the nasdaq up by 212, and gentlemen, that was quite a show we're going to do this against tomorrow right now, though, it's time for "squawk on the street." good wednesday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer david faber is in houston with exxon ceo darren woods exclusive. we'll hear from hi in a few minutes. futures are group. oil is back to 68.

as you say, carl, there's a lots of volatility in oil prices just this week we'll also talk about any released a couple hours ago or so from the company, in which it codified many of the targets that it shared during the last quarterly earnings report, namely cap ex spending, how much money, $15 billion that it's going to be spending on the various initiatives under greenhouse emissions reduction projects, so plenty of things to talk about, and hopefully get into some specifics there, as shares perhaps rebound a bit maybe some of that due to the board signed off on plan that we have this morning, but as well, jim, also a relief rally in what has been -- well, you can see what's happened over the last week as well prices have moved quite sharply, haven't they >> yes, chevron is up a similar

amount, mire charitable trust bought some. i talked about it -- and but, david, i think what i need you to give me is the difference between ma mike wirth did and what's going on with darren woods. he does not seem to be committing to new projects that could be revenue generating. he just seems to be committing to cleaner skies is that an acrazz read >> -- accurate read? >> i'm not sure about that we will have that discussion and certainly will try to get you that answer. >> yeah, please do i happen to think this new board, which i know you're going to address, is perhaps the most aggressive board, the reason i've said it's okay to own oil

stocks again this is not a passive board by any means, right >> no, i think that is a fair point. this is an aggressive board. certainly we do know some of the members of it. a lot of different members of that board carl, that's one reason why this is newsworthy this morning in terms of the board saying we stand behind the numbers that management is sharing. >> meantime, goldman is out, trying to defend their target of 85 on crude. jeff curry has been bullish -- >> oh -- >> the market is pricing in a drop, which he says would be half of the original covid lockdown >> well, many a time in my 40-year investment career, i have made calls and those calls have been wrong. what i like to do is own them. if you want to look at the top

of oil, it was the $100 call this man is incredibly nice. i've known him no long time. that's all i have to say. >> do you think the market is overreacting >> yeah, friday's trading was absurd that would have been a good time to buy i think what we have seen is a peak le actual demand is between 60 and 70, where chevron makes good money. but jeff curry, again, i just think when you make a call that gets everyone all bold to go to 100 and then come back with a call today, it would have been fantastic with what i do, so far i'm wrong, and therefore you could say -- i was wrong.

you did say on monday that you didn't trust the bounce. that was a pretty good tip. >> i think today is much more of a realize tim view sit spoke to marc benioff, and then again, and then timely again. i am convinced that. squall -- is not worth a bucket of spit. that's what the vice president -- so i am -- those who are saying, you know what? i'm going to sell salesforce, i think you should look at the -- it's almost a netflix situation, where there was a currency issue, but slack is awesome, the slack buy may prove to be unbelievable there have been he would say my

growth is both organic and inorganic. the numbers were extraordinary there. they're still growing in order my advice is where -- and think that mark is frankly lost his touch and bret, by the way, is killer hi killed dorsey he becomes the chairman of twitter and then co-ceo, he's so milled-mannered, but that's a velvet fist there. salesforce sergeant going to take a bit off the dow

>> 26.4 billion for this fiscal year, and jim, we gave guidian, we're going to 31.8 billion, so we only -- so this is a very fast-growing business. >> you think this can give co-ceos a good name? >> i still they, of course, he's sensational. he's a patriots fan, that's a big mistake, though they may go far. i do think marc had in his book a definitive reason why he wanted a co-ceo. he likes to tame time off to recharge you need a co-ceo to do that bret closes. let's put it that way. marc opens, bret closes. i think that's a fabulous co-ceo

role bret is from google and facebook those are heavyweight pedigrees. >> we were reflecting on the month of november today. among those down, there's big names f. zoom, roku, paypal, baba you think can be will be different? >> yes i'm doing nigh outlook for the investment club. people should sign up. i would sigh a bowen backs in paypal, i don't know if you have dan shul man dan shul man, he took me aside from paypal, and basically said, this is it, the line in the sand unbelievable numbers coming. he's tired of it the times -- this is a stock i've been recommending since 45. the times i've seen dan tired of

the selling, it was wrong to keep selling >> buy now pay later was up fivefold >> hi's bigger, and he was not willing to give away his company to get more from amazon, and amazon confirmed a deal where it got a lot of stock did he consider pinterest? he considered a lot of things. i think that story was leaked. it was not what dan wanted what dan is focused on is winning, and he is a guy that you don't want to bet against, yet many people are betting against him. they're betting against mastercard, that announced a buyback. capital one got recommended today. the credits card revenge moment is now >> david, you said you wanted to hear what shul man would say >> i did i want to hear exactly what he

said that gave gave you the confident. >> i think that's a great question. >> what is it that he shared that makes you confident. >> one, he shared the growth rate after paypal gets rid of the last of the ebay overhang, which is so tough to predict, it's obvious that ebay is not sharing anything, but after they get rid of that, it's only 2% of the business that will be good. monetization of ven mo venmo is a powerful consent. i think the next move might be in the stock market. >> what do you mean? >> i think he would cover a wallet that offering whatever he wants. he has a company that has decree 20-plus percent growth and

there's no respect being given remember when wells was going to destroy paypal, when j.c. penney was going to destroy paypal, david. did they >> no. >> did they? thank you. i didn't know if it was a glass or you just was completely dissing me like a dead dog or something. [ laughter ] when we come back, david is exclusive with darren woods. we'll talk about oil prices, the board, when "squawk on the street" from the nyse continues in a moment.

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the street." i'm david faber on the houston campus of exxon mobil. a nice background behind you, by the way. i'm told it's the drilling fluids analysis that's going on. not what we're here to talk about today, but very glad we could join you we are here to talk about the release where you k0d fitted many of the targets that you shared, so what is different today about why people should

think about these numbers, again, if they saw you talking about them a few week back >> well, we're welcome to have you here today, and show you a view of the lab and some of the things we're doing what we did in the third quarter earnings call, we just had a preliminary view with the board, shared the perspective of the things that the board was looking at in november we finalized that plan this release puts more detail be hind of numbers, a plan that, frankly we're very, very proud of we set some fairly aggressive targtsds, like for 2025, to double earnings in cash flow the pandemic got in the way of that, and set those plans backso double earnings in cash flow the pandemic got in the way of that, and set those plans backs. so we're very proud of the

progress we made, despite the setback of the pandemic. >> a lot of focus last quarter on the $15 billion number, but a bit more detail behind it. green did not house gas emission reduction products over the next six years. there are those who want to know what the return will look like on that expenditure, and how will you go about spending it? >> it's a mix. what we tried to do here, one of the things the board has brought to this year's plan and discussion is challenges to take a lead, and how they can address this challenge, that portfolio of doctor 15 billion includes projects that today generate got returns. there are other aspects of that portfolio, where we are developing projects, seeding projects in anticipation of policy trying to address them in a way

that can inform policymakers on how best to shape policy. >> so the houston hub we proposed is a great example, where we have 11 companies collaborating to make a significant step change and emissions. very eye concentration of co 2, which is -- that's a great camp, but it needs some policy to help support that project. >> what's the policy. >> the infrastructure bill has helped to regulate core space. we'll knee infrastructure and pipeline we need additional incentives for carbon reduction that's being considered in the build back better legislation. so the policymakers are receptive to the ideas and the constructs we're trying to put together, you know, to table

opportunities and make significant reductions in a cost-effective way. >> so if you see those policy changes that you're talking about, is it possible that you will choose to increase that number or is that number going to be what your shareholders should expect >> if you look at that number, last year, we more than quadrupled it. it's more of a function of finding the opportunities around the world. we're working with governments around the world i would suspect if those policies come into play and provide the necessary incentives, you will see that investment level go up >> there's a lot of carbon that comes out of there, but we're not in a technological place where we can suck it out of air in a sufficient way and store it somewhere. >> that's the holy grail if you could leave the existing infrastructure in place, which is very efficient, and find a way to extract co2 out of airs

t. that would be -- i think you neath knew to spend tech -- money on that technology, have some breakthroughs there and developed a broader portfolio. predicting the magnitude of that breakthrough is challenging, i think direct air capture is an important technology. >> when you talk about carbon capture, which is an important part of your portfolio, you talk about leveraging your advantage, and science and technology give our viewers some sense as to what you're talking about when you say that. what is it about exxon mobil that givesyou the confidence that's where you should be focused and where you can distinguish yourself, as you say, in terms of being unique. >> if you go back and look at our 135-year history, our job has been to discover and develop hydrocarbon and transform it

into products that consumers need, and to manage the impact of that hydrocarbon. we're talking about a variation on that theme of managing carbon and managing hydrocarbon molecules. today we're the largest sequester of carbon in the world. we capture more than any other entity in the world. we have a lot of experience in that space it's going to require large-scale projects which we have an expertise is it's going to be needed all around the world where we have relationships with governments it requires advances in technology where we spend a lot of money and requires an understanding of how to integrate those into existing facilities, which we obviously have a re large facility footprint. there's a lot of what we do today that lend itself in support. the beauty of all those lower emission investment opportunities draw on the same

sets of skills and capabilities, and in fact, our competitive advantages as the world transitions, we have some certainly of when it will happen we have the flexibility to shift from the traditional investments to the alternate different investments. we can pace that as the world transsessions, and if that accelerate faster, we can ship those faster, if it slows down -- >> what's your guess right now, based on what you see right now, our ability to combat climate changes, not to mention nations around the world what is your best guest in terms of how that shift will take place? i think it's hard to predict it's not, in fact, very different from what the price of crude is so the plan is to build optionality so you're prepared the fact of the matter is, today

the alternatives to replace the existing energy system are expensive. consumers will have to pay for that we're working hard to bring that cost do. provide alternatives that don't require consumers to gift up the standards we have become accustomed to. i think that's the work that has to happen, and how quickly that it can knowledge evolves will help drive the pace of the transition >> people will have to potential spend more -- >> i think there will will be a cost to moving to a new alternative. the more we do that, the cost will come down, and the better the technology becomes, that that cost will come down >> speaks of that, we're -- because the wind hasn't been blowing as hard in the north sea. the sun doesn't always shine there has been a transformation

taking place are you concerned at all about what you see in europe and potentially what they're facing? >> i am concerned. i think when you're moving -- i think about today's global energy system. billions of people around the world depend on it to support their modern living. which i think is the right objective, you have to be thoughtful about how you do that if you don't have the same availability, reliability, that will translate into people going without energy, which is absolutely critical to their standard of living obviously in the wintertime it becomes very important with heat we'll have a challenge, i think. it's a function of how cold it gets it's been compounded bush but coming out of the pandemic, the industry saw a tremendous impact from that pandemic and a loss of revenues, so investments had to

pull back to make the investments. that has in a depleting business has really constrained supply. so there's a number of dynamics that are influencing that. we've got to get through that, frankly. >> speaking of rise in prices, i did want to get your response to president biden a few weeks back when he asked the federal trade commission to examine that role in rising gasoline prices. there seems to be an idea that there's potential illegal conduct. what's your response >> if you do ban in time and history, every time we see the balances, and prices rise, you see similar types of investigation. i think you'll find there's no there there. frankly this is a commodity market if you restrict that supply and don't do anything about demand, i promise you, prices will go up. >> a sunny prediction on oil prices >> can't do that, david. i wish i could. >> you've taken 4.5 billion in

costs or -- $6 billion target, will you exceed that >> absolutely. we've been very proud of the organization, the changes we made starting in 2018, 2019, where we changed the organization was configured, move to a value change, allowed us to focus on the organization on being more efficient. if you look at the earnings and cash flow growth that i talked about, we're doing that with a lot less capital, in large part because of the productivity, but it's allows us to -- and i expect to immediate it easily. we'll hold you to that. >> okay. we look forward to future interviews darrell, thank you for the time. >> thank you for coming down carl, back over to you. >> thanks so much, or david faber at exxon in houston. a look at futures here, as we're about 4 1/2 minutes to the

on the floor bell. more "squawk on the street" in a moment

>> announcer: the opening bell is brought to you by -- time for cramer's mad dash,

as we count down to the opening bell. >> first, i want to compliment david on that. it was a fantastic get also, okay, at&t yesterday a conference, a fellow, the ceo of -- basically said they won't have as good a year as last year. we've not forecast it to be as strong as it is this year. that's what drove the stock down once again, i point out that at&t is in a huge price war with t-mobile and verizon, which is one of the reasons why apple is so strong. they're all -- the way they do price wars to give away apple 13 >> the ubs evidence lab, whose work is top notch does say that

there's availability from china and availability from the understanding for the most expensive, and that's absolutely the holy grail you have the expensive phones available for christmas, that is great news that's percolating interesting, by the way, nikes strong in china, boeing is strong last night, apple strong, waiting for starbucks, but -- [ bell ringing ] >> we're hoping that will continue look at the breadth coming in. at the big board this morning it is online advertising company in innovio is. >> there is a piece by my friend john ellis, omicron may be our

salvation. there are 30 nobel laureates talking about this is a highly optimistic scenario where this is a -- this new omicron can nudge out delta, but not as virulent as delta. can you imagine that >> this is one of the goldman's four sonar i don'ts, which basically targets the higher airway. >> can you imagine a more -- a less virulent, but more aggressive, is kind of what you really would like to have, the holy grail it's kind of like one of my doctor says over and over again, i'd like to give you some covid, because that's the best to get out of it. so this could be one of the reasons this was in the tell gram, that maybe -- dr. topol was saying over and over again on "mad money", just call it a

three shots obviously we don't have enough out of the netherlands, but i think this director of ucla genetics institute, a complete heavyweight was saying look out this could be a lucky scenario david, i wanted to ask you, this interview -- you know tesla vab so strong. we've seen oil companies going up 2% to 3%, at what point does it make it untenable to be an oil company because of ev? >> i think not for a lock time i think there's an argument they'll be making that the subs decides given for ev amount to a price on carbon that's far above what they would need to actually move even more aggressively in terms of carbon capture. so, you know, yes, we are slowly

by surely thankfully electrifying the fleet of cars around the world, but it's going to be home years how many decades, right? even at current rates, it's going to be a long time. of course, that hasn't stopped the enthusiasm rivian went over $107 billion market value is where you have it right now, guys not many rivians on the road yet. >> ford will present a couple times this week, so we'll get more on their ev plans >> jim farley is basically a line in the sand that, we are going to produce. >> david, when i license to the allo companies, they all seem determined to make it ma you

have a huge number by 20130 -- 30, so i think the all the omakers are very much after odds with darren woods right now. >> i posed it to him in the past we didn't in at the last interview. he indicated there's an ability -- by the way, jim, let's not forget it's grate to -- but where is the power coming from that's electrifying all the cars very much a part of the mix.

before the injell victory. >> that's a great question i think there's a desire on the company to be more transparent that's apparent how the recent appearances and how communicative they've been that board, as you pointed out, is not an easy one he's indicated previously, that they are making good progress, and he relishes the challenges, so to speak, of dealings with the voices in a boardroom, and going through the different arguments, guess to a plan that

was approved for spending $15 billion over the next six years. >> part of that has god to be frankly part of its own image, i think, wouldn't you say? in terms of trying to get some of the policies in place that they say they will need to spent even more, to pursue even more aggressively some of the technologies that we've been talking about? >> absolutely. you and i both studied john d. rockefeller. he made the point of the long history of the exxon doing the right thing. you don't invoke him easily, because people think of it as an antitrust nightmare that was a

very big statement >> i do. i think that's a message they'll send more often. they have to be part of this solution, right? as does the entire industry, and this transition, as you well know, is one that may intensify in terms of how quickly it's taking place, but it's heart to say. will people be willing to pay more will people in developing countries be willing to sacrifice in some way that's already taken place for decades and decades? these are difficult questions to answer, but they will be key to making the transition happen. >> you made a comment earlier, where are you right now versus the traditional two plants on

either side of darren woods -- i don't mean to be facetious about this darren woods is basically saying, listen, i am out of the office, i am here developing it. this is a guy who i think is trying to say, listen, board, to his own board, i am with you i recognize what's changed this man has changed, david. >> woe, jim, i think i hear you warming up to it i don't know, man. what's going to happen to chef i don't? >> no, no, mike wirth is still number one, but we must note he does not have the cash flow of chevron, yet he's still spending that much money. >> though their cash flows, as he noted, have come up significantly. the cost are you decrease and we don't hear anyone questioning the different, do we >> honestly, good for them

and it was the great dividend. they always -- i tell people to buy exxon. no one ever went wrong, and there was a period where, in the most recent times, it was a big mistake t. exxon great interview. fantastic. >> tesla up about 2% one of the big holders was cathie woods, ark, that bought twitter and hood -- >> that's what sara eisen is going to do. >> sara starts with cathiy wood in about 20 minutes on cnbc pro. >> this is going to be electric. i think sara is going to basically get us to understand

cathie woods' under-performance. sara, i can't wait to watch your interview. >> one of woods big -- eight-month low for gas. >> and yell there's jay powell talking about how things have gotten worse. >> dissense any-- did you sense any -- >> it's not the commodity, but getting it to whatever it is the pivot that jay made was poorly timed, i felt a lot of declines are coming down, but no doubt about it, distribution has gotten better. >> a lot of people argued he was

mark from "the usual suspects. others said he's trying to put an insurance policy behind his renomination. >> i think he recognizes -- he wanted to be able to say -- remember, he said a couple months he didn't say i'm going to start selling bonds. the reaction was so extreme yesterday. >> thanks to mark dow for that one. adp was strong, not as strong as some hoped, but liesman mentioned some of the high frequency. we'll see. >> but why didn't jay say, you know what? commodity prices have come down. hi's got so much humility, i'll say it for him, because i like the guy so much.

we'll take another look -- no longer the premarket. the dow is up 250, 4613. vix is hanging out almost back below 24, and we'll check on hout treasuries are faring this morning. we're getting pmis in a moment there's the ten-year at 1.48 don't go away. new projects means new project managers.

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welcome back to "squawk on the street." rick san tellist here. we have breaking news. statistic november final read on m markit's read. it comes in light, 58.3, 58.3. that is the lightest read going

all the way back to, wow, the end of last year the current low is 58.4, that was in october, so it is a miss, we no that suffice it to say on the surface it definitely is a miss interest rates well, the yield curve has moved quite flat we continue to see more selling press in short dated securities. "squawk on the street" will return after these short messages

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airlines and jet makers in the midst of their own sustainability push. our phil lebeau joins us from chicago's o'hare. >> reporter: we just talked with john slatterly he's going to be on a flight with scott kirby promoting the use of sustainable aviation fuel, but he talked with so many airline executives around the world about what concerns they have that omicron, this new variant, might slow down international travel here's what he had to say.

>> a little bit too early to call that, but generally speaking, airlines continue to feel that narrow body departures will be back to 2019 levels at the start of and look, i've travelled extensively over the last few weeks. the airports are safe to travel through. and the aircraft themselves. it's one of the safest places. it's the safest place to travel, in my opinion and people want to travel >> obviously, ge aviation has a vested interest in the return of, not only domestic air travel but long-hall travel engine orders up 40% in the third quarter. but when it comes to cleaner burning jets, right now it is

much more expensive than ventional jet fuel that cost has to come down for airlines to use saf, as it's referred to. and we do not have that sound bite but i can tell you what he said is look, it's way more expensive. less than one-tenth of 1% use sustainable aviation fuel. but if this is part of the spending package, that would go a long way remember, ge aviation, once they split off health care, will be a stand-alone business, likely in 2024 ge aviation is here and we'll talk to ceo of united airlines

first cnbc coming up during the halftime report. >> is there a good way to put into context how much airline travel accounts for global fuel consumption? >> oh, boy, that's a great question i've heard estimates but clearly -- and it's increasing and there are no airlines planning to not increase their use of fuel over the next decade, two decades. that's why you need sustainable aviation fuel to come down in cost to cut emissions dramatically so the airlines hit the targets that have been set, in many cases, in europe by governments that say you need to be cleaner burning >> fascinating and clearly a major contributor to oil use >> and committed to bringing down the cost, chevron's ceo

exactly what phil was talking about. it's one of his initiatives to get the world carbon free and i think it'ser for real. but yes, 100% cost >> that's our phil lubetalking about sustainable aviation the vote 13-10 and maybe tighter than some had envisioned >> i think way too tight and i think we have the 30% positive they want to throw everything at it but pfizer tweeted ready with their antiviral and i think it's going to be much more accurate, much better. >> your point about toekal earlier and the optimistic view of omicron sort of echoed by gottlieb

i don't feel it will out compete delta. >> and the dutch know. they know. they have a week worth of data of what happened to the people on the plane i wish they would tell us. i'm not going to say it is misplaced. but we're starting to hear people well versed saying don't panic on this. >> that's what biontech literally said don't freak out. >> the person that got us freaked out, he was not sure about the performance. in the morning, he told megtyrell and in the evening, he got frightened let's call it inconsistent >> look, david, i know you followed ridgeback and merck do you think the vote said anything about efficacy?

>> i think there's some of the dialogue and merck not pushing back as hard as it might have on certain questions raised in the press. 50% of reductions hospitalizations to 30%. why did that occur you had a lot more of the patients in russia, ukrain where, this is raging for a long period of time and it was the placebo that saw the reduction in hospitalizations and deaths was a strong performance. and the one death was not related to covid it was actually from cancer. and by way, will this give rise to future mutations to your point, pfizer comes in at 89% with their oral antiviral.

if and when it approved, that certainly will be an important component. you have to taken a hiv drug with that. but it's great we're going to have both of those on the mark toot potentially treat this virus. >> can't come soon enough. that's for sure. >> let's get to jim and stop trading. it sounds like things are good the semiconductors remain the brightest spot of this market. i have to say it's very difficult tool have a market led by sinnics i'm starting to think semis round. >> led by semis. >> great production. larry williams, i think is the technician of our day.

i've been waiting and this omicron information all seems positive it does seem like once again we hit a level of fear friday that we tested yesterday. it was ugly and i like it. i have a company on "mad" tonight, which is so much fun. it's a -- omniverse. which is so much fun mental health, still hard to crack, schizophrenia hard to crack. we must never stop mental health awareness. so important i never mind saying that my daughter and i celebrated the mental health month. you have to be out of the closet in that stuff. she does a lot of work trying to save people's lives.

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welcome back to "squawk on

the street." live at cmehq with breaking news spending expected to be up four-tenth ooze to 1% is a miss. up two-tenths and there's a rearview mirror change that moderates that miss a bit. last month was the first one down 1/half of 1%. and that does help take the swing out of what is a light construction spending number on ism manufacturing, this is the november read. pretty much spot on at 61.1 and that's sequentially, that's following 60.8 it hasn't been revised yet and 82.4 that's a cooling off of the previous look of a 85.7 and to put a face on it, at 92.1 in june, that was a 42-year high.

so, we've come off about ten points from that level and if we look at new orders, 61.5 sequentially higher and on a very important week where we just had adp jobs report the employment index improved by a little over a point. 53.3 and that's following 52.0 carl, back to you. >> all right, rick, thank you. good wednesday morning, everybody. welcome to another hour of "squawk on the street. "david is with the ceo of houston. dow's up 350 we'll see if the market likes the moderating prices. in a few moments powell and yellen on the hill this time for house commercial services we'll take you there live as soon as q and a begins >> here are three big movers we're watching this morning.

w we're going to start with salesforce climbing. and better than expected q3 earnings and promoting brett taylor to the role and this just a day after taylor was also named twitter's chairman the biggest weight on the dow right now and an fda advisory panel with the oral treatment pill, despite reduced efficacy 13-10 in favor we're going to have more on that later this hour. shares uppall most 2%. and finally, all birds out with the first quarterly report since going public in a hotly anticipated offering last month. with the sneaker company 's losses rising, the stock is below the trade price of 2121 but still as of right now, above its ipo price. down about 13%

>> let's get to steve liesman with what to expect from day two of the testimonies of yellen and powell after the roller coaster ride we had yesterday, steve >> really was but they can hope for clarity around fed chair powell's surprise statement that he thinks it should be sped up he said it twice so, it was not a mistake was the message. the questions are how fast a taper? what is the potential impact of another coronavirus wave and how soon should rate hikes follow once the fed stops buying assets every $5 billion increase in the reduction would bring an end to the monthly asset purchase by one month. if it doubled from 30 billion, the fed would end the asset purchase around february, instead of may and it all amounts to a quick

change by powell, who just, last month, announced it implemented the taper at $15 billion a month. what changed much higher than expected and a strong jobs number that revised up the prior several months but showed little improvement in americans coming back to work with other fed officials, powell shifted to impact of a new virus wave and growing political support for fight nothingflation democratic senator, mark warren endorsed the change and so did several republicans. we'll see if powell provide said more details about the turbo taper and if it gets a similarly warm reception in the house. >> yoiv been following the fed are long time. when you see the fed chair having a major policy pivot and

a move to, in this case, a faster taper is this seen as a near sure bet that this is going to accelerate as of this month's meeting >> yeah. depends on what you want to do with near. i think there's an outside chance that if it's seen as viralent or whatever the issues that, that create the possibility of lockdowns, i think the way to think about this is powell is focussed on the supply side and supply side impact of lockdowns. but if we get tho a point where it hurts the demand side, that's when you can think of the idea of not having a sped-up taper. j.p. morgan said yesterday it's basically the default position of the fed to speed up the taper. what that means is the virus has to be pretty bad, a serious

deterioration for that >> now we're going to watch even more closely what he has to say in day two today in front of the house financial services committee. thank you. let's get to a bounceback for stocks a day after the dow fell more than 600 points. bob. >> and we're just off the highs. at least positive on the inflation front. we're in a two front war take a look at the sectors all 11 open positive we moved 240 points in the s&p from high and low in the last few days industrial and tech lagging but it's the big gainer, at least so far in this long week. there's only two new highs on the s&p 500.

guess what it's apple everybody was going to pretzels, contorting themselves trying to figure out how did you have 180 million shares of apple sold yesterday? apple's at a new high and 175 million, i believe yesterday, was more than 150% average volume dow movers in the last few days, outside of tech we have cyclical sectors and consumer names that have been in slow-motion decfor long time. they reached their highs moany months ago and boeing is 30% off of it's highs. many of the financial names, amex, for example, visa 3m in the industrial space and big pharma, johnson & johnson, 13 per off of their highs

this is not part of the big wave of advancements that we've seen in the stock market. so, where are we the bulls have some veer interesting arguments. they're arguing things can go right in 2022. omicron blends into the delta wave and vaccines are reasonably effective or we get new ones the economy handles it well and the margins stay high around the 12% range the record was 13.5. that's the bull case is everything goes peachy the bear case is omicron could lead the wave in lockdowns the fed shifts to a more rapid series of rate hikes and technology stocks retreat because there's not a lot of support. that's the big debate. what do you do with tech the problem is it's tough to buy tech if long-term rates

aggressively move higher because they're based on a discounted cash flow model. the value of their future earnings go down and that's a big problem tech is expensive. the big argument in favor of the bulls is the 10-year yield below 5% and the bulls keep give you three arguments. the market is not worried about long-term inflation and the old powell is essentially correct. rate hikes crush inflation thalts another argument being made and the supply guys keep saying intense global demand for u.s. bonds and get all the interest from the european and japanese markets that stubbornly low yield is the main reason to not bump tech stocks >> let's get down to david faber in houston, texas. hi, again, david

>> yeah, we did speak to mr. woods, of course exxon shares are up and some of that will rebund because of the stability being seen in the oil markets after volatility and they did formalize targets that were shared not long agewhen the company last reported earnings. namely, spending around 20 to $25 billion a year through 2027 on a capitol investments and perhaps more importantly spending, at least for many out there focussed on the company's ability to transition and change and contribute the fight against climate change spending on what it calls green houses gas emissions reduction plans. aren't they wind mills or solar?

that's not seen as an area of expertise by daren woods but when it comes to capturing carbon >> the largest sequester of carbon in the world. we captured more co 2 than any other entity in the world. going to require large-scale projoekts, which we have expertise in it's going to be all around the world. as the world transitions and we have uncertainty as to when it's going to happen, we have the flexibility to shift to transition investments to alternative investments and we can pace that as we work with governments. and if that accelerates faster, we can ship resources faster if it slows down, we can keep resources balanced >> and that's how they see

spending over the next six years. there's enthusiasm for carbon capture. he said listen, in terms of technological breakthrough, that would be hopeful in terms of taking the air out and storing the carbon, by taking the carbo out. and some 4.5 billion in the last two years. plans to the get to 6 billion and he indicates they will be able to exceed that number >> the changes we made where we change said how the organization was, that allowed us to become more efficient if you look at the earnings and cash flow growth, we're doing that with a lot less capitol than before. it's also allowing us to significantly redusz our expenses and i expect to beat

the $6 million easily. >> and that will help accelerate their putenotential returns andt them in a position to spoentd, should they do so, morgan, even more money on someof these efforts. >> great interview so, you have exxon saying it's going to double cash flow in 2027, while expanding the low carn investments sounds like it's getting more activity out of the oil and gas production to encourage that in general, over the coming years, they're going to produce less oil and gas is this where we're going to see a gradual taper and the other oil companies as well? >> i don't know if that's the expectation but what they're stressing on is the flexibility. invest less on traditionalmean

of production and move towards the other technologies, particularly if governments around the world incentivize that to some extenlt it is possible you could get there. but when you talk to daren woods or mike worth from chevron, you do hear talk about the long transition and how quickly it will occur, as opposed to the hopes of many but in the real world. carl >> look forward to hearing a lot more that's going to be an interview we remember for a while. david faber in hoouszen. and we're going to talk to the vice chair as we wait for the house stied begin with powell and yellen as we have the dow up almost 400 and the vix closer to 23

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welcome back to "squawk on the street" as we await the house, we're joined by princeton university professor, allen blinder. so great to have you back on the show we have the treasury secretary testifying and the key focus is on the fed chair, on jay powell, given the fact he took such a hawkish tone or what was perceived be a hawkish tone in front of the senate yesterday.

i was reading dewy's fed watch and he noted that powell's comments to discuss a tapering that, quote, this is about as close to frontrunning the fome decision powell can get without out right saying the acceleration will happen >> i'm surprised -- by the standard of fed chairs, he was very direct. in an absolute sense, it wasn't direct in normal discourse but when you think about how direct they've been about giving out any information of that nature t was a modest departure, maybe more than a modest departure of norms >> it did seem like the market was starting to price in this type of sentiment and then we started to get the headlines the end of last week around this new

covid -- omicron variant what to you make of the timing of this pivot by powell, giveen the fact that the beginning of lasts week, he was renominated by biden and we have this variant. >> i'd be surprised if that wasn't the case that he, jay powell, checked the view out with a number of members of the fomc a few have been public about it and that was clear many have not spoken about it at all. but i'd think he would have the committee behind him before making a statement like that steve liesman mentioned before is the omicron variant i think at this point, that's the one thing, if it turns out to be worse than -- i don't know what verb to use

it's all guess work with omicron. let's say to be on the bad side of the range of guesses, that might deter the fed from this taper. but if it's not, then i think it's they're going to go ahead powell wouldn't go far on a limb >> i realize there's a lot of uncertainties and questionmarks around this new variant. can we gleam that really the biggest concern right now where omicron is concerned at the fed is supply shock and the impact that could have on prices? >> no, i actually thing -- steve mentioned this before. i think it's the demand side impact if the omicron turns out to be quite bad, and actually kick the economy down the stair case a couple of notches. and that would come from people

spending less, if it happens, that would deter the fed the thing is seeing the supply shocks, they keep coming and being more persistent, which was the theme of powell's remarks and that means that the inflation is going to last longer than the fed was previously saying but that's baked in the cake. there's always a big surprise. who knows what happened. but it would be a big surprise >> how are we supposed to be processing the short-term declined on oil, on gas, on that gas, on industrial prices, on the prices paid. are those easily reversed or is there a creeping sense that inflation is peek sng >> i think there's a creeping sense that gdp is creeping

it sounds like those are quite sensitive to the near-term outlook. and when you talk about commodities like that, it's important to not just have a u.s. centric view. but there are a bunch of 100-pound guerillas on the block and they matter. so, if you think this turn in the disease is going to have a look, that's the kind of thing that moves commodity prices down >> thank you for joining us today. the former vice chairman of the federal reserve. >> my pleasure >> i keep wanting to put on "n" in omicron >> it's a hard habit to break. of course the arkk innovation.

the biggest laggard down, 15% of the year and both companies fell, twitter up nearly 5% still below the level seen on monday, after jack dorsey said he would leave as ceo. robinhood is a new post ipo low. and by the way, sarahizen sitting down with cnbc pro you can watch the full interview on cnbc.com. ll'll get you to powell and yeen

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you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire the cdc planning to place tougher covid testing rules for travellers, in an attempt to spread the omicron variant morning, meg >> hey, carl well the cdc does seem to be taking stricter measures to fall though omicron variability and contain it, as it has not yet been cond tected in the united states

the number of countries now surpassing 20. more than 200 cases across the world at this point, having of course first been detected in south africa in botswana and a new report saying cdc ordered airlines to disclose information about travellers who have been in the eight southern african countries in their travels. we're waiting to hear more about that and more plans from the president about how they plan to ratchet up the fight against the pandemic and an fda advisory committee voted narrowly in favor of recommending merck's antiviral drug it was so close because, of course, the efficacy of the drug had dropped as of friday from the original 50% in preventing severe disease and death, down to 30% in the final look and there are safety concerns. a lot of talk about use of the drug in pregnancy. we talked to merck's elyawn bar

about the potential use of the drug >> we have a novel virus here and i think the clinical data we saw and all the safety data we gathered showed the virus was really impacted by the drug and that we were able to improve outcomes and the safety protocol was quite favorable. >> so, now the decision ges to the fda itself expected to potentially clear the drug within days it would be the first oral antiviral for covid. we're expecting them to work soon on pfizer's antibody. guys >> i mean, the developments continue your days continue to be long, as you gather all these headlines for us and of course, follow the actual science. i'm just curious about pricing from everything i've read, it looks like 3.1 million courses

of the drug for $2.22 billion. is this what we should expect compared to other antiviral treatments >> that's where it looks liked it's shaking out so, the merk deal but it at about -- andifieser for more than $5 billion. that's less expensive and a bigger overall purchase. that's less expensive than the antibody drugs that can be $2100 for two courses of treatments. than about 40 bucks. >> it will be likely an uphill battel for full approve, familiarly given the availability of pax over at pfizer how much are you watching for this to be a nailbiter

>> it seems like going into this the fda wanted to clear the drug but wanted a vice about which are the appropriate patient populations. i think we'll look closely for any restrictions they put on it as to who should get the drug and ways of monitoring the drug once it's on the market. a they brought up if another drug comes along about potentially revoking and that will be an interesting thing to watch >> all right meg tyrell, thank you. and we're just a few minutes away from the q and a portion of today's hearing. and mike, of course, that's where we have to start you saw things down draft again yesterday in stocks. and now we're seeing a bounceback today i mean, how does this change, this policy pivot by powell? how does this change the don't fight the fed investment

strategy >> i don't think very much the s&p 500 is almost to the point where it was at 10:30 amp yesterday before powell said a word he hasn't elaborated on that since the testimony and therefore, either the markets made its peace that it wasn't a radical shift or subject to change base on incoming information. i do think that he needs to seem attentive to inflation it's what everybody is focussed on wants to maintain credibility. but i don't think it necessarily means -- also the taper. if accelerating the taper, which is the general thinking of the committee the thing they're going to call, that doesn't kautcost the market or economy very much. the fed wants to be done with it, to be honest >> yes we've seen them in transport, by

the way. some of the hardest hit in recent weeks prrls what is that signaling >> i think it's checking off the boxes that the market was oversold y started to see maybe it was getting over small caps did out perform in the afternoon and also the breadth of the market is better. monday's rally was very uneven and narrow this is it not incase today. for it's interesting though because you get a three or four or 5% shakeout and all the sudden and i think it mostly resets expectations and you've done so in a positive way, heading to december and we're at 46.30 this is the level everyone was hoping wouldn't break on the down side friday all the sudden it seems like things are okay, we're at 4630 you were worried about it a few

days ago >> supported 4550. >> that's below where we never got to >> a 50-day moving average a great tweet this morning, 93% of the s&p has had a 10% draw down this year not expected add all >> it's all happened internally. been all this choreographed rotation and there's a certain luckout aspect of that they've allowed their equity allocations to go up to record highs. there's a belief out there that there's enough nominal growth. when we were at this level of jobs hard to get readings, the fed was long into tightening cycles before. it seems like there's a little bit more leash on this market. >> do you think the idea of a fed put is dead? it's too expensive to have that in place anymore

>> i don't know if it's dead i just think it's lower, the strike price powell only three years removed from him realizing that he can't get too glib and too in front of the market when we melted doin late 2018, when he said we're on auto pilot and a long way from normal rates there's a little bit of hesitancy. >> let's get you to house financial services where q and a is beginning >> americans would respond with strength, creaativety and ingenuity as we have done in other crisis that is a guiding principal behind building back better. it is not enough to just get back to the way things were before we must shape a recovery that build as new, stronger and more equitable economy for the future chair powell, the american rescue plan that passed in

march, have accelerated vaccinations and reopenings over the last nine months the economy added over 5.6 million jobs and it's started to seem meaningful wage growth for the first time in decades. do you view these wage growth trends as positive how does your economic recovery compare with other major economies and do you still think that inflation will be temporary, and if so, why? >> thank you, madam chairwoman we have seen wages moving up significantly. at this point, of course we like to see wages move up everyone likes to see them move up at this point we don't see them moving in a troubling rate that

would spark higher inflation but we're watching it closely. our recovery is the strongest. it's stronger than the others. we had stronger fiscal support, frankly. and so part of it is that. our recovery is really the farthest advanced of any of the largest ones in terms of the temporary nature of inflation, i would say the inflation we're seeing is clearly connected to pandemic-related factors i think the risk of persistent higher inflation is clearly risen. and i think our policy has adapted to that and will continue to adapt. >> if you could expound a little bit more on what is happening, i remember when we first started to talk about inflation, we basically all talked about it in terms of it being transitory

and i think that what you just eluded to, relative to how the economy will react or recover, are you directly talk about stimulating the economy with, for example build back better and that will help with the inflation that we're experiencing >> well, i do think that at the fed and around pretty much all forecasters expect inflation will move down closer to the longer run goal of 2%. as i mentioned, we've seen inflation be more persistent we've seen the factors that cause inflation be more consistent i'm thinking of a combination of high demand and supply side difficulties that we're having with blockages and that sort of

thing, shortages it's not something app -- appropriate to comment on. >> the so-called quits rate to determine whether the economy was reaching full employment it's surpassed a previous record, leaving some to label what has happened in the economy as the great resignation when chair powell testified in july, he identified child care and school closures as one of the biggest barriers to further labor market recovery. and do you believe the investments that the build back better act will make in child care and universal pre-k will help with this >> the quick rate, when the is high, and as you mentioned, it's

the highest it's been in the history of this series, it signifies a tight labor market, one where workers are leaving their jobs because they feel confident about the ability to get others are often getting outside offer and feel good about the labor market and that's what we have and we see it reflected in survey of workers that feel jobs are plentiful. and of course, businesses almost universally complain about the difficulty of hiring workers but this is a very unusual shock that's hilt the economy. and we see a large number of workers have -- their

participation in the labor force has declined and not got back up to normal levels in some cases, it's because there were urm early retirements and the pandemic did, unfortunately, result in a large death toll i think there are many people, especially low-income workers, who don't feel confident that -- about the health consequences of working,especially in faces-to-face type jobs. and so those are head of the labor force and i think we get greater control over the pandemic the supply of workers will increase as those people come back to work >> the gentleman from north carolina, mr. machenry a ranking member of the committee is recognized >> last time we were here -- in

selt p september and july i asked about this the fed incorporates new spending from congress and the white house. they incorporate that into projections. and the effects of your monetary decisions with the knowns of fiscal policy and at the time you said this twice before and will say it again. certainly the corporate that information. so, in light of that, we had, in february a democrat only proposal that made it into law and spent $2 trillion. and then we have, just last week, another bill the administration supports that raises the deficit by $400 billion. and so, we have those two large

fiscal pieces. when waters asked -- when secretary yellen asks the chairman of the federal reserve whether or not spending more money from the fiscal house, they're improving inspection, i think what she asks instead of improve, i want to translate for the public when a democrat says improving inflation, it says enhance or raise inflation. just to be clear my friends on the left, when they say improve inflation, they want more of it. policy making is inprecise but back in february, there's an output gap this administration acknowledged right? and economic projections and came to congress for a fiscal stimulus in the name of covid, but a fiscal stimulus, right? is it fair to say that maybe you

over shot in february? >> well, i think it's fair to say that we had a sizeable fiscal stimulus. we were very concerned that the most significant risk facing the american economy was a shortage of jobs and a prolonged downturn that would scar many people -- >> in february, the out put gap, right? vurlss what the fiscal stimulus was that you -- that your administration pushed for and got, perhaps you over shot is that fair to say? is that a fair assumption? >> i don't think that's a fair assumption -- >> it's not -- >> we assessed what's a substantial risk and as chair powell just mentioned -- >> so, you think -- reclaiming my time, madam chair >> look, the inflation --

>> i'm asking a particular question about the output gap. the output gap, at the beginning of the year, was 3 to $400 billion. economists on the left and right were saying that's about right >> i think it was extremely hard under the circumstances to have any certainty -- >> as a policy maker -- as a policy maker, i'm just asking you, you're a noted economist. chair of the federal reserve, you're in a very different position, having to, i think sell what is a proetty lousy economic agenda. but you're doing a great job trying to sell this nation's ajendsau the economic question i hear from economists on the left is -- and your former san francisco fed acknowledges that february stimulus contributed to the inflation we're experiencing is that a fair assumption or

not? >> inflation is a matter of demand and supply and it certainly true that the american rescue plan put money in people's pockets, helped them meet expenses that they had and contributed to strong demand in the u.s. economy but if you look at the amount of inflation that we have, and its causes, that is, at most, a small contributor. the pandemic and what it's done to supply chains, diverting demand away from services and massively on to goods, which is resulted in supply chain problems and the impact we've seen, that's now been long lasting, on labor supply due to the pandemic i would say those are very -- >> but there's a distinction between the supply shock and a demand issue

right? is that fair to understand >> recovery plan did boost demand and that's one reason that most households are in a favorable financial position, much better than they otherwise would have been and it's enabled their spending but the fact that the spending, because of the pandemic, has been so focussed on goods, as opposed to services, has contributed massively to the supply chain problems that are boosting prices. >> madam secretary, chairman powell, the congress and the public and this administration wants to point everything on to the federal reserve on inflation. that is simply not the case. it is it the multiple trillions of dollars this congress is spending that is putting jet fuels on the economy, that's making it wursz.

the policies of the administration the chair went over time and i'm going over time as well. let me just say this it's the administration's agenda that i will finish my sentence, madam chair o cay. it is the administration's agenda driving up the cost of things making the american people worse off, not better off. inflation is out pacing wage increases. this is on the democrat house, senate, and white house. i yield back >> thank you the gentleman yields back. the gentleman from colorado, also the chair of the subcommittee on consumer protection and institutions is recognized for five minutes. >> thank you good morning and thank you for your service i'm way over here today. couple things. i'm listening to the republicans talk about inflation but i think more important topic we should be talking about is

the fact that since the ex-president trump was defeated by joe biden last year, we've added almost 6 million jobs. some 620,000 jobs per month. and we've seen the stock market rise from 26,000 to 36,000, now it's backed off to about 35,000. in the last year at one point, $1.4 billion per point. almost up $13 trillion since joe biden won the election last year we've seen gdp up dramatically over the last year and my friends, i appreciate that the republicans want to talk about inflation because that's all they can talk about so, i'd like to ask my first question of you, secretary yellen unemployment is falling at the fastest rate in 50 years and is now at 4.6%.

prior to the american rescue plan passing, the congressional budget office projected it would take until the fourth quarter of 2023 to get to 4.6% unemployment we're two years ahead. madam secretary, my and how will it help in terms of the recovery and create more opportunities for everyday americans? >> well, thank you for that question build back better is really focused on addressing long-term issues in our economy that have been holding back economic growth and contributing to economic inequality. build back better what it does for children and households with children two years of universal early childhood education for 3 and 4

year olds and subsidies for child care to make quality child care affordable for the great majority of households along with a continuation, at least for a year, of the child tax credit that has made it possible for so many families to support the needs of their children, keep roofs over their heads and diminish food insecurity and these childcare provisions, as well as other parts of the program should serve to boost labor force participation, particularly if women where we have lagged behind most other developed countries and research suggests that our failure to provide adequate childcare and paid family leave is an important contributor. in addition -- >> let me change the subject for

one second the subject that i asked both of you about in the past, the safe banking act, which involves allowing financial institutions to provide financial servicest the cannabis industry and those that serve the cannabis industry and you may know that we added, we passed it with big bipartisan votes out of this committee, off the floor to the senate. last cycle, this cycle and we amended the national defense authorization act. so, that's just to remind you where we are in october, cassidy collins, senior counsel in the chief office of the irs noted a special type of collection challenge the irs undertakes regarding tax collection from cannabis-related businesses forced to operate in cash only it's estimated that in just three states nearly $50 million in taxes went unassessed because of unique issues surrounding the cannabis industry. madam secretary, do you agree if

these businesses were simply allowed to access the banking system and didn't have to transact business only in cash it would make the irs' job easier >> yes, it would >> i yield back. >> the gentleman yields back mrs. wagoner is now recognized for five minutes >> thank you, madam chairwoman secretary yellen and chair powell, thank you for joining us today and as i expressed to you earlier, chair powell, i want to congratulate you on your renomination for another term leading the federal reserve board and i look forward to continuing to work with you. chair powell, you responded that our best expectation, this is your quote, our best expectation is that there will be modest upward pressure on prices this year, but they won't be particularly large or persistent in the future.

chair powell, since that hearing, eight months ago, i have asked you about higher inflation and, yes, to my good friend the gentleman from colorado, we're going to talk about inflation. that's all that people are talking about in my district, missouri's second congressional district they want to know why these prices keep going higher and higher and higher and higher and no, i don't believe it's necessarily at the fault of the fed. it is democrat policies and overspending but i digress. i asked you about higher inflation two more times, sir. and americans have experienced surging increases in as i said, food, fuel, housing, leading up to the most expensive thanksgiving, christmas and holiday season on record is it your view, sir, that these price increases still aren't, quote, particularly large or persistent >> no, that is no longer my view

>> thank you for that answer chair powell yesterday in the senate banking committee, you stated that you believe it's time to retire the word transitory i couldn't agree more. and to explain more clearly what the fed means when referring to transitory inflation i think most americans, sir, define transitory as temporary but the strain on their monthly budgets and paychecks from this inflation does not seem transitory or temporary. if that's not what you mean, then could you explain the fed's meaning, please. >> sure. the word transitory to some as you suggest has a sense of short lived, matter of months kind of thing. we're using it in a specific way transitory to us means that this episode, however lengthy it is, will not leave a persistent,

long run string of high inflation behind it. and the problem, you know, our whole role that we play, it really revolves around having clear communication. when you have a word that means different things to different people, we need to move on and find a better way to explain ourselves. most forecasters still do think overwhelmingly believe that inflation will come down significantly in the second half of next year but as i said, the risks of higher inflation have moved up >> is soaring debt and deficits and excessive spending and dumping stimulus spending after stimulus spending, stimulus spending into our economy, will that be a driver of inflation? >> so, i guess i would say, i don't want to comment on, you know, fiscal policy directly >> i'm just saying in general. >> in general, so, if you go back to last march, the --

>> well, that is fed chair powell right now and treasury secretary yellen testifying to the house financial services day two of testimony for both of these officials on the hill. right now powell is fielding ques questions inflation and the fed's stance he said the risk of persistently higher inflation has risen and that policy has and will adapt to it. also noting that after his comments about retiring the word transitory in front of the senate yesterday that for the fed, it means to them that this will not leave a persistent long strand and questions about the build back better spending plan. major averages still continue to move higher. treasury yields are higher right now, as well we focus on the business roundtable which is out with its quarterly ceo economic outlook survey and eamon javers has that for us >> in the economic survey here from the business roundtable

this morning take a look at some of the numbers from the brt they'll release these at the top of the hour. hiring ceos up 13 points to 121 on their survey. plans for capital investment up seven points to a value of 115 sales expectations up 9 points and the overall ceo economic outlook here in their index is up 10 points to a value of 124 on the survey. that business roundtable index now at its highest level in the 20-year history of this survey says the business roundtable they caution, however, morgan, that this survey was taken before the development of the omicron variant news that has rattled markets in recent days some of the ceo optimism came just before that still, they say, what's driving all of this is pent up consumer demand that is really boosting ceo expectations over the next six-month period for really optimistic and rosy outlook in terms of hiring, spending and

all the things that companies do, morgan, back over to you >> eamon, to dig into business plans to or at least up to a week ago to spend more on capital investments. we've been seeing that begin to show up some of the macro data do we know where some of those inesthavement investments are being made i feel like everything is turbo charged. >> we don't know where those capital investments are necessarily going to be made from this survey, but we know what is on the minds of ceos in terms of potential costs one of the big ones that ceos were citing was labor cost one of the issues where they feel cost pressure coming down the pike and also no surprise here ceos told the business roundtable surveyors that the supply chain was going to be an issue, as well you can imagine in terms of where they're going to spend money is on people and ironing out that supply chain issue. >> all right, eamon javers,

thank you for bringing us those headlines. >> up 1.6% after, of course, a big down draft yesterday you've got stocks up, treasury yields up, gold's higher, oil's higher and bitcoin is up and volatility is down and dollar basically stable under a little bit of pressure that is going to do it for "squawk on the street. "techcheck" starts now. good wednesday morning, i'm john quintanilla we did the good and we did the bad. why our first guest this hour says some stocks are now in for the ugly later on, two huge names in the cloud, exclusives with the new ceo of aws and