the largest, right up there in terms of at&t and verizon. it's bigger than u.s. steel, and yeah, it's a lot of bed baths in there, $150 billion market take a look, though they're getting the benefit -- there was an upgrade at raymond james,

673,000, we -- many people believed they're the best positioned in terms of 5g. you can see none of these stocks have done well this year it's been difficult competition. comcast and charter are also competing to some extent, though they too have not been strong performers, they're concerned more about the loss of subs tan and broadband market, but take a look at the numbers. because, jim, when you look at the quarter and net adds, at&t had the most at&t added 928,000 subs. that was number one. of course, that will segue us into discovery, i think, because they are moving ahead, getting

closer and closer, perhaps as soon as april of next year you could see an approval and a deal clos close, where they'll -- you ar the archegos mountain. it's amazing to look back at that but when you look back at a long time, it's not responded well. they're addressing one of the key fears of shareholders, which is leverage. this point as to stronger financial footing than we anticipated, as we accelerate the pace to deliver there. they do have 20 million direct-to-consumer subs there for discovery plus

he did emphasize that ability to leverage meaningfully sooner but overall, they keep going down that continues to be a keep concern for investors. the numbers are negative, and will continue to be negative for the foreseeable future >> also 3% lower and 8% lowe for linear networks, total subscribers. >> kevin maher being added as a consultant, the man who launched disney's direct -- but that was interesting -- >> he said he's getting in the car with us. >> david is right. there's been november in a lot of different sectors

that sector has been one to avoid. >> activision, jim, down 15%. >> oh, my, did you read that >> in part because of the difficulties that it's had in terms of those harassment lawsuits, allegations, state of california coming out. they're doing a lot to address that, but i don't know if that led to the inability to get stuff down around the same timeline -- or not on the timeline they originally >> analysts saying that is the reason that there's been so much turnover at key levels, simply because of what is misconduct. something in that conference call i found to be disturbing. there will be no more retal a's against anyone making a compliance complaint

let's say you said there's sexism, you were retaliated against. that's outrageous. maybe with extreme prejudice -- >> a bunch of other movers, including lyft the do you is down 110, we did get 151 this morning on the ten-year that is a 2 1/2-week low, just a few hours ar from the fed's statement and presser. don't go away.

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welcome back rick santelli live at cme hq

57.3 was mid month, 0.3 of an improvement, and we look at the service index. it also improved it wasn't expected to, whether it was labor costs or supply issues, many thought it would move in the reverse, a half percent better than the mid month read, and, of course, we may have what is the preferred services pmi at the top of the hour don't touch that remote. "squawk on the see wl tu aerhese important messages ft to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

when i sit down with ceos, they state they have not met with the mayor here, that we call ourselves the empire state, why don't we engage with those who have the empires here? when we reset the expertise, all of that information can be used to help people move out of institutional poverty. i think it's an important relationship. >> that's new york city's mayor-election eric adams,

talking about the election he says practical is progressive. that's the new message. >> i enjoyed what he had to say. i think that there was an overall feeling that wall street really wasn' not on air but privately have indicated that there was a kind of we're not interested and mayor elect has made it clear throughout the campaign that he's going to have a different approach there are a lot of decisions that big companies need to make in the coming years about whether they want to stay here for example, blackstone. whether they want to create a new headquarters

hard to have that conversation with the last administration amazon and the headquarters that ultimately did not occur 30,000 plus jobs potentially who knows who's going to be in the auflgs >> still paying jobs >> some of the twiep data is getting better 18% say the pandemic is getting worse. down from a week ago as people feel good about child hood vaccines and -- >> he said listen, it's a regional, not national we don't feel it up here >> that's true

>> goldman's high. and europe's been on a tear recently a mixed picture. consumer staples high prp and tech's been on a tear. momentum really strong there the big debate, earnings some of the global industrials for example, huge electrical component company. demand is strauk strong. they're talking about operational challenges, supply chain, continuing through the first half and big automeative parts manufacturer decline in industry production

earnings growth and lower than last year because of supply constraints. snacks and beverage, obviously and they're racing prices. some of the chalk lts are going up as well and and its interesting, the ce 0 made comments saying he was surprised by the consumer's willingness to accept price increases. he's not sure himself. and tupper wear had an aurnings beat andf significant revenue shortfall. tupper ware is going to get nicely than 15

we've seen demand be strong. supply constraints kpesing and overall, the mark ltsz are continuing to be reasonably strong carl, foeing to come in about 12.5%. i'm talking margins. that's lower than the 13.5% record margins in the second quarter. but remarkably high, given the supply chain issues. the demand is >> rove new's will be rising and that's one reason the overall stock market is holding up so well >> thanks. let's get to stop trading with jim. >> cbs is important. and lisa gill, one of my

favorite analysts at j's p. morgan, talk about a lot of it benefits from vaccines they keep customers and it goes higher >> wal green's says kid vaccines begin saturday >> more business for cvs i know he took a lot of heat paid back 18 billion in debt >> i've got wing stop and i've got an interesting guest jane goodall >> we love goodall in our house. and she's been -- new book is amazing. one point -- i'm not about to

change it all. >> we'll see you tonight." "mad money." 6:00 p.m. eastern time cnbc.com/investing code. we will continue to keep an eye on bed, bath, avis and zillow. d. each day looks different than the last. but, whatever work becomes, the world works with servicenow. trading isn't just a hobby. it's your future. so you don't lose sight of the big picture, even when you're focused on what's happening right now. and thinkorswim trading™ is right there with you. to help you become a smarter investor. with an innovative trading platform

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good wednesday morning got a new all-time high on the nasdaq but all eyes are going to turn the fed as we look for perhaps the taper and rate guidance. >> all eyes on that. in the meantime, we're three minutes in the trading session we're going to start with lyft, getting a, well, lyft. revenue topping forecasts. they're benefitting from rising

demand, and it's game off for activision blizzard after delay in the launch of two games and this is a name that's -- it's down another 14% today down about 28% so far for the year and zillow is down after saying it's exiting the so-called eye buyer or home flipping business. lower than expected revenue for the latest quarter shares are down another 18%. the algorithm, zillow, is not working. >> and hey, rick >> you know, the ism service number is probably the preferred measurement for services this is a sem nigh rocket ship

66.7 our october read it really dwarves expectations of 62 and surges past 61.9 we know rising labor costs and head winds have been a big issue. and some of the buying and selling positions and treasury yields, they might be about over now that the fed meeting is hours away if you take out transportation, it improves we half a percent. these are solid numbers. when we look at our september final read on durable good orders, a bit of a disappointment minus four-tenths of 1% is the midmonth. for it's about as expected so, that comes down

three-tenths and it improved a lot, up to half of 1% so, up .5 and that is up four-tenths. and nondefense x-aircraft, up eight-tenths and finally, we switch out ordrs for shipments up 1.4, also matching the midseptember read. data's pretty good today and after all the biing around the globe and sovereigns trying to get into position, that's about over >> thank you we're keeping an eye on shares of bed, bath & beyond up 45% after company shared results. >> we'll be proudant within the

year and we're not in the day by day. we're in it for the long term. we have process to evaluate. again, shares shooting up to 27.32. that's a moment in time, not part of the overall plan to invest and we have a balanced approach so, we feel good about that. >> they have 4.5 million left and they want to buy firm it's in part due to shortcoming and not necessarily the fundamentals of the company. >> caller: you had a down grade to sell. again, siting the valuation. and basically saying this does not change the firm's view on declining market share and

relevance we put into focus last hour they're in the midst oaf oa putepgsal turn around. the stock still down something like 80% since 2015. it is not a stranger to the meme mania. rirbts déjà vu because we've asked the same question in the past nonetheless, shares up another 31% today. actually pairing some of the gains we saw while you were having a conversation earlier. >> after robinhood, we were wondering whether retail interest is waning we didn't ask about supply chain inflationary aspects that's for next time >> which is obviously so important for many of the companies. carl brings up an interesting point.

you see the volatile moves, in particular yesterday with avis and that incorrodable move up. it's be meme-iified and it's a lot of investors feel the need to cover >> it's a chicken and egg situation. obviously both of the companies, avis budget and bed, bath & beyond are heavily shorted you're seeing a technical short squeeze. the memeiified aspect. did that squeeze start happening and investors help fuel the fire i think it's the latter in the

situation with both of these the when you compare it to gamestop and amc, there wasn't so much of a fundamental basis that set the stocks higher it was largely based on a collective agreement that everyone should pile into the names on social media j they did. and it didn't necessarily warrant the pops we saw. they were to get them running higher and we have it technical aspect. >> i didn't see that amc and gamestop are going crazy right now. i'd missed that because what you describe seems to equate what i heard as well. for example, avis, many long

and some were simply short avis. here we go the original memes going crazy. >> they're up $5.5 billion just yesterday alone. obviously they've taken some of that off the table today but a remarkable play for hedge fund there so, again, it comes back the idea it would be nice to paint the narrative of retail is lodge and hedge funds are short. it's more complicated than that. it's not black and white but shades of grey avis, parted of the reason we

started see it see the incredible pop is they posted margins that compare team much stronger than weesk seen before. the comments about evs and potential adoption of more ev there. a big trigger with tesla and ev stocks in general the last week. and i just wonder how that speaks to these broader pockets of activity we've been seeing in general. sfwlmp remember when everybody changed their namp soosee what that can do the market this is a slightly different take on that they hinted that they would look

into adding electrical vehicles to the fleet didn't say they had a vehicle lined up and just the sheer hint of puching for erksz vs for their future and if you look at the most popular orders by their customer base, you can see it was tesla, lucid and then avis budget you have an ev theme for the retail contingency >> i love how you come armed with stats thank you. we're turning to the broader markets now. mike >> clearly that process is underway, morgan a tluft activity was raise the question about whether things are starting to run too high

a couple of things to keep in mind was this is the season in the final two months but small caps tend to out perform nasdaq 100 it becomes pun pgsing. it's not always in a straight line up 8% from the lows tomorrow solar stocks up 23%. i think we saw a rise and foul but one take away is those peeked in many cases whether the first peek in the cloud stocks, first peek in spacs. the overall marked was not knocked off course usually the only time year-end seasonality fails in a big way is when credit markets are under

stress and the fed r really getting affect ahead of wrl the academy is ready so far financial conditions loose. and >> of course we're going to have to see what kind of commentary we get based on your comments now, i'm wondering how much stock buybacks are fuelling the increases as well. we're on pace for a record there's so many examples of boosted buyback i think if only psychologically. why? we talk about the record of stock buybacks this year, it's

2018, it was a much larger percentage and the market pointed at anything. it lends itself to the idea that it's really difficult to fight this wave of loogs gine angsal conditionsl and a fed who's perfect and these generate credit markets >> all right, mike, good set up for our next guest thank you. we're going to stick with the markets and fed relationship f randy, welcome back. always good to talk to you >> yep >> listening to what mike said about the foed being patient, it sunds like you think the word transitory dies today? >> i think it will be transitory

will finally go away i've been saying transitory, transitory for months on end i don't know what it will be i think transitory will move to the dust bin of history. >> someone pointed out that the awkward thing is rage growth has rocketed and it's unlikely many making money are going to be able to keep pace with that. if you think about the keyrisk,u it gets into people's expectations firms feel comfortable being able to pass that on this hasn't.

happened for 20 years. and will prokictivety growth be esnf the aumtmistic view is that will makeup for it. >> case in point deer and a number of workers yesterdayryjecting an offer that would have immediately increased their pay by 10% because i think they feel they have more leverage than that specific deal >> and in terms of the data the government is able to collect around the labor market, isterm alcomplete picture or -- obviously, the wage pressure on the one hand and the fact that a lot of folks are not in this economy and i

mean, how does that factor into the dual mandate for the fed right now? >> it's really tough because you have very high quit rate that suggest said people are willing to give up their jobs because they're so confident they can get a her waej elsewhere. so, that means there's a lot of pressure in the labor market its rrb kpakly the opposite. rirlt so strong jf terms are until to race them all the way through the whole spectrum and that means costs go up dramatically and 70/75% of your cost being labor related. workers know they have the upper

hand and are going to keep pressing >> you mngz -- mentioned labor. and we got disappointed on friday do you think there will be enough partis pagsz groegtd, given the prospect of antioral virals or the korsz korbz of the bandemic >> i think of the reduced labor force participation is from older workers who had gone inat the labor market in record numbers in the pars. they don't want to deal with it. there's too many risks i think eventually people will feel more comfortable but it's going to be a while. and i think, for the older workers, they want to stay healthy and i don't think they're coming back in this is a tough thing for the fed to deal with

>> we saw markets at record highs. we started with meme pockets and what i think log-term market participants will factor it into the market >> so, that's one of the key factors. people who want to be patient and say let's not move too quickly because we don't want to pull the rug out from under the recovery others saying my goodness, we're seeing high growth a hot labor market and high inflation. this liquidity is being manifested in high equity prices this is the time to taper. i'm sure there's been a bit of a good bait on how to do it but they're going to stick with their minutes. and a lot of them to start raising rates next year. >> we'll know in less than four hours.

always good to help us curtain raise on fed days. as we go to break, a roadmap for the rest of the hour, including the cdc making the decision to recommend pfizer's vaccine for kids and tom hanks saying no thanks to a trip to space? well, maybe. we've got so much more "squack on the street" ahead so don't go anywhere ♪ have a good time 'cause it's all right ♪ ♪ now listen to the beat ♪ ♪ kinda pat your feet ♪ ♪ it's all right ♪ ♪ have a good time 'cause it's all right ♪ ♪ oh, it's all right ♪

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welcome back to "squack on the street." >> after a six-hour long meeting, they voted overwhelmingly in favor of recommending the pfizer vaccine for ages 5 to 11 a unanimous vote proceeded by oo lot of testimonial about how much they believe it should be made available to kids just hours later, the cdc director adopted their recommendation, which made millions of kids eligible. the covid vaccines are the most intensively studied in terms of safety monitoring in u.s. history and that will continue as the kids' vaccine rolls out it will protect kids from covid

itself and help reduce disruptions to in-person learning and helping society, in general, get back to normal last night a hospital in hartford started as soon as the cdc gave the sign off. we're hearing about pharmacies opening to parents and school clinics being set up. vaccine data base not yet open for making appointments for kids we're hearing the big national roll out is going to gear up next week. and kids are already starting to get protected, guys. this is a game changer for the holiday season >> everyone is waiting on murk and yesterday this item crossed the tape on pfizer that an oral could be available this year, if authorized is it likely we may see competing orals in the months to come >> we're expecting data from pfizer from the first trial of

the oral antiviral by the end of the year and they gave an update, saying q4, which looks like it may be the next quarter we talked to pfizer's ceo later on exchange and he seemed confident about the end of next year we'll have to see what the process looks like and one coming up november 30 gtd. so, that's coming up as we go to break, look at shares of lemonade they roll out an auto insurance product in illinois. nearly 60% off the january high. still above the debut icofpre 50, when it went public last year

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welcome back it's time for the etf spotlight. ticker xlc up almost 20% alphabet, metta and netflix.

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good morning, everybody. here's your cnbc update at this hour a disappointing election night for democrats. the new jersey governor's race is still too close to call with 85% of the vote in incumbent democrat, phil murphy is ahead by just two-tenths of one percentage points. he had expected to win comfortably.

and terry mccallau conceded in his race against youngkin. the republican has a leadoff about two percentage points in a state president biden won by 10 points last year and in western australia, a 4-year-old girl has been rescued by police two years after she disappeared from the family's camping tin. police raided a suburban house and arrested a 36-year-old man >> it's wonderful day for this little girl and her loving family it was a really special day for western australia. and over the fact that we've been able to conduct this operation and we never gave up hope >> and on that note, you are up to date, carl. i'll send it back to you >> thank you very much let's get to our senior economics reporter on what to expect from the fed later on today.

morning, steve >> yeah, the federal reserve expected to announce it will start reducing, for the first time, some of the stimulus it's been providing to the economy since the pandemic market's going to listen to whether the fed might be more aggressive than they otherwise thought. the taper will be announced today. it will begin reducing the $120 billion of monthly purchases this month it will end up the whole program around may fed chair, jay powell, it's going to be his first press conference and pricing interest rate hikes. there's a 55% chance of a june rate hike. 66% in july. neather of the two summer months were in play september, november, december, a

certainty that they'll hike now. at least that's the way it's priced in the markets. stocks have risen so far, suggesting that one or two rate hikes not a huge challenge for earnings or growth the danger for markets is whether they express inflation is that would be a tougher fed response than is baked in. quote, we expect powell to sell an even-handed taper and the taper plan will give the fed optionality. that would be hawkish and buys time for the data to turn back in team transitory, which he said would be dovish and you know, fed officials have been shying away from that more and more and whether powell puts a time table around when inflation needs to drop back before the fed starts to act more aggressively i guess that goes to david

>> it does go to me, steve >> all to you. >> thank you, liesman. let's talk supply chain constraints. they're forcing food distributors operations. joining us is tony g to have you. first, give me a read on what you're seeing right now in terms of your ability to deliver what the markets want on the shelves or whether you're falling short in certain product areas >> thank you, david. we're seeing a trend from earlier this year. the manufacturers have been getting a supply in the market with flat performance over the last several months.

and about a third of our orders are not fulfilled overall. so, it has been a challenge and we're getting ready for the holidays now and it's still a trugal. >> a third. for that's a big percentage what are your expectations as we head to the holidays and what are the supermarkets, for example, doing to makeup for that or can they? >> great question. some things we learned last year for example, there are iemts we need to make sure we stock up on to get ready for the holidays. we don't always know what's not going to come in we have to think and plan in advance. >> tony, it's morgan you've been in this industry and focussed on the supply chain of food to some extent, for, it

seems like a number of years have you seen anything like this in terms of the supply chain dynamic playing out right now. and how would you expect this to continue to evolve >> not even close. so, this is a really unprecedented time the pandemic, when it hit a year and a half or so ago, threw a real destructive event in our society. and it's manifested in supply chain problems, not only from the pandemic but from people not sorting back in the workforce. labor is driving the inflation, the shortage of the labor of the solving and solving for the war for talent >> yeah. i mean, the labor piece is one we've been talking about regularly on our air and the role that vaccine and vaccine mandates, concerns

around covid have been playing too. what have you been doing, where your labor force is concerned? >> >> great question. we're rigorously encouraging folks to get vaccinated. and monetary was in a position where they keep themselves and their families safe. they have stocks short of mandating that for work. and we're also getting ready for the eps and what comes from that in time. it's not 100%. and there's risk for instantaneous mandate for folks to be vaccinated and tested. we're already struggling to find folks. >> i don't know. grocery stores might be a little immune from global shipping

dynamics but the drying is way down and global shipping rates are down like 45% in a month. does that tell us anything about the kind of pressures we're talking about? >> we're not immune. an interesting chain reaction from all of those things you wouldn't consider to come home to roost in a real grocery store in northern michigan so, all these things are woven together in the network and navigating that has been our chief challenge. of course, for our suppliers as well >> right you keep saying labor. if there was one area where you had the jobs, what would it be >> pressure is primarily on the front line jobs. we have a great many of them in our company. we're struggling to find a great

challenge for the grocery stores and for our warehouse. so, we have dialled up our game. we are increasing wages. and a significant increase in 2021 four to five years worth of increases. we've seen more than arising and they've provided folks to get here and as they adopted the pe people-first culture we train them and all those programs to keep people happy. so, i think employees will have to do all those things >> finally, tony, you have any advice for anyone heading to the thanksgiving season? buy it now if you see on the shelves.

any particular product >> buy early and often yes, absolutely. shopping trips, turkey, champagne, buy it now and buy tuagain later. >> good for business too appreciate your time >> that's every year malmars, i have to say. >> they keep making them smaller and smaller. >> it doesn't matter they're still good as we head to break, norwegian cruise line down about 1%. the company did say expects to be cash-flow positive, with 75% of capacity to begin and the llle tfu feto begin in april 2022 back in two. but so is your sou. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

it's fed decision day and market forecaster believes

central banks are in denial when it comes to inflation.

welcome back it "squack on the street." a report from the biden administration says congress should pass legislation, limiting stablecoins from banks. our nex guest says stablecoins could greatly benefit every day americans but a level playing field needs to be created. joining us is charles pa i want to get your thoughts on this hotly anticipated report and what it's going to mean for firms such as yours, where there's already regulation afoot. >> it's great to be back on. i do think this is a good step in the right direction i think it's just the first step there's a lot of more dilalogue

that needs to happen but clarity and consistency is ultimately what, i think, making stablecoin technology and changing how assets move you need regulation, clarity, to understand how to operate in the industry we've always been pushing that from the very beginning. we're the only stablecoin of any size with a regulator. we operate through the first bank trust of new york i think it will do a lot for being able to change what this means for people every day and how they use the technology. >> we talk about bitcoin and either and certainly you're seeing either at a record high again today. but stablecoins. and you have packs gold, backed by physical gold and you let companies issue their own brand as well.

how big could this business be, verses the more established, if you will, names in the cryptocurrency landscape >> i think an important way to break it down, which is there are native block chain assets like bitcoin or etherium and bitcoin is trying to be gold or reserve asset is and etherium is about being the programming layer. there's a lot more that needs to happen and then it's about how you take original assets and put them on the block chain rails so they can move around. 24/7, instantaneously, throw fees open to anybody, create a lot of inovation. and that's what putting dollars on a block chain is about. we're not exactly hour how that will look over time.

so many ways you can design dollars in a block chain and it won't be about just one person's way. for us, it's do you want to use one that exists? or maybe you want to create your own. we have customers working with us in both ways. it will be like that, not just for dollars but many assets and that will be exciting when you have any asset moving at the speed of the block chain, speed of the internet. >> i wonder what this means in terms of ripple effects by the broader currency as well talk about stablecoins backed by the u.s. dollar because there needs do be a reserve for the stablecoin to exist. we continue to see an explosion in this part of the crypto currency market, what does that do to the fs market?

>> how do you manage your reserves if you start managing with other securities, you look like a bank or mutual fund but really just cash and equivalence. you are very, very stable. and so, that's just a money market that's a government money market and you're backing it by real dollars. not commercial paper or buy corporate debt, where you can have corporate rate risk or credit risk. and you can transform the fx market so they're not moving in 9:00 to 5:00, five days a week hours. they're moving instantaneously anywhere

crypto trades in dollars that's where the need has been how can you have dollars move at the speed of crypto? soon it will be how can you have dollars and the rest of the world's assets move at the speed of the interimate? >> the long lasting proposition of bitcoin is it is restorative value and stablecoins will be the mainstream, adoptive mechanism for payments you're on board with that? >> i think that's right. it's going to come down the dollar being able to innovate and keep up with what we're seeing crypto is creating. having dollars moving 9:00 to 5:00 having high fees not really working for the average person 25 or 26% of adults are underbanked in the u.s that doesn't work. if the dollar doesn't keep up,

then i think bitcoin or other crypto can fill the hole it's about being a reserve asset, digital gold. but there are innovations that keep hanning there's the lighting network and that's creating competition. and the dollar needs to keep up too. if that's true, then everybody already uses it. >> coming up this morning on "tech check. allbirds making the debut on the nads dak we'll debate with the dean of valuations get a check of the markets the dow has cut its losses about in half. got the first interday high.

set to stay on strike after ejecting a second tentative deal and our seema mody has the

latest. >> john deere did come to the negotiating table offering an $8,500 bonus and better retirement benefits and wasn't enough for the 10,000 union workers that had been on strike demanding better pay john deere telling cnbc we're disappointed by the rejection of the agreement and frankly our paths forward are limited. but some labor experts pointing to deere stock and 100% rise in total compensation from 2019 to 2020 as justification for higher pay and a better deal for union workers. now, what's next, more meetings with the workers union to discuss options in the collective bargaining process. time is really of the essence as deere and other industrials battle a labor shortage, soaring agriculture prices and an infrastructure deal that is expected to bring in more business for a company like

deere. this is day 19 of the strike an strikes have usually lasted 30 to 70 days and the last demonstration back in 1976 lasted 160 days. the company is leaning on salaried employees to keep its plants and factories running analysts at barclay's this morning using geolocation data found that 10 are seeing, quote, lower activity no one on wall street right now, morgan, lowering price targets or earning estimates but because they're clearly under the impression that deere will give them a better deal we'll be watching this very closely. >> which is just fascinating to me because deere with a deal rejected yesterday expected to pay for the already sweetened negotiations the stock is down almost 5% right now. still up 25% year to date. it's interesting because we're talking about a very cyclical

business in general when we talk about agriculture and construction and the fact that the stock, i wonder how this plays out in earnings at the end of the month. >> when you were looking at shares of deere earlier this week, the expectation that this new deal would be signed and workers would agree to it and shares surge by as much as 6% and now today the opposite move shares down 5% on this idea that negotiations will have to continue and we'll see if they come back with a better deal, morgan >> seema, thank you. let's give you another check on some of those more volatile names that we have been following. bath still putting up strong numbers and zillow responding negatively and stopping the flipping business and avis down from the huge gains we saw yesterday and therare e the two memes still going strong we're back after this.

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>> is it true that you were asked to go to space by jeff bezos before william shatner >> yeah, provided i pay. and it costs like 28 million

bucks or something like that and i'm doing good, jimmy. i'm doing good but i'm not paying 28 bucks. >> that wastom hanks and jimmy kimmel last night responding to rumors that he was offered william shatner's seat before the star trek actor, i'm still kind of unclear from that exchange shatner at 90 years old became the oldest person to reach space on newshepard's second operational and crew flight. we're showing those images right there. i will say, though, david, that tom hanks since at least 2014 and we don't know whether he's actually given the ticket back or sold the ticket back, but he did have a seat on virgin galactic, which was valued at something like $200,000 when he purchased it perhaps he is still going to space, but just maybe with the rival company. >> and for a far lesser sum than he indicated he would have had somehow potentially had to pay of course "apollo 13."

he was great in that >> he was. he's always great. >> he looked great, too. i'm always marveled. shatner was incredible at 90 i couldn't get over the fact that he could tie his shoe by putting his leg up on his knee and hanks looks great, too >> commercial space flight and so-called space tourism is a much bigger part of the conversation in general. and i just say virgin galactic is up 1% that stock hammered over the past couple months >> that will do it for us. "techcheck" starts now. good wednesday morning welcome to "techcheck. i'm carli quintanilla nasdaq looks for the eighth straight day in the green.