boilermakers as rutgers knocked off the number one team in the nation in college hoops. heard from mr. quick, he said he cried like a baby last night in a stunning buzzer beater i hope kyle saw it i have rutgers red on. >> i did >> i couldn't bet on it since it's a new jersey team so i didn't lose money. >> that's why we won. >> it's friday, december 10th, 2021 and "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc we're in the red we're in the red go rutgers we'll talk about that in this case but i'm becky quick along with joe kernen and andrew ross sorkin u.s. equity futures this morning in the green but barely.

we're awaiting what happens with the inflation numbers. expectation is they're going to be pretty hot and if you're looking at the year over year numbers that's going to be a big deal too dow up by 15 points, s&p up by 7, nasdaq up by 29 yesterday was a down day for the markets although i wouldn't call it that for the do w, the dow down by less than 1 point. it was breaking a three day winning streak for the rest of the major averages but week to date you're talking about gains, for the dow in particular up 3.4% for the week-to-date the s&p and nasdaq both up by 2.8% even after the losses yesterday. nasdaq was off 1.7% yesterday. over the course of the week looking pretty positive. treasury market right now we've been watching this closely again. 10 year is above 1.5% this morning, just barely, 1.515% 30 year at 1.885 on today's squawk planner, the

data point coming at 8:30 a.m. we'll get the latest read on consumer prices and forecasters expect an increase of .7% for november that translates to a 6.7% increase from a year ago, that would be the highest yearly jump in inflation since 1982. there's a chance things could come in hotter and has everyone wondering what the fed could do next these numbers matter and they're coming up at 8:30 this morning the fda expanding eligibility for the pfizer booster shot to 16 and 17-year-olds yesterday at least six months after they complete their first two shots hours later the cdc strongly encouraged teenagers in that age group to get a booster shot to strengthen the protection against omicron and other variants it will allow high school students to immediately get their third shot and should help try to stem some of this so we will see, joe.

that story we talked about yesterday, starbucks. >> let's talk about this one. >> one store in buffalo. it's -- the numbers are small and there's voting irregularities, did you see that they're challenging the other two stores how do you have voting irregularities with 14 people voting. >> they said it was a question of who's eligible to vote. my guess is are you a full-time worker >> we got election problems and challenges even at starbucks but one did vote to unionize that's a first workers at the elmwood avenue location voted 19 to 8 in favor. they watched the vote count over zoom employees at another location voted against, and a third store votes are still being counted. there are apparently some hanging chads. >> it's just so breathless and so ridiculous. if you read the headlines about

this this is one store in america, i don't even think it's 19, i think technically it's 12 people who voted for it 12 to 8 and then there's questions about these other people about the actual numbers so we're talking about 12 people and i think -- i'm convinced to my dying day, if anyone did a true deep dive into this, you would see many of those 12 people were effectively hired into that starbucks effectively to unionize. meaning it was an organized effort to yi unionize. everybody is going crazy over this -- >> that's because in other states there's workers, the baristas are saying way to go, buffalo. they're talking about it >> i see >> a lot of starbucks stores right now that aren't company owned, there's like 6,000 of them that are unionized already

in airports and grocery stores and everything else. you know how these things work, especially in this day and age, andrew you're on the other side of this on this issue, most other issues if you light a fuse with a woke thing like that, it's going to spread the stock is not down, but i think starbucks' actions in the way management approached this doesn't smell good to a lot of people and, you know, people that just think that workers everywhere have a right to do whatever they think is in their best interest for themselves and their family and everything else. >> they have a right to do whatever they want i ask you, though, because we talked about it before, do you want this company -- this company, i say it -- i'm specifically talking about this company -- >> what do you think i really want >> i can't imagine that you're supporting the unionization of the employees. >> i'm not a fan of unions i'm a fan of free markets. i give everybody the right to do

it, obviously. but you're down to some of the lowest levels of union participation that we've had ever but the attitude towards people in the country is as positive towards worker rights as it has been in 40 or 50 years. >> it's a reflection of the last couple of years where the workers who were on the front lines can't work from home. >> i can't believe it's one of your fellow liberals that doesn't want it in his back yard -- >> the other question is what happens to the workers after this. >> howard schultz with the coffee cups with the woke messages on it -- >> do what i say not what i do. >> when push comes to shove. >> no no that's what's wrong here >> not in my backyard. your voice is going up i get uncomfortable when your voice goes up like that. we're not talking about mandates we're talking about coffee. >> starbucks has pulled up the barista level worker over the last 20 years more than any

other company in america so the idea we're looking at these 12 people or 19 people -- >> that's where barista's do best -- did you say they pulled up the living level of baristas all around the world, did you really just say that i think did you. let's get to rutgers i want you to give it to the two guys we have coming on you feel very strongly about this, so i want you to give it to the labor -- we have a labor guy -- >> it troubles me so deeply. you and i have talked about this you want companies to be flexible one of the things that's interesting is that the employees can work at different stores they provide the different benefits -- >> you know how i feel but with that said, i understand the sentiment and how it's going to be something that we're talking about. especially with the worker shortages and labor -- >> the question is going to be what happens to the workers after this

do they get more advantages, do they get more benefits what happens once you unionize, and i think that's what people will watch closely too >> come in after sag or something. >> i might be in one. >> are you in sag? sorkin, this is not like you. >> i was a union steward at "the wall street journal. >> there's one other distinction because we're talking about one store, maybe two, in fact, i would argue to you that they will be disadvantaged in the end -- >> the workers you mean? >> the workers because right now maybe those specific 12 workers think they'll be advantaged but they're not going to be able to have the same type of flexible work hours, necessarily all the benefits that run through the company because they're going to be negotiating on their own independently of everybody else. >> you mean the company will

play harder ball because of the union idea we're doing things that workers want anyway, if you unionize we're not going to give you the same things and then you have to negotiate to try to get the same things back? >> i'm not sure this is investable enough. seriously. if it's a one stock thing we're talking about, does it say what we should do with starbucks? >> it speaks to the movement in the country. >> when we get off topic i start chafing. >> let me change the topic rutgers shocking the number one team in the nation in college basketball last night. this was amazing i watched the entire game, we watched this live. i can't believe how they pulled this off here's ron harper. the next-to-last possession for purdue they make this shot and -- >> no time. >> -- as a result with four seconds left, they make the shot, four seconds left, ron harper takes it, ron harper jr. shoots it with about .2 seconds

left, and makes it they defeated purdue who had just become the number one ranked team in the nation. this is the first time that rutgers in its history has beat a number one team. probably the biggest moment of basketball they've seen in the entire place nobody anticipated this, a rough start to the year, this was a team that was supposed to be great, remember we went to the ncaa last year won a game at the tournament for the first time in 38 years and the two guys responsible for it, ron harper jr. and geo baker came back and resigned because of covid last year they didn't get to play in front of the crowds geo baker was out last night, he had the flu. injured before that. they hadn't been doing well. >> they got blown out by illinois 35 points. >> we got beat by lafayette.

>> no timeouts left. i think it's good there weren't. they would have thrown it in, they had to do it on the fly i was shocked watching it this morning. your husband sent it to me and said he was crying did kyle see it? >> everybody stayed up way too late last night. none of us got sleep. >> i watched the layup, oh my god when that happened with 3 seconds left it's over you're down a point and they had to just react >> boom. >> harper goes down there and throws it. that was -- that's one of the -- you tell me sports is not like -- doesn't raise the level of -- this is bigger than anything than happened in the markets. >> this is like march madness. >> it elevates the human experience. >> for my family it was a big deal we were all watching my parents are boil makers, they went to purdue met there everybody was watching this. my brothers and sisters in law all of us went to rutgers so

this was a family thing. >> ron harper senior went to miami of ohio and they retired his number what did he win, five or six nba championships some with chicago, some with the lakers i loved it i wore red -- >> thank you i did too. >> i loved it because i can't bet on local teams -- >> we love that you can't bet on them either. you would have made us lose if you bet on us. >> oh, shut up i think you're only getting 13 points really. >> is that the spread? i thought it would have been more than that. >> i would have taken purdue for sure i would have lost money. i would have lost like $3, so i thank you. a lot more to come this morning. we're going to talk about the big number the big inflation data due later this morning we'll talk market strategy and which stocks to buy ahead of the news plus how one major tech company is responding to employee demands to adjust their wages for inflation. they're not. we'll tell you who that is

"squawk box" returns right after this live shot of times square. at vanguard, you're more than just an investor, you're an owner with access to financial advice, tools and a personalized plan that helps you build a future for those you love. vanguard. become an owner.

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we'll keep you ready for what's next. comcast business powering possibilities. welcome back to "squawk box. top executives at public companies are selling their shares and doing it at historic base new data from "the wall street journal" finding 48 top executives have collected more than $200 million each from stock sales more than quad

quadrupling the average over the past 20 years. joining us now is paul hicky good morning to you. what do you make of the sales? is this a tax story? you look at larry page or elon musk and everybody, what's going on here? >> yeah, so i mean, who isn't selling these days it seems as far as the insiders, at least that's what the headlines are telling us i think some of it does stem from taxes when you think about it, nobody is arguing that the market is exceptionally cheap at this point. it's the fact that there's not a lot of other alternatives, especially in the large cap space the valuations are expensive. within the market, though, there are some areas that are more attractive than others you look at small caps and, you know, people refer to small caps as the russell 2000, which is over 60 times earning but in the s&p 600, with more

companies with earnings and less companies without earnings, the valuations are trading at some of the cheapest levels relative to large caps in the last 25 years, the only times the s&p 600 has had a cheaper valuation relative to the s&p 500 q 3 last year before a strong rally and back in the late '90s, early 2000s. i think in the large cap sector some of the stocks are trading at valuations that you couldn't consider necessarily attractive at these levels but there are areas within individual stocks at the lower cap levels more attractive opportunities. >> when you've seen insiders sell this is a sign that this is something you should also be selling. is that the case in this instance >> honestly, i don't know. if you look in '99, 2000, that's what this article would point to and that's what the people point to, the high levels of insider

selling, but throughout the last 20 years there's been periods we've seen insiders selling and it hasn't been a negative signal back in may we saw big levels of insiders selling according to these metrics and the market has continued to do relatively well from there i don't think it would necessarily be a be all, end all just that specific indicator being something that you should make your investment decisions on there's plenty of other things to focus on here, especially inflation and the fed coming up next week. >> to the extent that there is selling going on right now as a result of taxes, which might be a situation because some people are expecting potentially higher taxes in the new year, is that creating opportunities are the specific stocks you think where people should be looking? >> yeah, so i think i mean, that's a great point taxes are not going down in the

future i think we can all agree on that, and you can look at some stocks that this year may have been under pressure because investors are taking losses. you have some stocks that have done well, people are taking gains but look at a stock like boeing, very impacted by covid, but now towards the end of the year stock hasn't done well, people are taking losses in the stock to offset gain that's a stock going forward into next year you can see that impact of tax loss selling abate and see the stock do better going forward from here. so i think that's one stock you can look at as an opportunity and travel, even with the headlines increased omicron variant and fears over what it's going to impact, we haven't seen a big decline in air travel in the last two weeks relative to 2019 levels. we're still about 20% off those levels which is what we were right before thanksgiving. so that's an encouraging signal that people are still willing to

travel when you talk to people for business travel, it is starting to pick up people are not staying home and doing all their business via zoom. >> are you a believer in a santa claus rally at this point? >> the volatility we've seen in the first half of december has people thinking santa is not coming this year when you look at december historically you find through the middle of the month december is usually flat on a month to date basis, all of the gains for december tend to come in the second half. i think that fits nicely with the fact that the fed is coming up next week, in the middle of the month. not much given what we've heard from powell already that the fed can say in december that's going to surprise markets. so that could be a cathartic event for investors as we get into the second half of the month and towards year end >> paul from your lips thank you so very, very much appreciate it. >> thank you have a good one

take care. >> when we come back, the inflation debate for employers, will they respond by adjusting pay? cnbc has obtained audio of an internal discussion about this topic at a major tech company. we have that story next. as we head to a break, check out the biggest premarket winners and losers in the s&p 500. oracle check it out up more than 11%. "squawk box" will be right back. ♪ ♪ well would you look at that? ♪ ♪ jerry, you've got to see this. seen it. trust me, after 15 walks ...it gets a little old. ugh. i really should be retired by now. wish i'd invested when i had the chance... to the moon! [thud] [clunk] ugh...

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rising inflation creates a problem for employers whether to respond with wage hikes. google executives address the issue at an all-hands meeting tuesday of this week according to an audio recording obtained by cnbc, google is not planning company-wide raises to plan for inflation google's vp told managers would inform this week of compensation for the next year and adjustmentments would be made by performance. probably not surprising. probably something that a lot of companies are considering and probably doing at this point >> we'll see today, too. this number that we're getting, i feel it. do you feel it do you feel the trend? >> i do. >> there are things happening. >> if you had to guess hotter or cooler, which way would you go i think i take hotter. >> it's like the jobs numbers, i don't know how to figure any given month. it'll be hot today but the claims number, it's a good sign

but it's also a sign of nobody can get workers. and you have to pay more, and this is a real -- >> not necessarily in places -- >> -- sea change. >> i think google is able to do this because they already pay well we're going to pay up for the people who we definitely want to keep that's not the case for a lot of places, like a restaurant or retail store where they can't get enough bodies for these jobs. >> just in general when you do look at the low end and how wages have risen over the past 20 years, it's lagged just about every metric so there's going to be some catch up, there's no doubt it's all part of the bigger picture, isn't it? as we sort of see the other side of what's been going on -- look how long it took japan to get out of its own way in terms of inflation and everything else. seems everything is changing the pandemic plays into it and everything else. >> jump started it. >> what's that

>> it jump started it for sure. >> probably that's the way you would characterize it. coming up finding new revenue stream for legalized pot, some are turning to cannabis bars. i had a few, they were delicious. do they mean that? do they mean bars or bars? frank holland is going to clear it all up for us as we head to break, here's a look at yesterday's s&p 500 winners and losers hey businesses! you all deserve something epic! so we're giving every business, our best deals on every iphone - including the iphone 13 pro with 5g. that's the one with the amazing camera? yep! every business deserves it... like ones that re-opened! hi, we have an appointment. and every new business that just opened!

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good friday morning, welcome back to "squawk box. we've been watching the futures this morning you're going to see right now things are picking up a little bit. the dow futures indicated up by about 58 points, s&p 500 up by 12, nasdaq up by 41. a down day for the markets, barely for the dow, less than one point. and the nasdaq was down by 1.7%.

this week has been good for the market, three days in a row of gains and the dow up by 3.4% for the week gains of 2.8% for the s&p and nasdaq at this point that's even with the down day for the nasdaq u.s. cannabis companies are coming up with ways to sell higher projects creating cannabisbars frank holland joins us, he's got the latest on this story, too. hey, frank. >> reporter: good morning, cannabis consumption lounges the new offers from cannabis companies in the $31 billion u.s. market. we're at a lounge owned by usmso green thumb industries they offer bongs, sell weed in addition to pre-rolled joins and can of beverage. another operator, planet 13 are planning to open the largest lounge in the world on the las vegas strip in 2022.

the ceo really sees it as an outlet for sales of the higher margin and premium projects like drinkable cannabis and edible capsules that make up less than 12% of the market. >> it's a huge profit margin for us just because of what we sell, how we sell it it's -- what we're going to provide the entertainment value, being able to get together >> reporter: 18 states have legalized recreational cannabis, analyst andrew carter sees bar growth in all the states as they look to build the customer loyalty. we're at a lounge owned by green thumb industries, i spoke to the ceo he said that's his goal. trying to build brand loyalty to his beverage, he sees these bars as an outlet to build that loyalty before u.s. consumer package good companies enter the market. >> for american consumer package

goods brands mean pricing power, consumers are willing to pay for that brand whether it's coffee, water, chocolate we believe cannabis will be a $180 billion consumer goods package industry sflr cannabis is a revenue generator for the companies and states when it comes to tax revenue we're in illinois where they legalized back in 2000 this year they're on pace to outstrip alcohol taxes by 41%. colorado, where they legalized back in 2000, this year cannabis taxes look to be 600% higher than alcohol taxes. >> those are big numbers let me just ask you, if this is a way of really like raising the margins they're doing on something like that. if you have a pre-rolled joint that a waiter brings you on a fancy tray and sets it down, what kind of premium is that over buying it and doing it yourself >> number one it's like a bar. when you go to a bar, you pay on

the price you pay in the liquor store? no you pay for the shot. so they'll charge more, but it's ways to introduce the higher margin products. i spoke to steeple, they said this can of drink has about a nickel worth of cannabis in it and you can sell it for upwardsover $5, compared to cannabis flower, a thin margin business. >> i have a serious question, frank. when you -- it's the problem with all cannabis consumption, and that is that, you know, when you drink you can have like a drink or two and not go above a . -- whatever it is. i think you go right from straight to stoned when you consume anything so in the privacy of your own home it's one thing. but aren't you, by definition, out at one of these lounges and -- if i were the police force, i'd set up a dui testing

point outside. how do you get home? maybe uber or something. just seems like if it's not at your home you have to find a way to get back to your home after you imbibe maybe in huge cities okay, manhattan. but i don't see that have they thought about that >> reporter: that's a great question this is a cannabis bar they sell bars of edible cannabis to answer your earlier question getting home, you have personal responsibility it's adult recreational use cannabis like alcohol you're responsible to get home that is an issue i spoke to steeple they said that's one of the questions the stores have to answer. in most states a local municipality has the right to option out of this so that's one issue they have to address. but the revenue growth opportunities for the companies and the tax growth oppo opportus

for the states and towns, hard to deny. >> you can go and have two beers i don't think that puts you above a .08 if you're my size. but with cannabis -- >> i think cannabis hits everybody differently. sounds like in your experience you try an edible or drinkable and you feel intoxicated it's adult use recreational cannabis, if you need an uber or designated driver that's up to you. >> the pot they have today, there's no half wasted you are wasted i'm told. >> what was it like back in the day, joe >> reporter: back in the day. >> back in the day you could smoke a lot more my friends would say. >> reporter: i know you never inhaled joe. >> i never exhaled, thanks frank. see you later. coming up one starbucks location becoming the first in the nation to vote to unionize we'll talk about whether this is the beginning of a new trend in labor right after the break.

and then a restauranteer join us to talk about the labor and supply issues in the restaurant business and the impact of vaccine mandates on in-person dining a big piece in the journal on that today a reminder you can watch and listen to us live at anyimon e bcpp te your record label is taking off. but so is your sound engineer. you need to hire.

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yesterday workers at one buffalo area store of starbucks made history when they voted to unionize it's the first starbucks to form a union in company history at a company store ever but the coffee chain prevailed at another cafe which voted against unionizing while voting results at a third location are still unknown.

the voting ends a months long battle could have an effect theoretically for the restaurant business they warned analysts last quarter that earnings for fiscal 2022 would be hurt by rising costs from the pandemic including wages. for more on this and other union developments as well and the possible effects on the industry in general we are joined now by -- i can't believe they had to spell this out for me peter, peter capelli. i got it peter capelli, thank you director of the center for human resources at the wharton school at the university of pennsylvania and nick setyan, senior equity analyst from web bush sq securities i'll start with you nick, just to ask you at this point would you change any of your numbers, ratings,

price targets? had would you change anything at all for starbucks based on yesterday's development? >> no. no, i mean, i think they were pretty early in terms of giving analysts the heads up that this may happen they were pretty proactive in raising the wages. it's a minimum of 15, but it's actually $17 the average wage by the summer of '22. so a lot of those numbers came down for '22 because of how pro active they were in letting us know >> so you're an analyst and you cover a lot of different areas broaden it out a little bit and then i'm going to ask peter, our expert, you know, whether this is some type of data point we're going to remember in the future that represents some type of sea change, do you think it does for the companies you cover, nick? >> this is an exclamation point

in terms of what we're already seeing clearly labor has more power than we've seen in probably over two decades. we'll probably see labor inflation as it is industry wide and this to me is, you know, just a underlying effect that this is not something that's transient in nature, right you can literally quit your job at lunch, walk down the street and get hired at a restaurant, you know, an hour later. we're hearing things like $25 is not enough to get a cook in the night shift in the midwest so, you know, clearly there's inflation, it's here to stay it's impacting food cost, supply chains as well so across the board we'll see inflation, going forward beyond '22 we're likely to see single digit inflation. highest numbers we've seen in over two decades >> peter, what do you think this

means just broadly, if anything? >> david, i'm still getting over the cannabis story here. i'll try to focus back on this one. you know, the interesting thing is that in the country as a whole this is the highest level of public support for unions that we've had since the 1960s so 68% of americans say they support trade unions now and i think what's interesting is that employers have so much power in the process of elections, that it's astonishing that they ever lose. and in this case what's interesting is that starbucks brought all the big guns in this election of 30 people, right, and they still lost, only in this one case. so i think the -- the importance of this is the kind of demonstration effect you know that unions could pop up in restaurants, which are about the hardest place to organize because people don't stay very long in those places,

right. so i imagine it will make a lot of companies rethink what they're doing. by the way, what workers want most in unionization is not wage increases, it's the ability to redress management decisions and do something about what they think the local managers are doing which is not fair, right so i think maybe if you're on the company side you're starting to rethink how are we treating these folks? i think they have two choices, do we want to try to buy out union support or try to be even tougher in trying to beat unions in their organizing campaigns? >> peter, do you think it's indicative of whether this was important, the amount of time and effort that starbucks spent on this? as you said, they brought out the big guns if it's meaningless they sure took it seriously. >> that's right. they took it really seriously. it's kind of like a small test of how they think they're doing with their employees and the

fact they could lose anywhere is in some ways kind of surprising. so i think it is going to make them rethink a little bit how they're treating their employees. i don't think this is just about wages. i think it's not largely about wages. frankly the fact it's a tight labor market could go the other way. if you don't like your boss and employer, walk down the street and get another job. so it doesn't always make it easier in cases like this to organize because to organize, you got to stay and care enough about it to bother to vote >> but peter, this is the question that i have i'm reading all of these, what i would describe as breathless stories about this particular circumstance and when you look at who these workers are in this instance, this was, unto itself it appears, at least from the outside, an organized effort meaning that there were people brought in and even hired on the assumption that they would vote in favor this was like an organized

this was not necessarily a grass roots effort this was like let's take this one store, see if we can move from this store to this store to this store the question is, can you therefore extrapolate out that this then takes over at every store around the country >> no. of course not. this is a part of the world that had a history of strong unions and as you say, the union spent a ton of effort to try to win this one but on the other hand, so did the company. and the companies have a lot more resources and control over the employees than the unions. the unions are the outsiders in this, right. >> we're talking about 19 people, peter! it's 19 people. >> i know, david, yeah and that is, of course, interesting but it is a store, right so i think the issue is, the symbolism is, if you can do it here can you do it someplace else. >> of course. >> and how much money and effort the company also spent trying to keep the union out in this one

store makes it a little test, a little battleground. >> this isn't the first time that -- i don't know what kind of tactics you refer to this, but whenever unions -- whenever you try to get a foothold somewhere you don't know what was happening but from both management and labor on how things get started i don't think this is an outlier for the way a union gets seated at a place that's resis tent to it for 50 years. >> the unions have been winning about 50% of their election votes, which sounds like a lot, except they don't try to go to an election until they think they have 90% of the people supporting, because during the campaign period the employers have the muscle and the ability to change minds. so i don't think this is unusual. >> nick, are you lobbying to cover the new pot lounge sector? then you have to do a lot of research, i guess. is that something you're asking

for? >>, you know, frankly there hasn't been enough investor interest in the cannabis >> they're not open yet. they're not open yet >> that's right. >> i'll let you know thanks, peter and nick thank you both. >> thanks. becky, did you see, you saw, did you see how -- are you serious? at trong one th'she daily news. >> sorry are you serious.

our next guest has been on the frontlines of the pandemic

food industry. lidi apsbastianich food and tv empire her new special is called lidia celebrates america overcoming the odds before we talk about your special, i want to talk to you about what's happening on the front lines. we're awaiting the inflation numbers in just about an hour and a half's time and there's big concern on what is happening. nobody knows this better than those of you on the front lines who have seen wage inflation and food inflation what's happening what can you tell us >> well, let me tell you, americans are eating out you know, i guess being cooped up during the pandemic now they're really enjoying going out and eating and socializing getting off of the electronic mode and getting into real human mode restaurants are busy they're happening. on the other hand, you know,

everything else is going on and the expenses are going up for us whether it's labor, cost of food or maintenance and so on so, you know, as owners, as business people, we have to really balance and how because the cost, again, has to be passed down to somebody. of course, the customer is always at that end we have to be careful because we want the customers and we want to keep the energy going but the costs are going up >> another restauranteaur in new york and how people with money are trying to spend it right now. are they willing to pay for alcohol and how much expensive bottles of wine, what do you see right now >> absolutely. absolutely customers are really expanding and they're willing to pay for it not only taste wise. they're buying good supply and more wine and buying the truffles now it's truffle season they're getting into investing

in themselves. i guess, you know, being cooped up has brought some awareness to, okay, where are we going and what are we doing. they are willing to spend more but on the other hand, they're very conscious and very informed they know the value of food. they know what they should be paying and very conscious about the nutritional element in food that they are getting. the organic, the healthy food. but the restaurant that the chefs are conscious of where healthwise they are going. so, it's an ever more educated customer out there and i mean, i love it. any businessman that is really into what he does, you know, there's nothing better than an educated customer. drives the whole industry. >> how difficult is it to find staff for the restaurants at this point >> that is difficult we had people working for us 30 years before the pandemic and we had to let them go a lot of them. we had an allegiance of a lot of

workers and they came back but as a whole, it is difficult to find. now the market is loosening up and we're finding more and more people that are competent, that are good and that want this business >> let's talk about your pbs special. this sounds really special it's lidia celebrates america overcoming the odds where you go and meet with people who really have overcome incredible odds. how did you inspire it how were you inspired by this? what happened? >> becky, being a cookbook show on pbs for 22 years. for the past ten years i have been doing a one-hour special and i came to the united states i was 12 years old my story a little unique i came from a part of italy and we were caught behind the communists and escaped back into italy two years in a refugee camp and ultimately came here and were given this wonderful

opportunity to be americans. and so this, you know, the resilience that it takes, the strength, the positive attitude, taken the opportunity that i can sort of really, to my life, is i apply to this tour that i do through america every year a one-hour special on pbs and it's my way of saying, thank you, america my way of connecting with america. and this year we chose five different individuals that really face the odds with all their might and they really made it for example, just had some shows showing slides there from a potential restaurant this was from a young man who was at my restaurant two years later he had a car accident and became a p parapuliegic he wanted to open a restaurant ultimately six months ago he opened in harlem and got married with his wife and this

restaurant is very sort of, i mean for people with difficulties whether it's a wheelchair, blindness, he has a braille menu this young man, you know, handsome young man that was sort of sort of tied to a whooelchair after the accident and went on and did what he wanted to do a young man incarcerated at 17 years old for a sex crime that he didn't commit it took him ten years to actually prove that he didn't and he got his law defgree and now he's helping the young people that are caught and incarcerated without any cause or fault or whatever these are really stories -- >> incredibly inspirational. we could all use feel-good stories this morning thank you for your time, lidia

it's great to see you. >> it's thursday thursday on pbs. all right. >> take care okay coming up when we return, we're going to get you ready for today's big inflation data expected tsh t bgeo owheigst increase since the early '80s. we're back after this.ou, swee she's cute like her grandpa. voya doesn't just help me get to retirement they're with me all the way through it. come on, grandpa! later. got grandpa things to do. aw, grandpas are the best! well planned. well invested. well protected. voya. be confident to and through retirement. i've spent centuries evolving with the world. well planned. well invested. well protected. that's the nature of being the economy. observing investors choose assets to balance risk and reward. with one element securing portfolios, time after time. gold. agile and liquid.

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market snapping a three-game win streak this morning the futures pointing to a higher open ahead of key inflation data. we'll break down what is moving the markets. what's brewing at starbucks. workers at a buffalo store voting to unionize we'll break down the move and what it could mean for other stores, as well. and other restaurant chains. the fda expanding eligibility for the pfizer booster shot to 16 and 17 year olds we'll get the latest on the vaccine front and the spread of omicron with dr. patel the second hour of "squawk box" begins right now. good morning, welcome back to "squawk box."

let's show you the u.s. equity futures on this friday morning before we get that inflation data we will see where that ultimately lands but right about now we're looking up dow up about 80 points and nasdaq up about 82 points and the s&p 500 up 18 points and that may change depending on what the number turns out to be, joe. >> your mic's not on >> let's get over to dom chu looking at what's moving in the premarket. dom, good morning. >> i think my mic is on right now. i can hear myself right now. becky, andrew, joe, let's take a look at some of the big premarket movers right now start off with after-market movers and an impact we're talking broadcom shares are up roughly 7% after the computer chip company comes out with better than expected

results for both profits and revenues also gives a current forecast for the current quarter revenues that implies a more upbeat demand for its products out there servicing 5g wireless and data centers and that sort of thing and a stock buy back program. the broadcom shares are up 7% and a sentiment ripple effect. so, we'll watch those. and then an analyst downgrade today that is hitting a well-known name. peloton names down 2.5%. they lost about three quarters of their value over the course of the last year this is being helped in part by credit suisse analysts who cut their rating on the stock from an outperform to a neutral they also more than have their target price from 112 all the way down to 50 they cited things like changing consumer spending patterns like more reopening activities and headwinds that will come about because of in-person fitness returning. peloton shares weaker down 2.5%.

a check on the crypto currency side of things because we float right around that 50,000 mark for bitcoin prices up 3% right now just shy of 49,000 per coin. ether prices up 2% and then coinbase global microstrategy both unchanged in the premarket and we'll watch those on the heels of any kind of move, joe, with bitcoin prices i'll send things over to you >> so many things in hindsight when we see them, dom. $150 for a company that makes exercise bikes i mean, did that, did anyone ever think about that? you reopen and for me if i don't have someone telling me i have to do something, i'drather watch tv, you know it helps to go to the place. we should have known when planet fitness or lifetime, that was going to happen and look at that >> just like manhattan real

estate we knew that was going top happen, as well. >> do you have a screen or inflation beneficiaries. are you ready for this number? will you change what you do for the rest of the day based on what we see? >> yes, we do have a number of screeners we watch and specifically, you know, i got a lot of different screens on my desk right now we kind of put together some of those typical lists that we'll watch. the type of stocks and the type of assets we'll do based upon certain types of moves i know we'll have some market movement based upon the inflation numbers if they come out. there will be possibly later on today more of those types of stocks that we talk about. maybe materials oriented or maybe gold related stocks or consumer staples names or anybody else that might be affected by those types of inflation. we'll have all those things. >> thanks, dom this isn't what i was trying to show we don't need to go into that. that was the one i was trying to show

are you serious in red you haven't seen that. i wasn't do anything about the giants i picked up the wrong tabloid. it happens >> it does go rutgers markets and investors anticipating the highest inflation reading in nearly 40 years and the latest cnbc all america survey showing a shift towards republican control of congress amid the big issues facing the economy steve liesman is here. he's been running down all of this and that number is less than an hour and a half away, steve. >> yeah, and it's a political number and an economic and market number, becky but amid growing worries on the economy and covid. what we show president biden approval rating in both areas taking another hit while american preference for congressional control swinging sharply towards republicans. biden's republican approval rating stabilizing at a very low level of 41% about the same level as former president trump.

that is 50% who disapproved. but his disapproval rating dropped from 46% to 48% disapproving that measure is now under water for the first time for the president. this economic approval rating sinking more deeply under water with 37% approving compared to 56% who disapprove that is worse than the last survey the polling data even worse. republicans now support a historic 10-point advantage on congressional preference 44% want republicans to run congress and 34% prefer democrats. that's up from a two-point republican advantage in october. in the past 20 years, cnbc and nbc have never registered a double-digit gop advantage on congressional preference democrats lost ground in critical areas that helped put biden in office. residents in urban ring counties those who favored biden in 2020 now prefer republican control of congress

doubled from the 2020 vote you could see on the right side of your screen now, our republican and democratic pollsters tell us with an off-year election usually leading to losses for the incomeumbent party not whetr they will be badin november bu historically bad becky. >> especially with such a tight, a tight split right now. what is it, three seats? it was five before but there have been some changes in some of the races you're talking 2%. super tight on both of these >> it is already tight and a historical trend for the incumbent party losing and now when you dig into the details of this survey, it could not be better for the republicans or worse for the democrats. >> a match up against anything you've seen before in this survey >> no, i mean, look, president trump's numbers were bad, but they were sort of stable bad it was like, what do you want to call it.

like a law of physics. his number the worst scandal would come out and his numbers didn't change. they were low. and his economic numbers were kind of constant, but this one is sort of a straight down we'll see. i tend to look back at the greatest presidential turn around and i think it might have been president clinton in the '90s, but that still led to losses ensuing on november 11th. we still have some time before election day and if you listen to conventional wisdom, some of the people who know maybe hitting the peak of some of the issues when it comes to the supply chain, at least i don't know about inflation at this point but maybe things improve between now and next november. >> there's an interesting debate among our pollsters. one of them thinks what they need to do is get covid under control and everything else follows and getting inflation under control. the other one things it's more about the economy and getting inflation under control first. i wonder, though, with the

public having made up their mind about biden, can they change it? he came in with this promise of getting covid under control. i don't know that what's happened has been his fault, but certainly it's on his watch that we had we had not really gotten that much better in terms of covid and having another wave. we have a delta wave and now we've got perhaps omicron thing. i don't know if people change their mind wait a second, maybe he was really good about covid and good about the economy. what is interesting to me, becky, doing all this polling. the economy, the growth numbers are pretty good. the jobs numbers are pretty good but inflation just is like a, i don't want you to call it a cold shower on all of that data while inflation goes up, people are going to feel really lousy about the economy. maybe that will be turned around >> steve, thank you. >> pleasure.

okay coming up in just a moment, from vaccine mandates tim ryan is going to join us to talk about return to the office and what work will look like in 2022. before we head to a break. take a quick look at the markets. we're up across the board. 56 points higher on the nasdaq and s&p 500 up about 11 points right now. "squawk" returns in just a moment

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ceos going into another new year faced with challenges of getting workers back into the office the latest surge in covid cases and the rise of the omicron variant has several major companies putting work plans on hold joining us to talk about the future of work is tim ryan tim, this is something that most of us thought by this point would be cleared up and we'd kind of be back to normal. that hasn't been the case. what are you hearing from the ceos you talked to right now will they be bringing workers back in january? >> becky, good to see you. good morning

we thought the summertime would be back and then delta variant hit. it is causing companies to be, we are seeing numbers with people coming back in this fall and companies are moving forward. they're taking extraordinary measures to keep workers safe. but also we're seeing companies give choices, as well. recognizing that different things mean different things for different people i think agility is the name of the game but companies are becoming more comfortable with the ability to keep workers safe. i do see people coming back in january and we've already seen it for the last few months >> you have announced that lots of workers can actually work from anywhere they want at this point. i think you'll have probably about 40,000 workers who are working remotely is this the new normal that's here to stay or is this the situation that once covid kind of fades back and once maybe you have a less tight job market, that things kind of revert back to what we were used to before. >> becky, what we're seeing is ceos and leaders including us

are thinking differently and what really is important is we're seeing ceos realize it is less where people sit but their hearts and minds are they really excited about doing the work, in our case serving clients and other cases and the like what we did is back in september we gave every employee a choice and we said you tell us where you want to work because, frankly, we were guessing on what they needed and we were trying to meet their needs and it was, to be very frank, uncomfortable. we weren't sure what to do we made the decision to give the employees the choice what was remarkable is we gave them the choice. 22% said they would prefer to work remotely permanently, but 78% said they want to come in. and that's a little bit counterintuitive what we're hearing. manageable and you can give your employees what they want which builds trust and then makes them feel better about the work

environment, allows us to do better work with our clients i'm showing you one more data point. when we made that announcement that people could have their choice and, again, 78% said they want to come in and have been coming in the last several months we also saw our job applications for virtual work go up 35% and it's in the hottest areas like cyber, digital cloud and the like the fact that we're given choice and more and more talent coming to the firm and more and more thinking evolved in that way >> let's talk about that because google, you know, we have audio from a moeeting where they were saying not everybody is going to get a raise next year to keep up with inflation this is going to pea done on those workers performing at their best and maybe that is counter intuitive to what you are hearing right now when you have a tight labor market and inflation at the highest levels that we've seen in 40 years. is that what it is all about if youyou're catering to your

employees needs you can get away without doing massive pay increases to keep them >> what is very clear, mployee say they want a lot of things. financial rewards are hugely important and the work environment and where they want to work and the flexibility is also important i view this as not an or strategy it is about both organizations that have the most competitive day or the best for talent if they don't allow employees the flexibility on how they want to work, pay itself is not a huge factor. we are seeing that in the client base and here at the firm, as well we're seeing more and more organizations think differently around when you build trust around your employees, part of that trust is letting them work where they want to work and also when they are working remotely creating an environment for those in the environment at client sites where they can be included that is also a massive opportunity of differentiated in addition to just money, as well. >> tim, call me a cynic, but i keep coming back to this idea that employers and i'm not talk

about pwc here but broadly the ceos you talk to and i get the sense, okay, we'll let you guys do this right now because we really need the help and it's a really tight labor market, but, again, i prefer you here in the office and once the pendulum swings the other direction, the employers get the upper hand again. i have a feeling this is going to get rolled back >> i appreciate the cynicism what i would say is we're in a major experiment right now becky, here's what we knew to be true before the pandemic and i think it will be true after pandemic employees are feeling the best about themselves, they do their best work. again, that was in place before the pandemic and after the pandemic at the end of the day what ceos really want, they want employees who are happiest, healthiest and i think you'll see stick with flexibility that has been gained over the pandemic and some that

go back when the balance power shift. and it will come back and organization for their customers and i personally believe in the leading companies when you have happy, fulfilled employees, they do great work. we'll see how it plays out >> one of the huge questions for the markets right now are companies going to see their margins shrink because stock market has been doing fantastic, companies have been able to maintain their profit margins even in the face of all of this inflation whether it's coming from wages or input or shipping costs and things along those lines. what are companies going to do next year to try to contain costs. does it come on the salary front? does it come on the travel and entertainment front? how are the companies going to get through this and try to maintain their margins >> there's no doubt one of the big issues going to '22 the ability to pass on cost increases whether that be supply chain shipping and other types of labor costs and the like. the cost of price and ability to pass it on is on everybody's minds.

but that is starting amazing innovations. companies are becoming more automated and digital and simplifying their processes and that allows them to keep up. it used to be a good thing to do and now absolutely necessary what i expect in '22, especially if this pressure on passing price on, i expect the companies continue to drive massive innovation and automation and everything and we're seeing that across the corporate world right now as companies look to gain more productivity. there's a long way to go and that will allow companies, especially those that do it well that allows the ones that do it well to have good financial outcomes and buffer against the inflation that's out there >> hey, tim, i just want to ask about what i call proximity to power. how you think employees, especially employees that are notb is itted established, how y establish themselves >> we all work a certain way and the way we grew up worked for us at end the of the day, that is

still very important but there's other ways to do that virtually, as well. again, i don't do this as an all or nothing world 78% of the people will come to the office 72% of our people said they want to work remotely and now creating new ways to create proximity. we're spending more time with those groups and spending more time with those groups than in a different way than we did before i think proximity is important but it doesn't necessarily have to be physical proximity or virtual. in my view, those who have succeeded will be the ceos who are willing to pivot the way they did things to meet the needs of multiple groups of employers going forward. that part to me and coaching and mentoring is important might just not be done in a physical hallway the way we did it growing up and may be done virtual in a very different way. that ability is critical there leading organizations i think are different these days if i can add one quick thing, we

launched back in november a trust leadership institute the reason we launched that institute and we're taking 10,000 current and future leaders through that, including 50% women and diverse leaders is to think differently going forward in the world where trust is so important. one element has trust your employees. can they succeed and grow organizations and how do you do that in different ways going forward. it's critical that we think differently about how can we build trust because trust will build better performance. >> great to see you today. thank you. coming up, workers at a starbucks location in buffalo, new york, are notching a win thursday and forming the first union at a company operated starbucks store in the u.s will other stores now follow suit we'll discuss. and we're watching shares of costco the company's revenue jumped by 16.5% and beat analysts estimates. same-store sales rose by 15%

ecommerce rose by 14 costco executives say the company is weathering supply chain issues and inflationary pressures better than most other retailers thanks to earlier ordering "squawk box" coming right back time now for today's aflac trivia question. what was walt disney's first ate-ng ctofeurletharon movie the answer which cnbc "squawk box" continuesac blu believed in double coverage, but health insurance and aflac...is money. ♪ must be the money ♪ and i know how coach prime feels about money. -aflaaaac. -♪ aaahhhh ♪ now that is what this jacket needs. ♪ must be the money ♪ get help with the expenses health insurance doesn't cover. at aaflac.com

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welcome back to "squawk box"

this morning workers notching a win in starbucks in new york. starbucks won at a second location and the third store's results inconclusive >> that's right, andrew. a win for wurbers at that one starbucks. now star b and the results at a third store a are pending due to unresolved challenges. starbucks workers united the group admits a long road ahead and starbucks will come to the table to negotiate and agree to a contract which it does not have to do >> we're able to negotiate for a better contract here that makes our lives better and negotiate better benefit packages and wages and whatever it may be the company has the resources when our ceo is making $15

million a year to provide that across the company >> meanwhile, starbucks evp rossann williams said after a vote the results are preliminary and do not changed the company's shared purpose with their workers. certainly more important decisions to come as three more stores in buffalo and one in mesa, arizona, are all seeking to unionize in the weeks and months to follow now, as for the broader restaurant industry, this could be an important development. mkm part writing thursday if this creates a tailwind for other employees to follow suit, we believe starbucks could be among better able to absorb the higher costs andrew, back over to you >> what comes next for starbucks and this union when do the votes get certified and when do we find out what really happened there? >> sure, both sides have until december 16th to put in any challenges as mentioned the second store that union won

some votes were missing but the count did end yesterday and then that third store with seven challenges that could go for either side, if they do get results. so, they have until the 16th to put in those challenges. after that, they're certified. the two contested could go to a hearing. that could take a bit longer the location that did go in favor of the union, it does not look like starbucks will be challenging that one, andrew >> kate, i have to admit i'm confused by this what is it the union wants and the employees are saying they want that they're not getting right now. i always thought of starbucks of being a pretty decent place with decent benefits to go along with it >> becky, that's a great point they are among the most progressive in the restaurant industry and they long have been their wage is increasing in the next few months and by summer 2022, i believe most workers are going to be above $15 an hour. that is an important point this worker at this particular store and other stores said

conditions have worsened over the course of the pandemic, really short staffed management was not listening to them and management has been on the ground for several months listening to their concerns and working to fix it and say they're here and understand why these workers have been frustrated but the workers want to sit at the table with starbucks to better negotiate a contract. starbucks does not have to agree to a contract. they obviously caught the attention in a very big way of management >> speaks to some of the frustrations of the pandemic and things getting fastforwarded >> kate, if they don't agree to a contract, what happens then? >> i think they have about a year to figure that out, right and if they don't, then they did get the attention of management. you know, the union was formed, but they won't wind up necessarily getting what they wanted in the end, which is actually to agree to that contract >> how much are union dues >> i don't have that answer yet. >> kate, thank you we appreciate it

when we come back, dr. patel joins us to talk about the latest on the vaccine and the possibility of getting a fourth shot sooner rather than later. check out owlil prices righ now. wti up we'll talk to head of global commodities research "squawk box" will be right back. as active investors, to outdeliver with customized strategies, integrating esg best practices into our investment decisions. as asset managers and fiduciaries, to outserve, with our commitment to better esg outcomes. join the pursuit of outperformance at pgim. the investment management business of prudential.

welcome back to "squawk box. there you can see the three averages we follow you really need to segment you saw on the nasdaq yesterday versus what happened in the dow. certainly isn't just one market we're talking about. s&p up about ten today it is. dow jones at least now a big number coming out in less than an hour. dow up about 16 and then the nasdaq indicated up about 17 points let's talk a little bit about the cdc for a second because they're recommending booster shots for anyone 16 or older to broader the protection against the new omicron variant. joining us now dr. kavita patel and white house director and

cnbc medical contributor good morning to you. it appears to be rolling out boosters as fast as humanly possible the question i ask actually about the booster at this point is for those who are within this window right around six months but maybe even at five months. i know people who are saying, should i be getting the booster now? >> yeah, andrew, it's a very common question because i've been seeing some patients trying to sneak in at about four months even thinking that kind of sooner might be better i have been trying to discourage that just because we don't know what leads to the next shot. you already heard the pfizer ceo alluding to a third shot sooner than maybe even a third dose and the whole point of timing these vaccines is to kind of encourage optimal immunity unless you have, i have seen some doctors i haven't done it for my patients but some people who never mounted that initial response and older patients with

conditions some of those people have been receiving boosters sooner kind of on a case-by-case basis. in general we're sticking to the schedule so we can keep people immunized. >> we just did a segment this morning about return to work the idea that there was going to be even more return to office taking place in january. how does the new variant change or not change that dynamic from what you're starting to see in south africa and maybe some of the numbers in the uk and else where? >> i'm already talking with employers of different sizes in the united states rethinking their mask policy. most employers had if you are fully vaccinated have included a booster, but if you're fully vaccinated, you don't need to wear a mask. that's been a pretty common theme and i think that is also resinate with what i would expect with someone that is immunized that i'm safe. i've seen employers putting

masks back in and moving their larger gatherings back to zoom and taking that virtual posture for anything that involves for four or six people and third people are reconsidering and hoping the cdc will take action first and reconsidering the definition of fully immunized to include that booster dose and provide that protection in the hopes that masks and other mitigation procedures could come off soon >> does that change the dynamic for you. if you were to require workers in a conference room for everybody to be boosted, would that change how you feel about the mask component or no >> i do. i think that especially now lookingt a not just the pfizer data four studies total and not just the omicron but the data prior to omicron with the effectiveness of the third dose in all the settings. i think it makes a critical difference i have been telling people, you don't have to wait for the cdc you can make the decisions on

your own some resistance to that third dose people feel like it's, quote/unquote not essential including employers. looking to the cdc to have enough data to change that definition possibly as early as january or february. >> that is what i was going to ask you. by the time the cdc changes it, it is almost inevitable they'll change it. when and are they doing it too late >> yeah, usually what we see with the cdc is we feel it is too late which is why i have been trying and many of us in public health have been trying to take these actions voluntarily. you're seeing some cities, new york city and others who are putting out this guidance that you should include boosters in what we should consider full immunization especially for high-risk settings, including healthcare settings. however, nobody has gone that extra step in requiring it i think that will change especially for nursing homes this seems like a no brainer, andrew, given the infections

we've seen including schools this feels like it will happen before the cdc takes action. but interestingly enough that 16 to 17-year-old booster recommendation, that wasn't something that any of us expected and that indicates the sense of urgency for people to understand boosters are necessary. in the 16 to 17-year-old range they're still optional the cdc used the word may versus shood for 18 and above and i expect that will change, as well >> dr. patel, they have been behind the curve on some of this stuff. it does seem like the measure yesterday with 16 and 17 year olds it's kind of stepping up in that urgency because not only did the fda pass it surprising people, but the cdc passed it without checking with the advisory board same thing with the immune otherapy being allowed for patients if you're compromised

it just seems like there is some urgency that is picking up and maybe they heard the complaints and are following through. >> yeah, i think the fda and cdc has made it clear that they'll do everything to fast track so to speak any omicron specific vaccine development and also trying to, we're all waiting with bated breath on the pfizer antiviral oral pill because that just seems to hold strong promise for both vaccinated and possibly, for vaccinated and possibly vaccinated individuals. so, we're hearing about so many things that the agencies are trying to do and they are. i think that it's just always when we see news developing, we want things to happen quickly and they have a process that they follow, not necessarily at the speed we would like, but they're committing to doing it as quickly as possible i hope we see some of those developments in january, as well the oral antivirals and as you mentioned, becky, that preexposure of one injection

in intromuscular and people on inhibitors for ms and lupus and cancer big game changers just in time for the holidays, hopefully. >> doctor, finally wanted to just ask you practically yourself given this new variant and its entry into the united states, have you changed, i know you're boosted. i'm boosted and i keep thinking to myself. i've been trying, i sort of returned to my life in a way in a great way, actually. but i now wonder is that, you know, am i doing it right? am i making a mistake? >> no, you're not. if it makes anybody. i'm very transparent about my own behavior and taking my first vacation with my vaccinated children over the holidays

feel very comfortable with air travel domestic and i think we have to have faith in the vaccines the data that pfizer released against the activity for omicron for people with a booster is sufficient for me to feel comfortable wear a high-quality mask and make sure i'm not in a crazy environment with people who are actively coughing and not wearing masks around me. i think i can make those decisions and safely have holiday plans and holiday parties even, gatherings and do it safely. i'm going to be using, as we talked about, testing where possible if i decide to go into an environment haven't done anything risky yet where i implemented rapid or pcr testing or quarantine myself but travel will be my first test >> all right, dr. kavita patel, thank you for joining us, as always have a great weekend >> you, too. omicron and global fuel demand and jeff curry when he joins us after the break check out the shares of moderna falling after it reported some

interim early stage data for its mrna flu vaccine the numbers did show that the vaccine successfully boosted against all flu strains 29 days after vaccination. the stock is down. the phase two study is fully enrolled in preparation for a phase three study is under way we're hoping to learn more from the company about, you know, whether there is something that wasn't quite as good as had been hoped because stock's down o owcould be down. whkns. conference call at 8:00 a.m. "squawk box" coming right back

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oil. checking on that wti up 81 cents. 1% at wti up 81. continuing to bounce from the lows joning us now is the head of the global commodities research at goldman sachs. you're looking beyond, jeff, i think the only kmicron demand we to what in you view is probably more lasting and permanent, and that's supply. sometimes, you know, when demand concerns hit the markets, that just exacerbates the supply concerns because then resources don't go toward increasing the su supply. >> absolutely. you see it not only in oil, but

pretty much across the commodity complex. given the combination of pour returns over the course of the last several years plus esg, investors were worried with oil and commodities to begin with. then you add this volatility we saw this type of volatility around the delta variant back in july and then once again right around thanksgiving with the omicron variant. a lot of investors said we had enough with this at a time it needs capital more than ever so what we're seeing is a lack of capital to be able to grow the supply base, particularly when we look out over next year when in all likelihood the oh peks capacity will be exhausted, and this market starts to look pretty tight in 2022, which creates a lot more upside risk, particularly where the foreign prices and spotlight prices are today. >> you look at how -- well, how the odds are stacked is what i'm

trying to get to you look how the odds are stacked with omicron, you know we're hoping for the best, that they're mild cases then we've also got these therapeutics we were just talking about there. you may get a fourth shot. you may -- the omicron might not be like delta in terms of just spreading everywhere, so that could go away, and you're still left with this supply issue, and you have the therapeutics within the next six months to a year. are you looking at supply and demand for oil as well >> you look at positioning and flat price that's directional. it had already come off tremendously where all the positioning was was in, you nknow, vol position and the equity market.

when ochl kron hit and brought down the prices down to around f $5 a barrel, you start to get into that strike zone. the dealers had to sell and sell and sell to cover their positions. that's what we call a negative gamma effect that brought you all the way down and then immediately as soon as things started to stabilize and as you pointed out people realize, omicron is not nearly as bad as we thought, you start to move back up to the strikes, and that bind just whipsawed you back up to 75. we still have more upside risk associated with the negative gamma effect, but i think one thing that's apparent going a year in, just given the volatility, is that risk is going to be slow to come back into this space. we don't think until after the first of the year that you start to get a lot of risk, ready to put positions on they get a clean slate after january 1st at that point is when we think you get the real upside back toward $90 a barrel.

>> so could you see actual -- i'm not talking about speculators or, you know, the people that provide the li liquidity for this, but what about spot could you see spot, even if risk doesn't want to return because of that group, couldn't you see demand outstripping supply when this reopens full force and it won't matter whether people trust it and want to speculate it's going to go up based on people just using it. >> that is a great point that makes commodities and physical assets rad lick different than financial assets financial assets don't have any forcing mechanism to get people to buy it. take energy shares that's why they sit there and languish at the low levels in contrast, oil and commodities have a cap active con suchler and a cap active producer who can do nothing about their position, and you're absolutely right. as we go into the holiday time period, that's when we would expect the physical demand to push us much higher. that said, and we think you're

absolutely right, and that's going to be the key driver as we go in toward the christmas but to create that follow-through, the position does help. they were extremely light as of last week because we just saw the liquidations that at one point was around 110 million barrels, which that's a lot of oil being liquidated by the spec community. you get is that back into this market combined with the tight physical backdrop that you're referring to, that's what creates the real upside going into year end. >> can you broaden it to metals. we have inflation coming out what about commodities in general? >> it's the same story across the complex. i pointed out it predates covid. the seeds of it were sowed all the way back to '08/'09. we call it the revenge of the

old economy. put bluntly, the old sectors going back across the old economy for a decade saw capital redirected into the new economy, which is where we grew a lot of the supply we choked off that supply base covid surge and demand impacted it all markets with the exception of corn is at a deficit. i have never seen that kind of market where everything is at a deficit. inventories and metals are approaching deficit levels then you look at the upside going into the holiday months before you get into the chinese new year it doesn't matter if it's metals, oil, even agriculture, these markets are very tight, inventories low, supply is const constrained, demand is relatively strong. it creates a lot of upside risk. copper is trading around $9,500

right now. big upside in metals. >> that's deep input prices, and then you've got labor. >> yep. >> this is like, i don't know, it's been a long time. we'll see how it plays out jeff curry, thank you. it's been great. >> thanks for having me. >> i'll have to think about everything you said. coming up in just a moment, senator bill cassidy's going to join us to discuss vaccine mandates and so much more. and later, investors are going to want to pay attention to this. the cpi data due out this morning at 8:30, the futures ahead of those numbers, they're higher the numbers and instant market reaction, it's all coming up as "squawk box" rolls on.

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we are now 30 minutes away from what's become the hottest economic number for investors. that is, inflation it's expected to hit its highest level in more than 40 years. we're all over this story and we're going to bring you instant reaction and we'll tell you what the number could mean and the trajectory futures are calm, the s&p tracking for its best week since

february so much to get to in the next 60 minutes. the final hour of "squawk box" begins right now ♪ good morning and welcome to "squawk box" here on cnbc. live from the nasdaq market in times square, i'm joe kirnen along with becky quick and andrew ross sorkin the stories we used to do over and however hour after hour, we're not going to you're in red, i'm in ready. i didn't see it. that was something number one purdue, you don't see buzzer beaters like that that often from half court. >> from a team that's not that good granted, purdue was only number one for a week.

>> i've been betting on purdue they've been kcovering -- >> that explains a lot. >> we're not allowed to bet on seton hall or rutgers or something like that. i saved the money so i could enjoy this with you and your husband. was he crying? i didn't see him. >> he wasn't joking. he teared up >> he's such a softy. >> this has never happened for rutgers before. >> i was so nervous. >> we were watching it for fun didn't think it would take off, but the game kept getting better and better. >> can't use this to invest. we have to move on. u.s. equity futures -- this is you, not me. >> that was all you. >> dow jones is up 36 points early on the nasdaq is up 9 and change, the s&p up 8 people are talking about this everywhere my wife had a gallery thing last

night and everybody was talking about the rutgers shot it was crazy ron harper jr., the legend's son. treasury yields as you see right now are indicated -- not indicated like the averages. that's the way they are. 1.5% on the ten-year in addition to that big game, becky, here are some of the others you go. >> let me tell you about some of the other headlines that people are going to be talking about today. first up, workers at a starbucks cafe in new york are voting to unionize this was a closely watched race because it could encourage other restaurant workers to take action it will be starbucks first union location out of 8,000 roughly owned stores in the united st states workers at a second buffalo store have decided not to join the union. in washington, they're

clearing a hurdle. they would increase the borrowing limit with a simple majority vote. that's expected to take place next week. check out shares of oracle, soaring after they posted their second quarter earnings above expectations right now the stock is up by about 112.3%. in a conversation, larry elders said its cloud never, ever goes down earlier amazon's web services suffered major outages that hit sites across the world andrew >> take a look at some of the premarket movers. >> all right if you take a look at what's happening with shares of moderna right now, this has become very much a momentum story. to the upside earlier over the past 12 months and to the downside, you see the shares from moderna, down 8% near the

premarket, now 12% it's been pretty, pretty dramatic to the downside this is after moderna comes out with generally more positive results from one of its more early stage flu vaccines some questions from investors with regard to the comparability of the other vaccines already on the market, some competitors out there, perhaps novavax as well as others. moderna is down about 10% right now. you see a big movie over the course of the last week. with the moves in the premarket, if they hold in the opening bell, it could be 50% over the course of the past year. also watching what's happening in other parts of the market, namely with regard to southwest airlines helped lower today to a tune of 4% after a down day yesterday analysts continue to kind of downgrade or rerate their stock. this morning it's goldman sachs analysts who have now cut this particular move to a sell rating

and a $36 price target they think that the inflationary pressures around southwest airlines cost structure could be a headwinds as well. they join others like ubs over the past couple of days who have taken their rating down against southwest. keep an eye on those particular shares. apple, we're talking about them again because morgan stanley's katy huberly has written another note talking about the augmented reality, virtual reality, ambitions the company may have and why investorers should start to price this into the stock. apple shares, $174.70. everybody is watching that $183-ish mark. and a look at the most popular tick on our website at cnbc.com over the last day, yesterday at least, lucid was up about up half a percent

tesla, gamestop, costco, lululemon. those names among the top ten. the rest of them are on my twitter feed at @thedomino by the way, no one's really talking about the fact that seton hall had a great win against texas as well. >> i didn't even see that. i can't bet on them, but i knew they were playing texas. yeah, seton hall and rutgers, they could beat -- obviously anyone can beat anyone on any given night, that's why it's so d cool rutgers football can win on any given night. but number one, purdue, done you don't see half-court buzzer beaters. >> nothing to take away from rutgers, that was an amazing,

amazing game but seton hall is the top favorite texas was six or seven in the country when they beat them last night. they were favorites at home against them good for new jersey basketball. >> totally we move on, which makes me want to continue. it just does. >> i'm going to stop talking now. >> when i hear about it, i think -- maybe that's what's wrong with mandates, don't know. if you tell something, i don't want to do it anyway. the senate passed a bill 52-48. though it's far from clear that the house is going to take it up or approve the measure and the president would veto it probably the administration has aimed to have all private companies with 100 or more workers mandate vaccines or institute regular coronavirus testing. joining us now is senator bill cassidy, a resolution co-sponsor he's also a retired medical doctor good morning, doctor

i'll tell you what occurs to me about the whole debate and why it's so difficult and why both sides feel so strongly once we figure out that not all people respond to the vaccines, immunocompromised people, you can't vaccinate them into health their immune systems can't do it until we get a therapeutic, it doesn't matter you can't say, i've got the vaccine, it's my business. what they do is their business you can't say that anymore because people that aren't vaccinated, it could make its way to someone who did what they're supposed to do we're properly vaccinated, and so they still get it it's incumbent for everyone to do it for those who can't. someone could die based on not being able to respond to the vaccine, right so we need to get everyone done. we've done it before why not do it now, mandate

>> i'm a big believer in vaccination. i've highly recommended vaccination from the get-go, but there's always a tension between personal liberty and public health to what degree does the federal government institute a measure that takes away personal liberty. now, state governments do it local governments, school boards, we have a long history of that. the federal government, this will be brand-new, not because it's been discussed in college or has some kind of national discussion about it but because the president does it by executive order. reaching into private businesses by the way, kind of not cognizant of the impact, one example. i had an ambulance company call me the ambulance company is publicly traded, does medicare, medicaid he's competing, if you will, for employees against a municipal ambulance service. the municipal ambulance service

is under the mandate this is the sort of thing you've got to think about and this executive order does not think about it. >> until we get therapeutics, how would you -- how would you try to help people that are called pandemic prisoners? something that also threw us for a loop, doctor, fully vaccinated people can still kind of be carriers even if you've had a booster, and, therefore, whenever you get to the weakest link, someone's life is at risk, so it seems like we're not where we hoped we would be by this time because we don't have the therapeutics. >> joe, you just kind of pointed out the flaw in your initial argument the vaccine does not necessarily prevent any infection whatsoever it keeps you from serious illness. it keeps you from hospitalization. that is a good thing but the idea that if we vaccinate everybody, there would be no inferksz, so, therefore,

we are all hunky dory is not true now, by the way, one thing that's also not been emphasized enough at least by cdc is that people being infected previously gives a level of immunity. so there's different things that give immunity. there's different risks even if you have some basis of immunity, but going back to my point, there's always a tension between personal liberty and public health the vaccine mandate pushes the area where it's never been done before, mandating on a federal level the vaccine, and except for any discussion except by the president and his advisers i think it should be more fulsome than that. >> senator, two questions. while i recognize clearly the vaccine unto itself may allow for breakthrough infections, clearly the science suggests

that statistically your chances of getting infected are so materially lower than if you're unvaccinated, it's not even a close contest. so, yes, breakthroughs are possible, but if you're trying to reduce the possibility, you do it by a material amount, in fact, something on the order of 90% for those who are boosted. so i think that's an important point in the sort of context of all this the second thing, though, when it comes to personal liberty is who said that you have the liberty to give me covid >> you know, you make a really good point, but can i point this out? we would save a lot of lives if everybody drove 35 miles an hour if the federal government had a mandate you're going to drive 35 miles an hour, and if you go above it, you're totally busted. and we're going to put something on your car that make you only

go 35 miles an hour. >> senator, we do have speed limits, 65-mile-per-hour, 55-mile-per-hour, 35-mile-per-hour speed limits. i don't understand what you're laying out. >> no. if we had 35-mile-per-hour limits, people would at some point stop debating and they're doing 75 or 80 you're going to have more accidents with personal liberty. when it comes to immunization, we have local, private businesses putting out mandates for the hospital employees to be vaccinated, for the school employees to be vaccinated we've always done that on a local and state level. on a business level, we've never had the federal government reach in to the private business and dictate that kind of, okay, in between personal liberty and public health, the federal government weighs in that's my concern. >> it's weird, senator both sides use my body, my choice, when they want to use

it, and neither side listens to the other side when they list the same argument. have you ever thought about that that's weird >> i'm never going to understand that by the way, i'm a big believer in vaccinations. i always had to respect the autonomy of the individual if the individual did not want to be vaccinated, i could not vaccinate her. that's actually the ethic i kind of embrace she is ultimately the decision-maker as to whether she or her child or he gets vaccinated, and i think we have to be very careful before we step into that space that's kind of a maxim of government -- of medicine. >> it's really staggering how strongly both sides feel about the issue, doctor, like so many things, like so many things, and it's so hard to find middle ground we appreciate your time this morning. it obviously helps that you're

retired. i don't know you used to be helping people, healing people, and then you go do this. are you sure that was the right move, senator? >> it's addressing health care by other means but one's a meta and one's a migrant. >> you're right. thank you for doing this we appreciate it thanks. >> thank you. when we come back, the number of the morning, november cpi. plus, what will the omicron covid variant mean for the return to work and the commercial viability to this cou country's biggest business districts. we're going to speak with the ceo of related companies stay tuned you're watching "squawk box," and this is cnbc

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talk mega caps and a nearly $3 trillion value for apple don't go anywhere. "squawk box" will come bacwik th that and the big inflation number

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and the plan to bring employees back to the office less than 30% of office workers were back at their desks and fewer than half were expected to return by january. joining us to talk about what this all means for high-traffic kmer commercial areas in new york and beyond jeff blau is ceo and will talk about a new sustainability project in the city. we want to talk about what we're seeing in the office space occupancy component in all of this is it getting better, jeff >> good morning, andrew. it absolutely is getting better. i note as you walk through the city and go up and down the streets to get places, traffic is as bad as it's ever been in new york, which in a strange way is a great sign. our office occupancy, you

mentioned 30%. we're actually close to 45%. companies are getting back to work and i think that's a positive move. what we're hearing from our tenants is january is going to be the big day everybody is encouraging their employees back i think companies have finally realized that innovation, productivity, brainstorming, and all that really has to happen in person in the office, and i think we'll see right after the new year's a big push back to the new office. >> jeff, how are people thing about this variant you know, we had dr. patel on earlier. she was saying in certain circles she thinks some businesses should revert to having masks in the office for large sort of congregate settings, and there's a separate conversation about requiring boosters or not. what are you hearing, and what are you hearing from your clients? >> here at related, we've had mandatory mandates for several

months now, and we're not masked in the office. i think if you look at cities across the country who have taken the approach of going with vax mandates as oppose goingd back to masks, i think that's been a much more successful recipe california, as you know, is still mandatory masks everywhere, and if you look at the percentage of people back in the office, back in restaurants, back in gyms, it's nowhere close to new york. and so i think the right way to do this is to get everybody vaccinated and get back to the office, and that's what we're seeing here. >> real quick, and then i want to get to this new sustainability project venture that you're working on what are you seeing in europe right now, and are there lessons there that maybe apply here? >> i just got back from london, and it's -- london is much more open than even new york. there's really -- they, too, i think, are really relying on vax

mandate. you don't really see much masking happening there at all you know, both london and new york to me feel very vibrant in terms of going out restaurants and traffic and activity and christmas parties are all back, and i think that's, you know, a very positive sign for the cities and the economic recovery that i expect will happen in 2022. >> and, jeff, we're going to bring miguel in here help set this up in terms of what the new joint venture and initiative is. >> right as you know, andrew, we own our buildings long term and have really focused on sustainability for years. what's interesting is new york city passed a law that was meant to eliminate carbon emissions from our buildings that we ultimately realized -- no building owner could really comply with because of the grid here in new york state and new york city, which is really driven by fossil fuels we realize the only way to clean that up was to build renewables

here in upstate new york and brink that renewable energy into new york city, and we did that we proposed a project to new york state, and last month we won what will be the largest renewable energy project ever built in the united states, an $11 billion project. we're partners with a company called invenergy based in chicago, and the project is called clean path. it will donate 60% of clean energy to new york city, all renewable, solar and wind power in new york state. based upon that -- go ahead. >> no, no. i was going to jump in and try to bring miguel in to explain how he's going to do that. >> right so i was going to say, based on the success of that, we really -- in speaking to our government partners across the country, we realize that this problem urban load centers and dirty grids is something that's consistent throughout the country, and we realized we had a business opportunity to help clean that up, and we reached out we did a search and hired who i

think is the absolute best in the renewable energy sparks miguel prado, who's the ceo and he can tell you how he's going to do that. >> miguel, how does this work, and how do you do wind, energy, and solar especially in a place like new york city where i imagine a lot of that is going to have to take place outside of the city. >> yeah. thank you for having me. it's a blessing to be here with you. energyre has a special focus on the urban centers and other communities that don't have access to renewable energy we're looking at especially building emissions in the end what we are doing is very simple. we are connecting the generation with load centers, which is what

new york is doing. it's based on exists innovation models based on centralized fossil and coal plans. but now that we're moving and it's the biden administration's obligation to move, it's more dispersed. this will require connecting the company with the cities, and what we'll need do is build a lot of transmission. >> how much energy is lost along the line of transmission, meaning how important is the distance component of all this >> yeah. i mean the distance is important, but at the same time, it's how we configure the transmission lines i mean in this case, for ex example, what we're going to use

is high voltage, and then we will use converters through the stations in order to transform that energy into ultimate current, which is what will go into the cities. so effectively, we'll have solutions to reduce those losses there's always -- i mean the closer we can be to the cities, the better, but it's very difficult, i mean, to build solar or wind. >> it's an interesting and important probably, and i know we're going to be watching your progress throughout. jeff and miguel, i want to thank you this morning. >> thank you, andrew. >> thank you so much. >> thanks, guys. joe? inflation number. >> yeah. look what time it is we've got 30 seconds just 30 seconds away from brand-new cpi inflation data what we know of it will be brand-new, but it's been happening, so it's actually not

brand-new. it's been happening for the last month. rick santelli and steve liesman, there they are, the dynamic duo. who's beavis one of you guys want to volunteer for beavis you know what the other guy has to be. anyway, the numbers are coming in you guys can argue about that. viewers can't decide what is the number all right. it's now 8:30 on the dot the consumer price up 0.8 on headlines. 0.9 in the rearview mirror was the highest. if you strip out the all-important food and energy, it's up half a percent to 1.5, and that's moderating from some of the recent higher levels. year over year, up 6.8 up 6.8

and this, of course, is a new record that is the highest level since june of 1982 1982 if we look at x, food and energy year over year, it's up 4.9, and that also is a highwater mark. that is the highest level since june of 1991 we'll call it 30 years these numbers were expected. smavgts in the year-over-year numbers, the analysts and sources i talked to nailed it. they had the predictions right on if you look at what's going on with the interest rate complex, it really isn't moving on it all that much on any of them we were testing the 70/70. it dipped a bit. now it's right there we're hovering right around and below 150. many are scratching their heads why. many believe these issues will mod rate but as your last guest t topic was energy

aisle continue to hang my hat on some of these longer-term predictions due to policy mistakes and the hand-off from fossil renewable it's going to definitely continue to put upward pressure on these many think we'll see 125 to 150 in the years ahead on crude oil, and i'm not sure i can disagree with that. joe, back to you. >> we just had jeff currie on from goldman he said not just oil under investment. >> not just fossil fuels copper. >> and commodities in general. yeah, yeah, yeah that's a great thing, right? because as we had everybody switch over the batteries, it's like "i dream of jeannie," and everybody wrinkles their nose. where are we going to get the rare minerals? from china locations are in the u.s no one's going to let you put a

shovel there it almost defies logic our hearts are in the right place. we're thinking correctly, but how we move along andism plea meant it is completely fraught with errors. >> i think "i dream of jeannie" blinked. it was samantha that did the nose, just to get things exactly right. "bewitched." steve, have you got any comments >> on this energy thing, i think that it's a little premature to say. i think what you're talking about is going to affect oil and gas down the road. i think right now you still have an industry struggling to get back you look at the idea that opec is still coming in below where it was prepandemic is not an issue of u.s. investment we've come back up about -- i want to say about 800,000 barrels, i think, from the low i look at the count.

it's going up every week i think you're rhyme time is going to be an issue with the hand-off. i don't think it's what's going on with the energy prices. that's my take on it let me give you an analysis of cpi i think everything is up a lot that's just the way to say it. i've got food. food at home, food away from home energy, 3.5% now one of the new things that's happening here is that shelter is up 0.4 on the month 3.4 every year over year that's been on the rise. but when i look at the market, you know, the fixed income complex, it looks like the two-year is actually off now it had sort of positioned itself for an even hotter number, up 72 basis points now it's at 68 basis points or 69, call it. i see the ten-year selling off the market was well positioned for this and the impression i get --

listen to this -- from the market's reaction to this number is it feels like the fed is positioned for this. remember what we're going to get. we're going to get a faster taper, probably double next week, and an outlook for next week that will put rate hikes into 2022. the market is not screaming for more and the market does not at the moment seem upset by what it's about to get. so what you have is you have this adjustment period before the number, and so so far at the moment -- and i even see, by the way, the stock futures rising. at the moment it seems like everybody is kind of copacetic with where everybody is at and it's hot across the board, and i think there's more to come. >> with where we are is sufficient mike santoli, let me get you in here you look at -- i'm not saying the starbucks thing is going to be the end all or be all for labor rights, but we definitely have wage pressure it seems like we definitely have common oddity pressure

these things are not good for stocks we've paid it forward to such an extenlts there's a pullback. don't you think it's inevitable? i don't know maybe not. >> profit margins have actually probably been a little more resilient than you might have expected given what's going on on the wage/cost side. also i think we're still in this window of time before anybody is going to assertively say this is the new trend, or the new trend is decisively worse on the inflation front than we thought simply because we're still going up against on an annual basis, very weak numbers from late last year into the early part of this year it's not until march you go up against the hot inflation numbers. so i think everybody can kind of reserve fiej judgment on that. also, i think in a grinding way, the multiples in the market have been coming down you know, not too much, but the

earnings growth has been too strong in terms of when it becomes a more critical issue, obviously if all of those core elements of inflation, the drives like rent, like wages -- they're not really measured but as they get embedded in consumer prices, if they don't have the strong gdp growth go with it, it's more of a zero sum game that's going up the labor titan is what it is. we can't find workers. >> yeah. >> we may have retired transitory, but it's still -- i think people still believe it. they think that the supply chain loosens up eventually as maybe omicron is not that bad. but that means that all the stuff we just talked about with commodities, that's not

transitory because it's been under investmenting rick how is that transitory it probably isn't. >> we need to learn some lessons from the options as of late. they're taking a much more wait-and-see approach to getting superinvolved in the treasury complex. you know what? if i was a trader and every time i sold, i saw it back under 2% or 10%, i thought inflation was going to be hotter, what's going to happen is when it goes, it's going to go big in terms of interest rates we shouldn't lull yourself in this confidence that, wow, we obviously must think rates come down we have the central bank that's the hulk in man liberating rates. because when they turn, they're going to turn wild to the upside. >> i heard someone else wanted to get in. >> yeah, real quick.

i was going to say, you are 100% historically right i was looking at this. i don't have the charts ready. maybe next week. but when inflation increases, profit margins fall, except for right now. you have rising profit margins, joe, amid rising inflation you could be right that it may be to come two things they have room to come down to become more average, which could affect the multiple. but even if they come down, companies could be on an economic basis extraordinarily profitable and the other thing is so far companies have managed to figure it out it may be that the wage gains are yet to come and show up as a bottom line and reduce profitability, but it's been an amazing thing to watch that companies become quite so profitable they look like they've raised prices more and kept their profitability and even increased it. >> okay. great. thanks to everyone involved with this

i was looking up for rick. do you think loyola -- take loyola tonight, rick they're good, right? i couldn't take rutgers last night. >> i tell you, joe, i say, why not. there've been some wildup sets that people have been crying about. you know what we're talking about. it's been pretty exciting, hasn't it? >> yeah. and louisville i'm thinking for tonight too. all right. thanks, santoli, santelli -- that's confusing -- and liesman, which is easy. never mind on the whole beavis conversation forget about it. i'm having becky thank those on twitter for correcting me. >> one was the headbutt, the over was a dink a dink a dk.in stay tuned "squawk box" will be back after a quick break.

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. welcome back to "squawk box," everybody. take a look at futures the number came in at 0.7% cpi on the month over month. but 6.8% increase year over

year, and that's the most we've seen in about 40 years the s&p futures up by 30 the nasdaq up by 132 you did see the markets pick up. in terms of treasuries if you've been watching the yields there, you'll also see the ten-year is yielding 1.503%. the two-year at 0.699% when we come back, hedge fund manager dan niles is going to talk about the new inflation data whajd it means for investors in terms of the big tech stocks. we're talking the trillion-dollar club here, apple, microsoft, amazon, and alphabet stay tuned quk x"ilbeacrit "sawbo wl bk gh after this feel stuck with your finances?

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york stock exchange. our good friend jim cramer joins us now your reaction and what is jay powell thinking. >> '80, '82, the fed was coming out. we god rid of the word "transitory. i think jay said this. i think a lot of it is covid-related. i think he's going to get it right again. i think a lot of people on wall street are going to bet against jay. that's been a tremendous threat. jay wins again. >> jay wins again. >> yeah. >> that means it works for jay and i works for the market. >> exact ly exactly. i want your bulletin to reflect that, your morning bull tent.

>> the other question -- >> it's great. >> thank you. >> you're welcome. >> let me ask you this we've been talking all morning about starbucks and this vote. how important do you think it is, and how important do you think it is to the company and the stock? >> well, i've reached out to one of theresentatives there who's unhappy. one thing to recognize is the unions are thinking if we can get starbucks, we can get anybody because starbucks offers the best benefits. in that sense you can vote with your feet. it's easy to get a job with tired pay. but they have to work on the work rules it's too easy for people to say, my boss wants me to work 9:00 to 5:30, i'm going to go to to the

other place. i'm saying starbucks is net/net the winner here. you would think they would get more than one out of 19 >> i've been talking all morning how we've been talking about this in a breathless way there's something symbolic is there something going on in the country? maybe there is, and maybe it's not related to this because this seems to be a particular situation that doesn't seem to be a truly grassroots effort even, but seems to be the union trying to use this to push in elsewhere. >> exactly can you imagine? you can organize yum! mcdonald's, burger king. they went up to the best if they can win there, they can win anywhere, but they didn't it was a very small fraction. look, there are issues with starbucks, but, remember, they give you college, they give you mental, which is pretty incredible if you have psychological issues

they give you everything it's like going after costco costco had an amazing quarter. i thought schultz went there the thing is people like starbucks. they like to work there. some say i don't like the hourse working there, but there are hard hours i had a friend who worked at the albertson's starbucks, and she kept ending up with the 5:00 a.m. shift >> hey, guys, somebody posited earlier that starbucks has something like company-owned mcdonald's is smaller. it's a lot harder to go after the franchisees. if you want to do it you have to go after company-owned stores, where you can make a dig if you're the union. >> if i were the union, i would be saying, let's start somebody

else the fact is you can get a job anywhere right now rather than unionize, say i'm going to go to wendy's across the street, and make more money. right now, it's -- imagine a worker being able to negotiate there's negotiation power by people who typically -- i mean, karen cramer worked at a mcdonald's she still has the burn from the fryer, and she would say if i'm going to work fryers, i'm going to get x. >> i said to see the deal they ultimately get and what kind of dues they ultimately pay for what they get. >> the checkoff. i've been involved with two unions the unions always made off better than the workers. they sold us out twice

>> jim, congratulations, by the way, on the effort you had yesterday, your first big meeting of the minds of the cnbc investing club everybody who missed that, if you did, you can find it online, but you can also jump in now and point your phone at the screen to get involved with the investing club. >> becky >> thanks, andrew. let's get you a recap. the november consumer prices coming in hot, the highest left of 39 years. the question is, how will the fed react? and what will its next moves mean joining us is dan niles. he is founder and senior portfolio manager at the sartori fund what do you think after these

numbers? >> i think this removing any ability of the fed to take it slow i've been saying for a while there will be multiple rate heights in the upcoming year independence a normal regime which, by the way, is in the bottom of 10%. you have weekly jobless claims, 6.8% you go through the tailor rule you would be talking about how many hikes, so the fed is behind the curve right now. >> what does it mean specifically for some of the

biggest tech stocks? we have seen some of them have wavered. some of the enthusiasm has leaked out what do you think? the biggest tech stocks thankfully, a loss of very expensive. i'm talking about google, facebook, amazon, which we all own. the problem is the rest of tech, where you have a lot of companies that adopt make any earnings and the multiples you can't even talk about you pick your favorite name in that category, those stocks will get absolutely destroyed in an environment where the fed has to

raise rates in a much more aggressive fashion when inflation is over 3%, it -- right now you're setting a record-high valuation. so you put those things together, the big tech stocks will struggle, and we believe the s&p will be down next year, let's be clear about that, but the smaller names, the once that don't make money, they'll be absolutely killed. >> i think one of the my biggest surprises was your favorite position for 2022 is cash. it's kind of shocking when you think about inflation running like that, because cash is getting worth less every day in a situation like that, statistics cash because you think the market will drop >> exactly >> i mean, think about it this way, the market cap divided by the gdp is sitting at 1.9 times.

the peak of the tech bubble, that ratio was 1.4 the average is 0.8 in a high inflation environment, usually market multiples are below average. so if you're thinking next year -- i firmly believe we see a 20% correction next year as the multiples get back into line, and it could be much greater depending on what happens with profit margins. you have 3 million more job openings than you have people unemployed average hourly earnings are up 4.8% in that environment you should be expecting, you know, profit margins to be under pressure, multiples to come in with that kind of backdrop, cash is really good, because you're going to get a lot of companies mispriced on the down side >> that is some concerning looks

when you take a look at that, down 20%, you're saying, for the year dan, thank you on that note, we're going to leave it for the weekend we've been watching the future after the hotter than anticipated cpi number came in dow futures up now by 146 points, the nasdaq up by 100, continues the gains we have seen this week. guys, have a great weekend we'll see you all back he eron monday morning "squawk on the street" is coming up after a quick break

good friday morning. welcome to "squawk on the street." i'm here with jim cramer and dave faber an important day the november cpi really brings no surprises from a prior month. futures actually game steamed here, as the fed arguably has the go ahead for a faster taper next week. the highest read year on year, futures moving higher, but what does it mean for the economic recovery and fed policy? >> plus spac on the streets.