apparent is, so there's still time for it to play out. >> toni, thanks for your time. it's great to see you. >> thanks for having me. that does it monday officially off the books for us joe, that's officially 20% down in the books. >> it will be the 14th tomorrow. >> yeah, christmas is coming far too fast we'll see you tomorrow "squawk on the street" starts now. >> good morning, welcome to "squawk on the street. we are looking for a higher open, i think it's fair to say our road map does open, amle is

closing in on a $3 trillion market value weighing the covid risk for investor respect, the uk warning of a omicron tidal wave. emonth mo-- elon musk adds "tim" person of the year to his list >> i was hoping -- we didn't get that i did my invest club meeting this week, i was hoping for a downturn ahead of it, so if he shocks us, we would already be cushioned, instead all the research is here's my idea for

2022 everybody likes everything to me the stuff is not -- with what we're seeing ourselves, high growth technology has been failing. a lot of people are recommending ipos, that you and i both know are not as substantive >> now, a lot of that is made up as well from spacs, not a lot, but certainly a significant am have been spacs, but you're right. not been a good year for the performance. >> no. considering, wait a second, are they saying it's time to buy sweetgreen is this the moment you said to buy braise now, customer engagement, i

would have thought we had that with salesforce. i thought we had that with shopify. i thought we had that with half a dozen sdpees david, i have no interest in these companies. there's too many of them. >> right okay so you're a little, as we head into wednesday, with the prospect of the fed giving us more on the taper. >> at the has to be tougher. we know that, though you'd have someone like mohamed el-erian say it's already too late. he won't solve the port problem -- >> to combat inflation >> yeah, inflation is hot. >> yes, it is. yes, it is and it's more expensive. but the inflation is not necessarily -- you'd have to destroy the economy in order to save it here >> i would ask you last week --

i think 13% rates -- >> great deal with treasuries -- >> 1.6 only a few weeks ago. >> that's a greater return than most stocks. >> yeah. >> i'm more concerned about how long can you have the breadth of five stocks being 51% of the performance of the s&p, and i come back and say, wait a second, i think that, so what? do we really think that that means the others wrong catch up? >> well, there they are, or at least a lot of that performance. by the way, microsoft -- we forget -- >> i think the faangs -- up 4% this year as it surpasses $2.5 trillion, and of course, with apple, which we just mentioned, now up 35% for the year, helping to power the s&p >> think about these companies not affected by omicron --

>> right, right. >> have tremendous franchises to keep reinventic themselves the last one being apple i look at apple as, what happened three weeks ago when we got a report that apple basically 13 was a dud i think a lot of hedge funds -- remember these hedge -- >> barely lasted a day and you were dismissive of that story and most likely correct. >> i got heat, because i was so vicious about it. >> if we hold up that number, that takes us just within a have you few billion of $3 trillion it's an astounding number. >> i know we focus on it a trillion seemed hard to imagine, frankly >> what does it mean elon musk, a trillion, what does it mean? >> you mentioned salesforce and

ford within the first five minutes of the show. i'm glad we're keeping that up. >> i'm trying to deal with "time" magazine person of the year where is dr. bourla. >> you have some insight benioff owns it. >> he has said over and over again he's not going to influence "time," and -- >> you didn't tell him that, did you? >> david, you're so small-minded. >> secret life of trees? >> let's call zuckerberg -- >> what about zuckerberg "succession" was amazing our producer hasn't watched it don't ruin it for him. >> david, we're very much in the news, just not for anything

substantive. >> it was like, i've lived this. you know what that was equivalent to, what they chose -- i can't talk about it. >> you spoil everything. when and you have spoil like that, that means you don't watch it. >> these are stock market issues. >> back to the market. >> you know they didn't realize they were going to hurt peloton. >> i don't know. >> that was something. >> to wrap up your view of the market, which will change. >> wednesday, but there's pieces out, which talk about the actual verbiage if he says -- he drops this or does that, but the overall nature of it is the market is not as good, unless it's -- there's fewer areas. >> and you're questioning some of the positive research on these high multiple growth names that have been getting hit. >> do you try to resurrect them?

this is the time to buy monday.com if you're getting hub spot, but not in qualtrix, i don't know what you're talking about. >> you actually wrote those names down >> they're funny we're in an alternative universe >> i've never heard of them. >> it's time to buy, you know, qualhome. >> it's -- now, braise is a new marketing -- >> what's braise >> they help you to compete against other people who -- >> it's not your brisket or anything. >> braise or ablaze, i don't know can we go back over buzzfeed really i like toll brothers everybody like everything equit

cream. lettuce. you know what they do? they add plus to everything or forward. you know sweet cream's is -- >> they have a streaming service? >> it's lettuce forward. >> lettuce disney plus >> we're just covering -- it must be more -- >> let's move on to the pandemic >> i canceled everything after listening to gottlieb. >> a new israeli study shows that a booster shot from the pfizer/biontech provided strong protection from severe illness from the omicron variant on the other side of this, boris johnson accelerated the booster roll-out and announced the first death from the new variant the health secretary says it's spreading at a phenomenal rate

and dr. scott gottlieb, who we go to often here, because he's been often right, he weighed in on the situation in the uk earlier on in "squawk box." >> it's concerning to see the british take this stance they have good data and good systems in place if they're seeing a significant threat from omicron, i think the world should take notice of that. >> >> i thought that was a major wake-up call he's basically saying, remember, if you go away, have to quarantine, they won't let you back in. the data in the uk is always strong the testing is free there, so it's very strong i think a lot of people who listened will cancel >> you already canceled because of the hassle of it all. >> right. >> what about milder symptoms, which we continue to hear aknock dotally, but everyone -- >> until we get the viral, it

feels like milder symptoms -- who knows how bad that is. >> i never thought it was that bad if you got three shots. >> david, the clarion call of dr. gottlieb was, don't go anywhere. >> anywhere? >> well, maybe in the united states go to disney because the investment club owns disney. >> pfizer is using some of the vaccine money to buy things. still, a 50% margin with $10 billion or more in cash. arena farm suit calls, if you owned it on friday, it's a double you'll take that.

i love that it's $100 a share. we won't take 99.99. it's got to be 100 now it's $1.25 but, jim, pfizer can use some of these cash -- >> this is what huge win for pfizer. >> they could use some of that being generated by the vaccine revenue to put them in a position to deal with some patent expirations. >> it gets rated, and, by the way -- >> instead of returning it to shareholders with a buyback. >> like bristol-myers -- i think pfizer has another three or four companies it could buy. >> we get like one of these or so a month, but some argue we should be get more than that

come 2028, you were a lot of important drugs that generate tens of billions in total revenues that conceivably will come off patent in '28, so you want to start now, because six years from now is when they conceivably, many of these drugs, if you get it at the right price -- >> companies come public, half of them are a legitimate disaster, but probably 30 companies are biotechs they're not orphans now. not an orphan drug nobody wants them. >> they are until a pfizer or a merck comes look with 100% premium. then you have to actually know what you're doing. >> the overwhelming notion of the research today is that you don't need to think about the -- it's going to be great here.

when i read that, i want to be more circumspect that would help. the numbers do diminish, be people don't care. how many building, positive on bristol-myers, positive on ford motor. >> going to the etfs and index funds, anyway. >> and then airbnb, braise, a charge point people are suddenly saying it's time for chartpoint. >> you are a tree's nightmare is what you are you come in with this. you have like 17 pounds of paper. >> i have to go through it, unlike -- i don't know, what are you study iing engine one and exxon? i have to go through the koston app book is he on today >> he was on, friday, was it

>> you can't have enough koston or sacconaghi. there's one other guy -- >> ives? >> ives. >> yeah. who was the guy that used to stand on the side and scream at them gelman don't tell gelman what happened on "succession." somehow he couldn't watch it last night harley davidson is taking the electric motorcycle public via a spac deal. let's look at futures. still looking for a higher open. more "squawk on the street" straight ahead

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peloton close to a three handle now. >> it seems like i'm having a heart attack -- >> spoiler alert i don't think the company has addressed -- >> maybe they have. >> my wife said, last night, they killed him off in the first episode? >> sorry, david. >> i don't care.

well, i didn't care, but as we mentioned peloton is firing back on the portrayal of the "sex and the city" reboot, which implied its -- out with a parody ad, saying it's just not true. >> shall we take another right ♪ >> life's too short not to ♪ >> and just like that the world raw reminded regular cycling reduces your risk of card rho rag collar problems. he's alive >> i'm it willy getting tired of ryan recommends. >> becoming a conglomerate >> yeah. >> now, david, chris naught watching the show. we'll have him come a.

i'm going to tell gel man -- let's call chris chris absolutely loving the stock market and, david, we've had lots of businesses leaning into tv and vice versa. >> he has a perspective? >> i think he will zuckerberg in "succession. >> he was mentioned. by the way, so was lion tree >> did they mention move fit nathanson? >> silicon valley has a $41 billion market value >> there's a cultural phenomenon that the stock market is actually involved and, david, you know, i'm saying --

>> go ahead. >> that people tell me there aren't enough sold, and people are shorting rivian. >> it didn't matter, the stock has so or rend out we could -- >> peloton is still 12 bill, what do you think, could we get it down to seven this is crazy. how can this be? >> how's your cardio, your good? >> yeah, but there's a lot of other stuff. >> make sure you're taking care of yourself. we can't lose you. another look at futures. we have a little less than nine minutes with trading here. we're going to squeeze in jim's mad dash a lot more "squawk on the a lot more "squawk on the street" when we come back.

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all right. let's do a mad dash, of course, counting down to the opening bell, about six, five minutes from now what do you got? >> i want to talk about coca-cola. people are not -- they don't want to hear about braise, they they want to hear about coke b bodyarmour is closing, they have much more under control. so the question is, what do you do with coke, a generic name, where the street really wants you to buy amazon on microsoft the an is, you can't get performance from coca-cola

i stand here and say to myself, what do we do with the fact that the vast majority of people want this kind of company, as opposed to a name like, you know, picking one of these various ones, snowflake, which has been terrific by the way. when you mention at a party, what strain is that? >> alex karras from "blazing sa sa saddles" who is mongo? >> but are these names going to come back? >> when the market went down, people go to coke. i think this is an interesting idea the issue is growth. buyback growth, dividend growth, but is it actual product growth?

>> nobody expects double-digit growth. >> which is what you need -- >> berkshire still owns a lot of coke they have more apple than coke, but i'm keeping this in mind this is what started to do well, when we had the collapse in the dot-comes. all right. we have a lot more for you, including the dollar tree, the fight there. we'll talk a bit about tt.ha also coming up is the opening bell bell so don't go anywhere i didn't have to shout out for help. because you didn't have another dvt. not today. one blood clot puts you at risk of having another, so we chose xarelto®, to help keep you protected. xarelto® is proven to treat and reduce the risk of dvt

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>> announcer: the opening bell is brought to you by - if somebody makes better cars than we do, and they've been selling more cars than we do, i think that's totally fine. our intent was always we would serve as an example to the car industry and that -- hope that they also make electric cars that we can accelerate the transition to sustainable energy i'm confident tesla will do

well. elon musk tacking about tesla in an interview with "time," that publication naming musk person of the year in 2021. [ bell ringing ] >> remember, i tried to buy this, using ethereum, and i failed, but i kept the ethereum. it wasn't meant to be traded, you know -- >> the opening bell, i want to get back to musk you see the cnbc real-time exchange, kind of a mixed bag here so far. crest end energy celebrating its listing, and synopsys at the nasdaq >> musk is saying, basically,

bring on rivian, lucid, certainly had a big convert de, bring on ford. he's talking with the mach-e gm had a very big move last week mary barra was laying out a pretty good case these intrigue my, earnings per shares posted as whatever per share people are trying to sell us better just -- >> it's hard to argue with musk not being sort of the senior maker in the business world right now. he is. >> we talk about him all the time. >> we kind of knew this already. it's not just what he's doing. would ev sales be where they are

if there was no tesla. >> norway says you have to have them they had a snowstorm and all the electric cars stopped. >> they're a small country it's incredible. i was there during the winter olympics -- sorry, i was there during the summer olympics and they are incredible. i was in norway when the olympics were going on, i was doing -- it was for the "house of cards" documentary, and it reminded me again of the fact that they win events winter and summer. >> david, everybody was up in the early market is now down inindividual was was up three, now down appleis not up nearly as much. i continue to think the analysts are way out -- they're nowhere they're what they should be writing in terms of the

negativity they're way off message. >> all right i sense a -- this could change i know that. but i sense a less-positive tone from you >> i brought all these for one reason these are all buy recommendations. these are buy recommendations, this, this, this is a hold >> so typically that means what? >> i was hoping in my investment club, look, there's good opportunities, but everything is an opportunity for heaven's sake not everybody is an opportunity. not every will go how about? i found a recommend aids for ralph lauren, but how about toll brothers is it time to buy roblox no, it looks like it's applovin.

>> it remiff me -- largely up is pharma it's $6 billion, but that stock is up. j&j is up. bristol-myers is up 2.5%. >> 15 bill, a nice boost to the dividend that's fun to watch. pfizer is love, because it's got an upgrade, and it's clear maybe there's a fourth booster chris naught is saying, all is forgiven >> merck got a downgrade from ubs. no positive -- in the path in 2022 >> that was the only negative all morning. >> certainly versus the group, it's down about 7% >> is it better than canopy growth >> i spent a lot of time talking about it

concerned about the reduction in efficacy that they saw in the study in terms of preventing hospitalizations, and a couple other things. >> they really dumped on merck. >> yeah. yeah >> david, in terms of bullishness, my charitable trust owns disney. disney significantly -- some of the parts, as if they're ever going to break up disney, and then you have "west side story." so -- >> it only did $10.5 million at the box office it also opened to rave reviews, i think it's fair to say is it because people don't go to the movies anymore >> adam is going to call in and say, how dare david faber say that >> why should he care? he only has 96,000 shares left

to sell. >> i think he's very up-front about his selling. don't you love -- gamestop, insiders might sell in. >> yes. >> there's a risk factor yes, there could be selling by people who made fortunes, even though the company's earnings are no good. it's now going to get hit by those people anymore unless i have a picture of my spaghetti sauce, i'm a dead man. let's talk dollar tree, if we can it's one of the more interesting fights going on. you may remember him from -- >> they wanted to clean -- get rid of the board >> on friday they nominated 11 directors to take over the board? this is -- >> are you kidding me? raised outside capital, he's a well-regarded guy, i calmed

him, by the way. he wouldn't call me back he had a representative call me back i'm really not interested. >> he's been around for a while. >> it's just a phone call. we can even talk on -- anyhow -- >> that means obviously -- >> they offered dreyling, who he's associated with, who knows the company well. >> dollar tree is trying very hard they bought family dollars. >> they're not really represented. >> okay. >> i'm just saying that dollar tree, can we just accept the fact that 50% of their stuff is now off some -- >> they may not -- >> they may be suffering as a result of that, though >> you know, they're moving the boats away from, so it --

>> we talked about that a friday, the journal did that story, remember? you can't see them any longer in the l.a. port, but they're going at half the speed, so they're coming in much later. >> but dollar tree, where do you think they make that stuff in connecticut? >> we know where it's made it's made in china will you let me read from what dollar tree had to say, please will you, please thank you. the only operational suggest made is that they should said merchandise is something that dollar tree has already been doing. instead it wanted a majority of the board to be replaced, mr. dreyling to be named as executive chairman >> i've got about a hundred companies that are down -- >> in covering our quick

coverage, wells fargo, to try to be fay, won't return phone calls, the 11candidates nominated to the board of directors is undeniable, as the slate includes many highly regarded former business leaders. okay jim, i will give you the final word on this buy, sell or hold? >> look, they have problems -- are people going to unionize remember like the starbucks. >> buy, sell or hold, jim? >> buy they're doing everything they can in an environment from 50% are not really benefiting from this economy dollar tree remains indispensable. >> thank you. >> i ha-- david, as between dola tree and apple, what do you

think is more important? >> i believe apple is more important -- >> they underestimated -- >> i would want to talk about apple a lot, and we do, and we should that $3 trillion, that's 30 $100 billion companies. there's not many of those. >> that's where the performance came from, unless you're in such a special situation, and there aren't that many this year, because there haven't been as many in the second half of the year >> yeah. the deals we continue to see are the likes of which we talked about this morning, obviously the pfizer deal, the spx flow, a private equity delivered by lone star a share in cash. it's like a $3 billion or so, i think. those are the deals getting done. >> benefiting the investment

banks, and all the advisers, it's a strong m&a year, but not headlines, not stuff we're going to spend a lot of time talking about. just a -- it doesn't mean we won't eventually see some of those, but you have to be potentially prepared for a court fight, if there's a new headline deal >> there's consolidation in this tech area of customer relations, no consolidation in the database industry there's no consolidation in an industry that's being roiled by snowflake, by not rent the runway, but rent the cloud there's been no consolidation in rend the runway, threadup, which is just a disaster >> to you put them all together? >> and be bought by macy's.com

>> we have an interesting one that combines two different things, evs and spacs. >> oh, my god. >> that's harley davidson. >> it's finally up. >> there it is, on the announcement they are in fact going to take livewire, which is their ev sub, and they're going to merge it into a spac. >> you know, there, there's so many esg funds for instance, i had asic on, they make artificial faux wood but trex is almost 100% recycled trex is up 65%. >> right. >> esg factors matter tremendously there we are suddenly an esg

motorcycle company. >> we do we do. interesting that they have chosen to do this. obviously it will separate it, they will still own a good amount $400 million in the trust, $100 million investment from harley davidson, another $100 million from another firm. enterprise expected at $1.77 billion, saying $2.3 billion, that would be a close. interesting point to use a spac structure to actually take that public obviously you can do it more quickly, potentially. >> do you think there were a number of spacs for this piece of business? >> absolutely, without a doubt as we know, they're 581 spacs. >> for different businesses, 568 spacs. >> in search of what >> in search of a deal by the way, some of them are

falling apart, like the scvx, and bright machines, they mutually agreed to temple nate their combination. the e-toro deal they pushed off again. >> but, david, let's just be business people, you and i. >> okay. >> why don't we get half a billion and try to find a business to buy. how about this how about we try to find a business to buy and then get -- >> ooh. >> then what would happen? >> the s.e.c. would come after us your friend gary gensler would not be happy with you. >> he uses a lot of new media, maybe he uses -- all right. you ready to talk to pisani? i think i am. >> have you mentioned at&t

>> oh, my god, down another 1.8% it's a moves target. >> because they killed off mr. big? >> i don't know. >> that's horrible fox is down 2.5% you think that's because chris wallace is leaving >> no. >> discovery is down, both continue to go pressure that the overall value of that potential deal, when discovery actually ends up merging with the warner properties that are party of at&t they have to figure out whether it will be a split or -- you know, how they structure it they get to tell us. >> it's not for real >> it could be, by the way, completely april of the cupping year. over to bob pisani for more on the market as well.

bob? >> good morning, david we spent friday, big rally into the close, very hesitant here, part of it because we're still dependent on the omicron headlines. boris johnson did help that. that took the futures off their highs. you see how defensive everything is today tech is up, because apple is still holding up very well most of the big faang names are flat to down so it's really apple holding up tech energy, industrials all weaker you see this in the dow. they're sitting this at the lows for the day. it's all defensive other than apple. where is, for example, any of the banks. where's goldman, jpmorgan? they're all down 1% to 2%. so, you see a lot more hesitancy

here today if you look at the headlines, what is moving markets, omicron headlines moved the market more optimism last week, more optimist this week, as they reflect the concerns they've that headline affects the supply change issues. we're sort of dependent on the variant headlines for supply change issues as well. you see how it becomes very connected. a big story with their comments out on wednesday the bulls believe they have become hawkish enough at this point. the cpi report, the fed changed, so it was viewed as a positive essentially, we'll be able to handle it. we'll see. remember, the important thing is the market wants guidance and it's going to be gradual they don't want aggressive rate hikes. maybe three, but again, the question is, what is the t

terminal interest rate >> earns estimates have been -- but usually it's quiet, so we'll see, the good news is they're not dropping here holding up. as for where the markets are, nasdaq has announced the additions to the nasdaq 100. i want to show you, these companies are all trading up in the premarket, because these etfs have become enormously influential. when you have the qq governments, adding and subtracting, the market has to buy into these stocks, then, of course, hold hem for a very long period of time there's a trillion in inflows, going into plain have a stilla, the nasdaq 100 and s&p 500, so when these announcements are made, all trading up, the ones that are being deleted -- this is the nasdaq 100, this is a mechanical process, the biggest nonfinancial stocks in the nasdaq 100, put up the deletions

here, that's exactly what was happening in the pre-open. finally david was mentioning the ipos, just put some meat on the bones about that, because we've had a tremendous amount of ipos, and generally the first-day pop has been terrific, the historic average is 15%, so enormous first-day pops they've gotten significant first-day pops this is like heaven for a someone issuing down now, but down 17% why is this happens? it's happening, david, because it's a buyers market demand has -- the average cnbc viewers might be buying it at the end of the close of the first 2k5i they're the one that's not very happy. maybe we could get them to lower the prices in 2022, how about that for an idea >> i think it shows it for why

fox is down. i was half serious on the chris wallace departure, but it is because it's exiting that nasdaq 100. >> yeah. i would love to see the average viewers. what okay >> which one did you get sucked into. >> let's get an average viewer and do a bond report before we head to break, how treasuries are fairing this morning you saw it earlier, yields are hanging right inthere at about 1.445 on the 10-year the 30-year at 1.825 we'll be right back.

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enough time to find out what's on "mad". >> exciting show really the best of the snowflake still staying up and then, david, craig moffett, for a terrific deal from sibb a big company and michelle is a barista. i feel like everyone knows i've been pro starbucks over the year it's important to present the other side >> interesting. >> just a barista or a specific -- >> person who has been quoted a lot, that's been the leader. >> right great show. >> thank you >> all right >> see you tomorrow. >> rivian flying >> rivian up sharply speaking of evs, the ceo of harley-davidson on its electric motorcycle division going public via spac and he will be joing epin ke it here.

♪ good monday morning. welcome to another hour of "squawk on the street. ale david faber with morgan brennan live from post nine at the new york stock exchange. carl quintanilla has the morning off. a look at markets this hour, we are down on all of the major averages. >> we're 30 minutes into the

trading session so here are three movers that we are watching this monday morning we're going to start with pfizer, with a new israeli study showing that its booster shot provides strong protection against the omicron variant separately the company announcing a deal to acquire arena pharmaceuticals for $100 per share in cash or $6.7 billion the shares are jumping 4% for pfizer plus, peloton, pedalling higher after a ad over the weekend featuring chris noh after his character's death in the "sex and the city" reboot, following a ride on a peloton bike that includes ryan reynolds, the commercial you can see the shares are up about 5.5% it will be interesting to see what marketing spend on that commercial was harley-davidson, the shares are revving higher after the motorcycle maker announced it's taking its ev division public via spac we'll discuss that exclusively with the ceo in just a few short minutes. david, as i mentioned those shares are up something like, i

don't know, 18% right now. >> yeah. i'm looking forward to that interview, hear what their strategy was behind that decision we're also keeping, of course, a close eye on shares of apple this morning it has been closing in on that $3 trillion valuation. as you can see, what is it, about $30 billion away joining us the managing partner gene monster i know you can remember a trillion and 2 trillion, before a trillion, and i venture to say, you've been bullish pretty much all the way up and continue to be. why? >> david, it's based on a simple logic and framework i've used all along and wanted to get it right on the way up and be the first to call it when it's ready to go down, but that simple framework is based on a truth that investigating period, particularly investigating in apple, is related to predicting what's next. >> they have had the what's next

every five years and reinvented themselves, whether it be the iphone, services, and here we are at the cusp of another yet reinvention, potentially two reinventions, and that's why i remain optimistic. i believe that company's best days are yet to come and i want to quickly frame in the optimism, is that we have the core business is predictable having a headwind with the supply issues we can talk about, but really fast forwarding beyond the supply constraints is that the two big opportunities for the company are centered in the metaverse and autonomy the metaverse is going to be real for apple and they will have hardware, we think they will preview in 2022, a goggles, years to become mainstream, but what is coming next and can be material to apple's business then there's autonomy, and i'm

cautious about endorsing this theme too much given my mistakes around television in the past and seeing what apple works on doesn't necessarily see the light of day if i can frame in the opportunity, 20% market share on mobile today, 10% in auto, $540, $380 billion next year this could be passive for them caution, we're years away but the point of investing is to be in front of the curves to have that optionality trading under 30 times is a bargain. >> gene, let's dig into that more the recent rally in apple shares amid a broader market downdraft, i guess the last month now, apple was being perceived as a flight to safety given the fact it has a pipeline with all of the future innovations in it which may or may not see the light of day

does that change the thesis there? >> you have a core business that to $200. my previous price target was 200 that excluded the multiple expansion on the metaverse and what can potentially happen around autonomy. to answer your question, there's upside based on the core business this is related to accelerating digital transformation they've had some call it wins recently in the courts regarding some of the steering and around services i think when you put that together this is still just a sleep well at night company and should be $200 it begs the question, do you own it from 180 to 200 that's a decent return, but for the real upside to kick in, they need -- i need to be right on this, they need to get into one of these two i feel with high conviction they're going to do something around mixed and augmented reality in glasses around in the years to come and high conviction despite my apprehensions that is the future

and, of course, the car. to answer your question, if i'm wrong on both of those, i still think there's upside to the stock. >> so then would you call apple one of your key metaverse plays or if as an investor you're only going to put your money to work in one or two names, would it be somewhere else >> the metaverse, i think you do a basket i think it's apple and probably a company that we're investing, coinbase, as the bank of the meta verse that is an opportunity, you said two companies, if i can stretch here, i think meta, aka facebook, is going to be a participant in this as well. >> finally, just to come back to the multiple, gene, you see or you believe that 35 i think is reasonable obviously this out performance versus the s&p has brought the multiple to i think a higher level, certainly than it had been why are you confident that you can sustain, you know, a multiple that it's rarely seen

>> so, as you said, it's rarely seen it has been seen before. i think this is where my confidence is, it's not just about new product segment and new product, apple comes out with new products all the time and don't have this kind of lift in the potential, it's about the size of the addressable market the answer to your question is, we framed it with at market is, that met saers have is essentially the next version of the web, those type of opportunities, and i do want to acknowledge that investing based on multiple expansion is dangerous. i think that there is risk, as you're basically predicting what psychology is, but nonetheless, that's my job, is to try to make a bet on what the future is dg to be. in this case it's going to be deafening the enthusiasm about the other markets that apple will get into and that will push the multiple higher. >> as we have been talking, the stock has moved up ever so

slightly only $25 billion to go until we see our first $3 trillion company. >> thank you. >> let's turn to the broader markets and the federal reserve because it's a big week for that as well. steve liesman is looking at how the equity and fixed income markets have priced in a hawkish fed outlook ahead of this week's meeting and whether that's enough steve? >> morgan, yeah, another strong inflation report we got friday with a promise of more inflation to come raises the question, whether the fedded may have much more to do to get control of rising prices. markets already have that priced in but actually move to slow the economy. here's a preview of tomorrow's fed survey we asked if the fed would have to raise rates above neutral and slow the economy 45% think it's a possibility 48% said no. so pretty close for our 33 respondents. >> that's big risk is by being so late and going so slowly, they may have to hit the brakes and that's not something that

the economy or the marketplace will appreciate. >> rapid changes in the fed's own policy means most forecasters are only now catching up to where the market is they brought forward the estimate into the spring, early summer, is that enough given the current inflation outlook. the fed futures market priced in a may rate hike, second hike in september and a third one in december that put the fed's fund rate 90 basis points at the end of next year whether with march is a possibility for the first hike they will be published wednesday and see how aggressively the fed is forecasting path of the funds rate the real fed fund's rate, take out inflation, it's minus 6.8%, lowest on record the fed has an awful lot of work to do to get to neutral and whether markets have priced in that amount of tightening. guys >> steve liesman, thank you. as we head to break a look at our road map for the hour

including a first on cnbc interview with the ceo of harley-davidson, which is taking its ev division public via spac. >> the carnage in crypto continues. at this point down more than 15% since the start of the month >> and six more astronauts getting their space wings, blue origins' big launch. we'll talk to one of those paying passengers on board don't go anywhere with the major averages in the red. i promise - as an independent advisor - to put the financial well-being of you and your family first. i promise to serve, not sell. i promise our relationship will be one of partnership and trust. i am a fiduciary, not just some of the time,

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welcome back to "squawk on the street." shares of harley-davidson surging this morning, up about 14% right now, announcing that its live wire division will become the first publicly traded ev motorcycle company in the u.s. live wire is merging with aea bridges impact corporation, an esg focused spac, giving it an enterprise value of $1.8 billion. joining us first on cnbc is harley-davidson ceo and chairman jochen zeitz great to have you on the show. i should note you're going to be acting ceo for up to two years after this deal closes of live wire as well live wire has been in the works at harley-davidson for about a decade why are we seeing this deal happen now and why are you doing it via spac? >> hi, morgan. well, it's a great opportunity this is a win/win for everybody involved we have great partners in the

transaction and, of course, harley-davidson in the background that will help support for live wire to become the leading electric motorcycle brand in the world i've been involved in the process for ten years. i've actually been on the board and set up the sustainability committee for harley-davidson and pushing very hard to think long term and think electrification. after having been given the opportunity to become the ceo, i put that on the fast lane and electrification is part of the strategy and through live wire we can spare the electrification and that's why taking the final ultimate step to spin it off is just the logical thing to do now. >> yeah. you came on as ceo of harley-davidson back in 2019 in the midst of, really, a struggling secular decline we're seeing not only at harley but across the broader motorcycle industrys the core ridership has

continued to decline you propelled this strategy called hard wire as well to be able to stand live wire up on its own as a standalone brand and merge it with a spac what does that enable not just for live wire but harley-davidson as well >> every crisis is an opportunity. i saw a huge opportunity in a time when people were locked down at home and just wanted to get out and ride we see a great surge in new riders coming into the sport, you know, riders also getting on to their bike and riding there's a great opportunity. you know, harley has had very special moments in its history and this is one of these special moments in a horrific crisis i believe the strategy that we have for harley-davidson will benefit because eventually we will also electrify harley-davidson but live wire will spare the development through technology and the consumer bringing the technology back

into harley is obviously a key objective. therefore, it is positive, while we have huge potential for harley-davidson as a brand and company, this will be one of the key strategic elements that will help us achieve our ultimate goals. >> so would this enable that hard wire strategy to achieve its results faster than previously forecast? >> it's one of the six key elements and everything is on the fast lane right now. electrification is critical and long-term goal for harley-davidson, but we still have tremendous opportunity with our core business, whether with motorcycles but adjacent businesses like merchandise, we see opportunity for the branded that is based on adventure and freedom and we see growth opportunities to tap into. >> you mentioned the urban rider. we know the core baby boomer rider for the classic harley brand. what is the core ridership look like for an ev brand

>> well, it certainly is a new generation of riders that is not to say that harley is not really targeting its product also to new target audience we've just launched this year our sports in america, became market leader in the u.s. overnight, so there's great opportunity to expand or cut various profiles from our core customers to new customer groups we're targeting. for live wire and electric it's a new set of consumers that have a different expectation in terms of the technology, in terms of the feel and look, and that's what we're really targeting with live wire. >> yeah. looks like the ev ramp is going to be drama over the next couple years. 33 million in revenue for live wire, up to $1.8 billion potential profitability in 2026. how does that take place >> it's not going to be linear a lot will depend on when we launch new product into the

market with live wire we have a terrific product, but also planning to launch new products into the market based on our new aero technology. there's lots of opportunity there to grow the business, and, you know, if you look at the overall adoption rate, we see that increasing dramatically over the next few years, adoption for ev, infrastructure is being built, and the technology is getting there as well exciting products, better infrastructure and incentives will also help to fuel the ev growth. >> how many ev model douse plan to develop how quickly will they roll out and what does the pricing look like >> i will hold that answer until early next year, but we have several platforms that we are developing over the next five years and we will hope to have some news about that early next year right now, live wire is our one model. i've prototyped and tried our next model already it's an amazing product and

coming to you soon >> we'll keep an eye out for that in the meantime more broadly, want to get your take on what you're seeing in terms of the supply chain right now harley, like so many companies across the industries, has been affected and not immune to the materials costs to some of the parts and supply shortages we've seen as well what are you seeing, how are you navigating that into 2022? any signs it's subsiding >> i would say probably we can be hopeful for the second half of next year we still see challenges going into the next year they're not going away i think the team has done an extraordinary job to minimize the -- actually didn't have any blackouts, we had brown outs, but to keep at it and get the products to our customers we've done asgood as we could and compared to our competition a lot better this is not going to go away it's a daily battle. we are well placed to take up the challenge. >> jochen zeitz, thanks for

joining us on cnbc on the heels of this news, the ceo and chairman of harley-davidson. >> thank you. as we head to a break, keeping an eye on shares of at&t, you can see that is the performance of the stock since it announced that deal, of course, to combine warner media with discovery, remember at&t shareholders will own 71% of the combined company the deal moving ahead nicely but the stock has not performed well at all, as you see down 30%. it hit a 52-week low no real news, perhaps, just tax law selling, we're at that time of the year and certainly this would be when you sold for that reason, remember they're getting $43 billion in cash, also going to hold debt securities and the like. we'll be right back. st wh . ayitus

welcome back we're looking at the consumer staples etf ticker xlp snapping a four-week losing streak, flat right now, on pace for its best month since november 2020. hormel up double digit, pepsico

and coca-cola are up sharply david? >> thank you, morgan sticking with the consumer and bring inflation into the mick, kristina partsinevelos is texas looking at how a global shortage of my nitrogen fertilizer could impact your spending at the grocery stores. >> prices are shattering records, leaving farmers almost little choice but to pass on the costs to consumers here at this farm in el paso, texas, just outside of dell city, they produce everything from cotton to grapes and the owner told me he's never seen prices this high >> somewhere around $220 a ton in the last quote last week, over $850 a ton. in the long run it's going to be interesting to see how to sharpen the pencil to get

through 2022 >> now tro again based fertilizer relies on natural gas and coal through the roof because of export restrictions from russia and china. and so this has created headwinds for prices, so much so, that 6,000 farmers just last week alone asked the department of justice to look into whether there's any market manipulation in the fertilizer market we're seeing food prices climb to levels we haven't seen in the past year. this is according to the united nations food index experts are warning, it could get a lot worse next year. >> little bit of lift in corn prices, but i wouldn't say we're fully accounting for what potentially could be big changes. i think beef prices will have to inflate higher as feed costs go up and i don't think there's any relief around the corner for consumers. >> fertilizer prices touch almost every single item on your

dinner plate, so when energy prices climb higher it's no doubt that food prices will soon follow suit. i know the owner of this farm was adamant that farmers be part of the conversation that goes on at capitol or we will see further pinches to our wallet. i'll toss it back to you. >> such a key part of the conversation given the fact that narrative around food prices, for example, are that they do tend to be transitory, they tend to ping-pong and be volatile as well, and it sounds like when you're talking about something like fertilizer prices, a potential to be stickier i wonder what it means in terms of the potential for new types of innovations or ways to fertilize crops could be adopted? >> well, that was an excellent point too. i spoke about it with jay hill in terms of using cow waste, pig waste. one story trending where people are like you can use human waste

as well. they are looking at carbon capture which is an important part of the conversation storing these nutrient in the ground but because fertilizer prices are high a lot of farmers are laying to take out the nutrients from the ground and use that for their crops. it's like these high prices a aretaking away from their green initiatives in a way overall, there are alternatives and the eventual goal will be to not be reliant on fertilizer prices >> thank you by the way, get good tex-mex for us >> heck yeah. >> as we head to break, we're keeping an eye on big moves among the stocks amc continuing its slide in the days after the ceo and cfo sold more than $10 million worth of stock. something david has been watching gamestop extending recent declines after reporting results last week. both stocks down more than 20% so far in december we're back in 2.

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welcome back i'm rahel solomon. here is your cnbc news update at this hour. the death toll from this weekend's tornados may be lower than initially feared. kentucky governor andy beshear says 64 are confirmed dead initially he estimated the number could top 100 tens of thousands still remain without power in kentucky. the uk is reporting its first death from the omicron variant. health officials say that omicron is now responsible for 40% of new covid cases in london long lines formed at vaccination centers after prime minister boris johnson urged all adults to get a booster shot to improve protection against the new variant. former fda commissioner scott gottlieb said other nations should take note. >> starting to see the british

take this stance because they have very good data, very good systems in place, and so if they're seeing a significant threat from omicron the world should take notice of that and a small study from israel finds that booster shots from pfizer and biontech give good protection from the omicron variant, but those without a third shot remain highly ruler inble. you're up to date. i'll send it back to you. >> rahel solomon, thank you. we're going to get a check on the markets here given the fact that we are at session lows and we have seen acceleration in the selling. you have the s&p down about 0.7%, 4680 your level there, the nasdaq is down about 0.7% and the dow industrials down nearly we'll say 0.9% or 327 points energy and consumer discretionary stocks feeling the greatest pressure while it's more flight to safety sectors like real estate and utilities as well as health care that are in the green all right.

turning back to, well, technology stocks, broadly speaking, our nest guest framing the internet as web 3.0, the transition to a decentralized, flexible global internet supported by the development of metaverse. joining us is goldman sachs' eric sheridan. explain what i read to our viewers so they can understand a little bit more of what you're actually talking about here. >> sure. thanks for having me on, david basically, what we're talking about is we're in the later innings of what we would call web 2.0, the transition from desktop computing to mobile computing. there will now be a next generation of computing or a next wave of computing that we're continuing to follow where you're seeing the rise of certain technologies in support of decentralization. you could eventually see the breakdown of some of the walls that exist in web 2.0, the rise of the creator economy, the rise of privacy, and in addition to

that, the metaverse, which is a topic that first started getting talked about over 20 years ago in science fiction and has gained a lot of popularity in the last six to 12 months, this idea of augmented reality mixed reality, and the almost element of you being able to put yourself into elements of a wider next version of the web possibly in the form of avatars and things like that, where you can have experiences, consume media and most would be much more decentralized than the application stored distribution model that you're used to in mobile computing via smartphones. >> well, i would argue, a the lot of us got focused on the metaverse when we saw the $10 billion spending number from meta, i wanted to say facebook, after the last quarter, eric that was a stunning number for just one year. i wonder, what's the opportunity there? is it the spending by those building the metaverse as well as those who are actually going

to kind of i guess be in charge so to speak, like a meta >> so i think there's two ways we need to think through here. i think you articulated it well, the $10 billion number didn't come from zero, facebook now meta platform bought oculus in 2014, so they've been investing on the are hardware side, software side and content side for years. they're giving us a piece of disclosure we can build off of but the investment started years ago and we think the investments will build over the next two to three years. first you're going to have the investment cycle do we get consumer hardware down to a price point that's attractive to a wider array of consumers? do we develop use cases that can be distributed and cause people to go out and buy this type of hardware there's always that tipping point of computing when the hardware and use cases match up with each other in a way to make it mainstream. we're going to be watching the

investment case over the next two to three years and then the emerging use cases over the next three to ten years what we did in the report was give scenario analysis around it, i know these are wide numbers, the idea you could see 100 billion to a trillion of investments that could have an output or through put of something like $2 trillion to 12 trillion of monetization all we were trying to say is let's look at the digital economy, grow that as part of global gdp and have this virtual economy growing within the scope of the digital economy to provide investors with a scenario analysis. >> so the 3 to 10-year time horizon in terms of investment and use case scenarios, best places for investors to put their money to play this right now? >> yeah. we said in the note was the three most exposed names by the team and i in the broad internet or gaming sector would be meta,

formerly known as facebook, the leading edge of trying to lead this transformation, snap, which most people don't think about, but it's an augmented reality first company. that's augmented reality using the camera on your phones and technology, and roadblocks covered by my colleague, is basically a metaverse first company in the way they describe themselves >> how does bitcoin and crypto currencies factor in this? we hear that's going to help lay the infrastructure from a payments standpoint for the web 3.0? >> there's a lot to unpack there. i will turn to it quickly. there will be technology blockchain that are decentralized in nature. because the asset value of crypto has gone up people associate crypto with decentralized web, but you could see other forms of currency emerge for example, my 14-year-old son asked me for u.s. dollars that

he turns into virtual currency and video games. that's an element of virtual currency we can see. i'm notsure we would necessarily tie those themes into linear matter together but an element of decentralization that ties through all of these themes that we'll have to continue to watch in the years ahead. >> eric, we will be doing that and talking more about it in the years ahead as well. thank you. >> thanks for having me on >> we're going to stick with that concept bitcoin continuing its move lower for the month, down about 15% since december 1st kate rooney has more on the recent slum. hi, kate. >> hey, morgan bitcoin selling does appear to be coming from the short-term sellers. those are the investors who bought at a peak and may be throwing in the towel at current prices short term, newer to the market and bought in the last few months and in many cases these are the smaller retail investors. bitcoin is trading below the average cost basis for these

traders, the price where most of them got in. that's around $53,000 according to bitcoin today, trading $6,000 below that level there's a metric analysts also watch closely called the short-term holder sopr this shows the profitability of coins when they are sold and right now showing a lot more bitcoin being sold at a loss or below the price where it was bought these are the least profitable levels in the last couple weeks now that we've seen in six months analysts say this group of these newer buyers appears to be the only cohort reacting significantly to the events over the last couple weeks while more mature or the longer term holders remain unmoved they also say those who are spending coins appear to be predominantly those who bought at the top, and are realizing losses and capitulating. here for the long-term holders, described as the smart money in crypto, and there's been less activity among that group at

these price levels the bigger investors who hold more than $10 million worth of bitcoin. that total number of so-called has dropped since november but the total supply held by the top 1% has continued to increase and appear to be accumulating more coins, according to data from genesis and coin metrics back to you. >> kate rooney, thank you. after the break we'll talk to one of the six astronauts on board blue origin's space flight from over the weekend. we're back in two. hey google. ♪ ♪ ♪ ♪ ♪ ♪

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have jeff bezos' blue origin completing its third human flight past the edge of space on saturday sixth flight of the new suborbital capsule and rocket for 2021 this was the ns-19 mission, marked the first space flight with a full crew of six passengers including good morning america host michael strahan, laura shepard churchly and four paying passengers it launched from blue origin's west texas site, a 10 minute, 13 second journey above earth, soft touch down in the desert and jeff bezos on-site to greet the newly minted astronauts. i've been talking about it all year, it's been a gang busters year for human space flight. we've seen i think closing in won't quite hit that number, but close to about three dozen private citizens that have made the journey to space this year enough that the faa is now doing away with its commercial

astronaut wing program >> it's going to get to the point where we don't note it anymore. we're probably getting close, oh, yeah, this weekend another three, four people whatever it is during the course of a week, right? that's where we're headed very quickly. >> yes that is where we're potentially headed certainly with blue origin, i mean the company is now expecting to do at least six more of these suborbital missions in 2022 and by the end of next year if all goes according to plan, virgin galactic enters as well. one of the astronauts on the flight, chairman and ceo dylan taylor founder of space for humanity congrats on becoming an astronaut. i have to ask you about the flight, what was the best part what was the experience like >> good to see you life changing. i'm not exaggerating the ride up is unbelievable.

you're riding a rocket literally, but when you unstrap and go to the window and seat earth from space, it's been said before by other people that have been there, but it's miraculous to see the earth from space. it is. >> what was the training like? >> the training was spectacular. we came together as a crew, brothers and sisters for life, you're going through something very unique, literally putting your life on the line, the training was fantastic to the point on game day when we were loading in the rocket, i don't think any of us had the nerves you would expect. >> now you were one of the four folks on this mission that paid for your seat. how much did you pay and how did this actual mission come together? when did you find out you were going to be on board >> right i found out about maybe three months ago i was going to fly on blue in the future and then i found out maybe a month after that, that i was going to fly this year, which i was very, very happy to hear

unfortunately, i can't disclose what i paid. i can say it's worth it. i can say that definitively. the other thing i want to plug, if i can, one of the call to actions i did for other commercial astronauts is buy one, give one, donating the equivalent of my ticket price to earth. i think that's important part of the narrative is space is a selfish endeavor and has nothing to do with the problems on earth and i disagree. i think space is part of how we address problems on earth. >> we were having this discussion before we brought you in, the fact that it has been a record year for human space flight, both on the government side but also on the commercial side as well it speaks to the trajectory we hear about from so many folks that have, like jeff bezos or a sir richard branson v invested in commercial space, the idea it's going to be like the airline industry, where it starts with deep pocketed folks willing to do a ride such as

this and then as it grows in scale and grows in acceptability and becomes mainstream the price comes down, and it becomes commonplace. how long do you think that process takes? >> i think we're going to be there sooner than we expect. this is going to be commonplace very soon an for those of us in the industry a long time and those of us at the commercial space flight federation, this is what we've dreamed of, right the ability to get people up there, have this unique experience and come back and really work on some of the issues we have here on earth i think is the promise of space. it is a tool for transformation. i've always believed that and now i know that. >> yeah. of course you have been in this industry a long time, and you do have this company that you have been building as well that is eventually expected to go public for an ipo we're keeping an eye out for filing you're not focused on rockets. your business strategy lies with establishing and growing economic activity in space

now that you have made this trip how does name pact your business thesis >> it confirms it. we were one of the three winners that nasa awarded the space station replacement contract to, and i believe we need more destinations in space. suborbital a path to orbital, lunar a path to mars and beyond. we're on a road map to open up the high frontier. >> dylan, thanks so much for joining us congrats on becoming an astronaut and on the trip. we appreciate your insights. all right. we have a big show coming up in the next hour for you. don't miss it. adobe's ceo on tech check discussion the company's new products the stock, adobe, is after what's been an incredible five-year run already, still up more than 30% year to date it starts in about ten minutes from now, so don't go anywhere.

welcome back to "squawk on the street," stocks are lower led by the travel and leisure sector following prime minister boris johnson's warning to the

uk citizens. he is setting a new booster target for citizens there. cruiseline tend to be most reactive are firmly in negative territory. down about 5%. also looking at hotel operators, booking companies lags, including names like expedia, marriott, down about 3%, hilton down 2.3%. later today we will get an update from the tsa about the agency's plans for an expected surge in travel during the holidays there is more ahead. stay with us jerry is here! j! mate, how are ya!? it's so good to see you. good to see all of you, yeah! why is jerry so... popular?

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welcome back to "squawk on the street." eamon javers is investigating a security flaw that may be the scarest he has seen ever >> the expert who told me that is cyber security researcher dimitry. talking over the weekend he said this is a big problem because the software involved, log 4j is ubiquitous it is a popular java open source

library for embedding data it is used in apple's i-cloud to the mars rover there is no guarantee that publishers will be able to patch the problem before hackers take advantage of it. the software was initially designed to take data from an app and store it elsewhere but feature that was added in 2013 allowed users to send data that would be interpreted as a url so the prom could then execute code it also allows attackers to send malware. since its discovery last week it has been exploited by bad guys u.s. cyber security and infrastructure security agency posted an alert about the flaw on saturday warning that it pose as severe risk and urging cooperation between the government and the private sector now the challenge here is that this software is embedded in so many products it means just about every company will be

impacted by this new flaw which is just coming to light. since there are so many vendors involved it's not clear when all of these patches will be made and that means the bad guys will have an open door for a long time experts think we will be dealing with the fallout from this for months if not years. >> that sounds scary eamon, you cover this so closely. one of the conversations that has been increasingly been coming up in the midst of all of these widespread cyber security issues over the past years is the idea of supply chain vulnerabilities within the software is that what we are talking about when it comes to this vulnerability as well? >> this is supply chain vulnerability on steroids. apparently, people figured out it existed on mine craft then there was a moment of awakening when they realized wait a second this is u.s.n just about everything thousands of softwares use this

open source software they can copy and it lift it into their program and they didn't know there was this flaw. as the patchers try to send out updates, the hackers are exploiting this vulnerability. it might take a couple of months and companies could have back doors they didn't know they had. >> that could result in data being stolen or a lot of other stuff i guess if you don't get to your back door and close it >> yeah. the problem for companies, david, is not that you can do-it-yourself dimitry told me over the weekend one of the big problems here is that you have to wait for your vendors to do it you might have hundreds of vep door who is operate software that has this flaw in it and you now have to wait if you are the ceo of a large company for all of those vendors to

patch. some are taking it seriously, others less seriously. and some are moving too slow in dimitry's view to get this done. there was a rush over the weekend for people to get the update and patch it is not clear when that patch period will be finished and it is a scary waiting period while they wait and see who is going to patch, and when. >> you will be watching it closely, eamon, thank you. let's get a quick check on tesla before we close out the hour elon musk was named time's person of the year the stock not reacting to that honor i guess you have to say it is at this point you have got a 52-week high here, 1243 bucks still a strong year, but bell off the highs. >> well off the highs. time person of the year, perhaps not advisingly, give all the milestones with tesla, and spacex as well we were talking about human space flight earlier spacex has been on the forefront

of the commercial space discussion and time has been covering it. >> i don't think there is any debate right now he is the most iconic person in the business world, i think you could argue given it is not just tesla, it is also space as well. that's going to do it for us on "squawk on the street. it is time now for "techcheck. ♪ happy monday welcome to "techcheck" i'm john fofrt with julia boorstin. apple within a stone's throw of $3 trillion. is the world's biggest market cap country still cheap? and amazon named top big for