the session yesterday. the energy debate, will president biden release oil from the strategic petroleum reserve? new reporting from brian sullivan is straight ahead plus the rising cost of food the ceo, the ceos, in fact, of hormel and jm smucker will join us on cnbc, some of the best known brand, iconic. spanning the globe on this tuesday, november 23rd, "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick. along with joe kernen and andrew ross sorkin. and this morning the u.s. equity futures are a little mixed as joe mentioned. the nasdaq is under pressure once again, down by about 1.2%,

a decline of 200 points yesterday it came late in the session and happened as you saw treasury yields pick up steam. the nasdaq indicated off by about 47 points the s&p is indicated down by about 2.5 points and the dow which was up by only by about 17 points after being up 300 points earlier in the session. it's indicated another 18 points up today the treasury, this was the move happened after jay powell was renominated for a second term as the federal chairman the markets said, great, off to the races and then maybe they rethought about it as it means rates could get hiked sooner rather than later. that's a big move, up 1.637% for the 10 year. friday was 1.58%, i think. it's part of the reason you saw tech stocks in particular sell off. also if you were looking at the

inflation trade people wondering about this, gold was something to watch yesterday too it was down by about 2.5%, the worst day since back to early august, august 6th, i think. >> it was interesting to watch this it was kind of i guess a little bit of a relief at one point for those that think that maybe lael brainard would have been more dovish, although they've been very -- they've been on the same page so maybe it was not necessarily any reason to think that the journal, interesting piece this morning on jay powell that neither one deserved they're very inflation centric, obviously, at the journal. but all i'll say is, during the pandemic you needed to be accommodative. it's easy to be a generous fed chair, much tougher if you need to do some hard things that could affect employment. if inflation gets yout of hands and you have to make decisions

that put people out of work i don't know if that's coming or not, but it's much easier on this side. >> jay powell was moving to try to tighten things before the pandemic hit he kind of had put to that position, a lot of people think he didn't raise rates sooner at this point because he had to be up for renomination. if the journal's take was neither deserved it, i don't know what they were going to think if jay powell didn't get it because they're not going to get someone who's more hawkish than jay powell, we're just not. >> can we be honest, the journal piece is crazy the past two weeks they were screaming it has to be powell, can't be lael brainard now it's powell, actually it can't be powell either. >> right i read the piece i go, i resemble this piece. i'm going to sue myself for definition of character. i admit, you're right. i thought of that and said i'm going to now start complaining about powell i complained about brainard. i did think that

i did. but my problem, i do think -- and you're going to -- i know i'm going to hear from you andrew because everybody spends money in washington. but the way we're spending money now i think is being enavabled d has been enabled by jay powell and will be enavaibled whether you like it or not, it's something both sides are going to stake out the arguments oh my knee just jerked i hit it on the desk. >> knee jerk reaction. >> yes there are some knee jerk reactions on both sides. an interesting piece a lot more fossil fuels are going to be burnt if we release the oil from the spr brian sullivan joins us on reporting from potential action from washington. we want to stop burning these but the prices are too high, let's throw some on the fire. >> yeah.

we'll see what happens the president is going to make announcements today at 2:00 and talk about lowering pricing for the american people. my sources in d.c. say we're going to get an announcement of a release this morning, set for this morning, whether or not it's going to be a firm announcement of tomorrow we're going to do this or a we're going to do that is unclear but the president, according to my sources saying there will be discussion of a release this morning ahead of that biden conversation, really that talk at 2:00 p.m. before he heads off for a thanksgiving break 35 to 45 million barrels will be sort of the best estimate of how much we might get guys, over a short period of time the strategic petroleum reserve holds about 604 million barrels, the president and his staff looking for ways to bring down the price of oil it has come down about 8 bucks a barrel, most of that on spr or

european covid concerns. when we get the release, will prices move? unclear but unlikely because prices seem to have already moved on that. a couple of things about the release, you have to refill it there's so many angles to the story. the u.s. is spoe supposed to release it in an emergency is this an emergency with covid everyone can say everything is an emergency, you can't push back on it. the question is will opec retaliate in some ways they're on pace to adding 400,000 barrels a month every month until pre-pandemic levels. they've been time stamping that every month. will they react and rethink that planned increase when we get the spr release? that's the question. with covid you have political cover to do anything you can say we're worried about covid in europe we're going to pull that back as well some of the smaller and

mid sized oil firms in the u.s. are making budgets right now does this alter their thinking on how much they might be willing to spend to drill oil and what happens to prices in the spring when the american public busts back out and we have to buy the oil back to refill the spr we'll find out what happens this morning but crude oil suddenly becoming a big story this morning. who would have thought it. >> some serious deja vu, we've seen it. how many times in the last 15, 20 years, brian, whenever it happens. you hear maybe it's time to do the spr and then you hear both sides about whether this is a good time to do it the other thing you hear a lot, you kind of roll out the price fixing we have to go and look in and see, you know, are there local stations that are gouging and what's causing this? is it the suppliers, how sit happening? it reminds me, let's round up the usual suspects and do it.

>> well, demand is out stripping supply if you ask me to lay out why is supply down, politically, you can argue some politics, you know, no leases on federal lands, whatever, but the reality is oil companies didn't make money for ten years and investors got ticked off, and said you're finally making money if you put it back in the ground with new wells we'll crush your stock. we lost money for ten years, give us the money back that's the reality of the u.s. oil situation -- >> it's not just that. it's esg it's also that you have to find a new way to do it, you have to find a new cleaner way of energy, you can't continue to reinvest in that and opec saying, the smart thing about and spr spr this time, if they have do it in a coordinated method and japan, china and others who release it at the same time. >> india. >> and india it puts pressure on opec in a big way. the idea they may not go ahead and increase the production they

were going to do, that's what's interesting about this right now. and i do wonder if some of those big oil companies look at this $80 a barrel or near $80 a barrel and say maybe we do want to put money back into the ground at these prices it takes a while, but maybe. >> i think you're right -- >> maybe the secondary ones. >> you're from oklahoma, you get it you grew up with it, becky >> yeah. >> the big players will probably pull back. chevron, they don't want to get crushed. they're increasing budgets india, i mentioned them because they maybe front run the announcement india announcing 5 million barrels a day they're going to release, which is interesting given they're a huge net buyer of oil as well your point in opec is well taken. let's be clear, there is no elected politician in the world with more experience with oil or

opec than joe biden. he was elected when i was 1 years old. he dealt with the 70s, the price spikes, the gas crunch, he urged president clinton 21 years ago to sue opec. he's a co-sponsor of the no-pec, no oil bill. so if anybody should guess what opec may do it should be -- again, no president has more experience, think about that 50-year history going back to the mid 1970s when he was a senator from delaware. we'll see when we get it if opec responds. >> you're not making me feel great with the experience. >> i wrote oil well on my coffee cup. >> i would say we've already faced our worst fears headed through 80 and it seemed like there was nothing stopping it now we're back to 75. >> the return of a potential pandemic lockdown is probably doing the most it's not the spr or anything

else, it's the where's the demand picture going to go. >> it doesn't seem as urgent as we did, as we were moving through 80 like hot butter through a knife. >> it doesn't work if you're cooperating with allies and even not-allies. >> well said, not allies. >> well, china. >> are you his enemy we're not friends. >> how would you characterize it >> contentious. >> we'll leave it there. brian, we missed actually we're going to talk about it after the break now. a story about a car company that doesn't use oil, which is tesla, big lawsuit coming up. we'll talk to you about that but when we return, steve leisman on the future of the fed. we'll have him weigh in. as we head to a break check out the biggest s&p winners and

losers stay tuned watching "squawk box" live from the nasdaq market site in times square

♪ ♪ amazing... jerry, you've got to see this. seen it. trust me, after 15 walks ...it gets a little old. [thud] [clunk] [ding] ugh...

♪ ♪ xfinity rewards are our way of thanking you just for being with us. ♪ ♪ enjoy rewards like movie night specials. 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" this morning tesla has hired a former s.e.c. and doj lawyer as its new managing council, this is

according to david misler's linked in profile. there's been run ins with tease over the tweets of elon musk "the wall street journal" going behind the scenes of a long running feud of elon musk and jamie dimon. last week j.p. morgan sued tesla saying they owe them $250 million musk responding in only the way musk would to "the wall street journal," saying, quote, if jpm doesn't withdraw their lawsuit, i will give them a one-star review on yelp this is my final warning according to public records, j.p. morgan hasn't worked on any tesla offerings or transactions since 2016 guys, i don't know >> who gets away with these kind

of statements. >> if you read the details on it -- >> if the company wasn't worth a trillion dollars on it. >> if you read it, it sounded like a slam dunk for j.p. morgan they had warrants to issue if the company was put up for sale. and musk tweeted they were going to take it public. so j.p. morgan at that point repriced it. when they redid it, they raised the strike price, that's what they're fighting over. by his own admission, tweet, this was the case, right >> normally banks would be hesitant to poke the bear, though the biggest car company in the united states -- >> because they want more business but if you're not going to get business anyway. that's the case, they weren't getting more business. >> why does the biden administration include tesla in talk about e.v.s, do you understand that? >> it's all union uaw all day

long that's what it is. >> they have a contentious relationship with the administration. >> can they do that? >> they can do that. governments pick winners and losers all the time. >> this last bill basically says if you're a uaw automaker we're sub subsidizing you. >> it's not just tesla, they're picking on it's toyota. >> how does the administration say we're leading the charge on e.v.s and not invite tesla it's the elephant in the room. >> tesla has done well with the government subsidies over the years. it's done well between the state and government subsidies. >> government is in bed with tesla, why not admit it? bring them into the white house. it's very strange. for two political parties trying to pretend to the american public that these things don't matter, it all comes down to what you think about each side

we're not going to get anywhere. >> i had a conversation with somebody who's very close to the situation, who was explaining to me, the administration's view is twofold one is the uaw, but the other is if you can advantage, frankly, the other automakers against tesla. they believe that's better for competition long-term. >> again, tesla -- >> this is picking winners and losers and trying to control the market the view is it tesla is so far ahead you need to lift the other folks. >> so far ahead because of the government subsidies they've received along the way i understand getting upset you're not getting them now. >> those government subsidies were available across the board for every automaker. >> tesla took the bigger share because they were out there first and foremost. >> they have a car people want -- >> if you can get it $20,000 off. and california was responsible

for a lot of those individually, too. >> we don't want you buying this beautiful model s we want you buying this bolt that can explode into flames. is it the bolt or the volt which one can't you park near your house >> i forget. the volt. >> celebrating thanksgiving with the hay stacks don't park it there either because the whole neighborhood is going up. >> fair point. >> nobody else competes. if you want to compete, compete. i don't know >> they will i'm saying i think there's a lot of different views -- >> cut off the government subsidies to everybody see how they do. >> this is good coming from you. >> that would lock in the success tesla has had relative to everybody else. do you want that, do you not i'm just saying. these are some of the component parts to this. >> i don't think that's a mean tweet. i'll give you a one on yelp. >> that's kind of funny. >> that's him kidding around.

>> i'm saying, in what universe could any other ceo in america put out these tweets. >> he says to bernie sanders, i thought you were already dead. he says crazy stuff all the time. >> all i'm saying is, if the -- look, the company is worth a trillion dollars he can say these things if the company was worth $50 billion -- >> he's been saying this stuff all along. this is not a new. i think this is him. this is just him and because he is so incredibly intelligent and so innovative i think he gets away with a lot. >> he gets a long leash with the success. >> you lost him on the flame thrower. now i love him. >> i don't like the tweets he's put out recently, including the texas -- >> he lost me. >> you were constantly on the other side of things with me now. >> you can admire him, the car, like what the company has done, and you don't have to agree with everything that comes off of his twitter feed. >> "saturday night live" i did

appreciate what he came out with on "saturday night live," coming clean about being different and thinking differently, i appreciate that. but there are still tweets that have come out recently, including the texas institute of whatever it was. come on. >> yeah, sorkin. >> come on >> companying up, leman ison the mania of the fed long live elon musk. stay tuned

welcome back to "squawk box. now to something we don't often talk about, the turkish hlira, it's plunging to a record low after president erdogan's

policies yes, it can get and has gotten worse for the already bele beleaguered currency in turkey just look at the depreciation in the lira so far this morning as noted earlier here and elsewhere, the risk is of a deepening vicious cycle of dollarization currency mismatches and inflation and i don't -- unless you've been in a country that sees currency issues like that we have no concept here, i don't think, of what it means to work -- i don't know what people all around the world work 40, 50, 60 hour weeks and by the time you get your paycheck it's worth half of the week before. and truly hyperinflationary environment. >> not being able to pay for food, rent, anything else along the line the long awaited announcement that fed chair jay powell has been nominated to a second term cleared up market

uncertainty but steve leisman reports there are still plenty of questions about fed policy. steve, good morning. >> yeah, turkey is a good example by the way what you do when you get policy really wrong. many in the market applauded the decision to renominate jay powell they pointed to the removal of the uncertainty and continuity of policy by there are questions surrounding the fed and policies over the next several months we have the question of the pace of the taper, some want to speed it up the timing of rate hikes and a lot of new fed members coming on board. standing next to the president yesterday when the renomination was announced, powell made clear fighting inflation is a major policy focus. >> we know that high inflation takes a toll on families, especially those less able to meet the higher costs of essentials, like food, housing and transportation we'll use our tools to support the economy in a strong labor

market and prevent higher inflation from becoming entrenched >> among his options, speeding up the taper, two fed officials said they want to talk about it. increasingly the markets pricing in the first rate hike as early as may but powell needs the committee to agree and there are two interim bank presidents and three open spots for president biden to fill. ian wrote this morning, you can be pretty sure there will be dovish democrats who will offset the clear hawkish shift among those regional voters next year. the white house said the appointments by the president will be made early next month. what may be important to talk about is the growing political consensus over the growing inflation. it gives jay powell and the fed a political green light to fight

it, becky. >> if this is a situation where the fed board is -- or the voting, if fomc is going to be a more divided board, i don't know that i recall seeing a situation like this. it seems like the board goes along in lock step, not to say there aren't disagreements but seems it's very collegiate, and that the fed chair is kind of able to move things the direction he or she wants to is that not necessarily going to be the case here is jay powell going to have his hands tied >> so that's a really good observation, becky and the way it happens is, the reason there is not a lot of dissent is because typically you have a chair who works to make it so there isn't. right. you do not want to go -- i think the most dissent i may have seen over the years is three. so what do you do? you go and talk to your policy members ahead of the meeting and say, what do you want?

and you fashion compromises. sometimes there are lines in the statement like we're going to do this down the road that is putting it specifically to mollify or get the votes of a hawk so it's really up to the chair to bring the committee to together, which is to say that it could be tougher for powell, depending on who the members are and what they want, and you could have a divided fed or more likely what happens is policy comes to the place where you get a consensus among the board members. >> steve, looking at the history of fed chairs i think it's probably a pretty good time. i don't -- i wasn't that involved back with g william miller or whomever it was. the last time we vilified a fed chairman in general it's great to be a fed chairman during the easing times. it's really not a great job to be a fed chairman when you have to take the punch bowl away. i think some of them have walked away saying who needs this,

knowing what was ahead of them and i just kind of get the feeling that, aren't we in that -- possibly in that type of cycle where the next moves are going to be ones that people don't like and that, you know, could cause some pain in the economy? think of what vulker, that took real spine, had to be 6'10" or whatever to go to 18% fed funds to break the inflation back then that was not a popular thing to do at the time >> no, and i was, yesterday, joe, looking up the history of this because i wanted to know when jimmy carter appointed vulker did he know what he was getting into there was an antic that said when he met with carter for the first time he thought he blew the interview because he talked

about raising interest rates carter picked him for that reason and that's really instructive to me because as i watch over the years when the fed does raise rates and how it raises rates. the political consensus around that is very important we have a gathering political consensus in this country right now of fighting inflation. you're right, it's not easy, never fund, it's difficult but the idea that you had president biden there talking about inflation, powell got up there and talk about inflation you have this idea that we need to do something about it, it makes it easier and more possible why did the fed race by a quarter point in the early 2000s? because there was no inflation, green span was trying to get back to a normal rate but he didn't have the inflation impetus to move him along. i think the market may be coming to terms with two things, one is that inflation is high, and two is that there's this political consensus around doing something about it which leads to three

the idea of potentially faster rate hikes. >> steve, thank you. a lot to think about and a lot to watch behind just the first two nominations. when we come back as the senate prepares to battle over the build back better plan robert frank debunks the myth about taxes on high earners. you're watching "squawk box" here on cnbc we'll be right back. 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.

welcome back to squawk this morning. to washington and what investors need to know about what's happening in the nation's capital. the senate set to battle over the build back better plan and the ks tas to pay for it and with that robert franks joins us on why politics may be prevailing over math what do you mean >> the question around the house bill is whether it's a tax cut or a tax increase for high earners, bernie sanders calls it more tax breaks for the wealthy yet it raises $600 billion from top tax players. an analysis shows more than two thirds of taxpayers who make more than a million dollars a year will get a tax cut in 2022. the main reason is the s.a.l.t. change lifting the cap from $10,000 to $80,000 costs the government over $50 billion a year with 80% of

the benefits going to the top 10%. yet according to the policy center even with the s.a.l.t. change, the average top 1% will face a $55,000 tax increase in 2022 that's mainly because of the new 5% and 8% surcharge on those who make more than 10 and $25 million. and any tax cut for the wealthy is only for one year that's 2022. in 2023, most millionaire earners get a tax hike and it only goes up from there every year as more of the tax hikes take effect and other tax breaks expire the tax policy center says if if you look at all direct taxes, individual and payroll taxes, the house plan cuts taxing in 2022 for every income group, except for the top 1%. andrew >> and all of our friends living

in new york and new jersey on the s.a.l.t. front >> so, there's a very particular kind of taxpayer that gets a tax cut, that's wage earners who live in high tax states who make between 1 and $10 million, those folks in the early years will get a tax cut. and it really depends on what time frame you use, what your definition of income is, and then how you make your money if you're a pass through with 1 to 10 million you might get a tax increase, even if you live in those high tax states i w it's very particularly in this bill how you make your income, where you live and what time period you're talking about. >> i think it might be the dirty little secret in washington that whenever either party passes something, they have these tricks about phaseouts i know you've done some work on it the numbers that we're talking about are anywhere from one and

three quarter trillion to 4.6 trillion and if you really look at, you know, really hard core analysis you come up with different numbers. the cbo for some reason will accept at face value what either party tells them, garbage in and garbage out and gives you this rosy picture one more point, moodies, it came out with another report, a positive report on the build back better plan the person that wrote it, the analyst, is a penn grad and it is moody's, it's not moody's analytics and glowing effects of a $1.75 trillion plan. yet penn wharton put a pen to exactly what it's going to cost so the same -- someone from the same school, same institution, 4.6 billion. so what good is any of this? depending on who you are, you

totally fudge the numbers on what we're doing what should we use as a real number >> well, i mean, look, even when you look at it, very basic concept like s.a.l.t. changes where that costs the government $50 billion a year because you're giving back a tax be benefit. somehow as josh gotheimer said to becky last week, that doesn't cost the government anything that's revenue neutral what math do you practice that $50 billion a year in added cost to the government, lost revenues, is revenue neutral it's because of the phaseouts and the timing >> it is and these are the games you can play with all of this stuff, right. by the way, all of this is just based on what hasn't been changed by the senate or going back to the house or anywhere else these are our best guesses on all of these things but a lot is going to change between now and

then. >> that's right. >> robert, thank you great as always to see you when we come back, snacking may have increased during the pandemic but so did food prices. we'll talk about the state of the business and the consumer with the ceo of hormel check it out guys, i got the spam i got the hormel chili you don't. we'll be right back.

food giant hormel saw snacking increase throughout the pandemic with brands like skippy peanut butter and spam joining us to talk about how business has been affected this year with rising costs and supply chain disruptions jim snee, ceo of hormel brands it's iconic, it's not just spam or chili

now it's planters. i was looking at all of your different products you talk about how popular pizza is you make a lot of the pepperoni and turkey pepperoni that goes on pizza you are all over the place in terms of of products and i don't think we all realize what's under the hormel umbrella at this point. >> that's a great introduction, joe, thanks. that's true. the evolution of our company over the last decade has been unbelievable in our history we started out as a meatpacker commodity company but over times with acquisitions we made, innovations we made internally, the portfolio has evolved into this incredible value added portfolio that covers all day parts, all segments, all channels you think about our business being largely retail a third of our business is in the food service or our away

from home jam. from home channel. so the evolution has been impressive and the stable of iconic brands we have resonates with consumers, especially in the midst of a pandemic where consumers were looking for trusted brands more than ever. >> how many jenny o turkeys are going to be on american tables thursday >> there's going to be a lot of them, and i will tell you there's plenty of them, joe. our team starts early in the year getting jenny-o turkeys prepared for consumers and i will tell you that there's a sorry or a myth out there that there's a shortage of turkeys and we are producing and have sold more turkeys this year than the last several years i think we encourage many of our consumers to buy early and buy often because we do want to make sure that they all have the opportunity to enjoy a jenny-o turkey on their table. >> let's talk about how business

is -- it's pointed out, there's a dividend aristocrat group, 25 years of consecutive dividend increases, there are not many years that are kings, 50 years in a row of dividend increases almost like the dow 30, 31 companies, hormel is one of them through thick and thin you're able to do that. are you too conservative >> you know, i don't think so. i think our level of financial management has been incredibly appropriate over the years actually, just yesterday we announced our 56th consecutive year of dividend increase. so that does continue to put us in the dividend king classification in the middle of november we announced our 373rd consecutive dividend payment we've paid a dividend every quarter since we became a public company in 1928. our balance sheet even after we did the largest acquisition in

our company's history, planters, our balance sheet remains strong and gives us the optionality to do what we need to do to continue to drive our business whether that's internal, cap x investments to build facilities to go out and find additional acquisitions to support our business i wouldn't say we've been conservative at all we've been very appropriate managers of our finances >> i am a big fan of planters dry roasted peanuts, i buy them all the time and i have to say in my experience i've had a harder time finding them over the pandemic am i imagining that or is that real >> i think like so many things, becky, there have been supply chain challenges across not just the food space but so many industries and as you know, and i'm not the first to say it, we are experiencing labor issues. and so, you know, as we continue to see labor improve, we certainly expect availability of

all of our products to increase. but i would tell you that it's not a dramatic shift in terms of availability a big part of it could also be the increased demand we're seeing not only for planters but our entire portfolio in the retail channel and the food service channel. >> you talk about hormel and we can go probably a half hour at least but we need to talk about your response to the pandemic. i know you -- you're proud of the digital side of things and you got on the top -- whenever anyone needed to order something when we were holed up in our homes they could easily find hormel products how did you handle that and supply chain issues and store shelves right now, there's things we're having trouble getting for thanksgiving how does everything appear currently on this -- the tuesday before >> there's a lot there, joe in that question. i will tell you, the last two

years have been the most complex operating environment that i've ever been part of in my 32 years so starting with our focus on keeping our team members safe at the beginning of the pandemic and now doing everything we can to be transparent and encourage our team members to get vaccinated because we want to make sure they show up for work to produce the products our consumers want and need. i did my thanksgiving shopping with my wife on saturday night and fortunately we were able to get everything that we needed. so i think it's probably more of location specific, and it is a combination of not only some of the supply chain challenges but the significant increase in demand that we're seeing and that elevation in demand has remained since the start of the pandemic and honestly, we don't see any signs of that slowing down and so, you know, i can't speak specifically to where you shop,

but just know that we have 15,000 production professionals showing up for work each and every day to do their part as essential workers to make sure they keep food on our consumers' tables.

y

you, a retail federation reports 2 million shoppers are expected this thanksgiving weekend than a year ago maybe that's not a surprise given a year ago i don't know where this measures up versus two years ago. >> right it is up a little bit, becky, but not in a substantial way we're expecting overall retail to grow in the low single digits but the vast majority is coming from ecommerce that's where we will see the

biggest gains and shop through ecommerce channels we have to remember there are at least a third of people not comfortable shopping in big sto stores >> what about the other retailers, those in the malls? >> i think those retailers will be the most challenged, certainly because of the supply chain issuings, some attend to be apparel merchants or footwear merchants. they have the biggest issues with factories producing them, getting them over to wherever the final destination. they were often air freighting merchandise as well, which increases costs beyond what they had expected earlier in the season so i think we'll sigh likely a lot of out of stock on some of the best sellers for those mall

merchants. so that's a problem, potentially down traffic consumers are just more likely going to buy at one-stop shops, because that's where they can get more merchandising it will be at mass mer chapts or amazon, candidly. >> quickly, we have gone used to not seeing sales in a long time. do you think that trend will continue through christmas and beyond >> we did a survey and a third said they will reduce the number of promotions and offers they will provide this week, next week and through december. so that is absolutely tempting that consumers can expect is not the deep discounts and the prevalence of the sales that they saw last year or even in 2019, but because a lot of the

merchandise is still sitting on container ships or en route, what i do expect is late december and perhaps in early 2022, to see a lot of that merchandise that never made its way to stores. >> coming up, we got two big aylleys ahead. st tuned for that and so much more when "squawk" goes on >

a late-day sell-off in tech. traders on edge. the nasdaq dropping over 1% amid ongoing inflation concerns we'll get you ready for the trading day ahead. the price of food on the rise, thanks to supply chain woes. we'll hear from the gm of smuckers about the state of the business and consumers if you are headed to grandma's house, get ready for long lines or delays at the

airport a. shortage of airlines and tsa workers may make holiday shopping not much fun. the second hour of "squawk box" begins right now remembers good morning, welcome back to "squawk box" right here on cnbc. i'm andrew ross sorkin with becky quick and joe kernon let's show you futures at this hour, two-and-a-half hours before the market is set to open we are looking at a little green on the dow the s&p i'm calming it a hunch, being a little generous there, a little red on the screen, nasdaq up about 20 points right about now, becky. let's get you caught up on the headlines at this hour fed chair j. powell is seeing as support after president biden

nominated him for a second term e. they praised his work as did the panel's chairman, ohio democrat sharod brown. powell would face a vote before his nomination goes to the full senate powell faces opposition from some democrats, including massachusetts senator elizabeth warren and samsung is reportedly set to announce taylor texas as the site of the new $17 billion chip plant according to "wall street journal." ap announcement could come as early as today also, theranos founder yelz beth holmes says she believed in the technology based on results from early studies she made those comments at the second day of testimony in her triechl she pled not guilty to trial and conspiracy charges ylan mui is live where more. >> reporter: hi, joe, the white house is announcing it will release oil from a petroleum

reserve in an effort to stem gas prices, it said the department of energy will release 50 million barrels from the spr 32 million barrels will be in exchange over the next several months 18 million barrels will be an acceleration of a sale over the next several months that congress had previously authorized, that the president stands ready to take additional action, if needed. now this move does come ahead of the economy and the ways the administration is trying to tackle higher prices later on this afternoon the white house has been talking with allies about some type of coordinated release for weeks. of course, democrats have been urging the administration to make this move this is essentially an acknowledgment by the 5 minstration inflation is a major vulnerability. republicans have been attacking the white house over energy policies, particularly the closure of the keystone pipeline and drilling in the arctic this is an attempt to announce

50 million barrels in the petroleum reserve. 13 million barrels over the next several months and an acceleration of 18 million barrels that have previously been authorized for sale guys >> yeah. additional tools i imagine that would not include any long-term initiatives, probably, ylan, we're in the going to see a reversal on pipeline issues, keystone or this is like we can do this immediately, can stop doing it by november of next year him i don't know what's happening in november, oh, yeah, that's right. there might be an election the long-term perspective is still we would like to force people, migrate people to cleaner energy and they still want to do this. this is sort of, i don't know, do people drive around to get to places on thanksgiving >> well, certainly, this is the

bind the administration is in. this is one reason why it's rarely capped by this administration or a previous one. it does take time for the oil to reach the markets, about two weeks for the oil to be released as you see from the release, it will take them several months to get to that 50 million barrels so while they are recognizing that this is a short-term and immediate problem, the reality is it's going to take a long time to fix it even with the skepticism today. >> okay. ylan it's down almost 2%. we made the point earlier that the resurgence of covid in certain places seems at least to stop that upward momentum that oil had. we were over 80 on wti, too. now we're down to 75 it seemed like it wasn't quite the momentum we had seen on the upside at that point

the dow down almost 2% thanks, ylan >> the only other point i'd make is what cures high praises is high prices, it incentivizes producers to go ahead and put more money of capex into it. at 80, you started to see the producers who said fit comes down below 75, it's a temporary fix? we'll see. there is only i think 600 million barrels. you can only do it so long dom chu, a lot of things we were moving yesterday how is that playing out today in >> absolutely a. huge deal here. on the petrolium front, the rig counts have been an act sell rating a lot of analysts say oil companies are focusing on the fundamental also of their own business to get cash back to

shareholders all that is in play right now we got so many stories to talk about right now because of everything that's happened after the bell yesterday and some stuff happening overnight internationally. first of all, zoom value, is down, its still growing. people are using their video products it comes out with better-than-expected profits and earnings but there is a concern for investors the growth trajectory upward will not be as quick because of the comps a lot of people use them maybe that slows down a bit. they are down 10% right now. by the way, the cfo of soorm will be right here on "squawk box" tomorrow, kelly stickelberg. watch what's happening with urban outfitters, you can see better than expected profits and revenue, the parent company

namesake break anthropology as well sales growth at existing store locations has that stock down here supply chain worries factoring into that narrative there. supply chain issues factoring into a lot of retail urban outfitters down now. we talked about the oil complex. oil companies are very much in focus this morning him some of the pre-market losers so far, apa corporation, believe it or not, turned positive in the session. occidental is down 1.5%. moves in diamondback energy, exxonmobile, you see the tech energy ticker xle down by about one-third of 1%. then a big macroeconomic story outside our borders here if you think inflation in america is bad, you don't want to be in turkey the dollar versus the turkish lyra. the dollar is surging and the

turkish lyra is on the heels, prime minister erdogan there is basically reenforcing his country's policy of cutting interest rates at the same praises are rising through the roof in that country it's a controversial policy. it has wide ranging effects on its economy. but that particular administration feels as though cutting interest rates is the right thing to do for their economic independence. the markets don't agree, they're punishing the turkish lyra, the dollar rising sharply, it's certainly something to watch it's been a volatile area before we'll see if that continues. back over to you guys. >> my question is why are everything turkey buying bitcoin, it's back around 56,000 you'd think with everything going on, we might be -- that might have been, in the old days it would be a catalyst >> it would be a catalyst.

>> for last week >> if the narrative really is, andrew, bitcoin and crypto currencies are a hedge against inflation, you got to wonder sw a turkish citizen is out there looking at some of those situations yes, there is this idea right now that maybe crypto currencies are an effective hedge and bitcoin is global. crypto currency is global. you wonder whether or not that will play in the part of the story. i would be curious if you see movement because of hyperinflationary concerns turkey is not a big country, by the way? there is not that many people out there. you wonder if it will have an effect when you see inflation pressures like that and a government in central bank cutting interest rates. you wonder what the thinking is there. >> that would be the argument. but maybe the flipside is turkey can't prop up bitcoin. dom, thank you for that, domino, of course. meantime, we will talk a little about tesla. it is feeling the california love you ready for this

new data showing the ev giant is leaving the competition in the duvgs somewhere on the pacific coast highway. phil >> andrew, we get this data every corner from the new car dealer's association it's a great deal how the country's largest auto market is moving in terms of trends, what people are buying, what they're not buying the numbers look incredible for tesla. they have always been strong in california it's always been their strongest market look at the surge in sales this year nobody is close to them. up 64% the model y. the modem 3 has always done well there. the model y is the fifth best selling model in california. let me stress this, not the fifth best electric vehicle the fifth best selling vehicle period it is also the number one luxury exact suv in california. one reason why, you look at

tesla's annual sales, the estimates continue to go up. not just because of california but because of what they're doing world wide the estimate right now according to fact set is for four-year deliveries to reach 893,000 vehicles don't be surprised by the end of the year if the estimate tops 900,000. the gigafactory hasn't come online it starts production the end of this year. we'll probably see the first vehicles coming out of the gigafactory next year. we don't see the cyber truck until the end of next year coming out of there. i want to show you, ford, rivian and general motors, why are we showing you all three? all of them have electric pick-up trucks that have either started deliveries, in the case of rivian with the r1t and general motors e-silver ra do. they have the hummer the esilverados, the high volume

etrek trick pickup truck coming in 2023. what you will see is a real battle, guys, in southern california because it is the largest pickup market in this country. larger than dallas and houston, southern california. it's also a nice mix of both the traditional full-size pickup buyer as well as lifestyle buyer. that's where the cyber truck is likely to do well. new numbers out of california show how strong tesla is in that state. i expect they will maintain that dominance, certainly when it comes to electric vehicles if that state when you see the overall mark with the model y the fifth best selling vehicle overall, shows you how quickly tesla has established itself out there >> phil le beau. you want to weigh in on a little of our debate earlier? i don't know if you heard us in the 6:00 hour about mr. musk and his comments about the yelp reviews and otherwise with j.p.

morgan and the battles and fights that seem to be brewing >> it's a good entertaining story. i mean, look, i read the story in the "new york times", as i'm reading it, yep, makes sense i can see it all and how it all plays out. look, i think that he has shown that he can get by without j.p. morgan i think the lawsuit is interesting between j.p. morgan and them andrew, you have been doing wall street for many years. you know how a lawsuit can be filed. typically, these things are worked out, outside of a courtroom. the fact that it has gone so far shows you how fractured any relationship that is there how tense it is between tesla and j.p. morgan. >> phil le beau, always great to see you, thanks, my man, i appreciate it. >> you bet coming up, more peanut butter peanut butter and jelly time because, becky, don't tell me

smirk pizza. you kept taupting me what do you got, bagen there >> bacon, pepperonis peanut butter. >> have you ever taken a flagle like a flat bagel and put peanut butter and bacon on top of that? >> no. >> are you kidding >> no, i'm not. >> that is huge that is huge if you don't think bacon and peanut butter go together. headquarters getting all this great stuff. at the nasdaq i got nothing in my hand. >> it's not cooked yet don't get jealous. >> the ceo of smuckers is talking about the rising cost of flood, the supply chain and the results. before we head to break, let's get a check on the markets next, not much happening here. oil is interesting, though, "squawk box" will be right back.

if you are just waking up, we got breaking news, just in the last few minutes, the white house announcing that the united states will tap the strategic pe trottium resepetroleum reserves an effort to bring down prices we have been anticipating this, talking about it for a while

as it happened, you can see wti down about 1.5%. check out the knee-jerk reaction we saw this is a longer, the 12-hour chart you are'ing, you did see the immediate dip, it's still down by 1.5% at this point 75.58 is the last tick in the meantime, smuckers reporting earnings, adjusted numbers came in at 2.43 a share. well above what the street was expecting. joining us to talk more about it is mark smucker, ceo smucker has been in a bit of a sweet spot ever since the pandemic hit, everything that you sell are things that consumers stocked up on and went more to as the pandemic hit, it looks like you are continuing to see those trends based on the numbers you reported today >> becky, thank you for having me, yes, indeed, we have seen tremendous results over these last several quarters, obviously, you know, our sweet

spot is breakfast, lunch and pet snacks and all three of those things have benefitted from increased consumption over these last couple areas with you know coffee, uncrustables, peanut butter and jelly, again as we have stayed home a little more, obviously, treating our pets with our milk bone brand just this quarter up 17%. >> i was impressed looking through strength in some of these numbers, coffee as you mentioned was a big spot i think dunkin' donuts was up 10%. when you look at k cups, that's the huge growth. i think it was up two-and-a-half times for the k-cup sales, is that right >> yeah, the k-cups have been incredibly strong. we were able to grow share in duncan, bostello and folger's. i spoke to staying at homing more brewers we expect another 2 million

keurig brewers coming online >> is this a reopening safe bet to say that people are going to continue to still be doing all the k-cups at home, spending as much time with their pets. you saw the lunches at home with the crustables frozen sandwiches that you have and things do you worry at some point as well get out there that they stop buying these things as much >> well, first of all, an encrustable sandwich is a great story. because that brand has grown 30 consecutive quarters up 30% this quarter. last week, we announced we are building a third plant in alabama and ultimately that will, we believe, will become a billion dollar brand over the next five years some that's a perfect example of on the go, low prep, sort of meal solutions or snacks that folks have

enjoyed during the pandemic, but your point is great about folks are staying at home. we do believe and what we're seeing as folks are going to continue to work from home more than they did in the past, even as office open up more, we all are going to probably be spending more time working from home than we did pre-pandemic. so that certainly bodes well for all of our categories. >> when you look regionally across the country, are there some places where your sales have jumped even more than other places i'm trying to get a feel for maybe where the biggest ships have been for work at home, if that has an impact in. >> you know, it's been relatively consistent across the country. i wouldn't say there is any geographically hot spots, because our brands truly a national i'd say it's consistent nationwide >> let's talk about inflation. that's an issue affecting everybody. the supply chain mixed together, adding to each other's woes.

how do you handle that what kind of impact has it had over the last year or two? >> there is no question inflation has been driven by the cost of ingredients, transportation in some cases isolated labor issues overall, we have been successful in passing along those costs to our retail customers and the consumer has responded very well our elasticitys that we would normally see are better than expected so the momentum on our business definitely continues as we have been able to pass along those prices everyone is feeling it, right? >> obviously, you don't think it's going to catch up with you any time soon, you are raising your guidance for the full year today as well. are you saying you expect $8.35 to 8.75 a share. the street was at the lower end of that range. sow don't see these price pressures getting to you, at least to your margins over the

remainder of this year that's 2022, are you on a different fiscal year in there the fiscal year end april 30th yes, the guidance raise is for the back half of our year. we did also raise sales guidance, on a separable basis we expect our sales will be up about 4.5, four to 5% over last year once you trip out divestitures and so forth. so, definitely, very strong results. we will continue to as you know manage costs, pass along what we can. we do expect that is going to translate partially to the bottom line as well. >> thank you the market likes what it sees, too, it's up 1.2%. thank you for your time today. >> thank you and happy thanksgiving >> you too covid cases climbing ahead we will get the latest on the covid front and what you should be thinking about.

plus, check out shares of best buy. under some pressure after the electronics retailer is beating estimates. forecasting hol say sales below street forecasts we'll discuss it don't be shy, now. i like that prime cut. -aflac! -i love my gold jacket, but that aflac blue feels so right. when you feel right, you coach right. i know that's right! prime never believed in double coverage, but health insurance and aflac...is money. ♪ must be the money ♪ and i know how coach prime feels about money. -aflaaaac. -♪ aaahhhh ♪ now that is what this jacket needs. ♪ must be the money ♪ get help with the expenses health insurance doesn't cover. at aaflac.com

i promise - as an independent advisor - getto put the financialses healthwell-being of yout cover. and your family first. i promise to serve, not sell.

i promise our relationship will be one of partnership and trust. i am a fiduciary, not just some of the time, but all of the time. charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com what does the future of strength look like? it's dynamic weight that adjusts for you in real-time for a more efficient workout. and you can only experience it... (sigh) on tonal. ♪♪

now the answer to today's aflac trivia question. what is the top turkey-producing state in the u.s.? the answer, minnesota. still to come, holiday travel right around the corner some are already hitting the road we'll talk to you about how to keep your family safe this thanksgiving with dr. patel. don't miss our exclusive interview with alex karp the first time year since its public debut stay tuned you are watching "squawk box" on cnbc the big picture, even when you're focused on what's happening right now. and thinkorswim trading™ is right there with you.

to help you become a smarter investor. with an innovative trading platform full of customizable tools. dedicated trade desk pros and a passionate trader community sharing strategies right on the platform. because we take trading as seriously as you do. thinkorswim trading™ from td ameritrade.

public health experts have given their blessings for thanksgiving holidays this year with recommendations, vax naces, boosters, testing, lots of testing. meg tirrell joins us with more on that.

good morning, meg. >> good morning, becky so, i've heard it before aublg of it. so if you are looking for a test heading in thanksgiving with friends, it should be easier now than a few months ago. supplies are ramping up. we checked in with the biggest companies, quest and lab core, if you are looking for a cr test, they take longer to turn around they say they're one-to-two days, rite aid could take up to five days. a lot of people are counteding on 15 minutes. it's expected to be 600 million per month she estimates home tests should reach 200 million

available in december and the fda cleared its 13th home rapid test to take without a prescription yesterday one from inbio they are antigen but a few molecular are in there as well they vary from $7 per test the highest can be quite a bit more than that we asked the white house covid response team yesterday about the recommendations for testing, dr. valenti had this to say, geneva zients. >> affordable packs, overall, we will have a half billion tests per month. by the end of the year half of those will be increasingly popular at-home tests sothis is well-timed for the holiday season. >> you know, guys, if you go into your local cvs, warm

greens, walmart, they should be stocked there. it sounds like a better situation than it was a month ago. joe. >> testing, that's something to think about, meg joining us dr. patel, former white house health policy director, i don't know how many families right now, doctor, are thinking about some of the nuances of where we are in this pandemic obviously, we got the troubling news out of europe and even in the mid-west, upper mid-west area in this country but it just brings to mind, even if you are double vacc'ed with a booster, if you have someone elderly coming over your house that maybe got the first two shots more than four, five, six months ago, even you with the booster could still be if you are asymptomatic, you can be carrying it and give it to somebody whose anti-bodies are

lower. there will be thing that are problematic for families, aren't there? >> yeah, joe, you are bringing up two important points. number one, if you do qualify for a booster and haven't received it or to your point even less than six months, we know with data if you are elderly, you probably never got that 94 or 95% response. those are good points. here's the good news, though, if you, yourself, are fully vaccinated including and up to date on your booster, it's incredibly low for you to get symptomatic infections and to have viral load that can help others i think the other factors to think about are the case counts. if you are coming from an area, coming from minnesota, michigan, or traveling to those areas, the community activity is so high, joe that it does pose a risk but i think as meg pointed out and the white house is trying to emphasize, you can still layer things to make that safer.

this inner generational risk in 20 months will definitely see numbers going up, what we are looking for is a decoupling of hospitalizations and deathings, which is what i'm hopeful for. which means these are milder or asymptomatic infections. >> so many different combination i can think of so let's say that you are a, you know, under 65, and take a person whose had a booster under 65 and someone who is 45 and healthy that had the first two, but it's four, five months ago is there a better chance of them being shedding a virus to someone than a person who's had the booster? you are saying the viral loads are too low for someone that gotten the booster someone with a booster could be contagious even if they're not sick right, your chances definitely increase if you are younger, 40s, 30s even, your chances

increase the more time from that second dose. but make no mistake, we're talking about an efficacy that's still in the 50s and 60s and that's really good it's just that you still have that risk. so, we're all facing some scenarios. the most common ones is that a younger person with a known contact with someone who is positive, they're vaccinated what do they do? get on a train travel we have to have confidence in these vaccines i wouldn't tell people to cancel all thanksgiving trips, no symptoms i think sims i symptoms should be a surviving boundary f. are you symptomatic, stay away, it's not worth the risk if have you older people in your households. >> if you are over 80 and you don't have a booster, could you be going over to a family that's going to be a lot, where you don't know where everyone is people from out of town? isn't that a fairly questionable

risk >> right i agree. i think if you qualify for a booster and you are in, even over the age of 50, i would say, joe, based on the data we've seen from israel now in the uk. we do sew a pretty decent bifurcation over the age of 50 if you qualify for a booster, haven't had it those are the persons more likely to have break through infections to lead to more moderate or hospitalized illnesses. so those are people that i would say, here's the good news, it's not too late you can get your booster today if you are traveling tomorrow or thursday or getting into gatherings, we know we will see some anti-body response at 48 hours, optimally in seven days, don't discount the ability to have an effect and to do the things that we've mentioned before, testing. if you are at high risk, put a mask on. avoiding it altogether you are right, if you are

elderly, you have not had a booster, you are taking a calculus, 100,000 cases and climbing there are dangerous zones to travel into. >> this is a sorkin debate right now, we have about 25/30 people coming together with a bunch over 90-years-old that is. one that's actually coming in at 100-years-old, halfly boosted. we have some kids not vaccinated i am encouraging, i would say encouraging, i am trying to run a testing program for everybody that i have been trying to push that on the family to do tests across the board my view is we do it. it's easy, it's not that expensive and we call it a day i have some people in the family pushing back on my push for testing. what do you want to tell the sorkins? and what do you want to tell the

viewers in >> well, this is a very tricky area, andrew some i agree with the sorkin testing motto if you are fully vaccinated or partly vaccinated, no symptoms. you can use testing to just make sure and give people confident it's not perfect, however, you know, that's why some are giving you a pushback i'll say this, anybody that's concerned that's high risk, you want to avoid that situation ventilation, masks, testing. put those together. >> doctor, nobody is going to -- we got to eat altogether we can't wear masks. we will be indoors >> i totally, no, no, no, making sure that they're wearing high quality masks is good for health and that's what you tell them. i agree with you, but open a window, go outdoors. i know you the aren't in a colder country like we are

wear masks if they don't feel safe, it's not worth bringing them in for the risk you are doing everything you can to reassure the masses >> doctor, thank you thank you. we appreciate it we got a lot to say. i'm thinking about davos, too, what is going to happen in europe by the time --? joe, they're running a significant testing program. that's going to be the way they're going to try to solve this >> andrew, we're all signed up >> we're all going, but their plan is what i'm trying to do on thanksgiving, they're going to basically test you virtually every other day. >> who is taking a quick test? my next test, it takes ten seconds to do it and 15 minutes no wait. >> i'll give you the phone numbers of some people in my family. >> no big deal just a test. >> coming up, the supply chain, economics of the trucker shortage frank holland has a preview of what is coming up, frank

>> good morning, andrew, a historic trucker shortage at 80,000, we go inside, a major factor to get behind the wheel of a big rig i'm frank holland. i'll have that story coming up on "squawk box." good to see all of you, yeah! why is jerry so... popular? it's been like this ever since we started using workday. what do you mean? it makes it easier to develop great relationships with our suppliers. now everyone, everywhere loves jerry. they sure do. they do. they really do. mmhmm. workday. finance, hr, planning and spend management for a changing world.

♪ ♪ finance, hr, planning and samazing...ement jerry, you've got to see this. seen it. trust me, after 15 walks ...it gets a little old. [thud] [clunk] [ding] ugh...

frank holland joins us now with more on this domino effect. is dom chu there no, i see domino, i immediately think dom chu. this is different. >> a big difference, joe this is about the supply chain and a shortage of truckers now at 80,000. mit says the backbone of the network leaves about 40% of hours every day, they are sitting in traffic or because of weather because of new mit data. that's one factor creating this historic trucker shortage again which sits at 80,000, according to american trucking association. major truckers night swift and

jb hunt, big container moves, citing driver's shortages and recent earnings, many big box raising pay or signing a shortage as a pay wind pay isn't the only factor according to trainees at the trucking school at xpo logistics. here they get paid by the hour to learn how to be a trucker and paid by the hour when they graduate they will also get to go home every night and that's a major factor for trainee christian young. >> getting paid by the mile would have been a little bit of an issue for me. that work/life balance f. you get paid by the mile, you are gone, you know, for a large stretch of time. that really wasn't my thing. >>. >> reporter: the data say truckers make about $26 an hour. the president says, that's not really the reality for most long

haul truckers. >> >> out of that 48 grand is likely going to come 10,000 or more of living expenses on the road and you're working 80 hour weeks. >> reporter: it's certainly a challenge for the u.s. supply chain, 1 million truckers are needed over the next decade to maintain the currents level right now. >> wow, that is a huge number, frank. >> absolutely, becky a. lot of competition from jobs like amazon and walmart you don't have to be away from your family. you get to be home every night. >> thank you, frank holmes when we come back. shortage of airlines and tsa workers will add to the stress of traveling this weekend.

we're going to speak to an analyst after this break in the meantime, take a look at the futures, barely down for the nasdaq and s&p it lost a big gain it had seen earlier in the session right now the dow futures indicated up 14 pots the nasdaq off by 35 "squawk box" will be right back. s of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq ♪ ♪ cases of anxiety in young adults are rising as experts warn of the effects on well-being caused by the pandemic.

♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ [energetic music throughout] what's strong with me? ♪ ♪ i know when i'm ready to run. what's strong with me? i can find strength in a rest day. what's strong with me? there are some nights i sleep so well... i'm ready for anything. find out what's strong with you with daily readiness on fitbit. small businesses like yours make gift-giving possible. now, comcast business has an exclusive gift for you. introducing the gift of savings sale.

for a limited time, ask how to get a great deal for your business. and get up to a $500 prepaid card with select bundles when you switch to the network that can deliver gig speeds to the most businesses. or get started with internet and voice for $64.99 per month with a 2-year price guarantee. give your business the gift of savings today. comcast business. powering possibilities. welcome back to "squawk

box. airlines braced for a surge of travelers this week. the tsa expecting to screen now 10 million air passengers compared to 26 million two years ago in 2019, joining us to talk about the industry the global sector energy at third bridge how do you think about it, peter? >> well, we know it's coming, there is demand, people want to tra travel the question is can the airlines and airports execute like a lot of industries, they're finding workers tough to come by. you were talking about truckers there. we put airlines in that category as well, so, it's been a struggle but at least as far as the holiday season goes, we've known that this is coming. it's been invisible and the airlines are trying to step up for it >> can we talk about the airlines just in terms of what

has happened.pandemic given what they put up to keep them rolling and we have seen so many issues along the way in terms of staffing, oftentimes of rained-on weather. i don't remember these types of weather events prior nobody is claiming, there is people that think the weather haschanged and it has not like this. what do you think has happened underneath this? >> andrew, it wasn't taxpayers, it was capital markets as well, the liquidity was available to this industry in all forms and our experts till that restructuring never had to happen as a result and airlines were able to cling to slots, gain, routes, through the pandemic and now they can't staff it in a lot of places. at the same time, there had been this emerging pilot shortage some was demographic some competition with the

military who started paying people more but also producing fewer available pilots to the industry so it's always rolled up into this point where it's an absolute struggle at all points of the travel value chain. >> we talked to sarah melton yesterday and if taxpayers hasn't stepped up and ponied up money, we'd be in a much worse situation, the airline and the economy would be a much worse situation. is she right or should we not have paid up >> i don't know if we should not paid up, i mean, a lot of industries got support i mean, it's better to have the money, i am sure anyone would tell you that but it is a question of how it's being deployed depending if there is a lot of competition out there in the airline industry and you know the different airlines are dealing with it in different

ways so they're competing with each other over the same workers. it's causing turnover. ists not just poilts, cabin crews, things like thoochl it's leading to this situation that we're frankly struggling to deal with. >> who is the winner in this when you look at the airlines you think are succeeding, which ones would you spot? >> well, the one our experts have pointed to has been jet 3w4ru. this alliance with american we think does happen. their entry into the business travel market has been the early returns are actually kuwait good and they're broadening out to london so those are potential upsidedown the road. but the american alliance will help with more international travel and compete with delta, particularly here in the northeast where we are >> most troubled airline in your

mind >> well, the one our experts have been poipth to has been southwest. i know we had this weather situation a few weeks ago. but the thing is at southwest is that it's no longer a low cost airline, they're facing more competition from the spirits and the allegiantings s /*s that hav fundamentally lower costs. it led them into a deal with saber. they have moved into airporting like o'hare and bush continental. airports traditionally did not seek they're finding more competition. finally, they're facing lo bar challenges they seem to be a bit more acute than the average airline whereas other airlines you can get faster promotion through this pandemic, we had

airlines that started up and got fu funded the opportunity for promotion is faster in other airlines than southwest. at the same time thai there have been some complaints about contracts and work schedules, southwest has been the one where we've seen the most struggles. >> would you be long private aviation i have to say, i think that that's maybe where a lot of this goes i know it's going to create even greater down the road, if you will >> well, we have seen the travel shift there. the question is what we don't know is how stricty is it going to be? it will come down to costs but it is something we are watching. peter, good to see you happy thanksgiving. >> same to you, andrew >> you bet >> when we come back, theranos founder yelz beth holmes taking

the stand today. we'll bring you the latest updates from san jose next plus, don't miss our exclusive interview with alex karp to talk about the public debut. stay tuned you are watching "squawk box." this is cnbc ♪ feel stuck and need a loan? move to sofi and feel what it's like to get your money right. ♪ ♪ ♪ ♪ move to a sofi personal loan. earn $10 just for viewing your rate — and get your money right. ♪ this is the new world of work.

and get your money right. each day looks different than the last. but, whatever work becomes, the world works with servicenow.

breaking news, the u.s. launches an attack on high oil prices the biden administration will tap the strategic petroleum reserve to bring more crude to mark it's a coordinated move with other top oil consumers around the globe. meanwhile, more key retailers are reporting earnings this morning. results coming in from best buy, dig's sporting goods and more ahead of the big black friday sales event and what business can't be improved with big data analytics? well, the list of applications keeps on growing we will be talking about all of that in a rare interview with the ceo of palantir as the final hour of "squawk box" begins right now.

>> good morning, welcome to "squawk box," i'm joe kernon along with becky quick and andrew ross sorkin the futures have been around the flat line more or less after what looked like was going to be a good session, which petered out right near 4:00. the dow and nasdaq got hit hard. the dow is up a little about 37 points, nasdaq is down again and the s&p is down a little bit over less than 2 points, though. treasury yields significantly back above 1.6% this morning 1.667, in fact we haven't seen 1.7 in a while it could be today. >> you this i? that would be a pretty significant move >> bhmaybe 1.68 ing in shromething like that treasury secretary janet

yellen applauding j. powell for a second term. biden was widely believed to be deliberating between powell and legal lael brainard. she was nominated for vice chair. >> i am very pleased with his choice i had the pleasure of working very closely with both j. powell and lael brainard and they are consummate professionals, support in independent fed, are completely committed to the fed's dual mandate of maximum employment and price stability and have amassed tremendous records. i have confidence in them and i believe they'll have broad support among congress and the public and can be counted on to do an excellent job. >> also, commenting on

inflation, yellen acknowledged that it has reached a level that's concerning to most americans. she says the white house is doing everything it can to address supply chain bottlenecks and the fed must make sure prices don't become endemic when it comes to a pandemic, too. samsung is planning to build a $17 billion chip production facility outside of austin, texas, according to source who's spoke with the "wall street journal" which says an official announcement could come as early as today the biden administration has been trying to make domestic semi conduction a priority after exposing gaps in the supply chain. check our shares of abercrombie and fits and urban outfitters, abercrombie saw that, a 30 basis point drop in its profit margins while urban's costs jumped in the last quarter, abercrombie and fitch down and wale be

talking more about this morning's retail results in a few minutes. >> meantime, the other big news, president biden saying the u.s. will be releasing 50 million barrels from our emergency oil reserves, but is it really an emergency? the big question of the morning, brian. >> i guess it depends, what kind of emergency are you talking about energy, weather or political who knows? all right. so here's the news, the president, well, basically we broke it earlier, ylan mui adding as well saying 50 million barrels will be sold and exchanged via the fpr. there is a difference. 18 million is already in pre-range sales, a sale is you are selling to the highest bidder 32 million, the new number here will be done in an exchange. exchange is basically i give i some oil now you pay me back later. the exchanges would normally go to a refineer, exxon mobile, chevron, we don't know who the

exchanges are with yet it's not determined. the idea here ostensibly i suppose are to reduce two things, reduce gasoline prices, that averts political damage i think also, maybe, guys, there is an opportunity here to go after opec a little bit. i'll tell you why, by doing the exchanges, let's say an exson or chevron, bolero, you are reducing the short-term need on imports, we import oil per day primarily for the middle east. there is no shortage of oil in the united states. so by giving the exchanges to u.s. producers, perhaps you reduce their need to buy oil elsewhere, ie, from opec the question is, will opec, the saudis, react to this move and maybe rethink their plans to add 400,000 more barrels a day, of course with covid in europe 57d talk about emotional mockdowns there, they've got cover they've got the cover of covid in europe to say, we don't know what will happen to the global

economies. it's getting cold in parts of the united states, covid cases are way down from two months ago, covid gives them the cover to do what they want to do we'll see what kind of reaction. by the way, this happened twice in the last 15 years, releasing the spr, 2005 during hurricane katrina, of course, a drew crisis 2011 during libya, both times when that happened, the price of gasoline was higher a year later. >> brian, i can't tell if you are suggesting underneath this, you think this is a mistake, this really isn't an emergency >> yes, it's not an emergency i'll just say. i won't suggest it i know i haven't read anything that suggests it's an emergency. >> is that what we're saying here >> i think we've got a president who will come out today at 2:00 and wants to lower prices for the american families, there are not many levers they can say this is one of the few levers that they v. you look at the

overall, they can't do anything about the price of milk, they can't do anything about the price of housing they can't do anything about the price of cars. that million barrels, we you 18-and-a-half to 19 million barrels a day. so you are talking two days of use. this is more strategic, more symbolic, programs, and maybe more sort of a knock on opec as well and the point i made earlier in the program, president biden has been fighting with opec and oil since the mid-70s. he got elected in '72. we had an arab embargo, a gas crunch in the early '80s my dad used to watch fist fights he co-sponsored the nopec lex lams, the president has a 50-year history of dealing with energy woes at opec. maybe this is a preemptive strike against higher prices as well is it a need for oil no, we have plenty of oil. >> does opec look at this and

say, oh my goodness, this is a problem or shrug their shoulders and say, this is a joke? >> i think it would depend on which member of opec you were to ask. i think if you go to the emirate, they will say, we will work with them the saudis, they had born a brunt of the production halts. they're coming back to market fairly aggressively now. they have been spearheading this $400,000 barrel plan these opec meetings have been rubber stamped we have a meeting coming up, i would not be surprised if opec didn't rethink hor adjust that 400,000 new barrel increase or at least the gest or consider they might be considering it you have iranian talks and iranian crude could be coming back to the market opittsburgh has natural cover to make some adjustments instead of

saying, we're going after the biden administration no, they're never going to sigh that they might adjust it and suggest, ksug suggest, we got covid, iran may be coming back this announcement is in conjunction with japan, and minor players that basically import almost all their oil. they don't produce it. it remains to be seen. like i said, we've done it twice and both seatimes oil and gas prices were higher will it have the desired economic effect or political effect i'm not a political expert clearly, there is a measure of politics in this whether it's 100 or 10%. i don't know >> it may not have the same impact we'll see. brian sullivan, thank you for break it all down as candidly as you have becky. >> thanks, andrew.

joining us is more is the founding partner and cnbc contributor. let's start with the idea of is this going to be effective short term and then long term in >> i think in the short term, becky, there will be a momentum killer we have been experiences. opec plus and the saudis have been stingy with their supply. they could easily have put more in the market. they are engaging in a terrific self interest by limiting the increases of oil roduction that's what's helped these price is grind higher and higher up towards $85 per barrel and potentially higher if we haven't hit speed bumps with covid and been blessed by a rather warm winter, fall/winter season so far. so this is a terrific move look, the economic recovery out of the pandemic has been

terrific if you want to keep it going, one of the things we have to do is keep energy prices on the low side and we're getting to the point now where prices at the pump are starting to be an irritant, starting to get consumer confidence, it's something you want to strike back against i think this is a terrific move by the biden administration. we're up against an oil syndicate that works in their own self interest against ours i think it's a great move. hopefully, it will get us through the winter and we can reset. >> this is politics being played, but smartly. maybe not just because it's our spr we're talking about but because he went out to india, china, japan, got them the same thing. so we're our own little cartel to fight back against their cartel >> exactly the nations are fighting against the syndicate and putting a line in the sand if you will, speaking their language to say that you know you got to work with us here if you want this recovery and

the oil demand rebound has been phenomenal we're almost back to where we were pre-covid levels, 99 million barrels a day or so globally to bring in the other consuming countries was a real i think stroke of genius that's never been done before we've always tried to go out on our own over the past several years. probably the most political packing was done by president clinton in 2000 right before the election then. it had limited effect. it was kind of an act because anybody and their brother could put in for some of the oil somebody and 34 brother got some of it. like i said, we're at the point at the pump pricewise it's starting to undermine consumer confidence that's the last thing we need as we come out of the pandemic. >> if this is us saying we will fight you on your own terms with this how do they respond? do they pull back the 400,000 barrels that they have been talking about the additional

barrels in >> the saudis, in particular, talk a big magnanimous gain to ensure the industry and the global economy they have skwaukd abou"squawk"ed about this already they said they re-visited putting another 400 million on the market in response no a coordinated spr release. i think they'll show their true colors if they're not working to help us all get out of the pandemic recovery. they're looking to line their pockets at our exat this point and the western economy's expense. let's see what they do i think they will lay low and continue with their sort of stingy increase plan but i think it's a jump ba below at this point. >> where does this get us to the longer term? the key to our independence is we have been drilling so much here at home does that change does that picture change at some point? and do the big oil companies get

back to the point where they want to put more into capital exploration than capex and oil and exploration than we are right now? has that changed indefinitely, because that's not what investors want to see right now? >> i think that obviously the negative oil pricing of the pandemic here should render many in the industry. we are slowing making a comeback to levels we were pre-pandemic i don't know if you have this rent am of pressures on the big oil companies in particular. so they're not going to necessarily rush out and try to ramp up production, mostly because they're getting pushed back like you said from their shareholders and new fangled board. but the independents are making their way back into the field. they're having the same issues with logistics piping and personnel that is so much in the economy right now. we'll get there. with praises where they are now,

even if they were to turn down to the 60s, we would still see growth in u.s. oil production. it will continue to come back, particularly because we enjoy a tremendous export market these days we export upwards of three to 4 million barrels a day to the global market. we're helping keep a lid on prices as well, this is a global commodity, obviously so we're in a good position. we don't want the price to crash again, that would wreck us and certainly set us back in terms of energy independence or self sufficient circumstance but you know, these prices are good. we don't want them to get too high, opec has been letting them do >> to your point, this was the right move politically it puts pressure on opec thanks for being with us, john >> thank you, becky, happy thanksgiving we come back and wrap up for this morning's retail earnings and the latest on elsette holmes, spending her second day on the witness stand

then palantir as many as ceo will reflect on his 91st year as a public company tus.ahead when "squawk box" returns.

it's another day.

and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. only comcast business' secure network solutions give you the power of sd-wan and advanced security integrated on our activecore platform so you can control your network from anywhere, anytime. it's network management redefined. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities.

. this morning's big earnings report comes from retailers. courtney reagan joins us with the details on both. hi, courtney >> hi, good morning, joe dick's is blowing past earnings and comparable sales raising above current estimates putting up stronger margins in the forecast digital sales are up 1%. up 97% compared to 2019. dig's sporting goods shares are down about 4%. still up more than 140% area-to-date i spoke with lauren hobart who said they finished the inventory up more than 7% and feels that it has the right merchandise to be what /* what it need. se says 8.5% sails incracy came from increased transactions and a small amount of inflation

wasn't meaningful, promotions were lower in the quarter. she expects promotional levels will be lower than in years passed this holiday quarter. best buy putting up stronger than expected quarter, beating on earnings, revenue and comparable sales it does bracket expectations margins, though, did fall, current comp sales are up. the street was looking for a slight decline, digital sales fell 10% last year u.s. online sales made up 31% of total sales down from 35% last area but up from 16% in 2019 best buy says same day delivery was up 400%, nearly doubled the items in one day compared to last year. appliance, home theater and mobile phones drove the quarter. it seems that shares are weaker by 12% on bottlenecks in the

supply chain and potentially weakening demand i will speak with best eye corie barry on "squawk on the street". joe, she doesn't give a lot of interviews, so we're looking forward to this one. hopefully, we can cover a lot of ground >> i was going to ask you, one thing after another. this is good, this is so good. are you so nice, courtney, it seems the shares could be under a little bit of down 12%. >> i'm not a trader. i don't know, i don't know why they're down 12% they are down 12%. i'm not trying to be nice, i'm trying to say we don't know for sure why they're down. >> giving them the benefit -- i guess it kind of reminds me of like a pandemic play, they were online they were making hay with the online stuff. >> total

>> you said it fell. now we're back to normal, that business is not growing as quickly as it was, maybe people extrapolated that into the future >> that is right that is possible we're running an ecommerce operation can in many cases be more expensive it is more margin compressive. the call is ongoing right now. corie barry said 42% of the digital orders are picked up in stores they're using those networks together are you right, lower digital sales is not something that we've seen from a lot of retailers so far this quarter. third quarter 2020 is when we were all sending our kids sort of back to school from home and so you really had to ramp up all of that electronics purchasing >> it doesn't hurt, i mean, look at that, it was like 30 or $40 two years ago, so that doesn't hurt either. and it helps explain what is really not that big of a pullback based on what, you

know, how far it's come during the pandemic. >> right exactly. exactly. >> okay. all right. thanks, courty when we come back, what we've learned from two days of elizabeth holmes testimony at the theranos fraud trial stay tuned you are watching "squawk box" right here on cnbc ♪ ♪ well would you look at that? ♪ ♪ jerry, you've got to see this. seen it.me, after 1s ...it gets a little old.

ugh. i really should be retired by now. wish i'd invested when i had the chance... to the moon! [thud] [clunk] ugh... unbelievable. unbelievable. [ding]

welcome back to "squawk box. this morning i want to show you the futures. the dew up 37 points the s&p 500 has been sitting around all morning the nasdaq off about 23, 24 points as we've gotten this news about the petroleum reserve being used, becky. >> that's right. also today, theranos founder elizabeth holmes will be back on the witness stand telling jurors how much she believed in her blood testing technology prosecutors say was a fraud. this is her third day on the stand. scott cohn is in san jose to tell us what to expect today. >> reporter: hi, becky it's her full day. she was on the stand for about an hour on friday and just about two hours yesterday. so, remember that a key to her defense against the 11 fraud and conspiracy counts she faces, she never intentionally deceived anyone that's what the testimony has

been about so far. under friendly questioning from her attorney, she talked about the early successes, how they seemed to manage to miniaturize an automated blood testing system she said that was a really big idea about the work that they were doing on monitoring the progress of a drug in the bloodstream in looking for disease markers from tiny samples they were working on these things, she said, with some of the biggest pharmaceutical companies. contrast that to the government's case over 11 weeks, they had insiders saying she glossed over problems and lied to investors well, the defense says elizabeth holmes was a true believer in her company and technology until the bitter end >> in retrospec, do you think you spent a little too much dwelling on the positive things you testified about today and

not enough ptending to the problems >> reporter: now, to be clear, if she had just done that emphasized the positive and de-emphasized the negative, that would not be a crime that is another key to the defense here that failure is not a crime. the government is going to try and question her about whether she did, in fact, lie to investors about what was going on but it looks like they're not financial to get a chance to do that until next week she will be on the stand today all day for direct testimony then it's the holiday weekend. there is no court tomorrow the hope among defense appears to be jurors will be left with an impression of elizabeth holmes, earnest, a believer in her company never intended to lie to anyone. >> but at some point, they will get to cross examination her it's that last effort that will be left for the final thing the jurors will be thinking about before they go in. the question has to become, you thought this worked, but the results showed otherwise

did you not see those test results? was there not a moment when you questioned some of these things? it seems it leaves her opened on the cross examination. >> yeah, remember, again, if she glossed over the negative test results, maybe she saw things and didn't do anything about them that is not a crime. failure is not a crime it's what she told her investors, patience and doctors. that's the heart of the government's case. she's going to have a lot of tough yes, sir to answer you are absolutely right, when the prosecutors get their chance next week. scott, thank you good luck today. coming up, in just a moment. we've got a rare interview with the ceo of business analytics firm palantir, how they plan to use da ta to beat future pandemics. take a look at the price of crude oil falling the

administration plans to tap the strategic oil reserves to try to tame oil prices. we'll see whether it works right now year at 66.67. you are up whating "squawk box" on cnbc.

[crowd cheering] i'm not a coach, but i invested in invesco qqq. which gives me access to next-gen statistical analysis software. become an agent of innovation with invesco qqq.

welcome back to "squawk box. it has been just over a year since palantir made a debut. they make software and an littal tools reached profitability and seen its commercial beings double shares are down 10% in 2021 after arriving at 88%, training us in a rare exclusive interview. it's great to see you. it has been a year what a year it has been, government revenue up 34% year over year q3, i'm looking here, looking at commercial customers up 135%. when we talked you gave the listing, you think that this was in the offing? >> well, i guess important would

be to ask if anyone else thought i was in the offing. i think we've hood a you know a rare successful history at palantir we began almost two decades of providing software platforms to the u.s. government allies we are very aligned with our customers and with our owners. we are building products that we have come to see or at least five years in the case of our products foundry, maybe a decade asediment we have built and will be delivering new products to the market we have a lot to be thafrlful for. i'm happy to be here before thanksgiving we are grateful for our success including disseminating the covid vaccine to every american, everyone in england. probably the dissemination of the vaccine, itself has saved hundreds of thousands of lives in america we were involved in helping in

afghanistan of late and, of course, we're quite content with the fact that our results are being seen by the world and we're planning to deliver more results. >> alex, you stand to pen, palantir stands to benefit because of this bill in temps of the build back better bill, are you had advocate of both in. >> well, definitely on climate, i mean, you know, first of all, obviously, in general, macrotrends are macrotrends that we thought would happen with some surprises, but what in climate is basically helping people to understand at a granular level the compact carbon foot print they're carrying in a way that's transparent, similarly structural in the context you have to granularly track things across large data sets that have to be done in a way that

transparent to a third party, non-technical people can understand what you are doing. the products are build to do we have a lot of experience in industries creating carbon foot print and well ahead on product developments that will be critical in that area. in general, palantir, we benefit when societies or institutions focus on a problem and we've seen that in the anti-terrorist context. we don't, we're not inherently directly correlated as many people the i to elections or particular spending. our job is to deliver the world's best products to our clients in full alignment with them then their job is to evaluate it and buy it, so, obviously, there will be a lot of opportunities for us primarily, i think we will benefit from the fact that we have been looking at data, data integration issues, issues in fact are eating the whole world.

we have been involved and we have ways of developing software products just significantly ahead of other people and we will benefit and our clients are benefiting >> let me ask you this over the last 20 areas, the enemy, if you will, for u.s. and its allallies, which have helpe with has been terrorism, anti-trick, in particular. increasingly the conversation moved away from terrorism and the middle east and more towards china. what do you think ab that? and what role do you think you have to play in it >> well the public drugs has moved recently as you know from our many conversations, we have been focused on what we've call the software war between america and its adversaries, we have been saying over a decade, this is not a conflict that's linear so it's not like other conflicts where one country has a slightly

better plane than other, another has a much better boat than another. we saw where one country develops a nuclear bomb. they set the rules we have been saying this in public, in policy circles for well over a decade and because we have been saying it in the public, we have been focused on this in private for well over a decade a lot doesn't see the public eye for obvious reasons. we have been focused on what's generically called ai in the conflict or worst setting for a long time, biddings on innovations, the way we deal with data in bulk and data at the edge so it's a part of this conflict, our basic thesis this is a winner take all, the u.s. and allies must have the best software in the build, silly con valley has changed somewhat. but we were well ahead of

telling people externally, this is something we need full alignment on we occasionally listen to ourselves, we built what we believe are highly differentiated process, using machine learning and next generation ai and also, yeah >> i was going to say, you have been, though, critical of other silicon companies that have stayed in china, what do you think of those still doing business in china, the biggest, of course, is apple? >> you know, we believe in palantir in full disclosure. if a country wants to work in adversarial country, i think palantir, we have argues, many times those views have been confidential we moved because they were too confidential we are an international business we defend the u.s. government and western governments all over the world. we have a massive business all

over the world, in the middle east we have certain values we stand by inch you want to work in china or any other country adversary, you should disclose it and defend it our view, though, is slightly difficult. you should work where you can justify internally and externally however, if you do not work with the u.s. government, you should disclose why you are working and that's been our position we, of course, are proud to make things that make us stronger and put us in a decision where we decide what the ethics will be, we and america's allies and therefore influence the world in a positive way. >> you have left denver, you left california to go to denver a. lot of people have moved their head quarters to austin, what do you think is happening in terms of california and this larger trend

>> well, i mean honestly i think people leaving will help california quite a bit n. reality, california has a lot of advantages for building tech america is still the strongest technician in the world, certainly when it comes to software, defined, california feeds competition and by the way, we need we left because it baltimore a monoculture politically. we believe in a culture where everyones gets to have an opinion. short term, it's a huge problem. >> i want to ask you about the stock which, of course, has done quite remarkably i want to read you something an get your feedback on it. this is an an his who pro the following. on the one hand, palantir exceeds its growth estimates, expanding rapidly, further the business model is highly scalable on the other, they are not wrong

to criticize the cash earning problem and stock compensation which keeps deluding shareholders to omight havion. >> you know, let me tell you a story of palantir that will answer your question not the typical obfuscation you are used to from corporate executives when we went to silicon valley and said we will build software programs for the u.s. government they said why would you build for the government in they are hard too work with, and data is useless. no one will believe the product war. something fully align with your clients is not smart you should turn your clients and the u.s. government said build your product in the way we want, powerpoint developed by someone who was not technical for something necessary in the '70s. we didn't do that we built a number of products now on the market and winning in the

market to do that we've hired the best and most interesting eclectic people in the world. they work at palantier for lots of reasons we continue, we will continue to develop these products and continue to comp people and we are very, very focused on being fully aligned with our clients and actually aligned with people who own our stock. what does that mean in the real world? it means that we will continue to be very focus on delivering value. we will continue to comp people. i don't believe we are deluding people into obolivian. it's interesting about the analysts, many of whom are highly substantive, defacto, they're saying what the gems used to say to us. build a product we can understand and then we'll reward you with capital we are building the product our clients needs and the world needs and we believe over time and we have already seen this, the world will reward our shareholders that's basically our views >> alex karp, it's great to see

you. it's been a great success story. we look forward to following your progress and wish you a happy thanksgiving. >> i wish you a happy thanksgiving as well coming up, we'll get to jim cramer and get his first take on the trading day ahead. take a look at the shares of zoom video the company did a better than expected third quarter results, but slowing sales growth the ceo will joins live on the show tomorrow. you are watching "squawk box" live from the nasdaq market site te'inims square te'inims square >>us to go further. ♪♪ it has our back. and goes out of its way to help. ♪ when you start with care, you get a different kind of bank.

truist. born to care.

let's get down to the new york stock exchange. jim cramer joins us right now. i want to talk to you about the news of the morning, not spr but coordinated with other governmentss we kind of known this was in play but we did see a reaction in the oil markets today. do you think it lasts? >> no i think oil has topped for the year but i do think that the stocks are telling you that this is just one time. watch chevron. chevron did very well yesterday. i'm not thinking sha great deal. chevron, i also like pioneer but i just think that this is just considered to be a one-off. what's kind of weird is that the u.s. companies, nothing to do

with aramco. so i don't regard it as being significant. i find as the stocks go down, you want to buy chevron. i met with mike wirth last week, it's really good >> i agree what we're seeing is because of the u.s. oil companies not drilling it's what we're seeing with covid concerns, raising in europe and other places and that demand picture you saw this break before it i like what we heard earlier today from kilduff who says, at this point this is a kind of in your face deal with opec we will deal with you the same way. i hadn't thought of that aspect until he said it >> do me what matters is demand. demand is okay i don't think that -- look, i know the covid numbers are bad right now. but i also think if you look at things like what phil le beau has been talking about travel. if you look at bookings.com, the travel is unabated i would hesitate to pie these oils

i think they will have a good quarter. >> that's huge >> jim, i was listening to you yesterday about the announcement of powell coming out i haven't had a chance to talk to you about what happened afterwards watching the stockmarket, it was like good, there will be continuity by the end of the day, wait a second that means hikes are coming for earlier rather than later? >> right that's what the two are saying it's what some of these great growth stocks are saying i think this is all false, i recommend that you buy lower price stocks i don't know how much these cloud stocks have underneath i don't know if there is buyers for them this is a seasonably great time. no panic obviously, the market got a little inflated. we will go back to i think liking the stocks, including the financials that are selling 11, 12 times earnings, a little safer ground >> i know how you feel about

testing. i have been going back and forth all morning, are you going to ask people to take a quick at-home antigen test before thanksgiving dinner? i'm not sure why people get so angry, it seems like a simple o. it seems like a simple thing >> you have to do it we've got dozens now we test ourselves constantly when we're in california and i've got them everywhere and i think it's really important. the idea that -- look, i'm a triple vax, i think it's incumbent upon everybody to test constantly so you don't give it to each other. those who don't want to test are -- they decided it's fatalistic i don't want to laeave it to the fates. i don't think it's political. >> i don't think it is either. if you have questions or concerns, this should ease your mind you can still get together with the family and have a great

thanksgiving dinner. >> i tested myself five times in the last seven days. >> i think i tested twice. >> you want to protect other people this is about not protecting yourself, this is about protecting others and caring about other people. >> totally right >> jim, we'll see you in just a few minutes. by the way, we want to remind everybody about jim's new investing club with cnbc you can find out more at cnbc.com/investingclub "squawk box" will be right back.

what's strong with me? i'm ready for anything. find out what's strong with you with fitbit charge 5 and daily readiness.

(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.

major currency moved to tell you about, the turkish lira plunging to a record low. >> we have some charts that you don't see that often turkey provided the world a lesson this morning of what happens when the essential bank loses its independence the lira crashing this morning after the turkish president applied pressure on the central bank to cut rates and the central bank complied and now it takes a 12 point something, that's going down. as recently as september, it was around 8 and change.

this one you don't see often either they've cut rates by 400 basis points since september while inflation has moved from 8% to 20%. they don't usually go their separate rates on policy rates and inflation. the largest move since march and it comes after erdogan called for lower rates. he said in an interview overnight, i reject policies that will contract our country he says he wants a lower exchange rate and it means higher inflation and sharp declines as foreign goods become dramatically more expensive, a place -- remember that when i lived in moscow. it would be 25 and then 50 when you got home >> it's gobbledygook coming from him. everybody is going to keep their jobs, we're going to keep

working. we're not going to have an economic contraction it doesn't make sense. it's weird, steve. >> it does if you read half of the economic textbook, right you can cut your currency value, but you won't get any investment because people won't come in and invest you're going to make things cheaper there. he's gotten half of it right -- >> there have been arguments that some of the southern european countries should have kept their currency to devalue them, instead of having the euro turkey has the opportunity to devalue their currency we'll see whether that's the right -- i don't think it is but we'll talk more about it, it gets a little bit weird to talk about all of these things, steve. keep an eye on that, thanks. let's check on big tech names.

the stocks right now, as you can see, after yesterday's sell-off. and nasdaq and several of them let's get to -- joining us now is kari firestone as well as cnbc contributor markets reporter for "the wall street journal" money and investing team and a cnbc contributor. your comments, both of your preinterview notes, inflation is front and center and if the backdrop of the reappointment of jay powell but, you know, that's where we are. and you point out that his reaction, if inflation is not as transitory as we hoped, his reaction is going to be key to what happens to the stock market >> that's right. that's been one of the biggest wild cards of the year you and i have discussed

does inflation stick around for much longer and that's going to alter the path for these tech stocks which took a big hit yesterday. people are trying to figure out, what are the winners and losers of the next phase of this economic recovery and the next phase of monetary policy we're seeing that with zoom premarket, down 8, 9% as sales disappointed and with other tech stocks throughout the week, with the faang stocks, the chip makers taking a big hit. >> i wish we had more time, but you point out that the market was relieved because they know jay powell -- participants know jay powell but that begs the question, is the market relieved because he's going to continue to leave the punch bowl where it is, or are the markets relieved because they think he can be effective in stemming inflation? >> well, the market likes what it knows better than what it doesn't. and brainard would not be the

first choice clearly she would be controversial and the market was saying at least we know this guy. we know there's inflation. the market is positioning itself with the understanding that inflation is here. it could persist and we've had this rotation where companies that are able to pass on some inflation, if you look at -- moves in netflix or crm, microsoft, these are all subscription models that have built-in inflation hedges and that runs across the gamut countries who don't -- and we're seeing that part of the market moves over the past six months it's why we would favor those types of stocks where you can be fairly sure that they can price more to their consumers, whether they're industrial or people in late positions or you have a

subscription model where, you know, the price goes up and people take it >> okay. we're going to have to end it there. we have -- don't have a lot of time left. thank you. we're going to go. becky, andrew, happy thanksgiving make sure you -- we have "squawk on the street" coming up next. ♪ good morning welcome to sid"squawk on the street." i'm carl quintanilla with jim cramer and david faber the white house announcing that spr release of crude oil, europe's covid wave intensifies and there's pain in specialty retail yields are up after the powell news and the vix is approaching 20 jim, we have a lot to work with this morning you've been talking about the oils you've been saying it's demand-driven. you said you would buy chevron here. >> yeah, i talked toik