>> cheers. we're going to take a final check of the markets before we hands things over to the folks on "squawk on the street." the nasdaq is looking to open -- it's actually come back. >> almost. >> we wait long enough, but we don't have time. >> make sure you join us tomorrow "squawk on the street" begins right now. good monday morning, welcome to "squawk on the street", i'm carl quintanilla with jim cramer david faber has the morning off form the ten-year yield remains below 1.4. a busy week ahead. our road map begins with covid variant volatility for stocks and crypto's weekend blowout ev watch, shares of lucid

following, while morgan stanley calls rivian the one that can challenge tesla, and the s.e.c. reportedly investigating whistle-blower claims on tesla's solar panel defects. one of the big threads of the morning are the in addition a's on arrivane ae ae ae ance -- ri >> it's almost as if the analysts have become authors and these are grabby headlines i saw the one and immediately i didn't want to readed other. that's jonas being creative, interesting. i'm not saying he's wrong. he points out compelling produces those are all true, which is one of the reasons why i think, when you read that, it could make sense. it does have all the orders it needs.

>> a lot of the other initiation involved the stock prices in 2 million cars with a company with no manufacturing record or 20 million cash burn. basically it's a hard business for small companies to scale >> by the way, the 8k on lucid, we're not sure of the investigation, but fisker hasn't been hit by the ugly stick yesterday, but there is an overwhelming sense of roth rivian, because of the amazon, does have something. if you make a deal with amazon, you're anointed, but nothing else really maerpts in that space, because you need endless customers. i keep thinking about ford

>> meaning what? >> they're coming on my investment club meeting thursday we're going to talk about what it's like to compete against a monster, and how you can win, but you have to scale. i think when you look at the power that ford has, they can scale. >> because of the engineering or the access to capital? >> the f-150, a huge amount of money. the f-150 remains the most popular vehicle in the area, but musk, where is his pickup truck, the one that looks like a termite. >> it's a rough day of coverage for tesla. the times has a pretty touch piece on safety concerns within the company, the ongoing debate, and then this investigates reported on solar panels that's really all we know. >> i think this declines lasts today. the buyers of tesla are

voracious, they buy on any dip it's not extending to the rest of the nasdaq where the selling just keeps happening it definitely peaked but the stocks, i was -- i was talking with becky earlier the sen that goes on between 4:00 and 4:30 a.m. in these nasdaq names is frightening. i keep thinking it's either a machine or an idiot. or a third one would be someone who wants to make it clear that the nasdaq is going lower. so paint the tape, i would love to know more about it. >> as of last week, 120% of the nas made a low -- it's one of the biggest three-week gains in history. >> no, i mean, it's -- the most

ever sold aren't so we really have underneath this amazing bear market, it's a nasdaq bear and an s&p bull. we actually saw this in april of 2000, we saw the same thing. it turned out to be a couple funds capitulating in their shorts i don't really understand what the inner reaction is to the treasuries and these programs. they don't seem that relevant other than that someone says the banks could be better. but it confound me to think you could want to sell stocks so slow we're all trying to figure out why it's bad

there's no particular reason, but a higher value, when they were -- when you were reporting quarters mattered. i just think i don't like what i think is manipulation in the early morning. >> when i go over the actual docusign, they just got it wrong, it was so good in the previous quarter. >> you see cathie wood in there buying a huge amount of shares someone said, jim s. i don't think she's irrelevant, i think she's become an indicator. i think it's short-sighted >> you think there's a negative

ark effect >> yes it's not -- she's not a hedge fund, but at the same time because it's an etf, it translates into her selling stocks >> i had no idea how to value it i think a lot of people are saying, how do i value it? very good analyst s. betsy gracing says, it's time to buy it clears the way for the fed, in which you want to own the banks. then people are scared to talk

about it in general. mike pence said that famously in "borat part 2. >> it's too early. i would love to thing that a cold displaces a vicious flu, but then we're going to find out. there's been no -- we don't know who's vaccinated or who is not i think the norwegian cruise line was interesting this weekend -- norwegian cruise, you have to get a test and everybody has to be vaccinated this is pure breakthrough, but then they went to mexico and covid is everywhere. maybe we have to say, this is acceptable rink.

if you go to honduras or mexico, you can't get covid. i think the people who go on these, thee vaccinated, they accept it as breakthrough, and i think acceptable risk is these people guess less sick >> yeah. >> i've had a lot of friends have it. >> it's no longer even really that much of a news story. >> no, it's not. >> you come back to work and you come on. "squawk box" did talk to gottlieb about this that it somehow incorporated -- it's weakening to survive, but gottlieb is saying don't put too much weight in it. >> it's very hard to feel more positive without more data he especially because we don't know how many people in south africa -- they're overwhelm.

>> you saw what new york city did this morning >> once again, the message d. >> i've had had. >> for kids in restaurants, a full dose. private sector workers, i'm not sure how they'd be enforced. >> they look at it, they should check for booster, if you really want to know one of the things that dr. topol said is it never should have been called a booster. pfizer and moderna says we're doing.

it doesn't work after six months go get your third vaccine. >> then testifies echoed a bit by moderna's president take a listen to this. >> literally listed eight or ten mutations we never wanted to see show up. we opened up, and all but one was there. the instant feeling was, this isn't going to be good i think there's a real risk we'll see a decrease in effectiveness. what i don't know is how substantial that will be with the delta, things were ultimately effective,or will w see a 50% -- which really means we probably need to update, reboot the vaccines. >> >> without a doubt, if you get the third booster, it is so much more effective than the others, but only, you have to have the others underneath it.

95, 96 i don't know anyone who got the booster and also has covid i know people who -- that's highly unusual 5%, 96% coverage the moderna messaging was also mixed. mike wilson's point is that- >> powell and the industrial number was so hot. so, yeah, i think that wilson is really right about that. that just led to -- that could

be the program selling that i'm talking about, which is, you know, be long nasdaq under the fed changes its mind, and sell nasdaq and buy jpmorgan. it's almost like there's -- opening it up and oh, selling nasdaq via spac, okay, i'll do that, but i did see this happening in 2000 in april many there's some people around who saw that it was vicious. we're going to talk about analogs. of course, we'll cover what bitcoin did over the weekend as well still to come, a closer look at the dip in chips as well nvidia, micron, taiwan semi, as we kick off a busy week on "squawk on the street. don't go away.

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cnbc is launching a new index today. it tracks the stocks that younger consumers and investors are most interested in we backtracked it to the start of the year. this is up 42% cumulative, but like everything else, has dropped in the last month. you could say it's millennial tested and cramer approved jim, you've been involved in this from the beginning.

>> i think this is fabulous. there's a lot of youthful viewers, who, for the first time, are trying to figure out the stock market we have a lot of products that then became a took stock. dutch bros is doing quite well in the northwest teladoc. docusign and zoom are on it. but this is what they talk about, this is what younger people talk about. i'm not going to dump on them. you can look at the performance numbers, but this is what i call

tangible stocks and conceptual stocks when you look at a bumble, it's a bit conceptual coinbase is corn septemberual, but apple, amazon, they are tangible again, what i've been trying to focus on, these stock exchange that trade between 4:00 a.m. and 6:00, with no volume you wake up, and my wife is like, bitcoin is down 20%. i said, what happened? she said, i don't know. >> it was saturday. >> that's a great time to move a lot of stock and currency. but we have the cannabis stock, the gambling stocks, the stocks i would regard as being ev and ev related and tesla. i love this list i want everyone to go to cnbc

for example, is virgin galactic the best fundamental no, but it's captured the fancy of young people. you know what's not on this list ingersoll-rand, procter, even the phiers of the world are not on 689 moderna is on it. >> you would push back on comparisons so wall street bets or nonprofitable -- >> this is much better, if they can pull off the food side, zoom, if they can take the cash and reassign

docusign, certainly low, but i love the list. the list is made up of all the companies that younger people have heard of. now they have to do the fundamental work it's not enough to just say i really like lemonaid here. you may have used the app, but it won't get you where you want. >> anyway, watch >> if you want more on the components of the index, join the investing club or go to cnbc.com. don't go anywhere. the opening bell in a moment

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time for cramer's mad dash. >> i have a dog, ragu. he's like a fox in a henhouse. why do we keep buying toys from petco, instead of chewy. petco upgrade, time to bide. hilarious, but that said, chewy reports this week. so downgrade is going to scare people out of the stock. at the same time this is on our list of the, you know, the new stocks it's number 42, that's next-gen list chewy is a company that people love you always see boxes in front of

people's houses. we want automatic dog food i think petco is much cheaper, and this thing has been a dog. >> we tall about covid full-forwards a lot. could that have happened >> absolutely. we know the pet numbers are very big because of the pandemic. and that is none other from petco. people have one dog and they get a second dog when you downgrade stock ahead of the quarter, people just are -- wedbush did it if you're in chewy, typically you don't get a downgrade unless you have a real good feel is number 42 on the list may not have what it takes. >> you've been instructive on pet care for years

we'll see what happens with the print this week. by the way, opening bell in a couple minutes remember, catch us anytime anywhere, listen to, follow the "squawk on the street" opening bell podst 'rba ia mentca

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we are watching bitcoin this morning, still lower after dropping as much as 17% over the weekend, nearly a 40% drawdown as it got to 42k interesting data out of grayscale today, more than half of bitcoin's current investors got in over the last 12 months. >> we know also, just a huge robinhood name coin base is now down to $265. the s.e.c. doesn't like how a lot of thing were runs at these ba banks this goes a true collapse.

it can happen on a saturday, so the question is, i don't know. is the people who like bitcoin, they like it people who don't, don't. people who like bitcoin, they're vociferous in how much they love it this is a buying opportunity, so there's not a lot of analytics involved. >> there's a long debate, especially giving -- about whether you own the platform or the currency >> the fact they can just roll over -- its worth talking about robinhood. it is a disaster, and you hear nothing, right it just goes down a bit

regularly. they're the quietest of any of these. wow, people are losing fortunes. >> you've tried to get answers from them about how they have evolved, but from 85 to 21, it's been a tough ride for them there's the opening bell and the crept nbc at the big board haggerty, making its debut at the nyse at the nasdaq, a big day for buzzfeed, the first publicly traded purely digital -- >> beware these have been -- i mean, it's interesting, it's almost like -- it's been wrong over and over again, yet there they are they tend to be great the first

day, because someone who like buzzfeed may buy it. at forecasters are rye vising their forecast amazon and alphabet are the two big winners for that amazon advertising is pervasive. so is alphabet they talked about how it makes the site clunky either yes is doing quite well

>> shopify is not on the list. it's amazon. a couple interesting points. a third, and as for fundamental long/short hedge funds, the typical is flat for the year hue any of not guys get their fees, continue with their fees at a certain point the 1%, it's embarrassing. it's embarrassing. so as always, it's always right.

>> do you see the balance of december being -- >> no, i think there will be a christmas rally. if you try to get the jump on it, it's been -- no, you've got to wait ten more days before i feel any comfort in recommending -- >> is that related to any clarity regarding the virus? >> 20 years worth of work is how you do it. in between the last ten, seven days the virus itself is causing the downgrade by a lot of people of the economy, and i just think, once again, there's that thread of what happens. number four -- >> we asked him about that on friday

i'm not going with it. >> on a day where norwegian did bring that ship boo dock, the s&p is being led by delta, united, american, royal caribbean. hilton, alaska air, southwest -- >> that's the frank del rio of norwegian saying, listen, it is everywhere people are doing things expecting, you know what, i'm triple vaccinated, and i think that that is not a negative. it's positive. obviously there are people and pike pike knows this, but that's in violation of hipaa. you have to vaccinate everybody,

but you can't discrimination you can't say, already, who is immunocompromised. that's against the law. >> trying to clean up that interview with andrew. i didn't mean to minimize the civil rights, and he's a guy with a real heart. they have 100 planes sitting there. they need them for the olympics to take people around. >> there's a charm offensive on

american companies, where they're getting some very good feel -- i do have this -- china is saying, hey, listen, guys, we're cool, we hope you're cool. i planted a lot of trees they have, liked, wiped that out. this is, again, this ridiculous program. look, if there's any hair on this, it was down -- this is a great cybersecurity company, as is palo alto

i can makes up a reason why they're down, but the growth is extraordinary. what i say is people just want to sell growth right now, and be understood, when i say they, these are big funds that underperform so the idea that they're, one, outper outperforming i think is fanciful i believe -- i think that twit i don't can come back. i've used the product. it's quite robust. i said, let's get some e-mail names so we can push or cricket talk up. by the way, del taco got with jack-in-the-box. they're wile tasty growth margins on cricket taco holy cow one man's treasure is another man's -- i think twilio has a

great product. that's another customer-related product. i'm not giving up on twilio. >> it's a tough take for the chips. micron is a top pick on declining dram -- and what i don't like about it is that -- i have been very partial to this company. sanjay has done a terrific job this stock dropped to 68, and it was in '86, and everybody wants it that's classic bad work. you can't anticipate at the ends of a d-ram cycle that ends with so much inventory price that goes down. i like micron, but you can't trade it they made their chips to be higher end, but the one i really like that's american, you know, i think you have to look at these global foundries

>> i do want to get you on energy real quick. nat gas, lowest since august this september may end up being the warmest on record. in europe nat gas is a major problem. here, we have too much, which is good we do want to meet the demands overseas, but we have -- i would say this wednesday is supposed to snow. this market is stupid enough if you buy natural gas, and then you sell it on thursday. this is stupid you have to go to college to get stupid to follow this market dow chemical blew up last week you go with crowdstrike doing incredibly well.

>> you said that's the problem they thing that plugs power coop the pulling. they were indignity. hydrogen it's the future. i mean, what is that you've got to have more to it than it's the future >> yes yes. let's do kohl's pretty quick kohl's did respond, by the way, and they said we appreciate the ongoing dialogue drexler weighing in this morning, about how some retailers are emphasizing marketing over product, he thinking, to their danger. >> i think the main thing is to emphasize who has the inventory. i felt bad for michelle goss i think she's doing a decent job. it's almost like this engine want to be confused with engine

one. there's too many engines, carl so, like, put six, seven -- there's also john dusken, who's been successful, but also been involved in bed bath, which has come down very badly we have a have and have-not situation. macy's is consider that, came on "mad money", talked about the value that could be created. but walmart again, from 146 down to 137 people want to own proctor. >> they're not just old growth, and i look at these and say, don't get taken in the real growth that comes back is the companies on our next-g

50 you'll find they'll lead you down the wrong path. i really believe that. docusign making a stand. valiant. >> tiffs said a few weeks ago, jim, that rivian had the best chance of stealing institutional mind share from tesla. with these in addition a's today, i wonder if you think that's why we're the lowest since halloween on tesla >> i do. there's nobody with mind share all these companies want very much to have evs it's not like star-kist tuna we don't want charlie. i don't care that companies have a great product, but then rivian is, yes, the one now i've got news for jonas -- i

always say jonas brothers, but ford owns a big piece every rivian they sent a note last week remember when they talked about we're both in the same business, and was it steve mcqueen replied that we're competitors >> you use this a lot. >> right, because this was shocking it was shocking. immediately jim farley comes out and says, you know what? we're out of here as soon as we can. i hope on my investing call on thursday to pin jim down but the more important thing, jim will be on -- i don't want to front run that story >> that's pretty good. there's a line in the stand where tesla won't go below, and i think buyers will come in. but you're absolutely right.

there's too many for instance, we have chargepoint on this list my favorite one, by the way, is enphase. they have the charging and also converting of solar. they're thinking how they may have $12,000 per house that they put in, that they have, like a house wants to be fully solar and ev >> you mean new construction or retrofit >> retrofit. these are things that, again, young investors, this is what young investors want to see they stocks go up they almost road for them. that's a dangerous thing, but i don't want to quell enthusiasm i want people to get excited about it being excited, but not

necessarily pull the trigger draftkings, you know, you go there and it's you win $100 -- i mean, they have these come-ones, but those are really very expensive, because of the cost of acquisition draftkings could be very interesting here they have less than fanduel's exposure, and there's lots -- but if you decide that we think that gambling is for the future or cannabis is for the future, it will be canopy or tilray, but do i like them now do i like penn gaming? not so much. it's a list of companies that every person who is 21 has heard or used. i'll include match and bumble. i asked my wife about bumble,

she said excellent, woman run. she's not millennial, although she looks millennial there, i said something nice. bob pisani, good morning. >> everyone is choosing to believe dr. fauci. she said early signs are encouraging on the omicron variant. cyclicals that would do better on this kind of belief that omicron is more manageable semituckedor -- tech is lags, though apple is on the up side today. a look at some of the movers here today it's a daily rebound in travel and all the booking agencies, booking all things expedia, also bouncing today retail has had a rough monday.

but 2% to 3% move up in most of the retailers. more speculative tech, continues to have modest hits. a lot of them, of course, associated with cathie wood, still to the down side remember when there's concern about higher rates, these stocks that don't have as much in the way of earnings growth this is not something that's and how big is the taper going to be 30 billion, would it move as well on that wile find out september 15th

obviously there will be margin pressures for the next several quarters people are arguing that it will. finally, of course, dr. fauci talking about the micron worries not being overblown. we'll see if that happens. we just don't have that much information. finally, just one note here, hanes brand, only a $5 billion market cap, actually moving to the up side. some big changes here at the new york stock exchange. lynn martin will become the new president of the new york stock exchange, replacing stacey cunningham stacey will go on the board. sharon bowen, who will be the

nyse chair, will replace jeff sprigger, but he will remain as the chairman and of course we'll get to lynn martin very soon, hopefully have her down here on the floor and have a chat. we'll continue with the markets 'coverage as the time-outs is up better than 1% the outperformance has been some of the strongest of the year time for the bond report, as we're watching that ten-year still stubbornly below i know, becky, jim asked you about that this morning. we'll be right back.

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coming up next, jim and stop trading and a reminder get in on the new cnbc investing club with

cramer sign up and find out more at cnbc.com/investingclub or as always, use the qr code on the screen it will take you there dow up almost 500.

let's get to jim and stop trading. >> it took for ever for the dow jones to be the most accepted. will the next gen 50 be a replacement, but it's representative of a new generation and i'm talking about which of the five senior growth stocks in the index and which of the five junior stocks i like. remember, senior growth versus -- is solid and steady and the junior growth is unseasoned and possibly spectacular. >> wait. this is a function of the age of the company or market cap? >> it's the companies that younger people want to know more about. it's not market cap. we didn't pick small ones but they want to know very much about whether they should be buying lucid or fiscar or buying till ray or canopy i'm going to tell you they shouldn't buy any of those but that's not the point the point is they know square,

paypal, virgin galactic and lyft, they don't know the companies in the dow jones industrial average it doesn't mean as much and it's not as relevant. >> sounds like you have a lot this week at night. >> very exciting i have some terrific guests. ford motor is a major focus of mine why? i think ford could be the first serious challenger to the franchise that is tesla. i know jonas calls rivian the one. >> the one. >> let's -- sounds like a cover album. the jonas brothers, the one. >> a good hour see you tonight. with 1% gains on the dow, the s&p 4565 don't go away.

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because platforms this innovative, aren't just made for traders - they're made by them. thinkorswim trading. from td ameritrade. good monday morning. welcome to another hour of "squawk on the street. i'm carl quintanilla with morgan brennan and mike santoli live at post nine of the new york stock exchange david faber has the morning off. the blue chips continue to outpace tech with the dow up better than 1% the nasdaq in the red. busy week ahead as we continue to balance headlines from omicron and the fed. >> that's right. busy and uncertain we're 30 minutes into the trading session.

here are three movers we are watching this morning. rivian is higher things morning on a slew of initiations the street positive on the stock overall. deutsche bank, webb busch, piper sandler and rbc all calling it a buy. morgan stanley's adam jonas says it's, quote, the one that can challenge tesla. you can see those shares are up almost 1% right now. another ev name, lucid motors plunging after the sec subpoenaed the company for documents related to its spac merger with churchhill capital those shares down about 13.5% right now. finally, check out bitcoin that's trading below $50,000 after falling as much as 17% over the weekend we're going to get into that a lot more a little bit later on in the show, mike. >> all right dpl comments from fed chair powell suggest an important shift is under way at the federal reserve. steve liesman joins us with that pivot, steve >> mike, yeah. a major shift under way at the

favre that amounts to the beginning of the end of the fed's massive easing policies. the fed not only to speed up the taper at death meeting but could begin discussions about a series of steps to hike rates perhaps earlier than the market had previously thought among the issues that will be or could be soon on the table the faster taper and how soon to hike, how fast and far, and even the question of reducing the size of the balance sheet or sheets normalization as the fed can call it. the pivot comes as concern about inflation is taking center stage among the most dovish fed officials. a faster taper will give the fed flexibility to hike rates quickly next year if needed. maybe as soon as the mid-march or early may meeting st. louis fed president said friday he wants to get to, quote, live meetings for possible rate hikes as soon as possible no fed official clushgs fed chair jay powell, pushed back on the market pricing next week

the market has the first hike priced in moerls for june, maybe may sometimes, and more strongly september, but the second hike is likely november now public comments suggests fed officials have not made up their minds. decisions will be based on the economic data and the path of the virus. it looks likely the internal debate is about to begin that could lead to faster rate hikes. carl. >> steve, you setus beautifully stocks are rebounding following the jobs numbers on friday and the volatility around the omicron variant. our guest on what we might expect in the quarter to come, president and chief investment officer norman, and strategies brent shooty great to have you both. >> good morning. >> let me begin with you, on steve's comments it does sound like you think persistent inflation will be a dynamic for 2022 >> we do

we think that the inflation levels we've seen over the last couple months are the peak of where inflation will be but that doesn't mean it's going to be higher than it's been over the course of the last number of years and one of the things that the fed certainly is wrestling with as we move into '22. the underlying economy is strong the demand is strong look at where the fourth quarter seems to be coming in which is robust gdp growth which propel more momentum into '22, but will keep inflation a bit higher. >> do you believe that faster taper talk means a sooner hike, moving forward, that expectation and what would that mean for stocks >> we don't necessarily think the faster taper will lead to more rate increases. i think the fed is going to be quite careful. i think it's different when you're buying $120 billion of bonds every month, we're in an economy from an economic growth

standpoint that doesn't really need that so i think tapering is absolutely the right thing to do i think they're going to be careful when it comes to rate hikes as we move into the middle and latter half of '22. >> brian, i want to bring you into this conversation we're up, we're down i mean, very volatile from an equity market standpoint what would you attribute those moves to how do investors position themselves going into 2022 what's your outlook? >> you're at a pivot point you mentioned people have different reactions to the fed tapering, is it necessary or not, cause a weaker or stronger economy, and i think investors are getting a different message. people need to focus on what joseph mentioned, the economy is going to remain strong even if the fed tapers do we need $120 billion worth of accommodation each and every month, the same policy a year and a half ago if the economy remains strong, if inflation does begin to alleviate a bit, i still think there's room to go in the

markets. but i think the leadership is going to be different, so i don't think fed policy has much impact on the economy. i think it has impacts on the market i think hopes, dreams, themes, and meme stocks that have been bid up on excess liquidity and things about what the future may hold, i think them into 2022 are going to focus more on earnings, but also valuation now i think that leads to a rally in things like value stocks, small cap stocks and out of favor for the past six to nine months. >> when you think about the outsized leadership of the mega cap tech companies as well, sounds like you're talking about a rotation out of growth and out of the tech, can the broader market actually sustain gains, if you do see a shift in sensement and a shift in flows, to things like small caps? >> i think that's where people need to focus on active management and tilting their portfolio towards those and not just so much on the broad market this is a setup similar to 1999 where you had a bunch of oddities in the market because

of what occurred in the prior years. i think you have a lot of oddity right now. funk about the next six, seven years the areas of the market did based making sure you're positioned not just on broad markets but more specific. >> i know you also think that value here is worth betting on what it comes down to now, almost continued leadership. if you look at small caps, small cap value has done fine in this little period of volatility here where small cap growth is like flat on the year just about. so in other words, you're thinking those trends are going to continue to assert themselves next year, as opposed to people looking at the washed out kind of growth nasdaq market and bet on a rebound there >> i think historically when economies are accelerating is when you want to play value and small cap. we think trend line growth in '22 is going to be or i should say growth is going to be

above trend line for 2022 and i think that bodes well for that rotation back into value and small caps for that matter, non-u.s. stocks non-u.s. is typically more c cyclical than the u.s. market and '22 will be a better year in those markets as well. >> that's a good final question. how do we think about the u.s. in terms of overall allocation does the variant make emerging markets too risky or inflation dynamic that would keep you away >> no. i mean, certainly we've lowered our international exposure earlier in the year because we were worried about inflation and the central banks began tightening, probably emerging markets have less ability to control their monetary policy. as you move into 2022, international developed markets, if we get containment of the virus f those numbers start coming down, i think that strong economic growth will propel those higher i think the big question that investors have to ask themselves

is, what role does valuation play in markets and stock picking. i still think it matters it hasn't matter for the prior years, but i think it will matter in the future, especially because there is such a huge differential between the valuation of some of the markets that you've mentioned, growth versus value, large versus small, and u.s. versus international. >> yeah. things are interesting on the relative basis guys, we'll see what the week brings joe and brent, see you soon. >> thanks for having us. as we head to a quick break, here is a look at our road map for the rest of the hour watch crypto, getting into nft in a bigger way as bitcoin touches 42,000 over the weekend. >> quote, the one that can challenge tesla. more on rivian and the sec's probe into musk's automaker. live in houston at the world petroleum congress as nat gas hits the lowest level since august.

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welcome back to "squawk on the street." bitcoin holding below 50,000 after the crypto currency fell nearly 20% this weekend hitting the lowest level since september. we saw moves in ether as well. our next guest is investor william quigley, co-founder of tether and chairman and ceo of the worldwide asset exchange,

known as waex, a partnership with amc theaters, we will discuss in a moment. first, given the fact that you have been so prolific in the broader crypto currency space, just do want to get your thought on some of this dramatic volatility we have seen in the assets in recent days? >> sure. well, obviously everyone knows bitcoin is a volatile digital asset, part of that is because it's new, roughly ten years or so in the making, but also because it is innovative a lot of people who are holding it, are still learning ability how crypto works what we've seen is with the influx of people, many people from let's say traditional finance roles, who are holding it and thinking of it as a risk-type asset, the same that say they would hold with or think about with something like a growth stock, we've seen when

there's a risk off mentality with those types of investors, we see weakness in btc when it's risk off, a lot of newer investors tend to reduce their exposure to bitcoin. >> i mean, one of the other natives that i think is circulating around and maybe dovetails right into that, is the idea of bitcoin and some of these other crypto currencies as instruments of leverage. how much is that playing a role in some of these outsized roles that we've seen? >> i don't think the leverage aspect is significant and it's worth noting to your viewers that any of the leverage that crypto has, comes from other crypto people. this does not -- this is not loans coming from government garntsed deposits. while derivative exchanges do leverage, generally speaking, that accounts for maybe a rapid, but pretty small amount of movement in, let's say, btc or

ethereum prices. usually it has to do more -- significant price changes, more with dramatic news, let's say china banning crypto mine org the fed tightening its monetary policy, those tend to be what influences it more at least for the longer term >> so let's get to the news of the day, the fact that you are partnering with amc theaters to issue this, available to the new and existing members of the so-called amc investor connect, which is basically the self-described retail investors in amc what are the details how many nfts are you going to issue and what is that going to mean in terms of i guess trading capabilities for these >> sure. i'm glad to be working with amc on this. we had done a successful drop, nft drop, where you could receive an nft for buying the

spiderman movie ticket in advance. i think that was their second most successful presale of a movie ticket we followed it up with something for the shareholders of amc so they can obtain an nft, an amc investor connect nft, that gives them certain perks, things like advanced screenings, things like concession products at the movie theater, membership in the loyalty program, and i want to emphasize because most people think about a nft as something that holds a media file a picture or video, a snippet of music, nfts are broader and they're mini computers and they can do things like, let's say a shareholder membership program because the nft can't be copied, it's a very reliable way to have someone's identity, for

instance, as an amc shareholder be represented we're beginning to see a lot more nfts used this way. recently in new york city, there was an nft conference and people who held certain nft collections used those to gain admittance to parties and afterconference events the nft is sort of an identity becoming a new phenomenon we're starting to see. >> so in this instance, if you're an amc shareholder who then has this nft, that signifies that person as a shareholder, and you sell the stock, do you keep the nft >> yeah. i think that's the current plan for amc. >> okay. i only ask that because a lot of amc retail shareholder base seems to kind of be in this to say we're in this, and to be kind of identity i wonder how that plays into ongoing kind of registry of the

shareholder base >> yeah. i wouldn't say i definitely would say it's not a registry. it's more at a moment in time if you're a shareholder, you can go to their site, you can register and get this nft as i said, it comes with perks those perks, by the way, since they're nfts themselves, will be tradeable. i think this is an approach amc is taking to experiment with how nfts can be used to communicate better with their shareholders and to explore what's happening with just movie releases in general, allowing new ways for people to learn about these upcoming movies and then get advanced tickets that could then be traded who weren't around when the tickets went on sale. it's a broader program than i would say thinking about it as one thing like a membership

card this is really amc being in front of the curve >> i have to ask you about -- thanks in part to tether you co-founded but not involved with the largest stable coin. do you think it's doing enough to appease regulators and investors in light of the financial disclosure >> yeah. i think tether, the way ijudge tether, and its success, how much is it used? right now, the last 24 hours, traded about 80 plus billion dollars, so you're talking a $30 trillion annual run rate in the trading of tether. tether is used across so many cryptos as a trading pair. while there are times when these disclosures come outabout how it's backed one to one, commercial paper, t-bills, loans, the market and the people who actually use tether, seem to be very comfortable with it because it remains the dominant

stable coin in all of crypto >> we're going to leave the conversation there we didn't get to metaverse you have to come back and join us to discuss that. >> another exciting earner. >> yeah. william quigley, thanks for being with us today. >> thank you still to come, the ceo of tradeweb, that stock up better than 50% this year shares of nvidia, morgan stanley naming it a top pick as regulators say they're putting a pause on an investigation into the company's acquisition of arm. nvidia down 5% this morning. we're back in two.

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and they say it's time to buy the dip as stocks fall on this new variant concerns, however they do downgrade citi to equal weight we're going to stick with rates. rates have been having a big impact on the financial sector and investors are watching the fed closely. let's bring in the ceo of tradeweb, lee olesky tradeweb is a leading global operator of electronic marketplaces for rate, credit, equities and money market. lee, great to see you. that is where i want to start. the fact we've seen volatility not only in equities but the bond market and fixed income more broadly as of late. what's that meant for business >> well, yeah, this is great to be back. this has really been an extraordinary year for tradeweb, a real transformative year, and i think, you know, much of it is due to the acceleration of electronic trading as you point out, we have an

uncertain environment in the rates market with the tapering and interest rate rising, which has been a material impact for our business as you see, we had our november numbers out, our business has surged in november. november was our second biggest volume, october being the first, but we're now trading about a 1.2 trillion a day in volume, which to give people some context, is actually 1 1/2 times the entire equity markets combined we are seeing terrific growth in our business >> that is some context right there. i want to dig into that a little bit more, but first, just the fact that there are really no shortage of macro factors playing too this volatility dynamic we're talking about, what would you attribute that to and how would you expect that to play out on your platform going into 2022? >> yeah. i think it's really two things one is, you know, the pandemic

situation, the remote trading activity, move to home 18 months ago, has accelerated electronic trading. that is a secular change that has occurred rapidly over this time period and you can see that in our numbers and the growth of the market you know, then next to that, you have really what's happening in the rate space as you guys have been pointing out, with respect to tapering and really uncertainty with respect to where interest rates are going to be in the next few years. that has accelerated trading our treasury volumes are up significantly, interest rate swap volumes were up over 75%. treasuries up over 40% these days, tradeweb is now the largest platform for trading treasuries electronically in the world. these numbers are, you know, good reflection of what's happening in the markets >> lee, obviously the long-term

trend toward electronification going on for a long time and seems to have accelerated. i wonder if we get more dislocations in markets if the credit markets don't trade as smoothly as they have been, would you expect on a relative basis, the higher trading venues will do better in other words, traditional phone based or broker based type methods? >> well, you know, it's tough to predict the future, but i can say based on experience and really this trend probably you're pointing out that has occurred, there's much more comfort and many more people s interacting electronically and that will help in times of stress there will be times of stress. that's how markets work and there will be periods where there will be rapid movements and less liquidity the advantages today are, there's more transparency, there's nor connectivity and there's actually more

participants providing markets soar so we are set up for that event, but it's hard to predict what's going to happen specifically. >> lee, we appreciate your insights thank you for joining us stock is under pressure today, up about 50% for the year. >> thank you thanks for having me. still to come this morning, keep your eye on the spac being investigated by federal regulators including the sec shares are down on the news. we'll have more on that coming up alibaba shaking up their e-commerce business and didi continues to slip after announcing its plans to delist from the nyse, although rebounding today softbank feeling pain. we'll get exclusive sound with the secretary of the saleair fo in a moment. dow up 580. [crowd cheering] how's sanchez looking?

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. welcome back to "squawk on the street." i'm leslie picker. here with your cnbc news update. new york city is expanding its vaccine mandate to include private sector workers the move aimed at preventing a spike in covid infections. the mandate goes into effect on december 22nd and expanding vaccination requirements for indoor dining and entertainment venues to include kids 5 to 11 the georgia republican senator who lost his re-election in 2020 is running to become the next governor of the state david perdue will take on current governor brian kemp in next year's election perdue has the endorsement of former president trump. in virginia the last officer of the regiment that inspired "band of brothers" has been laid to rest. 99-year-old edward shane was a member of the easy company and

was involved in some of the most important battles of world war ii and also the first member of his regiment to enter the concentration camp days after its liberation remarkable that mini series is two decades old already. but sad news on that front a life well lived in those 99 years. back to you. >> leslie, thank you very much. taking a look at china tech today, an hour into today's session, top holding alibaba announcing a reorganization of its e-commerce teams, naming a new cfo. let's bring in crane fund advisory chief investment officer brendan ahearn good to see you. we're at an interesting period here, the relationship between the u.s. and china and the capital markets. what was -- how would you characterize the reaction to some of these names last week? was it in line with the news or not? >> we think there was a significant overreaction the week of thanksgiving, we had a very light volume but a very

poor news cycle where a lot of negative headlines weighed on the names in a weak tape from a volume perspective, and last week again, we had another round of negative news, just didi outlining how it may delist from the u.s. exchanges as well as the sec articulating how they're going to enforce the holding foreign companies accountable act. >> so, you are a skeptic on the notion for some -- somehow china is looking to kill its technology leaders, right? >> yeah. 100% i mean, these companies account within k-web for one third of all retail sales inchina you can't see one third of retail sales go away at the same time, the regulation has not been problematic it's really been the implementation of that regulation, the way it was done in terms of multiple regulators moving at different speeds, created this negative narrative, negative news cycle that's really, really weighed on the space, carl. >> right

what put as s-- puts a stop to that >> the glaeger to cycle we are over that. the user data and protection laws went into place september 1st, november 1st. what we need is catalysts and we think the csrc addressed many of the issues weighing on the names over the weekend on sunday they put out a press release saying they're not trying to kill these companies they're not eliminating vies or disallow foreign listings and trying to solve the long-running pcob issue that led to the holding foreign companies accountability act. >> we're seeing the clamp down in both countries. the sec is taking a tougher stance as well we can point to this didi delisting. is it going to continue to fuel, i guess, the disentanglement of u.s. and china investor flows as this continues to evolve

>> the two countries are highly intertwined from an economic perspective. china's trade data continues to show that it's not only a large exporter, but a large importer we saw the boeing news about the 737 max being approved in china. apple's revenues doubled in china in q3 from $7 billion to $14 billion. the countries are very intertwined economically that can't go away almost $400 billion of revenue is generated in china from u.s. publicly traded companies. so this is a big issue ultimately the two sides have to get together and figure this out. on the holding foreign companies accountable act, the companies are in a bind. they were allowed to list here and now this law has them stuck between u.s. law and chinese law as well as over, you know, about 1.5 trillion of u.s. savers. it's not chinese capital in these stocks it's u.s. savers are in these

names, and it's a really unfortunate situation for both the shareholders as well as the companies, stuck between these two conflicting laws >> on that point of who owns these companies directly or indirectly, i was taking a look at the net flows in k-webb, profitable for months it seems, so retail investors are not the ones, at least by way of your fund, that have been abandoning this group presumably hedge funds and other fiduciaries are the ones that say we can't take that risk? >> we believe an element of what's happening is a lot of investors recognize there is an escape hatch, investors such as ourselves, we can convert alibaba u.s. into the hong kong shares you tell your custodian, it's not just alibaba's relist, you have bado, billy billy, net ease, weibo will relist on wednesday in hong kong, so a lot of investors are saying i can

take potentially a loss in the individual names, give that money to k-web to crane shares, allow them to do the conversion if we see a strict enforcement of holding foreign companies we're going to move out of the u.s. names if in two or three years we see a strong enforcement. we're not going to stand idle and watch the companies go to zero we're going to protect our investors' capital and move to hong kong. if not given a choice that's the path we'll take. >> right fascinating. obviously a big story as we repeatedly come into the office to see a wave of headlines out of china appreciate it very much. good to see you. >> thank you likewise. we just talked the economic and financial dynamics of the u.s./china relationship. national security is also forefront and needs to be factored into the macro picture for investors. china was perhaps the most pressing topic this weekend at the reagan national defense forum in southern california gathering of 700 ceos, top pentagon official an lawmakers focused on how the u.s. should

address china's advancing military power i had the chance to speak to the top ranking civilian in the salesforce, secretary frank kendall, and asked him if we're in a new arms race >> we're not in a traditional arms race where we try to buy more than somebody else, and they buy more than we are. we're in a race for quality, for military superiority, largely through technology china has observed, going back to the gulf war 30 years ago, how we project power and what we rely upon to do that and building systems that are capable, over a long time now, trying to target those assets of the united states. we have to respond we're in a race in that sense. >> one place china is arguably pulling ahead in terms of technology and capability is hypersonic missiles which that cont tested this summer. that is one piece in the puzzle. general c.q. brown the top ranking military counterpart

spoke to me about the need for the air force to move faster >> we've always been focussed on hardware we operate in a software world we have to move at the pace of the rest of the world, and that's the challenge i think sometimes for our approach within the department of defense, we've -- we're more industrial based we have to get more to a software based approach, which means we have to go faster and there's things we can learn from the industry partners of how we adjust to work together to move faster together. >> what are some of the emerging technologies or capabilities you're excited about >> this past week i was in silicon valley and one of those is ev, electric vertical takeoff and landing vehicles i met wait couple companies to see where they were. it was interesting because not only where they are today, but what their vision is for the future i see some natural applications that would support the united states air force

they look how it might support a commercial venture that's where that collaboration comes together, where we can work together to build upon capabilities that require not just for the air force but also might operate in a commercial world. >> some high-profile examples of companies that have been working with the air force to develop their dual use tech. speaking of ev, c 3 ai, but transitioning seed funding and r&d work from small startups to bring that emerging tech to the battlefield is tough so much so that venture capitalists funding the defense focused startups and general brown call this the valley of death. in his address this weekend, defense secretary lloyd austin told attendee, the pentagon is, quote, doubling down on tapping the talent of silicon valley to cut the red tape and address the issue. we have a ways to go we can talk about the shift towards software, but hardware is still important to the d.o.d.

in the case of the air force, the f-35, lockheed martin makes, remains the cornerstone of the fighter fleet, even as that service is developing a sixth generation fighter aircraft as well. >> seems like full circle in terms of the military going to silicon valley silicon valley kind of grew out of the defense business. >> semiconductors were originally funded and seeded in large part by the government in the midst of the cold war in silicon valley to your point that was a relationship that started together and has since drifted apart. there is a lot of red tape it is hard to work with the d.o.d. officials in the d.o.d. will say it themselves. it was the topic of a panel i moderated at the reagan forum this weekend that included general brown, but also folks like vc investor -- >> the clearances you need to work on this material limits your universe of vendors in a big way. >> it does. >> after the break, crude oil higher this morning after falling for six straight weeks

we'll take you live to houston and the world petroleum congress. as i observe investors balance risk and reward, i see one element securing portfolios, time after time. gold. your strategic advantage.

a year-end rally could materialize, despite recent volatility, says one top strategist her outlook for december and beyond on tradingnation.cnbc.com more "squawk on the street" ahead. to your financial plan. bill, mary? hey... it's our former broker carl. carl, say hi to nina, our schwab financial consultant. hm... i know how difficult these calls can be. not with schwab. nina made it easier to set up our financial plan. we can check in on it anytime. it changes when our goals change. planning can't be that easy. actually, it can be, carl. look forward to planning with schwab. schwab! ♪♪ schwab! ♪ ♪ ♪ digital transformation has failed to take off. because it hasn't removed the endless mundane work we all hate.

♪ ♪ ♪ automation can solve that by taking on repetitive tasks for us. unleash your potential. uipath. reboot work. down around 6% after being up as much as 10% this morning this is the special purpose acquisition company or spac/blank check company in the process of taking former president donald trump's social media venture public two bodies have made requests for information related to the spac and the trump media ventures the s.e.c. and financial regulatory authority have made those requests

the sec is looking at communications between the spac and trump media, while finra looking for information around the spac around its merger with trump media. it's important to note neither means necessarily that anything bad has happened these are requests for information at this stage, but you can see the intraday move up 10%, down 6%, a big swing in those shares back over to you >> to kick things off first time since 1987 in the united states, and by the way, carl, the attendance has gone up in the last two weeks from 3500 to 5,000. people aren't scared off

what looks scared right now, the natural gas market crushed lately, qatar, the world's leading natural gas, 61 different countries here as well of course all the big majors are here we have robot dogs from boston dynamicses here as well. qatar talking lng, chevron this is one of the biggest conferences in the world and so many questions right now here's the question. we talked about it on "squawk box. what's the long-term future for this industry? some would argue, how are you doing? i don't have a bone. some would argue the industry may not have a long-term future, guys, and that's why we're here and going to talk with the ceos of chevron and total and pioneer and diamondback energy and maybe some representatives from some of the countries overseas. ironically, i did a twitter poll, wanted to see where people thought oil prices might be going because i have a feeling that we might be asking that question, of course, and it was interesting. i said in ten years where do you

see the price of oil i thought most people would say sort of zero or gone i'm surprised, the majority of the respondents said about the same and more said it would be more expensive than down i was surprised by those findings over the next two days, we're going to be talking to the ceos and global energy leaders about where this future goes in a net zero 2050 world and can this industry actually help decarbonize? people are going to say it's green washing and saying etg slogans. can they have an honest dialog over the next couple days.

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welcome back to "squawk on the street" i'm dominic chu. stocks are higher today and right now just off session highs as white house chief medical adviser dr. anthony fauci says early data of the omicron variant severity is, quote, encouraging. that is fueling some of the notable gains in travel-related stocks with the airline leading the industrial sector as well over the consumer discretionary sector we are monitoring a outbreak on

a cruise line ship docked outside of new orleans keep an eye on those consumer discretionary. and travel companies carl, back over to you >> dom, thanks very much. coming up on "techcheck," we're joined by alexis ohanian begins at 11:00 a.m. eastern time with the dow up 600 don't awhe.gonyer what's strong with me? i know when i'm ready for a rest day. so i can be ready for anything... tomorrow. find out what's strong with you with fitbit sense and daily readiness. at vanguard,

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welcome back to "squawk on the street." heading into 2022, let's bring in jason gableman. good to talk to you today. you know, just kind of dialing back looking at the big picture this year, if you had crude oil, wti going from, what, 45 up towards 70, natural gas 250 up into the 4s would seem like a strong year, but we're pulling back so hard on oil and gas prices from recent highs, people probably wondering what it means for the setup into 2022. broadly speaking, how do you think the industry is set up >> yeah, thanks for having me. i think the industry is set up well you have companies still discussing capital discipline and not chasing oil prices

higher and that enables them to return more free cash flow on the oil price more broadly you have opec plus supply group maintaining supply to the market in a way that's supported oil prices and even into this most recent meeting, december 1st, the cartel kept open the potential to change the supply coming out to market because omicron data is coming out concurrent with the meeting occurring. so, it's showing that that supply group is going to help support oil prices at least over the next year. >> when you mentioned that companies maintaining supply discipline, not necessarily chasing prices higher and investing in new supply as much as maybe they have in the past, do you consider those companies doing that to be the good bets right here or do you think that is just generally supportive of the oil markets? >> well, ithink both

i think that company -- i think that shareholders want more cash returned to them rather than growing production like we saw in the prior cycle and earlier this -- earlier last decade. and at the same time, that helps underlying oil price because you have less supply coming to market, so it's actually helpful for those companies on two fronts, both having more free cash flow available and helping to underpin oil prices >> jason, given the conversation we're having right now, what are your top picks for oil and gas stocks >> yeah. so i like chevron and shell the best i think for the reasons that we've discussed. they have looking over the next year and further out they have the best ability to grow free cash flow and the best ability to return incremental to cash to shareholders shell trading at double digit, shareholder return yields out in '22 and '23 and chevron at about

8% or so and discussing the ability to continue to grow the dividend at about 6% per year. >> are we going to get more consolidation this sector? >> we had a pretty good run so far this year. i think this has been one of the strongest years in terms of m & a and you've seen smaller players vanish being gobbled up by bigger players or going bankrupt, so the pace may slow down from here, especially as oil prices have rebounded and perhaps companies that are still out there looking to be acquired are asking for a higher valuation than earlier this year and last year. >> yeah. probably did change the equation given what happened with share prices and the commodity prices this year. jason, appreciate your time today. thank you very much. >> thank you all right, we want to come back and get a check on a few ev names to close out the hour. got a bunch of initiations this morning on rivian.

most of them positive. goldman, jp morgan and wells all with a neutral rating. others calling it a buy. morgan stanley says it is the one that can challenge tesla lucid motors subpoenaed by the s.e.c., asking for documents related to its spac merger with churchill capital. tesla probing the company over defects related to their solar panels new york times wasn't so kind to musk's vision for auto pilot tesla down 3%, morgan, lose that $1,000 price level that people had been focussed on for a while, but it's been an interesting dynamic where this emerging sector is almost like tesla as the incumbent, the other up starts taking some of their potential future growth out. >> let's be clear, musk has sold something like $10 billion in the tesla stock the middle of this conversation, too so in some ways it's hanging on to those levels. the rivian piece of the equation is interesting to me

ipoed 78 bucks a share 109.70 a company starting to see revenue is very good telling. >> 30% above the ipo price and peo people say buy it here. "techcheck" starts now that will do it for "squawk on the street." ♪ ♪ good monday morning. welcome to "techcheck" i'm carl quintanilla with jon fortt and deirdre bosa today the selloff in tech as the nasdaq shows some signs of a rebound is now the time to buy at a discount? we'll talk about it. then the buzzfeed spac losing some of its buzz. look inside the latest deal that's raising eyebrows today. don't miss reddit founder alexis