and rivian we'll keep an eye on those names for those results as well. that's going to do it for us here on "squawk on the street. "techcheck" starts now ♪ good thursday morning. welcome to "techcheck" i'm carl quintanilla with jon fortt and julia boorstin today it has been a volatile 24 hours. the nasdaq rallies more than 2% yesterday, down again this morning. we got two members of the paypal mafia to talk about why it's been such a two months for tech even as broader indexes remain near record hies adobe falling shortly. what cloud and software stocks if any are safe to own right now. plus, one ipo to come in 2022, reddit, confidentially

filing to go public. we'll talk with early investors in the company this hour, jon. >> yeah. and we'll start with adobe and falling cloud-related stocks cloud and software names have been at the center of the selloff in tech. those etfs down double digits in the last month hit hardest have been companies that don't yet have profits or where the multiples are highest. as for adobe, earnings in line, revenue beats q1 guide coming in below estimates. shares are fai ing sharply this morning. the ceo we spoke to on monday is on the call which is starting as we speak he'll be on "mad money" tonight at 6:00 p.m. lastly, we'll point out adobe still up 15% year to date. and if yo go out multiple years, one of the single best performing stocks in the s&p market cap right here $300 billion. guys, it's rough in the daily action, of course, but given how much a stock like this has been

up several years, if you told me in january it would be up 15% at the end of the year, pretty good but i think it speaks to the whole valuation question that we've been asking again and again. and how infovestors are going to treat these stocks, even ones that have a good amount of growth and momentum in them. >> yeah. adobe is such a fascinating one because on one hand the tools that they have been offering, they've been introducing new tools are incredibly valuable. you see the valued proposition for their customers. on the other hand, they face incredible amount of competition in that spaceand particularly in some of the new areas that they're pushing into but when you look at what's weighing on the stock, carl, it's really about the outlook. there's so much uncertainty wright now i think the uncertainty is in large part about this question of whether or not the growth that companies -- that companies like adobe have seen are a result of that growth is really a result of a pull forward or whether it's a permanent

acceleration of a trend. and we just don't know a lot of that is something that we're going to have to see over the next six months, carl. >> yeah. we should also tell our viewers about the revenue projection that's really responsible for the selloff today, jon looking for 2022 revenue 179, street was 182 that's a very marginal miss. and cramer's point this morning was that maybe some were looking at the high side of the range of estimates. and selling in what jim called a panic. he will, as you said, have the ceo on tonight but warned this morning investors against getting too nervous about that outlook. >> this is not a bombastic company or bombastic ceo, so you wouldn't expect adobe necessarily to in an uncertain environment be too out there perhaps about projections. so that is to keep in mind of course we will want to see what he has to say specifically about the quarter. we did talk to him on monday and part of what they are doing in the creative area of their

business is this adobe express move which is bit more onramp into the creative products, but we talked about metaverse, to the degree that you believe a metaverse is going to be overall a big opportunity. adobe's digital creation tools certainly play there, but also the experience part of adobe's business has to do with the buying process, digital buying, carl, and omni channel so this isn't just a creative play, it's also a play in changing how businesses operate and how retail works and you know, we'll see how much of that plays into the guide as well. >> yeah. meantime, our next guest says the crash is already here, it's just not being evenly dr distributed. look at apple versus paypal. indexes at record highs. apple is up 24%. and yet recent ipos, arc funds, high multiple companies down sharply. joining us this morning, kraft ventures co-founder david sacks,

early investor in a firm, facebook, lyft, open door, palantir, you name it, spacex, twitter just to name a few good to have you welcome back. >> good to be here thank you. >> what do you think is the delineation between names that are getting punished and those that are not, on a relative basis. >> i think it's mostly about whether their growth stocks and how long dated they are compared to value stocks. obviously if it's straits going, they're worth less in the present. so that's basically what's been going on if you look at kind of the performance of growth stocks over the last five or six weeks, they kind of hit all-time highs around november 8th. that was the day that you had, you know, at least three fed governors make hawkish announcements about rate increases in response to a inflation print much higher than expected we've been told by the administration that inflation is transitory it's more persistent that was

expected so as a result of that, the market has been trying to price in these rate increases for the last five, six weeks and that's really hurt gross stocks so from where i sit in silicon valley, we're investing in the most growth of growth stocks invested in the most long-dated companies. the companies that have their earnings in furthest in the future and so as a result of that there's been sort of a trickle down effect from the public markets to i think gross stage investors and we're waiting for the vc market to find a new level. >> right do you believe that some of the growth drivers have truly dissipated because we are exiting a so-called covid era hopefully in the near future or what's durable in the way a growth drivers and also i should point out, the bond market is not completely convinced the fed will be as hawkish as they communicated yesterday >> yeah, it's interesting. we had a rally we basically had a huge relief

rally yesterday in the second half of the market i think there's two reasons for that one is just the fed finally provided some certainty. and it was in line with what people were expecting. but the other piece of good news that we got frankly was that the bbb, the build back better bill has been shelved until march the last thing we really needed in this inflationary environment was sort of pressurizing the situation. so, i think the market kind of got what it wanted to hear yesterday in terms of finally getting some certainty out of the fed that was in line with their expectations and then we finally got some good news out of washington. i mean, in terms of the economy itself, there's a lot of strength there the fed, you know, predicted 4% gdp growth next year i don't think we have a problem in the real economy from where i sit right now. it's just been a tremendous amount of uncertainty created by policymakers in washington having this huge fiscal expansion. a lot of new taxes

there was rates -- there was a lot of uncertainty coming out of washington i think if policymakers would let things settle down, i think you know, next year could be a good year for the real economy. >> david, it's so interesting to me that certain stocks that really got a bid during the pandemic have come down almost to the level where they were as the pandemic was just beginning. i'm thinking about zoom and peloton in particular. i think you mentioned paypal but at the same time i look at samsara came public just yesterday, healthy valuation i think many would argue around 11, $12 billion. and no big ipo pop no problem with that and it's trading so far evenly today. what does that tell you perhaps about what was in the market before when we saw these wild fluctuations now getting worked out? what's healthy and what's not? >> yeah. it's interesting so, from my point of view, the same things that were -- that

always invested same things, which is business offer sas. b 2 b software that's moved to the cloud often has go to market motion where you appeal to the employees of the company and let them sign up i'm investing in the same things i always invested in the only things that changed are the price levels you know, last year you saw a.r. multiples get to a really pretty insane level you saw i would say almost the norm was 100 times arr just two or three years ago i would say 20 times arr was much more the norm. what you really have seen now is you call 30, 40% correction in the gross stocks including sas which i invest in. and now the markets will reset a little bit and we'll find out what the new price levels are when the deals are done over the next few months by top tier films. i would say for me it's not like what i invest in as changed but the price levels have changed.

frankly, you know, the thing that i find disturbing is the extent to which all the investors i know are now macro economists i mean, every investor i know in whether real estate or venture or crypto or what have you, the only thing they're talking about is the macro picture of interest rates and what we should be talking about are the company we want to invest in or the building we want to buy or which protocol makes sense we've all been turned into macro economists by all the uncertainty coming out of washington it would be good if policymakers would just leave things alone now and let the economy do what it does best >> david, let's pivot over to ipos and wall street speaking of individual companies, reddit the social media platform at the heart of the stock frenzy confidentially filed to go public the company was valued at more than $10 billion after a funding round back in august now, david, i know you were an

early investor in reddit i'm very much looking forward to seeing all its financials in that s1 filing when we eventually get our hands on it but i'm wondering what you think about this timing. this is a company that's been around for a while why does it make sense to do it right now? should they have done it a year ago at the peak of that stock frenzy >> well, you know, what i always tell our portfolio companies is that you raise money when you need it. and you know, the value liquidation levels and what the pricing will be will ultimately be determined by the market. don't worry too much about trying to time those types of things focus on what's good for your business if it makes sense to raise money, if it would be helpful to become a public company, you do that and weather the market conditions sometimes you'll have tail winds and sometimes you'll have head winds but you do what's right for the business. i think with reddit, they can go public they're work on building out their advertising and revenue.

this is one of those sort of social media companies that people always said, oh, they'll never make money no one wants to advertise against inventory, the content is too raunchy or racy there was this idea it would not monetize what they have proven over the last few years is they can sell advertising against that mass amount of traffic they had i'm an investor in the company but i'm generally bullish because reddit is such an enormous site. i think in terms of traffic, it's one of the top five sites on the internet. so, yeah, i'm generally bullish. i think the reason for them to go public is because it makes sense for their business now >> finally, david, i wonder, you talk about washington and the uncertainty over fiscal policy and tax policy what's your take on how they've communicated regulatory policy and whether or not they're getting in the way of efficient capital structures or do you think that they've been responsible in trying to keep up with the innovation we've seen over the last few years?

>> well, one of the areas i'm concerned about regulatory wise is m & a i think that some of the pronouncements you've gotten out of the doj and the ftc they've really thrown a wet blanket on m & a activity and if you're sitting where i'm sitting as an investor in really the riskiest companies, okay, the part of the economy where we're expecting most of the best to become 0s and hoping handful of them will more than make up for that, there's really only two good outcomes, right the third is sort of bankruptcy. but there's only two good outcomes one is ipo, going public, maybe spac and the other is m & a. if you take m & a off the table, you really put a damper on the type of investing in risk capital that i do, the funding of any one with a good idea. and i think that obviously while m & a has not been prohibited, they've now created so much uncertainty that i think all of the big tech companies are at least afraid to engage in it

because we're afraid of their deal getting hung up in sort of regulatory scrutiny. i think what we need is a lot more clarity out of washington with respect to m & a and certain types of deals that can happen, tell us what they are. but otherwise, turn m & a back on i think otherwise will have a huge damping affect over again the sort of risk investing that we do that really paves the way for the next generation of great american companies >> david, it's a really good sign post for where we are at the moment whether it's valuations or policy we're very much appreciative good to see you again. thank you. >> thank you for having me still to come, we'll talk streaming, spiderman and much more with the chairman of sony pictures "techcheck" is just getting started. ♪ it's another day.

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julia. speaking of media giants this movie is expected to be the big biggest film of the year sony's next spiderman film expected to bring in $100 million in north america this weekend, the biggest opening weekend since the pandemic began joining us now is tony, sony pictures chairman and ceo. tony, thank you so much for joining us i know there's a lot of excitement for this film, but my question is, what do you think is going to happen both this weekend and over the holiday season with rising concerns about omicron. >> well, julia, if we only do 100 million we're going to be very, very disappointed. our sights are much higher than that so, let's keep our fingers crossed. but look, i think it's an unknown what's going to happen with the omicron variant but look, we've sold so many tickets in the pre-sale, we're guaranteed it's going to do really, really well both here and around the world

in fact, it opened in korea two days ago our two days ago, their two days ago and did very well. it was the biggest opening of the pandemic >> okay. i've seen estimates in the 150 million plus range but i guess one thing that's so interesting is this is an exclusive theatrical release that's the decision you're making for your films. but as you look into next year, what's your outlook for the future of theatrical movie going? do you think that you're going to be doing some simultaneous releases or shorter windows? what does movie going and theatrical releases have to look like in this new hybrid future that we're in? >> obviously we have to remain very agile about how we release films. but our focus is entirely on theatrical for our big i.p., such as spiderman, such as jumanji, such as many of the big films we have coming out denzel washington directory

project and michael b. jordan and next year, morbius uncharted, all the big films we have we're anticipated these will be only theatrical releases we do have a deal, by the way, with netflix as we did in our pay one deal where we are producing films directly for netflix. you will see some of that. our big i.p. will be theatrical. >> tony, what is the digital play here for the spiderman franchise? disney has disney plus, but you have playstation, thinking about ps5 and the popular game there my 13-year-old is very much into that do you see a lift around the movie engagement, the overall brand engagement and what else is there that specifically sony that gets a lift in the platform play >> well, you may have heard that we're very, very engaged with playstation with their ip. we have ten projects in the

works right now with playstation, using their ip, to produce film and television. the first will be uncharted. it's a very, very good film. i know you're all going to enjoy it with tom hollande also in spiderman and mark wahlberg released in february we're really looking forward to that we have nine projects both combined with television and film coming within the next couple of years. we also have a couple of projects we're working with playstation and with other parts of sony to develop ways to distribute product that we're not ready to talk about yet but you'll see some things happen over the next year in that range. >> tony, ann sar november of warner was asked about theatrical release have we thought about going back to day and date? sure, we thought about it but we made our commitments to the theaters, agents and talent. is that a widely-held view in hollywood right now?

>> no. i think with us it is -- it's a firmly held review with us i think every studio has been experimenting as to how to go about releasing their films. one of the things that people have not talked about i think julia, you and i talked about this very shortly a while ago is that piracy, when you put these pure films out on digital platforms, piracy becomes rampant. so, it's something you have to really be careful of that's something we're very concerned about. but look, we are again completely committed to theatrical for our big i.p we have 15 films scheduled for release between now and same day next year. and we're all in on that strategy now, will there be flexibility in how we move things around used to be when you scheduled a film, it was rock solid on that date not that way anymore

things move in the covid-19 impact will continue and we will be moving things around. we'll find ways to find the best place to release these films in the theaters we may hold things, move them forward, can't tell you how it's going to happen but we'll be very nimble, very agile. >> yeah, tony. i always think it's important to mention that your business is not just about movies and tv production, but you also have all of these digital plays as well and you've been pretty busy with m & a. you acquired crunchy roll, selling off international channels obviously there's been a massive amount of m & a in the media space in light of all that consolidation as we await the merger of discovery and warner media, what do you think is next in terms of media m & a? and what are you interesting in doing? >> well, you know, we for the last four and a half years we've been in the process of realigning our company to take advantage of the fact that we

know what's happening as linear viewing goes to streaming viewing. we are for lack of a better term the arm's dealer in the marketplace right now because no one else is selling the volume or product we are to all of the people who are fighting for subscriptions. we're also in as you know, we're also in the s-vod business which we'll be combining in the near future we have pure flicks, family and faith business we have sony live in india which is a massive -- today's numbers about 8 million subscribers. so we're going to be focussed on building new businesses and new communities of interest as we go forward. we're in the process of changing the tires on a moving car here, and it's been very successful and been working very, very well for us >> yeah, certainly a different approach being a supplier to the streamers and also those niche streaming option tony, thank you for talking to us today ahead of the big movie

release. >> appreciate. thank you. meanwhile, more bullish calls for the chip sector. jpm naming broadcom and kla top picks for 2022 at the same time, intel confirms it is planning to invest $7 billion in a chip plant in malaysia, intel up fractionally this morning "techcheck" back aft aiter b

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welcome back to "techcheck" i'm carl quintanilla request julia boorstin and jon fortt adobe and the chips the biggest laggards we have the downgraded dock cue sign as well bullish calls for uber and shock. a news update with rahel solomon. >> good morning. here is what's happening at this hour a massive pay claw back at mcdonald's former ceo is returning $105 million part of a settlement after mcdonald's learned that he lied at the extent of his misconduct on the job. those lies would have been

enough to fire him for cause back in 2019. housing shot up 20%. quadruple the growth analysts expected industrial production growing strongly last month. u.s. factories are busier than they've been since the pandemic began highest level in two years the bank of england has become the first major central bank to raise interest rates the move surprising many market watchers meanwhile, the european central bank left its key interest rate unchanged and said that it will continue to reduce bond purchases under its pandemic support plan. sharing of acensure hitting a new all-time high. the consulting giant posted strong quarterly results, raised guidance and says it will continue to spend heavily on acquisitions you're now up to date. jon, back to you. >> thank you and we mentioned sectors and stocks that have undergone a re-rating last few weeks fintech and the e-commerce ecosystem have been hit hard platforms like shopify and

paypal have seen a sharp pull back affirm and block formerly known as square down about 15, 20% joining us now to discuss if future of the space, founders fund partner keith, also now the ceo of open store, a roll-up of shopify businesses now valued just shy of $1 billion and sits on the board of affirm as well good to see you, keith talking about overall pullback but shopify is up around 15% for the year, affirm is about even from where it first started trading. but, yeah, as i mentioned, paypal and square down a bit is this a valuation reset or something more concerning? >> look, i think this is very straight forward when you raise interest rates or when there's expectation of raising interest rates it will change you're dividing by a higher number tech companies produce cash flow in the outer years and if you divide by non-trivial number the valuations are going

to change. nothing to do with the performance of these companies, as far as i can tell just a simple discounted cash flow analysis and basically nobody was discounting by any meaningful number until inflation kicked and obvious to everybody which means interest rates must go up. >> but certainly seems to be impacting some stocks more than others i mentioned shopify still up about 15% for the year i think that's also true of the adobe. even after the pullback after its earnings both of those have some play in e-commerce, you know, shopify especially but, there's also a broader idea that they're changing the game i guess you could say that a lot about some of these companies. what is the difference in the degree of the pull backs >> some is cash flow expectations how far out are the cash flows that are material, whether three years, probably sooner rather than later, some are further out in the future, more high growth, very high-tech companies where a lot of the

profits are five, ten, 15 years in the future. that may count for some. obviously micro performance. there clearly are some stocks, some companies, some equities are going to outperform others but if you look at the facts, some of the best-run companies that i'm familiar with, doordash has been significantly affected, square so i don't know exactly what's driving the outcome versus beta, but if you just did the discounted cash flow analysis per company get to 80% of the right answer >> you know, keith, you mentioned shopify. i want to get you to tell us about your new roll up of shopify merchants open store just hit $750 million valuation. what's the opportunity that you see there over the long-term and how is this different from what we're seeing in the roll-ups of amazon merchants with companies such as thracio. >> the last decade the most

impressive tech story other than spacex is shopify. it's constructed 150 to $180 billion company right down the middle of the sweet spot of amazon, betraying this myth that amazon has all this monopoly power. shopify created a direct competitor doing better than amazon so the biggest trend is building a new vibrant entrepreneurial endeavor i looked at that and said, wow great there's this macro trend of everybody starting a business on shopify well, guess what, only small fraction of the businesses are going to be explosive enough for venture capital, like my day job. one out of every 1,000 may be, two or three public companies built off of shopify but the average entrepreneur starts a business on shopify sells less than $10 million of sales, it isn't exploding and they don't have access to debt

so those entrepreneurs have two choices, run the business forever, decades, or they have sort of no option for liquidity. i said, guess what we'll create options for liquidity, use data to underwrite, same day, give people an offer. when ever they decide the entrepreneur, proprietor, the founder decides he or she no longer wants to run the business, we'll give them liquidity and buy them out that encourages more people to start businesses on shopify. they don't have to wait for some generational transfer like their son or daughter taking over the business or they don't have to commit the rest of their lives to something. that's the most important thing. compared to amazon startups, amazon, 13, 14 or 15 all trying to do financial engineering new age private equity, basically we'll buy low, and sell high with the market being at its height six months ago, there was

an arbitrage opportunity between even us they can acquire businesses on amazon and what they hope to trade at. i think that arbitrage opportunity has been materially compressed >> keith, on a separate note, reuters has a piece out this morning citing sources that the consumer financial protection bureau is going to demand that buy now pay later firms give more detail about product offerings, how they use their consumer data. i wonder if you think the sector will come under pressure to provide more transparency in general? >> well, in general that may be true i'm sure that a firm is at the cutting edge of the transparency movement we've been very collaborative with various regulators over the years. i think we provide more transparency than any other instrument you could possibly use. i'm comfortable with increasing regulation in this particular case the rest of the sector may see issues and challenges. >> i would be curious to hear your thoughts on reddit knowing

you were on the board there for many years as we look towards that ipo, what do you think the biggest risks are. do you think it's about reform of section 230 and the platform being held accountable for more of the content that happens on the platform what should investors be watching out for >> i think reddit is a great company, under the radar and now maybe people in the public markets and the rest of the world will appreciate reddit it's been this, you know, larger audience than for example twitter for five, six, seven eight years, but nobody was giving us credit back when i was on the board so fundamentally i think people will appreciate the value of reddit, which is unique content across any vertical. so whether you're into equities, whether you're into politics, whether you're into the buffalo bills or the dallas cowboys, the best possible content you can find anywhere is on reddit and so i think that is the magic of reddit. now, from a regulatory perspective, i don't believe there will be significant changes in the section 230

liability. i think there's too many important companies and too many consumer exper teegs protections that 230 affords i think there's a lot of noise around it, but in practice no one is going to come up with a better idea that's going to attack the last 20 years of american history >> interesting a bet on congress barking more than it bites. that often pans out. >> wouldn't be the first time. >> for sure. keith, thank you >> pleasure. little more on fins ttech i talked to ken lynn yesterday with this month the one-year anniversary of the closing of $8 billion deal to buy the ompany you might not remember those two companies announced that deal right as the pandemic was hitting the u.s. in 2020 today, credit karma is doing more than $1 billion in annual revenue and highlight of intu with it's most recent earnings behind the scenes as the pandemic was setting in, many people advising lynn thought it

all would fall apart but intuit called ken, assured him that they would honor its commitment and ken trusted him. >> at that point had been relatively new in the role just taken over the ceo role within the last two years. but they spent the last year and a half of those two years building trust and rapport and relationship before we ever entered into the agreement so i think that was hugely impactful and i think -- not i think, when i had that conversation, that direct conversation and his, you know, adamant re-enforcement about this is what we're doing, i felt really good about it now, i'm sure my board when they heard me say, oh, you're being naive and what else will he say? i think to your point around trust, i mean, that certainly comes into play. and i think the other thing about these really hard decisions, yeah, it's not data

it's got it's trust and principles and values. >> yeah. data can't solve every problem you can watch the full conversation on "techcheck's" twitter page at cnbc "techcheck" or on our linkedin page. julia, these pandemics and upheaval that have real impact behind the scenes on whether deals get done >> yeah. the drama of deal making it's all about the interpersonal relationships and the conversations increasingly happening on zoom although we'll see if they start to happen more in person again. now coming up, closing arguments kicking off in the trial against elizabeth holmes we will take you live to the courthouse do not go away you don't want to miss it.

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is the latest battle in the streaming wars this one is not about competition between streamers but between content owners and carriers in the battles over fees youtube tv's deal with disney is set to expire friday night youtube warning subscribers they could lose access to its 18 disney-owned channels, including espn, fx and abc both their live

and their on demand content. now, that's a big chunk of youtube tv's lineup. in the streamer, which says it's an active conversations, does seem anxious about losing subscribers. saying it will lower the monthly price for its service by $15 to $50 a month for however long that the content is off the platform youtube saying in a blog post that subscribers could spend $14 a month for a bundle of disney plus, espn plus and hulu that offer sign up to get the same content directly from disney is exactly why this is complicated. content prices are high and suppliers are also distributors themselves so disney is saying in a statement that they are optimistic they can reach a deal, but analyst tells us he predicts youtube will give disney, espn most of what they want but he says that the long-term downward trend in viewership there could come a day when major distributors forego disney and espn and

disney would have to rely much more on its direct to consumer relationship we'll watch to see if those channels go dark tomorrow night, carl. >> that's a huge issue, especially given the fact that as more platforms arise, they want to keep whatever content, snl is a great example on peacock. some of the calls if they can't make dtc work profitably, there could be in the words of one firm earlier in the week, 30% downside it's real material nature to this dynamic. >> yeah. and the ceo made it clear going direct to consumer, owning that relationship is really crucial to his management and his plan going forward. >> yeah. fascinating. very complicated thing to understand in the media business right now. still to come, apple as you may know, delaying its return to the office but first, we ask leaders in our cnbc technology executive council summit to weigh in on where the biggest investments in

tech will be in the coming year. take a listen. >> changing an organization is like moving a mountain i think we have to change the education system. >> battery will be one area for sure quantum computing another one, getting few questions on there as well. >> for us, of course, cyber security is the main focus on how to stay resilient. >> cyberattacks. there were a lot of headlines made over the past year. and unfortunately we don't think they're going to be going away any time soon.

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♪ closing arguments in the trial of elizabeth holmes start today. scott cohen outside the courthouse as he has been for much of this trial scott? >> reporter: good morning, jon getting under way any moment now. the culmination of a trial that began at the end of august, elizabeth holmes is here along with several members of her family, including her parents. if you want to get a sense of how hot a ticket this is, these closing arguments, people began lining up here in san jose before 2:00 a.m. this morning. they're still lined up to get inside as this trial moves to a close. what we expect will happen today, first we will hear from the government, which will argue that elizabeth holmes knowingly lied to investors and patients about the capabilities of her blood testing firm theranos.

the defense will argue she was relying on her experts and believed in it she faces 11 counts, as you can see. they include two counts of conspiracy to defraud theranos investors and theranos patients and wire fraud, including investors the likes of henry kissinger, rupert murdoch and patients because of the flawed technology allegedly according to the government the juror, eight men and four women, will retire to the jury room with this verdict form, but getting from here to there is going to take some time. they have 13 weeks of testimony to sort through, hundreds of exhibits and including the testimony of elizabeth holmes herself was on the stand for seven days throughout this trial. so what we expect will happen the government will go first today followed by the defense. they will likely continue into tomorrow the government then gets a

rebuttal and then the judge will instruct the jury, which could get the case by the end of the day tomorrow how long will deliberations go well, that is anybody's guess. guys >> could it be fascinating to fo watch. we know juries like to wrap these things up before the holidays i'm curious to see how fast they come to an agreement thanks so much i really appreciate it as we head to break, check out at&t an upgrade at morgan stanley. they say the recent underperformance has attracted risk reward opportunity and i guess it depends how you define recent take a look at the five-year chart. it's down 23% and the s&p has doubled in that time period and it is up 6% in the upgrade we're back in a moment are you asking if i'm 85 years old? i mean sea turtles live to 150,

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welcome back apple, as you may know close temporarily closing three stores locations, a story in annapolis and store employees will take covid-19 tests and depending on the results, a re-opening could be postponed at the same time apple is delaying its return to office plans indefinitely while giving employees $1,000 to buy home office kim, john we talk about pc sales and what the trajectory is for 2022, don't discount it out yet.

>> that's true carl, i wonder whether this is ripping up the playbook or if this is the new playbook we've talked a lot about what's going to happen with omicron, julia, and i think a question is do businesses figure out ways to operate despite the pandemic or do they shut down and stop operating? more and more it seems like companies are figuring out ways and using the pandemic playbook versus ripping it up, but we'll see. >> yeah. this is the new normal figuring out new solutions and flexibility. i think it is hard to plan ahead. i've seen so many companies cancel things, cancel meetings, people getting sick just in the past couple of days and there's a sense that we still don't know, john, just how bad omicron will be and what implications there will be for a holiday wave. >> yeah. we have cnbc's eamon javers next so let's do one more thing now maybe j. lo should watch out

h and r block is suing square for trademark infringement block competes directly against h & r block in an area including tax filing and debit cards and the company cited a number of its marketing campaigns including it's better with block, block has your back and make every block better. here is the new block logo not very green, but here is the website for cash app taxes, h & r block is objecting to the green square on the top left which they say is too similar to the green square logo of h & r block. we have reached out to block for comment. up here next on "tech check. we call it the g block no word on whether jenny from the block is also reenthated with infringement. we'll be right back.

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we continue to follow the story of the j vulnerability, a massive security flaw that could in the words of one expert haunt the internet for years eamon javers just sat down with the director of cybersecurity and infrastructure security agency and joins us now. eamon? >> john, this was the first time that jen easterly sat down for

an interview since this became public last week and what she had to say was concerning. take a listen. >> the law for j vulnerability is the most serious vulnerability that i've seen in my decades-long career everyone should assume that they are exposed and vulnerable and to check and make sure that they're not vulnerable >> she calls it the most serious vulnerability that we have seen, and reminder that includes stints at the nsa and also at the u.s. army, posted in baghdad, setting up u.s. cyber command. this is an official who has seen a lot of vulnerabilities in her time and she is calling this one the most serious i asked her what to expect and what they learned about it, and here's what she said >> my view is we are going to see widespread exploitation that likely impacts on both private and public infrastructure. we're doing everything we can with our partners to get ahead of that, but we will be dealing with this vulnerability, eamon,

for a very long time this is not something that will be patched and finished. this is something that we are going to be working on likely for months if not years. >> a lot here for corporate america to worry about back over to you. >> powell said as much yesterday. good stuff, eamon javers it's time for the half and the judge. >> carl, thanks. welcome to the "halftime report." i'm scott wapner front and center will the post-decision rally prove to be short livered? some action in the market today is very interesting towards that question we will ask two great voices on that issue tom lee, altimeter's brad gerstner they'll be along momentarily and first welcome in the investment committee, joining me, kari firestone, jim lebenthal, josh brown and jon najarian of market rebellion. the nasd