friday, friday, november 19th, 2021 "squawk box" begins right now. good morning, everybody. happy friday welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. and on this friday morning let's look at what's been happy with u.s. equity futures. yesterday the s&p and the nasdaq, actually the nasdaq 100 too all three of them set record closes the dow was down by about 60 points. week-to-did date the dow is down, indicated off .6%. this morning more red arrows for the dow. it's indicated down another 87 points s&p down fractionally, the nasdaq indicated up by about 67. if you're watching the treasury

market, at least right now, you're looking at the 10 year yielding 1.55% and crude something to pay attention to it's been a down week for crude prices, too. it's the fourth week in a row we've seen crude on a steady decline, right now down about 1.7% but you can see the slide the last couple of weeks especially. andrew let's get to the late night drama joe mentioned in washington, house minority leader, kevin mccarthy holding the floor for eight hours and a half, delaying the vote on the president's social spending plan ylan mui join us with the latest did you watch all eight hours? >> no. did you? >> reporter: i can't say i watched all eight hours but a good portion of it now after that, democrats are finally hoping to pass the social spending package in the house once lawmakers reconvene at 8:00 a.m. after pulling the all nighter. kevin mccarthy did set a record

for the longest speech ever delivered on the house floor he started at around 8:30 p.m. and wrapped up less than an hour ago. technically members are allowed one minute of debate -- >> it's the longest one minute ever given in this body. there's a reason why this is a tipping point. this is a point of not coming back from. the american people have spoken. but unfortunately, madame speaker, the democrats have not listened. >> reporter: democrats have struggled for months to unify their caucus around this bill. moderates were holding out for a cbo score which was finally released yesterday it found that the package would add $367 billion to the deficit over the next decade but that projection does not include any additional money from enhanced irs enforceenforcement.

the cbo predicted that would raise $127 billion on nest net but if white house argues the number is more like $400 billion moderate democrats are split on the social spending bill that was enough to win over representative stephanie murphy last night she called the bill fiscally disciplined but democrats lost at least one member, representative jared golden who said he plans to vote against the package because of the increase in the cap on state and local taxes is for billionaires and there are more hurdles and potentially long floor speeches when the floor reaches the senate guys. >> the drama the drama. so in terms of timing and what comes next, how does this work >> reporter: yeah, so they're going to come back into session at 8:00 a.m., they have to take i believe a procedural vote before they get to the final vote on the package, but once it passes the house, it goes over

to the senate. there we know that joe manchin, kyrsten sinema, they have concerns, progressive democrats also have concerns with that s.a.l.t. provision so we know there are going to be changes and once they make changes in the senate it has to go back to the house for another vote they're hoping to get it passed by christmas but we'll see. >> i have one other question how right or wrong typically is the cbo? has anybody ever done a look back to see what the projections that the cbo has historically made and where they often landed oftentimes five, ten years later? >> i don't know the answer to that question, andrew. i know there obviously were a lot of concerns that the cbo was miscalculating how many people would sign up for health care under the affordable care act, that was a big point of contention for democrats i think this piece in contention now around the cbo score and the

irs enforcement that has been known for a long time that discrepancy was coming there are big debates amongst economists about how much money you can raise from increased irs enforcement. i think it's an open question because we haven't seen that level of investment in the irs so we're trying to project something that hasn't happened before in history. we'll see how it plays out and if cbo has to adjust baselines in the model in order to keep up with what the reality of those investments might be able to net. >> it's been pointed out a lot that the cbo is obliged to take at face value what they say, regardless of the tricks of the way you hide the costs the penn wharton model is

4.6 billion, because you have programs for a year or two, but ten years of tax revenue, none of the programs likely to be phased out there's another model, the committee for responsible federal budget pegs it at 4.9 trillion, so arguing whether the irs can get a couple hundred billion. it's either 4.6 trillion or 4.9 trillion one op-ed, this is the journal, this is the most dishonest spending bill in american history. you're right, mccarthy set a record the previous record was when speaker pelosi was minority leader in 2018 and spoke for over eight hours i think mccarthy set the new record last night. and you're supposed to speak for a minute i couldn't help but laugh. they call it the magic minute. >> the magic minute. >> yeah. the magic minute just that phrase makes me laugh. i'm not really sure.

the maimamagic minute. >> reporter: we have control over time in washington. you bring up a point, the cbo has to go by what's in the legislative text but democrats are clear part of the strategy is to get some of the programs started, hope they become popular with the american people, see if that happens and have them continue permanently that's the stated strategy you're right when you say the cost over the decade may be well above the, you know, 1.75 trillion cost and then the 367 billion that it adds to the deficit, it could be much higher than that if the programs do continue for a long period of time as democrats are hoping they will. >> five-year deficit 1.5 trillion without additional tax offsets, according to those things. all right. thank you. becky, you said friday,

andrew -- we can't say friday enough is it -- >> because it's fri-yay. >> it's a good day >> we're one day closer to the food coma, the turkey coma coming up -- >> next thursday. >> which i just found, did you know chicken has more l trip a fan than turkey? >> it's not the transip ta fan, it's how much you stuff down your throat. >> are you speaking to me generally? >> no. people people get tired because they eat too much >> it may be the carbs, joe. >> potatoes, stuffing, all that stuff. >> i'm looking at you, becky and you're looking at me when you say it's what you stuff down your throat. >> do you remember the old days, i would have made a joke about

the magic minute i can't, though, i won't new this morning -- >> heard that, huh >> yeah. i learned. finally learned. it's not worth it making a joke. new this morning, austria announcing a nationwide lockdown on monday and impose a covid vaccine mandate next february. the first such lockdown in the european country since the spring and the continent's first national vaccine mandate, most aspects of public life in austria will be suspended for at least ten days the country tried to lockdown for just unvaccinated people but it did little to curb the infection. only supermarkets and stores selling essentials will be allowed to remain open andrew coming up after the break. we'll talk apple and talk a little bitcoin that's been sliding all morning.

apple shares rose yesterday after reports said the company was moving forward with an electric car dan ives is going to join us looking at the sector next inusthen later dick parsons jos squawk returns right after this. ebenezer. ebenezer. ha ha ha ha. marley? first you will see the past. excuse me! coming through! ugh! and then...the present.

and finally, ebenezer...the future! introducing the all-electric eqs. happy holidays from mercedes-benz.

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! ♪ ♪ xfinity rewards are our way of thanking you

just for being with us. enjoy rewards like getting illumination's minions movie on us. xfinity mobile benefits. exclusive experiences, like the chance to win tickets to see watch what happens live. andy cohen: hey! it's me! and tasty recipes from bravo's top chef cheftestants that'll have you cooking like a pro. the longer you've been with us... the more rewards you can get. join for free on the xfinity app. our thanks. your rewards.

welcome back to squawk apple shares ending yesterday's session nearly 3% higher after bloomberg reported the company pushing forward development of an electric car. the reports saying apple refocussing its project around self-driving capabilities with a target date of 2025. i spoke with apple's ceo tim cook and asked him about the future of apple's car last week. >> i am so curious about your cars -- or about the expectation of cars. is there anything you can tell us >> no. you know, we -- we try not to talk about the future too much because we've got so much going on in the current day that we try to be secretive about the future so i don't have anything to share today it wouldn't be us if we didn't keep something up our sleeves. >> that may be what was up his sleeve we'll see. the report yesterday sending

shares of rivian, ford and gm lower even though any apple car is far from production in the sector is unclear. joining us with a closer look at the e.v. stocks, dan ives. this morning he raised his price target on tesla to $1,400 from $1,100 i want to get there in a second. but i want to get your reaction to the report about this apple car and perhaps the most interesting element, not that it's electric, that's the no brainer part but the idea it would be a fully autonomous vehicle. do doable >> it's a matter of when not if apple comes out with the car we thought 2024, 2025. if you look within cupertino, that's a full part of the technology that cook is focused on and we believe this could add $30 a share to the story in

terms of the sum of the parts to $5 trillion market over the next decade apple is not going to look at this from the outside. >> but your sense is that this is a company that has obviously never made a vehicle before, they could get to fully autonomous vehicles, basically as fast or faster than the others >> i think they're very advanced when it comes to autonomous and fsd. i think that's something underappreciated by investors. we also think right now, there's a 65% chance that apple does this alone in terms of a car. there's an 85% chance they do it with a partner the likes of a vw, ford, an e.v. player or others so i think it's something that's going to really change the industry could be a watershed event but we view it as when, not if, apple goes down this path. >> so let's talk about the implications of that relative to this new price target you put on

tesla. $1,400 how do you get there >> we view this as a $5 trillion green tidal wave what's called tesla in our opinion is going to have roughly half of that, 2.5 trillion china continues to be the big thesis, that's a 50k per month run rate that's the change here in terms of the price target. more and more bullish into next year because of china. that could be $400 a share of the story which gets us to $1,400 price target. bull is 1800 bull were bear, it's emotional right now because of value weighs we view it as a golden age for e.v.s with tesla leading the way. >> when you talk about the $5 trillion opportunity, is that the idea -- when you -- how do you get to the 5 trillion number let's start there. >> it's a conversion today 3 million cars of 100

million are e.v.s we think that goes to 50 to 60 million as we get into the latter part of the decade you look at that conversion opportunity plus the software services combined, that's 5 trillion, based on our math. you look at gm, ford with the jump ball they're going after, it's that ev conversion, i used the biggest -- i view it as the biggest change to the auto industry since the 1950s. >> you're thinking just vehicles not putting into the calculation, solar, batteries, other things, in terms of, for example, your tesla calculation? >> that's the added. we look at some of the initiatives, that would be incremental. i'm looking at what we see today in terms of overall e.v.s and where tesla is at least in the e.v. land it's tesla's world, everyone else is paying rent. but it's not a zero sum game we're seeing a massive

inflection in terms of e.v.s going into next year there's going to be many winners, gm and ford included. >> rivian and lucid are on the screen next to you right now do you want to own those stocks at these prices? >> this gets to our point some could say it's a bubble or expensive. i view it as the early innings of a massive growth. look at lucid, that's the next golden child of ev in terms of the vertical integration how they're going at it. and ultimately when you look at some -- more and more of the e.v. focused players like a rivian, investors right now in e.v. landscape, they're looking for the next tesla you're not going to find the next tesla but how else do you play what we view as the 2.5 trillion not owned by tesla? >> do you think there's going to be consolidation in the space? part of me looks at the valuation of rivian or lucid and

says maybe they should try to buy gm or ford >> i think right now gm -- specifically gm, i think it's one of the more underappreciated stories in the market. i think it's a $100 bold case going into next year it's a re-rating story in the e.v. perspective to some extent, i view it on the offense. in terms of consolidation, i see more as we're talking about apple, technology in auto. there's a convergence there, software services. i think you can see a lot more consolidation going after this, especially on partnerships >> okay. dan ives, always good to see you. fascinating perspective on all of it. have a great weekend thanks. >> you too. coming up, social media crackdown. a new coalition of state attorneys general is launching an investigation this time into instagram. details next. as we head to break, check out the price of bitcoin, it wasn't that long ago we were mid

60,000 level now 56,7 we'll talk more about crypto with the ceo of microstrategy, michael saylor 7:45 eastern. keep dreaming. [coins clinking in jar] ♪ you can get it if you really want it, by jimmy cliff ♪ ♪ [suitcase closing] [gusts of wind] [gusts of wind] [ding] i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so... ...glad we did this. [kid plays drums]

life is for living. let's partner for all of it. i'm so glad we did this. edward jones

as an independent financial advisor, i'm so glad we did this. i stand by these promises: i promise to be a careful steward of the things that matter to you most. i promise to bring you advice that fits your values. i promise our relationship will be one of trust and transparency. as a fiduciary, 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

tiktok usage is spiking among young americans at the expense of instagram that's according to a new survey this year 63% of americans between the ages of 12 and 17 used tiktok on a weekly basis compared with 57% for instagram. that's a flip from 2020. when instagram led that demo

with 61% to tiktok's 50% last month mark zuckerberg called tiktok one of the most effective competitors that they have ever faced. i can't choose >> can't choose what >> between the two i'm here, i'm there. >> what about snap are you not on snap? >> snap? is that the one where it goes away right away where you can't get busted or something. that might be good for me. >> no, you just think it goes away people can take a picture of it, share it quickly. >> you know what i'm on andrew >> what's that >> draft kings i'm on. and cbs sports trying to find the answer. trying to find the way you can do this successfully i'm not sure it can be done. i'm really not all i know is i can't believe how they -- there must be algorithms that figure out

spreads and what happens and then you know what dictates? luck it might be better to just pick something based on some cosmic. >> color of the uniforms, i like that city the best. >> darts >> like picking a horse because it means something to you from earlier. >> so you're really bad at it, huh? >> i'm what? >> you're really bad at it, huh? >> i've broken even almost this entire year. i told you that. >> flip a coin. >> yesterday i actually made a -- we don't want to -- i made a $2 bet i've made a bet as low as -- >> go to the penny slots yet >> i went to the supermarket and bought a filet for dinner, i'm worried about this -- >> i know, 25 bucks for a stake. i saw the same thing at king's >> the meat prices are up there. and now i know chicken has as much triptofan, so not my fault

i nap so much. in the meantime a bipartisan coalition of state attorneys general will investigate how instagram attracting young people eight states are leading the coalition and say they have the support of many more it comes after sustained scrutiny of the psychological effects of social media on teens. a spokesperson said the investigation was premisesed on a misunderstanding of issues that also affected other social media platforms. we'll see. when we come back, house minority leader, kevin mccarthy held the floor for eight hours overnight delaying the vote on the president's social spending plan where things stand straight ahead. and as we head to break, a look at yesterday's winners and losers nvidia up by 8.3%, leading the day.

hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this. your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, like asap! so basically i can pick the right plan for each employee. yeah i should've just led with that. with at&t business. you can pick the best plan for each employee and get the best deals on every smart phone. reducing our carbon emissions to net zero may be our biggest challenge yet. there's no single action

that will lead us to carbon neutrality. but there is a single source of essential sustainability intelligence. s&p global sustainable1.

good morning, everybody. welcome back to "squawk box. it's friday, and right now it looks like the dow futures are even under more pressure than they were half an hour ago right now dow futures indicated off by 145 points. this is the second down week in a row for the dow. it's on pace for another down week after being down yesterday. s&p closed at a record high, indicated off by 5.5 this morning. the nasdaq is indicated up by about 63 chi chinese electric car maker xpeng revealed a new truck overnight the company did not release pricing but said the car will be equipped with an advanced assist system which will be capable of

some tasks such as switching lanes. and shares of salad grade sweet gren yesterday the stock su surged after opening at $52 and then closed at $48.30. i think i've had their best salad, joe, i don't know if you experienced the sweetgreen phenomenon yet >> it's different than chopped. >> yes i'm partial to sweetgreen. >> really? >> i was a chopped guy because that was in my neighborhood originally and then sweetgreen arrived and i figured it out. >> can i get something bad for me at sweetgreen >> you can. >> you can get lots of ranch dressing. >> did you see what dom tweeted out yesterday? >> he tweets a lot of stuff. what in particular >> a picture of a big bagful of

sliders. >> oh, where did he get that where is there one around here >> i don't know where he got it. he tweeted it out said wow. >> and you were jealous. >> i said, really, dom but a picture does say a thousand words it did to me anyway yesterday. >> launched a thousand taste buds. >> that's what i'm talking about. i can't get a slider at sweetgreens? >> their salads are good. >> they are? >> the worst thing might be ranch dressing and croutons >> you can get meat, can't you >> you can get chicken i don't know if they do a beef or fish dish i have to do a little salad reconnaissance. >> how do you make a salad have a stock pop 20%, what about a salad does that? give me in a nutshell, what is it >> if you believe this is the

next chipotle or the next starbucks, there's your answer if you don't, you don't. >> what is it in the -- what is it about this salad that you like more than chopped, for example? because chopped has some great mexican stuff -- >> the selection for me is better, the app is better, instore experience is better for me, i'm sure there's other people that love chop more. >> it's not the salad? >> no, the salads i like the salads themselves better >> okay. >> also a little more optionality, you can pick and choose i don't know if you're the person who says dressing on the side you can take things out. >> no garbanzo beans, i have said that. right. what was the shroom thing you saw yesterday? >> some kind of famous salad --

something with mushrooms that i'm unfamiliar, clearly. >> those guys, they kind of look like the guys that would start this company but they went to georgetown. i don't know coming up back to the drama in d.c. the house will reconvene in less than 90 minutes after a marathon floor speech by minority leader, kevin mccarthy, that delayed a vote on the social spending bill more after the break i dvred it, i can't wait later a major new invester, the ceo of sierra space and the man leading a fund-raising round in the company, bill ford. remember him "squawk box" coming right back bill

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! 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.

let's talk now about the president's build back better social spending package now set for an 8:00 a.m. vote when the house reconvenes after late night theatrics by house minority leader, kevin mccarthy. the cbo said the bill will add to the deficit, but the white house disagreed over that, the amount of revenue that could be

raised from irs enforcement. that's not the only thing there's disagreement about republican texas congressman jody arrington joins us and democratic congresswoman gwen moore, both served on the house ways and means committee in addition people point out if you have, you know, ten-year tax provisions but you're only taking into account one or two years for the -- these new programs that's disingenuous because they're going to be extended so actually the cost is way above 1.75 trillion. penn wharton puts it at 4.6 trillion committee for responsible federal budget puts it at 4.9 trillion why don't we talk about what we're really doing to the american people? >> what we're doing for the american people is making an investment this is the way we do budgeting

in the house when we passed the tax cuts and jobs act, the republicans tried to extrapolate from that that there would be benefits down the road outside of the budget window we are saying that if we provide pre-k at this point, that's not spending, that's an investment that we will benefit from our future workforce being educated. and so it's just a different way of looking at it you know, the child tax credit it's a tax refund to working families we're looking at providing pell grants to people who will benefit from higher technology manufacturing that's going to be -- that's part of the infrastructure bill as well as the build back better, it's a companion to that piece. so we see these things as investments that will pay off. now many of them will pay off beyond the budget window

>> congressman arrington, it's very -- we're in a strange political environment here, because we do see certain polls that seem to indicate that the american people are uncomfortable with the direction of the country but the most recent poll asked specifically about the build back better plan, i think it was like 58% were in favor of it. how do you figure that out how does that make sense >> well, they have to cut through the noise and, as you called it, the disingenuous scoring. i think it's misleading to suggest that this is just going to create a $300 billion deficit. the promise was that it would pay for itself, even cbo, with the washington accounting g gimmicks don't have this thing paying for itself. and to your point, these programs will be extended, they'll be made permanent,

ultimately will cost trillions of dollars for folks who are trying to cut through this and understand that these taxes will ultimately depress wages further. they'll ultimately increase inflationary effects at the grocery store and the gas pump these will drive jobs back overseas, giving americans less opportunity. and when you have millions of people sidelined because of unemployment policies like the enhanced unemployment benefit that pay people more to be out f of work than to go back to work, now you're going to repeal work requirements as you're expanding the welfare state and entitlement programs we didn't even pay for the entitlement programs we have now. we're insolvent in the safety nets of medicare and that's being accelerated by this bill and other programs that we've promised to pay for and deliver

for americans that will be insolvent. this will be a disaster, and i think people are waking up to it that's why virginia went from a blue state to red and you're seeing democrats change parties in states like texas >> congresswoman moore, there are -- another thing to consider is we've seen some inflation we haven't seen in a long, long time maybe it's transitory, maybe it's supply chain induced. we have had a lot of stimulus and some democrats -- do i still call senator manchin a democrat? i'm going to they worry about inflation and throwing more fuel on a fire of an economy that looks pretty good already can you make the case that, like we've heard from the biden administration, that inflation could actually be cooled off if we pass another multi-trillion dollar bill? is that really -- do you really believe that

should we believe that >> absolutely. i listened to all eight hours and 32 minutes of leader mccarthy's speech. and he ranted on about inflation. and, of course, we're concerned about inflation, gas prices, and food commodities not once did he mention what our own congressional research service has done a huge paper on, the inflationary impact of the pandemic, duh, that has disrupted the supply chain not once did he mention that also, severe climate change, severe weather has also contributed to the high-rise in gas prices and inflation is one of these words that really scares ordinary americans this is -- according to i think 17 noble laureate economists, i not being one of them, that this

is actually an anti-inflation bill when you look at the opportunities that we provide to get people back into the workforce. think about the folk who were sidelined during the pandemic. women. who many of them could not return to work because there was no school, there was no child care, and even those folks who -- who could find child care couldn't afford it this bill is going to keep child care at no more than 7% of someone's income so that it can be affordable. how is it inflationary to provide a benefit to folk that -- workers who now have no health care in wisconsin we were one of the states where republicans did not want to expand health care to america's people need support to go to work it costs money to go to work,

you need health care benefits, paid family leave, child care. eight hours and 32 minutes not one mention of the pandemic, which this is very similar to what we experienced when we were in the war in vietnam. this is the comparison to that it's transitory and this bill is going to deliver us from these inflationary impacts. >> congressman arrington, we have trouble -- for some reason we have all these jobs, maybe not enough people for the jobs, there's a lot of reasons for that do you think it's possible if we had universal child care, and it was done right -- that's hard. the federal government sometimes isn't great at doing things. it seems more expensive than it needs to be at times isn't there something to that, everyone could get back to work, free up a lot of the families that can't afford child care or

just are uncomfortable with the current situation, wouldn't that help >> it would help if the american people could keep more of their hard-earned money to pay for child care and other needs we doubled the child care tax credit, but we kept the incentive for work in place. they want to put a trillion dollar tax credit that removes any incentive for people -- able-bodied adults to be looking for work or go back to work. the best anti-poverty program is still a job and we need incentives that pull people up and out of poverty, not trap them in poverty. one thing that i heard ms. moore say that we listened to hours of leader mccarthy and she didn't hear anything about child care i haven't heard the democrats talk about the giveaways to millionaires in blue states like they're doing through s.a.l.t.

cap repeal that's the second largest spending program in their bill they're giving hundreds of billions of dollars in tax giveaways to millionaires. to newspaper organizations to plaintiffs' attorneys people who are making hundreds of thousands of dollars a year, yet thousands of dollars in tax credits to buy electric vehicles so it's -- to me, to wrap the flag of income inequality and economic fairness around a bill where you're giving all these goodies away to millionaires is insulting to working people in this country who are going to get hit with lower wages and higher costs on account of this massive tax and spend bill that's the bottom line. >> i'm sorry, to both of you, but they're playing me out it would be great to have you both back and we can continue this

congresswoman moore, i know you -- it looked like you had a few things you wanted to say in response i try to make it even. we'll see you disagree. >> she'll find me on the floor of the house, i guarantee you. >> okay. it's nice. i think everybody kind of does smile and you're all colleagues. so just like we are here on "squawk box. >> i'd like to hear it here. bring them back. when we return, will inflation hamper holiday shopping and retail stocks a trend we haven't seen since the early '80s i don't think it's leg warmers next we'll talk about that as we head to the break check out shares of sofi chamath palihapitiya saying overnight he sold about 15% of his stake in the company to build up cash reserves "squawk box" will be right back.

flexshares are carefully constructed. to go beyond ordinary etfs. and strengthen client confidence in you. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

. our next guest has spotted a trend in the retail sector he says we haven't seen since 1982. he says people are reacting to inflation by buying now instead of waiting for discounts joining us right now to explain why this is happening and why he has the take on this holiday season he called it the best of times and worst times of retail. 1992, i was thinking leg warmers. are you thinking inflation. >> i'm thinking the end of inflation if you recall. we had seen inflation many years at that point. i remember within inflation, we never got that we were high inflation or we got deflation. i remember 13 years in a row of deflation in the price of goods. but now who i'm seeing is inflation again. i think we are seeing 6% or so

inflation in the kind of goods that i follow. which is basically, as you know, the discounted guys, the retailer and that means regularly we saw it in this 16% growth we saw year over year in okay sales i think 6% of that was six percentage points was in flame i think we are seeing that across the board i don't think it's anything more than too much money chasing too few goods. the classic definition >> yeah, consumers are buying now instead of waiting for discounts later, because they're smart. there aren't going to be discounts later and stuffy one is going to be gone. >> that has been my thieves all along. people are out there buying things they don't really want for more than they ever expected to pay, because a lot of what you want is already disappearing now, will that eventually correct? yes. it's certainly not going to correct between now and the holiday, during first quarter or

first half of 2022 it's probably a second-half story. will it start getting better, post-christmas yes. delivery will start to catch up. we don't see much demand in the spring season. but we're going to see continued problems as long as we have this very high demand level this is not so much a question of, do you have enough of it it's a question of why do people want to buy so much? and i think that's still the revenge of things. we're not doing things we used to do. we're not going out to dinner as much we're not going overseas as much what we're doing is buying in stock. we saw wit home depot, with walmart, with target you have got your watch visas, walmart, target, costco, home depot, which i like watch, would you buy these stocks are they going to manage the issues with affordable cost to bring consumers in and keep margins in a decent place?

>> that's the list that's the five greatest retailers in the world at the moment they got logistic systems and the ability to borrow money, they're all healthy and they can raise wages to people in the store and the end of the distribution centres to get things to you. other retailers will struggle against this. >> what about lowe's they did well, this week there they are home depot's little brother. they did fabulously well it proves you can do well in the home business. we know the customer is switching over to clothes and apparel accessories and shoes, but they're still buying all that home stuff because they're buying stuff off of last year's stuff so home depot and lowes have been doing well they have closed home depot. home depot is still the stronger company. >> thank you for your time i feel we will talk to you a lot

during this holiday season flood to see you. >> bye for now >> will do >> that guy knows the a lot about retail. when we come back, we will talk to former citigroup chairman dig parsons who will talk to us about the next fed chair, infrastructure and inpact first this is big. general atlantic making a commercial investment in sierra space. we will talk to bill ford and the company's ceo, two big hours ahead.

this is lisa. she's a posh virtual receptionist. when you're busy, she'll answer your calls and assist your clients. you can't be in two places at once, wer. posh virtual receptionists. 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! your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire ♪ music ♪ ma♪ dream, dream when you'ren. feeling blue ♪

♪ dream, dream that's the thing to do ♪ ♪ music ♪ when you see value in all directions, you add value in all directions. accenture. let there be change. (swords clashing) -had enough? -no... arthritis. here. new aspercreme arthritis. full prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme.

. zraum in d.c house majority leader kevin mccarthy held the floor for eight hours, delaying the vote on the social spending plan. meantime, the futures are going to an open we will get you up to speed on what's moving the market this morning. a record $1.4 billion in funding for the space station project. we'll hear from general atlantic partner bill ford about that

investment the second our of "squawk box" begins right now. >> good morning, welcome back to "squawk box. right here live on cnbc. i'm andrew ross sorkin along with becky quick and joe kernon, it shows u.s. futures on this friday, friday morning i don't know if the markets will be sitting in friyay down 95 points, nasdaq looking to be 52 hundred, concern over rising covid-19 cases prompting the austria government to impose a lockdown for up to 20 days it says it will make vaccinations compulsory starting february 1st

a countrywide pan date, that news had a negative impact to clear the use for all adults politico reporting that move will come today and the ecb president saying inflation will fade, that the banks should not tune it policy while acknowledging it is painful to consumers she says tightening now will choke off an economic recovery, becky. so the debate over transitory inflation. i don't know if it continues she thinks it's still transitory. >> i guess transitory depends on your dechlths everything is transitory, it was in the myanmar republic, too. it's different definitions of it i think even those who think

it's transitory is encompassion its time line. there is a house vote on president biden's 1.7 trillion spending bill, it's now expected later this morning this comes after kevin mccarthy spoke about the bill, finally finishing at 5:00 a.m. eastern time, ylan mui joins us with all of this. once the dust has settled, i assume they believe they have the votes with some of these last concerns and maybe they aren't going to show up? >> reporter: yeah, becky that's why the house is coming back to session in just about an hour in hopes of finally voting on the signature social spending package. they hoped to get this done last night then kevin mccarthy took the floor and didn't stop for 8-and-a-half hours setting a new record >> speaker pelosi heard enough of how this bill will hit

hard-working americans she came to this floor and directed her members to leave. why are we afraid of debate? why are we afraid to learn >> democrats have already pushed back this vote twice before because of their own internal disagreements, but moderates appear to be mostly on board after the cbo released an official estimate of this pack affect over the next decade it would add $367 billion to the deficit. that doesn't include irs enforcement which the white house said would close that gap. even after the bill faces the house, it would face an uphill battle over in the senate. there is a lot of angst to handle that gap on state and local tax deductions, after estimates show it primarily benefits the wealthy now, conservatives are already running attack ads over this, it's already lost democrats one

vote in the house, representative jared golden, democrats say this is a problem they know they're going to have to fix so, guys, there is still a lot that will be relitigated over in the senate back over to you. >> is there any idea how long the time line is, if it actually passes and makes its way to the senate today if things could come to a stand still there. >> yes, so majority leader chuck schumer says he wants to pass a bill in the senate by christmas. but you know, we've seen how these bills get delayed over and over again and i don't think that either joe manchin or krirs ten cinema feel there is any sort of deadline to close out these negotiations, there is certainly a possibly that this lasts until 2022, but i they lot of folks, maybe some reporters are hoping this gets wrapped up before then one way or the other. >> ylan, i don't know if you know answer to this i'm very serious about this can the person giving the eight-and-a-half hour speech, can he leave for 30 seconds,

about 40 seconds can he just, i mean, are you allowed to do that do you have to >> yoi don't believe so there are several points. >> he fasted before, no coffee, no water, nothing? how does that work >> he drank water. he definitely drank water. >> that's a problem. >> there was actually even one point, not too much, a delicate balance, joe there was a point he asked the parliamentarian, have i broken the record and the parliamentarian, the person sitting in the chair, he could not answer that question because if they would answer that question, that would have broken the length of his speech, broken his sort of speech. >> he's a young guy, i guess >> he was very determined to brick that record that was set by speaker pelosi. stamina. >> now i don't want to know the details. he's a young guy, let's give testimony benefit of the doubt i know in a three-hour show.

>> joe, maybe he did what people do at time's square for new year's eve do. >> my favorite >> i didn't want to think that >> maybe there was a plank et covering her in the black back shelves cold, that would have been me. >> never mind. >> okay. >> thank you, ylaf >> it's 50s, isn't it? god bless him. let's get to dom chu with the morning's pre-market movers. before mcdonald's, manufacture burger king, before wendy's, before in and out, before five guys, before all of those. >> yeah, i know where you're going, i know. >> before all of those, there was a whitey castels, a white castles, was there not in. >> there was in fact it's celebrating its 100th birthday of being if existence. >> is is that where you went >> no, joe, near englewood cliffs, we have a cafeteria and oftentimes they will bring in

food from outside to serve us in the cafeteria and yesterday we got a treat because they brought in white castle so they had beyond meat white castle and regular hamburgers and cheeseburgers as well. i had been requested by some of my friend to bring some stuff for a pot luck so i brought a dozen sliders from white chasm that's what was in the bag that was what i saw in that picture. >> could there be a taco bell day ever >> joe, you and i both know about our love affair with taco bell and things like domino's pizza and everything else. but i have actually been to taco bell recently. so i've gone my fix. it might always be a good thing to have a little of that taco bell >> you know, it is a friday. you can tell us about travel stocks >> i will do that. you mentioned before the austrian lockdown up to 20 days. it is having an effect on our marks here as well, namely the reopening trade.

we will talk about the travel and leisure-type stocks. carnival down in the pre-market trade 2.5% united airlines, hilton worldwide, wynn resorts, oul all hospitality and travel and leisure could have an imback if they go beyond austria and other regions start taking a look at those enhanced procedures to contain covid outbreaks so those names very much in focus for traders this morning also if you go bigger, more macro, what does that have on overall fossil fuel demand oil and gas stocks, expiration countries. crude oil down partly because of concerns of enhanced lockdowns happening in europe. occidental, dimeback and exxon and chevron, keep an eye on the energy complex as well we want to leave with you a positive one here. far and away the best performing

stock in the s&p is intuit shares, it was up 13%. it was up 10% early 80 the maker behind turbo tax, quickbooks, mail chimp, credit karma over the last year or so that company is 13% better-than-expected profits, revenues, upsets forecasts for the year so intuit shares, a big move higher. by the way, if these gains hold in the opening bell, joe, andrew, becky, this will be a record high, so keep an eye on those, back over to you. >> still family owned, by the way. >> yes >> lisa, the great granddaughter of billy ingram is the ceo still and it could go public probably fetch a billion dollars easy some people, i don't think it needs to refresh. >> joe, i got a lot of grief on social media for the fact that apparently it's an unspoken rule that you are only allowed to eat

white castle when it's dark outside. i didn't know this rule. yeah >> i think seriously, what >> who makes these rules >> you have been drinking, you shouldn't be drinking. >> that's what that implies, that it is very good at certain times. >> you shouldn't be drink when its light out? >> maybe that's what they should be saying. >> i thought this was a 4:20 in the afternoon situation. that's what i always thought >> you put oun one of those in front of you, i will eat it right now. it's 7:00 in the morning put a slider here. they're good any time. >> we'll take it >> we'll take it. >> when we come back, if you build it in space or even just plan to, investors will come aerospace raising $1.4 billion in a new round of funding to build a play station it's a part of a project with

blue origin. we will hear from sierra partner bill ford, that's next before we head to a break, though, let's get a check on the markets, the dow indicated down about 200 point. again the last two weeks, the dow has been down, a down week today before these declines. s&p indicated down by 10 it closed at a new record, nasdaq another 63 points after it closed at a record. it closed at a record. "squawk box" will be right back. a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq

♪ ♪ xfinity rewards are our way of thanking you yeah... oh. don't worry i got it! just for being with us. enjoy rewards like getting illumination's minions movie on us. xfinity mobile benefits. exclusive experiences, like the chance to win tickets to see watch what happens live. andy cohen: hey! it's me! and tasty recipes from bravo's top chef cheftestants that'll have you cooking like a pro. the longer you've been with us... the more rewards you can get. join for free on the xfinity app. our thanks. your rewards.

welcome back to "squawk box. new this morning, sierra space raising a megaseries a round a total of $1.4 billion. it includes black rock, making a wonderful largest series a-rounds of the year joining us first on cnbc is general atlantic chairman and sierra space ceo tom weiss, good morning to you, gentleman, this is a massive deal at a big valuation and a lot of real capital going into this. bill, walk us through the investment pieces. >> great, thanks great to be on with you again this morning we couldn't be more excited about our investments at sierra space before partnering with both sierra, nevada, the osmond

family and tom weiss we see a tremendous development in space, the margin today is over $300 billion in size and growing rapidly, 3,000 lower orbit satellites 100 plus launches per year of new rockets. this is a real market happening now. it need capital to execute its business plan. but when you hear tom talk about our transportation business servicings, the international space station and the satellite constellation and longer-term space station business, i think you will see why we are so excited about this investment. >> hey, tom, help the audience understand exactly what dream chaser is and how it's different or similar to the things coming out, for example, spacex and blue origin and the like >> yeah, first of all, good morning and thank you for having us on. dream chaser is a really

revolutionary new space transportation system. it's the only space plane in the world today. it's very unique from the standpoint that it carries such a tremendous amount of both cargo and crew up to the international space station. but also it comes back and lands at any poirpt virtually in the world that a 737 can land. it carries non-toxic fuchl when it land, you can walk right up to it. it's unique in the spannedpoint, it's the only system that land at a runway. you can walk right up to it. the crew can get off of it for experiments, it's important to bring those experiments back in a very timely manner and have them come back into the-at-at a very smooth, low-g ride. and so it's very revolutionary in terms of it capability. >> so what kind of assignments can you capture that maybe a

spacex or a blue origin can't? i know you are partnering in certain cases with blue origin, but what things, frankly, can't you compete for? >> yeah. i appreciate the question. we compete when we vice president people that want to land back at an airport versus being plunged into the ocean we think that most of the people going into space are very excited about coming back and landing in an airport just like an aircraft versus again being put into the ocean and having to be recovered the same thing with cargo. most of the cargo that we see really wants to make sure it has a smooth ride back to earth. these experiments are very delicate the part that is coming back is very dell cattle so it's very important for most of the customers that we're talking to, that have that smooth ride back to earth. so we see that we're very

competitive with the other space capsules, whether it's spacex or boeing or others we don't really see an opportunity. we don't see areas where we compete. dream chaser is actually a product line we start with the crude version. we're obviously on contract with nasa today to supply cargo resupply to the international space station. we fly that for the first time next year. with the investment capital that bill and the team are investing into sierra space, we are now accelerating our second version of dream chaser. which is a version that skaers astr carries astronauts to and from the station. at the statement a nasa security version. so we see this as a full-on product line in which it will grow in capability from the products we have today we think we will be able to service all parts of the market with a franchise business in

space points >> if i could quickly add in, if you think about spacex and blue origin, they're competing in the launch business and launch costs are declining rapidly. that's a real driver market opportunity. we're not competing in the long segment. we're competing in transport, our space plane going up to space and providing a service as well as longer-term the space station or destinations business we're reaching out for experiments for the aeroknottal industry and semi conductor. it's capitalizing on all the innovation and capital that's being invested by both spacex and blue origin. >> tom, this is a massive investment of $1.4 billion that you will go out and spend. how quickly can you get to profitability? how many more raises do you imagine you will have to have before you get there >> yeah. our company today is already

generating revenue and generating profit. so we're already at profitability inside sierra space. this investment of $1.4 billion allows us to accelerate the products that we have in development and capture bicker parts of the market faster so we're working towards already capturing that billion dollar or trillion dollar tab that bill talked about our revenues are around $400 million today and we see a bong-term high growth in our business, where we're capturing again transportation, destination business and also the space application business and growing significantly our business both in the top line as well as significant margin recognition in our company >> bill, when you think about space as an investment thesis at this point how much of it is a b2b play in terms of commercial cargo and the like and how much of it is a

consumer play that you know we see people going up on blue origin or we see people going up on spacex, obviously, virgin galactic is in that business how do you think about those two sides of the coin? >> sure. a great question there i'd say that there is really four segments. we're addressing three of them you talked about space tourism that is an important segment not the largest segment. we're going to go after the other three. the first being the commercial market servicing the space economy that's developing around low urban satellites and the space station. the second is the civilian aviation market. really which is basically space agencies around the worlds want to do exploration and experimentation, new space age right now, they're dock it on the international space station but longer term they recall use our real estate in space i don't want to deny or talk about the national security opportunity as well. we all know about the space

force which was created under the trump administration there is significant spending around this new theater of nasa security operations. i think as a service provider, sierra space is a real opportunity there as well. so it's really a multi-segmented market that add up to what tom talked about, a trillion dollar opportunity over the next decade we want to compete and win in the acb, the transportation segment and commercial as well as destinations and our partnership to blue origin. >> tom, thank you for joining us we'd love to follow your progress come on back for a long time, we thought this was like a dream now it's turning into a reality. appreciate it. >> thanks. we appreciate it thank you. >> thank you >> next. when we come back, we will talk inflation, the fed, markets and much more with former citigroup chairman dig parsons and microstrategy ceo michael saylor will talk to us about

crypt to and what's driving lower bitcoin and others "squawk box" will be right back. it's time now for today's aflac trivia question. hey, coach prime... i think you've got what it takes to wear the aflacket. style, charisma, and a smile, that's a 21 out of 10! [aflac!] you know, aflac can help keep unexpected healthcare costs from ruining someone's finances. check out this coverage... you still got it coach, you still got it! i never lost it! yeah! [aflac!] you see that coverage? with that wingspan i see why you got more rings than a cell phone. there's always room for one more. yeah! get help with expenses health insurance doesn't cover at aflac.com

what if you could have the perspective to see more? at morgan stanley, a global collective of thought leaders offers investors a broader view. ♪♪ we see companies protecting the bottom line by putting people first. we see a bright future, still hungry for the ingenuity of those ready for the next challenge. today, we are translating decades of experience into strategies for the road ahead. we are morgan stanley.

now the answer to today's aflac trivia question. before this week, when was the last time bitcoin traded below $60,000? the answer november 1 you remember back that far him all those two-and-a-half weeks ago. welcome back to "squawk box," everybody. we have been watching the futures this morning the picture has gotten worse for the dow. of course over the last hour-and-a-half or so. right now dow futures indicated down 179 this is the second week in a row the dow is on track after having four or five weeks in a row

higher before that we'll take a look at what's been happening, the nasdaq is indicated up by 64 s&p is down marginally the weakest dow components right now, chevron is standing by almost 2%. j.p. morgan off 1.4% american express off 1.1%. chevron's weakness is probably tied to what you are seeing with the price of oil oil has been down several weeks, too. i think at this point it's on pace for its fourth negative week if you were looking at oil prices, they were down 2.5% earlier this morning we'll continue to keep an eye throughout the morning "squawk box" will be right back. "squawk box" will be right back. >> this is what it's like to have a comprehensive wealth plan with tax-smart investing strategies designed to help you keep more of what you earn. and set aside more for things like healthcare,

or whatever comes down the road. this is "the planning effect" from fidelity. or whatever comes down the road. feel stuck with student loan debt? move to sofi and feel what it's like to get your money right. (phone chimes) ♪ ♪ ♪ i jump up on the stage ♪ ♪ and do my money dance ♪ ♪ i throw some money up ♪ ♪ and watch the money land ♪ ♪ i do my, i do my i do my money dance ♪ move your student loan debt to sofi - you could save with low rates and no fees. earn a $500 bonus when you refi... and get your money right. ♪ i do my money dance ♪ 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!

. offices my largely be empty. many billionaires move to florida. but the power lunch is returning to manhattan robert frank joins us with more. hey, robert. >> remember go, gentleman. less than a third of workers are in the office. the typeing rooms all filling up

again. they are harder to get it's about where you sit, not just where you are eating. the pandemic has property changes. hybrid workweek means they are packed on wednesday and emptier on friday and monday more tables for two rather than 3 or 4, some of the menus are more limited, managers say power launchers are drinking more again. there are restaurants in total to choose from, new york city lost about 2,000 of its 27,000 restaurants. the young elite are actually creating new alternatives like zero bond, where mayor eric adams celebrated his tick i victory. the biggest challenge is stat. it's down 40% from pre-pandemic

levels many top restaurants not opening yes. i will be live this afternoon from one of the top power lunch spots in the 2:00 p.m. hour, on, of course power lunch. >> you are one of them this is there a reason you won't -- >> i will not disclose i am curious to you, what do you think is the top power lunch spot in new york city? >> i defer to andrew or joe. >> you want good food? >> $34 cobb salad at michael's no. >> for me, that's where i used to go. i'm never here that late area. eighth power breakfast i would do >> right now i think it's got to be a tossup between. >> this is someone that knows for sure >> might be mara

mylos, 56th street and they're doing an outdoor of the little igloo things by the way, i like indoors anyway >> you are exposing yourself >> it's interesting andrew ross sorkin didn't say the grille or michael's him i will say one of those restaurants named i will be at this afternoon so stay tuned for that >> hot let me ask you, you say people aren't opened for lunch. you hear complaints how business people aren't going out and doing the expensed lunches which is why there is no money, the places are closed, because they can't find help, it's like the chicken and the egg problem. >> exactly some places that try to open eighth strange phenomena

where we have the commuting economy coming ba back it's only tuesday, twins e wednesday, thursday and wednesday a repeat day as a restaurant can you make lunch work if it's only three days a week. that will be the challenge not just for restaurants, but the computing businesses in new york ci city >> white castle dropped off. >> along with sweet grain, not in the top list. >> someone said, i'm looking no elder to explaining the guessing game seeing where you are sitting. you are right, they are still hot they're closed >> someone said for white castle they now offer beyond meat was it ever? it was always beyond, i'm

kiting all right. >> we're looking forward to seeing you, robert at the restaurant a little later. when we come back. we will talk the fed and all about it with dig parson's, the city citigroup chairman on the spending bill expected around 8:00 a.m. eastern time a look ahead of all that as lawmakers reconvene. lawmakers reconvene. we're back after this. 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!

your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

the house of representatives is scheduled to meet at 8:00 a.m. to meet on president biden's social and climate package. the build back better bill after kevin mccarthy held the floor for 8.5 hours delaying that vo vote >> this is the longest one-minute i've ever given it's the longest one-minute ever given in this body there is a reason why. this is a tipping point. this is a point of not coming back from. the american people have spoken, but unfortunately, madam speaker, the democrats are not listening. >> earlier this week, biden

signed the infrastructure investment and jobs act into law. this was a bipartisan win for the president. our next guest, though, says biden is not showing what he calls leadership mocks yip joining us is the senior chairman of group and former ceo of time warner it's good to see you today how are you doing? >> we are all right. >> it's been a while since all of us have seen each other in person we'll take this, we'll take the video for now. dick, let's talk about this. because you when you joined us back in april said you gave president wide an b-plus at that point. his approval ratings have plummeted since then the american people are giving him a 26% o'golf rating. what do you think happened >> well, a couple things happened number 1, afghanistan.

i think the president took ha hit on that he did the right thing in a terribly unthoughtful way. and that played out across the country and people who have been in the service, had relatives in the service had any exposure to any of that or who thought about the united states and the world from being a solid part 7 were all disappointed in the after math withdrawal from afghanistan. i think that took a hit there. se secondly i don't think he is showing the leadership that we need and hope for. he's a very nice guy i think he is headed in the right direction. but i think he is planning some of the parts of his program be

carried by nancy pelosi, showing leadership and others and not really you know sort of getting in there and punching it up with the guy, getting done what he said he wanted to get done >> well, there has been a big debate in this country whether the elections earlier this month were a sign he is not getting enough done or is doing too much i guess that's where you sit what is your perspective on this >> as i say, i think people, first of all, clearly there is a divide in terms of which direction we would be moving in. he is moving in a direction when he ran for office and took office of trying to do something to create a broader safety net, the way i look at it is to do

something between a growing divide i think that's all good. but he, the force of moving in that direction is not what i think it need to be coming from the white house. i think the lessons we just had were the results of to some extent, a little close, results of those who were not in the president's camp to be more forceful or compelling in terms of their architect than the forces that are supporting it. >> do you mean people like the house minority leader kevin mccarthy or are you talking about joe man. in >> i don't know that kevin mccarthy is, well, certainly both seven e kevin is obviously to the right of joe but i don't

know that he show his se a good leader either. he is more north manchin is in a very interesting position, i must say i think politician live for this moment and, you know, who is going to color on him? who is sort of helping him go back into the fold and sort of working through politics i think to put it bluntly, our leadership need an injection of lbj. how do you get things done how do you work with people who want to stake-out a position and leverage their own understanding in a way that frustrates getting people done. this is a tough game i don't know if we have, this is where the b-minus comes n. i

don't know if we have the toughest player out there helping the president and the president helping himself. >> i think you raised concerns about these big billion dollar packages that comes along. it sounds like you are if fave of this one. >> this is a tough pun for me. there is no perfect legislation. i think certainly the infrastructure bill. and frankly most sensible people think it's a good thing. >> it's the first trillion dollar thing to do that lasts several weeks. i actually think that you know the congressional budget office says he will result in this. list call it a quarter of a trillion to 300 billion deficit over ten years i think that mate prove to be

unfounded. i think doing is something about the crumbling infrastructure will lead to poorer productivity than people think. that's a good thing. now this next bill the build back better bill, it's a lot of money. it's a trillion, a billion it knows results over time, an increase in the deficit. that's a bad decision. on the other hand, if you look at the big picture, i am fourth for initiatives that shift more and more into the pockets and hands of those who are on the violent part of the pyramid. i think the biggest stretch of this country ultimately will be the continuing erosion of trust in our government. we got to get that back so the government can grow.

behind that is income and equality we're on a path where the bountdty of our society is being shared or split between haves and have nots in a way you can't sustain over time. so since the build back better bill as it's constructed shifts more away to the havenots. i think it's moving in the right direction. obviously there is no court in there. in general, i think it's a good move >> so dick are you a long-time republican, a conservative when you look and 1.75 trillion. you know how they're doing it. you take two years, you assume a program to be two years and you have ten years of tax increases,

so they'll be extended like so many things, this is the age old argument about where good interpretations lead. if the growth of the economy i know you think this way, or have in the past if the growth is hurt by some of the things that we do in this bill whether it's tax policies misguided or whatever it is. if that puts us in a worst place, how does it make sense to move it to that side of the ledger if you slow down the actual size of the pie is going to decline, when we get wage gains and all these things, you must struggle with that than moving it from one side of the ledger to one side of the ledger come what may? >> well, i do struggle,

historically, i have bee republican-backed since the days of nelson rockefeller. i think the leadership, to answer your question, i don't think this measure is going to be as much as a punch in the nose as some people have speculated the economy is remarkably strong nobody would have intricated we would be moving in terms of growth the way we are coming out of a pandemic. if you look at growth, i don't see this bill slowing it down. i do worry about pure income transfers not adding to growth

here i think there is a lot of transferring money from let's call it one pocket to oanother pocket that not in and of itself will slow down, i hope it causes us to think more how we do go through the presence of allocating among our citizenry, which need, you know, if that need eadjustment the bicker worry to me is what you say, to the extent, that adds to the deficit it's not going to be my problem but what are our children going to do we're still, we haven't stepped up to that and if we go according to that one day.

>> dick, it is great to see you. i hope to have you back sooner rather than later. thank you for your time today. >> okay. niles the talk to you. andrew, we look forward to seeing you >> one of these days, right here, hopefully, dick. coming up, microstrategy ceo michael saylor on the recent move lower after that big move hig higher the dow is now down a quarter of a thousand points.

this is lisa. she's a posh virtual receptionist. when you're busy, she'll answer your calls and assist your clients. you n't be in two places at once, let posh answer. posh virtual receptionists.

. welcome back to "squawk box. we have been watching the futures on this friday morning the picture continues to get redder for the dow the dow indicated down by almost 250 points it was a modest decline at the beginning of our show about two hours ago. now you are seeing that pick up steam. for more on that let's look at the biggest dow decliners. the s&p is down 13 points, the nasdaq up by 66. the biggest declineer at this point chevron down 2.5%. again that has been chasing oil prices, j.p. morgan chase, boeing are three of the decliners. oil prices that probably explains a lot of why you are seeing the big declines at chevron. oil prices, well, we're not going to look at it now. if you were, you'd see it down for wti. it's now four weeks in a row oil

has been down. we're on track for the fourth week in a row. also stay-at-home names higher this comes as we are kind of hearing from austria and other places about the potential for lockdowns again, metaplatforms up by about .6 of a percent. zoom up by 2.4% him peloton which suffered quite a bit is up by 2%, too we'll keep an eye on this, this morning. "squawk box" will be right back. "squawk box" will be right back. (rhythmic electro rock music)

(crowd cheering) - bito, bito, bito, bito! - [announcer] bito, the first u.s. bitcoin-linked etf. i'll shoot you an estimate as soon as i get back to the office. hey, i can help you 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. exploring the heart of historic europe with viking, you'll get closer to iconic landmarks, hash-tag high thryv my friend! to local life and legendary treasures as you sail onboard our patented, award-winning viking longships. you'll enjoy many extras, including wi-fi, cultural enrichment from ship to shore and engaging excursions. viking - voted number one river cruise line by condé nast readers. learn more at viking.com.

breaking news. house democrats return to the capitol. they're about to push through president biden's nearly $2 trillion build back better package. we have a live report from washington, straight ahead meanwhile, futures are mixed right now, the s&p is back on track for winning weeks. but s&p futures are pointing lower, ahead of the opening bell the dow futures have turned to much lower and austria goes back down in covid lockdown, here in the u.s., health officials are set to meet today to debate crazy expanding vaccine booster shot eligibility. we will bring the latest details as the final hour of "squawk box" begins right now!

>> good morning, live from the nasdaq markets, i'm joe kernon along with becky quick and andrew ross sorkin we have red on the screen. the s&p down 13, the dow down 244 points it's gone progressively worse. still managing a solid gain in the tech-focused nasdaq up 68 points. treasury yields this morning right now 8:00 a.m congress is reconveneing we may get a vote on this bill we'll see as we kick, but there are treasury yields. to kick the hour off

let's go over to dom chu with a look at the top morning's pre-markets. >> to your point early this morning at 5:00 a.m., it was roughly implied lower. the dow by 60, 70 point. the incremental news was that austrian lockdown, what happens hypothetically in ace as we it's not severe, but it's enough to push these future itself lower the place you see is more reopening type plays that we've seen perform really well over the course of the last year-and-a-half or so mainly in the financial stocks, financials, interest rate sensitives, feds there as well look at citigroup, bank of america, j.p. morgan chase, each down in the trade, you mentioned those ten-year yields, also

devon energy and exxonmobile, not just oil prices, but the idea that maybe fuel consumption lower a bit for some oil and gas companies. those particular stocks are lower as well. let's take a look at the juxtaposition between reopening-type trades, more covid pandemic-type trade and the reopening-type situations here zoom 1rd which has been an under performer is up about 2% in the pre-market trade, vaccine makers, moderna back in focus, an underperformer as things have gotten better on some of the anti-viral pill front. up 2.5%. peloton is up. that's been an under performer norwegian cruise lines, down there. the popular tickers searched from yesterday's full session, among the top 10, the top one

was inindividualia no surprise there. rivian automotive stays in the top ten as well. week weaker shares yesterday macy's and sweetgreen had big days yesterday, earnings, ipo as always, becky, the rest is on my top ten twitter feed at the domino i will send things over to you. >> thank you very much we will head to washington they are convening pass the build back better act. ylan mui joins us with all of this here we go >> yeah, that's right, lawmakers pulled an all-nighter. but the house is now back in session. they just had morning prayer democrats are praying that this time they will finally be able to pass the spending package we are looking for speaker proceeds to deliver remarks for

the longest speech was broken by kevin mccarthy early this morning. that was the latest delay for democrats. they have struggled to get this package across the finish line in the house remember they scheduled a vote two weeks ago. they had to call it off, moderates were not on board, now democrats appear to have secured their support. top white house officials met to quell any last-minute concerns after they found they would add $367 billion to the deficit over the next decade. after that meeting one of the holdouts stephanie murphy called it silly discipline. she says she still has reservations over the size, but there are too many badly needed investments not to advance it. one democrat jared golden has declared he will not go for the package because the deductions primarily benefits milair millin

a millionaires if pelosi believes she did not have a vote, she won't bring it. >> she won't bring it if she knows she doesn't have the votes. the build back better bill, pennsylvania senator pat toomey on the senate bank committee serves on the finance and the budget committees. senator, it looks like this vote will be taken and very likely passed in the house. that moves to the senate i go es the question is, what happens there? >> yeah, that's always been the question, becky. this doesn't really tell us all that much. not much we didn't already know. i guess it tells us the so-called moderate democrats don't care about the deficit that what really matters to many of them is making sure they have this big tax cut for very wealthy constituents and high tax jurisdictions. they get those things.

and there is so much fiction in here senator manchin is exactly right. the most sensible thing. not that our democratic colleagues will take advice from me the most insurancible thing would be put this off until spring, does this continue spiral as badly as it is now do they want to spend this tuned m kind of money. if the senate produces anything. >> i guess there is really one person to talk to and that would be senator joe manchin he sounds like he's the only one that can answer this it sounds like kyrsten sinema has come a long way and is satisfied. >> i think kyrsten sinema has reservations, joe manchin has major reservations and i don't know how many democrats are keeping a low profile and worry about what they're about to do

this is radical stuff, transformative by design, it's intended to be that is wildly out of step with the democrat's majority. they didn't get a pan date to transform america. joe biden's mandate was to return to normal right? and to be a reasonable person and bring both sides together. he has governed from the far radical left the wharton school says this is $4.6 trillion of suspending. it's all, mostly about expanding the welfare states to the middle class. they got all kind of new programs some don't have any income limitation those that do, it's extremely high you know, this kind of total transformation of the relationship between middle income americans and the federal government not what people are voting on in the last election. >> let's be care they don't care what you think you will not give them the vote.

let's talk about what others may want joe manchin made it clear he doesn't like the game playing with some of these numbers he doesn't like the way they've cut the length of some of the programs and plan on spending it out further. i guess my question is, what do you think would satisfy some of those democrats who raised their voice and said hold off? or do you think there is no satisfying for somebody like joe manchin that he wanted to see before he makes a decision >> i'm not clear it's pretty clear that is his preference, he would wait to put in on hold if he sticks to that, they will put it on hold they won't have the votes to pass it. he has expressed concern about the gimmicks, as you point out i'll give you one example. the cbo score is about $1.7 trillion the child tax credit in the first year alone is $185 billion. they pretend that will go ae way when they have every intention of making it permanent

so that's the difference between the cbo's 1.7 score and wartop's 4.6 score. wharton scores it as it's intended to be, which is permanent programs so for manchin has said, this is a complete gimmick to pretend this will be one year and disappear. if he drills down on that and forces some real accountability there they have to scale it back dramatically you know, i can't be sure exactly what's going on inside his head >> so what do you and the rest of your party do in the meantime >> look, our obligation is to make clear our reasons for opposing this and make it clear to the person e american people. i think we have been having debate for months now. i think it played some role in the backdrop of election just a few weeks ago in virginia, new jersey, and we saw that the american people are not on board on this. we will continue to drive the message, how damaging this would be, how much it would cost to

our deficit, the tax increase. this is a part of the political process. have this debate >> senator, the house has been the more rough and tumble place where people really take opposite side, maybe get into a sort of theoretical battle a little bit more. the senate has always been seen as the calmer place. is that still the case today or there has been so much of a divide in this country that it's you know inevitably in effect in the senate as well >> yeah, i'm not sure i exactly hay agree with that characterization, the house is maybe a little more volatile, quick tore action. that still remains the case. in the senate, there are strong opinions on both sides on this bill then you got a small number of democrats kind of in the middle or on the right side of the democratic spectrum who have

serious heartburn as well. so we'll see how it plays out. >> senator, the nominee, the president's nominee for control of the currency, the first name solay, professor am subpoena orova, got it, a tough question from you, also from senator tester and others. we have a possibility of a decision of fed chair between now and thanksgiving, too? do you think you, is there any reason to think if the president listened to senators warren and standers or womanever, i guess professor amorovo was in the bush administration. do you think her vote is an indication the president will move the left if you consider leal brainard left of j. powell.

>> leal brainard is certainly left of j. powell. i don't want to speculate what they tell us about where they would go somewhere else. i will say it is shocking to me that any administration would nominate someone, let's be honest, her policy positions are socialist positionles. she has had voked for the abolition of banking and the fed replace all banking and advocated for price controls across the economy established by the fed anded a voenled for all policies, she's advocated the fed allocate not private banks. she's carried on how badly the private players allocate capital and resources and why the federal government has to replace that and need to play anthivist role and she is nominated to be the top regulator of america's banks it's shocking. >> senator what do you think of her views of crypto? the reason i ask is, you have a

lot of banks you have obviously been let's say late to the game pushing back against it? so here is a person who you would think would be embracing crypto as something that would upend the banking system if that's her view she seems a negative view. >> so it's not clear in some respects, i have questions on crypto. what i think you can reasonably infer is she would be supportive of a digital dollar provided it is controlled by the fed everybody had their digital dollar account with the fed. the fed would have complete power to pay negative interest rates on your accounts, confiscate some of your money as a routine exercise in inflation control. i think that element of the crypto she would be okay w. private crypt so projects i think she would be very skeptical of >> you are also skeptical of that first part? >> so i think you can make a

strong case for a digital dollar, not retail accounts. the feds should not be the retail accounts for americans. having wholesale accounts, using a digitized dollar, a representation of the dollar that would allow peer-to-peer transfers, building on the platform and innovation from app developers i'm opened to that >> okay. senator, great to see you. we always appreciate it. we can always have smart, intelligent conversations even crypto with you. we appreciate that thank you so much. >> thank you for having me. >> we will continue this crypto conversation in a moment, microstrategy ceo michael saylor will join us we are expecting president biden's fed chair any day most likely j. powell or leal brainard we will talk about what each

choice means for the market. monetaryoly an picd, yes, your money. you are watching "squawk box" on cnbc 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!

at vanguard, you're more than just an investor, you're an owner with access to financial advice, tools and a personalized plan that helps you build a future for those you love. vanguard. become an owner.

welcome back to "squawk box. moderna announced moments ago

that the fda extended booster shots for 18 and older who meet the timing requirements. they will meet to consider approving pfizer and moderna boosters another headline moving in hopefully the direct joe. >> thanks, andrew jack dorsey announced during square's call this month, the company had no intention of adding new crypto currencies to its cash app and would be committing to bit coyne. they are expected to soon publish the latest white paper on bitcoin which has recently come off it's all time highs is michael saylor, microstrategy chairman and ceo we constantly talk about the regulatory overpaying, michael we got some new data points on wednesday, republicans and democrats have different views but all of it looks like there will be more scrutiny. you continue, can i calm you a

stacker? microstrategy is a stacker you added like 9,000 coins >> stocker >> you added 9,000 coins i think you are up to about $7 billion worth. i don't know if i did the math on today's price but out of your spire market cap of $7.4 become for a while in the mid-60, everyone was up. everyone had made money. that's not the case anymore. would you stack right now? would you wait for a further pullback how do you do it >> we're going to keep stacking forever, joe, forever. the issue is crypto is going main stream. we hit all-time highs last week. now there is volatility. inflation has gone main stream and so what's causing the volatility the volatility is driven by exchange leverage. the old coins, some security tone tokens. defy, wash trading

the novelty of crypto and the excessive growth right? that doesn't surprise me i think people have been waiting for clarity from regulators and over the past, we got a lot of clarity a. report on stable coin is telling the world that they want stable coins issued by fdic hypoinsured banks the crenshaw report is telling the world that efi as we know it will not continue the spot etf denial report is telling the world regulators want crypto exchanges to meet national security exchange rules and standard and the infrastructure bill was putting into question state gain and defy now, there is one thing for certain, joe the world wants two things the world wants a digital dollar, u.s. dollar and they don't want 100 billion of it they want 10 trademark of it or 20 trillion. the chinese want it. the africans want it the asians want it from thefdi insured bank or the like the world wants a digital asset

and bitcoin is universally send as that common property store of value. so those two things are clear. everything else is murky the market is trying to sort out what all this means. >> we're getting a lot of do you that points that you said that earlier about inflation, too and gold made a move finally it made some people are surprised it hasn't made more than of a move can you go back a decade probably and where little changed. sit your view that bitcoin has replaced or will replace or is in the process of replacing gold as the store of value for most investors? >> there is a war, yeah, there is a war for non-sovereign bearer instrument store of value. it bitcoin versus silver and

gold and gold's so trillion and bit count is 1 trillion. and it's pretty clear, bitcoin is winning gold is losing of all the commodities the only one that isn't suffer secretary gold if you want to eliminate inflation, build everything with 24 carat gold that won't go up in price bitcoin will continue to struggle, you request move it at the speed of light and the maintenance cost is much lower the custodyial rights are much higher so it's pretty clear that digital gold is going to replace gold this decade >> there are probably some troubling thing in the infrastructure bill about you know how the tax treatment of bitcoin. but it doesn't happen right. do you think between now and when it's supposed to happen that it won't happen or, that's an overhang on the future of bitcoin for being more

a bit totalitarian >> i'm not at all in trouble with what's going on the safe haven is to use bitcoin as a store of value. bitcoin is the only ethical, technical and legal safe haven in the entire crypto ecosystem it's more technically clear because of the proof of mining it's more secure because of the support by the politicians and every jurisdiction it's more ethically secure because it is universally ac nonld as common property so if your use case is to buy a billion dollars of bitcoin and hold it forever in lieu of gold or property or a stock portfolio without all the risks of stocks and equities and bonds and all the headaches of precious metals, then bitcoin meets that use case all of the sound and fury in washington is going to have an impact on security tokens, defy exchanges, crypto exchanges, all

the other use cases of crypto that are not bitcoin and that's where we'll see all of this settle that's why there is volatility right now. >> so if you were going to try to look at the eventual adoption of bitcoin and divide whatever that is by 21 million, what number do you think is realistic in the future? i don't know that people should never try to do a target and a time for when you hit the target because you can't get both right. but you think it's worth a million dollars of coin some day, michael >> the big idea is every currency in the world collapses into the u.s. dollar stable coin and the u.s. dollar is the universal medium of exchange for the world and people seek ac long dated store of value asset, a synthetic asset. they start to demon advertise that second property and demon

advertise gold and an equity index. so what do i expect? i expect bitcoin if it doubles every year, at the end of the decade, it will flip gold and monetary indexes, a little bit of bonds, real estate, equity and emerges as a $100 trillion asset class. so 100x where it is and when we get there, it will be 35% of the u.s. economy the u.s. dollar will probably replace 150 currencies, there might be two or three left the euro, the dollar everything will disappear and bitcoin will be the world's monetary index if you simply want to keep your money and you don't want to express a credit sentiment or an equity sentiment or some property or real estate sentiment. >> what if a country decides china, i don't know how china will react to that scenario or

the united states, is it unstoppable? or getting to that point you just described does it depend on what happens with very powerful central governments? >> i think bitcoin is unstoppable as digital property. i think what you will see is three classes of countries the communist countries that don't give you property rights won't like north korea or cuba won't let you own anything they'll probably ban it. the countries that have weak currencies will have capital controls they will let you own it but they don't want you to exchange it or trade it. it's not illegal to own bitcoin in china they don't want you to move billions of dollars out of their economy. you see a collapse of currencies, like argentina, the face is 200-to-1 in turkey, the lyra is 11. it used to be 1.5. the weak currencies will have capital controls you own its property okay, in the weren't nations

where they have stronger currencies than the u.s. dollar, of course, it will be deemed property you will pay capital gains on it when you sell it, otherwise, it's clear it crossed the chasm, it's universally known as common digital property it's the only crypto asset that has that standing. that's what makes it the institutional safe haven asset in this space. >> michael saylor. you, obviously, you put your money exactly where you believe things are headed with microstrategy. i appreciate you coming on i like, i listen i don't know what to think of all. that is amazing what you described. >> thanks for having me, joe >> you are welcome see you later. >> thanks. when we come back, another week wrapping up in the fraud trial of theranos founder. and prosecution expected to rest this morning

a live report next stay tuned you are watching "squawk box" on cnbc cnbc 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! what's strong with me? what's strong with me? what's strong with me?

what's strong with me? with me! with me! what's strong with me? wi me! with me. at calvert, we know responsible investing is hard. if you're concerned about the environment and climate change, how do you find companies that are driving the right outcomes? if you care about economic equality and social justice, which firms are addressing it in their workplaces and their communities? for nearly 40 years, calvert has delivered competitive returns by investing in companies making a difference. because we see value in doing good. talk to your financial advisor about investing responsibly with calvert.

prosecutors getting ready to finish up their case against elizabeth holmes, the founder of the failed blood testing company theranos scott holmes joins us with where

they stand in the trial. >> reporter: hey, joe, prosecutors have been laying out their case 11 weeks that elizabeth holmes lied about the technology she claimed could conduct a full range of tests on a tiny sample of blood the 29th and apparently final government witness is "fortune" magazine writer who wrote a glowing cover story in 2014. it turns off he recorded many of his conversations with holmes for that story, including when he asked if theranos could perform the same tests on a few drops of blood that competitors used a whole vial for. does your platform replace all of those >> our platform can yield. let me say the best way to say this we can do all those tests.

so we can provide data back to clinicians for all of the tests. t that, prosecutors say was a lie. t he eranos says it can perform a hand of tests and often got them wrong. she will be back today when court resumes in a few hours then it's the defense's turn how will they counter government's case? will elizabeth holmes, herself, take the stand we may be about to find out. joe. >> still a careful answer kind of the i what i heard it yeah, we can provide data about all that none of it's real. but we can provide you can't believe the amount of data we can provide from our single drop -- she didn't say we can provide real data. that's true and actually, wasn't she very guarded and careful the by a she's

i wonder if she knew at that it was just a crock >> well, that's what the government has to prove as she was telling not just journalists but investors that she knew that it didn't work and prosecutors and some of these theranos insiders have said yes interesting, roger parloff did a lengthy correction a year later after the "wall street journal" came out with damaging information. he said she misled me. he specifically said she didn't lie, but those issues and particular questions how many tests could they perform, she obviously obfuscated. >> we can provide data on all those tests, scott awesome. thanks thank you, scott it's just the way i heard it what did she just say? >> joe, the thing is you can say words in a sentence and factually they can be correct in certain ways. >> it was implied. >> it can mislead you.

the second part was she then took that article which clearly was wrong and sent it out to everybody and their brother to raise more money so even if she didn't factually mislead the first time she then misled the second time. >> the question was can you do the tests on a drop that needed a whole vial she says, yes, we can provide data on all those tests, which implies yes, we can provide data that will tell you factual things about what is going on that the other vial. that was not true. look, it's not good, that whole story is not good. >> not a good story. >> not a happy ending as they say. coming up, we're going to talk about what could be the ending of the story around the federal reserve, former dallas fed president reserve president richard fisher will join us to talk about the next leader of the u.s. central bank and we're expecting to find out the big pick from president biden in

less than a week n'obably a lot sooner. dot go anywhere. "squawk" returns after this. a n this broker is your man. let's open your binders to page 188... uh carl, are there different planning options in here? options? plans we can build on our own, or with help from a financial consultant? like schwab does. uhhh... could we adjust our plan... ...yeah, like if we buy a new house? mmmm... and our son just started working. oh! do you offer a complimentary retirement plan for him? as in free? just like schwab. schwab! look forward to planning with schwab. what if you could have the perspective to see more? at morgan stanley, a global collective of thought leaders offers investors a broader view. ♪♪ we see companies protecting the bottom line by putting people first. we see a bright future, still hungry for the ingenuity of those ready for the next challenge. today, we are translating decades of experience into strategies for the road ahead.

we are morgan stanley. into strategies for the road ahead. today, your customers want it all. you have to deal with higher expectations and you have to lower wait times. with ibm, you can do both. your business can unify apps and data across your clouds. so you can address supply chain issues in real time, before they impact your bottom line. predicting and managing operational issues that's why so many businesses work with ibm. (soft music) hey dad, i'm about to leave. don't forget your hat . good morning. how can i help? i need help connecting with my students. behind every last minute save, ok, that works.

and holiday surprise, thank you! a customer service rep is working unseen, making it happen. and at genesys, we're proud to help them help you everyday. . welcome back to "squawk box" this morning by this time next week, we should know who president biden

wants to lead the federal reserve, at least the next few years. biden is expected to unveil his choice before thchlth current chair j. foul and leal brainard. what is at stake with each pick. former dallas president rich fisher, now an ad advisor to barclays, serves on the board and a cnbc contributor, our own economics reporter, steve leishman get the title right. richard, you know both of these folks very, very well. i'll straight up ask you, what is your betting line >> they both are domestically capable. i worked with leal at the clinton administration she ran the cabinet. i was one at usgr. she is smart, able, talented i think the favor still goes, if you are choosing between the two, to j. powell. obviously, they're counting noses on the hill.

this is why it's taken so long i think the president would lying to have leal i think the odds still favor j.. unless there is a third candidate. by the way, i served in the carter administration. i did the briefings for miller when he was taken out of fed into the pressure the e treasury bringing someone from the outside here is a low poeshlths although, it's possible. you don't want to be g william miller as inflation is taking off. i think it comes down to the two. i think powell has the senate. he's got probably tester and one or two others on his side and the nos count continues. that's why it's been delayed i think the president wants to - >> i want to get this to you in a second let me, just speak to this, knowing both of them and knowing what it's like in the room, how do you think they would be

different? >> well, there's, it's pretty formulaic the way the chair runs the committee, going back to alan greenspan but it's also a question of how well you can marshall the different governors who have a constant vote and then the bankers. powell spent a lot of time when he was governor overseeing the banks and courting the different bank presidents and their board. leal has had the same job. so she's done some of that but i think again the difference of mannerism, they're both very capable people but it would be much easier to go back into the split screen. i do think this. if powell is renamed, then i think he will be moving toward tightening sooner than brainard is likely to move. she will be a little bit beholden those that sponsored her, elizabeth warren, the progressiveles and i think she'd be a little more hesitant to tighten the

screws in the light of the inflationary pressure we're feeling. powell i think would teal liberated, therefore, would not be perhaps as long. >> steve, do you agree with that assessment and throw in the news this morning that christine mcguard thinks that inflation is transitory and how that might impact whatever either of them could do >> yeah. i mean, look, richard and i have done this enough times, we're ready to take this show on the road i don't know who is abbott, who is costello here but in any event, i agree very much with what richard said. pardon me. i don't at the margin brainard might be a little bit later in raising interest rates than powell would be. i think powell maybe wants to get back to normal a lit bit quicker. if you look at what brainard says, she's used the same word that powell has used

no one should doubt our commitment to rally fight inflation. she comes from the centrist winf the party that i think raichard came from. i don't think she's an mmter i think that's the choice difficult for the president. there is not that much difference there is no slalom/dunk, the marks must have powell or they will freak out i'm not hearing that from market participants i will say this, i've tried to refrain from political comments all week i want to make one as an outside observer, i'm not sure this is all looking very good for the president. there is annual opportunity to look resolute, decisive inside if you read the piece in politico, he is being very slow, very deliberate, can't make up his mind who or what he wants here, i think he has missed an opportunity to show some decisiveness >> i don't know if abbott and

costello are southern guys, nevertheless, i would agree. >> does that matter, though? this reading the tea leaves of taking the temperature, clearly seems to be going on behind the scenes get there, i don't know if it's his heart, this is according to some of the reporting. his head is saying something else i don't know >> look. if you take, i think steve's analysis is correct. there is not in the president's view probably not much difference fine them therefore, if you take that assumption, you would like to give something to a democrat lael is a democrat i don't like the fact that anybody at the central bank is identified by a political party. i've thrown that stuff away. i've never gone away you are supposed to be, apolitical you do what's best for the economy, period. you use an economic perspective

and your accepts of what is right. i do believe both individuals would conduct themselves accordingingsly. you got to get them through senate confirmation. i'm sure they're testing whether or not they can give it to brainard >> you don't think that brainard can get through the confirmation don't you think clearly both of them, we're not talking amorova here >> if i can add to that real quickly, which is, there is a bloomberg report this morning that we're trying to confirm here i assume it's correct that senator manchin is meeting again, he wants a follow-up conversation with brainard, which kind of speaks to what richard is talking about, whab that they're doing is still counting votes for brainard. sorry to cut you off, richard. >> no, i think that's the case of course, tester is another important voice here

and we don't want to have a failed confirmation hearing. i think it will be very tight. put it this way, it would be tighter with lael than jay jay has ha lot of friend on both side of the aisle. they know him, it'sese dwrer to go the powell route. they will try in the white house to go the brian ard route. we will have to see which prevails that's why it's taking so long it's a nose count. >> and just to steve's point, richard is on this, yesterday, there was a headline that said that joe manchin was in favor, that he thought that powell should be arer renominated that's why you are hearing these reports. >> i heard on wall street this morning about their meeting. so we'll see i don't like this drama. it's unseemly for the fed. i which the president made up his mind, moved quickly. the markets that steve said i think are rested they're not worried about who is

going to get it. we'll have to see again if it's a contentious senate confirmation, that would have market impact. >> becky, there is no time now to talk about this what's happened this morning is fed probabilities of may and june rate hikes are down this morning. but that has everything to do with i think european covid news not to do with brainard and powell >> okay. >> exactly >> great to see you both we will see how this plays out you seem to suggest there is a dark horse out there, a 30 name. >> i don't know if anyone is capable. roger ferguson would be wonderful. again i don't think he's in the mix. there are some capable people out there. obviously, the way the president is working this on the hill, it's between these two people and wee see who prevails >> okay. >> sponsor a great weekend,

guys >> are you going to put joe in there? >> steve leishman. i thought so so marx rogers and hammer stein, steve us and butthead i thought of so many different and possible there is a million louis and clark. coming up, jim cramer's first take on the trading day. tonight on "mad money", don't miss jim's big interview with nvidia at 6:00 p.m. eastern time we take a look at the house floor in d.c lawmakers are preparing to vote on the president's build back better bill. after a long overnight from minority leader kevin mccarthy stay tuned the "squawk box" will be right back. hall and oats.

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! firefighter maggie gronewald

knows how to handle dry weather... ...and dry, cracked skin. new gold bond advanced healing ointment. restore healthy skin, with no sticky feeling. gold bond. champion your skin. dad, we got this. we got this. we got this. we got this. we got this. yay! we got this. we got this! life is for living. we got this! let's partner for all of it. edward jones

all right. let's go out to the cnbc hero in san francisco. we find our very own jim cramer. i was going to talk to you about jeff gannett and your interview yesterday until i heard you got the nvidia ceo on tonight. lert look at the stock over the five months, the one date, the five years, it's such an incredible stock chart what is it that you want to hear from him tonight that you don't already know >> well, look, i think that we're going to hear about the transition we keep saying the semi conductor stock. that's just wrong. it's become something that is the way intel was initial by

when it was intel. so, in other words, intel and microsoft together equal to what i am seeing in inindividual why. there is omni channels for artificial intelligence, not just the term, the way to make people that's way you have to think about it so all the jobs that we can't find people for, we will e people using nvidia's platform that's what i want to look at. we have to use idiom, inference. we speak in strange ways -- go jump in a lake, get out of town. jensen has made it so that machines understand idioms when apple does its car, they're going to have to try to figure out whether them ko compete against jensen >> could we say that a.i. and apply it to the elizabeth holmes interview, to infer --

>> jensen says that his avatars don't get tired. i will try to nail down whether they don't lie, because when you lie -- i'm not going to say alleged, but that book "bad blood" was too good, but when you lie, i think the artificial intelligence will tell you you're going down the wrong direction. driving a car towards the -- the whole healthcare system -- "bad blood" you see how many people she betrayed, and roger parloff is a -- >> i think i'm just thinking about the new avatars, and whether they'll be like dr. spock, data, all of our

modern-day logical, straight, tell it like it is. >> jensen can make it so it's anything you want, but the avatar is a lot smarter than we were. >> make it so. >> they're tireless. >> aren't you pretty tireless? >> i've been accused being something like that by elon musk he's not part of the dialogue this week, by the way, which is really delightful. >> ooh have a great weekend, jim. >> you too. we want to remind you about the new investing club find out more at cnbc.com/investingclub or point your phone at the screen "squawk box" will be right back.

esg is responsible investing. who's responsible for building esg into your investments? at pgim, the pursuit is on for outperformance. as active investors, to outdeliver with customized strategies, integrating esg best practices into our investment decisions. as asset managers and fiduciaries, to outserve, with our commitment to better esg outcomes. join the pursuit of outperformance at pgim. the investment management business of prudential.

you're a one-man stitchwork master. but your staffing plan needs to go up a size. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

we've seen the dow futures move lower, then come back a little this morning. one potential driver, news that austria will reimpose a covid lockdown airlines, cruise lines are lower some of the biggest reopening stocks getting hit and some of the stay-at-home are catching a bit this morning joining us is jim paulson and

joann feeney you gave a good summary of where we are right here. you point out the driver behind edge flation is a strong consumer even with prices going up, they're still buying that means a pretty solid economy. you have labor shortages, which means wage gains, which also add to inflation, but that's good for stocks, maybe, but then again, it means higher rates. >> there's only two recent laze, but for the equity investor, it

means you need to potentially avoid the broad indices. you need to be selective buy properties that can protect against rising costs, and we're seeing some of that among the retail group also look for the strong secular drivers where sales and earnings will grow tloong -- a company like broadcom, qualcomm. there's ways to avoid the plain of inflation, but it does mean being pretty selective that's why we're picking 45 to 50 equities, and being pretty selective about the mix that goes in there. >> also inflates hedges.

so owning some international stocks as that second recovery comes along a bit later in 2022 could be another good source of appreciation in a portfolio. >> what do you think, tim? what's your latest we haven't spoken in a while. >> i think we'll get a correction here coming over the next year, but i still think the market will be higher than it is today a year from now. maybe we touch 5,000 on the s&p, but able we have about a 15% correction to joe an's point we could get one with inflation fear yet. at the immediate moment one of the fourth wave of covid, leading to slower growth concerns, an it's showing up big time with cyclical stocks as of late, returning to growth. what i'm a little worried about is, if covid slows the economy

down again, and then inflation continues to worsen in the reports in the next few months that could give us a pseudostagflation feel that could bring a correction i week -- i think the s&p 500 is going to underperform the broader mark in the coming year, and i take advantage by kind of diversifying away from the large-cap u.s. stocks. >> okay. now we have no time, so i'm going to say good-bye, jim good luck in minnesota i know that's not a great place right now for this latest wave we're seeing. >> it's not at all, joe. >> i hope you're safe, in michigan and elsewhere joe ann, thanks for a quick summary. good to see you both

market is down about 190 now on the dow. the s&p is also not really taking it on the chin as much as the dow, but down a bit. the nasdaq diverging and it's actually up ten-year still below 160. that will do it. it started out as a friday and ending on a friday, which i'm happy about. make sure you join us next week. >> have a good weekend >> good friday morning i'm here with david faber. cramer is finishing up his week at one market in san francisco austria is facing a covid wave, and announces a fresh nationwide lockdown. germany will not rule out one of its own. that's the biggest