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 cut its

forecast for vaccine sales and cristiano amon and we'll talk to the ceo ahead of the first trade >> their guidance is blaming some supply constraints on international delivery i thought it was interesting, when you get these press releases, this one was buried pretty late in the game here, and what bothers me, they personality vaccines, stuff like that, and you're all excited, and then you get to the bomb dropping here. but they did -- some people said it's delayed to next year, but this has turned out to be a young company, david, pfizer not

a young company, they seem to know how to handle the volume. >> you you this that's the issue? >> i think so. it's hard to be predictive before we're too hard on this guy, let's remember what they did. they were the first one to have the shot, it was at the actual bottom of the stock market, that day, they said we've had a trial with one person. so now they're sending just a huge number of these so i don't want to be too critical, but it does remind you when you're investing with a young company, you have to accept the fact maybe they could cut the forecast without reasoning we would think -- which is, like, how could you not know so, anyway, i guess what i'm saying is let's look at them more kindly, but the stock has had such a run, okay people are looking for a

reason -- >> though the stock did remember that week in which we first got the very positive phase three results, and moderna began to sell off then as well. >> that was the beginning. >> we should point out, by the way, the first antiviral will be available in the uk within days. there it is. safe and effective seven different times in the prerelease press release. >> the irony part here, so moderna talks about -- and three paragraphs later, a share program of up to $3 billion, but the stock is falling

how does it fit in with the post-pandemic life all these other names that have given up so much since january. >> i think frank del rio, the ceo of norwegian cruise lines, will say, look, we're in the post-pandemic world. a lot of us find we're shocked when someone has covid when aaron rodgers has covid, it's shocking. when barkley has -- we're trying to figure out if it's a false-positive or not, because i picked up a player who might be -- we start thinking, how did that happen? how did that happen? look, a lot of us know that people who broke through, too, but three vaccines seems to be the magic number

>> you feel good since your booster? >> yeah, i feel -- i'm not willing to stick my hand to a hornet's nest. i was very proud the other night, i went out to the restaurant and can we see your card >> yeah. >> so many different shots, you have to turn it over. >> i said, are you vaccinated? appeared modernas and three phiers, and wow, they didn't understand the irony, the jokes that people are now doing. >> thankfully, as we point out every day, rates continue to decline in much of the country, hospitalizations, but the virus itself is quite -- it's much more deadly than it seemed at the beginning of the pandemic. i was talking to about a peer review, one in 20 placebo died 14% ended up in the hospital

that was just a trial. let's not forget, it is still out there and still quite dangerous. >> one of my doctors after a week, a 76er got it, very, very sick after a breakthrough. >> there are breakthroughs back to moderna, first shot conceivably will be more pr protective, the third shot. >> again there's a new group of people that have to get a vaccine. >> you mean kids >> no, if you have 100 workers or -- >> yes >> i think -- the doctor was talking about certain states, if you went to them, you would expect it. >> we're certainly watching for seasonal trends. we are watching qualcomm

today, though, beating earnings with a rise in matter phones as jim said we'll talk to cristiano amon in the next hour. >> i think we have to recognize there was a remarkable series of accusation, david, in your world. qualcomm bulked up on auto, and they're in it. >> it was a deal that was complex, but it did give them the adas technology, which is important for autonomous that's early days there, but they are making a lot of the fact that 38% of the revenues were from non-phone, non-handset sources. they're excited about that but they want to emphasize that, it shows the diversity of revenue streams coming through the company.

>> and, oh, by the way, they were clout they did not have a problem getting supply >> they seemed to have manage the supply chain >> they're not afraid to say we're -- in the cupertino giant, you know, they sneak the stuff in they're not. i think one of the reasons why is they tussle. >> tussle is a nice way to put it they went at it for a quite a long period of time. >> cristiano, he's pleasant. >> very, very smart, though. >> enjoys -- >> the stock is breaking out today, but it's not been the greatest, as you can see, three months, even over -- >> the analysts were wrong,

david. they didn't see all these divisions that were on fire. there's been a lot of analysts getting things wrong in the semi area. >> why do you think that is? >> it all seems to come back to intel. there's so many analysts still blinded by the light, they can't understand it. i think advanced is -- nvidia they didn't see coming one bit it's, you know, approaches a $700 billion market value. so, i don't know -- >> qualcomm was against the can be they were trying to -- that would have game, set, match to the arm deal. >> does it matter? >> not at this point they have the graphic parts you

need in order to have zuckerberg's metaverse has been to be in nvidia's omniverse. >> we have to get a metaverse animation, i think, the same for cathie wood or spac. >> did she sell zillow after she bought it? i think that was her avatar. she bought low, and then sold lower, some 300,000 bought the day before, and unloaded $2.86 million yesterday. >> we're talking zale owe now? you put him on the wall? >> he -- in the previous quarter, it was going great. >> you don't like when people are not honest >> no, ill-advised

do you take somebody down from the wall >> i said he would come down immediately when he retires. >> you don't have emeritus >> i have a committee, and a bunch of people write back in. >> how many people are onle on the wall if i put my phone up on the qr code every day, will we find out? are we doing that every day? when we come back, ibm energy service, and kyndryl. we have a lot rngseain to get through. we're back in a moment

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will be doing. >> thank you we begin with the bedigital engineers in the planet. we're the biggest in the space, a great set of intellectual property we're really excited about the ability to invest we now have, and we're really excited about the freedom of action we get to participate in that market ecosystem. so rear really excite d. will it make it your total addressable market is bigger than what you already have >> first of all, ibm is a great partner of ours, and we'll continue to partner well with our customers, we have highly

complementary skill sets and highly complementary offerings at the same time we get to partner with hyper scale partners, other application vendors, and, of course, a whole range of other system integrators, so we join that market ecosystems that our customers are using every day, that our customers are saying, can you help us in this space? can you help with this hyper scale provider it's a big deal for us, and allows our market to basically do double. >> i like all that, but you don't expect to show revenue growth un2til 2025 >> look, the business, jim has been on a 5%, 6% decline it's very much a backlog-driven business as we rebuild that backlog,

which will take times -- again, we're running the hearts and lungs of our customers' infrastructure we have to develop these relationships in the ecosystem really, importantly, we have to start making our investments to move our skills, move our labor pools into those faster-growing areas. this will take us time to stabilize the business, but because of this services nature of the business, once we get that flywheel going, we're going to see a nice good long stretch of growth in front of us. >> i know sales is important for growth stock investors, but i have to believe that your gross margins can expand, maybe high single digits? >> yeah. look, we see an opportunity to do both. stabilize the revenue base and continue to improve our margin base we're also going to be investing quite heavily, so we're focused

on where margins will be in, say, '24, '25. we have to, we have to invest here in order to get back to growth that is our focus. >> martin, a lot of people were -- i was hoping for rationalization of the workforce, but you say we're 90,000 strong and growing. maybe you should by 90,000 strong and trying to figure out who is not as needed, now that you're no longer selling a lot of ibm product. >> our path forward is to invest in the skills and talent we have our team are the trusted people running the infrastructure today. so our plan is to take the teams we have and to expose them to the education, get them credentialed, if you will, if that broader ecosystem, so not only can they help with the big skills, but we can help

customers on the journey to the cloud, we can help them on their journey with other application providers. our path forward is to take the workforce we have, the trust we have with our customers to get them into the bigger market areas. there's a of growth in this marketplace. we have to pivot to it >> and how about martin schroeder. you retired in 2020, an old han in ibm you seem more fired up than any time i have seen this opportunity for you, you must get a chance to be a big-time ceo of a large company and you're excited about it. >> look, again, like 88,477 people really want a shot to show the world what they can do. being a part of that is super exciting, obviously. and in order to really reinvent this business is also super exciting i'm delighted to be a part of

this we've been a great team, a great senior executive team, great leadership across the corporation, and we were able to recruit a terrific board for kyndryl. it's just good to be a part of this. >> martin, we wish you the best of luck. it start trading today under the symbol kd. >> thank you, jim. cristiano amon is coming up, and we continue to digest not a surprise of no hike out tofhe fed, and "squawk on the street" is back in a moment. dad, we got this. we got this. we got this. we got this. we got this.

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all right. a bit of cheering here going on for kyndryl. we're going to go for the mad dash costco >> if you take my phone, put it up to my head for the qr code, you'll see this has been one of our longtime position iposition. i didn't think it will be this good 11.7 u.s., 14.7 international. the food court is back, david you know we can chow down for very little money. the food business is on fire, but this is extraordinary. i don't even think costco realized the kind of power it has. people are clamors for costcos all over the world, but look at that. >> there's also a theme that the biggest out there have the most

control over their supply chain to some extent, or at least can navy gait it fare better >> i know we discussed the three-fleet navy that costco has been, their own ships they're bringing, but i think costco is the kind of company that you go, and there's something there for less than think pedestrian, and you tell all your friends, you have to get this and that. they were just remarkable. anyone who has worked with them, who has ever sold into them knows they drive a hard bargain, but if you're in, you're in big, and you make a lot of money selling to costco. costco is a membership business, and they can raise the membership prize anytime they want they will not lose a soul, because the deal is such a great deal the food court, david? >> you like it >> oh,i sweet. speaking of sweet, waiting

for an opening bell here a few minutes from now, of course, looking for potentially a higher market you can see there, though, mixed. the nasdaq does appear headed higher, five minutes from now. stay with us

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>> announcer: the opening bell is brought to you by -- take a look at roku this morning, 48 cents, revenue is shy. they guide below for the q 4 revenue. you have tough comps there's a lot working against it today. >> yeah, there is. this will be a charmed stock i actually -- the supply chain for them made a lot of sense roku has competition, and it dove-tails fromthe competition we've heard about the entertainment and it's relentless credit cards and entertainment are the two things not cooking for me. >> streaming is the way most

people watch television, direct to consumer is most of the content companies, but roku, you've got any number of different ways that you can choose to navigate that. they have done an incredible job, that one might never have imagined from simply selling a device. >> look, do i want to buy it here it's been in that terminal downturn of companies that you mentioned. peloton. we are back into the world of trying to figure out who is in the pandemic i want to compliment williams sonoma a lot of people felt that was a pandemic story ever since simon properties said good things, a lot of mall-based are going up very inexpensive stock one of my favorites. >> one of the companies that benefited from people being home, and some argue those people are home a bit less the real-time exchange, the

big boards celebrating the spin-off, as we said, from ibm, kyndryl. and aurora celebrating the l listing by spac at nasdaq. we're talking about roku and streaming. viacom gets hits a billion in streaming. i see now talking about doj, simon & schuster >> yeah, the sale did get challenged by the doj. there was some question at the time of the announcement whether there was competition for publishing company as to whether or not that deal, if it was announced would get challenged it did but listen, advertising, you

know, they had 13% year-over-year growth, a billion in streaming revenue, added, what, 4.3 million subs i think they're now at 47 million total. paramount plus, and they're excited about the "paws patrol 2. and "clifford the red dog. >> did you see credit suisse getting out? >> we mentioned archegos yesterday, but none crazy moves other than viacom. to your point, credit suisse, a big story today in the "wall street journal," they are out of prime brokerage entirely after suffering losses in excess of $5 billion from lending to -- >> they have a strong business in switzerland the question, in terms of

private banking, what they do there and all those relationships. there's always been question as to whether credit suisse would be in the sights of their hometown ubs, and another larger institution in terms of consolidation. for now, they lost a lot of people after that. >> you can't argue that anyone could be snookered, and that they were -- morgan stanley did the underwriting for viacom, but guys, lynnian tv with still a lot of questions we know which way it's going, and then tiesing, particularly in light of the fact we've said many times, many companies are choosing perhaps to cut back a bit, given that they can't get product back out there so try to sell product that isn't available.

>> we used to think of it as when columbia pictures traded separately "close encounters" moved that up 20%. >> i'm thinking back to the barclays downgrade of disney their idea was some of streaming issues with people at home less, would mean they have to push back the streaming subtargets? >> this is this -- i keep hearing this, there's risk to disney, risk to disney i think it's in a transition situation. i believe that the new disney park-related, conceivably, which is the metaverse, facebook, mess averse, but, you notice, look, if you want post-pandemic, my bulletins say buy it, but not aggressive i've never said to be aggressive this is a transition quarter look at what happened. one person got covid in china,

and next thing you know you have -- >> shanghai disney gets locked down >> they should have named it as a mickey sleepover. >> if is a little kid, i wouldn't have left >> target 750, the general line, jim, is that -- they believe eventually retail will move on they were saying that this fascination is going to go away. i'm not -- i'm not quite sure. the reason why i'm not quite sure is adam aaron keeps putting up great numbers >> i'm not arguing the fundamental of the business are getting better they are

>> they still had half as many shares outstanding december of 2020 as they do right now. they have doubled their share count. by the way, they still are losing money. >> look tut cruise ship companies. people love those. i have -- even next year trading at something like ten times revenue. >> well, david, what is tesla trading at >> tesla is having a very strong day today. >> right. >> back to a $1.23 trillion market value, but you changed the subject. you never want to admit that amc shouldn't be bought. >> twice the american box office. >> adam aaron, on melissa's excellent, excellent documentary gave a terrific soliloquy how

they solved the issues -- >> you keep changing the subject. oh, wait, the apes he just loves it [ laughter ] >> how is that i can do that game >> i want to talk -- >> brookings had a good quarter. did you see that we not often talk about, roche buying $20 boil onback from novartis? it's an enormous deal. they had a pretty good return over time. i think it was over 10% annualized return. it was an enormous deal. i remember when they did that. remember when roche -- remember genentech? >> also ford with buying back some debt. i think that, once again, farley surprises every day. phil lebeau has something in

"techcheck." >> i've sent farley e-mails at 3:30 a.m., 4:00, sometimes you think our e-mails cross. he does not sleep for multiple days, i'm convinced that he has problem the most aggressive ceo -- >> i don't think elon musk sleeps a lot, either i will take your farley and up you a musk >> the fact we're calling it musk versus farley is interesting. >> remember, it's the pickup farley has never said it's about the regular vehicles it's the pickup, and where is elon musk's pickup, which looks like an ice cream truck meets a sherman tank. >> not there yet >> by the way, farley doesn't think that's great-looking. >> and nvidia is up.

the metaverse, maybe it's catching on. facebook or formerly known as facebook is up 1%. >> nvidia is the platform everybody has to ride on it, because they saw all this coming years ago, where he realized that you can make someone look more like -- i mean, when i saw the storm troopers, and i couldn't tell which ones were the droid and which ones were the real ones, i knew. he had me at storm trooper [ bell ringing ] >> every day a bit of metaverse. it's still years away. >> no. >> no? >> no. okay listen ralph lauren uses metaverse to sell clothes, but i don't know -- take two, that's that is

in the metaverse >> i want to talk to cristiano about the metaverse and a lot of other things we are keeping eyes on the shares of qualcomm it's going to be a very strong performer, l's call it over 12%. 56% increase in chip sales is what the company saw that is despite shortages around the globe. first on cnbc is cristiano amon, the company's president and ceo. great to have you this morning let's start there on the supply chain, because you did seem to navigate it in a way, perhaps that some of your competitors were unable to you even said on the call, we were able to work through the supply constraints to address the demand that came up. give me more meat on that bone what were you able to work through? >> good to see you all, very happy to be here

very happy day for qualcomm. look, a couple earnings calls ago we had said that scale helps. we addressed the issue early we had a number of design of our products in multisourcing. we even multisourced leading technology we announced trading products that are a result of multisourcing, put capacity plans in place, and it's working exactly as we planned. we had we've seen material supply improvements toward the end of the calendar year, and that's reflected in our guide. >> right so you're going to continue to navigate well. you have to figure out demand if there was supply across the industry does that mean there's even more potential demand as we move into next year?

>> yes look, it's -- the reality is, if we look at where we are like today, we had great q4 quarter, but, you know, we're still short, as we're going to see supplies substantially improving at the calendar year but there's more demand than supply, and i think that's outline in the call. as we go to q1, we could grow more, ebel spyly in new revenue streams, you know, and new growth areas, but we have an incredible opportunity with android, and we have been prioritizing where we get the most return. >> you know, those new opportunities you mentioned, i noted this earlier, 38% of revenues coming from non-handset-related sources. how much and where do you feel comfortable with that going? could it ever be 50-50

>> i think it's -- when we're not making that prediction right now. i think we'll provide that details on november 16, but here's what i wanted to highlight. by all counts, our different strategies are working, and it's working, because at the end of the day, the market is moving to a road map in 38% doesn't indicate that it's really working, i don't know what doesn't, but the important thing to answer your question is we have many great vectors of growth in addition to handsets if you remember, the last earnings -- not this one, the one before, we said the world's business is growing at 1.6 times the handset business that's on fire, because we have the -- we have an incredible android opportunity. now we create a number of growth vectors for the company that are

growing much faster han handsets we have the conversion stuff you know, we have invested early. we've been talking for years about virtual reality, augmented reality. facebook changed their company name because of the success. we're the company, you know, behind all of those devices, you know, whether it's facebook devices, microsoft, that's a great growth for us. we have iot. if you believe in the cloud economy, you believe in all those devices connected to the cloud. that could represent a much larger percent of revenues as we mature those markets. >> cristiano, it's jim really thrilled that you did the deal, which is going to be for -- but what i'm interested in, and i think people should know this, you have a hammer lo

okay pretty much everybody apple is mentioned in the call, but you also have android. i think people somehow think that apple is much bigger than android. >> android is doing great. what happened is, because of our technology road map, the snapdragon eespecially our 800 series, you've seen this on the galaxy gs-21 you see it on the flip, new form vectors are coming up. i think samsung has been successful with bigger screens, the flip phone we're seeing new companies, and now we're number one in europe android is going i think the 5g has the potential to continue to change the land landscape, and we saw, with the -- with, you know, what happened in the shift across oems, an incredible opportunity for us to grow faster than the

market the market in mobile growth in single digits we're growing much faster, share into high gear, and, you know, it's important to highlight when we sell a snapdragon mobile platform 800, there's more silicone content. so one single snapdragon 800 device replaces a lot of devices. we have more content, more revenue and earnings, and we're very happy with that landscape right now. >> david was targeting about arvr, i'm trying to get a sense of how big that business can be relative to the -- >> see, what i like about our cards right now, and i can't

emphasize this enough, we have incredible technology. we're one of the fee companies that are all founded on, you know, high technology development, foundational technology what happened is this road map is becoming relevant for allo, for the future of the pc, for the new type of devices that could become the next computing platform it's not far-fetched to think in addition to your phone we may have an augmented reality. that's creating a number of new vector we invested early. that is the reason that, of the 50 devices that exist today, all use qualcomm >> i want to talk about both of those things let's go back to autonomous. you just indicated that you see it as an opportunity, but we were sitting at this desk five years ago talking about autonomous fleets of vehicles

that were soon going to arrive with the advent of 5g. how many years away are we from what seemed seemed like it would be a lot closer. >> the way we're thinking of this, david, let's talk about a-des, level 2-plus and 3 will be ever pervasive as seat belts and air bags we're taking the same approach to the mobile industry to al to on the autonomy front t. gm recently announced that are cruise, that's qualcomm silicone -- silicon on it. to answer your question, the

large opportunity is really level 2-plus and 3 we'll eventually get more economy, but we have a lot of opportunity to scale before we get there. >> and a lot of years potentially to go. you made a couple glancing references as well to the metaverse, at least in terms of your, you know, ar and vr, what you're able to do there. how big of an opportunity to see that eventually, christiano? do you agree with mark zuckerberg it will be many years, but it will be a significant generator of potential profits? and how will qualcomm eventually play if that is the case >> the simple answer to your question, dave, is we make big bets when we invest in the foundational technology that allows to have the incredible devices, i'm sure facebook is becoming confident in their view of oculus, which is enabled by

qualcomm i believe there's going to be incredible potential whether you agree or disagree we're going to live in a digital world, i think the opportunity to connect in digital spaces is real as we go back to work, you're going to have people online, you'll have people in physical locations, and that's going to be, just on the enterprise alone, a necessity this could be as big as the home environment. a cell phone could have companion glasses, and we're the company to scale the way you think about the metaverse is there's multiple bets, multiple versions of how people believe the metaverse is going to win there's one thing in common. we're going to be the company enabling the devices like we are

today, in the face of oculus >> okay. to be continued, perhaps in the metaverse at some point. when we meet there, in the metaverse, will it feel like this or will it feel different? >> you know, will it feel diffe? >> just looking at the pace of technology innovation it's going to feel like we're in person, but i wish it were in person with you guys. i'm happy travel is back, and it's good to see people. >> as do we. we look forward one day to being in person with you as well, but appreciate your taking time. thank you. >> thank you very much still one more qualcomm ceo who is a delight to be with and just, you know, these guys are tough, but they are also fair, and i find them nice. i don't mean nice like in the damming phrase, i mean in terms

of the guy. >> coming up in the next hour, the earnings interviews continue first, though, time for the bond report got the two-year down to 42 basis points as we have the 75th record high fort s&p so far this year.

let's get to jim and stop trading. >> watch pioneer drilling. scott sheffield, showed lower, not great properties, versus the mosaic harold at continental raising his gross margins. that's important when a year of exxon, what are they going to do with climate change. pioneer is a winner, and i think that's my favorite growth names. >> waiting for opec plus, maybe

we'll get production news but doesn't seem likely despite the pressure. >> this is the one to buy, and they are both brilliant companies. >> how about tonight >> planet fitness trying to stay in shape and then a pioneer, you know, we have a company, papa john's, it's exploding it's doing so well >> oh. >> a lot of that is shaq and then frank del rio who said you have to be vaccinated to come on our ships and turned out to be a brilliant move. >> papa john's comps on a two-year stack, want to guess? up 32. >> six ingredients >> very, very -- i hope they bring us some. >> they turned that thing around. >> that's why i said, that was -- that's why i'm happy to have them, because it's a remarkable turn. and it's a reminder that you can bring in good people, smart people, business people, who understands the franchise business and just turn it around a great story. i really like it. >> while we have you, it's not

just about the record highs today for russell, s&p, and nasdaq, but the vix at the lowest since july, jim. >> wow i think once you get past a fed chief who says will you stop it already, we're just going to do what's right, who knows what's going to happen, it took the fed out of play. now we worry about you can create one, but -- >> got through earnings and taper. >> corporate taxes not a disaster. >> seasonally again the period where things are just terrific and i would like to see oil stay here so that we don't have to hear endlessly that jay is asleep at the wheel. >> declines in spot gas down 12 cents in the northeast, 11 cents in the great lakes. >> wings down 40 cents in the last four weeks. >> your favorite stock over the last five years nvidia up another 5% it is right at a $700 billion

market value. >> he is -- >> don't lose sight of that. >> we talk about tesla but up 113% this year. >> look, this is a company that has real earnings, he's a genius going to the headquarters, i said what is that on the wall? i figured out a way to grow grass on the walls if you get the sun right this man is -- he's everything he's ben franklin meets da vinci. he's remarkable. and -- >> frank lloyd wright also. vi i don't name my dogs idly, dad. >> "mad money" 6:00 p.m. eastern time the ceo of bookings, hanes, kellogg's and more back in two.

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welcome to another hour of "squawk on the street. i'm carl quintanilla with morgan brennan and david faber live at post nine. we got record highs again for the s&p, the nasdaq and russell 2000 yields back off on the front end and the vix below 15, the lowest since snooum 30 minutes into the

trading session. we have a lot we're going to cover but roku sliding earnings did beat but revenue and holiday guidance lower than what the street had been looking for thanks in part to a slow down in active accounts for its services those shares down 5% right now qualcomm surging, side stepping supply chain woes delivering earnings that beat the street. here is the qualcomm ceo moments ago. >> the reality is, if we look at where we are like today we had great q4 quarter but we're still short, as we're going to see supplies substantially improving at the end of the calendar year and into 2022, but there's more demand than supply. >> finally shares of moderna tumbling after the drug year cut its full-year forecast for covid-19 vaccine sales by $5 million. that stock down 14% right now. meg tirrell joins us with more

hi, meg. >> hey, morgan moderna essentially shifting some of the deliveries of doses into next year and that causing that shortfall this year now they're projecting 2021 product sales up $15 billion to $18 billion. it had previously been forecasting $20 billion for the full year and reducing the number of doses expected to to be delivered to 700 to 800 million down to a billion krigt a issues longer lead times for international shipments, temporary impact from a bottling expansion capacity ramp up and also the ramp up of product release to the market. they know in terms of revenue, the issue there being that there's fewer doses being delivered, but also they're delivering more to lower income countries this year and kind of shifting the pricing of those doses. so the more expensive ones into next year. they're recognizing less revenue. the company also forecasting 17

to $22 billion in sales for next year, and morgan stanley noting that could be a little bit light in terms of their capacity, they're calling the modest, thinking they have 3 billion doses in capacity for next year and they could potentially deliver, and jared holtsz, the health care strategies, pointing out that could be pressuring other vaccine stocks, you are seeing impacts to pfizer down 1% earlier, biontech down and novavax as well. whether we're starting to see the demand into next year starten to lighten biontech down 7% the question how long the vaccine delivers will continue back to you. >> all right interesting morning for moderna shares for sure. meg tirrell. a sign of the consumer recover bookinglele holdings reported strong earnings glenn fogel joins us with seema moody. >> thank you glenn, welcome back to cnbc. it's good to see you today.

>> hi, seema. >> interesting earnings beat coming off a big earnings beat gross travel bookings up 77%, versus the prior quarter a year ago. what does demand look like since the quarter ended now as we look to the u.s. finally reopening, orderers and allowing fully vaccinated travelers in next week >> yeah. we are very pleased with that third quarter and we talked a little bit about october, and it's interesting, we've seen a trend that was going nicely up, up, up, everything getting much better at the end of the month of october we've seen around the world, particularly in places like germany, russia, italy, covid cases going up and that's going to affect sometimes people's desire to travel, so obviously we have to be cognizant that we're not out of the woods at all it's not going to be a linear recovery we have to be aware there will be ups and downs but the trend, the long-term trend is really great and obviously allowing vaccinated people to come to the united states on november 8th

going forward, that's super for the u.s. travel industry >> there were a lot of families who told me they were going to book homes versus a hotel because their kids weren't vaccinated but now that ages 5 to 11 can get the covid vaccine, is that changing the types of properties travelers are booking going into the holiday season? >> it just happened so we'll see, you know, let's give ourselves a couple weeks to see if there are changes in the trends, but it's correct that people were concerned with children that were not vaccinated and wanted to keep them away intfrom other large groups, and it's good the other way, children carry the virus unfortunately too, so it was a good thing, and i'm so thankful for this nation to be able to get it out to kids i think every time we come up with some sort of new thing, whether the vaccinations for younger people or merck with new drugs, anything that comes out that helps get us out of this pandemic will help the travel industry.

>> meantime glenn, i wonder at what point do you think airfares or hotel booking rates are going to destroy some demand are we near the consumer revolting at some of these price increases. >> i don't think we're there yet. people's desire to travel is high we saw it, for example, when we announced in the u.s. that people could come visit if you're vaccinated from outside the u.s., people immediately started booking. i know there are a lot of people, and i speak with people, and they want to travel because people's ability to travel has been so repressed by this pandemic, so i don't think we're in an area where high rates would be there, airfares or hotels, going to say i'm not going to travel yet, because i can't spend the money the other things because of the terrible problem on the supply getting new things in, i can't buy what i want to buy so i will travel instead. we'll be okay for a while. >> glen, it's morgan, just to dig into that more, i mean i

certainly know a lot of folks that are going to come from places like europe for the first time in 18 months this holiday season, and it is that pent up demand i wonder just how robust the current quarter could be and what that will mean in terms of normalization into next year >> yeah. it's an interesting question we're all trying to figure out what is the next quarter and the quarter after that and what's summer 2022 going to look like for all of us. i thinks the right thing to say is, nobody really knows. we've all made lots of guesses, and i'm pleased when i say almost two years ago when this pandemic first started it would take years, not quarters to recover, we're almost into the third year of the pandemic we're going to be into our third year the thing we can all recognize, nobody knows the real answer what it's going to be, but we are hopeful >> you know, glenn, one thing we're watching in the ad market are companies that are holding back on some marginal advertising spend because they don't have supply.

i mean, i guess if you look at hotels or airlines and the labor crunch there, is there a similar dynamic going on >> well, i think there's definitely somewhat of a similarity in the sense that shortage of workers is definitely hurt in a lot of areas. we saw what happened with american airlines and weather related cancellations last weekend, but it also dealt with the shortage of crew in terms of the right place and we've seen this in other parts of the travel industry as well. hotels say i can't open up this section because i don't have enough records we own open table, restaurant business, we're very cognizant of the fact that lots of restaurants say i can't get enough help to open up more tables. this is a problem throughout the industry, and it's going to take time to work ourselves through all of these bottlenecks to get back to where we were prepandemic. >> that labor shortage there we spoke throughout the height of the pandemic. fast forward 18 months, vaccinations up, delta cases trending lower, restrictions

easing all of these different pieces of the puzzle are starting to come together what does it take to get back to 2019 levels? are we looking at a full recovery in spring, summer of next year? what are you seeing? >> well, i think everything you said is great. it's wonderful it's wonderful always things you said are happening. the rate they're happening is obviously we would like it to be faster but some parts of the world like asia, for example, where the vaccine rollout was slow, let's say, is picking up, and it's great and we've seen a little bit of that in our business, but i don't think you can say on this date is a date we're back to 2019 everybody can throw a dart and guess, i have my dart too but i'm not going to talk about now, we're hopeful things will get better but recognize we've been thrown curve balls by the virus in the past and there may be another one downs the road we don't know. >> understood on asia. planning on booking our honeymoon but with the

restrictions in place we'll hold off. europe improving, waiting on asia business travel as well. glenn, it's good to see you. thank you for joining us on all things travel. glenn fogel, ceo of booking holdings. >> thank you, seema. >> thank you as well meantime the fed announcing it would begin tapering the pace of its asset purchases this month. steve liesman has the details and always a lot more for us as well steve? >> yeah. david, good morning. a lot more the federal reserve getting help this morning from the bank of england which surprised investors with a decision not to raise interest rates the u.s. two-year yield declining on the news this morning at around 43 basis points it had been north of 50 basis points 43 right now had been north of 50 this week as markets began to price in fed rate hikes next year what the fed delivered yesterday an expected decision to reduce monthly asset purchases, the taper, a continued but evolved definition of transitory

inflation, and no comment either way on interest rates. the taper is going to begin this month. $15 billion monthly. they preannounced they would do it in december $10 billion of treasuries, $5 billion mortgage backed securities and the fed continues tapering in coming months. the amount of taper can be adjusted if the economic outlook changes leaving interest rates unchanged at zero but jay powell saying tapering will put the fed in position to adjust policy if needed. >> inflation persisting and we have to be in position to address that risk should it become really a threat to -- create a threat of more persistent, longer term inflation. that's what we think our policy is doing now >> the boe decision helping to ease some of the expectation for rate hikes june trading at a 52% probability, higher than before the meeting, down from yesterday afternoon. near certainty of the first rate hike in september and a 64%

chance of a second hike by december while transitory originally meant that the inflation would be ease something time this year, powell announced that could be well into next year when supply bottlenecks work themselves out if they don't and inflation stays high, powell saying the fed will use its tools to address the problem. back to mr. faber. >> thank you, mr. liesman. do want to focus on shares of electric truck maker nicola this morning the stock up 10 percent. saying it reserved $125 million for a potential settlement with the securities and exchange commission it's been working with the agency to resolve charges of disseminating false and misleading information the charges had been made against the founder. he is trevor milton. this has been separate from the actions taken against him, but you can see, morgan, it is having a positive impact on shares of that company. >> it sure is. as we head to a quick break, our road map for the hour.

we have a deep dive on the state of the consumer. the ceo of dine brands behind ihop and applebies with us. >> the ceo of hanes brand talking supply chain, commodity prices and more. >> and kellogg's ceo steve cahilane on his company's worker strike, earnings and more. huge hour ahead as the dow is almost back to the flat line. 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 parent company of i hop and applebee's signaling no

disruptions to the business due to covid-19 for its fourth quarter in an earnings beat. joining us john peyton off the earnings call. it's great to have you with us and thanks for the time. >> good morning, carl. i appreciate being here. we did have a terrific quarter and we're particularly proud of the fact that for the second quarter in a row, both of our brands beat the competitive effect they gained market share fort for the first time -- >> i was going to say the comp alone at i hop 40 is eye-popping, ahead of the category itself. what do you think is going on specifically with trends at ihop >> so for ihop, you know, its growth has been accelerating and benefitting from americans beginning to return to normal. our weekday breakfast is now at 2019 levels. our weekends are at 2019 levels. because of the labor shortages,

i'm sure we'll talk about in the next few minutes, we've got late night, evening hours not staffed and that's what's lagging. americans have returned to breakfast in mid afternoon during the week and on weekends and that's what ihop is benefitting from. >> since you brought it up, the labor component and some of the parts difficult to staff, what happens in those cases? are you shutting some restaurants for a certain number of hours and do you think there's a wage out there that will bring people in because it's obviously been tough. >> carl, the labor issue is probably the number one issue i'll tell you that keeps me up at night, and it's really tough because it puts so much pressure on our servers, for example, who have to cover extra shifts or tables the hours that we can't staff directly affects the profitability and the revenue of our franchisees. nationwide, across both ihop and applebee's we're at about 85% of

being fully staffed. that's unchanged from the prior quarter. most of those hours tend to be the late night hours for both ihop and for applebee's and so we're doing two things we're being very realistic about the short term and investing in recruiting and most importantly retention, but at the same time we're beginning to ask ourselves, is this the new normal and is -- are these levels of labor and the difficulty in attracting team members to our restaurants and restaurants in the industry, is that what it's going to look like the next couple years we're beginning to invest and study robotics and a.i. and other efficiencies so we can plan for the future as well as what we're focused on right now. >> that's really an interesting point you make, john and it raises the question, what do you think is causing the labor shortage right now what do you think your biggest competition is for those workers in this economy? >> yeah. morgan, that's the million dollar question, right, we

assume that perhaps when the federal stimulus ended, that workers would come back. that hasn't happened so that's where we're beginning to think this might be a long-term phenomenon what i think has happened is during covid when people were furloughed or had more time on their hands, they rethought their careers. some of them have gone to amazon warehouses truck drivers who were 55 or 60 years old have decided to retire the gap for other retailers have raised their wages it has become competitive as people have rethought their careers. and that's why we want to make sure we're not caught flat footed, thinking about the long-term implications of what we're seeing. >> it's interesting as well. so how much have you raised wages, if you have have you have you considered close something of the restaurants during the period you don't have

the labor to staff them? >> we're at 98% franchise system so when it comes to raising the wages of the team members who work in the restaurants, that's the decision of our franchisees. i can tell you across the country, whether staff in the kitchen or front of house servers and host and hostesses, they have increased wages $1, $2, $3 depending on the market and they're offering signing bonuses and hiring bonuses for team members who might suggest a friend or a family member. when it comes to closing restaurants the answer is, the labor shortage is not that acute. as i mentioned, it's 15% gap to where we really want to be, and it's really affecting those later night hours for both brands our restaurants remain profitable and you can see from our results that americans love these two brands that deliver great value at a time when value

is really need so this isn't about closing restaurants. it's about working extra hard, for the late night hours. >> you just mentioned value. certainly one of the key things of this earnings season, particularly for this industry, has been higher food prices as well so how are you navigating those commodity costs and what does that mean in terms of pricing in the restaurant >> yeah. so food cost is probably the second thing that keeps me up at night and there, too, we're trying to be as prudent as we can. so, you know, typically what we're seeing is about 6% commodity costs increases so far this year with about 10% in this most recent quarter. historically, our franchisees raise menu prices about 1% to 3% a year and what we're seeing now is much closer to 3% but that still enables us to deliver value to our guests, you know, particularly when inflation is 6% or more and the

point i would love to make is, despi despite the fact that we have fewer workers in our restaurant and our menus are higher, our guest satisfaction scores have never been higher, prepandemic levels, which tells me that number one, our team members love serving their guests and also tell me that americans are graciously tolerant and understanding of the strain on restaurant workers right now. >> yeah. i think maybe some of them understand the dynamics driving it and hopeful that they are transitory as we've been saying for a few months now, john we'll see. thanks so much for shining a light on the quarter good to see you. >> good to see you as well. ea and take two interactive, those stocks higher after the companies did beat analyst estimates. remember, activision, one of the other competitors, very bad day after earning.

another name in the green this morning, vista outdoor reporting record results you can see what that is doing to the stock which is up 100% since the start of the year. we're going to break things down with chris metz next. at t-mobile, we believe you shouldn't have to choose between the most 5g coverage and great value. so we unleashed the 5g experience on magenta max. with 4x more 5g coverage than verizon. and unlimited premium data. only at t-mobile.

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welcome back to vista outdoors shares surging after reporting a beat of 10% right now. joining us ceo chris metz. thanks for being back with pus even as we've seen the sales of some pandemic boosted businesses begin to wane in recent months, the demand for outdoor activities continues why do you think that is what do you attribute that resilience to? >> good morning, morgan. appreciate being back on and excited to talk about our business as you highlighted in the preview we're up 100% year to date on a stock price, 10% today, and kudos to what i think is the most talented workforces in the industry and the demand continues because people have discovered or rediscovered outdoor enjoyment and the gratification from recreation. we're the biggest in the industry so we're supporting the trend. >> yeah.

i mean, we've been hearing about shortages in parts of the country for ammo, ammunition sales were an area of strength up over 50% year on year can you make enough to beat demand >> that's the problem across the board. it's no secret that with vista supply chain, all sorts of challenges from a material and a availability standpoint, but we're working as hard as we can. we're continuing to work overtime, continuing to higher more people, to produce all of our coveted products, and demand outpaces our ability to supply at this point. it portends for continued growth as we go forward. >> you don't sell guns you sell ammunition. firearm sales reached a record background checks and purchases are robust right now. a read to your shooting sports business what do you attribute that to? >> what's interesting, morgan,

the amount of new entrants to the industry is what's driving it's a diverse, much more inclusive industry we've got hunting licenses that have grown to a level not seen since 1958 and it's trending younger and more gender diverse and people are just embracing the movement we've seen this continuing what's interesting it's a broad array of calibers so sports shooting where you're using shot shells, we can't make enough of them, all the hunting calibers we can't make enough of them the ep joimts from shooting guns draws the demand. >> i imagine politics plays a role when we've seen a democratic president in office you tend to see demand for firearms and thus ammunition increase as well. we just had an election season that was very focused on safety and crime on both the local and state level just in the last

couple days. now questions about whether that changes the composition of congress next year would that affect the conversation we're saying in i realize we're still a ways off. >> what's interesting, morgan, the increase that we've seen in shooting sports enthusiasm started is a year before president biden walked into office or a year before he was the nominating candidate for the party. politics could play a role in it and that may increase demand more, but what we've seen to date is a general enthusiasm for shooting sporptsz wsports we've got ten brands that are contributing over $100 million in sales each and ammunition is three of the ten brands. there's another seven in the product segment growing as well. >> yeah. certainly growth across the board to your point. thanks for joining us today. stock is up 11%. chris metz. >> thanks, morgan.

let's get a news update. sue herera has that for us. >> good morning, morgan. here's what's happening at this hour, everybody. more than two-thirds of the nation's workers will need to be fully vaccinated against covid or tested weekly by january 4th. that is the deadline under new federal rules stemming from president biden's executive order in september details are being released this morning. private sector employers with 100 or more workers face fines of nearly $14,000 for each employee if they fail to enforce those requirements britain is now the first country to clear the use of merck's covid treatment. the pill has conditional authorization for adults who have tested positive and have at least one risk factor for developing severe symptoms with children aged 5 to 11 now eligible for the covid shot, there are long lines at a vaccination center at the indianapolis motor speedway. and in just the last half hour, word that an analyst who

contributed to a collection of possible links between donald trump and russia has been indicted "the new york times" says the arrest of igor dan shiancoe, primary researcher for the steele dossier is part of an investigation. no more details yet but following the story for you. back to you. >> thank you >> still to come this morning, a check on the consumer with the ceo of hanes brands esfrh off their q3 results as we got the s&p 4680 we're back in two. alright, here we go, miller in motion. wha — wait, wait, is that a... baby on the field?? it looks like it, craig.

and the defensive linemen are playing peek-a-boo. i've never seen anything like that before. harris now appears to be burping the baby. that's a great moment right there. the ref going to the rule book here. what, wait a minute! harris is off to the races! we don't need any more trick plays. touchdown!! but we could all use more ways to save. are you kidding me?? it's going to be a long bus ride home for the defense. switch to geico for more ways to save.

hanes brand shares are a bit lower. comp prices near a ten-year high joining us to discuss inflation and the consumer impact is steve bratspies. on the call you said, consumer demand for your brands is strong around the world manufacturing of your product hasn't been an issue and you have a diversified supply chain which is a competitive yapds vang, not to mention you have

inventory. sounds good. you not seeing the impact then that many others are from supply chain disruptions or potentially inflation? >> good morning and thanks for having me. yeah, we're really pleased with the consumer demand for our business really pleased with the performance of our supply chain. we have the inventory. we are susceptible to the same disruptions that others are. supply chain challenge and for us it's transportation part of the supply chain we have the inventory but getting it to the right place at the right time and starting to see the inflation costs flow through and we'll see those going into the fourth quarter but the team has done a nice job with offsetting those and the consumer demand continues to be there. we're really pleased with the strong quarter and we think that momentum will continue into the fourth quarter >> yeah. and i think margins were also stronger than many anticipated on the cost pressures i'm curious, and this goes back to

the larger debate that many of us have in the financial markets, do you see them continuing into 2022, and if so why? >> we do see them continuing into '22 they're going to takie take a while to work through these costs early on cotton, that's a part of our business we need to manage closely, mid single digits percent of our cost of goods going forward, bought out into the second half of next year so we have pretty good control of it i think costs will continue and take a while to workthrough th supply chain challenges and costs to mitigate over time so we see them continuing into 2022 >> steve, it's morgan. i realize your lack in comps, strong demand for ppe and starting to see the demand of the normalization not only in your business but across a number of businesses this earnings season. perhaps it's overshadowing sales and the rebound there. stocks in underwear, is this for

return to office >> the socks and underwear business has been strong if you just look back through the quarter, going back to 2019, our underwear business is up 25%. kind of off a normal basis if you will the business continues to grow people are stocking up we're seeing more we call the it drawer loading than we've seen in the past with people having more units in there. the underwear business continues to be strong is it tied back to office or not? i'm not sure if you go back to even the back half of last year, our underwear business recovered quickly because we had the inventory to sale that many others didn't i think that business will run strong and seeing new innovation in that space. our products are well received we're leaning in with marketing behind them and the categories listed this year, year to date, the underwear category is running up 25%. we're running up 35% year to date in underwear. i don't think those are going to continue those growth rates going forward, but there seems to be a tailwind in this business that

we expect to continue going forward. >> steve, there was some news on the wire yesterday that a lot of vietnam manufacturing facilities, especially those that support nike, were back up and running after they've had troubles and there's this lingering conversation about so much inventory in the pipeline, that what happens if you wind up with some gluts in q1 of next year do you think that's remotely possible >> sure. let me start with vietnam. we have a strong presence in vietnam, which has been up and running throughout the pandemic. one of the great things about our team is they've kept us up and running. we've produced 25% more units this year than we had planned at the beginning of the year and our production in vietnam, thailand and production in central america has allowed us to operate well and continue to drive innovation -- sorry inventory as we go forward we think it's going tocontinue to flow. is there going to be a glut?

i don't think so it's about timing and you have seasonal product and basic product. we look at it flowing through. it's choppy and not necessarily always in the right place at the right time, but the consumer demand is there behind it. we've seen the benefit of that as we've gone through the year and we expect that in 2022. >> speaking of inventory, on the call you said about 30% of your inventory right now is in transit. i think i heard that is that a typical number or is that higher and reflective of the transportation issues you were discussing? >> it's higher than normal the 30% is a correct number. on a normal operating basis you would see us at 10%. we have more inventory in that stage in the pipeline right now that we're trying to move through and get to the right place at the right time. it's higher than a normal operating cadence we would like to see. >> anything you're trying to do to mitigate that you say the pressures will go on into 2022. are there any fixes you can

identify or a matter of time >> honestly, i think it's a matter of time it's going to take time. we're working very closely with our transportation partners, as everybody else is, to try to move it as quickly as possible i think it's going to take time to work through. i looked at us in a go ahead position that while we're struggling to get in the right place at the right time we have the inventory and that's a differentiator for us. i actually am glad we have the inventory we have, i'm okay with that in transit number being where it is. we made a decision in the year to increase our production because we saw this coming i think it positions us okay for the fourth quarter and the beginning of next year, but david, i think it's going to take time to work out. >> finally end on margins because i mentioned they were fairly good. gap gross margin 39.1%, up 530 basis points cost savings i would assume is the key to that. can you keep that going or sort of hitting kind of a wall? >> yeah. so while we're going to try to keep it going, what i would tell

you is a couple things happened. cost savings efficiency, great job by the team, thank you very much for their hard work there's the inflation and the cost increase. some of the things we anticipated hitting us in q3 have hit later going to be pushed into q4 a little bit. the pressure in q4 is going to be greater than the pressure we're seeing in q3 we're going to work hard to keep the margins going. >> all right steve, appreciate you taking time thank you. >> thank you for having me planet fitness raising full year guidance. those shares are higher this morning up 9%. we're going to check on the recovery with the ceo of kellogg's in just a few minutes in our consumer focused hour stay with us.

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we're taking a look at the health care sector spider fund, xlv. a few key holdings on the move this morning down about half a percent the right now. the etf is down about half a percent right now. moderna shares still under pressure after the company lowered guidance for its sales of its covid-19 vaccine down 16%. merck, though, higher after the uk approved the antiviral covid-19 pill. first country to do that which could be taken at home to reduce death and hospitalization in higher risk patients up 2%. regeneron beating estimates on tonight and bottom line thanks to strong sales of its covid-19 treatment, antibody cocktail those shares down slightly, though anime otme tanher earnings mover, kellogg's the chairman and ceo will join us next. stay with us. ♪ ♪

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kellogg's shares down about a percent after q3 earnings did beat estimates, it was at a one-month high

first on cnbc kellogg's ceo steve cahilane welcome back always good to have you. >> great to be with you. >> the market hungry for examples where a company can make up for increased input costs through better mix and pricing and sounds like that was your story. >> yeah. it was we had a very strong quarter we drove volume and drove price and we drove mix, and our brands held up very well despite all the supply chain challenges and that's what we've been doing we've been investing in our brands and making sure they stay relevant with consumers and allowed us to have a big quarter like pringles, cheese it, our international brand, highlight on africa, our europe business had 16 consecutive quarters of growth, really outstanding performance in the uk. but as you pointed out price mix was clearly an important driver for us. >> how sustainable is that over

the coming quarters? >> we think it's sustainable we've been investing in our brands and innovating, and it's been driving very good performance in market and with our customers. there's obviously a lot of supply chain challenges and things to overcome, but when we look at where we've been over the course of the last several years, more and more our snacks business especially stands out and has been driving sustainable, dependable growth for us, and we see that continuing. >> let's talk about the labor piece of the puzzle right now. the fact that your workers that are unionized striking have rejected the most recent offer you put in front of them what is it going to take ato see a deal manifest? >> you know, we put the most reasonable assumptions in, that we come to a deal soon what i say about that, we're still in negotiations whit our

people and we want our people back they performed heroically throughout the course of the last 18 months the workers are specific to our four u.s. cereal plants and they have right now a contract that's expired that has industry leading wages an increases in compensation. so there's no take aways despite what some may have said, there are no take aways. it is an excellent offer we want our people to see that offer. we want our people back. and you know, we're working very, very hard to make that happen and you know, we think that cool heads and reasonableness hopefully will prevail and we remain absolutely committed to making that happen again, it's increases on top of what's already industry-leading compensation and benefits. >> steve, it's david if i recollect correctly, last time we had you on when we talked about inflation, you sort of indicated you can call it transitory but my book

transitory is going to be for quite a while. i wonder given what you're seeing right now, what your ex expectations are and whether they've changed broadly speaking inflation? >> i hate to have been right on that one but transitory is for some period of time and so we don't see any kind of mitigation in commodity pressures, in cost pressures and what you're seeing is all these friction pressures, you know, logistics, all things supply chain still being disrupted. and so, we're planning on it continues for the foreseeable future so we're not preticketing an end to it. and we're looking towards productivity and revenue growth management as a way to mitigate and protect our margins going forward. but clearly 2022 will not change magically with the turn of the calendar and so, we're forecasting and preparing for on going challenges >> and how does price figure into that equation >> well, price is important. price is one of the levers for

us and you know, we don't talk prospectively about pricing, but when you look at what we've done over the course of this year, we've been ahead of it so we've been able to cover all the commodity-types of costs that we have seen and we do that through price. we do that through mix we do that through assortment, all sorts of things. but what we really try and keep at the center plate is our consumer and making sure that we're driving value for the consumer so, as we need to take price, we talk about the right to take price or the deserving of taking price, asking consumers to pay more because we're giving them in terms of innovation, in terms of value >> couple questions on breakfast. we've talked to you in quarters past about sort of the work from home element, how that leads to more snacking. i wonder if, in fact, we start to see workers going into the office at a greater pace, beginning say in january, what that might do to some of that snacking and breakfast business.

>> yeah. we think it'sgoing to hold up. i mean, people aren't going back to the office very quickly we've seen in the international markets where they have gone back quicker some of the occasions that we've been able to win, we've been able to keep and so, you know, we've increased household penetration but more importantly, and for us, what we've done even better is increase buy rates. and so, people have enjoyed their snacking occasions the snacking occasions is what's been added to the mix of the way people eat where we see the softness is on the go occasions which we are performing very well in prior to the pandemic so, as workers go back, as they become more mobile, we think that some of the things that we'll lose in terms of at-home snacking and at-home breakfast will pick up in some of our portable snacks and on the go snacks that's what we're planning on. we're forecasting gradual return to the office. and we think it will actually work in our favor in terms of what we're able to keep sticking at home.

because at-home will still be greater than 2019 but as on the go picks up, some of the insistments we've been making in the past on the go occasions we think are going to be very promising. >> that's interesting. the other interesting debate this morning, getting quite a bit of news coverage, is about milk prices. and the way they are up off the lows although not quite as bad as they were several years ago but i wonder if there's a negative halo effect if the price of milk gets to a certain point, whether or not cereal category does start to get dinged >> you know, we've been able to perform as a category through the ups and downs of milk, obviously a commodity that does go up and down and some of the versatility that cereal brings to the table is really important in getting past that and people are now, you know, enjoying cereal with so many different types of milk. obviously plant-based milk as well as cow's milk and cereal is a snack. so i think you'll see us for sure look to different

opportunities to drive occasions so that we can mitigate any kind of complimentary rising milk price would bring. >> steve, earlier on in the show we were having a conversation around the restaurant industry and investments in automation that are coming to that industry given the conversation we're having with you now about lever and about supply chain, are you making those same types of investments where your manufacturing is concerned >> yes so i think the whole way that work is done is really important topic. and obviously that includes the way work gets done in your plants and our factories so in terms of automation, that's something we were investing in prior to the pandemic and will accelerate now. so, the digitization of factories is something that is happening. it will give us the types of resilience we need to continue to operate where there's so much friction so you don't want to invest for the current moment because that moment will change

but we are clearly makes the types of investments necessary to make our supply chain more robust and resill yant and able to pivot faster in the future. >> all right that's definitely the recalculation being made across corporate america for sure steve, always appreciate you helping us understand the quarter better good to see you again. >> good to see you thanks very much. comments out of treasury on crypto currencies is eamon javers has those headlines for us hi. >> yeah, that's right. the treasury department laying out this morning its concerns about crypto currency and a blueprint for regulation that might be to come deputy treasury secretary speaking to a block chain conference hosted by chain analysis this morning in new york said there are three areas of concern for the treasury department first on consumer protection that is fraud and abuse as a result of crypto currency. also he said financial stability. that is making sure that stable coins are actually stable and

then he said there's a whole group of concerns around national security, the idea of terrorist financing, ransom ware and the like but he was at pains in his remarks to the industry this morning to say that the treasury department is not going to come in here with a heavy hand. take a listen to what he said. >> there's a belief to be frank that we're at odds that treasury conceived as ransomware a problem with crypto currency and that in order to stop the former, we must severely restrict what happens in this industry when we regulate rather, it's with an eye towards trying to foster innovation that creates economic opportunity and advances u.s. financial leadership while stamping out crime, abuse and risk. >> so that idea around innovation, i think, is something that will be heartening to the crypto currency industry to see that treasury recognizes benefits to crypto and innovation how that can help the economy an interesting jousting and

positioning here between treasury and the crypto currency industry as they look ahead to what might be coming next in terms of rules of the road, guys back over to you >> thank you eamon javers as you take a look at the cryptocurrencies. did want to focus yet again on shares of nvidia, which are up 8% or had been and you know, as i tweeted earlier, it's eclipsed $700 billion in value and morgan, when you take a look at the stock over five years, you get a sense as to how you really can create wealth with a good investment the enthusiasm recently seems to be around its place in terms of providing a lot of the backbone for the so-called metaverse, which we've been talking a great deal about we've been talking about it for months but more so recently after, of course, can i still call it facebook facebook's recent call which devoted a lot of time it to not to mention the $10 billion that they're spending to help create it at that company. >> yeah.

this is definitely significant move for this stock today. we've got more breaking news out of d.c. for that we tune to e. we have new estimates how much the tax plan will cost. it shows that democrats are to raise $1.5 trillion through new taxes over the decade that includes 814 billion from corporate tax hikes, including that new corporate minimum tax and the tax on stock buy backs and $640 billion individual tax increases including that millionaire surtax we'll see if this new number is enough for moderates to feel comfortable voting for this bill, but we now know estimating $1.5 trillion in new tax increases. guys >> thank you the developments keep coming out of d.c in the meantime, it is another busy day for earnings. we're going to leave it there, though that's going to do it for "squawk on the street.

no, we're going to keep chatting >> what's interesting in the last hour is just hearing so many of the different macro issues we talk about being addressed by the ceos, labor issues at ihop, commodity prices at kellogg or hanes brands or trucking and logistics fascinating to get that view that will do it for us on "squawk on the street. let's get over to "techcheck." ♪ ♪ good thursday morning and welcome to "techcheck. i'm deirdre bosa with carl quintanilla and julia boorstin jon has the morning off. today qualcomm surges. plus earnings take two and etsy. then, ford wants to beat tesla at its own game. the cfo will break dow