now. good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. and check things out this morning. u.s. equity futures are looking up after a down day yesterday for the markets dow down by 200 points, the biggest decliner was goldman sachs. it has the dow on track for a down week for the second week in a row after five weeks in a row of being up. but this morning the dow is indicated up by about 75 points. the nasdaq and s&p were also down yesterday the nasdaq is indicated up this morning by 93 points and s&p 15 points the ten year note is

yielding 1.599%, so just below the 1.6 range we cracked yesterday. the big story probably crude this morning, people watching closely as it looks like china is preparing for a release of state petroleum reserves you can see wti down by about .5%, back below $78 a barrel after a 3% decline yesterday still looking year-to-date, oil up by about 60% but the biden administration has been pressuring some other asian nations, including china, japan and india, to release reserves in a coordinated way to bring oil prices down because this is a big part of the inflation picture impacting companies around the world let's talk about labor and how that's going to impact things after more than a month the strike at deere is over. workers ratifying a new contract the accepted offer includes the raises, bonuses and pension

funding improvements from an earlier offer plus an increase in base production pay returning plant and warehouse workers will get an immediate 10% raise and an $8,500 bonus, additional 5% pay raises will be provided in 2023 and 2025 and lump sum bonuses will be awarded in other contract years. some of the workers are set to return to work as early as last night's overnight shift. what has been a saga with a lot of twists and turns appears to be over, joe >> yes andrew, it's true, just checking out some of this nvidia stuff. cramer -- >> he loves nvidia. >> you got to love the stock. >> read his newsletter >> he named his dog -- >> he has a dog named nvidia so my point was, if you name your dog after a stock, you got to love it because dogs -- i

have a dog who's 16. so that's a long-term buy. you know what the market cap of this baby is right now >> a lot more than it used to be >> it's the most -- i think you'll be shocked, that's what i was looking up it's the most valuable chip company right now. >> that doesn't surprise me given the tear it's been on. what's the valuation >> after today's move i guess we're pushing eight hundy. i look and cisco we're going to talk about in a second remember when that hit 600, back in the hay day i named a dog reagan, i thought that was -- you know, that -- probably not surprised you got a rabbit named biden, don't you, andrew? >> cooper. cooper >> that's right. >> cooper.

hunter >> nvidia shares are -- jim, really, he has been just all over this. to name a dog nvidia, it doesn't really rolloff your tongue here nvidia, down boy. speak nvidia to love a stock that much. shares continue. >> i think the dog has a name tag to get into the building at nvidia nvidia cramer. i've seen it >> it's crazy to love a stock that much. shares are higher, earnings of $1.17 a share above expectations of $1.11 revenue up 50% year over year also beat estimates. current quarter guidance exceeded expectations. the company said it has more demand than it can fill. especially for hard-to-find graphic cards popular with gamers we know how many people were playing games during the

pandemic another bright spot was data center sales up 55% from a year ago. >> the stock is up 6.5% this morning yesterday people must have been trading it down ahead of the earnings release because it was the biggest drag on the s&p and nasdaq on the regular trading sector before the numbers came out. >> 323 is the high not even at the high people during the pandemic playing a lot of video games and other stay at home uses for chips. left intel in the dust, everyone in the dust in terms of chips. we mentioned cisco which was a $600 billion company at one time i think this is old media, legacy media the computer networking company reporting earnings of 88 cents a share. revenue missed and current quarter guidance came in at the low end of the range the ceo said they're taking

steps to mitigate supply shortages including paying higher logistics costs to get things where they're needed. >> and shares of india's paytm plunged in the first day of trading. the loss making digital payment firm is india's largest i.p.o. with big backers analysts cited fears that paytm is a long way from turning a profit and faces competition from fast rising digital payment companies. check it out there an update on the covid vaccines, because the fda is meeting today, it's happening, planning to authorize booster doses of the pfizer vaccine for all adults the cdc will consider expanding booster doses starting tomorrow. if they approve, all adults could get a booster this w

weekend. more than 2 million children have received the vaccine since they approved the shots for those 5 to 11. by the end of yesterday, it's estimated 10% of american children in that age group will have begun the vaccine regiment. we have more to come the president's pick for fed chair should be in the next seven days what another term for chair powell would mean for the markets and your investments plus a big week already for ev stocks with lucid looking to join tesla and rivian. we'll look at thosinhee t next hour squawk returns in a moment new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get

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welcome back to "squawk box" this morning president biden now expected to make his pick for fed chair before thanksgiving, according to the white house two likely candidates the fed governor and fed chair we looked at what brainard would mean for the markets but steve leishman joins us with a look at four years under fed chair jay powell. >> if president biden chooses not to reappoint jay powell

because he's not been dovish enough if you look back at the four years it shows him the most progressive fed chair ever he cut rates to zero from 1.75 in one month they hit faster than the financial crisis powell and the fed added 4.4 trillion to the balance sheet more than the former fed chair janet yellen and banky combined and expanded to include corporate and municipal bonds. unemployment fell and stocks have risen nearly 70%. the main concern is whether the fed stoked a lasting inflation but so far powell has avoided the taper tantrum that hit the last time the fed tried to taper. he also engineered several

initiatives that you would think would appease progressives he announced average ininflation targeting, aiming for above the 2% inflation and inclusive maximum employment goal for rate hikes. december 2020 he joined the new york of central banks for greening the system. the main knock on powell, not inflation now. it appears to be he's not a democrat and some easing of banking regulations in his tenure there's no indication he would turn more hawkish if he's renominated, andrew. >> any new betting line for you steve as a tea leaf reader of this whole situation >> i've not been betting you know, joe raked me over the coals for this the other day i talked to economists and guys

like that in the white house and stuff, but i don't know that they're essential to -- i think the economic team has their pick i tend to think it's powell. but i don't know that the economic team is the only one making the choice. there's a lot of politics involved a good story in the journal today that talks about how this is related to what's going on with the build back better bill and whether they would like to get that done before picking a chairman a lot of politics involved here. but hard to argue that powell would be a hawk or even republican-like in that -- in his policies in the next four years. >> you are too sensitive that was not a raking at all the only thing was -- >> you're right. you're right it wasn't raking what would you call it, joe? >> when we're talking about the control of the currency nominee and we talked about, you did come out of your shell a little bit.

and say that that does seem to be that his -- that some very far left people have his ear on certain things you acknowledge that. >> yeah. >> i was saying, if they still have his ear, you know, and it's -- i could see it happening. but the point i was going to make was, calling powell dovish when you have a pandemic that hasn't happened in 100 years, what are you supposed to be? is that really a normal environment to actually judge someone's monetary, you know -- it's a pandemic. of course, you're going to be dovish a guy who was totally hawkish, a guy or gal totally hawkish placed in the that situation would be dovish, that's what you had to do. >> i would point out, he went very, very far maintained the 120 billion, been very slow to take any of it back i think that's a big knock on

him. i think you're right i think both sides agree, what do they talk about everybody is dove or a liberal in a foxhole -- whatever the phrase is, but now that we're out he's slow to take it back i know it's hard to put something up on the wall on the fly, but that chart on stocks like what he did before the crisis he went up 175 basis points and then came back down. he ended the reduction of the balance sheet earlier. remember when president trump was raking powell over the coals to use the phrase, look at the chart, he went up and back down and eased back on that so he wanted to get back to normal, i know that for sure but he was sensitive to the market he was very slow and deliberate. and i think he's been successful so far at avoiding the taper tantrum. and i think the jury is still out on this inflation call i know everybody says it's here

forever and the fed messed up. i'm not sure that story has been fully written. >> did you read tweedledee and tweedledum >> yes, i read that. >> i worry i think sometimes the president has had some questionable judgment calls in in the past about a lot of things, and robert gates has said that i don't know if you call it questionable, but powell has done a good job so i would call it questionable to replace him they mention kevin warsh and "the washington journal" says larry summers would be a good pick. >> larry summers is the guy you bring in this point if you had a concern about an inflation problem. >> larry summers is the new volker. >> yeah. larry wrote an interesting piece that i'm thinking a lot about earlier this week about how the five pillars of powell's inflation will come down story

have sort of crumbled. again, i've been talking to a bunch of people about that and whether that's the case. if you needed to reassure the markets you were going to get inflation under control, summers you bring in. >> but they're looking at powell and lael brainard. we'll hear in a few days. >> yes. >> i go back to the idea of i feel the trial balloons have been testing the market to see if there were a market reaction if it were not jay powell. a lot of people think if it's not jay powell there would be a market reaction but there has not been a reaction to the trial balloons floated so i go back to is that what they were testing. >> i think they were definitely testing it they were testing brainard, i think. i think the message they've gotten back is what you said, becky. the market doesn't really care that much. >> i don't know if it's that -- if you're still talking 73 cents

versus 29, the market thinks it's going to be powell because they think he's done a good job. we'll see. maybe. >> yeah. it just seems to me when you look at brainard's policies -- brainard is not the progressive, we talked about this earlier in the week, that the progressives seem to be champing. i guess she's a democrat, would be more likely to sit in front of congress and support the president's policies where as powell said i'm not going to do that in any way, shape or form. >> he didn't do it for president trump who nominated him either. >> right. >> powell has been pretty independent on that. >> he did it on one instance, which was the fiscal assistance during the pandemic. that's one place he -- to use another phrase -- he stepped out of his shell to be political. >> put yellen back in, steve let her do both. >> she was fine, too, when she was also replaced.

>> that might not be good. >> she was also replaced. >> you can't do both, probably but wow, she seems like she would be the dove -- or the progressive that the people that you're talking about are looking for. >> she was the first one to raise rates after the great financial crisis. >> so you're saying she changed given her current position >> you know, joe i know the music is playing but that's really important. whatever the person's policies were before, when they get to be fed chair, they have to be in charge of everyone, they don't want a ton of decents and they have to be responsible for all the policy i think that changes who the person is. >> i'm going to start walking on eggshells with you, i see i need to do that now god. raked over the coals. >> i've been taking it for many years and smiling all the way guy. >> smiling and dialing that's what you used to do. >> i don't think you're capable of tiptoeing on eggshells. you got to be you.

you got to be yourself, we all do when we come back an army of delivery drivers is gearing up for the holidays a special report on holiday boot camp, that's next. as we head to break let's look at the gainers, we have l brands on that list, victoria's secretary and bath and body works. we'll tell you why after the break. [coins clinking in jar] ♪ you can get it if you really want it, by jimmy cliff ♪ [suitcase closing] [gusts of wind] [ding]

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i promise to put your interests first, always. charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com 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! victoria's secret shares are soaring. who knew after the company's first report from the spinoff from the l

brands that revenue up after lifting guidance people resumed shopping in person victoria's secret warned it will incur as much as $100 million in supply chain disruptions including higher freight and production costs i thought it was cancelled i guess just the shows are cancelled. >> been canceled for a while. >> yeah, been canceled for a while. i thought the whole thing was canceled. >> transformed themselves, joe. >> to what flannel robes or something full-length flannel robes, victoria's secret. >> this is not my department i'm not going to get into it >> all right meantime, the other l brand spin off, bath and body works is also

trading higher, sales up 53% in the current quarter. guidance came in lower than the expected range but the company's ceo said it's mostly domestic supply chain would give it an advantage. an advantage >> right now it's time for the executive edge biggest holiday shopping season in history is upon us. with ecommerce expected to make up 20% of all sales more pressure than ever for companies like amazon, ups and fed ex to keep deliveries coming and profitable frankholland joins us from ups where 600 trucks are about to hit the road. >> we're here in midtown manhattan where holiday packages and other presents like these are sorted by the workers you see behind me. but the women and men in the brown trucks are the driving force helping ups to deliver millions of packages and deliver billions in profit this holiday

season i'm at the corner of reeves and tree mont, what looks like an intersection in any neighborhood in the country but it's one of ten facilities in the u.s. where ups will train 10,000 drivers. here they learn the techniques, tactics and tricks it is a rigorous program one out of five won't make it into a brown uniform ups expect it is average delivery to be made within 90 seconds. a critical component of training is the drill drive this is where trainees learn to identify and avoid potential hazards on the road. trainees must identify 45 different things they see on the road to figure out whether they're a hazard or not within two minutes. during the holiday season, ups increases its number of unique routes by 25%, so a total of 100,000 different ways to get a package to your business or home.

>> drivers can face many obstacles while trying to deliver a package in the 90 second window. they spend $200 million a year to prepare them, one example this slip and fall track it shows a hazard drivers can face inside or outside ups will spend 30% more than originally planned to hire workers in response to the labor crunch seasonal delivery drivers make up to $21 an hour. the competition for holiday workers is very intense. with fed ex looking to hire 90,000 and amazon 125,000. and back out here live you can see the packages are already moving this morning. coming up just a week from today is the beginning of cyber 5. that's thanksgiving to cyber monday, five shopping days expected to generate $21 billion, a record for

ecommerce in the holiday season, the first big test for ups and the other delivery companies back over to you. >> i know where you are, i drive by it every day going into the nasdaq and have been doing that for years. i can tell you this time of year it's really complicated. they have a lot of people coming in and going out, it's tough to get by because they have so many trucks coming in and out in terms of the increases, i know you said 30% more they 'expected to spend is that because they're going to be paying drivers more or hiring more drivers or both how does that breakdown? sk skblr. >> reporter: it's a regional thing. ups said they figured out how much to pay drivers to be competitive in markets more volume in the new york city area, california area, more competition for drivers. in that case they would raise pay and they say in some markets where there's less competition, they may actually decrease pay >> that's kind of shocking to

hear a decrease in pay in places it tells you this is not a national story, it's a regional story, too >> reporter: that's right. in all fairness, that's hypothetical i would think for the most part since they're increasing the amount they're spending, in most cases it's an increase to attract holiday workers, especially drivers that are hard to fine. >> thank you hunting for yield in the tech sector. the names you might want to consider for your portfolio next right now here's a look at yesterday's s&p 500 winners and losers hey businesses! you all deserve something epic! so we're giving every business, our best deals on every iphone -

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good morning, and welcome back to "squawk box" right here on cnbc. i want to give you a look at the futures right now. looking up this morning, dow up

about 86, 87 points. nasdaq looking to open higher about 95 points. and the s&p 500 looking to open about 17.5 points higher joe? time for the latest edition of sector nomics and dom chu joins us with a look at the tech stocks >> joe, technology is always a focus, the biggest sector in the s&p 500 so a lot of folks pay attention to it. but a lot of the narrative over the years has been about the growth of technology and not necessarily the value aspects of it one of the value aspects we're looking at is dividend yields. it has been an outperformer versus the broader market. xlk up roughly 30% this year beating the gains for the s&p 500. so the technology sector still in the driver's seat for most of the gains in the market. when you look at dividend yields we don't often talk about them for good reason many tech stocks

don't pay a dividend and those that do pay a modest one so we went looking we looked at the s&p 500 tech sector, roughly 75 stocks there. all the stocks with positive year-to-date returns, 61 have positive returns year-to-date and those with a dividend yield of roughly higher than the 10 year, so call it 1.5, that's 10%. the top five are here. interesting because they run a different cross-section across technology first of all, hue lit pack kard enterprise, 3.3. seagate technology 2.8% yield. intel, an underperformer but a legacy chip stock, a 2.8% yield.

cisco reported numbers last night, 2.6 and broad come, 2.5% a couple of semiconductor names and equipment name some of the big dividends that pay better than the average some of those investors might be looking towards those type of names in technology as a place to go to if they feel as though valuations are getting rich in other parts of the technology. >> that's a disclaimer, dom. because those are -- who wants those? those are your grandfather's tech stocks and the 2% yield when it goes up one tenth as much as new tech so what good is it except maybe if there's a -- a downdraft or a reckoning or -- there are crazy things going on becky and i were talking about it rivian, or -- i mean, i think that nvidia, dom, the sales last year, it'll be 26 billion this

year for sales that's unbelievable the way for fiscal 22. but $800 billion market cap on 26 billion in sales. so -- but for nvidia to have gotten to 800 billion, do you know what kind of appreciation that's been over the years. >> that's crazy. >> when i said that the dividends are antithetical to tech stocks if they don't have a decent business to invest in, they pay dividends >> we're not even talking about the interest rate dynamic on treasuries that might be driving the valuations elsewhere in tech >> tech and dividends, why bother i wouldn't want my company to pay a dividend if it's truly a tech company. >> share buybacks are the new dividends for some of these companies, too. >> when we come back, democrats counting on stricter tax enforcement to pay for the spending program

robert frank has a report on that next. and later senator kevin amjocrmer ins us to talk about the spending concern and inflation concerns in washington "squawk box" will be right back. (rhythmic electro rock music) (crowd cheering) - bito, bito, bito, bito!

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is that tom brady? yeah. he comes in to recharge, get software updates. you know. let's go! welcome back, everybody. the white house plans to crackdown on wealthy tax avoiders to try to raise billions of dollars in revenue robert frank joins us with more on the numbers swirling around the capital at this point. good morning. >> reporter: good morning, becky. it is the largest source of revenue in the reconciliation package that's irs enforcement the white house seeing a crackdown will bring in $400 billion over 10 years yesterday the nonpartisan congressional budget office saying it's probably closer to

120 billion, that's an estimate it's likely to repeat on friday. the reason for this is the behavior of wealthy taxpayers, the white house saying spending $80 billion for more auditors and better systems will cause the wealthy to pay their taxes voluntarily, the more people see people like them getting audited the less likely they are to see the system tested. the cbo saying the gains are likely to be short lived the wealthy will adapt and adopt new ways of avoiding detection the cbo saying it could take more than two and a half years for a new auditor to actually start collecting taxes from those cases. now the cbo says increased enforcement would change the voluntary compliance rate but only modestly. it's not to say it wouldn't raise any money. it would raise a lot of money, but the cbo saying it's not as much as the white house says it would be

>> robert, thank you very much for more on the conversation, let's bring in jorge castro he's now the co-leader of the tax policy practice at global law firm miller and chef leer. and joel griffith. w jorge, in your time and experience with the irs, what did you see and do you think a plan like this will work >> thank you very much for having me. there are a couple of things at play here. one is the irs budget has been undercut significantly through the last decade. so there's that at play. and clearly there needs to be congressional investment into technology and audit systems at the irs. that's been lagging behind and that's obviously caused audit

rates to also go down. soi think there's the question about how much will irs enforcement help and can the irs take in those new investments? i think the answer is yes. then the question becomes what's going to be the return on that investment. >> right and joel, that's the question too. two questions. first, should we be doing this, second of all, if we do, will it raise the money, let's tackle the first question first, what do you think >> the federal government is awash in money right now, we've seen tax revenue increase by 22% since the tax cuts went into effect what this will do is arm 90,000 new irs agents to go after not just the ultra wealthy, but this would go after many small business owners. it's going to increase the risk of audits. it's going to force even small firms to pay more for accounting fees and it's going to involve a lot more compliance time and

there's not much benefit for the costs incurred either. talking about possibly raising 120 to $200 billion in tax revenue to cover part of this $3 trillion tax scheme, you're going to be harassing so many small business owners. >> if you don't have enforcement there, you are going to have people who cheat or skate very close to the edge using the most aggressive strategies they can you can argue what the fair share is, but you should pay what you a you are on blijed to what's wrong with stepping up enforcement and making sure you're smoothing things out, especially if we have seen these investments get to the point where we know fewer people are being audited at the highest levels. >> the top 1% in this country are paying about 40% of the total federal income tax burden. >> i realize that. let's talk about people not paying what they are due if you're using enforcement to

go after people, not harass them but make sure they're paying what they owe. if you're a w-2 employee it's tough to cheat if you're not, there's a lot of ways of getting around that. >> the budget office said in their analysis this would only increase compliance modestly it will deter at lo of businesses from taking tax credits they're entitled to take. >> or taking ones they're not sure about or listening to an accountant who's pushing a strategy that you know is skating on the edge. did we lose joel we lost joel we'll try to get him back. jorge, let me turn to you on this you do think there are problems with this and problems with trying to do it so quickly for a plan that's been put through why don't you explain what you think is wrong with it. >> yeah. so i think, you know -- let's step back a second here. clearly what's driving the build back better plan that the administration is proposing is the social spending programs,

child care, health care, education. tax is just kind of -- is the funding mechanism by which to pay for those programs, right. and clearly democrats are on a very compressed schedule and obviously when that happens, that's going to raise challenges as to what's the right policy. you're seeing it play out right now. the senate, the house, different senators with different priorities, and all that's happening extremely quickly. so it's -- it -- it is challenging for stakeholders, even members of congress, who try to assess what are the consequences of these tax proposals. >> i think we have joel back joel, do you want to respond we were just in the middle of that when we lost the connection. >> yeah, without a debt the spending proposals are the largest expansion of government in our nation's history. the issue is how are we going to pay for it even going by the cbo's own

estimates this would only bring in about $120 billion over that ten-year period which covers only about 1/15th of the spending proposed with the reconciliation package and the infrastructure bill. so we have to ask ourselves, is that $120 billion of possible revenue coming in from increased compliance, is that worth the harassment of so many small businesses by these 90,000 new agents businesses that, for the most part, are complying. if you look at the numbers coming in -- >> it's been the wealthiest americans who have seen the audits go down let's be fair and straight about that it's been the wealthiest americans who have seen their audits go down and that has encouraged people to push the envelope in terms of what they will or won't do and if you're a w-2 employee you're paying what you do, because everyone is checking about it if you're using different ways about it, calling themselves small businesses, because there

are individuals doing that in the last 10, 20 years or doing something else to play around the edges, that's where enforcement i think would have more teeth. >> if you look at the congressional budget office analysis of this proposal, they make it clear that the audit risk is not just going to be for those in the upper increase levels and an increased risk for those that aren't in compliance. this is an increased audit risk for all, regardless of what you're earning and regardless of whether or not you are in compliance that's the concern here. >> looking at the irs as an honor system you have people who always pay what they owe and people who cheat if you do it on the honor system that's the way it works out. you have a fair point, both of you, this may not be anywhere near the income that the democrats are counting on. i think the cbo will show us that later this week again, you can look at the two questions and maybe come out with a different answer on each. thank you both for being here.

we'll have you back to talk about it after we see the score from the cbo. >> thank you. coming up one of wall street's top chip analysts says nvidia remains a top sector pick despite the huge runup "squawk box" will be right back from the nasdaq market site in times square back to the office. hey, i can help you do that right now. high thryv! thryv? yep. i'm the all-in-one management software built for small business. high thryv! help me with scheduling? sure thing. up top. high thryv! payments? high thryv! promotions? high thryv! email marketing? almost there, hold on. wait for it. high thryv! manage my customer list? can do. will do. high thryv! post on social media? hash-tag high thryv my friend! get a free demo at thryv.com. 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!

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welcome back that's a tweet from jim cramer this dog in the video. if you heard our conversation at the top of the shower, the chip maker boat assessments current kward quarter guidance came in above trade. despite the share runoff, nvidia remains a top pick joining us, security senior semi conductor's analyst. if you name a dog, you got to be sure of it thinking about, i've heard jim

talk about it a lot. that's the type of appreciation you get to 800 billion if you start under 100 billion to get that unbelievable appreciation, that's what you see the famous market cap increase like that. i'm glad jim did it. they want to name their dog block buflter or lucent. it wouldn't work, would it >> good morning, job i think the big picture view, the market cap is very impressive if you look at the adoption of artificial intelligence, it's been the first 10% of its adoption curve if you look at gaming, only a quarter of nvidia 200 million gamers have adopted their new product. things like omni verse are just starting the thing is that if i look at the work lords they're

all involved manipulating boy's video images that requires a very scalable platform and you know i know we keep on coming up with new things whether it's omni verse or 3d sim lakes, but the underlying silicon feedback that's why it's in early stages. >> so 26 billion in sales, let's say. you still can't deny 800 billion this company has to grow into this market cap? the meta, the spending from facebook to try to get to this meta platform is really lit a fire under this stock. because it's going to be a main beneficiary. but you take all the money facebook is planning on spending, you know, it's billions but we're talking about a $800 billion company. how do you justify something

trading at you know if it's 26 billion in sales, do the math and how do you grow into an $800 market cap >> i would think of the ip budgets. if i just spoke on the cloud computing company, facebook is planning on suspending a billion last year. amazon is planning to spend that much or even more. so you have a combination of hyperscale spending, you have intent prize spending. think of the telecon sales like verizon and others who are basing out their 35g networks. they need to have sexible ways that hand him the use annual of the ai i think that's the point they have many scalable across all these markets. on top of it, you have markets like gaming and marks like

automotive because a multi-trillion dollar zbri, myself, just from the transformation, i think that's what makes the growth projectory very, very interesting and exciting and i go back to five or six years, you know, many of these markets we have not even heard of that's why i think the valuation that the company will surely grow into is because of the architecture, they have so much leverage on a lot of these markets that continue to grow every day. >> your long idea whole the metaverse, you need a lot of chips to simulate reality, obviously, there will be millions working on whatever it takes to do that i am reading a quote that morgan stanley analysts think that in the metaverse there is a $57 billion opportunity for luxury good makers to sell their products to be worn by avatars

in the new virtual world >> i would think about metaverse in that there is a consumer application and an enterprise application. the enterprise side is whalely what is going to start earlier in some cases, it's already started. think about nvidia, their version as a concept of creating and collaborating in an environment. so the concept of a digital twin so bw. you know, having a new factory that the first simulation in 3d. think about using these tools to signify what they look like before they put in the base stations and so on i think the twin will take off in the enterprise, of course, there are consumer applications. >> i'm going to, andrew, i appreciate it.

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in focus once again, we got the futures pointing to a higher open after yesterday's slide we'll tell you what you need to be watching in today's trade session. the fed chair picks and what it means for the markets. and make sure you eat your veggies, sweetgreen's debut on wall street. the next hour of "squawk box" begins right now ♪ .

>> good morning, welcome back to "squawk box," right here on cnbc along with becky quick and joe kernon we are in the green this morning. it's nice green there about 77, 78 points on the dow the nasdaq opened higher here's what's making headlines this hour. we got striking workers at deer. they're returning to their job after approving a new six-year contract it provides raises, bonuses and improvement. 61% voted in favor of that new agreement, ending a strike that began october 14th meantime, amazon considering dropping visa as a partner in the united states on their credit card. this would come after word amazon would stop accepting visa credit cards in the uk to higher

transaction fees that led to a 4.7% drop there. amazon spokesperson telling reuters that it is in talks with several payment networks as a part of a regular review of its credit card agreements a significant developments, drug maker sastrazeneca is offering 83% treatment. it's not a vaccine it's aimed at non-infected people and cuts risk of worsening symptoms of patients who do contract covid-19 so another step in the right direction, becky. >> that's right. it seems like every day there is more promising news, mace e's is reporting the numbers. >> hi, good morning, becky, mace's earnings per share, reporting 1.33ed a judd

estimated revenue stronger, too 5.44 billion compared to 5.2 billion. prabl sales of 35.6% owned plus licensed that compares to 2020, better than 29.3% estimated, growth over two years as well as one year this year's results do include a basis benefit from friend and family, sales have shifted into the third quarter from the fourth quarter in 2019 macy's also raising revenue guidance to above consensus. earnings guidance, though is now in line with consensus, it's digital sales grew, 49% over 2019 a third of the sales in total coming online. down five percentage points from last year's third quarter. we were doing ten percent annual points above, however, the third quarter in 2019 gross margin up 41% from35.6% in the third

quarter 2020 and up 100 basis points in 20 nanny the retailer added 4.4 million new customers, a 28% increase over 2019 everyone purchase is ahead of schedule. remember we paid attention thomasseyy's cash closely for a long time. it's announcing plans for a new digital curiated marketplace platform to add to the products available online jewelry watches, sleep we're continue to be strong categories current investment in stores, digital and people and says macy's inventory is up 19% from the same quarter last year down about 15% from third quarter 20 nanny he said, quote, we have been in inflationary times before. we have a science for how we

promote goods and how we mark down goods some pricing has changed, he acknowledged customers have sing some, some they haven't october was the strongest of the quarter. shares for macy's higher by 9% in response. back over to you >> that is a big jump in the sales, almost 9% when you talk to their inventory levels, that's what's so interesting, for a company like macy's, it's different tan the stores that were opened and doing gang busters a year ago. they talked about how walmart was an inventory up 11%. maybe it was 17% at target if i am getting my numbers right. if you talk about macy's inventory numbers from a year ago, they were in a different position i think it's interesting you pointed it back to the inventory to 2019 third quarter and it

being down are they having troubles with the supply chain like everybody is are they able deal with them effectively as the big box retailers. >> they've said they've done a great job mitigating where they can. macy's will be much more heavily skewed toward apparel, or walmart. it's not chartering its own ships. it has done well when you look at it. the inventory numbers have this other cross current if you remember in 2020 when the stores were mandated to close because they were non-essential, peacy's had to move fast so cancel eling some orders for later in the year perhaps or just stopping them in their tracks you also have that comparison from last year, too which makes sense, i think they ended up

with less inventory than last year but that turned out to be an okay thing so they get stuck with extra inventory, they're going through the store programing, too. we could have cross current impacts there. >> the store is impressive, too. you look at the pandemic it's up 220% since the pandemic march 11th in 2020 courtney, thanks very much >> let's go back to dom chu in early pre-market >> aside from macy's and kohl's, online retailer and giant ali baba in coin coming out with results in the last hour or so the expectations were maybe understandably low going into this well, somehow ali baba did underperform those reduced expectations, shares are off 4% in the pre-market trade. it misses on earnings, it misses

on revenues, this is a major big technology companies in that particular value, maybe that's a reason you are not seeing more of a reaction. a complete different story when it comes to innvidia those shar up 8%. hovering below the record highs. nvidia comes out with better than expected revenues a little bit more data-centered demand ai covering that demand. applied materials up one and a third% intel flat on the session, one and two-thirds percent one other place to watch as well is boeing. the dow component, the shares up

1.5% getting help from j.p. morgan who up to date their target on the stock to 275 they are saying it was an overweighted stock they like the catalysts that boing could see. down the line as well, of course, the benefit that a play-maker would get from the ongoing trade, boeing will have an impact on the dow over to you. >> a boeing and rivian have about the same market cap. >> some really weird things. they can give you the map and the explanation for these things but it's less than 200 cars at this point we'll see. big promises big orders from amazon big backers. we'll see. when we come back, salad startup sweetgreens set to start on the

exchange we'll speak to the company's cofounders about the high end salad concept of eating. over the break, another retailer, kohl's adjusted earnings 1.25 a share pete is e competing to the street's expectations of $64 cents. more than a buck kohl's shares up 6.25% "squawk box" will be right back.

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. welcome back to "squawk box" this morning sweetgreen making its debut under the ticker sg today. the salad chain is home to well how do i pronounce it the guacomole green salad gets $28 a share. sometimes the salads are pricey, too. joining us are all three of the foun founders good morning all three of you, its great to see you, crawls on this milestone of a day i eat your salads religiously. we talk about the economics of your business. tell me how this company began, the origin story. >> first of all, good morning, it's amazing to be with you guys today. first of all i want to thank our team members for making this happen sweetgreen started more than three years ago at george town

university and had a shared problem if our lives, where we couldn't find a place to eat that was healthy, convenient and affordable we wanted to disrupt fast food and make it healthy. together we wrote a business plan and opened our first restaurant i took over an old burger shack, 500 square foot burger shack the idea was simple. we wanted to source food locally from farmers, make it from scratch and serve it to customers. >> so the idea is at this point you plan to double in size even from today over the next three-to-five years? >> yes >> yes absolutely we believe we were at the very early stages of our growth with 140 restaurants in you are boone and suburban markets there is such massive wide space for what we are doing. there is a complete shift in people thinking about food, from a health perspective, wanting to connect with brands that really stand for something. we believe sweetgreen is ce

positioned at the center of this movement. >> can we talk about the trajectory, where you can do it? this has worked on the coast and certain cities how far can you get out and it still work >> you know, we started the company in washington, d.c we worked our way up through the east coast woe now have a presence in 13 states in washington, d.c., including california, texas, chicago, colorado and florida. it works in both urban and suburban markets and we believe we're at the very early stages of our growth. over time, we want to build a massive global iconic food brand. we like to say we want to build the mcdonald's of our generation eventually we want it to be everywhere but we are taking a disciplined approach on how we get there >> i know you want to do drive through. can we talk about the inher ret salads and driving at the same time i understand how mcdonald's does it, i sit there, eat the burger

with one hand, maybe i shouldn't. maybe we have to wait for autonomous cars for this to work out. seriously. >> for drive through, it's one way of making it more convenient for the customer from the very beginning, we want to compete with fast food, we have to mike it as accessible and convenient and frictionless to order we introduced the five channel modem. you can pick up delivery on the marketplaces and we're always looking to make it more convenient to order, so drive-through is one of those ideas. we will be constantly thinking of other ways to meet our commerce, wherever they are. >> can we talk about profitability and path is here this company is not profitable >> absolutely. the company made significant investments, from our supply chain, technology, our brandr broond and motor importantly people over time, we are looking to leverage that infrastructure we build. over time, we're looking to

build a very big and profitable company and are very confident in the investments we've made so far to help us get there >> gentleman, i do have to ask you. i think you know where this question is going. back if 2018, you did an interview with kara fisher on her podcast. you were asked if the company was profitable you said, we are the document seems to suggest if terms of the filings that you are no can you speak to that >> yeah. of course, you know at the time of the filing, at the time of the interview, first of all, i'd say those were non-gap financials that i was referring to so at the time of the interview we felt confident in the statements that we made. however, you know, of course we made investments, as we go public, the way we have to report numbers are a bit different. so we referred to adjusted ebitda and we have not recorded from an investment >> a lot of investors will say,

who is the comparable? what is the restaurant chain we should be thinking about is this something, do you look at a chipotle or a starbucks i know you said you wanted to be a mcdonald's i'm not sure that seems to be a different model? >> it's a great question we actually look up to all of those brands we started sweetgreen in 2007. this idea of health around wellness was getting started now we think they sit at the intersection of many exciting consumer trends. as we think about comps, we think about what other fast food brands are at scale. we really believe that there is a seismic ship and an action to purpose-driven brands and sustainability is top of mind for many of our commerce >> gyneally before i let you go, you had a piece earlier this year it was pretty controversial. you put up on linkedin and the idea was that you had

argued for a tax on unhealthy food i am curious what the reaction was. clearly, there was blowback because you took it down but how do you think about it now? >> yeah, you know, first of all, i'd like to say that i do believe wearing masks and getting vaccinated is absolutely imperative to beating this pandemic however at the same time i do believe as a country we could talk more about the underlying health conditions related both to covid and the health of this country. so while i do not believe that healthy food alone can save us all. i do believe it's an important part of our health and something we should just pay more attention to sweetgreen alone will not solve this, the but together if we focus more on health and wellness and more preventative measures, we think that can change the healthcare in this country. >> right i told you that was the last question let me askone more which has t do with supply hain, which is what you are seeing now in terms of access to ingredients right

now. >> sure. great question so we are living in a global supply chain crisis. it has been challenging, but we're incredibly proud of the supply network we grew, over 200 farmers and growers that work sustainability we get to work with as we scale. it's been incredible to help with our growers and suppliers we work with many of them in the long-term ways, thinking one year out, two years out, planning out our supply, our menu the majority of them are domestics. we have been able to stay close to them and ensure the supply of our food >> okay. gentleman, congratulations we look forward to following your progress. i will get some guacomole greens at lunchtime today >> thanks for being a customer. >> my only question, andrew, is when they will open one near me sound pretty good. when we come back, apple's new program will allow iphone users to fix their own phones without voiding the warranty is it the fix commerce have been

looking for? we have this in a little bit meantime, let's get a check on crypto currencies, bitcoin down slightly ether down a half a percentage point. "squawk box" will be right back. . time now for today's aflac trivia question. the term frisbee is often used generically to design i describe the flying dc.is but frisbee is a registered trademark of what company? is answer when "squawk box" continues. continues. [aflac!] looks like aflac is ready for prime time. [eh eh eh! eh eh eh!] hey, coach to coach... what do i need to do to get one of those jackets? ♪ get help with expenses health insurance doesn't cover at aflac.com

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now the answer to today's aflac trivia question. the term frisbee is often used generically to describe the flying disc. but frisbee is a registered trademark of what company. the answer, wham-o the company also makes the hula hoop, slip 'n slide and silly string.

>> all great products. still to come. mohamed el-erian gives us his update on the markets and the vaccine rollout for ilenchdr as well as boosters for adults. stay tuned "squawk box" will be right back. "squawk box" will be right back. >> i'll shoot you an estimate as soon as i get back to the office. hey, i can help you do that right now. high thryv! thryv? yep. i'm the all-in-one management software built for small business. high thryv! help me with scheduling? sure thing. up top. high thryv! payments? high thryv! promotions? high thryv! email marketing? almost there, hold on. wait for it. high thryv! manage my customer list? can do. will do. high thryv! post on social media? hash-tag high thryv my friend! get a free demo at thryv.com. your shipping manager left to “find themself.” leaving you lost.

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. >> good news, apple yesterday announced a new program allowing iphone 12 and 13 users to fix their own iphones without voiding the warranty it comes as consumer groups have been pushing right to repair legislation they say will allow them to get fixed more affordably is this the fix we have been waiting for? john ford is here to weigh in on that >> oh, becky, i'm sorry i thought i saw a pig flying through newsroom here. this is amazing, a battle consumer advocates have been fighting before the iphonesed. before that apple launch retail stores and self service shops went extinct it will offer a 43 repair guide, access to buy general parts and the ability to perform valid repairs. in the new millennium, things had been moving in a different

direction, gadget makers were making small devices that you had to bring into their special store to get repaired at a hefty premium, of course legal pressure probably had a role in bringing us to this water shed moment. yes, it's a big deal >> how much money will people start too save this way? will you start fixing your screens? >> i don't change my own oil let's be honest. it's nice they're offering manual tools this isn't like jumping your car battery or swapping out a tire, both of which i do by the way. i thought repair is more complicated. if you do it wrong you can pay all that money and void your warranty you can't repair it with used parts from another phone new parts will probably be expensive, a screen for example costs about $235 bucks, apple charges 270 to do an out of

warranty repair themselves, don't get me wrong, self service repairs a step in the right direction. it's probably fought going to change your life it might make repair skills more accessible i think if it gives them nor help over what they buy, that's a good thing. >> i change my own light bulbs looking at stuff like that, for me it's not about fixing it, mile, maybe it's running to the repair shop around the corner versus going to an apple store knowing i may not get it back today or tomorrow or the next day. it's about convenience of being able to fix it quickly and close. >> i think it's that, it will empower some people that way, more people who are able repair stuff. the other piece of it is, is how long do these companies have the replacement parts available for people who need a repair there's legislation not just in the u.s. but abroad that will push companies to keep those

farther for older phones available for years. maybe four or five years i think that's good for consumers, too >> excellent, as always, much more coming out of this. great to see you >> good to see you >> i don't know if i will do my own reware, coming up, the marks, the fierce, mohammed el-erian shares of sonos. the company has adjusted 8 cents per share. they announce they will buy back up to $150 million of its stock. "squawk" returns after this. what's strong with me? what's strong with me?

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president biden now expected to make his pick for fed chair before thanksgiving, according to white house the move could impact markets, joining us now mohammed el-erian he is also the president of queens college of cambridge. i don't know if in all reopened bars the ones that are, i don't know if everyone is sitting around talking and brainard, versus powell.

maybe not. certainly a guy like you has to be hearing things or thinking what potentially happens in the next week or so. where do you think we are between this, what became more of a horse race than we really thought it was as recently as a month ago? there is a good chance it could be brainard, isn't there >> there is. let me say what i am saying is that people reconcignize most o them have experience they recognize both of them continue waiting they recognize that both of them will get through congress where it's different is expertise. one is economist leal brainard and another a lawyer jerome powell i think that is a critical issue going forward you who want navigating the fomc. >> do you have a preference,

mohammed, at this point know wag you know >> look. i think that both are highly qualified. if you want to put a gun to my head and say choose one, i will go with braven ard, the expertise will be absolutely critical as we navigate this joe, there has been a significant change, take the inflation most seriously two, make sure that we do not destabilize inflation. the last thing we need is that to come a part of the supply issues finally, be more open-ended, more open minded not just to go more quickly and easing stimulus, thinking about climate, thinking of crypto, thinking of regulation i think the regulation of travel is clear that's why the odds have

changed. >> you still think we will see this money move into the pullback in the equity markets what is the canary in the coal mine that maybe maybe that's not going to work before him tapering is coming we got trouble in parts of the company, michigan, that has us wondering about cold weather and whether we're completely finished with this what do you think that will be maybe the fed doesn't move too quickly because of that? >> so i have three sets of risks. william is a policy% stake the fed goes slowly and has trouble. then the market cannot cope with hitting the breaks it's a good time to take your foot off the accelerator

all of us want to avoid hitting the brakes scenario. that means, joe, accelerating the paper next month that's what that means, so with number one the fed is too slow with number two, is you get some sort of market accident. there has been a lot of liquidity sloshing around and risk-taking. you always worry something will hit you out of left field. two things hit us. the third is geopolitics, the geopolitical situation particularly between china and the u.s. is really unpredictable. >> it's certainly s. so that's, if you had to rank those where you think the problem, is china seems i don't know that would be a black swan that comes out of

nowhere even though we talk about it a lot none of us believe it's front and center you think it might be inflation and the fed moving to try to contain it >> i think that's the highest risk of the marketplace. it's the high risk economy and a higher risk in terms of social impolitics as well in terms of china. if you want to focus on a low probably but high impact event, ask them what would happen to the mark place if china were to invade taiwan? that will give you a feel of a low probability high impact event looks like >> i want to go back to the idea of what happens if she becomes the fed chair. how do you think of the broader context of the fed being

political sized? we seen this before. so maybe this wouldn't be the first time >> i don't understand that argument she has been on the fed board for six, seven years she is highly respected. this is not a political choice this is simply looking at people who qualify for the job. so it's not about the fed. this is about asking the question who is among a good set of candidates. >> i think she is highly qualified and this is j. powell did everything that needed to be done why do you remove someone who has done such a good job at this point unless you think that you want somebody who is more in your political leanings. if this were donald trump, he did some heat for taking yellen

out. >> suppose j. powell has done a great job leading the fed, except on inflation. i think the mischaracterization for so long is transitory. it means that now fed policy is a risk >> leal brainard was with him, voted exactly as j. powell did >> as did the majority you have to understand the fed wants to operate with consensus. that's a key issue >> they always follow the fed. it's a tradition they don't want differences to come out in the open i understand that. that's the way the fed has operated for a long time >> all right mohammed, people want to know, you think the answer is in those books behind you

>> come have a look. i can tell you, there is no answer i have looked through all that >> man, i don't, yeah, you are right. i don't know what that answer, without any given, on any given day, every team looks terrible do you have a favorite i bet, who would you take tonight? you love the patriots, don't you? >> i find it very hard to like the patriots i'm sorry, joe i like the bengals >> is there a single book with pictures in it for me? there isn't, is there? >> maybe a photo album all right. mohammed el-erian. you lost sindeguard, too, how does that feel i heard he is a big "squawk" fan, how does that feel?

>> okay. >> making a lot of money 20-plus million. that's a lot i know for a lot of people, that's a lot of money. >> all right okay thanks, joe, coming up, the electric vehicle market giving investors return, lucid, market cap larger than ford and it's crazy. it's crazy, we will tell you what is working in this space after the break and pfizer announcing the u.s. government signed a deal, for an all anti-viral drug for driverr delivery, too. we will discuss this and so much more as "squawk" rolls on after this me? look, as cfo it's my job to be ready for whatever's next. that's why i have my finance team, randomly hurl things at me. it's also why we use workday. it gives us insights,

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welcome back to "squawk. news just out, a deal blackstone closing that deal today to acquire shape wear brand spampgs for $1.2 billion the news this morning, oprah winfrey, reese witherspoon and bull marketable founder investing spanks blackstone digging out bull marketable in 2019 before it went public earlier this year. >> that's a big deal

>> it will be interesting to see how that works out i don't know if they're strictly lps in the fund that blackstone already owns, whether it's a side deal, separate. >> remember we talked to black toep they are looking for more and more of these female businesses kind of as a way to go about that that's kind of interesting >> shapewear brand >> which is not just for women >> tell me about it. >> joe they make shirts >> spanx for men >> just for me disclose anything. i'm telling you, i'm very familiar with these things i've explained to you in the past why i have a tradeoff. can either have hair or, let's not get into it. like you know, there is a science -- and i have been told. >> let's move on to something less racy. >> the hair is more important, so i need things that really suction things in. and i wear them all the -- i've

had trouble lately with the spanx in the back i feel like it's going down a bit. so i'm back to wearing a ralph lauren, i don't feel very fit. these are all way tmi. >> i know. >> you have been on this show a long time. you used to talk about tommy johns all the time >> i thought you looked so svelt. >> it was all that exercise, i didn't know. remember the seinfeld's episode, the manseer. it's a bat i have hair. victoria secret, a spin-off from l brand. revenue was slightly short of expectation. if company lifted it's fourth quarter guidance the company saw an uptake inin store sales as people began shopping in person victoria secret said it will

have q4 supply chain disruptions, including higher 48 and production costs that's kind of the opposite. victoria secrets, it's not >> oh, no, it's not. you have never worn one of the bras have you? >> one of their bro's it would be it seems like there is not enough clothing to be able to hide you are wearing spanx >> i thought the move was to make them more comfortable >> i have an idea in fact, maybe i'll look into that. >> anyway, let's take a look at shares of rivian those shares have been on a tear the market cap is now bigger

than boeing. joining us to talk about the rise of evs, the parent company cox enterprises is an investor in rivian. just to be clear, i don't believe you look at stock analysis, are you looking more at trend >> that's correct. we look at consumer behavior >> that's the big question people have, how do you justify? why don't you tell us what you see in terms of whether consumers are interested, to what extent they are seeing? >> we are seeing every quarter more insurance in evs. in the last quarter, our study shows one out ou of four consumers considered buying an ev that's the highest level we've seen still mark share things like riff combran and the

new products at the l.a. auto show are really helping drive int interest >> and in terms of that interest we're talking governments pushing us to the idea much more of the ev market is going to be and much more of the market will be evs in the years to come. does consumer demand at this point match up with what we're hearing from the government? >> will, it's kind of a chicken and an egg we need an ev charging infrastructure to drive ev scales that's one of the concerns it needs to be more less concern with consumers but it's really important we have an ev charging infrastructure to drive ev kaels. we need the drive to ev sales to encourage the ev infrastructure. >> so what are the sales right now? where do you anticipate they will be say five years from now?

>> well, ev, pure ev sales are a couple pea percentage of the co market in the coming years, we anticipate, global u.s. is lagging a bit. but it could be much higher. there are some people saying as much as 20% by the end of the day. >> does that sound right to you? >> i think it all depends often t on the ev infrastructure the biggest obstacle for consumers is price evs cost more than regular vehicles and it's the number one barrier. so we've got to have more evs on the market that are affordable to the masses. >> does that mean the government has to continue to subsidize ev sales? >> we are seeing more tax credits in the infrastructure bill so that may help. certainly the more main stream buyers him i'm not sure it does

for people that buy more expensive evs. this helps >> in terms of the ching and the egg, how big of a concern with the charging service, being range bound, not being able to recharge quickly or in an easy manner how big of an issue is that in a consumer's mind? >> it's interesting. we prepared a study to one we did years ago and still the top three ob strategies to ev adoption are range, infrastructure and price but what we saw is that the concern about range has decreased, large lip, because we've seen such improvements in the range of evs and the infrastructure, which is improving and especially under the infrastructure plan, we'll get a lot more of ev chargers. but price remains the obstacle, so we need to see models placed much more affordably

>> thanks for your time today. >> thank you >> coming up, kevin cramer will join us to talk president biden's spending bill concerns out of washington on inflation, plus, expecting the latest read on jobless claims. the futures ahead of the data are okay nasdaq is loinokg solid. stay tuned you are watching "squawk box" on you are watching "squawk box" on cnbc hm... i know how difficult these calls can be. not with schwab. nina made it easier to set up our financial plan. we can check in on it anytime. it changes when our goals change. planning can't be that easy. actually, it can be, carl. look forward to planning with schwab. schwab! ♪♪ ♪ ♪

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good morning more impressive retail earnings, macy's and kohl's estimates. the stocks surging details ahead. meanwhile, crude oil trading lower. the biden administration wants to see if illegal conduct is contributing to higher prices at the pump we will talk about that and the latest on d.c. spending with kevin cramer and can anything stop nvidia the chip giant junk on solid results. we will tell you which one as the final hour of "squawk box" begins right now

>> good morning, welcome to "squawk box" here on cnbc, live from the nasdaq market site in time's square, i'm joe kernon. along with becky quick and andrew ross sorkin, u.s. equity futures at this hour marginally changed the dow up a bit we see the nasdaq up almost 90 and the s&p indicated up about 13 we did have a pullback yesterday after a better session on the day. on tuesday i guess and we had the down week last week, the first in five up weeks and treasury yields this morning, we looked like we might get through one-sixth. we're just below that 1.94. >> it is 90 minutes to go on the

opening bell on wall street. dom chu is here. he has a look at the top stock movers, hi, dom. >> the headliners in terms of retail, kohl's macy's, both retailers coming out with better than expected revenues, the trinextas, exactas, it's generally positive so that retail story playing out well here for kohl's and macy's ali baba shares are down in u.s.-traded shares you see there about 5.5% down 34% year-to-date. ali baba misses estimates for profits and revenues amid that ongoing crackdown in china so ali baba shares taking it a bit on the chin there. the third hour of "squawk," oftentimes a look at the most

popular ticker over the course of the past day, the top of the list is nvidia, no surprise there but then rivian the top five electric vehicles there. target given the retail heavy week the rest of the top ten, joe, is at my twitter feed at the domino back over to you president biden jumping in one of gm battery powered hummers in detroit biden meanwhile toured an ev plant to highlight the new trillion dollar bipartisan infrastructure bill. the president and democratic lawmakers are awaiting the budget office score on the nearly $2 trillion build back better bill that some people put at 4 trillion? we could see debate in the house start today. joining us to talk trading

a everything raing member of the environment and public work subcommittee on transportation and infrastructure the analogy sausage being made is thrown around a lot, but we can't help but wonder, how this is really going to play out? the house is one thing i don't know whether speaker pelosi gets this done or what happens. the whole idea of what happens in the senate seems to be dependent on some senators that don't seem to be on board do you pass joe manchin in the halls, does he give you any indication he will walk away from saying we should pause from this and take off some sometime before we do it >> first of all, you are right, it's dramatic. speaker pelosi has her hands full of keeping everybody in line with a three-vote margin and a lot of moderate democrats

uncomfortable. the senate has in addition to a 50-50 senate, key senators like joe manchin and kyrsten sinema remembering all 50 oppose this so we're solid it does come down to one or two that can stop it it comes from the ability to destruct joe manchin has a lot of about to destruct. do i see him my office is close to his. we dine together on a regular basis. he's a good friend i think west virginia and north dakota are similarly culturally and politically in many respects the the thing i know about joe is he will do everything in the just for the country but the people he represents a. lot of people look at the transactions of washington and the way we play in the senate box together. they wonder what's up. at the end of the day, we all represent some people and those people often will drive you know how we vote. joe represents good correspondence people from west

virginia i think he's taking the right attitude help wants to slow things down and people and job creators aren't killed and we don't continue to contribute to inflation and, frankly to me, that's one of the biggest problems going forward with the build back better plan is it would add to inflation pressure at a time when it needs no more pressure in this economy >> senator, energy prices are notoriously hard to understand why they do what they do they're all over the place back off a little. not quite as bad you might know a little about it from north dakota. what happened in the last couple of years did me mess something up is any of this self inflicted suddenly we're begging opec for help when just a couple years ago, i thought we were the swing producer with all of our horizontal drilling and -- >> right yeah well, the innovators in north

dakota and texas and other places around our country need us to play year. when we lifted the airport export band. we saw the wti, for example and crude oil come close together in price. it's largely defined by the brent price, the international price. so we became the price setter, if you will. now, obviously, there are other, you know, players in the world, particularly citing saudi arabia and opec that can manipulate the markets with an over supply. but when we went into the pandemic, let's face it. that's not our fault it's not joe biden's fault, donald trump's fault, obviously, de3457bd went way down with that, of course, drilling slowed down. you have the saudis and opec flooding our market at a time when our domestic producers were slowing down, that warped the situation. coming out of the pandemic, when demand was going back up, in comes joe biden. he shuts down supply by, you

know, the prohibition on federal lands and then he begs opec for help to produce more so that he doesn't have to suffer as the inflation president. these are self inflicted these are the direct result of policies that stifle domestic development and begs for global development. at the time all of this is happening, he greenlights nordstream, 2, the gas line from russia to many hoff our allies in europe. not only is that bad economics, but it's bad for the environment and bad for the climate natural gas set over pipeline to our allies it emits 41% more greenhouse gas emissions than natural gas produced in the united states, liquified, sent on the ship to the same countries some it's contrary to everything he

believes bad for the economy. bad for jobs bad for national security and the climate. that's a great idea. it makes no sense. >> senator, i wanted to redo a quote from the cfo of chevron. in many ways, it's the antithesis of why prices have gone up. he says the rise in prices feels more cyclical than structural. we had rapid demand decreases last year, rapid increases this year it's hard for supply to adjust, it appears supply was lagging, he's one of the largest energy prices in the world. he said it wasn't a function of things you just discussed? >> except, he is arguing with himself. i come from north dakota if are you a chevron ceo, you're

going to take a different view of the supply when your supply is produced whenever you want to produce it i take a different view. even in his own argument she right, it doesn't ramp up quickly. it ramps up quicker than it used to there is an anti-policy from joe biden. he is the one that shut down leases on federal lands. they're a value part of the value chain. >> i'm not disagreeing with you. i think there will be long-term effects as a result of that. the question is whether they are seen in the price today. that's where there is a real question >> the price today is certainly a part of the fundamentals of supply and demand and we'll get there, but we're not going to get there in places like north

dakota have to produce 400,000 barrels less or the uncertainty of the infrastructure that moves the product. shutting down of price lines and pipelines in russia. all of that contradicts. while it may not contribute to the moment it contributes to the speculation going forward and the investment is attracted by certainty and then shed by uncertainty created by these policies i think it's near term and long term it's all that and it's contributing to the supply shortage that's contributing, obviously, to innation. >> senior, transportation and infrastructure subcommittee. that covers a wide rage of things how that will roll out when we will see results from that, also, do you think that the government is responding to

problems at the ports, the k congestion a problem people bringing the ports, is is that being addressed? what do we need to do? >> well, first of all with the infrastructure package, the reason i supported it strongly is that contributes to the supply side of the economy we have been stimulating the demand side of the economy, somewhat appropriately, way over the top in the last eight, ten months, i think the federal reserve gets the blame for that with a dovish attitude i think the biden administration does i was looking to adding 2 to 4 trillion now that's contributed to the supply side le that should help. that will not be immediate with regard to the bottlenecks at the ports and things, i don't think enough is being done i would say getting back to all

that free money, a lot of it paying people to not work a lot in the bbb bill to sort ofgy money to folks without work requirements i think we have contributed, i say we, the federal government, particularly the biden administration contributed to the problems at the supply chain by paying people to not work so there is a lag in getting all of those people back. whether it's truck drivers or workers at the port itself everybody up and down the supply chain. we also have to remember it's a global as well i don't know how much more can be done. i am anxious to work building the infrastructure and ports and waterways and railroads, highways, bridges. all the things to a pasta plant you need it in your favorite restaurant in manhattan.

it's important we move product from start to market >> all right senator, thanks, any snow yet? >> we've had snow. we're making the transition now, joe. we are going to do our part. a lot of north dakotaens, while we produce a lot of energy, we also get very concerned about the growing cost of home heating this time of the year. you talked about a major inflationary pressure. not to mention the price of a turkey is going way up >> all right senator, thank you >> thank you >> coming up, former fda commission dr. john gottlieb, we will ask him about the moderna pralfor a wider booster apov stay tuned for that and so much more, "squawk" rolls on after

th this >>

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>>. welcome back to "squawk box," everybody. we heard about nvidia from zom chu a few minute ago look at cisco, it's moving in the opposite direction after they forecast current quarter revenue coming in below forecast cisco says it seen them drive up

costs. the stock is off by six and three-quarters percent >> meantime, both pieces of the former l brand seeing stock doing well, a stand-alone companies? reporting a profit of 92 cents per share. well above the consensus estimate and victoria secret wall street e beating wall street forecast by 10 cents per share. so a little good news. haven't been a lot of it recently. >> we will have a new look at initial jobless claims after we hit a post-covid-19 low. dr. scott gottlieb joins us to talk more about the new hot spots in the u.s stay tuned you are watching cnbc live in time's square.

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! ♪

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welcome back to "squawk box," everybody. the futures this morning are indicated up, not by quite as much as we'd seen earlier. tf dow indicated up by 34 points the nasdaq up by 83. right now the dow is on track for a losing week, which would be a second row. we got an update on covid

vaccines we could be getting full adult authorization from the pfizer shot today the cdc will consider booster doses tomorrow if both agencies approve, tens of millions would become eligible to get that booster moderna submitted a revised authorization to be given to all adults over age 18 and older, i should say this comes as average daily covid cases have risen by 38 percent in the last week. the former fda contributor who serves on the boards of pfizer and illumina dr. gottlieb, it's good to see you. it seems every day we are winning this battle. we have new treatments, new vaccinations, new procedures to deal with things it seems we are seeing headlines about concerning rises not only in the northeast, throughout the north and germany and belgium

saying they want people to combat the cases there how do you read where we are right now? >> we will see a pickup in cases, and the delta variant is moving into more populated spread of this delta variant across the u.s it's running its course in the south and southeast, the pacific northwest is coming down, the plain states right now you see the delta variant moving into the southwest, moving into the states around the great lakes, parts of new england, northern new york it's moving into more populated regions that so far haven't been touched by it. you will see it go up and also the fact that we are heading into the holidays, when we know there is a national bump up. i think what we will see is a pickup in cases, an extended plateau and national averages as

a result of the sharp decline in states like florida and texas. those are going to stall out i think we have a couple months ahead of us, on the back end, hopefully prevalence declines sharply like it has in the southeast and the south. after you get immunity into the population. >> everyone i know has plans to spend the thanksgiving holiday with family. so many went without it in the past i'm not talking about huge blowout parties, maybe i don't know a single person who isn't planning on spending some part of the thanksgiving weekend with their extended family should we be concerned about that or feel pretty good >> look, i think it can be done safely the reality is the boosters are our best opportunity in the near term to put more immunity into the population and protect those settings this i think was a big missed opportunity, the mixed imaging around this. now there seems to be a broad benefit of boosters. this was first raised in july, there was a lot of resistance in

the public health community to the idea of pursuing boosters when you know pfizer first started to pursue an application and started to do a study alonging at the benefits of three doses versus two doses now it's quite apparent from multiple studies an effect of the boost, can be immediate. you only have about 40% of your protection left to get systematic disease because you were first vaccinated eight months or so your protection goes to 85% in a matter of days if you want more immunity, the fastest way to do it will be to get people to convince someone who has two doses to get a third dose than convince the holdout, the 18 pars of adults to start getting vaccinated for the first time it's not an either or. we have the resources to do both those things we are focusing getting more

people vaccinated. not focusing enough on trying to get people eligible for boosters, who are six months out from receiving their last dose, a third dose of the vaccine that can have an immediate effect of getting more immunity into the population. >> scott, though, the question i'd ask you is right now there is a lot of events happening indoors with the idea that people are indoors are going to be quote fully vaccinated. fully vaccinated today is defined as two doses, how are you thinking of those times of events with either family, friends or peers and also is there any and i see a lot of people talking online thinking of doing testing you know, a quick easy by next test or something before a thanksgiving event with family or a potential you know big dipper with 15, 20 people? >> yeah, look, i wouldn't be comfortable with that setting if

i was vaccinated six or eight months ago and haven't received a booster. i think people should seek them out. it sound like there will be an expansion of eligibility to simplify who can go get a booster at this point. the decline in the immune protection offered by the first two doses is consistent. we see it across multiple studies. it's quite apparent. if you go out and get that 31st doze dose, you will increase it back to the original 95% protection against infection and symptomatic disease almost immediately. so i wouldn't feel comfortable going into that setting if i was vaccinated eight months ago, six months ago and have not received the booster. the other is to use testing. >> scott, you are boosted. do you think about being around people who are quote fully vaccinated but it's seven, eight months ago differently than you

do do you say you only want to be around people who are boosted? >> speak to how you think about those two types of situations. >> look, we can't do that, r right? because the definition is two doses, certainly within my family setting, people who are eligible for the boost verse sought them out. i encourage people around me to do that. we now know there is infection being passed among vaccinated individuals who have declining immunity this is one of the reasons you see a push by the administration to get the boosters more broadly administered they recognize clearly that there is infection happening among people vaccinated a long interval ago they're getting the infection and spreading the infection. we seen bad outcomes we saw a case of that nursing home in connect. there is a push to get boosters more broadly distributed the immune is almost immediate so you can put a lot of immunity

quickly, by convincing people who have had two doses to get a third when they're six months out. >> if that's the case, if people who are quote fully vaccinated but you got their second shot six, eight months ago, don't have much immunity over the designs around if you are a actually vaccinated or those out of date conferences people will be going be the boosters haven't been broadly available for a long period right now so you need to get people to get them eventually the definition is probably going to be reconsidered at some point i don't think it will happen during this delta wave i think this is something that will be reconsidered over the summer going into next fall.

so, the reality is people with three dose were vaccinated eight months ago, nine months ago, those individual aren't nearly as well protected right now. >> scott, thank you. always good to see you. >> thanks a lot. when we come bk,ac breaking jobless claims do you that back after a quick break hat tom? yeah. he comes in to recharge, get software updates. you know. let's go!

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breaking news, initial jobless claims for the tweak of november 13th well they moved up 1,000 until we get the revision. last week it was 267,000 right now the new number is 2 skieth,000 and as if on kwurks revision of 269,000 which actually makes this 1,000 lower and it still makes at this time post-covid low by swapping\thos revisions on continuing claims 2 million 80,000 and that usurps a couple weeks ago when it was 2 million 101,000 to be the post-covid low or revisions to last week moved it to 2 million 160,000, 2 million 209df 209,000. those are a lot of thousands if we look at the philly fed index. this might be the most important number of all, a november read expecting 24 zoom, zoom, zoom, 39

39 39 is the highest since april when it was 50.2 and that was a 48-year high let's put it another way, joe? if you look at all of 2019 pre-covid, the highs for philly was 17-and-a-half i believe it was in may of 2019 so these are really strong numbers with regard to philly. we see interest rates as you pointed out earlier, hovering around that 1.60 mark. i think the most important news to pay attention to is twofold first john deere strike envy why is that important? have you looked a in the contract, unbelievable 8500 immediate bonus they get two 5% jumps in the odd years. three 3% jumps over the next six years and incentives for performance a. juicy contract. shows that the biggest cross on anybody's balance sheet is the people that go in and out of the front door every day and go to

work so labor costs going up. all of a sudden left, center, right. mostly now i'm hearing the left joining the right in this course, don't ignore inflation boy, i have a feeling that the -- biden's pick is getting awfully close. back to you, joe. >> interesting annals about the absence of the bond -- on the dust bin of history there, they went away with the eight-track tape, but the person that wrote this said that they're not gone, there's just, they can't make any money in it. >> they can't go away. you can't fight the fed. >> the opportunity is they used to make money. not with the fed is this involved they have been silenced? >> squished. >> joe >> what was great about the article is it didn't just talk about the issues with

post-covid they brought it all the way back to the credit crisis, which is the appropriate thing to have done we never, we never really reversed some of the issues from the 2007 to 2010 era yes. the signals are so cloudy, no matter how thick your glasses get, even chubby burns glasses, you can't see those signals anymore. >> steve, i didn't introduce you. in the run, it says leishman data again which when i look at it quickly, it says lease mania. i forgot the lease maniacs do crave to see you >> i know. i know it's absolutely. i want to point out that the bond, the ten-year bond had no trouble running from 90 back i don't know in the middle of the crisis back up to 160 over time? i feel like it's the ability of the market toexpress itself, despite what the fed is doing is a little under rated

i think when the market wants to say, yields should be higher it can go higher programs not amplified or volatile it would be if the fed were in the market i think if you go back to that's a daily term if you go back a year on that 10 year, yields were down, very low, ridiculously low. then they came back. look at that pretty well, pretty easily when the markets wanted to express something so i think you got to be a little careful thinking the market can't do this the fed is in there. it's buy figure substance. by the way, the fed said it's coming back out. it has a modest rise in the ten year so i'm curious as to why that would be if the fed is seen so depressing the ten-year yield. >> so steve, would you say the price of discovery is still okay and, rick, you probably don't really believe the price of the discovery mechanism is working is that the point you are making are you guys on different sides of this? i hope not i hate to see you guys go at it.

>> yes, we're on different side, joe. the price of the discovery process is broken i don't think it will ever be fixed. he is right. there is a pulse there the problem is that the body is in no condition to get up off the table and actually do any strenuous exercising >> rick's got some good analogies. >> can i say one thing before we go, one thing about these jobless claims, which is when you look at this data, you've had an awful lot of people come off of government assistance this time last year, 21 million americans were receiving jobless benefits that number has come down from 12 in september. what i like about this number is that you still seem to be doing okay on retail sales is that we've made, you know, it's like one of those things where you move a block, it goes down, you know, it seems to have sustained itself in the spending despite the absence of government assistance here i think it's a good sign for the holidays all this stuff i am hearing from macy's you guys had on earlier from walmart, this big change

seemed e seem able to get the supplies and the good needed for the holidays i do not believe at this point, joe, my official estimate is that the supply chain grinch is not about to steal christmas >> okay. rick, are you satisfied? are you satated? >> i think so did you see president joe driving that hummer suv electric yesterday? >> i did >>boy, oh boy, that guy knows how to, he should be drag racing cars i like big engines, cars fast in the quarter mile i think he needs to compete. >> he is always. i saw an article and actually someone was joking about it. it was pulitzer prize ready talking about how joe has had, president biden had a love affair with cars his entire life i think he was in a corvette.

>> correspondence dinner yellow corvette, when they first came out 2014, the c-7 he was driving that although, they wouldn't let him outside the gates. >> yeah. i love cars, too no one loves them more than you, santelli, now i am realizing why you are bringing that up >> pardon. >> have you tracked it zero to 60 in 21 of those teslas they move pretty good, those electric cars. >> they do i don't hear anything. to me it's all about the noise >> people say that about the show sometimes, it's all about the noichltz we get it going, all right. you two didn't to verifies, very cordial today. it's a morning show, that's probably better.

what is that >> i was shaking hands i over here. >> be careful with those hands >> brady bunch in the squares. >> i think they call it ludicrous mode that's what we're talking about, right? i think the show is sometimes worse, ludicrous mode. we want to get you caught up on some of the big top stories we're watching this morning. rick ashrewd to, works at farm equipment giant deer approving that new six-year contract and ending a strike that began over a month ago. employees rejected two prior deals and we will show you where they stand right now but if you are looking at them improved upon this news, meantime, best salled chain sweetgreens set to make its debut under the ticker sg the company priced shares at $28 each it was above the expected range of 23 to $25, sweetgreen's

founders joined us earlier on the show here was their message to investors. >> there is such massive wide space to what we are doing there is a complete shift how people think about food, the health perspective, sustainability perspective, wanting to connect with brand that stand for something we believe sweetgreen is positioned at the center of this movement >> his first deal this morning, blackstone acquiring shape wear brand spanx for $1.2 billion the news of the morning, opa win free, reese witherspoon and bull marketable founder are joining blackstone in investing in spanx. oprah helped pit on the map when she named at this time favorite product of the year. blackstone acquired the studio and blackstone fading out bull marketable if 2019 before it went public earlier this year. puts it altogether i did learn at the time when we first reported this, the becky, i said i wasn't sure if they were just investors in a blackstone fund that invested or

if they were actually co-investors in this deal. they are co-investors independent of any fund. >> they're putting their own money to work in making the decision themselves. that's interesting it's a power crew to say the very least when we come back, we will get jim cramer's first take on the trading day ahead. we will head to a break right now. while we do, let's take a look at some of the biggest names that reported earnings this morning. ali baba down 6.4% macy's, the big winner kohl's reporting much stronger earnings that had been expected. uppy 8 .8% and jd.com up 3.4%. this is cnbc stay tuned stay tuned

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. welcome back to "squawk box. i want to continue our conversation the next guest is santa is coming to town we are joined by kirby client portfolio, good morning to you santa is coming to town. i like that. we'd like to squeeze higher if we could the question is where and how and is it going to be bod based? >> yes, so thanks for having me, andrew i think that santa is coming to town investors continue to have high sentiment in the marketplace, we see we are flirting with all-time highs today how does it come to town it's in corporate earnings, they have been strong you seen that in results posted

today and in q3, 2021. what we've seen is sure there are some worries and certainly there has been dysfunction in the government today certainly dysfunction within certain areas of the market and volatility within tech. overall, corporate earnings are good that's is what santa is coming to town means in december. >> this is a month or two call out. how do you think of the world 12 months out from now? >> 12 months out from now, the economy will be good we have been out there at large talking about being optimists in the marketplace. the economy is pretty good you see that in quick rates. people are optimistic about their perspective on the future and investors at large, if they're looking at 12 months out, we think the economy will continue to remain strong sure there is some consternation with the fed, but general market, are

well suited to move hire at reasonable valuations relative to tech are going to perform well in a nautical basis over the next 12 months or so >> can i ask you about those growth stocks? a lot of people are looking at the rivians of the world, the lucids of the world saying, boy, does this feel frothy? we were debating yesterday, this is the question. is this 1996 or is this 1999 if it's 1999, you might have 12 months ago, 1996, you might have a long runway? >> yeah i think with growth stocks, have you companies trading right now, they're infinity, they have zero revenues is absolutely concerning but it's not the total market, itself it's certainly not mid-capital sairks small capitalization and value stock. so while tech you know can receive lumps of coal during the holiday over the short term, we

don't think that will be necessarily broad based and cause for true concern over the long term because general economics remain good. even though consumer sentiment has taken a hit with inflation, investors are ready to spend you have higher saving rates, people desupply supply chain bottlenecks and certain goods not available on shelves, people are ready to spin in the marketplace today and people want to get out there, live life again? we think the reopening will be great. >> if you are right, a lot of folks think the financials are where you should be putting your money right now. the question is how to think about the space. it's not one monolithic space? >> absolutely. you are correct. within financials, we're keen on the asset manager space. i'll give you two ideas and names we have been invested in for quite some time we think have a runway for further growth the first within financials is

not really your traditional banks. that will be janice henderson group. we think this is an organization that has no strong markets in the areas where they compete while they have, you know, a clear path towards reducing outflows and a great distribution team. they're well known it's one of the names out there we think has a real ability and strong profit margins and that will continue to do well that doesn't fit into your bank or financial pace people are out there talking about. second another asset manager is affiliated manager's groups. that organization in q3 posted $3.3 billion in net inflows. there they have gained strong profit margins too as well there is an organization that pushed and they completed an exciting investment in pardonasis and have a great management team. those are two financials there

we think are poised to do well in this marketplace. >> you own a bunch of reopening stocks, including the cruise lines. i am curious how you are thinking ability unfortunately what we are seeing i hope it's a mini wave. i don't know what it is, additional wave of covid cases both in the u.s. and elsewhere abroad, whether you think that changes the trajectory at all? >> you know, look, the covid cases and the delta variant and others around the world, we have an uneven distribution of covid-19 sort of around the globe. but what we have seen is that bookings remain high when you think about people that within the great resignation, retirees are coming out right now within the marketplace, those people still want to do cruises and they're willing to book well out in advance that's something that gives us a lot of solace in holding these names. sure, there will be questions

about reopening the pathway. if you look out one year, two years forward, those organizations will do well in a go forward basis we have to watch the capital allocation and their ability to fund themselves and the debt market because there is cash burn, but they have been very good lately at reducing sort of their expenses in cash >> then i've got to ask you one other. jim cramer loves this stock more than anything. nvidia, near a trillion dollars here. >> nvidia? >> yeah. >> so, you know, being value investors, tech isn't within our core competencies. we're not an investor, and i don't think we have looked at it really lately. i know he loves the stock. i know it has some exposure to, let's say, the cryptom cryptomarketplace, and there's been a lot of bottlenecks within

semiconductors, but i can't comment on its value it's pretty much outside the area of what we do at ariel. >> always good to see you. >> thanks for having me. san francisco, that's where we find jim cramer jim, being out there looks like a lot of fun i've been watching you try some cool thing, some interesting ideas, and the beautiful backdrop once the country comes up but you've been seeing a lot firsthand, the ev stuff we've been talking about that. comparing that to lucid and rivian is something we've been trying to get or arms around it's really hard to make the math work for the valuations that you see in a arrive usage, or something like that based on what you have seen and your experiences, but also how you did the home up did work.

>> the output was one out of every four wants one i think it's regional. every one out of one people want one here the issue is, are there enough the rest of the company, i'm not so sure. they adopt have the infrastructure, is one thing that was pointed out here they talk about the environment, environment and purpose driven you hear it over and over again you start believing it we're so cynical in the east, we don't realize the people out here is they're ruining the environment with the internal combustion engine. people go out of their way to try to save the environment. i'm not saying we're huge polluters in the east. i am saying it is job one out here. >> you have talked but how how you would advice about moving in and out a bit more frequently. they have seen some real big

love they have gotten in the first few weeks. >> i think there's an element of responsible speculation that's almost impossible here there's so much i wish i had gotten tesla-itis. everybody is angry the way to get back at themselves, to stop kicking themselves over tesla is to go buy rivian or lucid. there may only be one, but it's entirely possible that tesla is amazon and there was no second amazon so even though i like all these companies' cars and these look good, the idea of 17,000 reservations for a lucid and you can make 17,000 forwards in a minute and somehow lucid is worth more than ford, but i will say lucid's cars will sell out and ford's aren't.

if ford decided out of nowhere they wanted to be an ev company, they would be worth more if they shut down everything but ev, the stock would be worth more than lucid. so the invests was 7:45 our time, which means you were watching 4:45 your time, are you getting up at midnight >> i had to go over at nvidia at 1:00 a.m. here, just because i found that jensen was on his way that -- it was frightening he said, i hope that helps i don't think -- it's one of the biggest industry that is doesn't exist yet, but i'm telling you it will be it's like i'm listening to the world's fair 1964 when they talked about the picture phone he 's pixie--ish.

he really wants you to go on husband journey, but his journey is some place we're just not smart enough to go to. >> i know you've loved this stock and you're right is there a point where it could be too placy for you >> $10 trillion? >> not too far off >> he's thinking about 2040. he has a road map to 2040245 envisions things like the protein sinthesis industry. >> is he a key man that's maybe a big man that's a factor. can the company envision this road map and move down without him, jim >> no. he has an unbelievable team, but what he sees, for instance, with autonomous driving, they're just

better drivers than we are, so let the avatars do it already. you needed to be a physicist, an artist, you need to be a poet. this man is all of that. he's an architect. he carries himself as if he's just a motorcyclist, not that there'sing in wrong with that. >> "zen and the art of the motorcycle." by the way, gif you'd like to join the new investing club, you can sign up more at cnbc.com/investingclub, or this code on the screen will take you directly there a remind, you can always listen to us live on the cnbc app "squawk on the street" will be right back

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news alert ford looking to get into the chip business, announcing a strategic partnership with global foundries to develop chips for its cars the deal could eventually lead

to joint production in the u.s ford says it could help the company sidestep any future shortages. we know how dear those chips are. >> it's not an easy thing to manufacture chips. >> no. >> we got to go. see you guys tomorrow. "squawk on the street" is next good thursday morning. welcome to "squawk on the street." i'm carl quintanilla at the new york stock exchange. jim cramer is out west at one market in san francisco. david faber is at the media day in new york. we look at futures here, oil with a six-week low for a third day of losses. diverging tech sto