strike, the company said there's no more bargaining to be done. it's thursday, november 4th, 2021, and "squawk box" conbegins right now. good morning, welcome to "squawk box" here on cnbc i'm andrew ross sorkin along with joe kernen becky is off today nice to see you, joe. >> i'm here for you. >> i'm here for you. we got a lot going on. post fed taper, a little -- i don't know if it's a real taper. feels like it's the beginning of a -- it's like the mini taper. we're going to -- what are are you going say, joe >> i thought it was the same too. we're really ending something. it's not that we're going to --

you're calling it starting to stop buying, which is a double negative. >> starting of the stopping. >> which means we're going to start doing less of what has been -- that's a lot of money every month, isn't it? that's a lot of money every month to buy stuff that has to be giving support to those assets which keeps yields down it has to be part of this mess, i think. >> it has to be. so it's surprising to me that the markets actually are not having a tantrum just yet. and the question is whether they will have -- >> a lot of good things happening in the real economy, rather than, you know -- the supply chain is a problem but we are eventually going to be -- h hopefully be back to normal. we have the kids getting it now. all the kids except aaron rodgers, apparently. >> apparently, yes he had a homeopathic remedy. >> i'm immunized

what does that mean? what do you use? you go to mexico for it? how do you get this newfangled -- i don't want a vaccine, i want -- i don't know. it's squeezed from a turnip or something, what is it? we shouldn't make fun of him, he's a great quarterback. >> major stock indexes hitting new records for a fourth straight session after the fed approves plans to start to taper its bond buying program. the s&p rose 30 points, nasdaq rose 62 points or 1% look at u.s. equity futures this morning. still in a muted territory here, dow off about 25 points nasdaq looking 60 points higher the s&p 500 looking like 3 points higher it's opening the yields, right now the 10 year standing at 1.572, joe.

developing last night. this was a -- i don't know whether you'd call it a fore gone conclusion but looks like it was headed this way the new jersey governor phil murphy avoiding murphy's law, didn't happen. he's projected to win his bid for re-election after a tight contest with challenger jack chit rely. he's the first incumbent democrat to win re-election in new jersey since 1977, which is weird. can you say john korzon, why would that be the case in such a blue state you get a good democrat in there, you wouldn't think it would be that hard to be re-elected chit relly hammered murphy in recent weeks, forcing murphy to say he's not going to raise taxes in the coming year but he ran adds saying if you're

a one-issue voter, and taxes are not your issue this is probably not your state i agree, who would say that. but if you say it once, that's enough democrats in new jersey hold an advantage of more than 1 million registered voters than republicans. and that's a big number. you know, we think about a lot of times how many people are in the country, you look down in virginia, talking about 75,000 votes out of, you know -- it's not like 50 million. it's two, three, four million. 75,000 was close even down there. >> close here. much closer than you would think for -- the polls the day before were double digit, close 9, 10 points something like that and it ended up being one point probably. >> right by the way, one of the issues i think in jersey was vaxx mandates let's talk about mandates in the

corporate world now because cnbc learned that ford will require u.s. salary employees to be vaccinated by december 8th or face unpaid leave. the auto maker sending a message about that mandate on tuesday. the company will consider religious and medical exemptions employees without an exemption will be put on unpaid leave for 30 days. and not sure what happens after that time. spokeswoman saying that ford is analyzing federal and collective bargaining environments for workers. >> another well known name in -- not really transportation but they make big, beautiful green machines an update on the strike at farm equipment maker deere. the company said it will not raise its offer to striking workers after a second vote to ratify a new contract earlier

this week failed the company says they've made the best and final offer in a six year contract that workers voted down by a margin of 55% to 45%. and here is ua member brian voorhees who's been with the company for 17 years and said he hoped the contract offer would be rejected. >> i didn't really talk to too many people but i got a vibe that a lot of people are staying strong and holding out for more. this may be our only chance for a long, long time to get anything we haven't really got anything significant in the last 20-some years. >> and deere said it's going to continue operating its plants with non-union employees and considering sourcing replacement parts and machinery from international plants. >> it's fascinating.

it's what's happening all over these days new this morning credit suisse says it will redo its stock positions. last year it had to freeze $10 billion in investment funds when a financing partner went b bankrupt the central mission will be catering to the rich with private banking, the investment banking will be remain intact but they'll exit most of the prime business servicing hedge funds and trades the bank reported a 21% decline in third quarter net profits and expects a loss in the fourth quarter. you're looking at that stock, up marginally on what is -- that's quite something, joe, to get out of that business, you know. >> yeah. >> i just think of the shifts at

credit suisse, the old first boston to me -- i'm aging myself but to think you're going to get out of what was the old wall street trading business and, working with hedge funds incredible. >> not what it used to be. that's for sure. all of those businesses. thinking about that, how much money under management do you need today to make money, do you think, as a -- in a retail business, does that business even exist at that point it used to be trading stocks used to be selling people municipal bonds but everything is zero seems like, everything is robinhood i guess it's probably assets under management. >> it's all sassets under management they're trying to follow james gordon, who pivoted that company. >> you know what we never talked

about. >> what's that >> barclays and jes staley. >> yes >> he was everywhere was there anyone in high places that doesn't have a picture -- not us, but anyone in high places that didn't have some type of relationship -- this guy had tent cals -- >> you're talking about epstein not staley. >> talking about epstein staley might have had wiede tentacles. >> he got around, talking about epstein, another guy that gets taken down in addition to what, three, four other ones, five maybe, ten. >> go down the list. wes wexler, people raised questions about bill gates and leon black. >> for some reason i don't think that -- i don't see leon cooperman running in those circles. maybe leon black.

>> leon black. we're going to talk about the tapers on the other side of this break. what you need to know as the fed begins the end -- the beginning of the end of that stimulus program and what it means for the markets and your money we'll talk about it next the ceo of etsy is going to talk earnings, supply chain issues and the holiday shopping season coming up at 7:15 eastern time this morning s" re watching "squawk box, livehot from the nasdaq market site in times square this morning. the pursuit is on. the pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility.

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welcome back to "squawk box" this morning the fed is going to begin tapering later this month. fed chair jay powell announcing the winding down of pandemic assistance at the committee meeting that happened on tuesday. for more on all of it, sarah bloom raskin, former deputy treasury secretary, she's now with the duke university law school, a cnbc contributor, i want to thank you for joining us your reaction to what mr. powell said yesterday is this too fast, too slow goldilocks, what do you think? >> chairman powell he said, and he said he would telegraph it. he said he would announce it he really gave markets i think a fair degree of warning you heard in the runup really to yesterday's decision, a number

of federal reserve governors and officials indicating that this was coming and indeed it came. so i think he delivered exactly what he said he would and when he would and i think that the reaction that was received in markets was, essentially, all that was expected >> but to the degree there's still questions about whether he should have done this before or perhaps even waited, you land where? >> well, it's interesting. i think he did it -- i think the timing was just as he indicated it would be. essentially you see now that there are really two sets of decisions. these were -- you know, this is the -- this is -- the taper decisions and the taper will begin in the month of november in this month. and it will proceed in a regularly-scheduled fashion. he is also, you know, discussing with the federal open market committee what comes next. and what comes next has not been

announced yet to markets and that is going to be the increased -- presumably the increase in the federal funds rate and when those increases should begin you see, of course, markets already timing in essentially when those -- when they believe those increases will occur, but the fed and the frc, of course, they play a delicate balance here with markets. they don't want to get too far ahead of them, but neither do they want to lag because when either of those things is out of kilter you have a real possibility that mistakes are made, particularly on the inflation side >> so the market gss are making their own forecast if you were whispering in his ear, what would you be telling him? >> this is not about me, what i would be whispering in his ear but what the federal open market committee looks at, they're looking at their dual mandate, their mandate regarding maximum

employment and in the context of price stability. and so, essentially they are keeping their eyes on the data, as the data emerges and data you know is not perfect so they have to look at a whole host of indicators to see if they're meeting their mark >> what do you think the market is, because i think there's been a major shift clearly with chairman powell in terms of focussing on employment. what does the employment picture have to look like, do you think for him to take his foot off that gas pedal >> he has indicated that he essentially wants to see, and they would need to see, more progress on the employment side. so essentially the federal open market committee looks at a host of labor market indicators, not just looking at the unemployment rate they are now looking at the labor market by sector they're looking at labor force participation. they're looking essentially at

wage growth. they're looking at demographic shifts so essentially they are looking at a host of different labor market indicators. and he is going to -- you know, and the omc is going to turn their attention to essentially whether those indicators are moving in the right direction to provide the conditions for liftoff. and so, essentially, that's going to -- you know, that's going to be a set of discussions that will continue over the next several months at the fomc >> what's the chance he still has the job in 2022? >> that i can't speculate on that's not for -- that is not for me but markets, you know, have the -- you know, people have their views. >> sarah, it's good to see you appreciate it. thank you. >> okay. good morning nice to be here. >> good to see you joe? coming up former chess world champion kasparov is blasting

facebook we have his comments as we head to break, check out shares of shoe maker allbirds, jumped 90% yesterday in the public market debut. the company priced shares at $15 a piece opened for trading at $21.21 and closed at 28 and change 'lbeig bk.

you're a one-man stitchwork master. but your staffing plan needs to go up a size. 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 former world chess champion gary kasparov is blasting facebook this morning speaking to cnbc at the web summit tech

conference in lisbon, kasparov said facebook was wrong to shutdown the facial recognition system he said it's bowing to the public outrage personally i think it's stupid for a simple reason. facebook can shut it down, the chinese will not he said he didn't think it made sense to block any technological feature that's available and shutting down that feature facebook said in a blog post, there were many concerns about the use of facial recognition technology in society. noting that regulators are in the process of providing rules to govern its use. you do that -- i do it on the phone, right to get in, put your code in anymore -- you ever have sunglasses on? it doesn't work. it must be in the eyes that must be important data points for my phone. >> can you wear them on the iphone >> it doesn't recognize me. >> you can do it. >> it doesn't recognize me

i was just laughing because there are times in the morning where i think it can't recognize me just because i look like i just got -- no that's not him and i kind of like have to -- because my face kind of looks like an unmade bed at times. >> it's supposed to work with your glasses on. it's supposed to >> it works, it works really well sometimes i -- and if you have a mask on, it doesn't work, obviously. so there's times that -- >> right. >> what's the most important feature? you think it's the eyes? >> for that to work, no, no. so what it's doing, it's a camera, but there's also effectively there's a laser on it that's mapping your face. >> i remember putting in my, and it went around like that and took me from all different angles i felt sorry for it it had to zoom in like that. sometimes in the morning it's

like, i don't know whether that's him tell me what you think of this one maybe you'll feel sorry for these folks or not an interesting debate, i imagine in palo alto but google apparently pursuing a major cloud contract with the pentagon this is three years after the employee rervolt according to reports the head of the company's cloud division has now met with the defense department on this process for bidding for the agreement. the three year contract would be split across multiple bidders and replace what is the ten year, $10 billion jedi cloud computing contract the question is whether google employees will protest again and what kind of influence they have if they do we've been talk about the powers of employees and activism going on inside the companies but also

what the role of corporations should be in america today and whether there's a patriotic duty, if you will, to do work like this statement their employees are raising civil liberty questions and other things. >> if you don't want fossil fuels, there's going to come a time you don't want weapons of war, too and i think we need both at least for a while till we all just start getting along. you know, hearing more and more about these hypersonic things that evade any of the defense systems we have right now. i'll tell you what i read. when i was thinking about the pentagon earlier does this strike you, andrew, a pentagon review of the pentagon drone strike in kabul concluded that they didn't do anything wrong. a pentagon review of the pentagon we're good we're fine it just seemed weird to me wouldn't you get somebody else

maybe to look at what happened instead of -- they found that -- >> well, i agree and disagree. do you really want to have an outside auditor of the pentagon? that's complicated too. >> you're right. well, unfortunately, you can't bring back the civilian casualties that happened, but it was heartbreaking. a lot of kids. i think seven. >> that's absolutely true. absolutely true. >> horrible. coming up we'll take you live to washington where democrats are still negotiating president biden's social spending plan. we'll have the latest next as we head to break, a look at yesterday's s&p 500 winners and losers hey businesses! you all deserve something epic!

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good morning, and welcome back to "squawk box" live from

the nasdaq market site in times square checking the futures you can see the dow is one of the only indices we have on the board that's down. nasdaq is strong and the s&p up about 4 we were down for part of the pre-market session most of it yesterday, or at least mixed and then following the statements from jay powell, we did see new records in, i think, all three of those qualcomm shares are rising earnings of $2.55 a share beat estimates of $2.26 revenues also above, driven by a 56% increase in smart phone chip sales. all this amid the global chip shortage their current sales forecast top analysts estimates as well the company ceo going to be on "squawk on the street" at 9:00 a.m. eastern roku shares are trading lower but pairing some of the losses we saw yesterday overnight it was more than 10%

the company's third quarter earns of 48 cents a share beat estimates of 6 cents p and revenue up 51% from a year earlier but that was below expectations and then the company reported a slow down in new active accounts added in the quarter. player revenue that include it is company's streaming devices fell 26% as well and costs went up because of supply chain issues. in the shareholder letter, roku said it expects the disruptions of the supply chain to continue into 2022. and impact product pricing, availability and advertising during the holiday season. >> okay. meantime, let's get an update on the democrats' social spending plan still a work in progress at this point. now it appears paid leave back on the table we'll go to washington d.c. where ylan mui joins us with the latest good morning.

>> reporter: good morning. paid leave is back in democrats' social spending package after pressure from activists and well known company. the updated text was released yesterday and it includes four weeks of paid family or medical leave, estimated to cost about $200 billion starting in 2024. the women's caucus said the proposal is critical to ensuring millions of women can address their care needs and return to the workforce adding billions of dollars to our economy businesses large and small joined in the effort as well to restore paid leave, some of the big names include diageo, stitch fix, pinterest and sales force these benefits can help businesses attract workers in a tight labor market >> i think a lot about how do we show up for employees and how do we make sure we are addressing mental, physical, emotional needs, and putting in policies

can give employees that sense of security and comfort that the company that you're working at, working with, working for, is thinking about you hole list cli as a person. >> this proposal does not have the blessing of senator joe manchin who has called it a challenge. even though the house wants to vote on the bill by the end of the week, there are still some hurdles in the senate. back over to you >> shall i ask you to handicap it i've been asking that for weeks now and it's hard to begin to know what's about to happen here >> reporter: yeah. i think that the reconciliation package, the social spending package, those negotiations likely drag out if not through thanksgiving perhaps through christmas. the infrastructure bill my bet would be there's pressure to decouple of that vote and for the house to vote on that and send it to the president's desk. but clearly there is a movement in the house not to wait on the senate for this broader package

and not to what they're calling preconference make sure everything is agreed to but they bring it to the floor because they're feeling a lot of pressure after the virginia, new jersey elections to get something done. >> when you say there's this pressure, what does that feel like on the ground when you talk to folks when they look at the glen youngkin in, what's the takeaway do you feel there's a sense they got a move now >> i think the biggest sense is that they should have done something earlier. now they're playing catch up, what can they do to make up for the fact they didn't move earlier? president biden himself said they should have voted on some of this package before the election maybe that could have made a difference we heard it as well from senator tim kaine -- >> you're suggesting the takeaway that they're taking away from this is more about the inaction as opposed to the underlying policy? that's what i was trying to understand in terms of the

lesson -- to the extent there's a lesson in this being absorbed? >> reporter: i think that there is a political desire for a win to make up for the loss in virginia and so that is why you're seeing this presh sure for action. in terms of policy right now it feels like spaghetti against the wall that's the deeper debate they have to have ahead of the midterms but they want a win. >> both sides have different viewpoints i don't know if you were a republican, as i say and i wink, if i were a republican, i don't know if i'd dissuade the democrats from saying you're right you didn't do enough because the journal comes right out and says that democrats are reeling from an election that repudiated the progressive agenda nationwide not that they didn't double down on it which is what we're seeing the far left say this is what i wanted to bring

up the way the journal characterizes the family leave going back in, journal says sure enough speaker nancy pelosi is still plowing ahead to pass the $4 trillion tax and spending bill and she's even sneering at senator joe manchin by restoring a paid family leave entitlement that manchin has expressly rejected and i saw -- i actually saw senator manchin last night it was a very good interview on another network, obviously not obviously but it just happened to be and he's -- i would say he's -- he was humble but he certainly has not been less -- i think he's been embolden to some extent that he's bb right. he's not going to back down on family leave this is going to come back out why put it in? to say i'm listening to you? it's not going to pass muster. >> reporter: this is the division between the house and senate we talked about the division between progressives and

moderates. the house and senate are having their own interparty fight as well i'm not going to weigh in on should they have gone bigger or smaller, right, that is the debate democrats are going to have but i will say it's clear the democrats don't have direction in this and the president's visit to capitol hill didn't offer any clarity on that. so democrats are looking for some leadership in trying to decide which way to go and they're not getting that direction right now from the white house and they're trying to find it internally and they can't settle on which way to go. they need a clear message and direction, and that's been one of the problems with the bill to begin with. >> that's what i'm saying. republicans saying, yeah, yeah, go for it. keep doing it because there's another election in a year thank you, we appreciate it. coming up we'll talk about the wild moves in some stocks like avis and bed, bath and beyond and what could be driving the action if it's options, is the dog being wagged by its tail

later don't miss the interview with domino's ceo pete allison and you can watch or listen to us any time on the cnbc app.

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the e recent explosion in retail options trading appears to be driving some of the exaggerated moves that we've seen in some of these stocks the moves appear not i entirely to be part of the short squeeze and the meme phenomenon and reddit, but maybe also something to do with options take a look at one week charts of avis and bed, bath and beyond avis jumping about 70%, bed, bath and beyond surged more than 70% in afterhours trading on tuesday. still up 37% and even a chart of tesla from last week when it joined the trillion dollar club shows a 33% jump for more we're joined by gunja and jj kinhan. you're well suited to this

discussion you have written about options extensively, i introed the segment by saying, i get it, but -- i used to be in that business, it's always been the tail wagging the dog when you see the underlying stock move and what's happening but that's not what's supposed to be going on options are effective in doing a lot of things but they're supposed to be based on the underlying stock the option itself and activity there isn't supposed to dictate a tripling of the underlying shares that seems like there's something amiss and maybe too much money around or someone is gaming the system. >> i mean, what a wild year, as you pointed out, options have just exploded in popularity over the past year and retail investors seem to be driving the surge. it does seem like at several points over the past year, it has been the tail wagging the dog particularly in some of the

smaller stocks i will say that's not always the case and this week traders told me, with avis, for example, it seemed to be more liquidity and short covering driving the loop higher than the tail wagging the dog, though has has been the case several points in the past year, like tesla >> someone decides tesla goes through $1,000, someone buys the $2,000 call and suddenly the underlying tesla shares are affected by someone going out $1,000 on the strike price why should that make sense that the underlying stock goes up because someone buys an out of the money call double where the already highly appreciated stock is already trading, why does that make sense? >> first, how wild is that, right. that's what i saw in the market yesterday when tesla was trading around $1,200, already

significantly up this year traders were eyeing the $2,000 calls and making these aggressive bullish bets on tesla. but where the options activity can play a role in the stock let's say i'm a retail investor, i'm buying that $2,000 call, there's likely a professional trader on the other side of that trade and they need to hedge their exposure that's where traders say the option activity can exacerbate these moves higher >> i remember in -- it's other people's money but i can remember selling naked calls and puts, i guess that's a naked straddle which i don't know if i can say that anymore, but i used to do that, you know, sell s&p sell the call, s&p sell the put. take in a huge premium and a month later a lot of times it would close where it was, the s&p. if you got caught short on the call side of things your risk is unlimited. does that explain it

people selling the calls need to hedge their risk >> there's a lot in what you're saying there first of all, yes. market makers absolutely having been one for 21 years you absolutely always want to hedge when you sell calls they have delta that shows how much they should move you want to hedge that risk. most market makers make that money in volatility moves not necessarily movement of the stock back and forth so they want to hedge that risk as much as possible. the $2,000 call is something so far out of the money, the market makers hedging that, there has to be something on the other side of the stock which is most likely not retail. retail traders are trading options more than they have. they're also participating in education more than they have, which is important part of that. but one thing i would also say is what are retail traders great at that's managing limited capital.

as you know, having been in the business when you're trading as a professional, you don't often think about the amount of capital you have to trade with retail traders have to keep that in mind all the time because theirs are so limited. when they go into some of these they go in because yes, you look at tesla, trading over $1,200, about $1,220, well, most people if they want to buy 100 shares or a round lot can't afford to do that because it's too big a proportion of their account. so what do they do they may go buy an out of the money call or at the money call, which november expiration in a couple weeks is $70. the bigger difference is by doing that they're defining their risk if i look at a tesla move out that far, the tesla move out that far, the implied move is $178, that's a one standard deviation move most people don't have the stomach for that, so

buying calls upfront, yes, everyone to your point it's not necessarily how the market was designed to work but what i do like is when people wanted to define their risk upfront and that makes a lot of sense for most retail traders. >> all right i had another question but we are in the weeds but that's okay. what time is it -- it's okay we have three hours. this is interesting. and there are people that -- so when you're getting squeezed and you're short a call, joe, i think you deal with covering the call, you wouldn't have to mess around with -- if you're really squeezed you have to buy back the call, you don't have to play around with the -- i still don't see why the underlying stock could -- let's talk about that next time. can we do that go ahead >> real quick. if i -- if i buy ten at the money calls, the market maker sells me ten at the money calls

he is short 500 shares, has to go out and buy 500 shares in order to hedge so think about that. >> i'm talking 800 points out of the money. just cover the call. >> it's not just retail driving it, joe p p it's professionals also driving that. that's the fine line. >> we don't know whether he's joe or jj kinhan. >> which one do you want today, joe? >> okay. jj thanks the newly crowned contributor. we'll see you again soon andrew coming up right after this break. american, southwest, spirit airlines all canceling thousands of flights in the past few months will the holiday travel season be ruined we'll talk to ryanair cfo about the return of the consumer demand and more. squawk coming right back after this

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. american airlines forced to scrub over 1,900 flights due to weather and staffing problems and there could be more turbulence ahead for airline passenger this is holiday season for more let's bring in europe's largest airline with 240 destinations, thanks neil sorohan for joining us >> the weather. >> in terms of weather, i also, whenever there is a big delay that i'm on, they also talk about just air traffic congestion and problems. so you do hear those thrown around a lot do you believe american, was that what what was weather? 1,900 flights? they have been doing this a while. you don't always see that was there something else in your view >> from time to time there can be weather with atc. we're hearing stories about

labor issues and overinflation, not seeing that in europe. but there can be major weather events from time to time >> but you have fuel issues and inflation perhaps issues in terms of jet fuel, but you are not having the labor issues. why? or are you i'll ask you that. >> no, even on the fuel side, joe, we're very well hedged. we're about 70% hedged fy-82, the first half of '23 for attractive levels, these will be the market on the labor side we got a thousand cadets being trained on an annualized basis we have the captains next year, we have no one is leaving ryan ampl we're the number one carrier in europe and are very keen to work for us. even onen the cabin view side,

we took a view if spring we would stop ahead of summer that proved to be a good decision we had a lot of standby cover. our own time performance was running over 90% we carried 11.3 million customers in october at a lone factor of 80%, our fleece is more or less fully operational at this point in time and we expect to get back to a growth into next year, where we grow to 165 million guests from 100 million this year. >> so what happened over here, are you over there the you are a cfo of a major airline. you are up whating your peer over here in the united states what happened? what's going on over here, bottom line, neil? >> well, there seems to be a problem with getting people to come to work there is inflation problems and pilots were furloughed, captain

and crew furloughed, didn't get back as early as they should v. every aircraft flew, every pilot went through a sim check, get their line check, get their flying that meant that we came back strongly but airline that didn't do that in europe and over here have had operational difficulties getting people back on the line and keeping them onthe line. >> do you think it's a fair debate for u.s. taxpayers to be upset about this there were specific grants and bailouts for the airlines that bring heejd them over the others part of the rational is they were going to be up and running. here we are. it's not happening >> i think one summer doesn't make a summer. it was a bad weekend throughout the pandemic, i was impressed how flying was happening here in the u.s. they come back relatively

quickly the longer haul was taken longer to open up. there will be some problems and the early expectations out west with the airlines over here, we'll deal with those issues as they arise there will be weather events, atc events if fairness, you have well run airlines over here in the u.s. >> we appreciate you joining us. >> good-bye. coming up, we got two big hours in the sky syantime, big ceo reviews is, et, dominos and take-two interactive all on deck. we're back after this. >>

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visit indeed.com/hire , welcome back to "squawk box. oh, the stock futures are muted after major records found fed chair j. powell's comments a breakdown. what it says and what it means straight ahead could a tax break be on the table? a new pro elf to lift the salt gap could mean big tax breaks for some let the bargaining chips fly when it comes to getting the president's spending plan in congress. aurora is set to make a public debut we will talk about technology

and supply chain issues in america and so much more when the second hour of "squawk box." begins right now >> okay. good morning, welcome back to "squawk box. it's already thursday on cnbc live from the nasdaq market site in time's square i have breakfast it seems like every hour recently, andrew, i'm joe kernon along with andrew ross sorkin. becky is off today time is flying, you admit that, do you not >> flying. busy >> yes, time flies when you are having fun does that apply? >> i hope so >> today is really going fast. u.s. equity futures, hopefully, people at home are not out of

their mind the s&p and nasdaq and the do you down fractionally. but new records set yesterday. has it been the most telegraphed tapering in the history of the world? probably the economy is strong. the interest rates are so slow, so low so i mean maybe it's not, think about it, andrea, if you were knowing where inflation s. if you were trying to keep your dollars purchasing value, can you imagine buying any fixed income or putting anything in these low yield -- >> you have to buy stocks. that's why you got to buy stocks, who is going to sit there at 5% inflation in a 1.5% piece of paper or money market right? go buy an nft. >> this is the ray dalio

strapped on cash argument. >> i love those apes they're angry apes what are they bored apes >> bored apes? >> the bored apes are different than the amc apes. have i got that right? >> very different. very different one has diamond hands, one is just bored okay you can't by an e sf t on an amc ape. >> i'm sure you can. >> i be buy one and give it to the jim for christmas. he loves those guys. >> here's what's going on, guys. oil prices are something to keep an eye on, opec and its allies are meeting today. they're not expected to lift oil productions, prices remain multi-year highs the price of crude doubled in the past 12 months was right now wti crude is at 82.20.

meantime, farm equipment maker deer is warning striking workers, they're not getting a better contract offer. it's not coming. workers are down, a proposed six-year deal earlier this week a. second time a strike continues after kellogg workers revise a contract worker that strike is nearly a-month-old. meantime, nintendo is cutting its sales for a switch gaming consol, yet another product in the upgaming version last month. supplies remain tight in many markets, joe >> let's get to dom. dom chu for a look at stocks to watch. we talked roku and quality koym earlier, but you always bring more color for what's going on. >> first of all, let me say, i always have fun with you guys in the morning, so time always

flies. >> i rest my case. >> there you go. all right. let's talk about those movers. first off, we will start off, joe, with an earnings mover from this morning regeneron shares are up 2% the drug maker better than profits thanks to two drug franchises in particular they treat regenerative eye disease ands ath that respectively they have the covid-19 treatments regeneron up 38% on a year-to-date bafts also, you mentioned the roku discussion roku shares, yes, it was a mixed report have you certain issues with regard to profits, better than expected for sure. and the company makes comments like many others have during this earnings season with regard to the global supply chain first of all, it's not just its global products.

but tv sets aren't selling as much, they're not making as many of them. so the whole supply chain is having ripple effects not just manufacturers of computer chips but everybody down share as well roku is down, it's neg live down 12% on a year-to-date basis. qua qualcomm might be seeing easing a bit. qualcomm offering an upbeat outlook indicating perhaps we could see an easing of those supply chain restraints in the next years or whatever qualcomm comes out with a better outlook. all of these things put together, it's a mixed picture where it was pointed all one way with supply chains maybe it does signal for a lot of companies the supply chain issues will resolve themselves

in the next two, three, four quarters >> okay. some time in the next year >> that means the stockmarket might discount them today. >> exactly nine month that was always what we zee said okay, dom, dom chu, thanks have you heard of a sneaky vampire, sorkin? >> fft >> yes >> i am unfamiliar i will google sneaky vampire >> syndicate that's from the same artist. >> some are pretty cool. the holidays are a-coming. i haven't decided what to get you yes. >> what's the cheapest board ape? >> i don't know. i think we're looking. i'm not sure what the price tag

on these is. >> you can get me a sneaky vampire for about 2700 bucks right now. what do you think? >> elooked at them they're pretty cool. what am i going to do with this? >> i would see all vampires, it sounds redundant nobody says vampire? they all sneak around, they come out at night it seems like, that's why i guess i thought of sneaky vampires you need to be pretty sneaky someone will put a stake in your heart. >> not so sneaky this time now they're saying they will begin tapering at the pace of the asset purse later this month, pulling back in providing the markets and the economy their own sneaky vampire, steve leishman joins us with the latest. he got a chance to ask us some questions. steve. >> i thought i was going to get tagged in that conversation.

it's pulling back and pulling back slowly. the federal reserve took its firststeps towards the emergency measures policy, announcing at the meeting, it will be reducing $120 billion of monthly qe asset purchases taper will begin this month, $15 billion monthly in december as well 10ol 10 billion of treasuries is expected to continue in the coming months, the federal reserve said it said the amount of taper can be adjusted if the economic outlook changes. left interest rates unchanged, but fed chair j. powell the taper will put it in place to adjust policy if needed. >> we see higher inflation for such thing we have to be in position to address that risk should it become really a threat -- should create a threat of more consistent long-term inflation

that's what we think our policy is doing now. >> it was powell's first press conference, just dramatically pricing in markets the fed future markets powell neither pushed back or pushed against or book in favor of where the market is priced. he said the fed wasn't thinking the of raising interest rates right now. whatever he said the market has a slightly more aggressive outlook on rate. june is trading above the 55% volatility it had been below that mark before the meeting now a 69% chance of a second hike by december you can see that on the right side of the screen there powell announced higher inflation than he is comfortable w. he said, we're larger and more persistent than expected. the fed stuck to its guns and expect it to come down once those bottlenecks comes up and the fed will use its tools to

adjust the problem andrew, you know what those tools are? >> i do. are you of the view the fed the i want is late to the game >> i am. i've always been in favor of, you know, i'm sort of a guy if favor of get figure fast when there is an issue for the economy and the fed did that but i think there needs to be symmetry on the other side they didn't do it 9/11 or after 2008 i guess they're playing the music. i guess it should get out more quickly take back emergency rate cuts and take back emergency qe more quickly than it has >> next question, employment, what's the number to watch on the employment side to try to understand what j. powell is thinking >> i mean, it's very clear, we want to see people coming back into the work force. powell may be changing his view on what the right measure is

you know, he said let's get back to february 2020 it may be that he comes to the common collusion, we have to get back to where we were. we to think of a job market for people that necessarily won't come back. that's one thing we will be watching tomorrow. >> steve leishman, thank you, sir. coming up, news of moderna we will have details plus, ecommerce etsy, shares are down sling after the fourth quarter guidance fell short of expectations we will speak to the ceo next. "squawk box." is coming right back they guide me with achievable steps that give me confidence. this is my granddaughter...she's cute like her grandpa. voya doesn't just help me get to retirement... ...they're with me all the way through it. come on, grandpa! later. got grandpa things to do.

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breaking news on moderna shares after the company cut the full year sales forecast between 15 and 18 billion. that's down from a previous outlook of 20 billion, moderna is dealing with vaccine production struggles the company reporting third quarter results with earnings and revenue falling short, it's a heck of a run. but that is a 10% haircut just in the bling of an eye since i came out, andrew >> joe, do you think we are, the market is trying to say that the pandemic is over and i say that because you look

at so many of the different companies that had success during the pandemic. you look at the stocks, moderna obviously being one of them. we will talk about etsy in a moment robinhood, you can see that lower and even at roku, which is lower. is there something -- even penn national is lower. is there something happening here >> you are trying to set me up because you know for me it's been over for months for me. i have been out and about. i don't wear a message -- you should see the ipos. i've got thousands of people around here. so -- >> no, no, do we believe the markets are now saying that this is -- that all of the quote/unquote pandemic plays don't have -- >> played out. >> -- the same kind of juice that they used to? >> i almost brought up bill maur i know you have been on his show

a lot. he basically, when you lose bill mahr, i think are you right, andrew, what if you factor in the discounting mechanism of the stockmarket, too so, you know, the stocks you would expect before it becomes completely apparent to everyone that we need to move on, the stocks have probably peaked long before that, in that respect >> that's a number one theme playing on the markets still, i think there are currently health issues around the country that haven't resolved yet >> or they may never get resolved >> exactly >> if it's endemic, there will be covid next year, we will read about people that test positive for covid, if it's endemic gottlieb thinks. we will talk to him later. meantime, let's talk a bit about etsy, they reported third quarter results that beat on the

top and bottom line. ref you? lower than some analysts expected the ceo of etsy, it's great to see you we have been talking about sort of what's happening both in the marketplace and the real economy. are you seeing it in both your results, which were very positive of course, the market thinking in the future we are getting better than maybe you think. what is happening? >> etsy had a remarkable third quarter and gave a guide for the fourth quarter that we think is extremely robust so we feel great about our fourth quarter guide let's remember the moment in time we're in. the fourth quarter of etsy last year, we grew 111% in the fourth quarter of 2020. and remember what the fourth quarter felt like? it was pretty awful for most people in the world, covid cases were skyrocketing, covid cases were skyrocketing. the world was in lockdown.

so people had very few choices in that moment, they turned to etsy etsy was one of the few places you can buy online, add to that stimulus and people buying masks, the whole conversation since then has been once the world reopened, how much of that will you lose? how much of that will you give up that was a fair thing to ask >> here we are entering the fourth quarter of 2021, people have multitudes more choice. they're moving all around and shopping anywhere they want. mask sales are immaterial to etsy there is no stimulus and we're guiding that we're going to be significantly up over fourth quarter of last year that's a result that very few people would have predicted as recently as a few months ago in fact, our guide at the mid-point says that we're going to grow in the fourth quarter 146% over wherewe were in the fourth quarter of 2019 before the pandemic so what it shows is, people had to turn to etsy over the past

year they are choosing to come back even more as we move forward we think that's, frankly, remarkable >> and that is what people talk about the akcceleration of these businesses it goes to this idea of how much was put forward, how much branding and awareness have you gained during this period so it's sustainable long term i think that's the question that investors are asking this morning. >> that's right. we had a lot of good news in our earnings forecast about that for example, gross merchandise sales per active buyer is up 20% year over year in the third quarter. again, in a quarter when stores are opened and people are able to shop very much like they were shopping before the pandemic we shared a lot about our cohort data there were questions about this new cohorts we got during the pandemic and how these are people that had to turn to etsy. so what is it like as the stores reopened in fact, the new cohorts have

joined etsy over the past year are performing better than cohorts we were requiring historically so we're incredibly encouraged about our ability to maintain and grow on top of the gains we've made over the past year. >> what are you hearing from your sellers when it comes to supply chain issues, costs and margin >> i think this again highlights the benefit of the etsy model. so the vast majority of our sellers sourced locally, 93% within their own country in the u.s., it's hyper local. 47% of our sellers source within our own state. our research among sellers say they are less concerned about supply chains than last year most of them, the semi chain is down the street plus two hands making add to that the fact that there is a huge abundance of variety on etsy. there is over 100 million thing for seam so in the last two weeks, what we saw was that the majority of

our searches had over 1,000 items, over half of the searches on etsy, there were 1,000 search results and 95% of searches on etsy had more than 100 search results. so in the rare instance when one seller may be out of stock, there are many sellers there so we do think etsy is quite resilient. >> how concerned are you on the over selling of etsy on the amazon platform? >> one of the ways to have loyalty is to have them sell on amazon other marketplaces are just going to go and list their items with a small thumbnail and a price next to a whole bunch of things that are mass manufactured it's incredibly hard for them to compete. but on etsy, they get a chance to tell their story, tell how this item is made just for the buyer. how it can be personalized and customized

they're facing buyers who genuinely want to buy directly from the seller. so etsy gives them a chance to compete on a level playing ground, where they don't find that anywhere else. >> finally, i was going to ask you about advertising, digital advertising, obviously, facebook, snap, others have big issues in terms of reaching the consumer in the way they used to, given changes around privacy with apple where are you seeing this spend right now? >> there is a lot more spend going to google right now. people are talking about their product listing, ad prices going up etsy is so long tail we're buying things that are so scarce that bereally haven't seen a lot of price pressure and our performance marking continues to perform really well, in fact, the third quarter came in a lot higher on margins than we or a lot of people expected, because we pulled back on a lot of our marketing in order to test incrementality to test the extra return we are

getting from that marketing. we were really pleased our organic traffic stayed strong. the q3 results were really strong on the top line, in spite of us actually pulling back on marketing. now in the fourth quarter, we're certainly going to be marking. we'll be loud. you will remind people of how etsy is different. it created an emotional connection this is exactly the right time for us to be telling our story. >> josh. so looking forward to seeing you soon >> thank you coming up, aurora making its debut on the nasdaq today. we will speak to co-founder and ceo and check out electric vehicles yesterday, allbirds stock soared in it trading debut. we're coming right back. turn now to today's aflac trivia question.

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public debut and became the biggest software ipo ever? the answer, snowflake the company sold 28 million shares and raised nearly $3.4 billion, easily topping the 2007 ipo of vmware, which raised nearly $1 billion. coming up, another big day here at the nasdaq we're talking electric cars, self guided technology, phil le beau has a preview to what's next joe, we're talking aurora, one of the godfathers if you will when it comes to self driving vehicle technology, he goes all the way back to the beginning. well, he's the ceo and founder 'ltahis company. wel lk to him exclusively when "squawk box." returns when "squawk box." returns >>

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. welcome back to "squawk" this morning self driving car company aurora began trading today as a spac merger phil le beau joins us. >> let's bring in the founder and ceo of aurora, a company he

started in 20s 17 going public today. a big day for you, chris let's talk a bit about your company and a business plan. i think some people look at self driving vehicles autonomous vehicles and the technology behind it and say, you will sell the whole kit and caboodle to a trucking company, or some type of company that's it. you believe it's subscription as a service, driving as a service that will be the key to the future explain that a little bit. >> that's right, phil, thanks for having me on as we build aurora, we're building the aurora driver it's a combination that lets vehicles drive themselves. we will be delivering them it's a driver as a service model. you will order a vehicle from one of our partners. you will take that vehicle, operate your business and pay us a fee to drive it for you much like we do today

>> you are working with a lot of movers, fed-ex, initially, when you have somebody who is going to have your technology in their vehicles, how often do you think or ba percentage do you think you will be using autonomous versus saying, you know what, maybe we're in an area that's a little tricky. maybe we're pulling into a shipping yard. that's where our driver will take control what itself the percentage breakdown as you envision right now? >> when the aurora comes to mark, it will take the truck from a terminal, drive it on the roads to get it on the freeway, drag it a few hundred miles, pull off, into a terminal. that whole trip will be done with the aurora driver behind the wheel. today we're doing this with partners like fed-ex, we're in texas. we're pulling loads between dallas and houston and doing this almost completely autonomous already so we're looking forward to

getting into that commercialization phase. >> am i correct? you believe trucking is where this technology, i say this technology, autonomous drive technology likely takes hold a little faster than for you and i getting into a commercial vehicle or a car and driving around autonomously? >> that's right. so we will be reading basically all day and all night the headlines about the supply chain crunch this has brought to focus acutely the challenges and fragility for decades. it's not news that we need truck drivers. 60-to-80,000 short today, it will be 100,000 short by the end of the decade. the supply chain will help the american economy to boom >> but are these vehicles at this point, let's talk about fed-ex, there is a safety driver in the cab of the truck that is

going between dallas and houston. when do you envision that there is nobody in the cab, that it is fully autonomous >> that's right. so today we have vehicle operators in there the vast majority of the time, they're not touching the wheel the truck is driving itself. the aurora driver is driving it. over the next couple of years ago we will be filming out a safety case, anargument and a justification of why we think it's safe to have the driver on the road that will have a combination of the functional safety, making sure when something breaks, we handle that. the operational safety, which is making sure we have the controls and the culture in place, so if we see something, we say something and address it what they call the safety of the intended function. so this is when it's driving properly and normally that it drives in a safe way so that safety case is something we will build over the next two years. looking to launch the product at the end of '23 without operators. >> you are talking the end of '23. let's be honest, over the last

year, year-and-a-half, increasingly people in the transportation industry are saying a level 3, to level 4, level 5 autonomous vehicle, that's when there is nobody in the vehicle. you don't have to have a driver, that that solving that question is becoming quicker and quicker. you honestly think you will have fully autonomous vehicles on the road by the end of '23 >> i think this is one of the things happening in the industry over the last call it four, five years, there has been a lot more people excited and haven't had the depth of the experience some of us have in the space. i've had the privilege of working this area 17 years we understand the complexity of the problem. that's part of why we founded aurora they understood where the dead ends were. they were building self driving 2.0 of the company, urnsing how we deliver to get past the demonstration phase into something commercialized and

scalable yes, with redoing everything we can and are hitting that hard into the '23 dates >> chris, you mentioned being in the industry 17 years. i'm not sure you remember i came out to california well over a decade or 13 or 14 years ago, i said, let me show you something. the look on my face probably amused you i was thinking, wow, there is nobody driving this vehicle. you came along since then. i am interested to seeing what holds four a huge day, thank you very much. i know you have a big day in front of you with aurora, the ipo is listing on the fax. andrew, joe, i'll send it back to you guys. i have to stress to you, when you talk to people in the industry, you say, who were the people at the beginning who were saying this is the vision. this is one of those people, that's why this ipo is interest being so heavily anticipated >> well, that's excellent. thank you, appreciate that,

phil the nasdaq is jumping again, which is happening more and more, which is good to see it wasn't like this a year ago can i tell you that. coming up, house democrats proposing to increase the federal salt deduction to 72,500 according to released now by the rules committee. at this time latest bargaining chip in washington from president biden's social spending program, the latest proposal next. and a reminder, you can always watch us live on the go on the cnbc app. we'll be right back. in 2016, i was working at the amazon warehouse when my brother passed away. and a couple of years later, my mother passed away. after taking care of them, i knew that i really wanted to become a nurse. amazon helped me with training and tuition. today, i'm a medical assistant and i'm studying to become a registered nurse.

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house democrats have proposed lifting the federal state and local taxes deduction cap. it's a bargaining chip in the ongoing debate over the nearly $2 trillion spending package a lot more than that anyway, according to a draft of the bill released by the rules committee and robert frank has more hey, robert. >> goosh, joe, now we have dualing proposal on changing that salt plan it called for raising the cap to $72,500 for ten years. the plan will cost about $300 billion over a decade in lost revenue with two-thirds going to those making more than $250,000

a year but the cost of those tax cuts would be offset at least on paper by sending the higher caps through 2031 right now, it's expected to cap in 2025 under currents laws. one of the bizarre rules of congress am accounting that makes it budget neutral the senate on the other hand coming one its own plan, senator bernie sanders calling it an earlier house plan to completely eliminate the cap absurd and hypocritical they offer a new plan to eliminate the cap only for households with incomes under $400,000 a year. those making more than that would still will subject to the $10,000 cap indefinitely like the house plan, the senate plan would be revenue neutral. menendez says his plan would fully exempt 98% of new jersey

taxpayers. joe. >> that's a change dance to watch, robert, so many strange bed follows. i was going to kid around with you and say why don't you shut your trap, robert, let this happen please you know why, i live in new jersey it's like i get a twitter, oh, are you a fat cat. you got all those tax cuts it's a 2017 tax plan. that was a major deal for people in new york and new jersey that's why democrats, josh dothaimer is a moderate, but to be so vociferous and try dent and adamant about really wanting to do something that benefits the 1% 80% of the benefits go to 1% robert, isn't it >> if you just repealed salt,

57% goes to the top 1% over 80% to the top 5%. the problem with salt, it was genius to put this in the original trump tax cuts, it is so expensive to repeal we are talking over $425 billion to repeal nearly 80 or 90 billion a year so that's what they have run into yes, it's unfair, they say, to blue states. but it is just so costly, especially if i stripped out all these other revenue razors from the senate opposition. so that's the problem is the cost >> you pointed out that both sides agree on this, we'lly, you got the far left and the right far right deep want to do it it's a handful of people and i think new jersey and new york and all politics are local, i guess. and thanks, robert, it says

here, tax debate i think we have one person, though, at this point. we don't need to they agree. so it wasn't going to be a debate anyway, the national stacks office leader and former deputy chief of staff to senate minority leader mitch mcconnell, i'd say take the cap off completely, you can't deduct state income there is a cap, obviously, for anyone that makes over $250,000. it was a big deal. i don't ever see it coming back, do you >> no, i'd be surprised if it came back where the state and local taxes were fully deductible before 2017, for all the reasons that were just discussed. especially after the 2017 tax relief when you double the standard deduvenlths only one in ten filers itemized. you are talking about the upper

10% that would benefit if you repeal completely, the benefits are so skewed the proposal to raise it to 72,500 to 10,000 about 40% of the benefit goes to people making between 500,000 that's clearly the target population for the relief. then you got another 40% that goes to people above $500,000. included is about 15% of the relief goes to people making more than 1 million. you can understand why the politics of this are quite dicey nationally but in states like new york, new jersey, california, politics are differently, someone making between two and 500,000 is certainly not poor but may not feel particularly wealthy, given the high cost of living that are features of their lives. >> it's not simple for, that's how you get these strange bed

fellows, it's weird, have you people that are, you know, they're democrats, they are elected. they caucus with democrats yet they are advocating and very try dentally advocating for something that is regressive and something that would benefit wealthy people, which is sort of an enigma to the whole idea of this fairness that we keep hearing about. what's it about? they're constituents in their districts that are meaningful no these people in terms of fundraising? what causes someone who is a democrat and espousing democrat ideas, what is causing that? >> it's all politics are local suburban communities, you think about what just happened in virginia with the spring of the suburbs back to the republican candidate, you know, this is i think largely where people feel like the battle will be waged for control of the house, for

the national political move. it sort of makes sense this is a population of voters you target for relief you see that what senator menendez proposed, cap it at taxpayers making no more than $450,000 of income that's doable. probably the more straight way to do it is what is the state and local tax burden and set the cap at that number and kind of call it a day? but that would probably be far below the 72,500 currently proposed we'll see how this shakes out. you do, you have a sort of strange bed fellows, you have democrats objecting, most republicans objecting and they find themselves united in addition to salt relief. you got this cohort of senate pushing for it that's why you are finding it to be so difficult. because they are both on the left and the right >> gordie, what do you make of

the argument about givers and takers when it comes to taxes in this country the argument is if you look at the blue states, they are the givers they are not the takers on the whole in a profound way, given the way they've structured their state, the education systems, the costs. we can argue whether the costs are too high in those states perhaps in the whole when you think about policy, that maybe you want to leave it in that place and if you don't, what happens over the next 10 or 20 years? does it shift throughout the country? does it not? does it bring you more revenue does it bring you less >> the argument of givers and takers, it's a progressive income tax code. will you get more money off taxpayers and if upper income taxpayers tend to congregate, they will be givers in the exercise, it frankly looks at it through one narrow lens of

contribution to federal revenue. it doesn't look at agriculture or military service. there is any number of ways that states might say, hey, wait a second, we're contributing in slightly different ways. it's a reflection of the fact that we have a very progressive, arguably one of the most progressive tax systems in the developed world, largely because we don't have a sort of national sales tax like western europe does that progressive income tax system yields a regime, if you have a lot of urban taxpayers lifling in our state, we rely heavily on income tax revenue to fund the federal government so that's a structural feature of the code i don't know that it's a particularly persuasive moral judgment one way or the other. you know, if you don't like that, you end up with a very different income tax system that i think would actually offend the sensibilitiies of those making that argument >> does that satisfy you, andrew you bring that up a lot.

you have a lot of hedge fund guys that mike new york a giving state, it's not altruism, is it? >> i don't know what the answer, is i think over time, i imagine there will be some real shifts in terms of where wealth moves why wealth moves there will be additional costs to other states when some of those moves happen i'm not sure we fully thought through what those implications are. they may very well be positive on the other end known, but i raise it just because you know it's something that i know a number of senators and congress people who represent some of the blue states are making that argument. >> yeah. they are making that argument. but at the same time that they have been making that argument, you've seen thesejurisdiction impose millionaire surtaxez, things like that so on the one hand, certainly the concern is expressed. so far the data doesn't fair out the concern, at least not

broadly. on the other hand, if that was a real point of concern, you have to ask the question, why does that policy exacerbate that concern? >> we will leave it there. thanks, let's go on and we keep your number, lead you on issues like that, appreciate it >> thanks for having me. >> okay, coming up, we've got the ceo of dominoes will be joining us i hopethere is pizza coming. i don't know, rich ritch allison is coming up and take two with straus zellp zellnick stay tuned you are watching cnbc. destination place now more far away. stop. wait. go into your behind. translation is complex. transperfect makes it simple. our experts help your business succeed.

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coming up, moderna shares are under pressure the vaccine maker warning of sales troubles in the coming months. dominos joining us on the nation's biggest economic challenges to higher food costs and lack of workers. game on, offering an upbeat outlook for sales in the all important holiday quarter. the company ceo will join us live as the final hour of "squawk box." begins right now

>> good morning, welcome to "squawk box." here on cnbc live from the nasdaq market site in time's square. i'm joe kernon, along with andrew ross sorkin don't adjust your tv it's just us, becky is off today. u.s. equity futures. you can adjust it. just don't change it, an dry there you see the dow jones down 11-and-a-half points, the nasdaq up 58 and the s&p up about 5 there will be records now in the dow jones but both of those put the other two indices at an all-time high. >> you can adjust the brightness in the screen. i think that's what you are adjusting. bright then up a little bit.

meantime, the number of stocks on the move, among them, shares are rising after they reported better than expected quarterly results. investors so far seem to be shrugging off a resurgence qualcomm, the future of its growth is driven by demand and there is regeneron pharmaceuticals. the shares are rising, reporting a beat in its latest quarter on strong sales of the anti-body cocktail and shares of moderna at the same time dropping sharply on disappointing quarterly results. also a weak outlook. we will go straight over to meg tirrell who joins us on the "squawk" news line, what are we hearing? >> it looks like the company is him coming up short for the

doses delayed. it is saying it is expected 18 billion in product sales it had been protecting 20 billion as of last quarter it is lowering the number of doses it expects this year from 700 to 800 million it had been seeing 800 million to a become. it's citing things like longer delivery lead times, exports that they say will shift some deliveries to early next year, temporary impact from expanding its capacity, bottling and ramping up market release to product. manufacturer delays that they are shifting some deliveries into early next year for 2022, they're forecasting 17 billion to 22 billion in sales of the vaccine the street is looking for 21.4 become so the mid-point coming in lower than that. the call is starting right now so we'll hear what the company has to say about this. if you put this in contrast to

pfizer, the company that forecast 36 billion for this year's sales and has the capacity of 3 billion doses this year, 4 billion next year, moderna has first products it's ramping up. it has $15 billion in product sales this year at least, seeing these little bumps in the road >> meg, are you surprised the market is not looking through this a bit given what you just said or you think these will be real bottlenecks and perhaps there should have been more investment earlier in terms of preventing this from being the case >> yeah. i think people are obviously surprised. moderna now looks like it is down but perhaps jumping around in the pre-market. so we have to see the recession on the call to how they talk about this things have been going very well. they have run into a few setbacks so we'll have to see just how they hand him that and what the expectation is also for the

doses for younger kids here in the u.s. there has been a delay for adolescence, hearing how that will shake out as well >> how do you compare that to news from regeneron, which is extremely positive i wonder how many more people might start taking those cocktails in the future relative, i don't want to say instead of vaccines? i know there is going to be questions over time how many times people get vaccinated. >> yeah. regeneron has been making the point that there is a role for these drugs alongside vaccines, particularly in situations for people who don't get enough protection from vaccines a lot of people who are immune compromised that could be a place where these drugs can be rainfally help we seen a recognition over the last few months for sure, interesting news this morning, merck's only peer got approved in the you caning, the first country to approve that

anti-viral drug. lit go up in front of the fda this month that will present new options at the market and we'll see how that affects anti-body drugs as well. >> meg tier rem, thank you appreciate it. joe. >> booing to the broader marks cnbc commentator mike santoli joins us from the new york stock exchange and, once again, we're in uncharted territory, i have never been here before on these levels mike >> yeah, i think that more than 60 times this year we had a record high. so this little pickup we've gotten since the fed meeting extends this rally, after post-summer shakeout, bottom on the october 4th, 42.78 was the interday low for the s&p 500 you can do the math. up 8/9%. what it ha his done, it's returned the index to this very, very strong central trend, whatever, you know, angle of

ascent that the. -- that is it is looking like that burst in the april, short-term momentum indicators you did flatten out from there of course, have you strong seasonal tail winds, it's going according to strip that fed decision and the j. powell decision how the market had been clenched up. the consumer remains very strong at the center of this story. take a look at a couple different ways the regular old xly, the s&p consumer discretionary sector had been lagging the equal weighted version that's bullish it does tell you the market has savings and wage growth and consumer credit capacity for it to sustain itself. what's interesting here is this

is almost entirely tesla it's almost all consumer discretionary. it's essentially returned the market weight version back up here right now are you also in the chase in the performance chase, looking for high data stuff. are you seeing that spec la live move the volatility index on the flipside, hitting new lows for the year that's pretty much in sync when you are doubleclicking record highs and have this orderly rally. is it going to be a floor under 15 not clear. in past years we've had these year-end meltups they get down towards 10 and below. what i would say it doesn't yet tell me the market is overly complacent if you look at the vix futures in the next couple of months, they're higher that usually means there is still enough hedging going on out there. it's a positive benign structure let's say.

something comes along, right now it looks like an orderly tight rally at this point. >> but october is in the rear view mirror mike we got through that. looking at your s&p chart, it looks like in october. you see it standing down in december makes a low in october then it recovers, the amply feud, the peak to trough is very manageable, unlike some other octobers that we always fear. >> the peak-to-trough also relative to the starting point, which is up 20% year-to-date number so usually you don't get an average here, are you right, it's following the script but with the benefit of better returns and smaller pullback >> 5% inflation and 1% you know return on fixed income i mean, who is going to accept that nobody. >> except the fed. >> they're the only people

>> the only the fixed incomes, the yields are where they are, a lot of people are accepting it i think that gets lost >> how many people, how many governors are there with j powell a lot of people? >> the fed is a big piece of it. a lot of people have to buy. >> globally. we're still best house in the neighborhood i got it i understand all right. i think it's weird we have a santelli and a santoli it makes it difficult. in this case, it's mike santoli. >> most people will figure it out. >> i know, i have. it's only been 30 years. >> yes andrew sorkin and erin sorkin. some people have trouble with that, even with the loss >> still working on it >> coming up stephanie sorkin, working on

that, too, though. working on that, too. coming up, what dominos can tell us about the big issues facing the u.s. economy. everything from worker shortages to food inflation. ceo ritch allison will join us next ceo remember speaking of pizza, am i missing something they tuned you are tcwahing "squawk box." live from the nasdaq site in time's square. reducing our carbon emissions to net zero may be our biggest challenge yet. there's no single action

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welcome back to "squawk box. the futures right now as you can see, we're looking actually now at the pound the futures in this country, the dow just turned positive interesting. this news just in from the bank of england, believing both key interest rates and its qe kwauptdtativeseing program unchanged. investors had been speculating it might become the first of the big central banks to raise rates. it happened. but the bank said it did happen in the bank's words over the coming months, andrew. >> meantime labor shortages hitting everything from holiday shopping to groceries.

now pizza. joining us is ritch allison, ceo of dominos pizza good morning >> good morning. >> i know joe a little hungry, too, next time we will do this in person together two a pie help us understand why we are in the economy, when it comes to labor, how hard it is to attract labor. that seems to be an issue hitting the entire food industry >> andrew, you are right it certainly impacted us here at dominos, probably across the restaurant industry. it's one that's of the tightest labor markets we've seen in a long time. there are a lot of things we are trying to do you are under our control to effect the outcomes. we have been raising corporate stores and supply cane centers to improving our processes and improve worker productivity in

our stores but it's a challenging time for sure >> we've often look ltd. at a dominos for a littlebit. it was a pandemic play, it was a view people were going to be home, staying home, eating lots of pizza how sustainable do you think that is? what are you seeing in terms of the business as it appears that hopefully, we're on the back side of this poke? >> andrew, one of the things we try to do is look at the business on a two-year basis, going back to pre-covid in 2019. if you look at both our u.s. and our international businesses, you look at the comp, interestingly in both of those businesses on a two-year basis the stack is about a 15. so significantly larger business than we had a couple years back. i think we've had a proven track record as a brand of growing in prosperous times pre-pandemic and during the

pandemic >> what do you have to do in terms of pricing, given the higher cost of labor, what i might imagine might be the higher cost of ingredients >> we are seeing in our third quarter numbers, certainly in the u.s., inflation hit us on the labor front and the food basket we expect that to continue for some time to come and so we're looking at all the levers that we have in the business, you know, around pricing, some of which we set at a national level. of course, we have local prices for delivery fees and for many prices that our franchisees set around the country, where they can adapt those prices to the local cost environment so we'll continue to manage and pull those levers, you know, as we look forward into again we expect to be a rather inflationary environment for some time to come. >> what is the technology? it appears every major china in

america is investing more than it did when it comes to apps and the like what does the cost look like for you at this point? >> this is an area where we were really fortunate going into the pandemic to be well out ahead of the industry we were already in the u.s. in a place where we had 70% of sales come through digital channels. when covid hit that jumped up to 75 we don't see that coming back down once consumers shift to digital ordering, they continue to stay that way that's good for them it's a better experience it's good for us because we get better customer retention, higher ticket, et tetra. so we've got to continue as we have a decade plus now investing in technology. we'll be doing that in our consumer facing ordering applications we're investing in our points of sale system in our stores to make them easier to operate and continuing to invest and check around the operation of making

and delivering priz zas, such that we can get more efficient, given the labor environment we are all working if today >> it's fascinating. are you spending your money in terms of advertising and marketing spend differently in this environment >> so, not materially difficult. you know, certainly over time, you know, we've got great analytics and insights folks here at dominos to help us optimize our marketing sense certainly over time our screen will shift there has been a lot of shift as you might imagine from print overtime to television ultimately to digital. we continue to amp up that digital spend and see spend shifting overtime away from, you know, some of our live tk, you know to more of away from linear

tv if you will to some of the more streaming services and other areas where consumers are bringing their eyeballs more today. >> are you finding we're always trying to look at different spends to try to understand how some of the tech companies are going to be doing. are you finding one having more performance than another right now? >> we continue to look at those levers and optimize on an ongoing basis. we have great modems that help us understand the return on investment in each of those channels we only spend where we think we are getting a strong roi we turn the dial regularly to make sure that continues to happen >> hey, ritch, what if your predecessors did heavy lifting you remember the relaunch. that was effective the quality is still there what's today, this yourself? i was there tuesday with my son and we got a win now i have called and not been able to have a drive i have called, they said, we don't have any

drivers today. it's better, cheaper i pick it up it's hot it's better i think to go in i'm my own deliveryman now i pay myself a lot >> we have seen a big increase in our carryout business, joe, over the last five, six years, it's grown significantly faster than the delivery side of our business it accounts for about 45% of our transactions, more and more people choose to pick up pizza we put operational practices like the dominos carside delivery to try to make that easier for you that channel will be more and more important as we continue to deal with the labor crush we got particularly around delivery drivers. >> we got to go. when will we get delivered by drama for real >> we have already been doing, andrew, autonomous deliveries down in the houston mark, via

neurorobot i think we will be using more robots than drones in the future >> okay. ritch, good to see you, hope to see new person with a pie next time >> we'll bring you one >> thanks. when we return, the climate well known names are teaming up on energy, clean energy products we'll go there after the break we'll go there after the break i'll shoot you an estimate

as soon as i get back to the office. hey, i can help you do that right now. high thryv! thryv? yep. i'm the all-in-one management software built for small business. high thryv! help me with scheduling? sure thing. up top. high thryv! payments? high thryv! promotions? high thryv! email marketing? almost there, hold on. wait for it. high thryv! manage my customer list? can do. will do. high thryv! post on social media? hash-tag high thryv my friend! get a free demo at thryv.com.

. the climate summit continues in scotland today with a number of companies surrounding clean energy diana oleg joins us across the pond with headlines. >> reporter: good morning, that's right today is energy day, starting with reports that 19 countries are committing fossil fuel projects abrought by the end of next year. they may include the u.s. and denmark and phasing out coal have been explained and they're creating big opportunities for clean energy providers like aes. it provides clean electricity. it announced a 15-year deal with microsoft to provide renewable energy for data centers in virginia 70% of the world's traffic passes through virginia data centers. >> if you look at the number of companies that make new

commitments that accelerated the target dates, that's already huge progress. this year is the first year where we work to include more businesses as a part of the program. >> after falling last year, it is expected to drawl by 4% in 2022 the amount generated should increase by 8% this year and more than 9% next year renewables would be able to serve half of that global demand >> the do you that center today are 3% of energy demand. those businesses are growing 50% for you. so they will be a big segment of the energy consumption in a few years. >> he said to expect more announcementles of more deals coming soon. back to you, guys.

>> thank you for that report we'll talk to you very soon. we often talk about esg investing. but the strategy could come with a cost christina joins us now with the story of what you might call greenflation among other things to think about, christina, i hope we are. >> reporter: well, i'm going to get to those numbers to see if we are or not. but americans get 80% of their energy from fossil fuels, comb, petroleum and natural gas w. so many itching to travel right now demand for oil will rise in the years ahead, analysts say right now as much as $600 become must be invested in oil by 2030 have you banks black rock banks and the harvard endow. fund who promised not to do as much traditional energy investment as they once did,

preferring to refer to renewable sources. but a no campus on esg, environmental, social and government is driving a credit crunch for oil and gas companies, some argue that transition is achieved >> the problem with the esg is it's promising cake with no calories all the good stuff with no sacrifice. let's face it, being good will cost you >> with supply chain issues, prices have soared for green energies helping the stock prices of alcoa and uranium energy, you see both are well over 100% this year so far but coal-related job loss loom in energy producing states like north dakota and wyoming, for example. you can see this bar chart on the screen, how many coal might remain in the united states over the past decade, many argue the

short-term losses will be offset by increases in carbon-low sectors, like solar and the electric grid. listen in. >> i think it's important to note that those increased investments in infrastructure will be outweighed by decreases and costs of energy, so the overall system-wide costs of electricity should be balanced out. >> companies that fall behind the green technology curve or stick to dirty sectors, could see their asset togs capital markets turned off but advocates say the short-term costs we heard are a feature of going green. joe. >> yes we're going to be good while china and india gorge. it's like, you know, i don't eat a lot. i watch sorkin eat nothing happens to him meanwhile, i'm being good and it

doesn't help, we heard diana say, there are, there is pressure to not invest anymore in fossil fuel development i don't know we're asking for trouble, sorkin eight do nuts sorkinings, i call you. coming up, economic news on jobs and productivity. plus judy shelton on the fed plan to taper. you are watching cnbc live in time's square. ♪ say it's all right ♪ ♪ say it's all right, it's all right ♪ ♪ have a good time 'cause it's all right ♪ ♪ now listen to the beat ♪ ♪ kinda pat your feet ♪

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welcome back to "squawk box. rich santelli here with breaking news, initial jobless claims post another post-covid lows a lot of posts there 269,000 that follows 281 thousand which most likely over time will get revised as it just did moves up to 283,000 f. we look at continuing claims, same scenario post-covid-19 low 2 million 501,000. last look reviseed from 2.243 million to 2.239 million productivity a minus sign. you never want to see a minus sign in front of non-farm productivity down 5% think about it this way. in june, it was 11.2 as a 50-year high june of 2020. if we look at unit labor costs, they zoomed 8.3% last month, 1.3% downgraded

suddenly to 1.1% now on the trade ambubalance in9 moves from a record minus 72.8 billion originally leased at 73, minus 73 billion to now minus 80.9 just side minus 81 million the biggest ever with regard to the trade balance interest rates. well at 157, we're down a bit because we sold off pushing yields up to that 160 mark maybe the most interesting news is we are seeing the short dated maturitys like a two-year note move from much higher levels down to 44 basis point, which is still high it does accentuate how the fed tilted us from paying more attention to raising rates to now back to the taper and how it affects the yield curve. andrew back to you. >> rick, thank you for that news and analysis we're going to go straight over

to steve leishman to get his take steve. >> two real fast points. i think that decline two-day yield came as the bank of europe came to surprise markets, failing to raise rates that two year is a big thing, spilling over into the fed funds complex a bit. the other thing is we had a bit of good news here, a good number for jobs hopefully we can talk about the jobs report tomorrow ism services is surging ahead. it seems like we are getting more swoon in the lousy q3 gdp number >> thank you for that we have breaking news from ford. when want to go straight over to fill le beau he joins us with details there >> andrew, shares of ford have had a heck of a hundred. this morning, they're indicating higher the company announcing it has plans to buy back up to $5

billion in debt. this will be done through a cash tender offer they will be paying off the more expensive bonds, they took out remember in march and april, they're going to be doing this, this is a part of an esg finance plan the company is announcing the plan includes the potential for issuing potentially a $1 billion green bond it also plans on financing investments as well as funding clean manufacturing. all of this coming as the companyis sitting on $6.25 in debt before this announcement, they're putting some cash to use. what does ford's finances, what's the state of them pretty good shape right now. we will be talking with cfo first on cnb coming up on cnbc,

we will talk about the tax gender offer and how the company plans to use this fngsz as it is targeting clean manufacturing going potentially carbon neutral by 2050. guys, back to you. >> ac, phil, thanks. let's get back to the economy and the fed's tapering plans, joining us is judy shelton, a senior fellow and former reserve board, author of money meltdown, restoring order to the global currency system. i want to put my finger on the pulse of how we are viewing the latest news from the fed i think we're supposed to be send they're doing pretty well here they will find the taper finally in time and they're not too late tapering because we've had the delta variant has slowed things down, slowed employment down a little.

so it was prudent to stay very accommodative and to continue this massive bond buying now they will cut back on that you make some interesting points about how much a that they own after all this bond buying and 39% of the nation's gdp is owned from all the bond buying during qe >> right i think those are pretty big numbers, if you want to consider the appropriate role of the central bank in a pre-market, free enterprised economy the fed announced yesterday that despite these indications of recovery, it is going to continue providing monetary stimulus albeit, it's a slower pace but between now and june, the fed is going to purchase over 400 billion in government

treasury debt, in marge-backed securities that will give them this huge portfolio of assets equal to 40% of our nation's gross domestic product and the interest rate will still be zero in june >> it will still be zero i was thinking through some of this the fed ka say, okay, but we are cutting back and we needed to stay fairly accommodative because of these other issues and they point to supply chain probabilities i think you point to are they reacting to supply chain problems or in some respect the arson, responsible for some of the supply chain problems >> well, i think the monetary accommodation is just fuelling the fire of fiscal stimulus so it's exacerbating the

inflationary pressures the fed doesn't have the tools to address the problems that our economy is facing. they can't make people go back to work and they can't resolve those supply side issues so the have these fundamental tools or trying to manipulate the interest rate. it's not clear at all that will increase output or directly resolve the problems that are occurring in our economy i think we should let pre-market signals help to resolve some of those blockages and get things back on the right road >> well, for whatever reason, the fed seems to assume that it's all resting on its shoulders, managing the economy is something that it needs to do for all of us. it's almost as you call it, paternalistic and now a very big part of our lives. a very big part of what goes on in the economy

you don't think it need to be that way and i guess if they're enabling spending in washington and once again, they're not helping. they might actually be adding to our issues that they then think they will solve? >> i do think it's a paternalistic attitude, i almost cringe when i hear the fesd say, we're going to continue to support the economy as if it is managing it. it's really a wag the dog situation remember the economy is made up of the kindividuals who are act 95 this economy. i think i trust their judgment more than government-directed efforts to manage this economy i think the message from the elections this past week to some politicians was that people want them to get stuff done i would say our message to the

feds should be butt out. don't try to manage the economy. let pre-markets work it would be very nice to know what is the real cost to borrow? what would the supply and demand price signals tell us about where capital should be directed to have the most efficient recovery and to increase supply and to help us really deal with the actual problem that's confronting us and i think the fed muddles those signals by providing monetary accommodation at a time when the economy is showing strong signs of growth and recovery i think it's hurting more than it's helping >> so, in terms of how we reign in debts reign in fiscal spending and we're talking some big numbers here, democrats would say, it's only 1.85

trademark, not including the infrastructure bill. others would say, the real number is probably closer to 4 or 5 trillion. we cannot count on the fed taking away the punch bowl maybe electors did in virginia maybe they will in 2022. but if you were expecting the fed to say, we're not going to continue to keep enabling congress to do this, they're not going to have to, maybe. maybe that was the upside for tuesday? >> well, i think we'll see how much stimulus is likely to come out, but i fear that we're still going to get continued overspending, reckless spending from congress. and the fed has already injected tremendous potential for monetary expansion it's a huge number when you think of over 4 trillion is sitting in bank

reserves in their depository accounts at the fed gathering dust, all of that money is available to go into the economy. that's already been created by the fed's past history of purchasing treasury debt and mortgage-backed securities that is all waiting to be unleashed. i don't think the fed can know what the impact of potentially higher interest rates will do it will it make those banks put money into treasury securities, so they're continuing to channel credit to the government a. deficit spending government rather than the private sector or will it decidedly make real loans? that's what the fed doesn't know. >> if you let's say you were the fed chief, what would, how would you either get out of the way or somehow see a greater gdp growth, greater job growth,

everything else? what does the fed need to extricate itself from for that to happen? >> i think they need to reduce their foot print in the treasury security market. so i would have done the tapering at an act sell rated rate i would be done in three months, while we do it twice as fast then i would be sitting back to see what is the impact on treasury rates and so see whether banks are now reducing their reserves to purchase government debt and then i would do something that i think is long overdue i would change the, it was an emergency measure to pay things into some reserves i would make an announcement, let banks know we are going to phase out that practice. no longer in the 2008 emergency situation after the global meltdown, we are not going to pay interest on reserves and then i would wait and see

what the impact of that is if you quit paying that, then you raise rates. that would also be good. >> okay. steve was talking earlier, leishman, about some metric entry of fed action during a crisis it should be symmetric on the other side of getting out. we are permanent elves, 2008 we are a permanent in this most recent crisis. we never get out. >> they never miss an opportunity to have more info over the economic outlook. >> you >> maybe, that's probably rare i don't know, i can't speak. but thanksgiving, it's good having you on. >> thanks. >> okay. >> okay. coming up on the other side of this, the gaming boom showing no

signs of slowing down, beating the street, upbeat sales i don't thinks the company ceo will join us live next. first, check out shares of moderna down sharply after earnings revenue falls short, tltting the covid vaccine sales ouook. stay tuned "squawk" returns after this. a br finance system than we do. i feel like they might have a better finance system than we do. workday. how do they make better decisions faster? workday. it's got to be something workday. i think i got something. work... hey, rob, you're on mute. hello! hey, rob, there he is. workday. the finance, hr and planning system for a changing world. it's a thirteen-hour flight, that's not a weekend trip. workday. fifteen minutes until we board. oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position.

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welcome back to "squawk. we have breaking news coming in right now from the white house it is releasing details on two vaccination policies companies with 100 or more employees will have to require workers to be vaccinated or be tested on a weekly basis companies will have to provide paid timeoff for workers to be vaccinated and ensure that

unvaccinated workers wear face masks and workers at health facilities that participate in medicare and medicaid will need to be fully vaccinated also it appears the deadline has been pushed back a little bit here as well, so the original deadline was looking at december 8ing now it's looking like maybe it pushed back the holidays here to january 4th. we'll bring you more on this news as we get it. right now we want to pivot to talk about the world of gaming shares of interactive up in the company beating the street with the latest quarterly results it's raising its outlook joining us to discuss the business and the role in yes the metaverse, strauss zelnick, it's great to see you we seem to be talking about a theme emerging in the markets, maybe more than the economy. but you can speak to it about what were pandemic plays and the acceleration that took place

during the pandemic both in the stock prices of some of these companies and in the earnings of these companies, what happens post-pandemic and you are one of those companies that i think straddles and sits right in the middle of it so what are you seeing >> well, what i said during the pandemic was we expected post-pandemic desmandz to be higher than pre-pandemic and lowerb than pandemic, because people were sheltering at home i think at first that turned out to be true now as we reach what appears to be the new normal, demand is actually higher than during the pandemic in certain instances so in this quarter, for example, we were up 3% year over year. current customer spending was up 7% year over year. we had expected that to decline 11%. at least we are doing somewhat better than expected we're really pleased about that. i think that reflects the broader economy as well. as long as you give people what they want, of course. >> i mentioned at the top of the phrase metaverse, which now may

or may not have been common deidre by mark zuckerberg, given he's changed the company to meta you often talk bd about how your company has been first to the metaverse dance if you will. >> >> as we transition from a physical to digital environment, i remain pretty skeptical. if you define it as the new version of second life, i'm really skeptical however, if you describe it as a digital location we can go to, to be entertained, to connect on other people, to talk, to play, to drive cars, to engage in criminal activity, to be the police that stops that criminal activity, and you have fun along the way, well, we're already in that business. i would argue we're probably the biggest metaverse company on earth in terms of revenue and

pro profits. so we're already there we're excited. we see at least one expression of what it means to be in the metaverse at our company what the future remains to be seen i'm skeptical that we'll sit at home and conduct all of our daily activities that way. we had to do that during the pandemic, and we really diplomat like it so much. >> doll they long term multiple metaverse platforms, or then we'll live in one and go to different parts of it. meaning, do you think that facebook will have a metaverse, and people will bop between them one overarching? then there's things like

de-centerland, which is something very, very difficult there will obviously be different players. the question implies that we have thing of that we think of a the internet, but then there are various destination. i don't think there will be just one standard destination i think there will be multiple destinations for multiple uses i think the most power of uses may be things we haven't talk about, medical, technology, medical services and military technology i mentioned decentral-land, what do you think is happening with cryptos and nfts? >> well, there's a lot there let's take nfts first. i believe in nfts, because they

were digit at collectibles we know they're physical digital colle collectible. s what makes a collectible matter is the intersection of rarity and quality rarity alone and quality alone probably doesn't do it so they really only matter in the event they are seen as high-quality, and people 'art traded for $69 in cryptocurrency obviously someone perceived quality there. you could create an nft of a picture of me doing what we're doing. i suspect even though it might be a singular item that's not guaranteed, i don't know if there's much of a market for it. i don't know, maybe my wife would. it's about platforms

you see apple call itself a gaming platform, now streaming games like twitch, things like that how do you see the platform shifting and where you sit on top of it? >> you just described it this is the most glowing part of the business, and i think tell be for the next 20 years our goal is to create the miest quality content that matters more often than not we're able to achieve that goal we will not command every part of the ecosystem, nor do we wish to we hope to bring the best entertainment on earth and bring it toconsumers whatever device they're on all around the world. >> good to see you >> thanks for having me. i'll see you in decentral-land

or the metaverse. >> exactly. qualcomm looks like it's up. the chip mark, what's the deal >> first they are just killing it with android. the company is in the driver's seat almost more than any semiconductor. they have a lot of chinese phone companies. they're also moving into auto. this is a company that is very, very smart the street just got it completely wrong i think up 15 is not nearly enough, frankly. so h so who is the qualcomm and the anti-qualcomm as far as chips go >> amd, and nvidia, and then the

guys who are losing are skyworks, but corvo. qualcomm is a remarkable company. it plays hardball against everybody, and tends to win, even though they're some of the nicest people in the business. someday we have to have a conversation about taiwan, china. i asked mark, he said i'm loaded up on taiwan, and i'm, like, are you sure that's okay he said, yeah, we're watching, we're watching. >> he likes the flyovers i'm not as high on that. >> it matters. we may need to build a few foundries. >> he's an optimists

jane goodall says, watch out, optimists can become pessimists. and check out the cnbc investing club just point your phonathee t code it's magic, on the screen, it will take you right there. we'll be right back. and you have to lower wait times. with ibm, you can do both. your business can unify apps and data across your clouds. so you can address supply chain issues in real time, before they impact your bottom line. predicting and managing operational issues that's why so many businesses work with ibm.

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final check on the markets, the dow is down a bit. the other averaging will be at new highs. we'll see how the rest of the day plays out. we've got the jobs report comin tomorrow andrew, a good panel, we'll talk about it 8:30 make sure you join us. >> yeah. >> "squawk on the street" is next good thursday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber we have the fed taper announcement, some surprises today. bank of england holds steady, and a new covid low and jobless claims our road map begins with moderna, as the company cu