it was below 1.5, on the way to 2% i'll see you tomorrow? >> see you make sure you join us tomorrow "squawk on the street" is up right now. >> good monday morning, i'm carl quintanilla loopialong with davd faber. cpi wednesday could be the main event dow gets the big infrastructure boost of the by shares of tess that this morning

are sliding a bit. elon musk asking his twitter followers if he should tell 10% of his stake nextdoor making it's view. first up, though, cat, nucor, u.s. steal which is now awaiting the president's signature. we'll watch duke, vulcan, and a bunch of other names >> would call this the things were office. what do we guy and then a considering period where you would sell today >> no, we come in, nucor has been up day after day after day.

weren't going to do a piece on "mad money", no, it was too obvious, but obvious wins in this market. -- sorry, didn't mean to bother you. >> >> i was liking up acom, because -- >> it's infrastructure there's terms potential beneficiaries if your business is helping dig stuff up. >> that's why you buy the pave etf. when reagan was elected, he said he would build a 600-ship navy you can go buy a company that had to do with the navy and make money. i said, this is ridiculous everybody knows this is going to pass how can you buy ingals

ship-yard? carl, we are there comcast is up a bit -- maybe we should just guy everready, lucid, fisker. broadband access >> i was trying to figure that one out. people make money today, and tomorrow we forget about the infrastructure bill. >> that may or may not be true having a nationwide ev network, where you can go charge your car is pretty vital if you're going to increase the true ownership levels of ev. >> some of these company versus

a 00 charger, 800. >> but there will be as much as $5 billion allocated >> ev go, charge point what i'm saying is shouldn't you have bought charge point last week >> it does seems somewhat obvious. >> yeah, captain obvious >>. >> the didn't stop talking about this thing. it was endless >> they could have passed it months ago, at least >> many people did realize it could pass the -- >> so they're going to go up today, and down the next few weeks? >> that's my point.

>> i was just going to clarify >> some analysts say, listen, next year, the earnings will be cut in half. they hate the steels, they love the steels, then hate it it's a ridiculous market goldman last night said that they're optimistic about supply chain bottlenecks, but this morning in a note says, at least cpi -- core cpi is going to get hotter before it cools down. >> used cars are just hard to find carvana can't find them. there's a shortage of cars i bought a car, i didn't like it, they took it back.

i said i didn't like it. >> take it to costco >> costco is doing well. let's take boeing. there's international travel, that's another obvious one do we think international travel is never coming back how can the market be so stupid? like, how can nothing -- i mean -- new investors have come in, not the robinhood/dogecoin people like cruise ships. everyone news cruise ships were doing bev. if you had done any homework, you would have known every one of necessary how is that possible [ laughter ] >> no, honestly, david. >> basically you're saying where have you been? >> everybody wakes up every day, it's a new days, i was going to

buy trade desk >> somehow this happened to you in the past, you are running your hedge fund and you thought, i can't believe i bought any of these, because it was so often now i feel like an idiot >> most of the big money managers come in and say, you know what? hyper inflation. i come in and say -- how was disney's movie $70 million, okay, i'll buy disney huh-uh i mean, honestly, it could be this stupid. can it >> of course it can. >> why does ethereum go you will every day? >> all-time high today let's squeeze in tesla what a weekend given the poll from elon musk the policy saying, yes, tell

10%. robert frank saying it's because of a big tax liability. >> how did you vote? >> i voted he should sell. my wife said, have you voted yesterday? i said, what vote? we haven't mentioned his foul tweet to ron wyden. onin you have seen it. >> no, i haven't go back and look >> because of this huge amount of options that are coming due that he has to exercise $6.24, by the way, is a strike -- >> didn't you think it was done? >> it was almost 10 years old, but that's the story >> it just shows -- by the way, 54% in california, because he earned this when he was in

california, so federal plus the extra 3-point something, plus california, 54%. >> wow >> he's left with so little after this. >> maybe another reason, he may contribute money toward a food bank that could contribute a very high base of stock to get the charitable deduction great, by the way, for him, but it will offset some taxes. >> you did not vote? >> i did not >> it's not like democrat or republican >> several million votes >> i thought i had to vote, because it was your duty as a citizen to vote. >> did you get a sticker "i voted" >> i only voted once. >> it doesn't matter, because you know he has to sell the stock. >> i felt like i had to do

something. >> do you feel like you were used by elon >> no more than nextdoor uses me you or i has been up every day. we're going to talk more infrastructure, have an exclusive with ramon lagarda more we'll be back. i promise - as an independent advisor - to put the financial well-being of you and your family first. i promise to serve, not sell. i promise our relationship will be one of partnership and trust. i am a fiduciary, not just some of the time, but all of the time. charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals.

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with a special gist. hi, diana. >> their supply chains, their labor forces who better to talk about that than the ceo of pepsico, ramon laguarta tell us why you are personally here at cop26? >> listen, we made a big commitment about a few weeks ago within net positive, our number one goal was to become net zero by 2040. that's a big ambition for pepsico. to do that, i need everybody

with me, the full ecosystem, ngos to provide me with knowledge and implementation in the market i nigh policy makers with me to hell me transform my company. i need partners in the supply chain, other peers in the industry to scale to new technology this is a unique place, where we can meet in three, four days, all these parties to make attraction in what i think is a super-important topic for us on the other hand, i want to send a signal to my people, my own associates when i'm here, they see that climate is critical to us. they get the message you know we get a lot done, but we also send signals to our people this is very relevant for pepsico and our future. >> these are all wonderful

goals, but there's a green premium to it all, an extra cost to your bottom line. what do shareholders need to know about the cost you're going to put in to get carbon zero by 2040, whether it's in your food or beverage? >> we see this journey as a mitigation for our company as i said, we're an agriculture company. agriculture and weather are very related. if we don't do this, we'll have problems down is the road. we're doing mitigate with matter we're quite intel gent to understand where water and weather will be in the future, and we're starting with mitigation strategies. but i think this is a major. >> major grown, if i can get my consumers to prefer my brand, because i'm somehow more environmentally friendly and convention them that's the way

they want to liver their lives, i will be very successful so. >> i have this that i was showing earlier. this is a product we sell here in the uk. it's 100% recycled we do this in western europe all across this product is 40% less gas, if you want polluter, than the same pepsi product in 100% virgin plastic. now the next iteration is to have pepsi products in sodastream that's the ultimate zero pollution kind of consumption model. that's how we're trying about the value for the shareholders is in creating value for consumers. i think that will be preferred because of this trumpation we're making. >> i want to get to the carbon credit markets next, but jim

cramer has a. would you be buys somebody's trucks who use hydrogen? what is your plan? >> transcription is about 10% of our overall, so we're looking at different solutions. we're already starting to buy electric trucks, actually, from tesla. i don't want to promote anybody, but that's the brand we are using so far

our first delivery is q4 to make this pivot, we hope the technology will go down, to make this transition, i need clean energy, even if the cars are electric, still they're very pollutant if we don't change -- what i was saying earlier, we need policymakers to pivot our electric grid to clean electric grid, so electric vehicles can be zero pollutant. that's the journey for us. you're right, trucks are a big component. >> i didn't know your deal with tesla. tesla might be an opportunity. i didn't know you had this good relationship with tesla.

we're working with different providers around the world yes, tesla is a partner of ours for this particular solution. >> i wanted to ask you about the carbon credit markets. a lot of negotiations will be centered on that this week obviously cap and trade very important for you to get to net zero what do you want to see? what is wrong with carbon credit trading right now? >> yeah. >>'s pepsico, we need to start pricing into our -- every company's cost structure, carbon, unless we -- we will not make the right decision. so we are in favor of carbon markets, and putting a price to cash unthat allows us to make the best decision now.

now, what we would like carbon markets to be is a way for companies to delegate their responsibility to reduce their carbon emissions and just go after offsets. i think the firstresponsibilit for our companies, which is the way we're approaching it is to work with your supply chains, with your farmer, to our port portfolio, and then go into the, you know, aushen markets to that last part that can you not offset in our case, we're thinking about insets, so we're thinking about helping farmers with their carbon, and by helping those farmers, we're going to reduce our own emissions. it's not offsets, but what we call insets. >> reporter: you talked about innovation and -- some of these startups here in carbon capture, other types of technology.

can you name any names of who you might be investing in? >> we're talking with a lot of them the big areas of technology we need in pepsico is measuring carbon and helping farmer. the other big area where we're doing a lot of work is on a new generation of materials for packages so there's a marine degradation of our packages, that is a big area, where we're putting a lot of r&d resources, where we need the ecosim to scale them up. those are technologies that initially will be more expensive, eventually could be as affordable as our current packages solution, and then a meaningful impact on the planet in the carbon emissions and the marine life. that's a big focus area for us. >> reporter: i can't talk about this forever, but we're out of

time ramon laguarta, thank you for joining us still to come this morning, we'll get cramer's "mad dash." a busy week ahead with plenty of earnings and, of course, cpi on wednesy. ia memontda

that growth at any cost mentality is what's damaging us in terms of areas like social media. nextdoor's ceo at the women's summit last month. a few moments from now she'll

ring the opening bell. later this hour, sarah friar will join us, the ticker kind. don't go anywhere.

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all right. let's get to it, jim and the mad dash here, as we count down. the first trading session of the week ahead nvidia captured the imagination of a lot of investors last week, perhaps it had not last week having it surge up some 128% this years >> we were talking earlier about the obvious market he is, like -- >> it's an annual keynote that he gives. >> we don't know if he's going

to talk metaverse. it takes me maybe three hours to read you have to constantly google back and forth, because he's just not -- we're not of him he's at another level, about you it's a great teaching lesson i think everyone will love it. >> that's tomorrow. >> yes it will be the most entertaining thing you have ever seen in technology you will learn more from his speech than if you went to stanford for 72 years. >> even at this leave, and you have been obviously positive on nvidia, still like it? >> very much so. he likes to talk about solving something.

i said, why do you do this he said why wouldn't you did you think about landing a man on saturn? you'll love his key depend note. >> there is the opening bed nextdoor celebrating its listing via spac over at the nasdaq, it's broadcom what a week. we have a data center event at amd. >> that's high performance computing, something that the milan offering -- lisa sue picks these italian cities to try to -- so it's going to be -- >> kind of like apple does with operating systems? >> yes, it's a aggreat guessing

game >> these are people who have become rock stars. >> but also, with the exception of one company all machines are made -- >> here? >> yeah asml is dutch. we've been blocking asml from selling to china taiwan seems to be taking -- i

mean, china taking action against the deal it's 51 jobs the communist party. >> which deal are you talking about? >>. >> j.o.b.s. is the symbol, so it's easy to remember. it just gets crossed that was the whole point of the segue. >> it took me a minute to get there. >> >> there is a lot going on, but the attention will be stolen thorn by, jim, as we said at the top. uri. >> people have rocks in their heads to buy these everyone knew this when we were going over the piece this weekend, i said, it's just too

obvious. we can't talk about the rock stocks david, it's rock, but we call it ago re gatt. >> by the way, i didn't know pepsico was an agriculture company. that was news to me. >> i thought it was a snack. >> corn syrup. agriculture. >> monday olease. and there is a look -- apparently. >> we're all agricultural companies. >> can we talk about softbank for a moment >> get the snow shot ready the blizzard >> there were significance losses, but to jim's point, a lot of people knew this. it was fairly easy to add up what might have been sizable losses in value for some of the

private and/or publics that they own there, given the crackdown we've been talking about in fact, on the other side of it, some education companies will be allowed to operate in some fashion. >> really? >> though only from tutoring adults, not children that part of their business will be nonprofit alibaba, you can take a look at as sort of a proxy for a lot of it many of them are coming back, but that's been over the last six weeks a bit of a rye bound. >> he said it was like a big winter snowstorm >> you're right. >> he gives you a lot.

he's in there for a long time. he did say we're in the middle of a storm yeah >> maybe we should prep for it >> there have you been plenty of times he took risks where you throw your hands up, but he's been proven time after time, a year and a half ago, things didn't look good, either and if you take a look at softbank stocks over a long period of time, you'll see a return of capital, so many other things that they have exited, many of the operating physicians that they had, and they truly are much more of an investment com

company. >> this has not been a big year for the stock. it's been a did you haver year by the way, we keep putting it up it's not really moving >> in terms of obvious -- i mean, we've got the president says, listen, when you do travel -- you would think it will already be up american express gets another lease on life. >> urn talking about obvious themes, airbnb an eight-month high uvl a four-month high? remember the obvious stuff summer is coming, let's buy brunswick. >> nothing wrong with having a market like that where obvious

stuff is happening. >> there's always a chance it could have gotten canceled at the last minute. that is absolutely true. the idea that caterpillar just reported a number, two years from now, it's going to get a check from the governmentfrom infrastructure, david, is ridiculous. >> right caterpillar's first trip above the 200-day since labor day. >> yes, but nothing has happened there. there's some analysts saying, you know, you can put this number the in out years. >> why didn't someone buy it on friday you know what i'm talking about? >> some of these credit card processors, especially, having

wrestling with competition from buy now/pay later. >> affirm is so loved. i've spend a lot of time with mastercard of late mastercard has shelved, but not as bad as paypal paypal has been obliterated. if they needed to by pin tres, people set they have slowed down >> square today, a three-week low. >> i know. i know i think this is push come to shove, affirm, a very small company, just been the buy now/pay later, it's like credit. >> we've been talking about that does it represent a threat to the traditional players? >> max is trying to disrupt the credit card industry,

absolutely, but people don't seem to understand visa and mastercard about going from paper to plaster maybe makes thinking they go from paper to buy now/pay later, but several people have not even graduated out of the cash market yet. when you look at affirm, i mean, come on. if you haven't bought it yet, what's the point, right? hey, let's go buy affirm you wake up and say, let's let's buy some ford. >> great ped how ford outmaneuvered gm for the rivian stake. >> it could be worth $10 billion. >> the moment it goes public, that would be a very warm reception. >> do you want the numbers i already have them. >> i do, but -- >> if it opens at 90, then it's equal to the -- you know, on par

with ford of $77 billion, so this company has produced -- here's -- how many rivians have been produced? >> seven >> no, 156 20 times what you thought, so we make it a $100 a share. >> lucid is not far off from ford, either. >> they've only sold 156. >> i don't know how many lucids have come off the line, either i want to go to -- do you mind a large leveraged buyout today -- >> i wasn't hogging things the eagles lost, i'm trying to feel better. >> just fill your mind with other things this is about this mcafee -- >> wasn't it private all right >> it was private, then public, then owned by intel, and then it

was spun. >> is it any good? >> i don't have any idea if it's good, but the deal is a $14 billion deal that's full enterprise value it had been previously reported that the shock had moved up, think it was bloomberg, $26 a share is the number, but i want to talk about the deal itself. it's we have larger leveraged buyouts. it used to be these large club deals, where you had a lot of different participants from the private equity universe were frowned upon, in part because the lps could be the same, so they end up with more exposure to a name than they like ist permira, crosspoint, gic private limited, and a wholly owned subsidiary of the abu dhabi invest authority that's a lot of different groups they have to write a $5.2

billion equity check, which they're doing, and also raising a large amount of debt as you w well unsecured bridge very large it's a 45-day go shop. we do see these included in deals of this nature as for whether mcafee is any good, jim, these guys seem to think so >> there's a lot of guys involve in that. >> mcafee, of course, has passed >> well, my charitable trust own lifelock they close the deal -- obviously people like palo alto. nextdoor goes public this morning. we'll have a interview with

sarah friar in a few moments. we're back in a minute.

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you can get in on the new investing club with cramer sign up and find out more on cnbc cnbc.com/investingclub when we come back, sarah friar withrar h company's public debut

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sarah it is a delight to have you. >> what a day. >> i wanted to talk about your company, but first, i think it's important, you're drawn to this, because under the circumstances person driven, and i'm going to use a silly work, it is kind. >> it is, our ticker is kind

we're very purpose driven. our whole reason is to consult vat a kinder world >> so you've got an incredible acceleration it's a very love neighborhood. neighborhood itself is a very important concept for you, both here and worldwide >> that's right. we're in 11 countries, 280,000 neighborhoods. we just saw great growth in q3 we preannounced our q3 and saw our weekly active users up year over year. people love the neighborhood and they're loving our platform. >> now can you tell me about -- there's a couple things that i think people need to know. but the first one is why are you doing a spac >> so, we really needed to raise money because when we looked at the company we have a ton of opportunity. we wanted to put more money on the balance sheet to go out and meet our ambition. how we raise money is less -- we

didn't really care that much we wanted to choose the right route for the company. we could have done an ipo. we're a high quality company the spac works because we found a great partner in coastal adventures. >> kind of a rock star in the business you had -- you could have had an ipo, would have been a big branding message instead you're going with a quiet one. >> we think this is a big branding method. don't get us wrong what it gave us is certainty we locked in our valuation in july it allowed us more time to talk to investors so i think it's a better branding because you're getting to the fundamentals with investors over an extended period of time as i said, it was more than just bringing money to the table. the note in particular, i worked for seven years at square, he brings a lot of experience, great recruiter and a good push at a decade long strategies. >> i think it's important to point out your personal interest in neighborhood.

could you talk about the troubles >> yeah. i mean briefly, i grew up in northern ireland during the trouble. pretty tough time. what i saw was neighborhoods driven apart because people were different religions. where i grew up in a tiny village, my parents were community activists and brought neighbors together our catholic neighbors were always in our house, there the night our windows got bombed and came in, and they boarded it up and that to me has been the arc of my career of recognizing this importance of community and now i get to do it with the amazing team at nextdoor and we're going to do it around the world. >> people will say how are you making money, sounds great kinds of ads consumer goods ads, but neighborhood >> what i saw in nextdoor was a great business model too we sit on a lot of data and we can do today very ad driven model. the ad market is amazing it's fast growing, everyone's moving to digital. they're moving with nextdoor we do great for advertisers like

a home depot or financial services and anything that feel endemic and local. what we bring is local but at scale. and then, of course, we work for small businesses like your small business where everything is local. if you need a plumber, a dog walker, you need the local baby sitter, things high trust where you need to hear from your neighbors we do great for the small businesses as well we saw huge growth in our revenue in q3 from those. >> i want to talk about kind those of us who have been attacked on twitter, bullied and attacked, recognize it goes on because people don't use the real name. you will not allow that to happen >> never on nextdoor you're a real person at a physical address, which is great for our business model because we know place, but it's really important that we started with trust i really command what our founders did, by setting in place it meant that we grew slower in the beginning and today we take steps, sometimes we balance engagement against doing the right thing to build a

trusted community, but we know long-term that's better for the business. >> it's clear the average revenue per user is going up big because it's real user. >> it is it was up 68% year over year, our ad platform getting more sophisticated, more are coming to the platform and advertisers are finding us we're a brand that's still getting known, but as they come they find something really unique because we bring them to local and to their community >> one in three households, six in three verified, numbers i expect from a company that is ten times your size. so obviously the engagement must be much higher >> engagement is high on nextdoor people come with high intent and stick around best in class in terms of people who come and are there two years later. we are best in class. >> international growing faster than domestic? >> in the u.s. we're in one in

three households, the uk one in find, but everyone in the world is a neighbor. the town is global, so as we're going around the world we're learning our playbook gets better and the brands get more recognized. >> i need to know about commerce when i heard you went there, we're not taking any money what kind of business is that. a nonprofit business you obviously have built a great commerce system. >> yes we think there's more to come there. not only can we do digital advertising but many other types of revenue streams over the long run. as my cfo always says, looking at me over your shoulder, the ad market is huge, don't leave that behind because there's so much opportunity there now. >> ad market, a lot of people are worried about third party. you're first party which means the advertisers -- explain why advertisers want that more >> we are a proprietary platform. the world is changing, google, to protect people's privacy

which we agree with and makes nextdoor more potent in a world where many don't have that first party data we can do better targeting if you are a dog lover, for example, we know if maybe you moved into a new home, new movers spend a lot of money in the first 12 months and that is the perfect time for advertisers to get to know them. for example, who is best isp around here like i need great wi-fi because i'm working from home, that is the moment where they'll choose a new provider. >> talk about that turbo charge by covid, the hybrid model people spending more time at home great for nextdoor. >> it is so we are absolutely, we've benefitted through covid i think more because people wanted to give and get help and we know that's the reason they come to the platform now that they're spending more time at home and we see more and more neighbors saying they care about multiple neighborhoods, the one they work in and live in, maybe the one where their parents live, kids live, we are opening the platform up to

connect to the neighborhoods that matter to you so you can belong. >> i bet you had dozens of companies that wanted to hire you. why this one >> it's the most special company on earth. >> oh, come on, tell me. how many companies wanted you and why did you pick -- >> community it goes back to that arc of my career i think it's vital in the world. i really want to work on things that can impact the world broadly speaking and do it with a team that i think is the best in the world. >> we'll leave it on that. i love that note i loves the kind note from sarah friar, total rock star and i've known you for a long time. ceo of nextdoor. congratulations. >> thank you you're the best. >> back to you. >> jim, great stuff. before we let you go what's on "mad money" tonight? >> he's got goodyear and container store. got a dow record high at the open off the itinial highs but s&p is holding 4700 hp don't go away.

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post nine of the new york stock exchange a record high on the dow, two big stories, infrastructure bill, of course, and international travel reopening is going to lead you to a bunch of leaders earnings are going to simmer down and a lot of fed speak this week. >> we're 30 minutes into the trading session. here are three things we are watching we're going to start with regeneron after the drugmaker says a single-dose of its antibody cocktail cut 82%. regeneron asked the fda to expand the authorization meantime shares of biotech coming back to earth after the company agreed to buy marsat for $7.3 billion to expand its broadband network and consolidation on connectivity. the shares down 10%. we will speak with the co-founder of viasat in just a bit. up until this morning the stock had doubled since the start of the year

we'll finish with tesla slipping after elon musk poed a twitter poll asking whether to sell 10% of his tesla stock over the weekend. a majority of the users polled said yes, and that's countering a jefferies upgrade with a price target now the street high at $1400 a share. you can see tesla is down almost 4% that is where we're going to start with our own mike santoli. shares are still up something like 50% in a month, so 4% move lower is in some ways kind of a drop in the bucket. >> it's hard to imagine a large stock that's sort of better suited to absorb a little bit of a peeling off of some of the winnings by the ceo and leader take a look at this since the middle of last year, a couple of these vertical sprints this really was a crazy wild ride that was into the stock split. they announced a stock split stock surged because this is a linear chart not showing you percentage

moving, at that point even and then sold off. it's going into the s&p 500. that was into this december peak then the wild kind of rally and speculative and tech stocks into the first part of this year. really did, though, trade below that level at which it went into the s&p 500 for a while this year then this vertical surge he is up, you know, 60, $70 billion since last october in his personal stake, elon musk. this stock routinelytrades $20 billion, $30 billion, sometimes $40 billion worth of shares a day. so $20 billion being kind of peeled off does not seem like that big a deal. then you get into the idea if anybody owes $200 billion of any stock, you probably are responsibly should be diversing fiing a little bit all that stuff helps explain why the shares are retaining most of their value here, guys. >> mike, yeah, thanks for that stay with us and want to get to sort of what may be a big reason behind the potential sale from mr. musk robert frank has been tracking that for us, actually brought

that story to us poll or no poll, he's got some big tax bills to pay, doesn't he >> that's right. 3.5 million people voting in that twitter poll. 58% supporting the sale of the shares only one vote that matters here and that is the irs. that's because elon musk faces a massive tax bill and the only way to pay it is selling millions of shares in 2012 he was awarded a compensation package that included options on 23 million shares those shares and options expired in august. the strike price is $6, around $6 a share tesla now trading as you saw around $11.50 a share. his again on those options will be right around $28 billion. they're going to be taxed as ordinary income and they were earned and granted in california so his combined tax rate will be around 54% which means his total tax bill on this will be around

$15 billion. if he sells 10% of his shares that raises about $20 billion in cash and leaves him a little extra to maybe give to charity which might help offset the taxable gain now tesla watchers have been expecting for months that he would probably start selling and exercising these options in the fourth quarter to start the process maybe continue over the next two or three quarters to kind of spread it out and limit the impact on the overall market people might be asking why can't he just borrow the money his total tesla stake is worth as mike mentioned over $200 billion so he's got lots of room to borrow more but he has pledged more than 92 million shares for personal loans and borrowing another $15 billion would be a big risk for any lender as musk said in september when asked why don't you just borrow, he said it's too risky, quote, stocks don't always go up, they go down guys >> yeah. you know, robert, a couple important points here and you and i were talking earlier

separately, i mean ultimately his stake in the company may be higher than it is now because, of course, he is still going to be receiving a lot of shares when he exercises. and then the question you raised how will he actually go about disposing of these shares? it would seem unlikely he would do it all at one time or get anybody to underwrite an offering of that size. >> yeah. it's one of the big points lost here is that he's got about if you include all the options he's got over 20% of the economic ownership of this company which is incredible given its size most have already sold down so much stock he's already at over 20% by the time he's done paying the tax exercising the options he'll have an even greater stake adding 10 or 20 million additional shares in the company so his stake will grow as a result of this even though he's stelg some to pay stocks that's one thing that people

missed in terms of the process you're right, he'll actually do it all at the same time people anticipate that you typically exercise the options and pay the tax at the same time to do that all at once in one fail swoop would be too much people have been saying for a long time that he'll probably spread this out over two or three quarters especially since ceos have limited windows around earnings to actually sell shares. >> the timing of this is fascinating and you can talk about that from a policy standpoint and tax implications, but mike, also, i mean whether it's tesla and you touched on this how high flying the stock has been in recent weeks, but also just the ev landscape overall. we've got rivian getting ready to go public upped its offering, something like $70 billion valuation, when we get that name traded publicly here in just a couple days. how does it speak to i guess investor enthusiasm for this part of the market in general

right now and what that will mean for nan elon musk as he does sell? >> i think it's absolutely, you know, at least peak excitement in the sense it's never been higher so far for this part of the market and for tesla's perceived ability to capitalize on more of that market than was thought before the last couple quarters results i think fed into that, but none of that really explains the angle of the cent on this stock a lot of it is kind of follow on excitement, a little bit of self-fulfilling stuff in the short term, something similar going on with nvidia right now, so a fundamental basis, a really powerful story line and a ceo who conveys the idea that any big sales he makes is not because he wants to own less of the company but simply because of these external, you know, kind of demands of taxes that probably all feeds together in a pretty good spot for the market to be able to absorb it it's unstable at these levels because of how wild the angle of

the scent has been so far. >> 1184 is the high of the session today. mike santoli, robert frank, thanks very much. airline stocks get a boost as restrictions are relaxed. phil lebeau joins us with that hey, phil. >> hey, carl huge day for the airline industry and the travel industry overall. this is the first time in 19 months you are going to see the vast majority of international travelers coming back into the united states. we basically had the border shut down this morning in the uk, british airways, virgin atlantic did a joint takeoff, first time they've done this in 37 years two flights coming in to jfk landing in the next couple hours and as you can imagine a lot of very happy travelers excited to come to the u.s. >> i could cry. >> so joyful, i could cry. i've had dreams of this moment. >> the people are getting back to in-person events and actually

being able to see each other and conduct their business in person, which is such a breath of fresh air we've had our first meeting in person in the uk and now to be able to go to the u.s. finally is a great feeling. >> we're going to disney in two weeks. >> we've been trying to go on holiday for quite a while and seeing the u.s. is open is a perfect opportunity. >> reporter: what does this mean for the airlines let's talk about the three in terms of transatlantic travel with delta, 450% increase in international bookings in the last six weeks since the policy was announced by the biden administration it shows you how much demand is out there. then american, its international schedule this month and next month double what november and december were last year and finally, you've got united we've talked about this at length, adding a slough of transatlantic flights next spring, next summer and speaking of next summer, guys, many in

the airline industry believe we could see record transatlantic numbers next summer. there's so much pent up demand provided we do not see another wave of covid-19 or a change, again, in the border policy. couple of hours from now, guys, when we'll start to see a lot of pictures coming in from airports around the country as those first flights are landing and you see a lot of very happy europeans coming into the u.s. guys, back to you. >> yeah. i like those happy images and some of those comments, phil it's been a really mixed picture over the last month for the airline stocks in general which speaks to some of the service issues and perfect storm if you will around weather and labor problems for some of the companies. given the fact that you are now going to have an influx of more travelers from overseas how are they moving, the airlines, to counter those potential hiccups in the holiday season as well? >> reporter: well, we talked about this for some time, morgan it's going to be a bumpy takeoff

as they add flights and have more passengers coming in. look at american announcing it will be boosting the pay of flight attendants to make sure they have enough staffing for the holidays i think we're going to see that type of thing for different airlines at different times trying to add more staff and get more pilots trained and crews back up. it's going to take time. you can't flip the switch and immediately have the full staffing thank you that you want. >> thank you. another mover live nation, they are lower this morning after the tragic events in texas over the weekend julia boorstin has more. >> reporter: yeah. that's right morgan, after a tragic deadly crowd surge at a travis scott concert in houston lawsuits are starting to be filed one concert attendee sued scott as well as the organizer scoremore and livenation the lawsuit reads, quote, tragically due to defendant's motivation for profit at the expense of concertgoers health

and safety and their encouragement of violence, at least eight people lost their lives and scores of others were injured at what was supposed to be a night of fun. now the suit accuses the defendants of actively encouraging and fomenting dangerous behaviors. livenation tweeting a statement in response saturday saying, quote, heartbroken for those lost and impacted at astroworld last night and we will work to provide as much information and assistance as possible to the local authorities as they investigate this situation this comes after livenation reported better than expected quarterly results last week. the stock up over 110% over the last 12 months on expectations of pent up demand for concerts morgan >> julia boorstin, thank you as we head to a break, here's a look at our road map for the rest of the hour how to play the reopening trade. we've got top picks in the

travel sector outside of the airlines >> plus david berman joins us, his outlook for retail as we approach the busy holiday aon >>nd then live in london, how an energy crisis is impacting consumer prices there. back in a moment. who's responsible for building esg into your investments? at pgim, the pursuit is on for outperformance. as active investors, to outdeliver with customized strategies, integrating esg best practices into our investment decisions. as asset managers and fiduciaries, to outserve, with our commitment to better esg outcomes. join the pursuit of outperformance at pgim. the investment management business of prudential. 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!

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welcome back great time to be a u.s. retailer, sales up, but with the holiday season looming and supply chain issues abundant will retailers be able to meet continued strong demand? joining me david berman, somebody we rely on to give us the big picture in retail and david, let me start there, and i think this tells a big picture we're going to bring up a chart of historical operating margins. they haven't been this high, i don't know, your chart went way back, we took it from 2016 what's going on here and can these kinds of margins continue? >> yeah. thank you for having me on, david. the -- we've got the charts since 2000 we just shared with you the last number of years, the operating margins are the highest they've ever been and obviously they're not going to continue into the future as you get more inventory over time that means that you have, you know, reduced pricing power, but right now, you're

going for this incredible, we spoke about this last year, the retail surge in the economy where it's actually quite staggering what's happening, the operating margins are the highest but at the same time, the -- we're in a situation because of covid of total disequilibrium with people coming back to work and inventories and it's creating all sorts of stuff, but fo retail right now, there's not a single retailer -- we track every retail and look at the cash and every year a few might have problems, we do not see a single retailer that is imminent bankruptcy it's best of times right now. >> yeah. you know, any of our viewers who followed you through the years in these interviews we've done would know you typically look at a company that retailer that has high inventories as a potential

caution sign because that could lead to markdowns in the future. but that's kind of turned on its head now as we head into the holiday season, isn't it, david? you know, you track so many retailers who show incredibly low inventories, but it would seem those perhaps that have more inventory may be in a better position. will you explain >> yeah. it's sort of complicated but not really i mean, first of all you always want to try to invest in a retailer that has its inventories well controlled that means they don't have markedowns and the gross margins will be higher because of covid two years ago, year and a half ago, we found that inventories shut down shipping shut down, production shut down. we don't have inventory for the most part. inventories are lower than sales growth because of what the fed has done and everyone has money and feeling comfortable and confident, the demand has been

humongous. so according to our chart, we've been doing this for 20 years forevery retailer, total sales growth, not including amazon because for inventory reasons we keep that out, total growth rate of inventory for the last quarter just reported was up 8%. that's an average for two years because of covid we have to average it inventories 4% that's a 4% spread and a positive spread. it means that there's too little inventory in the system and, of course, our models continue how much inventory, how much is too low, been low for many, many quarters now, and that means that we have to -- it should mean that we are going to most definitely have fantastic gross margins heading into christmas not even an issue on that. in terms of jumping ahead here, i know you love to talk about christmas, and maybe we're jumping ahead, but -- >> go ahead. >> that means that for christmas we got to -- the earnings and the retailers will be super high

from a gross margin standpoint but the other part of the profit/loss is the expenses. there will be freight and things like that, you know, cost of labor. input prices are not a big factor at the moment they will be a bigger factor next year. so we don't know how much freight is going to -- extra cost and wages to bring it over here that's going to impact some of the companies when they report in the next few weeks in terms of lowering expectations on the bottom line. i believe the gross margin will be stronger than ever and that's really a powerful statement, will get the retailers more than cash than they've been accumulating. >> right our viewers care about the performance of the stock prices themselves i mean, you take a look on a subsector level, you know, given what you've laid out here in terms of inventories and terms of demand, where should investors be looking if there is some opportunity because obviously we can see based on the chart we're looking at right now, that, you know, year to date, the spider is up

over 58% >> yes this is the one time i can remember in the history of the business where at least for a year and a half now, the idea of shorting a retailer is forget it you're going to get killed one way or the other we just [ inaudible ] long retail there will be banks like there were for some in the last few months those bumps happen to companies like, you know, the apparel retailers and the covid variant. slowed sales down because people didn't want to buy as many clothes to go out. that slowed that group down. when they report they have somewhat slower sales than expected as soon as covid -- people are not so worried, those sales jumped right back. so when you look at what to do in stocks, look, if you're not a

week or two ago, what i would love to have had this conversation, the retail stocks apparel guys were down on -- they were down a lot, a lot of these companies up 20% in the last week. they should be at 20% in the last week because they're going to have great earnings another thing i love about the group which is remarkable, the chart that i sent to you on cash, cash per share, of retailers, there are a significant amount of companies that have a huge amount of cash as a percentage of the market cap because what they're doing is building up cash. i don't think investors are focused on that because it happened so quickly. >> right. >> for example, you know, you've got -- four companies that are doing well and have 30% of their market cap in cash >> yeah. >> that's insane >> yeah. david, i want to end on one final point here because, of course, it's years ago you coined that saa term, the power

of samsung, apple, amazon, in terms of powering retail an interesting transition has taken place. traditional retail coming back as an overall percentage of the total sales and i wonder why that is. we have that chart for you and we can show it, sort of showing the growth rate and how it splits up. what's traditional retail getting right perhaps that they haven't over the last couple years? >> traditional retail, at least during the early parts of covid, precovid, traditional retail about 40% of the growth rate of retail 60% from saa it's now about 50/50 so what's happened in the last number of years in the last few quarters especially, is that you've got first the traditional retailers have been doing unbelievably well. companies that really generally buy in the stores like home depot, walmart, target, those big retailers are doing phenomenally well and costco the numbers are high not that amazon is not doing

well butthose on a relative basis have grown in addition, the retailers that are specialty retailers have done a much better job on the internet and thery are really doing well what they do is they order online and buy in the store. that's a big percentage, some companies it's half of their internet e-commerce business that's -- amazon can't do that they don't have stores as a result that's gone through the roof it's encouraging and also encouraging for malls in general. you know, although -- but i'll say the big number if you want to end on this, a chart on the total growth rate. i'm blown away by this when we do the numbers and i see the numbers and look at them, i'm going to double check my own math, but total growth rate over the last two years for retailers, nowwe had to do two years, one year is silly because you're comparing against covid last year, you compare to two

years ago precovid and in two years the total sales growth including saa is is up 29% 29%. in two years it's almost a third of the growth in total sales in the united states in retail. and if you look at just traditional retail, and take out, you know, amazon and apple, up 18% even 18% off the charts. the normal for two years, would be about 8%, 9%. the normal for the 29% about 10% in two years the economy growing three times faster than in the last ten years. three times faster this is why i believe you have this in the market creating this major sourcing issue the supply chain issue is not a function as we hear about covid directly, it's not because -- >> demand, right. >> that's right. because demand is off the charts. >> david yeah

i got to stop you there on demand off the charts because we're out of time. always appreciate you stopping by and sharing your wisdom with us david berman. >> thank you very much appreciate it. take care. >> as we go to break and get a check on crypto numbers. all-time highs on ether and awfully close to an all-time high on bitcoin about 669. both up in the last three months "squawk on the street" is a back after this. reducing our carbon emissions to net zero may be our biggest challenge yet. there's no single action that will lead us to carbon neutrality. but there is a single source of essential sustainability intelligence. s&p global sustainable1. uncover risk scenarios, reveal transition pathways, and optimize your net zero opportunities with our unparalleled data and insight.

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welcome back to "squawk on the street." it is time for our etf spotlight. today taking a look at the global infrastructure etf ticker pave up 1.5% after the passage of the infrastructure bill hitting an all-time high today. adding to double-digit gains for the year already now nucor the top holding, as other steel makers like u.s. steel and cleveland, and caterpillar are jumping and other plays like vulcan and martin marietta are surging and jacob engineering announced today an investment in space

start-up haw i could 360 focuses on radio frequencies many names jumped ahead of the passage of the bill and now jumping on the heels too we continue to watch. >> meantime the uk bracing for that energy crisis this winter prices surging as winter does approach brian sullivan is live in london today. hey, brian >> hey, carl, thanks very much this is a serious global story not only an inflationary story but human lives story because it's dangerous to people in england and continental europe facing sky high bills. i will get to that we talk about the reopening trade and well, you only reopen once as we've reopened demand for everything as we know has gone up let's talk energy. look at some of these moves off the lows of the closure in march. oil has gone up, seems small compared to natural gas in the u.s. that has doubled, coal prices

doubled but natural gas in europe up 3.5% lng into asia up 450% off the march lows what does this mean? what it means is that utility companies in the uk and parts of europe having to buy a lot of this stuff on the market to meet demand, wind in the uk have not performed, they are having to buy this at increased prices they are not able to pass those prices completely along to their consumers, but they just instituted the biggest single price adjustment jump in the history of the uk. what does that mean? upper middle class or rich, you won't notice those on the lower end of the socioeconomic scale, they will see their heating bills doubled if they have not already in some cases by april according to everybody that we're speaking with we spoke to the head of the national energy action, a fuel poverty and energy charity, and he told us that there are some families that are going to have

to make some very, very difficult decisions this winter. >> the risk is frightening it's brutal as well. millions of people who won't be able to heat their homes or make choices between eating and heating, of scared of the debt mountain that's coming towards them every time they put the heating on they will be in dread of the cups consequences of it. >> choosing between heating your home or feeding your family or deep near debt half the smaller energy players here have gone bust in the last month and can't eat those prices that we showed you and then pass those along. there is a growing concern, and i'm not going to say like the financial crisis won't be that big, about us a growing concern that ines ferre the winter is cold and the months go by and prices stay elevated many big utilities here and in continental europe that have millions of customers, they could faces the risk of having to be bailed out because they're eating the higher costs but they

can't pass them all along to the consumers as well. the best hope for england right now in much of continental europe it's a warmer than average winter if it gets colder the next few months could get tougher for people here and it's a lesson globally around the world. >> brian, such an important story and very happy that you're there covering it for us as you point out, months to come in terms of seeing how the weather is and what the impact is brian sullivan in london after the break don't miss interactive brokers chairman thomas peterffy launching a trading platform we'll go over the details. stay with us. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations,

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welcome back i'm rahel solomon.

here's your news update at this hour european police arrested two people in romania last week. they were suspected of using ransomware for 5,000 infections that netted almost $600,000. euro poll says the arrests are part of operation gold dust which involves 17 countries including the u.s. justice department has scheduled a news conference with top officials for later today to announce what it calls a significant law enforcement matter gasoline prices in the u.s. continue to rise the nationwide average for regular gas is $3.49 per gallon up over the past two weeks last year at this time it was $2.19. former president barack obama speaking out at the global climate summit reportedly unhappy that leaders of russia and china didn't come to glasgow accusing the nations of a dangerous lack of urgency. you're up to date. back to you. >> thank you very much. with esg values gaining traction in the markets,

interactive brokers has created a mobile trading platform dedicated to socially conscious investing. here to fill us in is founder tomas peterffy i'm looking through some of the details of the app first, why now >> carl, look the question is what kind of world do we want to have the broker impact is a beautifully designed impact tool for that question. focus the user on the kind of environment they would like to different and the environment helping to build with her investment we think it's very important that people realize that when they buy the shares of a company, they are interactively promoting the company's product and services and volumes and the impact helps you to align you

with values with your investment >> yeah. i -- >> i mean it helps you to align your investments with your values why now? this is the time where this is becoming more and more crucial question and as you know, running ahead of a trend and realizing that helping to realize that trends has always been a winning investment strategy that's why now. >> fascinating, you can go through, we're showing on the screen, you can enter different values, whether it's pure water or equality, or fair labor be and then you can flag things you don't want to be in, animal testing, fossil fuels, high water usage, which do you think will be the more powerful driver of trade

>> well, i think that there are two things there basically, you can elucidate your values and explain what you do not want. so, you know, you can bring in your portfolio and have it according to your values and if you are not happy with the rating, there are investment choices, other choices, substitutions that are suggested that you can bring in and just with -- very easily exchange the content or some of the content of your portfolio. >> it's morgan i mean you have millions of customers using your platform and that's probably quite a treasure trove of data are there specific demographics

you're target or looking to grow with the launch of this product? >> so yes, this is more directed to the young are people who are more self-conscious. it's important for everybody, that they are aware no matter what we are investing in, we are making an impact we may as well make a conscientious effort and dig deeper into those companies and learn about them not only as businesses but also as employers and members of the community. both are important so what kind of a balance you want between the two is up to you. the user that's what the good thing about this app is, that it's up to the user we're not dictating to you what it is that you should choose. >> it's david. you know, i know you as a very

big supporter of capitalism. i can remember years ago on our air you're running the anti-socialist ads you know, the world that i would think you live in where you want to allocate capital to the companies best at generating shareholder returns and used to that capital isn't this going in a different direction, dare i say more of a -- i wouldn't say socialist but less capitalist? >> no. i don't think so at all. this gives you the choice. it's up to you what you once if you want to be -- i mean i'm not saying that environmental awareness is an anti-capitalist thing. why would you think that i think it's a common problem that we all have together. i think that capitalism is going to get us there sooner than a government directed program, right.

we are in a campaign trying to get individual investors and pushing together towards a better environmental future. >> fascinating we look forward to looking at what kind of volume we're getting. it does allow you to trade esg maybe in more ways than you could before tomas, hurry back. good to see you back >> thank you very much >> after the break, viasat wh it a deal to expand broadband reach around the globe the co-founder joins us next the stock down 11% we'll be right back.

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breaking news. pfizer saying its antiviral pill cutting risk of severe covid by 89%. >> this is a phenomenal result when you have therapeutics this effective that can be a backstop for people whom vaccines don't work, people who have break through infections the pill is being studied. this puts an exclamation on the end of the pandemic phase of this virus. long-term bull ed yardeni sees more record gains ahead where he's finding more on tradingnation.cnbc.com more "squawk on the street" ahead. that's easily adjustable has no penalties or advisory fee. and we can monitor to see that we're on track. like schwab intelligent income.

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this morning after the company released result and announced a $7.3 billion acquisition of a privately held british satellite company focused on mobile communications here with us to discusses the deal the co-founder and executive chairman mark dankberg mark, great to have you back on the show thanks for joining us this morning. i want to get to the why but first start with the how, because the satellite industry has been very fragmented analysts have been saying it was right for consolidation for a number of years. seen a few attempts. marsat has been seen as a key piece of the puzzle, but how did the deal come to fruition? >> the company looking at a fragmented market, very fast growing market, and clear synergies between the two of us. takes two to make a deal i think it's really important to note that mrsat owned by a

consortium of private equity investors is taking something like, you know, 75, 80% of their consideration here in shares in the new company. it's indicative not only do we see this as a good deal but they do as well. >> what does this deal enable? i ask that because broadband service is rapidly and wildly becoming a more competitive landscape thanks to spacex and amazon and one web and so many others >> yeah. you know, it's -- we estimate as a $1.6 trillion market opportunity and so that warrants a lot of investment. one of the cool things about the mobility market is it's a natural satellite market very difficult to serve purely by ter rest y'all means. what we think it's difficult to serve by only a single constellation approach in satellite. you want multiple orbits and you want the ability to integrate terrestrial an space together.

and this brings together the assets to do that. we like this business. we've been quite successful in it we've been able to change the perception since connectivity on what people can do airlines like it i mean it's an exciting market there's a very unique combination to that market >> yeah. i mean you've tended to have satellites at higher orbits. when you talk about multiple orbits i think about mrsat under the ceo, he has been hiring executives and made comments that suggesting that maybe he would launch a new network comprised of a similar technology of spacex are you going to make a direct play on low earth orbit? >> we see low earth orbit as a good way to augment the demands. one of the most important things about say the commercial in-flight market, just looking at where airplanes are and what happens is, the hardest part is

serving those places where hundreds of airlines come together at a single time. it's like serving a small city when all those things come together that's a place where geosynchronicity is strong you may want to use terrestrial to can be. so we'll be able to use multiple things we're talking to other operators who we may augment our service with, or we have our own filings and may use leo to augment but i don't think you'll see us do a pure play leo we think we can compete really well with the assets that we have, augmented a little bit >> so, how much does it cost, especially as these two companies combine and presumably get the green light from regulators by the middle of next year, how much is it going to cost to build and launch your future satellites? how many of them will you put into these various orbits? i ask that because we have seen these new technologies and i

wonder how you're implementing them and what that means for economics? >> okay. so the main thing you want in technology are to get a lot more bandwidth per capital dollar invested and the other is to put in the places where there's demand that is one of the most important technologies in test rale 5g and in space for instance, with our -- we have that will start launching first half of next year. each of those individual satellites are terra bit per second will have global coverage with those that's baked into our capital spending plan. they have their own capital spending plan. so that -- these next two or three years is the peak of capital spending after that it will be less capital intense and be substantial synergies. but the main thing -- >> okay. >> hey, look, what do you get in

terms of band width, where do you put it for how much capital investment is where we think we really shine. >> okay. as the conversation around connectivity continues, mark, thank you for joining us today. >> sure. thanks for having me. coming up this morning on "techcheck," more on the stock move we're seeing in tesla continues to rise throughout the course of the morning. and also of course the tax implications for elon musk begins at 11:00 a.m. eastern 'rba itwmite wee ckn o nus. so, you want evs, you have come to the right place.

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♪ welcome back to "squawk on the street" i'm dominic chu. stocks are mostly higher with the s&p 500 within a fresh market high we saw last friday underperformance in the utility sector in particular, down 1.5% with a few different themes at play including a rotation out of the more defensive sectors as treasury yields rise and sentiment turns more towards those economically sensitive areas, like energy and materials outperformers by the way the global energy crunch that brian sullivan discussed, u.s. customers likely seeing higher prices an rates from public energy utilities, dominion energy and others.

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travel and leisure stocks outperforming as the u.s. relaxes travel restrictions. seema mody with a look at some of the biggest winners seema. >> that's right, david the u.s. now bracing for a surge in fully-vaccinated travelers. a 2200% rise in books fromthe uk to the u.s. for the thanksgiving weekend compared to the last month the latest data shows the most popular destinations for international tourists are new york city, san francisco, los angeles. coastal cities that have been suffering due in part to a lack of international travelers now the big branded hotels that have a large percentage of their properties in urban markets are expected to benefit the most from easing restrictions marriott, hilton with 25 to 30% of their portfolios in cities. hyatt at 45%, a little higher. then the booking platforms, online travel platforms like booking holdings, expedia are both seeing search activity on their sites. priceline owned by booking has

the strongest presence in markets like europe. that's why expedia, david, has been spending more on brand marketing to attract foreign tourists i'll send it back to you. >> yep of course, we heard from bookings holdings thanks to you last week as well, seema appreciate it. seema mody reporting for us on that resumption of travel from foreign lands. that's it for us on "squawk on the street. "techcheck" starts now ♪ ♪ good monday morning. welcome to "techcheck" i'm carl quintanilla in new york. julia boorstin in los angeles. jon fortt is in d.c. and deirdre is off today elon mask uses twitter to decide and looks like he may dump a big chunk of tesla stock the real reason behind that sale next then w