hacked the company revealing a breach that exposed the personal data of millions of its users, how the intruder got in. regulators out with new warnings about meme stock madness and potential risks that it poses to the fi return to th market we'll get you ready for the hertz i.p.o. a lot of yellow at the nasdaq. it's tuesday, november 9, 2021, and "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with joe

kernen andrew is off today. off to the races when you're looking at the u.s. equity futures or at least when you're looking what the markets have been doing this to point yesterday you had the s&p, dow and nasdaq all close at record levels the s&p closed above 4,700 for the first time ever. nasdaq up by about 30 points this morning s&p 500 up fractionally. dow futures down by 17 but the gains have been climbing and continuing if you watched the market activity yesterday the dow was up by over 100 points. let's look at the treasury market because the yields are confounding. the ten year lower this morning at 1.46% despite the good economic news we've seen the talk of the fed tapering, you're still looking at yields down let's look at the stack this morning we have to check out crypto again, bitcoin up at 67,913 almost 68,000 another

record level at bitcoin. ether same story it's at 4,800 and climbing we've been watching all of that. that's probably concerns about inflation. this has been a place you have seen a lot of gains, bitcoin up by more than 10% in the last three sessions up another 3% this morning one place you haven't seen it taking off is gold gold prices were up yesterday, the highest since early september but year-to-dosate they're still down more than 3%. and wti, talk about the administration tapping the spr jen jennifer granholm said we could hear from the president later this week. prices today at $82.34 if you watch what's happening with gasoline prices that's a big deal prices at the pump up more than 60% from a year ago and up by about 16 cents a gallon this week you're talking levels we haven't seen in a while, $3.42

in california they're already paying above $5. >> and 4, may be headed there. that immediately kind of gets all the cable places talking in terms of canceling the keystone pipeline, making it -- you know, you can't even frac in new york state, you can't do horizontal drilling. all the things that made us self-sufficient. they're making it harder and some people say there is an idea making hydro carbons more expensive willessen their use. so the biden administration is between a rock and a hard place but we're back to asking saudi arabia to help us out. so you're seeing a lot of political sort of chatter everywhere. >> yes. >> and then, you know, you have the elections coming up.

if people are paying 4, $5, that's what hits home. we'll see what the cpi today, you were talking about bitcoin, our new mayor talking about teaching it in schools >> yeah. getting his first three paychecks. >> amc accepting shiba inu there's talk of people paying $1 million for a $60,000 piece of art this is going to be the most extravagant or outrageous. in terms of the wealthy have a lot of money they don't know what to do with, i don't know if they're preparing for tax law changes. but there's billions of dollars going off this week at sotheby's and a punch of nft stuff they have a place where you can go and buy these -- >> mcdonald's is doing nfts. >> i think some of the apes.

>> mcdonald's is doing nfts. you may get them in your happy meal sometime soon. >> i don't get a happy meal. i'm not opposed to it. i like anything from there, actually what else did i want to talk to you about? gold the hertz. we're going to have hertz. >> yeah. >> did you know -- i guess i knew hertz is yellow, it's a yellow thing. so out in the lobby, i was walking along and i passed a mirror and i was like jaundiced. i thought i was like jaundiced. >> did it blind you, the bright yellow >> my liver has finally given up after 50 years -- >> it is an eye-catching color you got herbie out there >> there's a lot of yellow but it's cool. look forward to that look forward to marc fields we'll have that interview later. >> marc fields and three of the board members. >> they're here. >> yeah. let's get to the robinhood

story. shares are under pressure. i'm thinking about what i said with my liver saying finally enough i can't do anything. >> no mas. >> yeah. that's not something to joke about because when that happens, you don't realize how much you need it until it doesn't work. the company disclosed the intruder gained access to information of millions of users. the breach took place wednesday evening and has since been contained. email addresses for 5 million users were exposed as well as full names of a different group of 2 million users the intruder accessed more extensive information for a group of more than 300 users but no social security numbers or bank information was exposed according to the company and robinhood said no customer experienced financial losses. >> wow >> right got that going for us. the intruder gained access to the systems by impersonating an

authorized party to a customer support employee on the phone and then a ransom payment was demanded after that hack was contained. this is what i -- >> go ahead. say yours. >> that's what i want to talk about. this jay powell stuff and randy and quarles and all that. >> first let's talk about this because when i saw this, i thought wait a second. i thought when robinhood had all their problems, what was it a year or so ago, because they weren't great risk managers, maybe that was a year and a half ago. they weren't great risk managers they're great tech managers, that's what they know. they're fantastic tech managers not risk managers. how are they the ones getting hacked into with something like this, especially a crazy back door you call a customer service operator. >> is anybody hackable. >> i think the bigger news is they got through to a customer service operator. >> right i can tell you a couple of things i deal with where that's an impossibility

i won't go into any names, but coin base i think it's really difficult -- oh, i just mentioned it i wasn't going to mention any names. draft kings, i don't know. but these fast growing entities, customer service -- you have to send an email. i think i'm never going to hear back it goes to cyber space. >> i called nespresso the other day because they discontinued my decalf. >> did they answer >> i got somebody who answered and it sounded like a recording, we can't hear you, it kept going on and on, that's a good scam. just pretend you can't hear me just have the recording running on it. >> right >> makes you feel like you're talking to somebody. >> exactly all my spam calls, they're all -- it takes me about a couple of minutes i'm talking to a recording and i realize, i say

something they're not expecting and they answer with -- you've been a recording all along terrible >> the federal reserve is warning that market volatility relating to meme stocks could pose a risk to the u.s. financial system as part of the semiannual report on financial stability p central bank said new trading platforms are all contributing to the growth of a new generation of retail investors and the sheer size of the cohort makes it important for regulators to watch. they say, social media can contribute to an echo chamber in which retail investors find themselves communicating most frequently with others with similar interests and views thereby enforcing the views even if they're speculative or bias the fed adding it is watching china's real estate sector and risk of spillover into the united states. >> that softbank story is interesting. we're going to talk to a china

expert on that from j.p. morgan in a couple of minutes saw that, $54 billion. but it's actually good since we're less under the control of china, but i don't see how $54 billion loss in value in three months can really -- i guess you have to put the best face on it federal reserve governor randall quarles announcing plan to resign, now giving biden four seats to fill on the board quarles was appointed in october of 2017 by president trump former president trump people get mad when i say president. i don't know why we say president clinton, still right. >> yeah. >> he would have been eligible to remain governor until 2032, but his term as vice chair lapsed last month and he made enough money in his trading account -- that's a joke bad joke, too. shouldn't kid around about that. president biden inherited one fed board vacancy.

there could be one more after cl claireta's term expires in january and we'll find out whether the president is going to offer a second term to chair powell what the journal conjectures is since powell was a republican and quarles a republican, with quarles gone, that will allow the president, theoretically to keep powell and still nominate enough to balance it out for progressives progressives want an equal amount of -- >> depends on which progressives you're talking to. >> right but with the additional opening it frees up president biden supposedly according to them to give jay powell a second term without really getting the ire of elizabeth warren and some of the other progressives. >> elizabeth warren has made it very obvious that she does not think that powell should be renominated. a lot of other people have

rushed to powell's support he was instrumental with everything with the pandemic there are reports that layel bray fornard was brought to the white house and vetted but it's getting close, it's already november and february is when this has to be done. so we should have an answer soon. >> we may hear sooner rather than later on jay powell i think it's going tohappen. >> i think so, too i think that the market odds are still kind of having that in betting there. i think it would probably make the market feel comfortable, but you never know what's going to happen with these things we'll see. when we come back, more action in the electric vehicle market today as rivian prepares to price its i.p.o and later douglas eldridge is preparing to spin off, ceo

howard lorber will be joining us later this hour. "squawk box" will be right back.

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flash for you this morning check out shares of luminar technology soaring after nvidia picked it. lupe f luminar provides a laser radar that gives self-driving car the ability to see down the road the technology shares up by almost 60% this morning. other stocks are up as well. you have some big gains inclinc including from innoviz

joining us to talk about autonomous cars is collin rush collin, let's talk about this deal how big of a deal is this for this lidar deal with luminar looking at the stock prices today does that make sense to see that jump? >> there's a lot folks short in the lidar space right now. so to see this coming out, there's going to be some short calling on this news there's a lot of development left to happen for self-driving cars seeing this progress i think is incremental. the stocks are going to be volatile it's early days in terms of the development at the hardware and operating system level so this move makes sense in terms of folks getting out of the way of short positions but at the same time we have a long road ahead of us on

autonomy. >> why so many shorts in this sector. >> there's been a valuation built into the sector through companies going public there's a huge amount of opportunity here when we look at the value opportunity or the value capture opportunity in the market and just assuming about $25 an hour for driver value, taking the driver out of the vehicle offers, you know, over a trillion dollars worth of revenue and value capture for some of these companies with vehicles on the road on an annual basis. >> is that how you would play this, jumping out from the companies that benefit or the lidar companies themselves >> the leader in autonomy is still tesla. they have more miles on the road that's the argument around tesla. it's really a data-driven, you know, play on, you know, the test data. you're looking at them having over a million and a half vehicles on the road right now, capturing over 6 billion miles a

quarter, versus all their competitors in the 1 to 2,000 vehicle range, those are the leading competitors. just the situational awareness and the depth of knowledge that tesla has versus the competitors is not a comparison. >> tesla doesn't use lidar that's an issue that people have been talking about this lidar is considered better, safer, more out there, tesla is the leader for sure, how do the two headwinds catch up >> it's about being able to precisely locate objects and what tesla is doing is using data to help try ang late where the objects are. the lidar allows you to have a very specific location data set. but it is a little bit slower, it requires more, you know, data processing at the vehicle level.

and there's a lot of development happening there. you know, we cover two companies veladine and ava that we think have long legs from a product perspective, and ava having the opportunity to bring lidar to market in the next few years so those are the two names that we would be excited about here from a lidar perspective but autonomy we're still bullish on tesla. >> is this a situation where both lidar and tesla's way of doing it can both win out. >> absolutely. there's an opportunity here where there's going to be diverse hardware sets and ecosystems that develop. those are the three companies we're focused on the other flame is aptiv they have dreveloped an operatin systems for vehicles

it's at subsystem levels in the vehicle that looksing more like a microsoft window and a full system for the vehicle that's upgradable and layers applications on top of it. from that level aptiv is working with hyundai and bringing cars to market later this year that we think are best in class that's another way to get involved here is looking at some of the basic architecture of the vehicles. >> what about rivian this is a company with a $64 billion market cap, it doesn't have any manufacturing experience, doesn't have any sales, very expensive but also big backers in the likes of amazon and ford. does $64 billion make sense for you there? >> for us, we're not in there so i don't want to comment oval w - on valuation there's an opportunity for vehicles moving to electri electrification.

there's a lot of enthusiasm left in the group, and work for startups making cars there's a big opportunity for them, but actually making these vehicles, you know, optimizing the designs and taking cost out is an awful lot of work. we've seen some of the established oems struggle with that, getting products onto the market we'll see how the vehicles do. but they're ramping and they have some vehicles on the road and the product is good. this is really about kind of staking ground versus a very large opportunity and rivian is one of the handful of peer plays that looks like it has long-term legs. >> thanks a lot, collin. coming up, shares of gaming platform roblox are soaring. we'll dig through the quarterly report check out the shares of another gaming company zynga, the stock

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talk about this as we went to break, shares of roblox are surging. the game platform's revenue grew 102% that's more than double. that was roughly, though, just in line with estimates bookings grew 28% in a letter to shareholders, executives said it's clear even as users revert to pre-pandemic routines and behaviors that roblox remains an important part of their day. and then you have amc entertainment. shares are falling right now after the company reported a third quarter loss of 44 cents a

share. that wasn't as bad as the 53 cent loss analysts expected. you also had attendance jumping from about 22 million people in the prior quarter to nearly 40 million in the most recent quarter. but that was still behind pre-pandemic levels. the ceo said the company and industry are on the path to recovery but need to sell more tickets. he said amc is looking into launching its own cryptocurrency and it's in talks with hollywood studios about partnering with nfts but still that stock down by about 4.5% more of today's biggest market movers when we come back. and hertz is set to return to the public markets preparing to list on the nasdaq this morning. we'll have the ceo and board members at 8:10 eastern. you don't want to miss it.

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grns breaking news on ge wow, david faber, thank god we switched the saving day he has that extra hour, he's up joining us on the squawk news line david? >> joe, something you and i are

probably been expecting for quite some time although it's years in the making and not an uplifting story. but ge this morning, right now, announcing plans to form three public companies it will be splitting up, becoming pure plays in aviation, health care, and energy as i said, this news will be announced at this moment i didn't have a chance to talk to the company's ceo as well and can fill you in on what his thoughts were and why not. but what now is ge aviation, ge health care and the new ge energy power and digital business all to be separated they're going to separate health care first in early 2023 through a tax free spinoff there is an intention to retain 19.9% of the business at least initially. then they expect in early '24 to

spin renewable energy power. and what will be left at ge is aviation and larry culp will continue to run aviation which will have some of the assorted liabilities that we've gotten to know so well, including, of course, long-term care but joe, perhaps not a surprise and yet when you hear it still something of a surprise. the company we long worked for, of course, once one of the largest market cap companies in the world, now will be split into its component parts, culp telling me this is what customers want, they want the focus, the time is right now because of the deleveraging taking place otver the last couple of years. he also talked about the post-covid environment, which is encouraging as well. but emphasized in the con conversation we just had it, it's really on the part of customers to do this because that is the focus they want in each of these companies.

>> it's hard to argue with the rational, makes perfect sense in the model we knew so well where ge capital funded all the other manufacturing pieces and you remember how they -- it was a pretty good racket there for a while and people would say the late great jack welch always had a couple of pennies in operating earnings to use to beat expectations wasn't it about 50 times earnings when it was worth $600 billion, it was crazy but it's a little bit bitte bittersweet. thomas edison, dow component, biggest market cap around going the way of the decon klopp moretizations. >> is the ge name going to continue with any of those three? >> it is the ge name is going to continue with aviation. and as i said, culp will

continue to lead aviation. so that will be what is left john slattery will run it day to day but culp will continue to be chairman of ge which will contain aviation it's my understanding and i think made fairly clear, the name, as of now, is not going to change but the other two companies may have a different future. i'm not sure what the names are going to be. as you know, becky, as well some of the key considerations are capital allocation how much debt you have with the respective companies spun off as well. >> they say it's about customers and what customers want but it's probably clearly what shareholders want too. the stocks up about 8% over this. >> is the legal hangover gone now with the operations? >> i think largely it is and capital is largely, you know, in the rear view mirror as well i did mention the long-term care

policies which caused so much pain and tens of billions in liability, joe what's left of them will be left with ge, which will be an aviation company we're talking a couple of years. this is not happening tomorrow you know, next year you'll get the health care spin, followed by the power in '24. so we have a ways to go before this company is truly three companies. >> should be interesting to watch. you know, for years i heard complaints that some of the operations that -- god, i almost said we. it's been a long time. but there were some complaints that in health care we were be behind sieman's or didn't have the quality of some equipment. how is the health care operation doing globally will it be a leader in the field? divided by three is that 40 billion apiece because it's

$120 billion market cap? is one going to be bigger than the other two? >> yes, i mean, it's funny they evened out because aviation did not have a great year during the covid period >> yeah. >> they're hoping that will change but aviation will continue to be perhaps the strongest. and as you know it's up to the market to decide in terms of multiples and potential growth ratings. one would imagine if they get their act together, given what's going on in the world given that would be a growth business for them to your point there are some questions about health care although they came the business is running well and the hope is aviation is part of a rebound taking place globally given culp's words we're in the post-covid period now. >> i have a great idea for the energy, david. what about -- think about, about

what ecoimagination did somebody already use that. >> like a weird elephant some kind of thing? >> turbines were a problem for a while. wind turbines. i guess they still -- >> yeah. >> suddenly they're en vogue in a big way. all right, faber >> can i ask -- >> go ahead. >> just one more question on the long-term liabilities, david, how much of that relates back to the pensions and the underfunding that they had there? i wondered because we're talking about the new strength of labor and i'm thinking did the john deere movement, where they have offered their employees to extend the pension plans to all new employees, too, unions shot it down so far because they want more but we've seen companies for a long time move away from the defined benefits and try to get away from that but with the rise of the labor movement you might see a lot more of that. >> it's a great question, becky. what i know at this point, they

claim that the pension obligations that they have, include about 8.5 billion since 2018 they funded they froze most of the pension plans in the u.s. and in, actually, the uk so i don't believe they expect to have any further contributions through the end of the decade and as for insurance and those mitigated funding risks that they claim they have, they contributed another 9.4 billion since 2018 for insurance so the thinking is that they're largely done on those fronts, becky. and that no shareholder in ge, which will be ge aviation, will be surprised at all by anything coming up. as we well know, those are good questions and we'll have to wait and see if we get a little more gran granularity. >> oh boy. faber. >> all right. >> you figure it's 738, right? is that how you --

>> yeah. i didn't change my clocks, joe. >> you didn't change your clocks boy i read that, faber i thought it was another faber i thought it was mark faber. >> i'm going to go back to sleep now. >> are you >> yeah. yeah don't worry. >> like a lot of our viewers i guess. it happens >> thanks, david >> all right >> see you >> coming up, new york brokerage firm douglas elman is spinning off as a public company. howard lorber joins us next, the ceo of the parent company and later don't miss our interview with charles stewart on sotheby's launch of a new platform and the huge billion ar auctions we'll see from the major art galleries this week we'll be right back. and strengthen client confidence in you. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

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real estate giant vector group is spinning off douglas elman. they previously owned it as a publicly traded company and robert frank joins us now with the details. hey, robert. >> good morning, douglas elliman real estate will be a stand alone publically traded company vector group filing last night to spin off with a listing on the new york stock exchange the deal will escalate the battle in

luxury real estate elliman will now have its own currency to buy other brokerages and buy talent investing in the company will be spun off with an additional $200 million in cash, the they're going to use that for acquisitions and technology. they'll receive one share of elliman for two shares of vector the sixth largest in the country, leading the luxury market in new york, florida and new england and the west coast it has 6,600 agents revenue of 1.3 billion. transaction value of $48 billion this year. that's up 70% over last year compass stock not doing well, down over 30% from the i.p.o. price in april real g up 30%.

elliman is looking to trade under the ticker symbol doug >> joining us with more on the deal and the market, howard lorber, president and ceo of the vector group why now, howard? make sense >> i think the timing is good, the markets are strong and one of the main reasons to do this is to give us currency to make deals if if there's -- go after it, if it's in our markets. >> right you'll have some currency, obviously. the most recent news item i guess is the return of people from other countries is that part of the reason that the coasts have not kept up with some of the cities in the middle of the country, like raleigh, durham or nashville in terms of price appreciation >> the big markets have been the low tax or no tax states it's really simple

we had florida but our florida business has grown tremendously. we went into texas, we're now in austin, dallas and houston we're looking at all those states for expansion there's a few other ones that we'll probably go into within a year but we think it's the right time and also allows us to have more interest in our stock because there are certain investors, certain funds and institutions that cannot buy tobacco, anything to do with tobacco. >> exactly that -- that's an obvious -- that's an obvious reason getting back to the notion tha the pandemic, hopefully, and the effects are waning, how much more upside do you think to expectations there is you saw the news about pfizer, i'm sure you follow all of that, howard it all makes a difference for the return to the office and just a return to life as it use

to be, doesn't it? >> yeah. different states like i'm in florida right now, and i'd say that's pretty much through pre-pandemic type of life, not 100% new york is a little slower but with the new mayor i think that's going in the same direction. but the markets themselves, look, i don't see how they go down you know, you have inflation, inflation is generally good for real estate prices you have low interest rates. you have a lot of money coming into the economy, so we expect a strong economy for those that worry about interest rates going up, we look back, saw some work done from starting in 1999 as rates went up, believe it or not, sales volume went up in real estate. so we're not worried we're not concerned about this >> what's it going to take for the high end in new york to come back or is it already back >> it's not -- i wouldn't say it's all the way back, but it is

definitely back. volume is back albeit at slightly lower prices, but the market is strong every month it gets stronger so i think it's on the right trend and, you know, hopefully the new mayor will be able to clean up the city and get rid of some of the problems that we're having and then the only issue is still going to be taxes. how do you lower taxes to get people to stay that's a tougher one >> howard we had you on at times during the last administration to talk about your longthron long-time friend, former president trump, and you were never hesitant to talk about that unlike others who didn't want to come on. what do you think of the prospects of him in 2024, do you know anything? >> not really. i don't know anything specific my guess is he's going to want to run will he run or not i think it depends on the timing

with, what happens between new and then. >> he made a comment like as long as i don't find some horrible healthreason, that would preclude it, but i guess all of us get up every morning unless we find some horrible health reason -- >> that is true. my guess is, it could be a couple of other reasons also he wouldn't run. >> could be. thought i'd throw that in. we used to ask you every time, remember, and you were only too willing to talk about it which got to hand it to you. it took some courage back then still does, i think. believe me thank you, howard. >> depends who asks the question sometimes i don't. i know you're pretty fair, joe. >> right exactly. thank you. when we come back, softbank's ceo out with a warning about the tech crackdown in china we have that story and the impact on investors right after this

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the fallout from china's tech crackdown hitting japanese investment powerhouse soft bank took a $54 billion let in the last quarter those shares surged after the ceo said he still had money for share buybacks and was, in his words, glad to be less dependent on china joining us now with more on the crackdown in china joyce chang, head of research. it's good to have you on one of the things that struck me about sort of your take on what's happening is that the move to whatever you want to call it. what do we call it, common prosperity or whatever we see president xi doing, that's important. but maybe not as important as ongoing competitive tension between the west and china and

the u.s. specifically and china. that's going to continue i couldn't help think about those mock-up aircraft carriers and what the heck does that mean that they've built over there to sort of eye how to strategically deal with some of our u.s., some of our aircraft carriers, it seems like it's getting kind of serious. >> i completely agree with you we're in a full fledge competition on the tech side and cyber side, in addition, they're going through a longer-term domestic policy change the central party is meeting this week and they're really laying out plans all the way through 2050 part of that is really looking at greater financial stability, more affordable housing, reducing the inequities as well. so taking a look at this fast tech down. there is nine different components to it which conclude

data privacy and includes greater competition, having more competition within the echo system i think market has completely priced this in now we are still under way on the tech stocks here >> joyce, the rational for president xi and i mean, obviously, he wants to stay in power. there are some decisions there coming up. did some private sector companies and ceo get too big for their britches or is this really about trying to solve income inequality for the good of the average person living in coin what's he really trying to do? what's behind it >> well, i mean both are actually right disposable income is for services that are expensive, education, affordable housing,

healthcare, there is common prosperity to address the inequity there are times that sectors this e have grown on the economy side and trying the to have a history of this. in the past, we seen them do this on nt, on the basking sector you seem to see them do this on a number of sectors. so this isn't something that is that different it means since august, we've taken down the growth forecast five times we have growth if 2022 at 4.7% now that is something that's deliberate on china's part they are not having the growth of the working age population of five years ago him they're making adjustments now to get to a rebalanceing of the growth and to take a look at the sectors where there has been rapid expansion but not that much regulation

>> that's what i was going to ask you, it has to be apparent in terms of gdp and foreign investment and the valuation of the stocks that we're talking about. it hit hard, you pointed out, growth is the slowing. so when do they say, okay, we're going to back off, three steps forward, two steps back. i think that's coming, isn't it? they have ridden the capitalism horse to in their own way in the communist version of that i don't know what that means, but they have benefitted by that you live by the sword, you die by the scored, you think they would say, all right we've done enough of this, we're going back to more flee oriented policy >> i think what they based this on is based on foreign fal to come in i think there is a difference between being a portfolio investor in china. i don't see the multi-national

companies changing their strategy here. they see the size of the market, the growth potential the fact that they will be the same soyuz as the u.s. economy i think that growth is something we're going to look at a slowdown more to 5.5%. we're at 4.7% next year. i don't think it's something that is anti-foreign exam. i think they want the capital there on their own terms that's really more of what the issue the. but they also. to start regulating these sectors where they have been supersized they want to make sure there is greater competition for the data usage, that there is the ability necessarily to do exclusivity within these sectors. >> we tone have time, but the taiwan issue, that would cast a pa whether l on foreign investors, nobody knows, i guess, joyce, but something to keep an eye on, no doubt

thanks, we appreciate having you on >> thanks, it's grit to be with you. when we come back, much more on that news that just broke this hour about ge splitting into three publicly trading companies. it will not happen immediately it will happen overtime. you can see the stock surge at 12.8% right now. we'll have much more for what it means for investors right after this brake this brake sflmplts ♪

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. breaking news in the last hour, general electric announcing it is splitting up three public companies saying they will focus on aviation after the spin-off. details in a moment. major averages coming off record-seting day, the s&p, nasdaq and russell all ending at an all time high we'll get you up to speed on the trade session a big week for art auctions which have expected to pop a billion dollars, the ceo of sotheby's will be here to talk about the prospects and the second hour of "squawk box." begins right now

>> good morning, welcome back to "squawk box," here at cnbc live from the nasdaq market site in time's square along with becky quick and andrew, he'll join us in the next hour with a preview him but in the meantime, u.s. equity futures a in the hour are mixed, but they have been doing well forever i don't know what time frame you want to put on it. the dow is backing off 24 points this morning of course, what's happening with ge has nothing to do with what's happening in the dow, does it? >> no, you might have to take yourself back to remember that i think it's 65 record highs for the s&p this year i think. >> 65 for the s&p, but who's

counting let's get to dom chu, who is looking at what's moving in the pre market, including the aforementioned ge, following the big news that it's splitting up. how many, i mean it's still ge we're talking $118 million market cap i don't have to look far for a company that's worth more. >> no, absolutely. just the idea you had mentioned, i remember the days when it was a part of the dow. i remember when i first started by wall street career back in the days, going back to the. dot-com area we'll call it a $120 market cap, it will add 13%, ge announced it will separate into three separate publicly paint companies, into healthcare,

looking to unlock shareholder value and getting that into investor's hands that want to focus on that part of the market outperforming up 42% $150 billion if you go back over the course of the last 20 years or so, remember, general electric was a huge behemoth back in the day. if you go back to follow the dot-com era, it was at one point on a closing basis relatively speaking $590 billion so there has been a lot of movement with ge over the years. trying to figure out if that break will give it some way to get back to some of that shareholder value back in the day. so we'll watch those shares. also watching what's happening right now with self-driving cars we had big news with nvidia with the metaverse. it will be with nvidia, luminar

technologies is up and it's chosen it for the lazor technology luminar will be a part of that nvidia self driving, autonomous platform they share 4%. we'll see probably another opening high watch some of the self driving and crypto currency, it hit a record high. it gets a gold star. it hits record highs we are looking at u.s. global up 2% $362, the figure, the last trade there, microstrategies, you mentioned with regard to bitcoin and crypto currency, those

shares are up 2.67%. there is a lot of green and a lot is driven by the deal headlines and crypto currencies as well. the momentum continues. >> what do we want do we want to get to the day we don't touch the steering wheel is that the end all-be all where we're headed here? is that what we want >> joe, i would ask you, what do you want >> i'm a driver, i have seven gears and a clutch. >> we all like to drive. we want our kids to drive. >> that's what i say, there will come a time what happens when i pack the family into my car in the driveway we all get in there say at 9:00

and i wake up in the morning in north carolina. >> or you could do family game night, all the chairs around. >> exactly i only know because i watch becky rawl up in that big jeep she's got sometimes. >> i got rid of the jeep. >> is it a mini van now? >> a big storm system following her. heavy rain, wind >> here's the deal here's the reason we all like driving, right you will get down to north carolina driving 55 the spire way. it will take you an extra two hours. >> dom, should i like get iron byron to be my golf thing. i don't need to golf anymore, i don't need my swing. is that what we want >> i'd like to actually do it. if somebody can show me.

>> i'm not that robot, you give me too much credit i need to go to that place where the robot tells me about my swing. >> robots in the future. programing note, general electric chairman and ceo larry culp will be on at 9:45 eastern. in the meantime, rivian, phil le beau joins us, he has the detail there is a lot of hype around this and a lot of money, too >> don't be surprised if this runs because once it starts trading tomorrow, i've talked to a number of executives in the auto industry the level of anticipation and how much excitement there is around rivian, we haven't seen this in a long time. let's bring everybody up to

speed in terms of what the ipo will come out as previously, the range was 57 to $62 a share him now 72 to 74 a share and the valuation is now up to $65 b. let's put that valuation into some perspective with either ev start-ups or established auto makers out there trading in terms of their market caps. you got rivian coming in, valued more than the market cap of honda, getting close to lucid and ford is 79 billion by the way, that ford valuation, go back six months, it was far lower, down to 55 or 60 billion. it's taken off within the last six months or so so for rivian, we know so much about the r-1 pickup truck we did a rehave you. we had a chance to drive it, get a sense of what it's all about they are expecting to deliver 1,000 pickup trucks this year. they have lost $994 million.

they did that in the first half of the year. they had 431 thousand orders, the other business perhaps not appreciated as it should be is amazon, amazon and ford, amazon has 20%. ford has 12% many people said look if you are looking at rivian as a ev play, that's understandable. you are discounting the potential growth with amazon they got 100,000 electric delivery vans they're in the process of working on him some are already delivered to amazon. many believe that order will grow substantially in the years to come. remember, amazon doubled down on its rivian investment. they're not going to cash out and walk away. they look at rivian as a way to continue to grow when it comes to autonomous vehicles in the

future electric vehicles. watch this ipo tomorrow. when i talked to executives in the industry, all say the same thing. this is the ipo to watch if you were going to play one in the ev autonomous space, this was the one they said you wanted to keep your eye on. >> so that makes a lot of sense. the amazon deal, the amazon partnership. it's really weird to think of amson being in a partnership where it doesn't own the entire thing or use its muscle for the deal it's different, i'm trying to think of another single amazon partnership where the stakes are the same they own 20% not the whole company. not zero so they can't kind of brow beat them into a better deal. it's just interesting, especially considering it can be so much higher than honda, which sells 5 million cars a year. >> sure. that gets back to traditional

auto makers that have not yet made a transition into the world of electric and autonomous vehicles one other thing to keep in mind with amazon, think of all of the data they are going to be collecting through the rivian electric amazon delivery vans. 100,000 are on order i have been told that order base will grow substantially in the future and the reason that amazon is a partner with rivian is that ceo r.j. scringe says i want two things, a data tech company and an established auto make tore help us with the manufacturing. that's ultimately why they partnered with ford, ultimately why they partnered with amazon, very strategic how they have grown this company and r.j. is one of the ceos who is very intense but understated. and he sought out amazon, not you know, he talked to other tech companies as well

but he sought out amazon because of the potential for what amazon can bring to the table on the tech side. >> let me read you another headline crossing just now i want to check out shares of gm and ev go. because they are expanding their agreement to provide high powered chargers across the united states. under this new deal, they will be deploying 250 charging cells, maybe this plays into what we are hearing from the infrastructure bill, 7.5 billion put aside to expand ev charging stations >> yep look, this partnership was a while ago. i want to say a year-and-a-half ago, it was primarily going to be at metropolitan areas, what are the key areas where we believe electric vehicle growth will take place fastest or quickest in the united states? at the time, mary barra made it clear that was a downpayment on

the future they were going to expand. i wouldn't be surprised to see this grow over the next couple years. you need that infrastructure out there. that is going to convince a lot of people who might be interesting in electric vehicles no finally say, okay, yes, i'm comfortable. the range will be with the vehicle. if i need to make a longer trip, i will be comfortable there will be places to charge along the way. >> phil, thank you by the way, folks, in the next hour of "squawk box," we do have more auto news, you don't want to miss hertz interim ceo mark fields, who will be joining us with greg o'hara and tom wagner they will join us live as hertz returns to the nasdaq today. we will talk about that and that deal with tesla and much more. coming up next, enrollment numbers are down dramatically.

there is one school that seems to be bucking the trends we will speak to purdue we will speak to purdue university ye daniels and how things have changed since covid. stay tuned stay tuned zplmplts...yeah, like if we buy a new house? mmmm... and our son just started working. oh! do you offer a complimentary retirement plan for him? as in free? just like schwab. schwab! look forward to planning with schwab. ♪ ♪ 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, like real time cgi. okay...

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which owns caribou coffee and einstein bagels says it plans to apply for a ceo. danny meyer says he's personally will invest in panera brands at the time of the ipo. he will back panera through his spac usg acquisition corps the spac has agreed to invest its holdings it will become the lead director of the board >> interesting twist you know, the pandemic accelerates many trends, including a historic drop, colleges and universities are on track to have half a million fewer undergraduates our next friend is bucking this trend. he has insight as to what's happening here the former omb governor is now purdue's president this fall, purdue set a record and it's always great to see

you. thanks for being here today. >> good morning, becky >> let's talk about on a national level first we were maybe not so surprised to see a down turn in en enrollment, when kids couldn't go to school this year you see another decline, something like a 6% decline over a two-year period we haven't seen levels like that in over 50 years what happened? why aren't people coming back now that schools are opened? >> you used the right word when you said accelerant. this has been there a decade it starts that we haven't had enough children in this country, so the total numbers of college of americans is flat, working down a little. but the percentage choosing to go has been dropping it dropped a lot this year i don't think you can attribute it all to covid, the price, the people are finally beginning to question the value of what they

have been paying, in some cases, extraordinary amounts borrowing much of that money i no i that this year for the first time and it seems like forever, college tuition and fees rose again, but for the first time, less than inflation. >> you see that, you see maybe higher paying opportunities for people who don't have college careers, maybe some other tracks emphasized out there, then you keep hearing about these kind of lost and forgotten groups of students, i've heard it's been a bigger impact for low income students who maybe don't want to take on that amount of debt. it's been a big issue for women of color and white men have dropped off in the numbers, there are more women than men. these are all partial reasons, what do you think is happening here >> these are all problems that ought to concern is us all you talk about the lack or

shortfall of first generation students, low income students, we're all trying to work on that, we at purdue started three high schools of our own, because we weren't getting the numbers of college-ready students out of school systems of our state or others this is all obviously becoming worse right now as the pool of those folks choosing or feeling they are able to go to college has shrunk further we did find that managing one ways through the covid situation in 2020 had a positive impact in the surprising flood of students, many of them noted as a decisive reason. we were here we were opened we had most of our classes partially in person. when they compare to places locked down or stayed closed altogether, they found that preferable. >> you have done something about tuition and tried to make sure

you are capping tuition, it's not rising even with the price of inflation, even with the cost of inflation. >> next year will mark year 10 in which we at purdue have not raised tuition of our other fees, we're actually less expensive and nominal that is unadjusted dollars to go here than there was in 2012 that's something we thought we au ought to do. it's turned as a matter of keeping our education affordable and accessible it's turned out i think to be a wise thing to do it's obviously one reason for the year on record growth we've had while others were shrinking. >> mitch, how were you able to do that? you ask college, why costs are going up faster than the price of inflation they'll give you a laundry list of what they have to pay for how are you able to be you can that trend >> you don't have to pay for everything, some schools choose to pay for that's a part of it, if you, i

think the simplest thing to say is there haven't been giant magic bullets that we have discovered we simply have made this a commitment i think it's one thing on a dan vas, which thank goodness has differing opinions about almost every subject, keeping this place affordable, opened to young people of any income level is something we all agree on and that everyone, when everyone in a big organization is headed in the same direction, in this case, looking for savings, large and small, you'd be surprised what you can do. >> mitch, i want to ask you about an op-ed you have in the washington post that's come out, too, it takes a pretty stark look at what's happening in degrees right now. you say the biden's work around damaged machinery, what are you talking about? >> i am talking about the growing propensity and both party, multiple administrations

have engaged in it to depart from the established rules of the game, not to get those rules reformed and then change them. and that's a xoet from an administration official. this business of the mandate, probably unconstitutional for the federal government to do what they are seeking to do on mandating vaccine nations in all sorts of establishments, public and private. they describe it as a work around that's a piece with what's going on in other corners of the government i quoted the grave human rights activists, gary kasparov, who has appeared on our campus a few months ago he said this is where someone who has watched democracy collapse in his own country. he says, this is where it happens when people decide that i can rig the rules or evade the rules, just because they have a good reason to do so. >> so you are talking about the

vaccine mandate. it sounds like you are talking more broadly about the executive orders the president i wouldn't say have been used in more numbers, they have been used in higher numbers before maybe nor the last several administrations, you have seen executive orders do things they haven't done in the past maybe do things they couldn't get passed in congress once you have an executive order, you can have a presidential veto override if congress tries to change it. >> an executive order is elicit, i signed a lot in my one tour in elective office. they need to be within the law, accomplish a goal or address a goal the government has the enumerated power to address and in some cases, those lines have been blurred or trespassed >> you are still riding high from your win? your big upset over michigan state? >> yeah. well, it was a great night i might misremember.

but it seems to me that your side kick joe in cincinnati, if i'm right, then he can send us a thank you card i think we improve their chances you. >> you've had some great wince and i hear that for hoops this year, are you a force to be reckoned with. have you heard that? >> heard that? i have said that for quite some time we are a very talented theme we have a grate high principled coach. watch out for us >> my parents are boiler makers, by the way both of them >> i don't know, is cincinnati going to be in the playoffs? they won't let them in the playoffs they barely beat tulsa, how good thank you they are >> it's not for me to say. we keep pushing people out of your path. i think a word of thanks of a

six-pack >> all right thank you. thank you for a lot of things. >> yeah, that's right. or skyline chili there is a gold star a lot of rivalry there, mitch. you probably know that thank you, it's great to have you on rules on royal caribbean, details when we come back. details when we come back. dad, we got this. we got this.

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plus is poland broken? the director of a major institute weighs in. > . news just breaking, royal caribbean ceo is stepping down richard fain and ceo jason liberty will succeed him as ceo. the stock as you can see right now either traded or it's down a penny. some promising startups are drumming up business at the u.s. climate summit in glasgow. diana olick joins us. >> reporter: the theme is innovation, one of the startup spaces is carbon removal from biomass charm. one of the largest carbon

offenders. charm takes that waste, boils it into an oil and shoots it deep underground so it can't emit it completed 5,000 tons of carbon removal in year, which it claims is the most ever done in that time. they met with industry and government leaders as well as customers over the weekend and, of course, a scottish sheep farm. >> we are very focused on delivery and changing the tar narrative to one of delivery we need to scale up, demand and supply, so there is a lot to figure out >> reporter: so investors in charm include microsoft, shopify, square, stripe, stripe's director says it's looking no the fastest customers, they are most vulnerable to climate change. >> in the long run, climate change is one of the biggest there etc. to economic growth. so we care about how we can do our part and use sort of the place we live in the ecosystem

with 2 million businesses to accelerate climate solutions >> reporter: stripe and others view charm's removal as a credit to offset their own carbon emissions. back to you, guys. >> thank you very much when we come back, it's as easy as taking cash out of an atm. instead of cash, you get crypto currency like bitcoin. some crypto atms are popping up all over the country so why are they on law enforcement's radar? the cnbc investigation sums it up for us. we'll be right back. we'll be right back.

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the fbi warning about fraudulent schemes targeting crypto currency atms with criminals direct victims to use the atms and send funds that are then used for legal activity the atms are found around the country that accept cash in exchange for bitcoin and other crypto currencies, for months, cnbc has been investigating this new atm. here is eamon javers with cash in, fraud out. >> reporter: >> welcome to bitcoin in miami 2021. >> reporter: here at the bitcoin conference, nearly everyone is talking about cashing in on the crypto craze >> we're trying to push education. >> you can do that in one transaction. >> you can use whatever wallet you want to use to store your crypto currencies.

>> money that make their money charge ac premium on each transaction are a growing part of the industry, with more than 26,000 kiosks, these machines are a huge convenience and also it can be a huge target for fraud. >> how easy is it for criminals to exploit these machines? >> it seems like it's very simple. >> reporter: lisa chelino is counsel which looked into atms finding many with virtually no oversight. even though their owners must register with the financial crimes enforcement network >> there is no i.d. collected. no photo taken no address. >> that opposite the doors for criminals? >> yes >> what do they do with it >> anything from money laundering, dark web, fraud, scams. >> reporter: they discovered more than 70 million deposited for crypto currency purse between 2015 and 2020. many allowed customers to buy up to $900 of crypto currency with

only a cell phone number or no information at all >> is that a bad idea? >> based on what we found, it can be any name, your cell phone number can come back to anybody. >> reporter: which is handy for drug traffickers and money launders, who the dea are aiding the movement of illicit bulk currency we wanted to see how easy it was to buy bitcoin with just a phone number the producer tested it out at this machine at a new jersey convenience store. after getting this text warning about crypto scams, it only took a few minutes to complete the transaction a. spokesperson for the company that run the atm says they take knowing customer's identities seriously and will allow only a transaction with a cell phone number if they can verify who is buying crypto. if not, the machine will ask for an i.d. >> it's somewhat of a wild west. >> reporter: digital mint, a chicago-based company is trying to clean up the crypto atm

industry >> these commerce would believe they would not be victims and would state they will go to other companies who never ask me questions and purchase how much i want. >> reporter: digital mint launched a compliance cooperative to apply standard. one study found nearly 75% of all the illicit funds leaving atms wound up at fraud shops, cites on the dark web which sells stolen credit card information. they need to verify plus a phone number one of their competitors is coin flip, also based in chicago. the company allows someone oto purchase up to $900 in crypto, higher amounts require more identification >> is that safe? >> it's 100% safe. >> why >> even if someone shows an i.d., if you send bitcoin to someone you don't know, have you the same problem. >> reporter: they want to serve a wide range of customer sfwls

we want everyone to buy $50s 100 of bitcoin regardless of their immigration status or if they have an i.d. everyone who wants access to bitcoin deserves to have access to it. >> we know how this system works. you know, we have been doing this for six years we know how to keep people safe. >> reporter: new jersey now has pending legislation to require all crypto operators to get a license in the state around the country it varies widely, some states requiring a license, others have no oversight of this fast-growing industry guys >> eamon, the justification now for companies that allow up to $900 to be sent with just a cell phone number, why do that? what is the justification for that >> reporter: well, you heard ben, the ceo of coin flip in the weiss right there. he is talking undocumented immigrants i talked to him in chicago it's fascinating he views crypto currency as sort

of a human right he feels like just about everybody should have access to it the bar to access should be extremely low. he says a lot of people unbanked don't have government i.d.s that are valid. he wants immigrants and other who's are unbanked now to be able to use his system to get access to crypto currency to send payments to their family or to anybody they want the argument on the flipside of that is that if you lower all those security standards to that level, you are inviting a lot of fraud. >> yep got it thanks, eamon. he got very busy eamon is very busy coming up, veteran an listing, the company is splitting into three hertz ceo mark fields will joins as the company prepares to go public on the nasdaq. stay tedun you are watching "squawk box." on cnbc. on cnbc. >>

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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. welcome back, everybody. let's take a look at shares of ge this morning. up by 7% they have been up higher then that, as much as 8%. news that the company plans to separate into three public companies. joining us right now for more on this is nicholas heymann the global head at william and blair company. the plan is to spread out into ge aviation and renewable power and ge digital businesses. this will happen over the next

couple of years. first they'll spin off healthcare in 2023 and power in early 2024 both are expected to be tax-free spin-offs for this what do you think? >> well, i think there is a couple messages here first all of ge's businesses are back there have been a lot of question about the extent to which aviation was going to be able to recover to its 2019 in upper performance level. and, you know, i think that clearly they are de-levered with the fail of ge gas leaking they will pay down another 24 billion in debt and you'll end up with a leverage of 2.5. so basically all the three boats can float independently. but, in turn, i think it signals the end of the conglomerate holding company thesis that there is better valueation for each of the companies which are strong leaders in each of their markets. >> and you agree with tha this

thesis >> they hired a woman and was really strong in that area that signaled to me that that probably was, you know, the first to be peeled out and i thought that perhaps you would go forward with the energy power and the aviation together, but to get better valuations, all are strong leaders in their fields, are you separating dissecretly those three businesses i think that's fair. you have a strong recovery, particularly offshore built out this decade and the power business is doing very well and they're well on track to convert to a green hydrogen renewable environment. so you know, there is a pretty good growth outlook for these businesses, ironically. >> you like each of these businesses, would you want to

own each of them >> yeah, they're, you know, healthcare is very resilient you know really leveraging digital analytics a different way. to be able to improve not in terms of their equipment, but the speed of all their imaging they are doing can be read aviation is now working on the rise engine. it's going to be a hydrogen engine that will fly on an airbus, acre, mid-30s. there is strong wind position for that ge has strong expertise coming off the early conversion of their gas turbins to run on hydrogen not 100% yet that's common. so the energy change is actually a big catalyst for growth for ge >> go ahead, finish your thought, sorry >> no, no, go ahead. >> i want to ask, how long have been covering ge i think i have been talking to

you about this company for more than 20 years. correct me if i'm wrong? >> yes, since '83. >> since 1983, what have you seen over the arc of that time and you know how shocked and surprised are you? >> i have to find my own job, i worked at ge this guy jack walsh was going to turn the place upsidedown. the guy was the youngest, 45 to run this company particularly since he was keen to work out of everything they were already a leader at this concept was radical. he introduced the concept of not waiting to take a loss when you closed this business, but actually restructuring it, you know before that occurred. you know, it's been an interesting you know company to certainly follow and obviously the transition from jack to

jeff you know, on to john briefly then to larry and you know larry has kind of reshaped not just ge to, who, but to reshape it in the format that he really believes can generate the most value. he's done a good job those questions have all been diminished right now now it's set up to grow as opposed to setting it up to survive. >> great talking to you this morning. your analysis of the end of the conglomerate holding company is pretty obvious, but hearing that history is something that takes us all back. don't miss ge ceo larry culp at 9:45 eastern time this morning >> yes >> think there is anyway the options at 43, it's at 116 now do you think if they ask about

that -- >> they expired a while ago. >> they expired, too yeah if they were 43, i'm rich. wait a minute, oh, yeah. 10-to-1. 1 for 10 maybe not. maybe not. i use them for wall paper in the beautiful nursery. a beautiful room >> when we return, it is a big week for our auction, topping 1 billion. we will talk about the booming art market the rise of nfgs and what they have planned for this week and beyond, hertz making a move to the nasdaq the interim ceo mark fields will talk about his vision for the company. "squawk box." will be right back

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welcome back to "squawk box.." check out bitcoin this morning it's been over 68,000. there it is right now. 67, 632. it's a banner week for sotheby's, auctioning more than a billion dollars of art launching the nft market with its platform metaverse sotheby's sold $65 billion of nfts already so far this year. joining us now to discuss more is charles stewart, sotheby's's

ceo. have you sold when its born. >> we sold 100 as a group just over $25 million, joe. >> they were all -- it doesn't sound bored. >> they were not only board, they were in a jayacht club >> that doesn't sound board. on this news aggregator it said they're expecting some art to go 15 times the price it's listed at for auction what is happening? is it okay >> well, we are seeing we think historic market division, one because we have viewers and bidders back in our buildings, we are fortunate to welcome europeans back week the backdrop is strong and thirdly the materials are

exceptional. we have a confluence of factors, yes, i think it will be an epic week next week >> what is going on behind the scenes there are some changes, proposed changes in the, i like that, they call it human infrastructure to me it sounds like a hip brace, a knee replacement. i got filling for your teeth human, i need a lot of it. what do you think is really going on with this the fed? what, this is unbelievable it can't go on, are we setting ourselves up for a tulip mania event? >> i think one of the big things going on is you see incredible quality of supply. in our case, we're bringing the macrocollection to market next week we're selling one of the only

first editions of the u.s. constitution in private hands, so you are seeing an incredible quality of material. i think that's probably the number one factor. of course, it's supported by very strong market conditions. we're seeing that across all of our categories, that's for sure. >> the make was good to billionaires i said that, good for a lot of wealthy people, assets get marked up as the fed stays at zero what else goes into the thinking for people that really have more money than they know what to do with in terms of art i guess it goes up over time is it off ambulance sheet. what is going on in that regard? >> i do think in financial terms, art as an alternative investment stage in a world where there is a lot of volatility and uncertainty, art is something you can have a passion for, you can have it on

your walls and it has performed very well as an investment as well, i really think the large majority of our clients, you know, start a art as a collect passion and the best investors are the one who's are the best collectors as well >> also the nft phenomenon and in your view, in this article, i'm seeing some interesting things in the old day, rare books would be sold and rare books i guess you put them in a box somewhere, they sit there, they're worth that much s. that analogous to having something on the block chain where everybody can see it, everybody can read it? you got the original copy of the box in that's going to last this is here to stay and sovt sotheby's will be a part of that >> we are proud to have our

platform the metaverse, we announced weeks ago, when you unpack the phenomenon, there is the aesthetic, the leakage with crypto and the art chain and art being produced in smart contract foreign minister when you put it together, there is no question we are seeing an enormous new influx of aundz audience, we had thousands of bidders in the sales we held over the last few months and a large majority new to sotheby's. so it's a new audience participating in this yeah, we think it's early and volatile there is an underlying trend here to stay >> i am torn between having a really opened mind, charles, and then just thinking that wow, i'm like the other people pointing to a close on the naked emperor. i go back and forth. i said it in the past.

i will alienate people, like rothco i can see there is more going on than with like a line across separating you know two dull colors or a sneaky vampire those people go wild with that stuff. who am i to say? you have to say that every day when you wake up in the morning. >> maybe are you an nft guy after all, absolutely. you can have an nft this if that happens. >> nft, double the uses. people get really mad. i got to look at the rothcoa little longer, i don't know, maybe the lighting >> it can be a beautiful one behind me. >> that's a beauty >> it's a thing of bu can i. >> that is a beauty. you have it yellow, charles, thank you, good luck what's the most precious piece you think you have that's going

to go just in the regular art world? what itself the neatest one? >> we have several pieces we expect to fetch over $50 million next monday night and the average value of our evening sales is just under 7 billion next week. so it's going to be a big week >> all right you still haven't gotten me that suitina i am asking for. >> i'm working on it >> "squawk box." will be right back

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good morning a new era for general electric the original dow component combating thomas edison, we will bring you all the breaking details. meanwhile, futures relatively calm ahead of key inflation data on the way, you saw record highs, the nasdaq the on an 11-sex win streak. speaking of the nasdaq, that's what hertz is about, completing the car rental giant's big come back from pandemic loser to mean stock to big time tesla customers. we will speak with interim ceo mark fields as the final hour of

"squawk box." begins right now [ music playing good morning, everybody, welcome to "squawk box." here on cnbc i'm becky quick. andrew is getting ready for a deals conference he will join us later this hour. in the meantime, yesterday was a big day, plus the russell 2,000 closing at all time highs. have you seen some pressure that's come on the dow futures, now down 94 points it didn't start the morning out that way s&p futures have turned negative, too. they're off by 6.5 the nasdaq is powering higher up again by 12.5. in the meantime, the treasury market if you are watching the yields, they have continued to come un, the ten year and 30

year at 8.25%. additional pressure on the long end there. the major crypto currencies have been trading higher. maybe it's a product of inflation or different thing, but they have been trading higher bitcoin and ether hitting new highs yesterday. they will continue to watch that too. our top corporate story of the morning, general electric announcing it is breaking up into three separate public companies, they will focus on aviation and energy. the company said in a news release, it plans to spin off the healthcare unit by early 2023 and the energy unit by 2024 ceo larry culp will retain the ge name. culp will be joining "squawk on the street" at 9:45 in the next hour and up just before that i'm going to have the opening bell that is in about 90 minutes.

dom chu joins us with pre-market movers >> lose stream with the last hour we are seeing some expand gains this morning in the pre-market trade, first of all, one of the bigger stories with regard to electric vehicles and charging stations evo makes that network of charging stations that can go across the country those shares are up 36% right now, largely in part because of two different separate but linked kind of headlines, general motors expanded with evo to provide more additional charging stations, 500 additional ones, that brings the total to 250 charging stations across the country and uber and evo have a partner where they provide uber high volume drivers with access to electric vehicle

charging stations, ev go, general motors all moving. also, with regard to autonomous driving in the future of transportation, check out shares of luminar signed to be a part of nvidia's self driving platform that is developing. they will provide the lazor proximity detection technology those two stocks are on the move as we often do in this third hour of "squawk," check on the ticker headlights from yesterday's full session electric vehicle tesla, up about 1% paypal on the heels of its earnings down 5.5%, advanced microwith metaplatforms up 2% and road blocks big earnings mover up yesterday, up 26% right now, peloton getting a bounce

after recent weakness following its earnings release, joe, some things on the move there the rest of the top 10 are on my twitter feed we'll send this over to you. >> we know that, thanks. we are getting news from fitness giant peloton, dianne olick joins us now with more, recapturing car bbon, >> no, it's completely unrelated, joe peloton is announcing its first connected strength product this may be why we are seeing a bounce in the stock. this will put it in direct competition with leaders there is real actual strength equipment, though. it's an ai smart camera that uses machine learning to track your movements and your strength the base sticker price is $495 they're calming it peloton guide. it has a movement tracker.

users can compare their forms in real time. body activity tracker shows me which muscles work and recommend classes based on that it's voice activated. users can control the device hand-free since working out. peloton released a treadmil. pel peloton were week weaker than expected which led to a hiring freeze, down year-to-date about 10 billion have been wiped out in market cap since last thursday joe. >> that is amazing i guess i understand it to some extent best of times, worst of times. that may be the revaries e veseyal of the pandemic play also zoom. we will still use zoom people will still be on bikes.

but a lot of people going back to the games >> they are pushing out product. the ceo john foley told me he expects when people go back, they will do some at home and at the gym. which is where they have with the bike and the trends. >> someone said it is just an exercise bike. when you get a multiple on the stock. it's so high you bring it back to earth like that things get ahead of themselves dine nevada as we know in this marmt when the fed is at zero. thanks for now we'll see. >> when we come back now the car rental giant coming back on the nasdaq that's happening today

we will speak with interim ceo mark fields and two of hertz' board members. as we he ed to a break let's check out shares of gaming company zinga. it's up 8.5%

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it's been a wild 18 months for car rental giant hertz covid hit the company hard, pushing it into a chapter 11 bankruptcy in may of 2020. over the next year, hertz reorganized, built a new board of directors and named an interim ceo leading us to what you might call a relisting on the nasdaq hertz announcing a public offering of 44.5 million stock at $29 apiece. the company won't receive proceeds it's coming from existing backers. hertz will be trading under the interim ceo of hertz and of ford greg o'hara is the founder and senior board mem you all.

>> thanks, becky >> greg, why you, just in terms of what attracted you to hertz when you were looking at what was happening during the pandemic, what was happening with travel and what made you think that this was actually going to be a good investment? because there were pretty dark days >> there were some dark days we had a theory of what was going on in the travel industry and we have all kind of different data sources that indicated that americans were going to stay home, that americans were going to, if they did vacation, they'd vacation domestically that would mean they'd rent cars when they traveled we had good data searchable online and off line, that indicated there will be a demand

for cars a small statistic said it would be a chip shortage that would not enable the rental car companies to refleet the combination of higher demand for invent ore and lower supply that led you to see the prices you had on the way >> you had the situation where you had a huge fleet of cars, you had to get of and sell cars, that was beneficial when used car prices were skyrocketing that left with you a smaller fleet. not only you, other car companies, too, when travel did come back, the prices were higher this has been a long road coming out of bankruptcy. >> yeah, i think there were a number of events that led to a fortuitous environment but that led to our overearning and building up substantial cash balance that aloud us to pursue

new lines of business. we're trying to expand into new areas and offerings to grow beyond the traditional business hertz has so effectively provided over the last 103 years. i think it's new areas that have us excited so we hope other investors as well we think it's a very interesting time in the auto rental industry our objective is to be very forward looking in how we help guide the company. >> mark, let's jump off on that it has been an interesting time, watching what's happened to the mark and in other places, hertz was a mean stock, one of the original mean stocks that people went through are you still going to be a mean stock if you want to be a mean stock at this point? >> well, i can never predict what the market is going to do all we are focused on is running a terrific company we are proud of the team importantly, this is not about

lentr renting an excellent company. this sls a about a transformation of hertz. this is about us positioning ourselves to lead and be a central player and role and component of the modern mobility ecosystem. we are uniquely positioned to do that i think this gives us a lot of optionality as a company going forward. we will stay focused on delivering results and watch the market from this. >> the stock prices took off as some of the announcements, the partnerships with car vanna, uber and i think especially tesla. that kind of excited the market. the idea that you would be taking delivery of 100,000 teslas, people come and rent those cars, but that announcement got kicked around when elon musk said the deal hadn't been signed what happened? where do things stand?

>> we're very excited to have electric vehicles in our fleet we're thrilled to have vehicles where demand exceeds supply. we'll work with tesla and other oems to bring evs in the fleet in the way that works for oems and hertz. what's very important to us is ensuring the customer experience with evs is absolutely pristine. we're working on ways to make it a touchless rental experience. we're working to help guide the consumer once they've rented it. all of these things are substantial transformations of a business that has done things exactly the same way for the last number of decades and changing that customer experience will help prepare the industry for what's to come down the road i think electrification in charging the structure is the first step there will be a lot more we have to say in the future we're thrilled to chick things off with products that we know

consumers love and want to try >> what is the situation with tesla? are you you okay with paying list price for it? >> we have placed an order with tesla, like a all of our oem relationships, becky, once we get into the relationship, we work collaboratingtively, to make sure it works for all parties. it's important on our end to make sure you are prepared we got to make sure the customers are educated the work force is educated all of those things ensure we are able to deliver that pristine experience i referenced earlier. >> i hate to keep focusing, elon muck tweeted it wasn't an agreement. they don't need the extra demand there is so much demand there. where do things stand? can you tell us at this point? >> sure, there is no question demand composed supply at tesla.

there is an enormous built-up demand from us, from consumers in general for the products there. i think you know as i said, it's really about working to ensure that we bring the vehicles into the fleet in a time line that's consistent with what all parties want there is no question, becky, we could use a substantial number of vehicles, no question tesla can sell a substantial number of vehicles i think the key is working collaboratively to ensure that rollout is smooth and things operate to the benefit of the end consumer >> is it a kind contract or kind of a work in progress? >> no, i think the nuance you are speaking of there speaks to how the rental car purchase agreements work, which would take us a couple who yourself to discuss in full. i hate to bore everybody with the nuances of how these things work >> we don't need to know the nuance, are you paying full price? >> have you seen the public commentary as it relates to the price we'll pay. i think one thing that's important on evs is that evs

have a substantial amount of demand generally so the idea of purchasing vehicles at substantial discounts, which have been a key component for rental car companies that work in the past, probably doesn't work to evs, so, you know, we believe in paying a price for the oem and creates a real partnership there is no question that we want that collaboration to continue going forward. >> maybe twitter isn't in a place to negotiate it? >> i don't know if i have a twitter account. i will ask my kid for a sequence, i think for us, on a serious note we're thrilled to develop partnerships to bring you these into our flight. this was about building an ecosystem to move

electrification forward. not to rent to consumers but also other channels, stuff like the you ber channel we've developed. the charging infrastructure so critically important charging infrastructure, airports is something we are working very hard on, hopefully not just for our consumers, but for commerce of the oems on these vehicles as well >> let's talk about what's happening in the auto industry rate now there are transformative changes taking place we talked about luminar shares soaring on this and talking about rivian, it looks like a 60 million market cap for a kane that doesn't have sales and has big backers with ford and amazon how quickly are thing changeing? >> i think from our standpoint at hert, when you develop a strategy, that strategy has to be informed by key trend and as

we look at the world, we see four key trends, electrification, shared mobility, collected cars and autonomy when you look at our strategy at hertz, how we're transforming our business, the things we do better than anybody else around managing and operating large fleet scale for vehicles, i think we're positioning ourselves wherever probability 2.0 goes you just mentioned a couple of xhls there but some of the new electrification players. we will be very well positioned to partner with any and all of these players to enable that going forward. even when you think down towards autonomy our first mover advantage in learning how to manage these large electrified fleets, i think that will service very well going forward, we want to partner with everybody as tom mentioned as we go as to sustainable transportation >> mark, how is the experience

going to look different for hertz consumers? somebody walk up to the car? >> we said clearly we want to lead a digital first experience. so we're making some very targeted investments to make sure that when a consumer and any time they interact with our brand, that they'll have a positive experience and it's kind of interesting, becky, you know, this industry is a terrific industry. it hasn't changed much over the last 50 years in terms of how you rent the vehicle, et cetera. as a company, we're asking ourselves, not to question why we're asking ourselves, to question why not i think you will continue to see pa lot of innovation from hertz, interestingly, innovation is in the dna of hertz, going back to when hertz was the first to have a coast-to-coast network, first to have airport locations, first to have our gold service so you will see us afternoon that up a lot over the next months and years ahead

>> tom, greg, met le ask you both, how long you plan to be investors in the stock part of this, the reason for this pricing today for this ipo, is to pay out some of your other partners, uber capital and oak tree who were investors along the way, how long will you all be here? is this something you sell out to retail investors you want to buy? or do you plan to be here a long time >> we have grand plans, this is a substantial innovation the partner works exceptionally well they bring to bare a data set. which will improve the way we run the business so many of the things we are embarking to complete in the transformation of hertz are in the early stages so this, today's event was about creating the floats for stocks so we could have a security with trades with some liquidity and

larger shareholders are willing to allow that to take place. we are looking at this as a first step, this is something we are excited about. >> we genuinely own companies over ten years so we don't have any plans to sell we don't have any plans to not sell i think what we want to do is work with mark and the rest of the hertz team to make this as good an investment we v. in the travel industry, we don't get pa lot of opportunities to electrify, so our investors, tom's investors and our joint investors are concerned with, you know, being environmentally responsible and socially conscious and as we found out when we were talking to investors about this deal, there really isn't very much out there to buy that makes actual cash where you can also do things that are environmentally responsibility a lot are growth plays, rivian has great revenue.

it has great backers this is something you can invest in at relatively attractive terms in the environmentally responsible space and you can get invested in a large way. i think you will find mark and the rest of the team are very committed to making this an ev play the markup on strategy really well, this morning i think you will find as our investors and ourselves get more and more comfortable with hertz, this will become a longer play for us >> one second. you say you don't have plans to sell, or is there some other metric you are watching? >> no, we're long-term holders of assets in general and what i was trying to do is be more cute than i should have been, which means we haven't focused on liquidity. as you see that transform over

time, you will see us get more comfortable. maybe we're buyers who knows? >> i am out of town. >> i was going to say greg's point about this is a cultural pivot in terms of us being an environmentally first company. i won't go so far to say we will change our corporate colors from yellow to green. >> definitely, i want to thank you all for joining us on this big day. we appreciate your time and hope to see you again soon. >> we appreciate it. >> coming up, new inflation data prices out just minutes stay tuned you are watching "squawk box." on cnbc. so you can address supply chain issues in real time, before they impact your bottom line. predicting and managing operational issues

that's why so many businesses work with ibm.

amc entertainment shares are falling. the company reported a smaller than expected quarter loss it beat revenues, though,

attendance jumped from 22 million in the prior corner to nearly 40 million. still behind pre pandemic levels ceo adam aaron said they are on the path to recovery but still need more to sell more tickets at amc rick santelli is standing by at cme in second to think about it what's the news? >> wow, the news is 30-year tips are at the lowest yield, negative, minus 54 base points ever you want to pay attention to that, for an october read on the producer price index the month over month, change is up .6 of 1%. exactly as expected and for some context, the post-covid high wautsdmark here is up 1.2. that was in january of this year if we strip off the all important food and energy, it's up .4 of 1%, joe, that's one-tenth wider than

expectations, both are higher than rear view mirror look this is double our .2 from last look if we look awere sequencely expecting up .1 hotter on all scores now the year over year, this is self where the most eyeballs are focused. that es are the numbers running hot. on final demand year over year, 8.6 we expect. 8.6 is the second time in a row. both of these are the highest ever, going back to the first month in 2010, when they recalibrated how they calculate this jeer over year, expected energy is up 6.8 and exactly like our last number. it's up 6.8 twice in a row that makes it the two hottest dreams ever going back to october. excuse me, november of 2010. and our last year over year is x

food energy and trade expected up 6.2 once again the economists nailed it up 6.2 this is the only one that isn't sitting at the hottest level up 6.3 if you are looking for any pause in the ppi numbers, it certainly really isn't in this data set. obviously, the month over month were a bit cooler than expectations at least on the x food energy and trade. but they're all hotter sequentially it's something to pay close attention to we also have 39 become and ten-year notes to be auctioned today. yesterday's note was very interesting, not necessarily tight auction. becky, back to you. >> rick, thank you any insight into why we are looking at these lower yields once again for the 10 year and

30 year? >> i think we're looking at a variety of reasons, obviously, the economy is not able to fire on all eight cylinders for reasons that we discuss every day on cnbc, supply chain, chip shortages, a subset of that i think the other reason is post-fed, central banks, of course, have the biggest trump is u stumps on the globe locally, how they are thinking together, the central bank versus ecb as much of their activities or lack of tightening of rate activities in the case of bank of england, it's coming back to push buyers into the treasuries, reversing the flattening trades before this last fed meeting or just generally speaking, it's impossible to fight the fed. i don't think the current bout of softer rates is necessarily giving us a better view of inflation down the road. it's ha ready to hold trades if

they're not working in your favor. >> when we get back, new thoughts on the inflation data and biden's spending bill. we'll be speaking to ceo of atlas bob diamond. andrew will be here. check it out this is cnbc. check it out this is cnbc. when you hear the word healthy it always feels a little out of reach. but it's all about the baby steps. maybe it's a jump or eating something green. or taking mom to get that vaccine. ♪ healthier means bringing stuff to the folks ♪ ♪ that really need it. ♪ ♪ like help at 2 am or care that's right at home. ♪

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. andrew is here he is kicking off the annual deal conference later this morning with a star-studded lineup andrew, we have been watching this, looking at the lineup. it looks amazing you have a lot coming up today. >> thank you we do this once a year this is our ten-year anniversary, i have been doing this summit 20 years by the way for dealbook this year we have millions of subscribers in their inbox i should think thank the folks that made this happen. we have a huge lineup. we will be kicking things off is tim cook, who will be joining us, after that, we will spend some time with wework co-founder and ceo adam newman. it's the first he has spoken in

more than two years, since he was ousted so many questions still to ask and unanswered we hope to get to ask and get those answers this morning later in the day, we will talk to melody hobton and megan the daughter of sussex we will talk to them about worlds of work and women and i think we will get into a lot of stuff. then in the afternoon, we will be spending time with pfizer ceo albert bourla and kent frazier, of course, both responsible for pressing so many ceos across the country earlier this year in terms of the right to vote and what may turn out to be the next governor of texas. he is polling higher than governor abbott is right now he's not saying he is running. that's mathew mcconaughey. so a big day on tap throughout the day. i know cnbc will be dipping into so many of these conversations throughout the day you can log on to watch all of

it at nytimes.com/dealbook2021 >> you are right i can't believe it's 20 years since dealbook started. >> we were supposed to have launched the week of 9/11. in fact, on 9/11, i was working on the prototype to make sure we can do it. 9/11 happened and we pushed it back into october of 2001 and here we are. in so many of the folks on the pages of dealbook, if you will, ending up in these conversations. so, it's been quite something. i think we will make some news over the next couple days. we got the secretary of state i should say by the way, tomorrow, anthony blinken will be joining us, along with a whom host of great guests, kenny griffin of citadel. i won't go into it all we will talk more tomorrow >> you mentioned that was all

starting the week of 9/11. that dove tails into ge, the day of 9 have been 11, the day that jack welch handed over the reigns kind of amazing so much can happen over 20 years >> i remember sitting at the press conference for that event. it's unbelievable i hate to say we're aging. >> you have not aged a moment. >> we have >> this is an amazing lineup i am looking forward to these stories. megan, the duchess of sussex, something to behold. >> it is, yep, it will be interesting to hear so much out. we will have tim cook on, talk about things like china and crypto and so many other issues, then i know a lot of folks have

gotten e-mails about adam newman there are folks fascinating, angry. we will talk about all of it >> it's good work, a huge lineup i understand why we are letting you slee in a little bit today, tomorrow, you need it we will be watching. >> thank you, you bet. >> all right all right. all right. why am i most excited about mathew mcconaughey coming up, jim cramer's first take on the trading day ahead, bob diamond on the markets and investor and inflation worries, ayllowing today's ppi datas. st tuned you are watching "squawk box." on cnbc. on cnbc. >> it makes it easier to develop great relationships with our suppliers. now everyone, everywhere loves jerry.

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october producer prices coming in as expected, but up .6 of 1%. the year over year gain 8.6% tomorrow we'll get the latest look at the cpi, consumer price index, on the data coming as investors try to gaze at the potential inflationary impact from the big infrastructure plan just passed and the hope for at least the biden administration, social spending package, joining us to talk about all this is bob diamond, ceo and the former ceo of barclays. i put a caveat in there, are you

hoping we do the $4 trillion some people say one and three-quarter trillion dollar human infrastructure, whatever that means do you think that is good legislation? >> well, joe, if we talk for just a second about what was just passed in the infrastructure bill, it was you know for a change, it was bipartisan it was spending in all the right areas. infrastructure is so important exam spending is to important. i think a lot of that half the money was earmarked, half is new money and will come over the next few years so i was very pleased. i think it was highly appropriate to pass that to be honest, i'm having a little hard time following this next one to 1 and three-quarter trillion where this is going to end up. it certainly doesn't have bipartisan support at the time i'm sure there are some good

things in there. like you, i am confused right now. pleased with the infrastructure bill. >> it doesn't have partisan support. >> exactly >> not that it doesn't have bipartisan support we're trying to figure out if it has partisan support you get to one and three-quarters with a lot of slight of hand, with programs going on that they say we will pay for it for two years i don't know what the last election means let me ask you about the inflation data, bob. >> yes >> is there a perfect storm brie brewing in terms of whether it's really systemic at this point? do you have a feeling there? i don't know about studying. closing down another pipeline repo reportedly we do not produce domestically we are back to being more dependent on opec and saudi

arabia their supply chain issues we knee the fed has been easy a long time. what are the main factors causing this inflation or is it more near term in your view? >> joe, i like the way you phrased the question there are so many one-offs and different things going on. when you go right to the core, what is inflation about. it's about prices rising for producers of goods and it's about stress or tension or higher costs in the labor market and we're seeing both of those clearly. if you go to the ppi today and look at the last 12-month average, producer price index for final goods is up 12% year on year and intermediate goods is up close to 20% year on year. so there are some real increases here i think we can explain some away as you said with supply shocks and there are some sustainable

things here like you know china is no longer the engine of growth or producing the cheap goods on the market, which was kind of a counterinflationary force at the time. so my view, joe, it is real. i think the ged fed was looking for inflation. i think if it came at 2, 2.5% in that range, the fed would be pretty happy my sense is this is likely going to be as we look out over the next year, 3% or higher. >> bob, you were a risk manager and i've phone each other for a long time, it's like being in a foxhole in that tournament, isn't it at&t, pebble beach >> it's a good foxhole >> i guess you know, i'm joking, obviously, i would never compare that, but with the crowd and everything else, it's country toing, the whole thing. you always were a risk manager that's all you ever thought

about was risk what's ricky, where the market is crypto, nfts, art, you name it bo bonds. >> i think where i get some comfort in that background, although growth was down significantly, 6.7% to 2%. the lowest quarter since the pandemic began on the other hand, the balance sheets of both consumers and businesses have never been stronger fiscal and monetary easeing is slowing down it's not like harsh or disappearing demand is still reasonably high. so i feel we can transition into

lower growth or kind of the in the 2-to-3% area >> so this is a secular bull market and financial let's talk equities, that we're in the middle of that lasts multi-years from here or of what's been a long bull already? does it last forever does technology give us the right to continue to flourish, do you think maybe it does. >> well, you hit, to me, the single most important ingredient in how long this is going to go is just what you said, technology and the future of technology and the impact technology has to be a -- kind of a counter force in terms of inflationary -- inflationary pressures i think that's correct >> we'll see -- that sounds like it's a -- like there's no more business cycles and it's different this time which i get

a little bit nervous. >> i think you're absolutely right. the cycle has been long. it's really been going on since the financial crisis in 2008 and 2009 so i think -- you know, i think you bring up a very important point. and i think the other thing that's happening is with the tapering starting, i think the markets are expecting actual rate increases as early as next summer i know the fed has said they're off quite a while. i think rate rises will probably be coming by the middle of next year and i actually think the markets are right in that respect. there's some positives from that we'll get back to a more normal yield curve. get back to more normalized interest rates and broadly speaking for financial services, i think that will be a positive. i do think -- go ahead >> i was just going to say, what's the best way to raise taxes if this social spending bill goes through? is there a good way to do it

does it concern you? >> i think what concerns me is kind of the emotion and the partisan and, like, every other day somebody is throwing some more spaghetti against the wall in terms of let's do this tax bill or let's do this tax bill i think we need responsible, thoughtful tax policy and that's not what i'm seeing right now, joe. >> okay. all right. bob diamond, thanks. it's good to have you on, as always, and don't be a stranger. we'll see you soon. >> thanks. >> all right let's get down to the new york stock exchange. jim cramer is standing by. jim, i'm a little afraid to ask what you were meaning when you tweeted that you have a lot to talk about kick it off. what do you want to go with? >> this is supposed to be a time when there's not that much cooking. we have ge doing this, roblox, it's accelerating growth that's going to be a gigantic

short squeeze. paypal was such a disappointment don't really get it at all you'll have a ford green bond that is going to be good fedex upgrade. this is one of those periods where -- everything is supposed to happen, and amd gets the facebook business and we're going to have the nvidia keynote. look, i know i saw the future of autonomous driving and maybe it's supposed to be released but this should be a calmer time. >> everybody has been locked up for so long, things are happening, can't take your eyes off things right now we're really looking forward to this larry culp interview coming up >> i question whether if you worked for renewables and power,

maybe there's a better use of your time. we'll get larry. i think larry is very excited about all three groups but he's sticking with aviation. dave has some poignant questions. i feel like this was a great move because the company made no sense. here's three things that don't go together. why don't we add food? they ought to buy, i don't know, surfing equipment. it really was -- it made no sense. >> is that an argument against conglomerates in general, jim? >> yeah, well, i think they have to have something to do with each other i think raytheon technologies -- they do defense and commercial that was very good look, honeywell has a lot of businesses that you could say should be spun off and the shuffle the portfolio. aerospace is strong. if we get boeing back, that business is going to be the one

you want the renewables is going to take some time. health care is a slow grower that can make acquisitions go faster there's a lot there. and the stocks is correctly up but i do think that in the end, what a shame it's kind of destroyed >> right i guess it's been a long time in the making but this is it >> we were a great asset they gave us away. >> that's a question can a conglomerate exist if they buy low and sell high, instead of the opposite. >> exactly honeywell shows you that conglomerates have to make some sense. what was left of ge made no sense. >> right >> who has that kind of expertise in renewables and expertise in health care no, you can't. this is a great move we'll kick it around. >> we're looking forward to it, jim. see you in a few minutes.

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looking positive on two out of three. which ain't bad, right, i guess? you can see, the nasdaq up 46 points s&p, just barely and the dow down about 57 this morning. but we've been hitting a series of new highs and most of the averages the ten-year, interestingly, back below 1.5%. 1. -- below 1.45, even the ten year, we are seeing some yields, though, increase on the short end of the curve, flattening that yield curve. who knows what that means? and crypto has been strong bitcoin back above 68,000 now at this point becky, i think gambling is legal in new york.

have you seen that i may be able to not have to do everything before i go into the lincoln tunnel in the morning. >> yea, 24/7 gambling. >> did you know college hoops was starting today >> i didn't realize that, no >> it's unbelievable i saw it and i go, really? right after the world series it's perfect make sure you join us tomorrow, "squawk on the street" is next ♪ good tuesday morning, welcome to "squawk on the street." we're at the new york stock exchange record s&p closes for the last day sessions futures are taking a pause this morning. tons of news as ge announces it's split with three ppis, but a fresh 2010 high. ten year at 1.4. and larry culp will be on the program later this