good morning, what a reversal the pullback in tech stocks yesterday and set to continue this morning after the nasdaq posted its worst day since september after a big day in the opposite way the prior session we'll show you what's moving right now. covid surge, new york city's positivity rate doubled in just three days and the cdc issued new guidance on vaccines dr. anthony fauci will join us live to weigh in fed ex shares are higher after better than expected earnings signs that the labor shortage i easing it's friday, december 17, 2021

wow. it's almost christmas. "squawk box" begins right now. good morning, everybody, welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. and as joe mentioned, yesterday was an interesting day for the markets. you did see a big reversal for tech, it was down by 2.5%. the other averages were down too but the s&p down by less than 1% and the dow down fractionally. you can see that same thing happening this morning with the dow indicated down 18 points, s&p by five and -- you have treasury yields sitting with the ten year at 1.422%. we haven't seen treasuries move as much the last week but quite

a bit of activity in tech stocks brian was making interesting points about how there could be tek a technical things at play with options expiring >> absolutely. we'll give you an update right now on what is becoming a massive surge of covid in new york and new jersey. from december 9th to december 12th, the percentage of positive tests in new york city spiked from 3.9% to 7.8%. cdc data shows 13.1% of cases in the region, including new york and new jersey, are omicron. that compares with the national average of 2.9%. but it is raising lots of questions among businesses many of which are now sending employees home and the like. separately the cdc recommending that pfizer and moderna's covid vaccine should be used over j&j's for adults after finding that 54 people developed a rare blood clot

condition. all of those patients were hospitalized, nine died. in a stautement last night the cdc said the united states has an abundant supply of pfizer and moderna and should use those the u.s. has administered more than 17 million j&j doses since the emergency use authorization was approved in february and in just a little bit, just in moments, actually, dr. anthony fauci is going to join us live right here we're going to talk all about the surge. if we thought what was happening in south africa and europe was going to happen here, we have been mistaken because it's been happening here and maybe more so shares of fed ex, the dow transport are higher, earnings and revenue beat estimates the company announced a $5 billion buyback program as well and reinstated the original forecast for 2022. it lowered in september.

fed ex said it incurred more for higher staff wages, overtime and the costs were centered in the ground department. the company said it expects the labor shortages to subside it recently fielded 111,000 job applications in one week for hourly positions >> i know it well. know the ground division because it's at my house preyoutty ofte with the deliveries from ecommerce. >> they call come. >> they do. >> they drop it and run. because there's a -- >> there's a lot to do, that's why. >> there's a couple of animals if they got out, i don't know what might happen. >> oh, your house. i had a nice conversation with my guy. >> when they leave, the two dogs think, see, we bad then they're going to do it next

time because they think it works. >> so somebody needs to stand up to those dogs and show them who's who. >> come in the house and say back off. >> no thank you. >> wedon't want that we like it the way it is >> check out shares of rivian this morning, they're falling sharply after the first quarterly report since going public in early november it would fall a few hundred vehicles short of the 2021 production target of just 1,200, it blamed supply chain issues and challenges ramping up battery production the revenue was in line with expectations and confirmed plans for a new $5 billion plant in georgia expected to come online in to 24 shares are down about 10%. we'll talk to georgia governor brian kemp about the planned plant in georgia. when we come back, dr. anthony fauci will join us to talk about the spread of the omicron variant. the rise in case counts in this

country and the new vaccine guidance from the cdc, which is pretty important, especially if you're somebody who's already gotten a j&j shot. tomorrow is super saturday, one of the biggest shopping days of the year. one of the last times to really get out there. this is the last weekend ahead of it. what to expect at the malls, the big boxes and department stores. "squawk box" will be rightac bk. ♪ ♪ cases of anxiety in young adults are rising as experts warn of the effects on well-being caused by the pandemic. ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪

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it is crunch time for the retailers. tomorrow is expected to be one of the busiest shopping day of the year courtney reagan joins us with what hey're pre pairing to do for that. >> reporter: tomorrow is super saturday it's expected to be the second busiest day of the year for stores because of the last weekend before the christmas shopping this is according to sensor mat you can solutions. shipping deadlines have passed for retailers including nike, in order nordstroms they expect 148 million americans will shop on saturday. that is down from 150 million last year but up from 147

million in 2019. and the group now forecasts holiday sales will grow 11.5% over last year, according to the retail sales figures that we have so far this year. and a record number of americans, 42%, will buy their last gift before tomorrow. shopping much earlier this year. a lot of super saturday shoppers coming out will do so in store, a quarter of them. a third will shop online, even with the tight shipping windows, 41% will do both some using services like target's drive up or pick up options in store for online ordering but same day pickup target has shipped the delivery service that it owns it said it grew 500% -- i'm sorry the drive up grew 500% last season and the shipped grew 300% it does own shipped but shipped also operates for 120 other

retailers in 5,000 cities. and shoppers use these type of offers much more as the days get closer to christmas. >> see the back half of december our daily orders that we deliver are double what we see the first half of december >> reporter: adobe says that so far this season, 21% of online orders have been picked up curb side for retailers that offer that option but predicts it will peak around 40% on december 22nd and 23rd becky. >> crossing my fingers i think i'm done, unless there's anything i've forgotten. thank you. >> reporter: nice job. >> i probably forgot something but i think i'm done we'll see. thank you, courtney. coming up right after the break, the pandemic update case counts are rising as omicron variant spreads in the u.s. will covid cancel christmas? dr. anthony fauci is going to join us here on "squawk box" live after the break

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welcome back to "squawk box. this morning the spread of the covid-19 omicron variant now picking up in the united states. joining us this morning to share his thoughts on what we can expect in the coming weeks and months is dr. anthony fauci who, of course, is the director of the national institute of allergy and infectious diseases as well as adviser to the president. dr. fauci, thank you for joining us it's great to see you on a day where the news continues to get worse. help us with this, so many business leaders, owners are watching us this morning, especially in the tri-state area where the numbers continue to

surge, by some estimates by next wr week, the positivity rate could pass 20%, possibly 30% by christmas. do you believe businesses should be bringing workers into the office place and what do you do about environments where people can't wear masks, restaurants and the like >> those are difficult situations first of all, you're right we are having a surge, both the delta surge, the delta variant but also we're having a rather substantial increase in the percentage of the new omicron variant. which has the unfortunate capability of spreading very, very efficiently with a doubling time of about three days so the recommendations are what we've always said. we've got to get the unvaccinated people vaccinated and boosters really help very, very much in protecting you against infection but particularly against severe

disease that might lead to hospitalizations so if you're vaccinated and not yet boosted go get boosted and with regard to how you go about your daily life, you have to abide by the recommendations of the cdc that when you're in an indoor setting, a congregate setting, where do you do not know the status of vaccination of the people around you, to wear a mask in that indoor setting. that's the best we can do. unfortunately we have so many people in this country who are either not yet vaccinated at all or who have not gotten boosted and we have got to get those people vaccinated. >> doctor, given the breakthrough cases and what we've seen about the lack of efficacy without the booster, at least, do you think the cdc at this point should reclassify the definition of what it means to be fully vaccinated? i ask because as you know, many restaurants and public spaces in many parts of the country, as long as you're, quote, fully

vaccinated you can be indoors without a mask and what kind of message that sends and what the health implications of that are? >> that's certainly on the table. right now it is a bit of semantics in that fully vaccinated for the purpose of the regulations and requirements that people have as to be what are you considered as being fully vaccinated, but there's no doubt that optimum vaccination is with a booster. whether or not the cdc is going to change that, it's certainly on the table and open for discussion i'm not sure when that will happen i think people should not lose sight of the message no doubt if you want to be optimally protected you should get your booster >> the cdc is now recommending, effect i iv effectively, against the j&j vaccine or at least favoring the pfizer and moderna vaccine do you think it was a mistake from the beginning to recommend

the j&j vaccine given what was clearly the lack of efficacy relative to the others, and now some of the other troubling aspects that we've learned >> the shift in the change right now that occurred yesterday regarding a recommendation of a preference for the moderna over j&j really was nailed down by the very recent data that there are more of these adverse events than was originally thought. still, one can use the j&j but with the cdc we're saying when you look at the overall data, particularly taking into account the safety data with regard to adverse event that if you had the choice, favor the mrna. >> as you know, we are in holiday season there are parties. you talked about getting together with your family during the holidays

you recommended testing and the like at what point would you reassess that and how would you think about holiday parties, even those tested in environments and areas, as i said by next week, if you do the math, new york could be in a place where the positivity rate could cross 25, 30%. >> well, you've got to just take things one step at a time and look at how things evolve. obviously if you are vaccinated, your family is vaccinated, you have friends who are vaccinated and hopefully also boosted you can still enjoy a social gathering generally in a home. you have to be careful when you go into large, public indoor spaces where there are a lot of people there that's the reason you should be wearing a mask under those circumstances. but you have to follow what's going on if the counts keep going up and the test positivity keeps going

up we may need to be more restrictive. but for now people who are vaccinated and boosted people should feel comfortable. the risk is never zero that's for sure, under any circumstances. >> you said you would be forced to reassess if the numbers go up at what level, if you hear that it's -- the positive rate is 25% in a particular -- or 30%, does that change? >> you know, i'm not going to give you a number. i think you have to look at all the different factors. you have to look at people who are getting infected you have to look at the seriousness of the infection, the rate of hospitalizations all of those things you look at when you make a determination about how restrictive you are going to be. and those things just rollout in real time and you take it step by step. i can't give you a number now and then all of a sudden that becomes the set number and i don't have any real scientific data to feel very comfortable about a set number

that's the reason i don't want to give it to you. >> the j&j news is kind of a -- it's troubling and it's just -- in terms of the vaccine hesitant, the messenger rna vaccines have been given to billions of people the speed with which that technology was developed and the safety profile that we know so far is staggering and the adaptability of the vaccine itself to new mutations. it's amazing i don't know, someone needs a nobel prize, obviously maybe they already got one. >> they will get it probably >> can you think of any type of disease pathology where we just don't know if there's a -- an effect a year from now or two years from now it has a very short half life, the messenger rna is gone. but can you think of any way we just don't know whether there's something that we might say about messenger rna, six months

from now, a year from now, because i think that feeds into the vaccine hesitancy that we're still seeing. >> it would be unprecedented to see somethingsix months, a yea from now associated with any vaccine. we've never seen that. usually you get reactive which occurs 24 to 48 hours, and then there are adverse events, almost all of the adverse events occur 35 days at the most. the idea of having an unexpected adverse event occur six months or a year later -- nothing is impossible but that would be unprecedented if that occurred. >> you want to ask you how you think the -- where you see the incubator for these new mutant strains. we had one very smart person, i know you know len, he talked about the south african variant,

which there are immunocompromised people there one that had covid for 156 days but no real umi immune system so just in that gentleman 56 mutations. is that how it happens or is it millions of people as the virus is able to jump from person to person individually is that where the mutant strains come or from both? i guess what i'm getting at, people without immune systems we can never make sure. we could vaccinate them until we're blue in the face and they can generate a mutant. >> i think the answer to your question is both the number of mutations and substitutions that are seen in omicron is really rather unprecedented to get those many, and particularly that profile of mutations, some of which are really very unusual. it is more likely, although we

don't know for sure, that that's exactly what happened. that the virus got into a person, you usually clear the virus from the body within a period of several days if your immune system is severely compromised, it gives the virus the opportunity to continue to reply careplicate ia person when you give it the ability to replicate with a little bit of pressure on it to the extent that an immune compromised person can give that pressure, that's how you get that very large and complicated constellation of mutations that we see with omicron. that is the most likely scenario about how that happened. although there are some other theories, but that's the most likely. >> dr. fauci, we've been thinking that maybe omicron is not going to be as deadly as we've seen with some of the others but it does seem to

spread very quickly. the numbers that the cdc released yesterday were sobering the idea we'll get 1.3 million additional cases of covid between now and christmas but the number that concerned me more was we could see something like 15,000 deaths a week starting january 8th that's the expectation is that because we think omicron may be worse than anticipated or is this delta variant we're still dealing with in terms of the severe outcomes? >> that's a good question. the data we have from south africa gives no indication that omicron is more severe there is some suggestion and it really is only a suggestion, that it might be less severe and the reason that that is suggested is that in south africa, when you look at the ratio where there are the most cases, if you look at the ratio of hospitalization per number of cases, it's lower. the duration of hospital stay is

less in number of days the requirement for oxygen is a bit less that could either be due to an inherent lack -- not lack. but an inherent lower virulence or lower pathogenicity of the variant. or due to the fact that 80% of the people in south africa have been infected with beta or delta so when they recover they have a considerable amount of protection against serious disease. so that's the issue. one of the things we have to be careful about, if you start assuming, and it really is only an assumption that it might be less severe in general, that can be completely overrided by the fact that it is so extraordinarily transmissible, that even though you have a less of a percentage of people who would get hospitalized, when you

have a larger number of people getting infected, the total amount of hospitalizations is going to be more, and that's just simple math >> the reason i ask is i'm trying to figure out and gauge how concerned i should be. i've heard of a lot more people in the last week fully vaccinated and boosted who have gotten covid is this -- >> right >> -- a situation -- >> what we're hoping -- no that's a very good point we have to admit we are seeing a lot of breakthrough infections there are a number of reasons for that one there's waning immunity, which is the reason why we strongly recommend that when people are eligible to get boosted that they get boosted. that's for sure. the somewhat encouraging aspect of that is that when you're vaccinated and boosted and you get a breakthrough infection, the likelihood of your getting seriously ill is very, very low. not zero but it's very, very

low. >> dr. fauci, the white house was asked about a week ago whether effectively the government should provide free antigen tests, something many other countries in europe has done the white house scoffed at the idea i know they have pushed for insurance companies to pay for it do you think that's a mistake? do you think that the government should be providing tests for free >> yes, and there are. there are a lot of tests that are for free obviously some of them are, quote, reimbursable. but there's a distribution now of millions and millions of tests that are going to be available at various community and health centers that they will be truly free where you go in and get it. also i think it's not appreciated that the government has invested several billion dollars to make 200 million to 500 million tests available per month. that's a lot of tests. i don't think you can say that the government scoffed at the

idea about free testing. we are providing free testing, actually >> i'm wondering for where we should expend the most energy, i guess on both, on a universal vaccine for all coronaviruses that would be great. but then i think about therapeutics and whether there's a way -- there's not that many genes in the coronavirus genome. what do you estimate? there's 20, isn't it >> it's 30 kilo bases. 30,000. >> how many would that account for? >> i'm not sure exactly what it is i don't want to take a guess. >> it's not that many. how would you do it. if you were going to develop a universal vaccine for all coronaviruses, how would you -- does it have to be a surface protein that mutates quickly or would you be able to target it

against one of the essential genes in the actual -- the way that the virus works >> we're looking at -- no. we are looking at all aspects. we're looking, obviously, very heavily at the spike protein, which is the most important but there are other proteins, nuclear proteins, there are a number of proteins that are being looked at as targets that is a major priority for us to develop a pan coronavirus vaccine. in fact, i wrote a paper on that that came out in the new england journal of medicine just a few days ago, describing the importance of that so i'm pleased that you brought it up, because it is a very high priority because we know from history -- >> go ahead, i'm sorry. >> we know historically we've had three outbreaks of pandemic or potentially pandemic coronaviruses in the last 19 years. from 2002 with the original

sars so we really are absolutely compelled, i believe, to make a pan coronavirus vaccine, which we are working on. >> seems like you can develop a therapeutic for one of those essential proteins that works in all of them and is conserved. >> that's a treatment. >> right and? >> that's a treatment. we don't want to get the audience mixed up about a vaccine or treatment but you're right -- >> what's easier to develop? wouldn't that work, you can take a bill if you got any of them? >> well, yeah. you know, you can say before you do it what is more easy than the other. the easiest one is the one that you make it. if you're successful all of a sudden it becomes easier >> do both. >> we're going to do both, absolutely >> dr. fauci, a lot of folks are getting on paraphairplanes or pn to get on airplanes the next

week or two. they'll be asked to mask but given the transmissability of omicron, does it change the dynamic. a lot of people get on the plane, wear a fabric mask. does that even work? >> no doubt that fabric masks work there are different grades of masks that have different degree of capability of keeping out aerosol and droplet particles. obviously the n95 is the best one but they're uncomfortable to wear, not a lot of people wear them but a regular surgical as well as a cloth mask is fine. >> finally, would you jump on an airplane >> would i if i had to, i would have no problem getting on an airplane i'm vaccinated, i'm boosted, i know we have to wear a mask on an airplane. you wear a mask when you get to the airport. i do not have, given my state

and what i do, i'm sort of locked in here in washington d.c., so i have no intention of getting on a plane, but if i had to, for family or other reasons i would not hesitate to do that. >> i have one more thought to ask, because i -- i'm looking at omicron and i'm hoping it's one of these situations that we've seen in the past where as the -- as we go forward it gets less and less virulent and people say we're going to seie covid endemic. and something that happens again and again. the difference between delta and omicron, the stigma of getting covid is still there if it becomes a much less severe disease, should we be -- say the next one after that where it really is just like the flu at worse, do you think we'll still be talking about possible lockdowns and all these things we now -- because of covid, do we ever make the switch to wow

this is something we have to live with and we can't close down and not have holidays and do all these things with a much less virulent form of covid? >> sure. i think that's entirely conceivable. as it evolves, you're going to see a situation where we adapt to it in the sense it becomes less severe for the population we hope that's the case. that could possibly have happened many, many years ago with the original coronavirus that's our common cold coronavirus. that perhaps many years ago, they were pandemic viruses which as things evolved over many years they finally got into a situation where they were merely relatively insignificant common cold viruses. that is conceivable that that ultimately happens with the pandemic we're going through right now. >> dr. fauci, i wanted to ask you about vaccine mandates, in part because it continues to be a national debate. dr. scott gottlieb, comes on

this program regularly, and one of the things he has said repeatedly is he believes it's possible those mandates have become counter productive not just towards getting people to talk the vaccine today but what it does to the psyche of americans around taking other vaccines in the future d do you agree with him? >> no, i don't think where i got ha i know scott well. he's a good friend i'm not sure what he's referring to mandates, a radio active word, requirements people tend to respond better to that they work. if you look at companies like united airlines that require their people to get vaccinated, they're about 99% vaccinated the federal government, federal workers, we have about 97% vaccinated, 99% compliance one of the problems is we're never going to get out of the outbreak if we still have 50 million people who for reasons that are still very, very difficult to understand, refuse

to get vaccinated when you have a virus that's killed 800,000 americans and caused 50 million infections if people do not want to get vaccinated, sometimes you have to, for the common good, make requirements >> dr. fauci, thank you so very much if we don't see you, talk to you before the holidays, have a great holiday. we hope to see you soon. stay safe. >> thank you, you too. have a good holiday. thanks. >> thanks. when we come back, kellogg has reached a tentative deal with its striking workers but that doesn't mean the strike will end workers rejected the previous deal we have the details on that next later don't miss new york fed president john williams. he's joining us in an interview at 8:30 a.m. eastern time. a lot to talk to with him. as we head to break let's look at yesterday's s&p 500 winners and leaders.

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back to "squawk box. live from the nasdaq market site in times square. checking the futures this morning. you can see that the dow jones is up but the nasdaq is continuing its pullback from yesterday. prior -- the day before that had a big gain really wondering what changed yesterday and once again, 2% here, 2% there, does not a trend make and we won't know anything about jay powell or how we're doing with inflation or whether we're able to land this plane safely in terms of the fed. we won't know that for a long time but boy, that was a setback yesterday, becky. >> if you were going to blame higher interest rates and the fed's action you would have expected this to happen two days ago, on wednesday when we heard the decision that was the day the stocks took off, you see it bpulling back again today.

but it's only off 4% highs. >> yesterday it was rates are going up, these are tech stocks let's buy value. >> which is why it makes sense when brian sullivan talked about the idea there are expiring options, people were on the crowded side of the trade on this, and maybe that's why it's playing out this morning this way. >> you see 400 points on the nasdaq -- >> it catches your attention >> but remember we're getting so high it takes more points to be significant on a percentage basis. that's the other thing, we've climbed so high so quickly maybe our brains haven't adjusted points to percentages. i struggle with that. kellogg said it reached a new agreement on a five-year contract with striking workers but, of course, the company has been here before early last week a majority of its workers voted to reject a proposed five-year contract. after that vote kellogg said it would hire permanent replacements for the striking workers. the new tentative contract addresses workers' issues and

has new health care and retirement benefits. the count is due on tuesday. a major development in the bankruptcy settlement for purdue pharma details after this. and later nelson griggs joins us with his expectations for 2022 also a remainder you can watch and listener to us live any time on the cnbc app mployees need something different. oh, we can help with that. okay, imagine this. your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, like asap! so basically i can pick the right plan for each employee. yeah i should've just led with that. with at&t business. you can pick the best plan for each employee and get the best deals on every smart phone.

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a judge has thrown out purdue pharma's $4.5 billion bankruptcy settlement. i'm smiling a little, andrew, because i'm knee deep in "dopesick" and i feel i know everything about this story and it's like, wow it's still going on and i see the actors as the people that were in charge how great is michael key aton >> it's extraordinary. he's one of the greats really extraordinary >> it's so good. anyway, the oxycontin maker declared bankruptcy after thousands of lawsuits claim it pushed doctors to prescribe the opioid oxycontin we know now 10 milligram but if you get break through pain you need 60

how can you get real relief with only 60, let's go to 120 or 240, that's the way it happened how much do the purdue -- how much does the family still have, sorkin it's 5, at least >> oh my goodness. i'm not worried about the sackler family in the least. >> purdue is chicken. >> i'll get you their net worth in a second here >> andrew -- becky, have you seen it? >> i haven't i read about it. >> how did you like where they go to seie comey and he says what's this about chicken? >> they go, sir, it has to do with opioids and -- is that true >> i think the -- i think the general story was true, yes. >> what about where comey says, that's -- that scared me, made me wonder. >> that part, i don't know looks like, by the way, the

family still has -- well, that's fascinating. as of april 2021, the family had approximately $11 billion, 950 in cash, 2.9 in marketable securities, billion in real estate, billion in private investments. >> the settlement shielded members of the family from being sued and the new ruling said the bankruptcy judge who approved the settlement didn't have the authority to grant that legal protection purdue said they'd appeal and i bet they have money for good lawyers still. i never thought about that, can there be a season two or three maybe there can be because it's still going on coming up, don't fear the dip. n es joins us next to talk

strategy before the end of the year

. tech stocks tumbling yesterday, indicated down again this morning him some of this year's favorites down double digit from their 52-week highs the next guests says investors should not be running from tech into economically sensitive sectors, maybe even valued let's bring in dan ives web director at web bush securities. dan, with tech, i don't know why the multiples expandsed so much. i guess a lot of it had to do with pandemic plays and the way we changed what we do and it obviously, even the big guys,

like, you know, microsoft and google and apple, they all benefitted from this whole new world that we live in. so you had the combination of that along with low interest rates for a long time. so multiples just ballooned and you see some of the froth maybe in other areas, art and across the board. how much do you think the day of reckoning brings for technology? they say three steps forward, two steps back obviously, it's not going to be two steps back but there must be some come upance we will see with interest rates coming up, don't you think in. >> i think you have to separate the winners from the losers and the long-term winners versus the ones that benefit from the pandemic we see that with zoom and work homes stock and others in terms of the digital transformation, move into the

cloud, cyber security 35g, we're talking another 2 trillion of spending that will happen over the next six-to-seven years. there is froth you will see valuations come up in terms of this riskoff but i do believe generally in tech when we look at names like microsoft, apple, cybersecurity, i mean, growth is 2-to-3x norm normalized i they that will drive these stocks higher. we're not panicking. this is not the time to throw in the white towel on tech for us to double down on your winners, especially when i look at some of these names how they're positioned. >> would you avoid some of the pandemic, so-called pandemic plays and focus on what you just said, you know that 35g buildout on the cloud or some of those other areas, metaverse i don't know >> to me it means in software and cyber these are tenable, you

look at crowd names, microsoft, apple contingency what i view in a long-gated supersized plans. look at chips, marvel, amd and nvidia ivey now it's going to be a stock picker's market in tech. it's not the time with a do-over. i still think we're in the middle inning of a rerating. it's the fourth industrial revolution that's come into the next few years >> what is the number for the ten-year that will get you concerned about just you know stocks in general but also technology, technology is more sensitive. we know the fed is moving that way at this point baring some crazy unforeseen circumstance. they are going to, we're not going to be where we were. there will be a series of increases. the ten year, i don't know, it hasn't, we haven't really seen

it go above 2% in years. what number would concern you where it might really impact multiple the underline business will continued as you say that doesn't necessarily dictate where the stock is >> i think 175 to 2 is sort of the level n. our opinion, when they look at what's happened to the ten year and i look at rates, the fundamental story, that's not changing. i think that's why in tech you got to sort of separate the riskoff tag trade that's happened here for the elevators, versus names that will be the elongated winners him we look back six-to-nine months from now, this was an opportunity not to start a downturn for tech >> all right excellent, dan, thank you, dan ives, web bush coming up, dr. scott

gottlieb will join us with his reaction of what we heard from dr. fauci and his advice for holiday gatherings we are back after this this is ashley. she's a posh virtual receptionist. she'll make sure you never miss a call or an opportunity to grow your business. you can't be in two places at once, let posh answer. posh virtual receptionists. new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria.

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good morning, technology stocks taking a tumble futures are pointing to a mixed

open with the nasdaq coming off its worst session in 11 weeks. the fed in focus new york fed john williams will be our special guest and covid cases are climbing new york city health officials warning something we've never seen before. we will tell you what dr. anthony fauci told us about vaccines, treatments, masks and more then we'll hear from dr. scott gottlieb to get his take the second hour of straux begins right now. sn♪ ♪ good morning, welcome back to "squawk box" right here, i'm andrew ross sorkin along with becky and andrew ross sorkin the dow is up 95 points. the nasdaq off 91 points the s&p off a little over one

point. 100 laggards this morning. i want to show you where things stand. you are looking at the list there. jd off right now about 2%, you are look to biogen is off 2% as well it's moving down as we speak so a little mixed picture here, joe. maybe that's the polite way to put it >> making headlines this morning. oracle is trying to make an agreement to buy cerner. in healthcare, they're up sharply this morning, 19%. fed-ex revenue jumping 14% higher shipping rates

reinstating the profit target. it's launching a if you $35 billion stock buyback. johnson&johnson shares are trading lower. they say the occurrence of a rare blood clotting disorder is higher than previously detected. as a result, the cdc is now recommending the pfizer and moderna vaccines over johnson&johnson's jab. here's what dr. fauci told us in the last hour. >> the shift and the change that occurred yesterday regarding a recommendation of a preference for the mrna over j&j really was nailed down by the very recent data that there are more of these adverse events than was originally thought still the cdc was saying particularly taking into account the safety data with regard to

adverse events, if you had the choice favor the mrna. >> we will talk about this and other issues related to all things pandemic with dr. scott gottlieb in a couple minutes. rivian shares are trading lower. phil lebeau has that story for us good morning >> remember go, becky. you take a look at shares of rivian, it plunge d once the projection in the fourth quarter came up. they will be shy the previous estimate which was going to be 1,200 vehicles production. not a huge miss. whoa, what happened here almost everybody said the same things, it's like you expected rivian has slumped, they announced yesterday, that growth includes announcing an assembly plan east of atlanta, the

capacity to build 400 vehicles our 1t and 1s orders grew. the big challenge according to the ceo, the supply chain and production are up to scale >> we have decided to carry higher inventory levels than previously assumed to hope to insure we have parts to build. the good news is we do not believe our supply chain challenges represent long-term systemic issues. >> the other big story in the auto industry involves general manager dan ammann left immediately, announcing after hours, they're saying he will pursue other opportunities keep in mind, he has been the ceo since 2015

he has been the face and voice and a huge proponent of the possibilities when it comes to autonomous vehicles and the development of a ride share. kyle vogt started krcruise this is one of those moves, guys, that has a lot of people saying what happened here? why is dan ammann out immediately, with little said about where he went or is going i should say, why he's out this is not one of those where, look, it's been a nice ride, i've decidedly do something else this is a short little notes from the company saying he has left the company immediately, pursuing other opportunities we wish him well this will get a lot of attention today. >> that's weird. we know dan well

he has been on a lot, as you mentioned, he has been the expectation at a competitor any time soon. >> it was a month ago if detroit when they had their investor day, he was talking about cruise, how close they are to launching an autonomous network. he has been the face and the person who has been such a strong advocate for the potential of autonomous vehicles and what cruise should represent, not just for itself but for general motors he served as chief financial officer and president. when you talk with people and said who might ultimately replace marry barra? who is not going away anywhere soon dan ammann's name is one of the

names they threw out it's strange you get he's gone >> back to rivian, afew hundre vehicles may u they missed that's 16%. >> all production. >> when are you talking about 1,200 cars is it that, is it the fact that they're talking about carrying more inventory, which seems like a smart plan, likely more costly what do you think? >> i think it's all of that and i think it's the fact that when you read the analyst's notes, when you talk with people how do you value rivian people are still trying to figure it out. and this stock had a huge run-up you can't tell me any retail investor out there has any sense of how to value rivian right now? i think it's all of that combined with the tech sell-off. you put that altogether. that's why the stock sold off after hours. >> by the way, in addition to re reporting those numbers, rivian announced a new $5 billion plant in georgia that will be coming

an lonline in 202004 when we return, dr. skcott gottlieb first, let's head to a break check out the biggest pre-market movers stay tuned you are watching "squawk box" right here on cnbc

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or get started with internet and voice for $64.99 per month with a 2-year price guarantee. give your business the gift of savings today. comcast business. powering possibilities. and we've got to admit, we are seeing a lot of breakthrough infections there are a number of reasons with that, one there is waning immunity, which is why we strongly recommend when people are eligible to get booster. they get boosterred, that's for sure >> that was dr. fauci he joined us in the last hour. the cases are 40% higher than a month ago. have you bicker numbers than the cdc is projecting. dr. scott gottlieb and cnbc contributor who serves on the boards of both pfizer and illumina thanks for being here.

we all have questions of what's happening right now. the cdc guidance, the concerns they are pointing out and the numbers are top of mind with me. just watching this, they're now talking 1.3 million cases they're anticipating between now and christmas and the death count rising to 15,000 a day or a week i should say by january 8. that's pretty extreme. i don't know how the break this down tell me how concerned i should be about this. tell me the cases that are out there being found right now. how many are thought to be maybe mild cases, maybe we're picking up more and how do you translate that to the death count picking up, too? >> look, i think we should be very concerned at this point especially in parts of the countries having a delta wave. it does not seem like in the uk, omicron is going over delta. you see delta infections in the uk that's probably a consequence of people changing their behavior

and becoming more cautious we haven't seen a drop since omicron skyrocketed. in parts of the country, like the northeast and new england right now, have you the potential that you could have delta continuing to expand, continuing to spread, while omicron spreads on top of that there is evidence out of south african right now. we've had evidence all along omicron is causing fewer hospitalizations and if they're down with omicron, on top of what we're seeing in new york, which is a rising flu epidemic right now, rising cases of delta, new york isn't the only part of the country in this circumstance you could have a very difficult situation where healthcare systems get pressed very hard over the next two-to-three weeks we know omicron works quickly, it does look like the tri-state will be hit early on other parts will experience omicron later this variant will much much more quickly through the country than delta did people waiting to get a booster and measure this variant

time is running out to do that if you live in the tri-state region, hopefully, you can get that booster shot. in other parts of the country, people should be seeking appointments they will fill up, demand will surge, which is already is doing. the best way is to do a booster shot one final point, we see declines in morbidity in south africa there are fewer people suck coming to this virus -- succoming to this virus, which is a good thing. we don't know if they have a less vir leapt virus there is no reason to think it is innately less virulent. the you have to assume by and large people getting infected with it have baseline immunity, either from prior infection or vaccinations you have to wonder what happens when it gets into vulnerable populations, elderly people,

compromised people that haven't benefitted or children who haven't been vaccinated or infected >> all right here's my concern with it. i am now hearing about a lot of people i know who are not only vaccinated but boosted who now have tested positive for covid should we anticipate that they're going to be getting a mild form of it, this is something more akin to a cold or a flu? or is this again something we don't know if we don't know yet, when will we >> i am hearing the same thing the number of anecdotes that i am hearing, people getting infected i obviously live in the tri-state region is becoming data it's so many cases that i am hearing about. i think on the whole, we can expect that most people that have baseline immunity, certainly through three vaccinations, people infected and vaccinated based on what we've seen in south african, you can expect there has been on the whole a milder infection some will have more significant

disease and the problem is that the concern is that even if a small percentage of people end up being hospitalized, having more serious infections from this, on top of a healthcare system already fairly pressed, small percentages are still big numbers. the attack rate here could be very high. one thing about south africa that's perplexing a lot of people i've tweeted about this in recent days, the cases are collapsing in the johannesburg and pretoria, they're the most densely populated where them e epidemic got there first it went up quick and down fast we are missing something about this ep demology that we're not understanding, it's causing a lot of sub clinical infection we're not picking up our it's attacking a spec percent annual quickly. we don't know, we don't have good ep deem lodgical --

epidemiological information. >> if you got the shot, you should be boosted by one of the mrnas, people are concerned about this idea if they're saying don't take the j&j shot if you haven't gotten vaccine nated. if you have, you need to get boosted with an mrna shots what happens to those shots? where do they go and what would you be telling and warning people at this point? i know when our schools got vaccinated it was all j&j, because it was all that was table i available to the teachers at that point >> look, i think anyone that has j&j shots, they subsequently got an mrna boost has good protection cdc send a strong signal about preferring the mrna vaccine by moderna and pfizer i think it's unfortunate i think the j&j is a good vaccine. i think it's a vaccine that has easy handling requirements

and the net result of the cdc action is going to be to discourage use not just in the u.s. but globally, where it could be a very effective too many so you know, i think the decision ultimately was unfortunate, quite fraempgly most people were deploying the mrna in the u.s. tell jr af the j a&j is a good e >> dr. fauci said if you want to go to a holiday party inside somebody's home, everybody is vaccinated, go for it. i was pushing on the idea of in certain areas where the positivity rate, by the way, in new york, was effectively 8% there days ago, it's likely

possibly if it's doubling 16% today, which means that it would be over 30% by next week, does that change the dynamic with how you make these types of choices? >> yeah, i think it does look, the rate of transfer and positivity rate will slow down as we get into higher numbers, but the bottom line, is i think this virus is probably widely dispersed in the tri-state area, right now, much more than we are detecting. i think as we come into next week, we will see really significant growth in the number of cases, like in the uk this is going to sell quickly. i think if you live in regions with omicron and hard hit, it's better to be prudent right now this will move quickly given what we have seen in other countries. this won't be a two or three-month affair in your region this will be three weeks this went up and down in the province literally in less than four weeks so if this moves through new york, it will move through quickly.

so exercising a little more caution over the next several weeks in the tri-state region is prudent, especially if you are bringing together groups of people, where they're vulnerable or take care of vulnerable people, older people, younger kids i would be exercising more caution right now given this might be a short-lived endeavor. we need to get through this last major wave we thought delta would be. hopefully, omicron will be at some point this virus will burn itself out. we have enough baseline in the population, it will be less fearsome >> go ahead, andrew. go ahead >> to that point, though, will you go, people go into restaurants where you have to be quote/unquote fully vaccinated people go to broadway shows where people are masked. would you do those things right now? >> look, i think you will start to see again talking about the tri-state region where this seems to have gotten in first. unfortunately, it will be the

first hard-hit region. there are other parts of the country that show a lot of infection. i think you will see things closed down and people will make the decision to close early heading into the holidays, schools will be closed we are approaching the holidays, that will be a break i wouldn't be. right now i'd be taking extra steps to be cautious recognizing that this is going to be a two or three-week spread through this region and to the extent that i have been able to protect my family from covid up to this point, another three weeks of this i think we can get through it i am triply vaccinated the consequences of an infection are substantially reduced. to the extent that you can avoid getting infected with this, my preference would be to still do that >> scott, we know that israel has already moved on to fourth booster shots. any time they bring it up, you get the conspiracy guys saying boosters forever if you have been boosted, how

long should you feel comfortable in terms of the immunity that it provides you are you talking six months are you talking longer are you talking less >> yeah, look, we don't have good long-term data on how durable the immunity is from the boost, you can feel confident going out six months for most people they will be in good shape for an extended period of time i do think that for the foreseeable future this probably ends up being an annual vaccine. we said that all along, people will end up getting another shot going into the winter next season this will become more of a seasonal pattern to this virus for people who are immunocompromised. israel is focusing on now, people who won't get a good response, while we're in the pandemic phase of this virus i know there are some clinicians providing boosters every six months, people severely immunocompromised, older individuals who are unwell who probably would have a bad outcome if they got covid.

there are circumstances where we know certain patients are fought going to mount a good response from these vaccine, where physicians are using discretion to boost them every six months right now. and that's what israel is looking at it's in the immunocompromised diagnosed. i said we should also be using the monoclonal anti-bodies as a prophylaxis, giving someone who isn't going to respond well to a vaccine, they will not mount an effective immune response. >> dr. fauci says a person is fully considered vaccinated with one j&j shots, two mrna shots. how long will that definition of fully vaccinated continue? >> i think you will see private businesses start to change the definition of what it means to be vaccinated within the context of those businesses. you will probably see some localities i think states will have a hard

time dock it, so long as the booster is under emergency use authorization. it's unclear when the fda will give it to the booster, probably sometimes soon i think the next will be the last to go on that my conversations with them, they've tied a lot of decisions to the definition of what it means to be fully vaccinated and changing that definition is a difficult endeavor, at least from their perception. i think they will be reluctant to do that i wouldn't expect them to do that until their booster is fully licensed or next fall. i think a lot of local governments will do it well before the federal government and a lot of private businesses will be doing that the colleges are already doing it >> scott, i wanted to get your reaction to dr. fauci's reaction to something you had said. i asked him about the concerns that you've had honour program about the implications of mandates and whether they become counterproductive not just to getting more people vaccinated currently but to the sort of psychology of the country around

vaccines broadly into the future, whether it reduces people's willingness to accept them he doesn't agree with that premise. and i'm curious if you either rethought that or what your view was of his answer? >> no, i haven't rethought it. i'm pretty confident that there is going to be some corrosive effects from the episode we've gone through with trying to mandate this at a federal level. whatever damage is done socially in terms of the division created and whatever benefits will be gained to employ those mandates are approved i don't think we will get much more benefit out of the effort businesses went with their own mandates hitting back on a federal effort and we've seen the political division get drawn. i think that will persist for a period of time now you will see some people campaigning around the idea of vaccines being four star consumers, which isn't, i don't think, what happened but that itself the perception

among a certain cohort of the electorate i think it's passed us >> have you seen change in dr. fauci? he's kind of dismissive about it he said, yeah, a lot of the cases are in vaccinated people then he said, until we get everyone vaccinated. a lot was incongruous and dogmatic and my way or the highway. has he changed in your view over the years, scott very dismissive of your view point i don't know where scott got that, it was weird >> look, i have great respect for him. yeah he's a great scientist i think that being put into these positions where he's forced to answer political questions is, quite frankly, you know, outside of where he's operated for his whole career. >> i guess, he had no idea how many genes were in the covid genome i think it's under 30. he knew base players i was trying to get at an

answer, which gene can conserve us for a universal vaccine or therapeutic, got nowhere >> yeah. there are epitopes so look, the prosch with the virus is the immune dominant epitope is the spike protein the surface we recognize the best through our immune system is that spike protein. there are other proteins on that surface we target, but they're not as immune dominant as the spike proterian. it is possible you can come one a compliment of epitopes and develop a effective vaccine. it doesn't rely on the spike protein. >> i gave up trying to get an answer can you develop a vaccine against one of the core proteins that allow the virus to do what it does or is that in the capsit so you can't get at wit a vaccine? you know what i'm saying can the immune system not get at the protease for example or do you have to make it to make a

vaccine? >> i think you have to make a small molecule this is sort of out of my expertise. i will say, look, tony has been talking about a universal flu vaccine that we wouldn't have to reformulate every year for his entire career, probably 30 years. he's been working on it. we don't have it the reason we don't have it because it's not so easy to find and conserve regions on these viruses that can undergo severe vaccine. they did it with anti-body but being able to do it through a vaccine where you induce the body to create the anti-bodies to create immunities is a different feed i'm not saying it can't be done. i think it's possible we will do it but it's going to take a lot more work than we are capable of dock right now this is some future technology >> all right thank you, dr. gottlieb. appreciate it. as we head to break, check out the faang stocks this

morning. turn now for today's aflac trif quetrivia question. in what year did the national christmas tree association become the official presenter of the white house christmas tree the answer when cnbc "squawk box" continues box" continues >> ♪ must be the money ♪ and i know how coach prime feels about money. -aflaaaac. -♪ aaahhhh ♪ now that is what >this jacket needs. ♪ must be the money ♪ get help with the expenses health insurance doesn't cover. at aaflac.com as an independent financial advisor, get help with the expenses hei stand by these promises:er. i promise to be a careful steward of the things that matter to you most. i promise bring you advice that fits your values. i promise our relationship will be one of trust and transparency.

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. now the answer to today's aflac trivia question. in what year did the national christmas tree association become the official presenter of the white house christmas tree the answer -- 1966 it was a balsam fir from wisconsin. still to come, ev maker making plans for an assembly plant outside atlanta. we will talk to governor kevin next and john williams with an exclusive interview at 8:30 eastern. stay tuned you are watching "squawk box" on cnbc

ev maker rivian unveiling a new $5 billion battery and assembly plant based just outside of stlaen atlanta, that expects to employ 75,000 workers. adding to the state's economy that sees $3 billion, join us now with more on this, georgia

governor brian kevin, he was there for the unveiling. governor kevin, a good reason to come on today. what does it mean for your state? >> good morning. yesterday was a historic date. we announced our unemployment rate dropped for the 19th straight month 2.8%, lowest on state's history. we have the largest georgians in the state's history and closed out the largest economic project with rivian so it was a great day. >> tell me about, how did you sell rivian? what were the key determine nants for the decision, would you say? >> all these projects are competitive. a lot of competing states, i think our message to the company is look give us a shot just come to georgia, let us show you this site one of the things that i've worked on you know over the last three years was having

shovel-ready megasites, you need to move to the market quickly so we were able sell them on that they wanted to be close to an international airport with this site, they are then the other thing is speed to market, which this site produces because of our due diligence and being prepared the main thing, too, is just the work force, no matter where you are going, what state, what incentive package you are getting, who is competing for what if you don't have a good work force that could fill those 7500 jobs, as they're going to be hiring and get your product to the market and a vehicle in the case of rivian, that it doesn't really matter. that's what i really sold them on as well is our work force training programs. >> you kind of crossed over the incentive packages, what exactly is in there that the fine print that might have induced them to take georgia over some of the competing offers are we going to find out later

what's in this >> all this should come out through the process we have here under the law in the state of georgia. i will differ to the department on those things. we have tax credits built into our statutes, so this is something in law for a long time in georgia we have other tools at our disposal one of the things we will be doing for the company is we will build a quick start training program on site to help them train their work force the state will do that that will not only be good for rivian it will be good for educating hard working georgians in that part of the state. we will help them with recruitment. that's somebody everybody is dealing with, not having workers. that's something we offered where the state can help you know for us, this project didn't just end yesterday with the announcement it just got started. we want to help them be successful, get to the market quick, which is going to be important in this new emerging industry and georgia is a great state to be doing that in.

>> it's kind of funny, this is definitely going to enter into governor kemp's re-election campaign can we count on that >> well, look, i don't go to work every day thinking about what can i do to get reelected i go to work every day thinking about what promises did i make to georgians when i ran for governor 21 of them was created a royal strike team that also helped develop megasites so we could get projects like this, regional transforming projects. this is something i have been working on for over three years in the department of economic development is working on, we have been working on land in this project for months and months, long before people even started talking about the political season that's my message to georgians is look i am running on my record we have a great economy, a record year economically last year we're continuing to work to make georgia the best state to live, work, raise our families

these jobs and opportunities with rivian and other companies we've recruited in our state, they will be transformational for families lives in our state. that's what i'm doing every day. >> i don't think anybody believed it was going to be the center and the senatorial election, now it's a microcosm, governor, you had former president trump a king-maker i guess stirring things up with different primarying, his people that he thinks weren't loyal, helping people that he believes are, you know, still on his side and i don't want to get down in the muck really. you had some choice words about former senator purdue, who is going to try to announce he wants to be georgia's governor does all this help stacey abrams or the democratic, whoever that happens to be when it's all said and done down in georgia >> well, look, joe, i'm not

focused on other people running for governor in georgia. i'm focused on my message. what my record is and telling georgians why they should vote for me i have been in the fight to keep our economy opened when literally the whole country was against me, especially those on the left and the national media calling us crazy for reopening a small part of our economy we closed in the first place. we were the last state to do that one of the first to open i have been in the fight to keep our kids in the classroom, because the data in the trump administration and the biden administration says that's where they should be i've kept our churches and places of worship opened the whole time during the global pandemic i have been standing up backing law enforcement to do something about violent crimes, street racing going after gangs and human trafficking when other people wouldn't do that in our state. and so if anybody else is going to get in that fight, you'd have to ask them why. >> governor, you think that you will prevail against a

trump- trump-backed republican candidate for governor down there and in general, do you think it would hurt whoever the ultimate nominee on the republican side is is it counterproductive to be going through these things, in your view? >> well, if there is any question when the party is united like everybody was in 52. to help glen youngkin. he had a great night and prevailed. i believe that we're going to do that in georgia. you know i can't really control all the other political distractions on my side of the aisle. i will be running on my record but you can rest assure to this i will be fighting for my position, i'm an incumbent governor this isn't an open seat. i have people running against me that's how i'm viewing this race i can tell you, i'm not running for re-election to lose. >> all right governor kemp. thanks a lot of jobs, it's high-tech.

it's next generation and you know you got the braves. i don't know about the bulldogs. i i am very diso'pointing. >> be optimistic, joe. be optimistic. we're going to be all right. >> you will get another chance, right? >> that's it >> hey, it could be worse. it could be georgia tech >> we got to take care of michigan first >> all right yeah, are you right. that's no small feat either. >> when we come back, why u.s. investors should take note of what the turkish lira just did stay state tuned. this is "squawk box" and this is cnbc

futures pointing to a mixed open right now with tech stocks under pressure we will check out ggdsstlaar, ay tuned. right here on cnbc ♪ (sha bop sha bop) ♪ ♪ are the stars out tonight? (sha bop sha bop) ♪ ♪ ♪ alexa, play our favorite song again. ok. ♪ i only have eyes for you ♪

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welcome back to "squawk box. the turkish limp ra plunging to new depth as they get a lesson in the dangers of the central banking. steve leishman joins us with more on all of this. steve. >> good morning, the lira cascading through another milestone, dropping through 15 to the dollar yesterday and now i don't know what you call it but nearly in freefall the lira now trades at 16.7 to the dollar, closer now to 17 as we hang on here, it may hit 17 in what it is going through a his toreic deterioration and economy once thought to be a modem. the latest sell-off comes after the turkish central bank cuts rates again, a grass roots example of what not to do and the damage that could come from the central bank losing its independence turkish president says they are the mother of all evil he's fired his finance minister,

several central bank minsters until he found someone that would do his bidding cut rates in accelerating double digit inflation. central bank has cut the policy rates at 14% from 19%. that's on the right side of your screen there the policy has, of course, pull emed the currency and made it difficult for people to afford food essentials in an economy very reliant on imports. it could help except for one thing. erdogan got the minimum wage to rise getting rid of cost advantage created by the currency even if turkey were raising rates, the currency would likely be challenged. the fed has emerging marks around the world compound that with what economists believe to be precisely the wrong monetary policy say what you want, andrew, with the fed being a little bit behind the curve maybe a lot, at least they're going in the right direction

you can maybe see that in you know the ten-year yield, which is 140 this morning, a lot of the incidents and the central banks which is worth money to average americans, whatever the fed is, at least it's not turkey, andrew >> i don't see while you are talking. the good hotels in turkey, pricingeuros to dollars. that's the truth i thought maybe there would be an opportunity for a trip. but apparently not. >> well, yeah, not if they do it that way not if they don't use any of the advantage that you would get from a currency. look, the good news about turkey is there is not contagion from it, from what it's doing i think you are going to hear from glen hutchins early this morning. i think he will talk about emerging market issues that are out there. we haven't talked a lot about it the fed strengthening or removing a combination creates challenges for emerging markets raising their interest rates

you know, here's the thing, andrew, you know, the world full of disease and disasters, all kind of things don't create problems you don't have to create that's really what's happened here this is completely man-made or president-made, politically made disaster that's going too happen in this country and so it's really a shame to watch this happening when it doesn't happen and other challenges that would be there >> -- there is not an election until 2023 look, i have been in a country that did you no at the tough medicine and that's what you have to do you've got to raise interest rates. you've got to slow the economy you've got to take advantage of people like you who want to go to a country where currency is spun and all of a sudden you can go, because, obviously, andrew, you don't have a lot of money as we all know. and take advantage of the price of a waterfronts hotel that has dropped in price relative for

example to italy if you price nit euros, you get rid of the advantage you otherwise would have had and of time, turkey has a lot going for it it had a lot going for it. it was one of the marquee emerging marketing companies people talked about about. they've completely squandered that i know a lot of turkish people folks, they're very bright they have the intellectual capital in that company to get it right but they're not the ones in charge. >> steve, thank you. have a great weekend we'll talk to you soon meantime, i want to get to talk to kneel blackstone, we can talk about turkey, let's talk about the central bank maybe and what's going on in the united states where j. powell said this week and what you think it means for the market at this point >> well, i actually think this major rotation actually began during his congressional testimony. i think things were flip-flopping around with the new variant from south african

and the numbers there, but the rejection of the word transitory during congressional testimony has really sparked quite an interesting rotation in markets. it's not really a valued growth. i think if you look over the last few weeks, what you will see, especially at the end of november until now, has been investors piling into safety so whether that's utilities, whether it's the proctor and gambles and mcdonald's of the world, some of these things are up 11 to 12% over the last no weeks a. lot of people were yesterday talking about a value rally, because the 5:30s, the five and 30 years look like they were steepening. the middle part of the curve has really flattened out here in terms of future growth prospects. so there seems to be in terms of the equity markets concern that the fed might make a policy mistake. certainly the middle of the yield curve they might make a policy mistake

that's been driving the action i think over the last little while. >> so, but now things have moved the way they have, how do you position, what are you doing, for example, right now >> well, you know, listen, i have been for the last 23 years running the same fund growth investor we've seen these types of rotations in 14, 16, 18, 20 and now a couple few times in '21 as well i think you really have to pick your spots i think everyone wants to focus in on what adobe said about weakness in the digital market business, which we had all heard from internet advertising companies, not the unilateral changes apple made to benefit its own ad business at the end of the day and retailers not doing as much because of not having as much inventory that seemed to be the focus. very little went on in the ac accenture call and where

enterprises are going. the market will pick out whatever mood it's in for sure i think you do need to think longer term. i think for many of the companies that had pulled back in some cases 20/30% in the last two weeks, they're not all -- they're certainly not all bad companies. if today you are trying to figure out whether you should buy shampoo and soap trading at 30 times earnings or a warehouse trading at 50 times earnings it's amazing how expensive those safety stocks became in a very short period of time the question at the end of the day is are we going into recession? all the fed has said they will speed up the taper so they can decide i think that's prudent i think the high frequency data is showing supply chains easing. i think longer term, a free amount of fiscal stimulus is happening year over year as that wanes down, we need to see where prices are >> noah, we want to thank you a. lot of smart thoughts. you gave us a lot to chew on for

a friday morning thank you, happy holidays. north island chairman jeff ro hutchins, nelson gggris and new york fed committee john williams all straight ahead stay tuned

good morning, it looks like this might be the next wave of the pandemic, covid cases surging in new york city, driven in part by the new omicron variants dr. fauci replicated his call for people to get vaccinated and boosted. i will bring you the highlights from our news making energy. meanwhile, we're looking at more market losses for technology nasdaq futures deep in the red, a day after they suffered the worst drop since september here to talk about the market this is hour and one of the biggest drives of the week, the fed, glen hutchins and nasdaq president nelson griggs and new york fed president john williams the next hour of "squawk box" begins right now [ music playing

good morning, welcome to "squawk box" rmth live from the nasdaq market site in time's square i'm joe kernon along with becky quick and andrew ross sorkin u.s. futures indicated lower the nasdaq, yikes, a small percent, but down a lot yesterday, giving back all the gains from the day before, which were significant and substantial. and then down again this morning. maybe a move to value. maybe it has something to do with what's eventually going to happen in fixed income as of today treasury yields on the ten year seeing a little bit of move him. you still wonder why it's not movement that's headed up instead of down. i guess i've got a pretty good idea why. >> it's going to be more concerned with the omicron at this point, right to see it move so substantially just in the last couple of hours, too, 1.387 from i think it was 1.42, 1.44 just when we started the show. >> andrew, if you had seen a

good deal in turkey. when were you going to go? you weren't headed there this weekend? >> i have wanted to go to turkey for a long time. >> wouldn't you go to a restaurant first or somewhere, wouldn't you -- baby steps, my friend, baby steps andrew is going right from where you are to turkey. >> you know, i can get a deal, joe. if i can get a deal. >> you are making a very good point. unfortunately, we're all dressed up with nowhere to go. there is no way to go take advantage of let's deal with -- first >> some of the headlines about europe >> and uk maybe not letting people in from the uk and germany the last two weeks >> i can get some nice threads from mary. i got a nice sweater some sweaters, can you believe that i asked for andrew ross sorkin sweaters. >> did you >> i did

>> we'll do a fashion show if we can't do the fashion show there, we can do it here and we can pretend, sit outside. >> we can't get a backdrop we've got it for previous years. have you thought about that and go brrrrr. we're really there, people are you ready to try that, becky? >> no, i wouldn't want to, you know, but i mean we'll see things are changing rapidly. i think it's reflected on the pressurery market today. we don't know a whole lot about omicron and just how significant it's going to be in terms of illness, that it brings along wit. people are concerned we're watching it. we're also starting the hour with retail and consumers today. we're 24 hours away from one of the key shopping days of the whole year courtney reagan joins us once again this morning game only. we are in the final hours here. >> reporter: absolutely, becky tomorrow is considered super saturday in retail it's always that last saturday

before christmas which is exactly a week away. tomorrow is expected to be the second busiest day of the year for store resellers. the national retail federation does expect 148 million americans will shop this weekend. that is down from 150 million last year on super saturday, when it was pre-vaccine still. but it is up from 147 million in 2019 a record number of americans, though, shopped early this year. 42%, in fact, said they will buy their final gift before tomorrow and standard shipping deadlines in time for christmas have already passed for many retailers like nike, lowe's, nordstrom, carters and others and non-expedited shipping services 41% of super saturday shoppers will still shop online and in stores some using omni channel offers like target's driveups or pick-up options, you can order

online and pick up the same store fulfillment. christmas eve, target announced orders can be placed to be pickup up until 6:00 p.m. by 8:00 when most stores close. they will be closed christmas day that last holiday season target's driveup moved up the same day delivery service grew more than 300% target does own ship, it offers delivery services for 120 retailers. adobe says so far this season 21% of online orders have been made for curbside pickup for the retailers that off it. that's expected to peak to 40% or more of all online orders, on december 22nd or 23rd. >> wow still, that itself the way to go, courtney no way about it. you can pick up wine, everything

is curbside. and i bet you -- >> reporter: it's pretty nice. >> if it started going out of style, i don't know, i have a feeling it's coming back, isn't it, what's hold is new thank you, courtney, and here's what it's about. now an update on the coronavirus infections that are surging around the world now with the omicron variant, it's a major factor here in new york city, covid doubled in three days this week. it also saw its highest daily new case count since january dr. anthony fauci joined us in the first hour of the show he was up early. he addressed omicron may be less vir leapt than other diseases. >> one of the things we got to be careful about that if you start assuming and it really is only an assumption, that it might be less severe in general, that can be completely overrided by the fact that it is so

extraordinarily transmissible that even though you have a less of a percentage of people who would get hospitalized when you have a larger number of people getting infected, the total amount of hospitalizations is going to be more and that's just simple math. >> we also talked to dr. fauci about people not getting the vaccine because they're worried, they are vaccine hesitant of the potential health effects here's what he said. >> it would be unprecedented to see something six months, a year from now associated with any vaccine. we've never seen that. usually you get reactive genicity within 24-to-48 hours and adverse events, almost all of those adverse events occur within 30 days or 45 days at the most the idea of having an unexpected adverse event six months or a year later, nothing is impossible but that would be absolutely

unprecedented if that occurred >> also on the covid front, take a look at shares of johnson&johnson, down from a new recommendation that people get the pfizer or moderna shot over j&j, due to several doesn't people developing a rare blood clot the cdc confirmed 54 cases and nine deaths. so, that was the question, beicy, about johnson&johnson, billions of vaccines have been administered and there is a number i guess of heart inflammation or whatever it is when you get when your immune system reacts to covid, too, so if it's one out of 100,000, you will see those on twitter or you see it in the press, i think we have a pretty good idea about the near term adverse reactions to messenger mrna vaccines which

are new. they're very, very minor and very, very safe. >> you play statistics >> my question was about can you think of any disease pathology that could be delayed that long? he gave the answer in his view about it when i got my three, you sit there for 15 minutes right? when you are allowed to leave. so the real one they're looking for, the allergic reaction is 15 minutes. then you worry about the next 48 hours, you feel like you got the flu or something, maybe. i didn't >> i had reactions to all of them to two two shots my second and third i definitely had a reaction, a flu-like reaction for 24 hours. but it's still preferable to picking up covid >> do you feel sick, sorkin? you didn't feel sick, did you? >> i was a little tired after the second shot. third shot, by the way, oddly enough didn't touch me >> you get up at 5:45.

of course, you are tired >> good one. >> that's funny in a lot of ways, isn't it >> switching gears, we are about to wrap up a big week for the markets, especially economic news the biggest headline may be the federal reserve will be accelerating the reduction of the monthly bond buying and possibly raise interest rates in the next year three times. for a look how this will be impacting markets in 2022, including crypto currencies, we have joined by jeff hutchins it is launch ac new liquid hedge fund and it sounds fancy and it is thanks for being with us >> good morning, becky it's great to be here. >> let's talk first. i would have thought the fed would be the biggest thing until you start seeing the tech reaction today nasdaq stocks a lot of them under pressure is this a delayed reaction to what the fed said on wednesday, concerns about higher interest rates? is there something else

happening here you know the sector well what do you think? >> i think a couple banks, probably, becky. one would be as you said interest rates going up have, are reversing the key trends and that underlied the massive stock prices, which is low interest rates. also the bad news about the virus and very deep coverage this morning on i think having concerns about the impact on the broader economy and reopening. and there is also people taking profits and putting some kind of performance marks on their portfolio for the year so i think those three kind of things come together. >> it's interesting. it used to be when you worried about another wave of covid and saw things happening and worried about the economy potentially shutting down. that will make people think the fed will stay looser for longer. j. powell dissuaded us of that

idea lately when he has been focusing on the idea that that could be inflationary in itself. if you have things, people not willing to go back to work as quickly. how should we kind of put that into our new equation and figure things out >> you know, some interesting set of questions, becky, the fed, i think that is going to be tightening they told us that yesterday. 18, all 18 of the governors said they expect them to go up. they are facing two opposite risks. you know, with the tightening into the weaker economy just as the inflation is abating, versus if they continue to accommodate and allow households and businesses to expect prices leading to wage surprise spiral. so the virus hit a new virus wave hitting right now complicates their decision-making. they don't want to be tightening into a weakening economy but there is very little evidence of that so far and i would point out that we have learned one of the good news

stories at the end of this year is how much we have learned over the last year to deal with the virus in addition to vaccines, we have widespread testing we have therapies the. those therapies are becoming more and more useful going from infusions to injections in the future and our scientists tell us they have paths to havings to deal with these virulents so i think that the balance of risk is much less against another type of pandemic that would weaken the economy and much more towards inflation being the key concern. i think it's clear the fed had gotten behind on it. >> let's talk about crypto because you're a crypto expert you have been for a long time. have you the crypto venture fund it's done well it has big names l.l. cool j. moglia, who have invested in it. a new hedge fund and dapper labs and the investment that you have made there

my big question is, if the fed will be tightening, restricting things, what does that mean for crypto and nfts? i know have you gotten involved with those, too. is this something riding a wave of liquidity or it's not going to matter the fed tightens significantly? >> well, there will clearly be some modest implications of fed tightening for those considered held broadly as money equivalent, bitcoin, the other tokens, particularly the non-fundable tokens, which i call horses for courses, inside networks for particular use cases, the monetary policy implications are essentially irrelevant i'll give you an example if you want to buy an nba top shot individual trading card, you have to interact with a flow token to make that purchase or sale, are you not necessarily, that transaction has nothing to do with thinking about monetary

policy or interest rates or the monies fly or qe or any of those sources. one of the things that people who look just as buying and selling tokens don't understand is there are underlying use cases that serve existing communities, they're trying to do something fully separate from buying and selling tokens the interaction of the toke isn't to accomplish something else for the marketplace or the network and to the extent those grow in usefulness, it becomes monetar policy becomes less of a note. >> i want to talk more about this but this may be something we dig into deeper on another day >> okay. >> i know have you predictions for the new year. >> that sounds like an invitation to come back. >> it is it want you to come back, you think very deeply about these things you have been heavily involved in them. i think all of us can use a little of a course in understanding the thesis behind some of them

i don't want to you get away without making predictions for the next year. it's close to the end of the year, i think we need to hear these things flu is asked me for a market outlook five thoughts. one is that we move into a situation where we are potentially increasing easy money is turned off. first, add night following day emerging markets and shudder and the knock-on effect of rising/borrowing costs, soaring dollar, surging fuel prices are all bad for countries like brazil and russia as well as the emerging ems like mexico, that's number one that's just pattern recognition for the year looking at the markets. secondly, i would say to people don't sell china tech companies at least at these levels until the party, in october where

we'll see if their politics rotate away from nationalism and back to expansion, which is a number a very lot of smart people are looking for third i describe this as shovel the manure out of your shovel. the dodgy spac, all what i call the technical term all the crap. >> you are deliverance chayeting that from a lot of the other new things bitcoin and nfts and others that don't have a specific use case >> those kind of stories doesn't have a use case, it's the frothy end of that token market i would dispose of it. third, becky, i would look to space. the next year or two, there's, space will transition from what you might call a billionaire's

big round to a commercialized sector i'd particularly watch the lower satellites, the leos and the elon musk sterling project to have private use of space and very valuable profitable and commercialized ways. and finally, with crypto, over a year ago, you remember i started talking, you referenced it this morning, about the metaverse and the use of nfts in the metaverse. in the coming year or two, i will predict, my one prediction. the new buzz words will be dows, decentralized organizations and zero knowledge proofs. >> all right you are still way deeper into this than we have gotten i am taking notes as we talk about this, glen we've got your predictions or your warnings on some of these cases and we're going to have you back soon to talk about a lot of them. i like the emerging markets. i wonder what happens in terms of global tensions, if you look

at these places, especially russia out of time, great to see you. we are booking you very soon >> merry christmas >> merry christmas happy holidays coming up, we got exclusive insights into this week's big federal reserve decision you don't to miss this new york fed president john williams will be here. it's a big interview in just a moment ay tuned you are watching "squawk box" on cnbc

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welcome back to "squawk box. we are about to wrap up a big year for ipos and this morning we're getting data on how lucrative 2021 has been. the nasdaq announced it raised $180 billion many of the companies that did go public recently are trading below their offer price.

renaissance ipo etf is down well 20% over the last three months joining us for a look back, a look ahead to 2022 is nasdaq stock exchange president nelson griggs it's great to see you. walk us through these numbers. it was a remarkable year in so many ways how the money was ruized there is this issue about performance and where the market is today and maybe where it's going. >> i think you look back how we exited 2020, we had markets at historic levels and companies ready to go public we opened the gaetz to a massive 221. clearly it's tested. it is a bit more disciplined in the market we still have a lot of cash on the side lines that it wants to go to work i think we've set up 2022, we still have a pretty robust january/february calendar. probably not as strong as last year last year was historic, or this

year was historic. we will see how they perform when they get out of the gates in 2022. >> do you think there is a shife there was uber went public, lots of energy back then. lyft as well but there was a switch if you will in terms of how all of a sudden the investor class, you know what, we care about profits, we care about the time line to get into profitability and you really saw what the impact was on pricing and what kind of companies could go public tant. >> yeah, that's a great point. clearly, we all know investors send changes very quickly. so right now, we are seeing more questions that companies get on road shows about what is the path to profitability. i think a shift from saying we will pay anything for growth to what is the long-term outlook is

becoming a more questions from investors on that, that area so i think we are seeing more of that and it is something that companies have to deal with. at the same time, there is so much private capital so we go through these areas where there could be a valuation disconnect to what investors will pay, what companies are willing to accept and companies, the high quality private companies have ample access to saying, we will take more private capital and weigh out the market we could be at one of those moments, again, we have a healthy january/february calendar lined up right now. >> a huge component of the business in 2021 was the addition of spacs and with we are now in a moment gary gunz ler runs the sec will regulate spacs in a way they have not been thus far. how do you think that changes the dynamic long term? >> regulation bash loves to play a huge role.

we saw that play out there year. so we had an incredible first quarter of spacs listed low over 200. the sec did make accounting changes, did slow the market for a good three or four months. we have seen an uptick now as the offering has changed some, where there is a little higher yield for the investors as well as short durations, so i think as the ftc looks at this 2022 is a real big year. there is over 450 spacs that need to find combinations by year end so you think of all the different stakeholders within the spac universe, sec whatever they come up with as they evaluate this will have a big impact. >> when you look at the time line the january/february period and beyond, how much is being driven by crypto right now that whole universe? >> not much. not much i think when we look at the pipeline coming out

january/february, it's much more the traditional consumer technology companies, we'll see after j.p. morgan healthcare conference how the biotech market starts off the year, so, i'd say not too much, andrew >> and in terms of valuations coming out of the gate, when you look at where you think some new deals will price, do you expect them to price under, you know, some of the high-flying frieft i pri -- private valuations or exceed? >> when they go to market, they got a lot of investor feedback trying to generalize that is hard we're clearly in a moment where there is market digestion. we are seeing evaluations compress some. as we get into the year, i think we will see a lot more when the first week of january you start seeing the ranges. that will get the test of the

market at that point. >> nelson, got to wish you a happy holidays >> it's been a great year. thanks for all the time we spent with you all interest you bet. thanks so much coming up, we're going to hear exclusively from new york fed president john williams, a speed-up bond taper program, future rate hikes, whether he has new compositions for the next indiana jones movie all those things stay tuned u yoare watching "squawk box" on cnbc live. (soft music)

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the feds sped up bomb taper programs, the latest interest rate projections driving markets the second half of this week steve leishman joins us with a special guest. steve, take it away. >> becky, thanks very much we are joined this morning exclusively by new york fed president john williams. president williams, thanks for joining us this morning. >> it's great to be here, steve. >> yeah. this has become something of a december tradition unfortunately, a second year in a row. we've done this remotely john, i want to start off with the question, the same question i asked chair powell earlier this week, with inflation now identified as the biggest problem by the public, my politicians and several fed officials. why is it the federal reserve is continuing to buy bonds over the

next severe months doing what looks like action es baiting the inflation problem? >> clearly, we are very focused on inflation it is too high right now we want to make sure it comes back down to our 2% goal that is clearly our area focus now the decision to accelerate the taper and bring it to a close in mid-march makes sense, adding accommodation, you know in terms of the timing with lee like to do things in ra way carefully studied, very carefully communicated and do newer policy changes without creating disruption in markets so, yes, with reending the program pretty soon. it will begin in mid-march and i think that's exactly the right thing to do. i don't see this as a real benefit to speed it up further it's about getting our monetary

stance in a good position and creating the optionality next year likely to start raising the federal funds target range. >> yeah, walk us through what happens at the end of the taper, how quickly do you think the federal reserve needs to reverse course and start to raise rates. >> the decisions we made in november and are meeting this week, are driven by economic developments, what we've seen in the labor market and how it's involved i think next year, you know, clearly, that's why i will be focused. i am pretty optimistic we seen really strong improvements in the labor market you seen unemployment rate come down quickly i like, apparently my colleagues, based on the projections, expect the employment rate to come down to 3.5% by the end of next year

expect growth to be well above trend and expect come down somewhat and be above our 2% targets. i will be looking at that data, analyzing where the economy is, in terms of our progress, towards our goals, how do we give the right stance of policy? i go into next year feeling, you know, based on outlook, it's a very good one. in that regard and, therefore, actually raising interest rates because it would be a sign of a positive development in terms of where we are in the economic cycle. but it will be driven by the data >> john, wouldn't you be raising interest rates even if you didn't have an inflation problem, which raises the question, don't you think we should be raising interest rates more than you otherwise would be in order to combat inflation >> are you back? >> could you repeat the

question, sorry? >> no worries. my question was wouldn't you be raising rates as you take away the emergency stimulus from the economy? it doesn't mean the fed has more to do because of the inflation problem with interest rates? >> we're focused on our dual mandate goals, obviously i do think we will make good progress in terms of maximum employment do i see us raising interest rates and made that great progress towards maximum employment i think, yes, we would be doing that the inflation aspect of it does probably argue that, you know, it tells us more about where the labor market is, where the economy is and it's another factor in thinking about do we need to raise interest rates maybe not so much sooner, maybe a little more quickly over time. i will add i am very focused on real interest rates. not looking at the nominal federal funds rate is, but

expected inflation, a little higher in our projections now for especially for next year clearly, that's a factor we want to make sure we are adjusting policy in someone and remove eight come days ago going forward. >> i am glad you went there, john just so everybody understands, the real rate is the nominal rate or the rate that you see minus inflation. that means as inflation has risen, the fed has gotten more stimulated to the economy actually because the funds rate has gotten more negative the real funds rate. some i think you are saying that that means the fed has more work to do because of higher inflation. is that right? my understanding >> the way i view it, we do want to keep an eye on real interest rates. the fact that you are seeing in our projections, the higher federal funds rate, our projections for the end of next year and the year avefter is a

reflection i do think at least in the projections we will be making progress and moving real interest rates back towards what we think of as normal or neutral rates. that's a whole another question of exactly where the neutral rate will be a few years in the future that is exactly how i think about it >> so, i want to read you a quote that from larry summers, who just wrote a piece overnight. what he said is, quote, there have been few, if any, instances in which inflation has been successfully stabilized without inflation. i'm wondering if you can tell me, without recession. i wonder if you can tell me, is that untrue in terms of the history of things? can the fed stabilize inflation withoutessentially what larry is talking about there, raising rates above neutral and slowing the economy? >> well, two things i am confident we can do that i think that monetary policy over the past quarter century or even longer has shown that we

can accomplish and deliver you know stable, low, inflation overtime and, you know, obviously, try to mitigate the effects of recessions in the economy, give the economy back to maximum employment. i think we have shown we can achieve both of those goals. i will say the thing that people tell me all the time, it's absolutely true, we've said throughout this, this is a unique set of circumstances, driven by covid. this is a health crisis that has had enormous impacts on our economy and the global economy and that has spilled over to inflation, to you know labor supply, a lot of different things so you know i just think it's not, looking back at different historic am episodes or things is probably not the best guide to thinking how this vision le involve. i look at the data carefully as everyone does. if you see a high rise in inflation has been over the you know period since february 2020 kind of looking at the inflation picture over the whole period.

we've seen services, inflation, basically, more or less on trend and in non-verbal goods, close to trend it's really this big increase in prices for durable goods that's high inflation that acts people i understand that. we don't want high inflation we work hard to bring inflation back down to our 2% goal i it tells me the dynamics will be different in respects than they were in previous cycles, where you didn't see durable goods surge. typically, durable goods purchases fall so i think again, we are very focused on making sure we achieve our dual mandate goals i think looking at historical episodes, it isn't applicable to the current situation. >> john, i want to ask you about what's happening in markets right now. the ten-year yield following through 140. what kind of message are you

getting as a guy who hopes to influence the longer-term structure of the yield curve that rates are falling rather than rising while the fed is talking about raising interest rates. does it cause you confusion? >> well, it's obviously something i study very carefully. and i do take signal from financial markets. we're not targeting those rates or financial markets but i think it is telling us something at least where investors are about the future path of the economy. now, in terms of you know as we've, in terms of how monetary policy has affected the yield curve or treasury yields, you definitely see the shorter ends, the one, two, three-year yields, those move up as people have seen us likely to raise interest rates earlier and maybe a little bit more quickly than was viewed been so i think that makes sense. we're seeing monetary policy, our communications and our interactions so far translate into expectations of somewhat

higher interest rates over the next couple years. i think that's kind of working as you would expect. so i would say the puzzle maybe is in the longer end of the curve. the five to ten year and further out. i do notice that i think lot of us comment, a lot of the movements in the ten-year yields do seem to be driven by covid related news along with normal economic news. i think investors and the markets are very much focused on fed policy, sure but covid is still the biggest story in the global economy. and i would mention global here. we're looking at these long-term yields, pretty low, around the world, different levels, but definitely low so i think that you know from my perspective, in a global economy, you know, the markets are telling us, globally that interest rates are likely going to be relatively low years out in the future. some of that may be term or risk premium. of course, that could change it could evolve.

i do think our monetary actions are and will continue to translate into shifts in overall financial conditions in the way that we're looking for in order to achieve our goal. >> john, one more question right along those lines here what do you see when you look at the stockmarket, various other asset values you see housing going up very quickly. you see all kind of sort of ancillary assets like in the crypto currency world. all sorts of things are being very highly valued do you worry about asset levels and the effect on financial stability from the federal reserve raising rates on those asset values >> i do think asset values overall, i'm not talking specific times overall when you look at equity marks, bond marks or housing markets, they seem real testifily high part of that i think is with low long-term interest rates that you know, that affects asset valuations so it is in the area of my

concern in terms of the economy. we could see those prices change, you know, correct in a negative way, maybe again i think related more to longer-term economic development related to covid so that's something i see as a ring on the horizon. it has been for some time. i don't see it as a financial stability risk so much or numbers banking system it's very well capitalized in a strong position. i think it's more of the kind of situation we've seen in the past, where asset valuations declined, that clearly will affect household wealth and consumer spending and have those kind of effects. it's not so much i would say a direct financial stability concern at least now given the strength of our financial system >> fed chair president john williams, thanks for joining us this morning. >> it's great to be with you happy holidays. >> i hope we can do it next year in person. happy hall holidays.

>> have a great weekend. when we come back, a good day for fed-ex and the electric vehicles we will tell you why, fed-ex shares are up. they reported a high profit and reinstated fiscal 2022 forecast. they lower tt edhain september stay tuned you are watching "squawk" on cnbc ha ha ha ha. marley? first you will see the past. excuse me! coming through! ugh! and then...the present. and finally, ebenezer...the future!

introducing the all-electric eqs. happy holidays from mercedes-benz.

welcome back to "squawk. we mentioned right before the

break fed-ex beat quarterly projection in the second quarter earnings report. last night, today, more good news on the electric vehicle front. with that, we are joined by frank holland. >> reporter: good morning, andrew, fed-ex is calling brighe delivery of these electric trucks are a tipping point fedex received the first of 500 evs in the los angeles area. fuel costs are 75% lower fedex says they could save up to 50% on maintenance the sustainable officer says this truck is delivering a message. >> i think the message it sends is that sustainability is a core part of the business it helps the businesses be more responsible, it meets our customers' needs, helps in our communities and importantly a good place for the investment

community as well. >> reporter: commercial ev competition is only growing. wedbush says it's a major move for -- what fedex needs is reliability, they need to know these -- they need to know a company is able to support them with parts and maintenance of we have that ability to scale in a way that none of the orders have >> reporter: commercial ev spending has intense competition with vehicles over these, batteries and infrastructure andrew, back over to you. >> oh, boy, frank, thanks so much it's pretty big. we'll have to see what it ultimately all means, but we're making progress. joe? andrew, thank. coming up, what to watch

ahead of friday morning's opening bell a look at some of the market internals with the strategists, just a half our away -- a little over that, from the open bell. student. you're watching "squawk box" on cnbc what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq

i'm really focused on real rates not projected interest rates. we want to make sure we're adjusting policy somewhat removing accommodation going forward. >> that was new york fed president john williams, joining the show just a few minutes ago. christian, you have a big summon i think i would be in t-bills or something, students depending on you. >> valerie, we saw the first

day, nasdaq rocketed, next day killed, down again today what should we take away from what we found out today? >> we have to remember that volatility is really elevated and has been, i think, for the last two years much as they rapid shifts in monetary policy. it's going to be voluatile for while. you see the ten-year go below 1.4 again, because we saw cases double in some areas because of

the omicron. do we look stupid talking about the fed when this is happening all around us? and that may be what's causing some of this >> i think that is critical point. for the longest time we've been dealing with a situation where the fed was not on the back foot now they are what the markets are discounting today is they will be able to manage a soft landing. i think my expectation is at some point a risk preium gets building in -- and then we take that out the outlook -- valerie's point is a good one. the outlook is for high

volatility and perhaps a treacherous market what investors should is manage their risk. >> valerie, you point out that inflation isn't totally a month tavares phenomenon there is a lot going on beyond the fed 'control. >> exactly. >> when we speak to the ceos and cfos of large u.s. companies or global multinationals, they're talking about supply chain disruptions still, and they're also talking about wage inflation. i know we just had the great news from general motors in terms of their ability to deliver electronics vehicles, but gm has also suffered because of the chip shortage, as has most of the automobile manufacturers. we still have a lot of supply chain disruption, and i think that's driving certain sectors of the economy. >> do you think year end has

something to with that >> i think some people are trying to take money off the table. particularly for clients who have uncertainly about the if you tax policy >> 2022 -- dr. scott gottlieb said they could be a short wave. if we get that out of the wave, could it be a good year? >> i think from a growth standpoint, certainly we have momentum for it to be a good year not as good as 2021, but definitely a good year the risks around that are significantly higher in 2022 than 2021. that's what people have to be mindful of. >> thank you, both happy holidays

>> happy holidays. andrew, are you still with us >> i'm right here, baby. i'm nothing going anywhere. what's the score fauci is a saint or a sinner have you totalled up the score on your twitter feed i can't decide. >> oh, i'm in the same category. you know that. >> i'm talking about your twitter feed i'm getting crazy stuff from both sides have a good weekend, andrew. >> you too. join us next week. "squawk on the street" is coming up right now good morning welcome to "squawk on the street." i'm here with david faber and morgan brennan this may look familiar because of the omicron spread, we're on separate desks, we're trying to be safe. cramer has the day