>> you don't want to miss a big lineup on the show tomorrow, including an interview with brian carnell and marvin ellison. mario gabelli will join us it's worth showing up tomorrow. >> i have to, but i think it's worth it as well. >> we will see everybody tomorrow right now it's time for "squawk on the street. good tuesday morning, welcome to "squawk on the street." cramer is at one market in san francisco. future is kind of steady here as we get a good start to retail earning season home depot blows it out. >> we're keeping a close eye on those ev shares of rivian and

lucid surging once again ahead of the open. tesla pulling back amid elon musk's continued sell of stock and cryptocurrency is retreating from record levels jim, choose your player. walmart or home depot? >> i have to tell you, home depot has no flies whatsoever. things are good, better than expected there's great demand and you come back and you say, you know what, want people want is to redo their place and it's continuing now that the pandemic is running its course i think there are a lot of people who felt, hold it, now in a the pandemic is over, is there still more to do at their house? the answer is, of course, people want to make their house into an office there's plenty of money around it seems to be going more to h home depot than i expected >> any reason to worry there >> no. look, i think they're going pro.

we have to hear what ellison says tomorrow as lowe's. but you can look at home depot through the ticket eyes or through the fact it was supposed to not have a good quarter people are looking for the idea that the best quarters were behind them. we kept hearing that i don't understand how people can think the best years is behind a company that is involved in the changing workforce. when we look at home depot, we should think, your home is your office, where does the contractor go, let's do it yourself, more contractor. home depot is in a sweet spot. >> yeah, yeah, they seem to be, jim. and the stock already having a very nice move over the last couple of years. walmart equally impressive, even the stock doesn't look to be up right now. in fact, to carl's point, their transactions were up 5.7%, when you look at a two-year stack, meaning how have sales grown over the last two years.

15.6%. and comp sales up 9.2. jim, a theme i've been hearing for a while is the big "r" in a much better position, dealing with their supply chain, given their scale, given their leverage that they have with vendors and everything else to deal with the current morass than some smaller retailers. in fact, this will only exacerbate the division between small and big. we're not even talking online versus instore here i'm just talking the big are benefitting in part because they have more control over the supply chain >> totally this is an issue of scale. when i'm out here every single person talks about scale walmart has its, they have a fly wheel going here with their e cust commerce play. walmart -- as we'll hear from doug, there's some inflationary

pressure they're taking share i like share versus them cutting price and worrying about gross margin obviously the market seems to be possessed by gross margin, as if walmart has to raise price and is not lose any customers. walmart is an inflation fighter first and foremost second, they are a share taker in grocery and the idea that the stock is down is really a problem with wall street, not a problem with the company. the company is doing exactly what we want. >> nothing new classic response on walmart's shares i think in many cases, trade is down on the print. you mentioned grocery. u.s. grocery up ten, jim, and margin is down 40 basis points they are clearly able to make up for it and hence the raised guidance >> when i see that the gross margin was down on a retailer in this environment, i know everybody is going to hate it. the stock was up three initially. and when we speak to doug, we have to talk about the idea of what it's like to decide to

really run the table against every other retailer that's not home depot, lowe's, notwithstanding. and i think doug is competing aggressively against amazon, costco, and i think he's winning his share. i want to hear about the brick and mortar advantage you know walmart is pro consumer do you think it meant that they didn't take the price increases that they could have >> probably. to a certain extent. listen, they're obviously a great merchants as well and they're making decisions in certain areas where to be competitive and others where they think they can take price up that's the mantra of the company, right it's still about living better and saving money and that has been ever since the days of sam walton i appreciate you're saying that.

i haven't focused on walmart quite as closely as i did there when we did two documentaries, jim. but, yes, that has typically been the case. my question to you would be, listen, walmart made 5.8 billion in operating income this quarter. home depot, 4.1 billion. i'm not hearinganything about return of capital at this point. walmart says they repurchased 7.4 billion shares, 35% of their 20 billion >> i thought that was heavyweight, that buyback. you're right, david. are they returning capital at the rate that you want, say, chevron? the answer is they're still growing and they're still taking share. but we got to talk about, my walmart was out of a lot of things, particularly anything sporting goods related and it also was sparsely staffed. i want to know for doug, how are they getting staff carl, in the great resignation, what is the great resignation about? it's people who say you know

what, my job is repetitive, i don't want to do it anymore, i realize how life is short and precious that's kind of what the pandemic did. expect we didn't have to go to war to do it are people wanting to stay and continuing to work at walmart? maybe that has to do with gross margin pressure too when you train people who are new people, training is a loss that's why costco is so good no one ever leaves i want to know about staffing and i want to know about the aisles that i went to, carl, that didn't have any merchandise. >> that's a good point there was a note out yesterday about the great resignation. compensation, the number one reason that employees quit burnout prevalent across industries flexibility, the new normal. 80% surveyed support a four-day workweek i don't know what the other 20% are thinking. >> this four-day workweek. i'm sure it comes up in the conversations you're having.

so much of their workforce is remote when it comes to the tech world and many of them don't have an expectation people are going to come back maybe at all. but certainly not five days a week four days a week now seems to be the norm in terms of at least -- the most you can expect from your people coming to the office to carl's point. what's going to bring people back to the workforce? is it going to be when they run out of money >> yes >> what actually is -- >> that's what bank of america would tell you brian moynihan will tell you, everybody is flush one day they won't be flush. but they're taking advantage of it that's why i like travel here. i think that people are saying, i have not seen the world. the epidemic -- the pandemic ha has opened my eyes i don't think we've adjusted enough to the behavior of a postpandemic world where people are saying, you know what, i do not want to just sit here and do what i've been doing i don't like what i do

i got a little cash. let me go do something, anything other than my job. but, carl, in the end, you got to put food in the table in the end, the savings do work out. can i say for walmart, why are we selling it now when the -- this is going to be their greatest holiday season ever, given where the prices are i don't know, carl, i'm more than most. >> walmart has fallen from open to close on 12 of the last 14. >> what happened walmart is the least promotional of any company i know. when we listen to doug, will he don the hair suit? will he become, once again, a steward of good corporate governance, of trying to make it so the american consumer does better and using the scale i don't know i think walmart goes down

because it's humble. humility is a great think, and i got some do you have any? >> yeah, i think i have some you have humility? >> i don't know. >> when we come back, an exclusive as we've said with walmart ceo doug mcmillen on the consumer, inflation, supply chain and a lot more n'gonyerdot awhe.

so, you want evs, you have come to the right place. is that tom brady? yeah. he comes in to recharge, get software updates. you know. let's go!

walmart, on the top and bottom lines, raising its full-year forecast some people are concerned about gross margins. we're going to have to understand where that is supply chain, is it labor, is it just trying to do good for the consumer joining us now to break down the quarter and figure out what's going on is walmart's president and ceo, doug mcmillon thank you so much for coming on "squawk on the street. good to see you. >> thank you. >> how is shopping going for the christmas holiday and do you think you're going to become a go-to destination given the fact that you're obviously offering the best bargains. >> it's going to be a strong holiday. back to school was strong. halloween was incredibly strong, thanksgiving and christmas will be too

i was in canada last week. same thing is happening there. seasonal business is going to be strong and we have enough inventory to drive sales we don't have everything you want but we're up 11% in inventory. >> let's go over what's going on i have a few of the stock which kind of -- i said transcends the way wall street thinks doug, i think that you're determined to not pass on price increases. i think everybody has. every retailer i go, it's much more expensive than it was a year ago but not your place is there something bigger about walmart and its ethos, you're not going to let the american consumer down because you're an inflation fighter. >> it's a purpose. we save people money those are the words that came out of sam walton's mouth. our cost inflation is higher than our retail inflation and we could decide to pass more of that on. we're passing enough of that onto deliver for shareholders. the eps results speak for

themselves we're proud to hold prices down and our conversations with suppliers today, tomorrow will be, you know, how can you help us roll back prices and swimm upstream and be different than everybody else but we figured out how to help people save money. >> that should be a fly wheel effect people will see that you didn't raise prices that. means for 2022, even more market share take is your playbook, once again, going to play into a long-term positive scenario, or, doug, is next year an investment year, and gross margins could be dinged because of how many money you're going to put into places? >> i think it's important that everybody realizes that our business model is changing we're making money in different ways walmart has become more of a digital company and more of a technology company we're investing as i think you know to transform or technology and to work in different ways. and so we've got some

businesses, like the advertising income business in the u.s., we call it walmart connect, but it's also happening in india, in mexico, it's happening in walmart canada, we're taking these higher margin digital businesses and starting to scale them which will help us with the purpose i described earlier. we'll have money to decide whether or not we invest it or it flows to the bottom line and i think, you know, that business model change is significant development and we'll be saying more about that in the future. it's well under way and we've been talking about it for a while now. >> it's david. if memory serves, you probably are still the single largest private employer in this country. i know amazon has hired an awful lot of people over the last couple of years. what have are you seeing in terms of your ability to attract and retain talent and/or whether you're coming in short in part as so many other businesses seem to struggle to find labor. >> it's much better. here in the u.s., we saw a

pretty significant change as the government stimulus started to go away and we are in full employment at sam's club u.s., walmart u.s. a few weeks ago saw a step change in hiring. we're not as concerned about that as we would have been, say, two months ago we're in good shape for the holiday. we've hired a lot of people to help with e-commerce fulfillment in our supply chain and as well as in our stores. >> the white house had a comment the other day about large retailers and the shelves being stocked. did you give the white house any color? can you share some of that people are calling them practices of securing your own freighter to get containers to the u.s. is that something you're actively involved in >> it is and we're grateful for the help we've been getting our container count coming through the west coast has kicked up significantly. remember, about two-thirds of what we sell in the united

states is made here in the u.s. or grown here in the u.s it's that other third, it comes from china, india, canada, mexico, in particular. canada and mexico, we obviously get some relief. but those containers coming in through the west coast, in particular, hour team has done some creative things, they found some property near one of the ports which enables the drivers that are authorized to pull those containers out of the port, to have a shorter drive so that we can pick it up and take it ourselves for the longer haul, that is one of the things that the team has done to get more throughput. our truck drivers have done a fantastic job. everybody has just worked creatively sometimes you hear us say that our scale helps us navigate these things i think our experience and the creativity of the team is every bit as important as the size of the company. >> doug, this stock is looking down and it's not really performed as well as the others. you have a huge amount of

firepower. isn't this the time to be able to say, you know what, we have the money to grow, the money to make it so the consumer is going to do better, and it's time for the stockholders, because the stockholders deserve it because we've been patient, i'm thinking about my -- i'm now part of this investment club, where i've been saying, look, this is the time for walmart for 2022 isn't this the time to step up to the plate and buy a ton of stock? >> i think there are some people who wish we were flowing through all of the price increases so our gross margin would have been higher, we just disagree with that i think -- as i said on the call a few minutes ago, we're managing the bottom line, but the pieces in between, whether it's gross margin, sg and a and others, we want flexibility to make good decisions for the long-term health we have responsibility to grow earnings, we have a nice

dividend and i frankly -- we've talked about this before. basically everything i have is in walmart stock and i love that fact and i think, you know, our company is worth more than it was and it will be worth more in the future but we do have a long-term bias. investors that are in line with that probably appreciate the investments that we made i got a question about investment cycles and my response was, we'll always be investing. we're going to invest in wages, we're going to invest in automation, at times we're going to invest in price, but we'll manage the bottom line as we do that and becoming more digital is one of the key enablers for us to do both of those things at the same time. the growth numbers that's happened in the three years, we've grown by the size of a top ten u.s. retailer. the absolute numbers in terms of growth and the progress we've made on the bottom line in the last few years, i think kind of speaks for itself.

but the market doesn't always view things the same way that we do and we'll keep communicating what our plan is hopefully attract the right set of investors. >> let's talk about walmart plus how is the growth there? i know some think that you're a little bit stalled and then using it -- leveraging some of your brick and mortar for walmart plus the idea of using the stores to be able to become great -- a bank for people or how about health care. using the stores after what you did with the vaccines, if i go onto walmart plus, maybe i get a discount on my drugs you can leverage this more than anybody. >> the stores are a huge advantage and they're looking better our supercenter remodels look really good. we had a board meeting last week and took our directors to one of our stores and it has a health care clinic in it. and our new signing and some of

the new modulars, new work we're doing in apparel and i'm excited about our supercenters and they can help with delivery, they can be a magnet as it relates to not only grocery and general merchandise burks also health care and other things in the future and they are a foundational corner store. walmart plus is important to us, but we've been careful to not let just one metric define the company. walmart is bigger than that and broader than that. walmart plus was initially launched with three value propositions but the primary one was delivery in the stores. and we launched it during the pandemic we had out of stock challenges, our net promoter scores weren't as high as we wanted them to be. we were focused on the quality of that experience over time, we won a lot of members. when we get a member, they spend more than customers, so that's attractive but we don't want to get ahead of ourselves and i think the offer for wall matter plus can

continue to grow but the execution where we've been building capacity and adding to the marketplace, we added 21 million items to the marketplace just last quarter, all of these things come together to create a different business and walmart plus will be an important part of that, but it's not the only story >> doug, it's david again. you and i met years ago at this point when you were running international. we were in china together which leads me to ask about international. we don't talk about it as often. 23.6 billion in sales for the quarter. obviously there were a lot of divestitures over the last year as well. you called out in the release china in particular, mexico, but e-commerce, what are you seeing that's giving you some confidence. >> we don't talk about international sam's enough sam's club u.s. is a fabulous business up 13.7% in comp international had a great quarter too and it's had a great

couple of years. profit grew faster than sales. one of the interesting things, we're actually ahead in our businesses outside the u.s. in terms of digital percentage of where we are in the u.s. international, we're up to 19% of our total sales being digital. that's an order that comes through an app or a website and we livdeliver it and in some cas really fast. the e-commerce business in mexico has been growing. the acquisition that we made a few years ago of flip card and phone pay in india is going really well. we're learning things from that business that are helping with our digital transformation the international business as part of walmart is underappreciated >> doug, so the one thing i keep hoping to hear from you is that i can get some sort of proposition, bargain if i join walmart plus that is better than amazon prime something that makes it so it's

easier, so you leverage your scale in my favor. can you do that in 2022? >> i think a couple of things come to mind the first is, we have the stores so close to people that we can do fresh and perishable delivery with the rest of the supercenter fast sometimes people get focused on an annual member fee the cost of goods matters too. if you look across a basket of goods, that's differentiated and we are being aggressive in that space. we can do other things too, like what we're doing right now with giving customers early access to special items for the holiday and that's something that's proving to be very popular we'll keep finding more ways to make you want to be a walmart plus member, but right now getting you fresh and perishable food at walmart prices fast is a pretty compelling offer. >> doug, thank you for coming on

squawk in the street it's great to see you. i agree with you, the long term -- if america gets a bargain, walmart stock is going to prove to be a bargain right now. thank you so much for being on the show. >> thank you, all. >> carl? business morning we have news on tesla, uber, peloton and more opening bell a few moments away. i didn't have to shout out for help. because you didn't have another dvt. not today. one blood clot puts you at risk of having another, so we chose xarelto®, to help keep you protected. xarelto® is proven to treat and reduce the risk of dvt or pe blood clots from happening again. almost 98% of people did not have another dvt or pe. don't stop taking xarelto® without talking to your doctor, as this may increase risk of blood clots.

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>> announcer: the opening bell is brought to you by nuveen. welcome back we're going to squeeze in a mad dash and then we'll get to the opening bell it's a week since ge said we're going to become three companies. it's going to take us a little while. >> i love consistency. and the consistency we're getting from j.p. morgan is truly impressive today he goes after the ge renewable business david, tell me if this is suboptimal he says that the company is poorly positioned when it comes to portfolio mix to margins and most importantly level of investments in technology. i think he's saying that this business is not up to snuff. he thinks that the overvaluation

as much as $20 million the thrill of esg more than offset by the agony of fossil. the agony of fossil. >> yeah. he's consistent, jim >> there's the opening bell. it's ratings and analytics firm moody's. jim, we'll keep our eye on the retailers and i guess as my extension, some yields as well 30-year once again above two and you have the ten year, 1634, that's the highest since october. >> it's funny. 200 million people go to walmart

each week and they're an inflation fighter and everyone says, inflation is not transitory, don't believe them the fed is way too liberal, too soft walmart stock is down $2 that's completely reflecting the idea that they refuse to raise prices if they refuse to raise price, it shows you that you can still get a bargain in this country. you know that walmart literally is sacrificing margin in order to be able to make it to take share. but the ultimately impact is that the consumer is not as strapped if they go to walmart >> right that should work that's been the plan as mr. mcmillen said since the days of sam walton and it's worked pretty well. but it hasn't worked for the stock price over the last year, jim. you seem to be in the camp that says it will over time be reflected in the stock price we heard doug mcmillon say the same thing. >> i think that what he's saying is, look, we have to invest, we

have to take share we have flip card. the thing was odd was your question, what was he most excited about? china. and after that, india. you didn't get that level of excitement, did you, david, about america? >> no, the growth -- their growth there was stronger. they seem to be ahead there because a lot of it began that way and with the flip card acquisition -- >> nobody cares. >> well, it's 140 billion or so in sales only 23 billion is international. percentagewise, it's still not that large >> but consider home depot when you started, you said, which is more important? home depot -- this is a $400 billion company it's up 14 why? they're passing on everything. walmart you go to the aisles and it's the same prices it was a year ago home depot, things are more expensive, but they're still

buying black & decker is raising price and they're saying they're going to get that price. paint costs, they're all getting their price. when you say get price, carl, that means that home depot is passing it on, the contractors are paying, and then you're paying, if you're making your house better you're paying. you're not paying if you buy lattice at walmart you are paying if you build a home office. >> it's a great point, using walmart on a check on inflation concerns the last 24 hours, morgan stanley said the auto chip shortage is over it's down 50%. this morning, the iea comes out and said the end of the oil rally is in sight because these inventories are not getting drawn down as we thought maybe it's demand destruction. clearly there are some checks on inflation. >> yeah. all morning, people come on saying, david, it's a structural, it's not coming down forget it.

it's really bad and the consumer is hurt. i don't know you know who is hurt, the walmart shareholder. walmart is giving the bargain to the person who shops there, not to the person who owns the stock. home depot, the prices are up. you have no choice steel is more expensive, so, david, some people are passing it on, but the vast majority, david, the margins aren't going up that much and i think that people are overstating inflation and making it sound like it's forever. david, those people -- those people are negatives >> you've been in that camp for a while. we were having this conversation at least a year ago, remember, when we were sitting 30 feet apart in our new jersey headquarters after a while transitory -- >> miles apart it's even safer. >> it's true it is even safer although we're very safe guys, i have to talk about peloton. it's fascinating me this morning. their decision to sell a billion

dollars -- or perhaps, if they exercise the green shoe, what may be as much as a billion 150 million in stock stock is up, interestingly even though after talking to a number of people this morning, many see it as a clear indication this is a company that simply has no visibility whatsoever, whether it's into its supply chain or ultimately demand, what christmas is going to look like and i mentioned that because, i mean, they're selling stock at the lows and yet it does appear, jim, that they're getting investors in there, perhaps, who are willing to take a long-term view yes, jim. >> go over that conference call where the ceo said, we don't need money no, no, we don't need money. >> november 4th. >> we're fine. unbelievable unbelievable >> we don't see the need for any additional capital raised based on our outlook we're adjusting our expenses

across cost of goods sold with revised revenue guidance we have a lot of leverage to pull that was the 4th of november what is it the 16th we're selling 1.15 billion in stock. thank you very much. i'm surprised to see the up. it was down sharply yesterday. the underwriters started to see what the appetite would be for this sale of stock you did have some sales yesterday. clearly, maybe people knew about it i don't know but, carl, fascinating from a corporate finance standpoint they chose to do this now. i don't know what it says about their visibility expect they simply have none but they're getting the cushion that perhaps they need to see them through what clearly is a period of some difficulty in terms of assessing demand and/or actually they can get. >> when i saw john foley recently, he told me i was

picking on his company carl, you know what, the prosecution rests. >> guys, a lot of news in evs, lucid. rivian had a bigger market cap than volkswagen. >> ford gets 15 billion from rivian they're not friends, by the way, let's make it very clear they're not friends, buddies, pals, they're competitors. ford may be the winner of this, but they got to sell and build battery plants if you don't electrify, you are ice. >> understood. let's not forget the infrastructure bill got signed that's 7 1/2 billion for ev charging which is going to be very important to the ability to roll out in a much broader way electric vehicles. you got to have places to charge

them if you're going to have a lot of people driving them all over the place we'll see how quickly that money actually is translated into starting to have a nationwide network in a real way that is more robust than currently rivian, $140 billion market value -- >> enough already. >> what do you mean enough already? >> who do place it with? >> i told you that day one, you were sitting here -- i did, i told you. >> it was a great scoop. you had a great scoop, okay. >> i don't know if it was a scoop. but i did tell you it was not going anywhere it's sovereign funds and they were not going to be sellers maybe they are now how can you not sell at 140 billion. >> do you think the stock will go up or down after peloton? >> they own 12% of the company, i think. >> they should blow it out they should blow -- jim farley, if you're listening, blow out your rivian!

>> meanwhile, tesla, musk sells another 900 million or so, exercising options we'll watch that because 994 on tesla is a bear market from the all-time intraday high. >> yeah. look, there seems to be an endless amount of money for anything that's ev and no money for anything that is earnings right now. it's incredible when you look at it home depot but what people are excited about are pie in the sky it's why i'm going to lucid today. lucid yesterday, they're making 17,000 cars, they're going to raise that number. 17,000 that's all they're making. rivian, amazon will buy every single structruck they have. but i'm astonished by how much people want these stocks it's astonishing >> lucid's market value is the

same as ford's it's the same as ford's. >> we have to stop comparing everything to ford. >> you know i like my market cap comparisons. back to retail, home depot is bigger than walmart. i don't know if that's happened -- >> china is bigger that be the united states. >> walmart hasn't gone up. home depot has a larger market value than walmart >> i don't know what to say. what do you want me to say >> nothing netflix has a bigger market cap than disney. it's interesting to keep track of these things. >> you didn't mention nvidia which is larger than every semiconductor in the company these are delivery mechanisms for technology and we got to stop it! >> if they're delivery mechanisms for technology, that's why apple should get involved in that business. >> ford stole apple's car guy.

farley is aggressive farley told me yesterday he wants to take no prisoners take no prisoners against musk tnp. >> i don't know what the number would be after taxes for them, but it probably would help, wouldn't it -- >> if ford motor closed down all of its internal combustion engines and just did the f-150, would ford, therefore, be bigger than ford? [ laughter ] >> that's pretty meta, so to speak, jim we mentioned elon musk and some selling of stock uber, dara is going to buy some >> look at uber. going back to something david said when uber first started they have to be self-driving they can't be in a situation

where they have to pay more for drivers. david, where is the self-driving uber >> it's not here yet it's not here yet. >> well, is dara buying stock because he think it's not going to happen? >> i remember meeting with travis kalanick the founder, this is years ago, and he was -- we were in new york and he was pointing out, soon, we're going to have -- it's going to be all autonomous you're never going to need a garage it's going to change everything. went on and on what are we going to do with all the garbaages that need to be repurposed >> that's what he said c can we do a show with them >> i don't know if either one of them are going to be happy that you put the two of them together like that. >> carl, i'm just -- i'm thinking outside the box newman was a great visionary with wework and kalanick was a

great visionary with uber. >> he was with uber. it is going to make a significant change in that model if and when it gets there and what they'll be able to do, jim. there's no doubt just a question of when. >> i'm going to talk to intel today. he's gotten mobile maybe he has solutions i come in peace when it comes to intel. >> we're all looking forward to that interview are you going to bring the heat or just sort of be really nice >> i'm trying to figure it out right now. what do you think, carl? softball, hardball, fast ball? >> keep them guessing, jim. >> i'm not the rams. i'm the 49ers. >> who would have thought? >> they looked good. they looked really good. >> didn't they holy cow

>> hd is adding 100 of those points >> it's all about consumer discretionary today, carl. the important thing is, look at the retail sales numbers it was just terrific home depot is great on the comps. walmart great on the comps it's a day for the retailers bodes very well for the retail reports. there's consumer discretionary that's a new high for that sector health care up, it's been basically lagging this month that's nice to see tech stronger, even though some of the semis are down. banks are taking a little bit of a breather they were strong yesterday i hope you saw that terrific interview with the walmart ceo, really laid out why they were doing so well. it's important to point out, these are great comp store sales. domestic up 9.2% that was way above expectations. the traffic was strong, up 5.7%. the ticket was up nicely, 3.3% here's what's interesting, e-commerce was only up 8%. that means that most of these

gains on the revenue side was in stores, people were going back to stores. e-commerce is still a small part of the overall business. so i thought that wasa very good sign for people going back in here. the gross margins, they were just a little bit down not dramatically so i think another good sign home depot was kind of curious did you see these numbers here the traffic was actually down 5.5% but the ticket was up 13% what does that mean? it indicates maybe some fewer people in the stores but the -- what they were spending on, the big ticket items,kitchen upgrades, was very high. 12.9% for the ticket, that's an impressive number. and gross margins here only down four basis points. very, very small decline gross margins. sales are great, comp store sales are great and gross margins only very, very small deterioration. that's a very good sign. this is the story all year walmart is flat on the year.

home depot they're killing it this year these reports, very good news for earning season we're going to get target, tjx, macy's all in the next few days. we'll keep an eye on all of those. generally, these reports, very good sign. meantime, fund managers, bank of america, merrill lynch, global fund managers, my heavens, they were bullish only 61% think inflation is transitory how many rate hikes are they expecting? they're expecting just two rate hikes next year and a good percentage are only expecting one rate hike. powell will be happy to see that none, 13%. a small minority expecting more than two rate hikes. they're longing tech stocks, some of them are long bitcoin.

and long esg generally crowded trades indicate a little bit of you're sticking your neck out pretty far there, carl, for some of these fund managers. esg may or may not have peaked in 2021, but still getting a lot of assets under management back to you. >> talk to you in a bit. let's take a look at bonds today. retail sales up three straight months industrial production, cap utilization post-covid high. we're ten minutes out from business inventories and the 30-year back below 2 we're back in a moment i think you're going to like it here. umm, why is everyone...

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we save people money and help them live a better life those are the words that came out of sam walton's mouth. he loved to fight inflation.

and we could decide to pass more of that on we're passing enough of that on to deliver for shareholders. we're proud to try and hold prices down. our conversations with suppliers today, tomorrow will be how can you help us roll back prices and swim upstream and bedifferent than anybody else. we'll balance things you can see that's what we did but we start out trying to figure out how to help people save money >> that's ceo of walmart, talking about the balance between protecting margins and taking some share. >> i wonder if they're going to have a changing shareholder base a great growth company they're not being at all rewadded by this current shareholder base i know people don't seem to care about what will happen in 2022 because they bought loyalty.

this is conjecture is it possible to be rewarded on wall street for what you're doing in main street >> yeah. it is. but your point's an interesting one. and with walmart in particular, it goes through periods when it's rewarded after not being. i would point out that the walmart heirs are enormous owners of the stock. it allows mcmillen a lot of freedom without concern, really, from the broader shareholder base, so to speak. they still own almost 50% of the stock. aren't they right around there >> yes look, i'm not one of these

people that mess with inflatio i want a big buyback i want them to take advantage of how much the stock is down i did not hear that. >> i got to remind our rue viewers to get on the investing club use the qr code on the screen. got the dow almost 200 as the 10-year yield is backed off the touch. tv: mount everest, the tallest mountain on the face of the earth. keep dreaming. [coins clinking in jar] ♪ you can get it if you really want it, by jimmy cliff ♪ ♪ [suitcase closing] [gusts of wind]

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with cameras to home security monitored by the pros. *laughs* learn more about home security or get our self-monitored solution starting at just $10 per month. jim, what's on "mad" tonight? >> why not go for elugsive air they go zero to 80 in ten seconds. and square, speaks for the company and pat gelsinger is going to explain why intel is going to regain its leadership >> this is any indication what the rest of the week's like, jim. we're in for a treat all week long >> it's go stoog get better and better because i like to destroy the competition. i mean, like, hey. i love you guys. thank you for not giving me

covid from 3,000 miles >> i don't have it to begin with but you're welcome >> i buy now >> we never even mentioned pfizer licensing the antiviral but next time. we'll see you tonight, if not tomorrow, "mad money." 6:00 p.m ll (swords clashing) -had enough? -no... arthritis. here. new aspercreme arthritis. full prescription-strength? reduces inflammation?

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♪ good tuesday morning welcome to another hour of "squawk on the street. live at post nine of the new york stock exchange. trying to reclaim s&p 4700 here on a pretty good day for retail. micro and macro with home depot and walmart. let's get to rick san telly. >> yes, this is up six-tenths of wunl%. and this is the best level going back to june, when it was up 9-10ths. and another number coming out our november read on a the national association of home builders, which happens to be up three months in a row.

let's go to dianna and find out. dianna >> well, rick a strong beat on builder sentiment in november. it rose three points to 83 anything above 50 considered positive still lower than last november, which hit a high of 90 they say a lack of existing homes for sale and strong consumer demand are behind optimism fire traffic also up three points to 68 sales expectations unchanged to 34 sentiments both midwest and south rose four points to 72 and 84 respectively. in the west, one point and the east fell two points to 70 builders still highlight supply chain issues and severe shortage also a shortage of buildable lots people like horton are slowing sales to deliver on time >> thank you

we are 30 minutes into the trading session. we're going to start with drug royalty purchaser after a filing that berkshire hathaway has taken. you can see the shares are up almost 4% right now. check out ax on enterprises. the makers of tasers and other equipment. that's surging after reporting big revenue growth domestically and abroad you can see shares are up 7% right now. and home depot beating on the top and bottom line. driven by demand for household tools and building materials those shares are at a fresh high, up 4%. and one of two big retailers we're looking at today >> meantime, retailers are the story. thanks to strong sales in grocery and ecommerce.

we talked about the impact of the supply chain challenges. obviously inflation and the impact on the consumer >> our cost inflation is higher than the retail inflation and we could decide to pass more of that on. we're passing enough of that on to deliver for shareholders. we're proud to try and hold prices down. and our conversations with suppliers today, tomorrow will be how can you help us roll back prices and swim up stream and be different than everybody else? we'll balance things you can see in the quarter results, that's what we did. but we start out trying to help people save money. >> if memory serves, you probably are the single highest employer in the country. you know, what are you seeing right now in the labor front, in terms of the ability to attract and retain talent and/or whether you're coming up short, as so

many other businesses seem to struggle to find labor >> it's much better. here in the u.s. we saw a pretty significant change as the government stimulus started it geaway we're at full employment at sam's club u.s we're not as concerned as say two months age we're in good shape for the holiday. we've hired a lot of people to help at the supply chain as well as the stores. >> the white house had comments about large retailers and the shelves being adequately stocked for the holiday. can you share some of that and some of the, i guess, people are calling them novel practices of securing your own freighter to get containers to the u.s is that something you're actively involved in >> it is and we're grateful for the help we're getting from the administration and others for solving the problems our container count, coming

through the west coast, has kicked up significantly. remember, about two-thirds of what we sell in the united states is made in the u.s. or grown here in the u.s. it's the other 3rd that comes from china, india, mexico in particular so, canada and mexico, we obviously get some relief. but those containers coming in through the west coast, in particular the team has done really creative things. they found property near one of the ports, that enables ones authorized to have a shorter drive so we can pick it up and take it our selves for the longer hall. that is one of the things the team has done createivally they get more through put. >> we're following two stories one is the degree to which they raise prices and try to satisfy investor and consumer. but inventory up 11 is going to mask people notice >> it sure is. especially as you can get those

goods and at prices relatively stable at a walmart, i imagine that's going to set up the company strong for the quarter and does speak to the fact that walmart w the every day low prices, quote/unquote, is an inflation hedge where the consumer is concerned. and i realize walmart has said today that they haven't necessarily seen people trading down, maybe smaller packages or less expensive goods but perhaps more people in general coming into the store because of their prices >> they seem to be playing the long game when it comes to that. continue to take market share. at the are, along with other retailers, beneficiaries of the ability to control the supply chain or have some more control than smaller retailers and bigger than home depot because margins are strong you heard mcmillen talking about it

but home depot responding positively that stock up 45 or so per sent for the year and the mark cap does eclipse that of walmart other than amazon, it's the largest market cap for a retailer >> it's pretty incredible, actually because we've seen the shift away from do it yourself at home improvement projects, which was so big during covid and the pandemic and during this quarter, more professionals coming out and purchasing too. we're going to stay with retail. let's bring in ubs broadline analyst. want to get your thoughts on both of those companies, which i know you cover and perhaps we can start with walmart. the talking points, both on inflation and pricing and navigation of the supply chain and what it means for this quarter, the key holiday quarter underway

>> walmart's doing a good yaub no doubt led by doug mcmillen, stud and the rest of his management team. this is as unique an environment as there's been for a generation of retailers and the big retailers are doing a better job showing results we expect that, coming out of the pandemic, the big are going to get bigger and that means their stocks look more apractive, eve -- attractival, even among all the uncertainty the relative appeal of low prices in an inflationary environment look gz. it's gaining shares. and it's just starting to realize the benefit of the alternative profits like advertising, third-party ma marketplace. essentially any leading key attribute is doing it well,

believing the market will pay a premium for that and we like the stock. >> okay. so, we're showing a chart of the stock that looks like a roller coaster for walmart and even though we had strong numbers and comments, it's trading down 2% why? >> it's a game of expectations belief was sales were good, which they were. and it flowed through based on whether wr it's been the last couple of quarters is good the difference is they didn't see as much of a difference in covid-related expenses this year last quarter the covid costs were down a billion. this year they're only down 100 million. gross margin was down but down less than 20 basis points. they're managing through the inflationary environment by balancing the gains they're trying to give to the consumer with shareholders. that's if wing to continue to next year and make the stock set up really well especially as you mentioned, it has underperformed

it's made the relative valuation look really appealing here we like walmart a lot. >> how about home depot? stock trading at a new high? we keep talking about the shift from services to goods and people emerging from their homes after working on their homes and buying furniture in the middle of the pandemic. is this name still going to b benefit as we shift to a more normalized setting in 2022 >> we will but structurally the demand for home improvement and related product is higher. the instances of working from home will be greater than previously there's essentially been a value shift from the commercial real estate mark that to residential real estate market it's coupled with an exceptionally well-run retailer.

the stock has done well year to daelt. but it can grind higher as it generates earnings growth into 2022 and beyond. and it's gone through a really remarkable period of investing we expect that to moderate and allow the company to manage its earnings growth amongst a very unsurtden back drop as consumers do shift, do other activities away from the home improvement projects they've done over the last couple of years >> more macro, more aggregate. this continued trend above trend for retail sales when does the consumer really materially shift their wallets to services? and the longer we stay over spending on goods, does that extend the window for which you would expect supply chain normalization? >> i think it's a fantastic question, carl we're going to shift starting next year. that's when the office worker

goes back more in mass than they have this year even if that's wrong and the delays back to office is slower than anticipated we're going to have to anniversary a trillion dollars of stimulus from this year think of the $1400 checks that were distributed in march and april of this year and how that's going to impact retail next year. the benefit will be slow down in the flow of goods to the u.s. from these bottle necks across the supply chain that will moderate the inflationary pressure that existed across the economy and it will be a benefit to at least the cost side for a lot of the retailers still not going to get any easier because wage inflation is going to be an issue and a more sluggish spending back drop as some of the stimulus starts to fade that's why we want to stick with these well-positioned large

retailers like home depot and walmart. >> appreciate it more reports as the week goes on president biden and chinese president xi jinping in a conversation that did last three hours. we have the highlights and more for us >> reporter: a senior administration official says the white house was not expecting a breakthrough and there are none to report after the virtual summit over the course of 3.5 hours. they discussed a range of geopolitical and economic issues through their interpreters and flanked by top officials with a priority expressed by both for candor >> it's important we communicate honestly and directly to one another about our priorities and our intentions taiwan, and white house messaging it would defend taiwan

last night, the u.s. acknowledging taiwan is part of china and wants to maintain the status quo in the taiwan state president xi promised drastic measures if supporters crossed what he called a red line. president biden also raised concerned about china's human rights practices in tibet and hong kong. beijing, quote, has a different view on many of these issues chinese news agency says he requested president biden remove tariffs on chinese exporlts. with biden acknowledging the prior and formal engagements and xi suggesting the two leaders seek a face-to-face meeting in the future ass to whether that would happen at the olympics, president xi declined to raise the issue. after in recent days, suggested president biden might decline.

after a very long day with a lot of news out of d.c. yesterday, we appreciate you giving us those key lie lites. strategic ambiguity, that is the strategy towards taiwan. retail sales data, quarterly results and more we have the latest muvrls and themes as inflation hits all corners of the market. >> bitcoin loses all of its gains for november >> and finally, endeavor ceo, ari emmanuel so, you want evs, you have come to the right place. is that tom brady? yeah. he comes in to recharge, get software updates. you know. let's go!

endeavor out with what was an earnings speech and doubling down on the sports betting business saying it will operate under a new reporting segment when the deal closes early next year. shares up very nicely. ari, good to have you. let's start with sports betting. we haven't had you on since september when you announced the acquisition of open bet. where does it fit here and why is it an important component of your overall strategy at the company? >> first of all, thanks for having me. we already were in the sports betting business this will give us more clarity in our sports practice because we're going to start a fourth segment.

we had img irenau, which had the business and data feed and then closed in the first or second period of next year we're a fully integrated one-stop shop for all the book holders. and there's such an upside with all the states now legalizing sports and international also. with where we sit with sports plus the production of sports and sports betting, we think we're the optimal player in sports and sports betting globally and we think the mark probably is 2024, a 77, $78 billion business in sports betting alone. >> i mean, there's no shortage of competition, to a certain extenlt. i know you think profits are going to be big.

in-game betting and you're also going to have the data, i guess, as well. so, you can make money on all sides of this thing? >> the data goes to the book makers and sports books. however, internationally, there may be a play for the ability to get to the data. at the end of the day, we supply a full compliment now and there's no other competition that does that whether sports radar or any of the other ones in addition to representing sports internationally we're very unique in our offering and unlike other people, we've been very diligent on how we price those rights and we're profitable >> well, sticking with sports, let's move to the ufc, an important component of the overall revenues

third highest revenue in during that quarter obviously people are back in arenas continued growth or are you hitting a limit there in terms of what ufc can do and put on >> here's what i would say we posted the best nine-month year to date in the 28-year history of events with fewer events in this quarter than our last quarter i think ufc is a mainstream sport now. across all major categories. whether media, commercial or pay-per-views. sponsorship is up 59% year to date and licensing, which goes to our etf. everybody is familiar with the espn deal. as i talked about the last time in the last quarter, we closed

five deals, which were over 100% increases. we just closed another nine deals. the average is 80% with our gaming business and everything, i imagine video games, international license i think there's a lot of room to grow here. our sponsorship went from an eight-figure business to over nine-figure business now so, across every category, we're growing. >> yeah. there's still push back on fighter pay. i asked a while. i think he walked off afterwards >> you were talking about pockic at the time. >> i screwed up. that's true. tell me why you're not paying the fighters more. i know you say hey, it's up a lot and you're doing things for them but it's still an issue >> here's what i would say to you. since 2005, fighter pay is up

over 600%. we've invested in the sport. built performances across the globe. we're expanding that so, we're investing the sport and building the sport and the margins will increase and therefore, they will make more margins. we think we've done a very good job regards to fighter pay >> all right okay speaking of pay, this is something else you and i talked about and it seemed to be influx, which is how you pay your superstar actors. >> well, i don't pay them. >> you don't pay them but how they get paid in terms of the changing dynamic with the distribution of films. this came to the for with disney and scarlet johannson. is that still influx >> i think all the studios and all the streamers have figured it out

there's probably one more turn as relates to the lifetime value of a sub that gets more complicated i think we talked about this last time because of the embedded cost of each different streamer is different. but we're paying very good prices they'll continue to pay good prices because they're six bidders in the marketplace red note was dropped by a studio because of covid and they didn't want to release it the atericaly and. netflix paid to keep away from other streamers. they're going to have to make a couple more of these things and we actually represent the principals and the stars and the director in all that they're going to make a lot of money doing that >> even though it didn't go to theatrical

>> actually more actually, it did go to theatrical for two weeks actually, theatrical was only down once it posted on netflix so, there wasn't [ inaudible ] >> couple quick other things content sale people thought maybe you'd announce a deal for it you haven't yet. are you getting close. >> here's what i say we're feeling very positive of the conversations that weirverring i don't talk about whether it's going to happen. we're down to a very short list. and we're very bullish with regard to how is it going to end up >> and finally the stock price i mean, doing really well today. you should be happy. you're a relentless guy a great salesman but the stock hasn't really moved since the ipo. been up and down a lot

are you frust rrated at all do you feel people understand what it is this company represents >> let me frame it for you and going back to i think the second quarter. third quarter revenues grew over 60% compared to the same period in 2020. and grew nearly 60%. we raised our annual guidance in terms of revenue and adjusted. all in all, as we talked the lasts time, whether it's sports we own, sports we represent, content, sports betting and we're the premium players in all those things we think there's a lot of room to grow. people are getting to understand the story and we're raising and beating, raising and beating thalts prr what we're going to do we're in the best position as relates to the media business across all the categories. we're feeling pretty positive. don't make me feel bad today don't make me feel bad today

>> look, the stock's up. it'sger. good you don't have to bug me or anybody else just sit back and enjoy. ari, thank you >> take it easy. >> meantime, rackspace in the green after strong results eighth consecutive quarter of results. and we'll talk more about that in a moment. i'll shoot you an estimate as soon as i get back to the office. hey, i can help you do that right now. high thryv! thryv? yep. i'm the all-in-one management software built for small business. high thryv! help me with scheduling? sure thing. up top. high thryv! payments? high thryv!

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welcome back to "squawk on the street." we're taking a look at the ark innovation ticker. break free in the last few months along side core holding, tesla down since the start of the month. since elon musk continues to sell hundreds of dollars wurgt of shares. tesla is up about 3.5% another easy name in the green,

lucid. and reconfirming its production target for next year you can see those shares are up 6.5% as well as the ev space in general continues to rev higher. >> meanwhile, let's get a news update >> hi, carl, good morning. here's what's happening at this hour flooding is getting worse in the pacific northwest. parts of washington have gotten six inches of rain since saturday with some areas under five feet of water it's inundating homes and businesses and submerging cars russia says the weapons test has not effected the international space station. they were accused of creating a dangerous debris field russia denied this strike, despite having to stay in their capsule after it was conducted

and pfizer allows generic versions of covid pill to be made and they'll work to drive down prices and increase supplies and the american journalist jailed in myanmar for six months is finally back home getsing big hugs from his parents at new york's jfk airport. the first thing he'll do is get a shave and a haircut. back to you. >> a shave and a haircut i like it. shares of virgin galactic slumping after richard branson sold another 300 million in stocks and this in addition to selling 300 million in stock in august and 150 million earlier this year. bransson does have an 11.9% stake. plus bitcoin is losing all of its november games

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crypto currency selling off as the dollar rises to a 16-month high. bitcoin, ether and xrp dipping to the lowest levels since late last month at least on the currencies themselves, i'm seeing technical research that shows the trend line is so strong, you'd literally have to fall back to 50 k to do technical damage. >> i think the sell off is -- we're taking a bit of a brief here we saw a lot of retail excitement in the last couple of months or so the mean token, the really not much fundamental aspects you saw a lot of retail excitement in the space.

if you look at app downloads for crypto exchanges, such as coin base, i think it hit number one in app store you saw a lot of excitement enter the crypto markets in the last couple of months or so. i think we're starting to take a bit of a breather here >> they had a note out asking why is bitcoin so weak they did suggest maybe the sign of the infrastructure bill was an over hang about those concerned about further taxation and sort of a classic sell on that news. does that make sense to you? >> i think the infrastructure news was probably a little bit of a bigger deal i don't think that was a by the rumors type of event that was something folks were expecting to come for a little bit of time. in general, you should still be positive for the overall space

i do think the infrastructure bill is a concern. definitely questions we've got in the past and have heard more over the last week or so that sounds like a bigger deal now, a lot of those, if they are to come, i believe won't until 2024 there's still time for crypto lobbying efforts to potentially make changes so, from the looks of it, i don't anything is set in stone either on that front i do think investors are cautious there are concerns for crypto companies, as well as additional guidelines weighing on the space. >> so, maybe not a trading event for bitcoin, certainly given the pressure we're seeing across the asset space in general, selling in general but i am curious what tap root is going to mean to bitcoin as an actual payment option we have so many kaconversationsn

the show about the fact that ether and stable coins make more sense. they tend to be seen as more of a store value. does this change the narrative at all >> bitcoin had been viewed as the gold-like ast where there's not a lot of technical developments associated with it and you think of a smart contract platform, etherium. and so, this tarts to change the narrative. can bitcoin w the recent implementations start to compete at a protocol level with different defy applications, where most are still built on etherium and other bit level ones can it be that protocol layer for defy applications for stable coins, for some other areas? i think it's in a wait and see mode

we still need other projects to start to be built on the bitcoin block chain and interact with the new implementations. it's still in the early days but it is starting to shape the narrative where it's looking different. >> and finally, john, i wonder if you have thoughts on the platforms themselves robinhood, awfully close to a new record low and coinbase has been on this tear. why the difference >> i think there's a difference between coinbase's listing policy and robinhood part of that is because they've made it to the crypto space. robinhood have fewer crypto assets coinbase, i thought did a pretty good job of quick to list sheva eno. and they capitalized on that down more than the street was expecting with the last quarter but not as bad as some of the more traditional players, like

robinhood. i think coinbase has done a good job of listing a variety of as and positioning themselves where if there's a weakness, in terms of trading volume, there's another sectser they can taked a vantsage of. you're not so reliant on a few crypto currencies or a few products >> fascinating good stuff appreciate it very much. >> later this hour, "squawk on the street" heads to space quarterly results, satellite launches and ever increasing levels of space junk on the heels of the russian missile detonation yesterday that's coming up with the ceo of rocket labs. plus, walmart is on the move after results. and ceo doug mcmillen sat down with us last hour to talk supply chain bottle necks and walmart's response >> we're helpful for the help

we're getting from the administration and others to solve the problems our container count, coming to the west coast, has ticked up significantly. remember, about two-thirds of what we sell is made or gren in the u.s. so, it's the other third that comes from china, india, canada and mexico in particular canada and mexico, we obviously get some relief. but the containers coming to the west coast, in particular, our team has done creative things.

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than expected, despite inflation and prices rising at the fastest pace in 30 years steve liesman has key themes for us this morning. steve. >> good morning. many of the nation's major economic themes showing up in the october sales report the 1.7% monthly gain definitely flattered by inflation, pushing up prices and likely early christmas shopping, repelled by supply and inflation concern by consumers. and "at least some shoppers are getting an early start, pulling purchasers that otherwise would have contributed to the post thanksgiving surge in consumer spending." non-store retailers is the internet particulate of the report, up 4%. as the inflation, 3.9. department stores and sporting goods is discretionary that could be some of the holiday shopping

restaurants, after several monthly strong gains unchanged while prices are higher, americans, if you're able to afford them, they could draw down their savings rate. we see spending and that surge ests cutbacks are limited on average. some families are going to be more hurt than others. and writes "households are still willing to open their wallets in the face of higher prices. today's report opened that healthy consumers are back in the driver's seat" and the retail control group was also strong so was industry production we saw turn around in the car parts production it's still appears that u.s. economic growth is headed to accelerating now in the fourth quarter. david. >> steve, i'll actually pick it up we're having this conversation and have been for a while now about the shift from goods to services can we say that rfrts

meaningfully taking root when you break down some of the key components of the report >> we can't. as you note, because here's the thing. this is a goods report, esepgsally the only really serviced component of the report is the restaurant and bar component and that was a goose egg we have, as i've said 100 times, very lousy service statistics in this country, despite services being 70% of consumer spending you're actually right, however economists do expect the shift that should depress or ease the growth of goods purchases and services should be on the rise as people get more comfortable and venture out. but they've been calling for that for a while i'm still not tired of the call. but we can't see it and it doesn't show up in this report >> good stuff. appreciate it. coming up in the next hour,

"tech check. do not miss a first on cnbc interview as shares continue to hit all-time high after all-time high speaking of the opposite though, dow is well off the interday high

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the street." stocks are mostly higher today with the consumer discretionary sector leading the way the best performing sector in the s&p. we have mentioned many of the names pushing that group higher today, including the likes of home depot and tesla as well but we want to bring your attention to some of the underperformance and travel and leisure names, like cruise lines, norweigian, carnival, cathie operators like caesars and rising sands rising prices could be pressuring some of these travel names even as the u.s. continues to open for more foreign travelers. keep an eye on the consumer discretionary stocks, especially travel and leisure rehe o"sawonhemo aadn quk t street."

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[suitcase closing] [gusts of wind] [gusts of wind] [ding] welcome back check out shares of rocket lab popping this morning as satellites and their operators gain increasing focus. you can see the shares are up 8% now. russia received criticism for anti-satellite missile tests they conducted one yesterday it sent thousands of debris in

space and threatened the safety of the international space station and the astronauts onboard. here to discuss the space economy and more, rocket lab's ceo, peter beck. thanks for being here. >> always a pleasure. >> i do actually want to start with that anti-satellite missile that was detonated by russia yesterday. obviously, a major geopolitical event that has taken place and certainly speaks to the increasing applications of space as a war-fighting domain as we continue to see increasing levels of space junk and space debris in orbit as well, it also has ramifications and increases risks for commercial companies such as yourself i realize rocket lab is getting ready to conduct a launch as soon as tomorrow how are you navigating the space debris situation and how does this speak to, i guess, broader industry dynamics? >> isn't this disappointing? i mean, as a launch provider, we do absolutely everything to

minimize our impact on any, you know, potential debris that we may leave behind as a result of our missions i know our customers focus on that as well and all of a sudden there is thousands of pieces of orbital debris, it's just like, come on, humans we can do better than this for sure >> yeah. so as i mentioned, you have a launch two blacksky satellites you are looking to send to orbit tomorrow this is the first launch since july do you these launches from new zealand, which has been impacted by covid-19 restrictions as we continue to see those ease, what does that mean for the launch cadence in this quarter and your outlook, your forecast for the company, which saw most of its revenue this last quarter from the other part of your business which is not launch >> yeah. so, i mean look, we have been stuck at home in new zealand dealing with some pretty severe

covid lockdowns. it's really impacted our ability to be launched as you mentioned, those are easing pretty rapidly now and we are prepared and we have two missions to get off. 2022 is going to be a very busy year for us with a lot of vehicles sitting on the floor. we continue to have more and more customers this quarter alone we added over a dozen customers to the books but i think the important thing is a lot of people recognize rocket lab as the launch company, but you have seen our systems division has been very busy that's really important. launch has always been a lumpy business as you rely on various elements like weather and customer readiness, the space systems division has been doing extraordinarily well. >> you also announced another acquisition, planetary system, a manufacturer satellite separation system. it's the second acquisition you have announced in as many months the third in 18 months

how does this speak to your goal of not simply being a launch provider, but a fully integrated vertically integrated space services company and your vision for the future >> i think it's a great demonstration. if you look at a customer recently, rocket lab provided the launch for that customer it provided the satellite that we -- for that customer. it provided the reaction wheels for the satellite of the customer it used software which is now owned by rocket lab and it was separated using a separation system that's now owned by rocket lab so, as you can see, we are able to take more and more value from what would have normally just been a launch company. >> yeah. and i know you are going to be -- tomorrow's launch to bring it back full circle here, you will have a helicopter on site as well as you continue to work towards reusability of your first-stage booster, your small electron rocket being able to pluck that out of the air as it

returns from space with helicopters. how does that reusability part of the puzzle move you towards profitability as a company >> look, the vast majority of the cost of the launch vehicle is actually in the first stage if we can recover that first stage and bring it bangedck and reuse it, that is huge for us, not just from a cost perspective but also the ability to be able to manufacture more rockets. and we have now successfully a number of times stages through the atmosphere and splashed down in the ocean a lot of people think fluccing a stage out of the stay sky with a helicopter a super hard part and all the rest actually, you know, we have done it consistently during trials. the hard part is getting the rocket through the air so this mission is really the last part of this program. we raendezvous with a parachute once we do that, the next

mission we are going to catch it and bring it home. >> all right looking forward to that process. peter beck, thanks for joining us rocket labs shares up more than 50% the last three months. well, when it comes to this morning's action, the enthusiasm for evs, up 7.3%. lucid up 10.5% that will do it for us on "squawk on the street. "tech check" starts now. ♪ ♪ good tuesday morning i'm carl quintanilla big show of qs today a quandary in crypto as the major currencies sell off. a flock of seagulls. and then forget the metaverse. this might b