will behave. we try to look at history as a guide. every variant is different the way people react to these things and the consumer behavior affects the way the economy functions. >> we're at our lows on the broader market now that's going to do it for us on "squawk on the street. let's go over to "tech check" which starts now happy monday the today's stocks are lower across the board the major averages on pace for the fifth down day in the past six. ev stocks falling on the unlikely passage of the build back better bill

li linkedin cofounder is with us this hour. we'll talk where he's investing in 2022. julia. >> let's start off with today's sell off the dow down more than 600 points mike is back with us tell us what you're watching right now. >> another pressure point, obviously, from all the news over the week about this other covid, we're coming on top of this monetary tightening in 2022 just weighing on what was the optimism trade about the commit economy. the difference is there's not a lot of optimism being translated back into large cap tech stocks. the nasdaq composite is below the origin where it was in early september. the s&p 500 is right around those areas. it's been under performing the apple had been essentially almost single handedly hold

things up. apple with a bit of a pull back from that really vertical move that it had. obviously, in a much better position than the rest of the markets. not too far off of highs it shows you how dependent the nasdaq had become on all that. we had oracle looking to make a softer merger. up with of is sub themes of the market has been a selected group of old tech stocks like oracle as well as things like hewlett-packard and others you see dell have done quit well relative to the nasdaq 100 which is more o of a farks ang like index. this isn't applied to everything it does show you how we are come to stage where more reliable cash flows matter a fair bit starting with a low valuation before this move a will the of those companies were relative to where things were again we're seeing people's optimism about the secular winners wane at the same time that the

economy, perhaps the outlook wobbles a bit. that tells us why we're in fix that we're in the still down like 5% from an all time high in the s&p 500. >> mike, we really are seeing a divergence within the tech sector as you look at the companies that really benefit from the stay at home play and the fact that the omicron news is so concerning, despite those concerns, we're not seeing those stocks move higher across the board in the way they did move in tandem with the covid news. what do you expect from that >> that's a real big divide between this episode and the prior ones.

how big tech has largely held up, not in every case, but largely held up better than some of tech overall. is that when mna adviser to happy in this kind of environment. we going to be talking about oracle ease bid to buy serna for over 28 billion. these are companies that have cash and looks like the prices are coming down. >> i would say to the degree

that is palatable for the regulatory front, the ingredients are there. it reminds me of a paler version of the post-2000 peak where i remember in that bear market for tech, it was common to see some of these fallen angel type tech stocks to be trading below the cash on the books. yes there will be an mna phase out of this. you don't know if it will be a mop up phase or strategic moves to say we have a chance to latch on and get some acceleration in those areas and still pay a premium. i think it will happen i don't know that will the thing that gets us to sort of regroup here in the markets in the next week or two. >> indeed. mike, thank you. oracle officially announcing what would be its biggest ever acquisition. they plan to buy medical record company cerner for about $95

share which will be about 23.8 billion in equity value. that deal would be expected to close in 2022. one of the biggest in a record year, reporting u.s. mergers have doubled in 2021 to more than 2$2.5 trillion. this year could top off a year of gains the stock up more than 40% year to date. it's an interesting one. i remember that deal not just for oracle but all of tech oracle people soft almost 20 years ago. it was over a third of this amount that oracle paid around 10 billion >> yeah, that was a long time ago now john i think what's so interesting here is, yes, this deal helps oracle as it continues to its pivot toward the cloud but also health tech. we cannot underestimate the

opportunity and the fact the pandemic has shed a light on how much of the health care system still needs to be digitized. still need to be brought into the cloud and so many efficiencies that are there that need to be seized in this moment where we're relying on the health care system >> let's talk more about this. where do you focus in this environment. joining us on where he sees opportunity web bush security head of technology, joel let's start off with oracle here i'm kind of drawing a parallel to people soft almost 20 years ago ago. that was focused on hr in is a more specific industry bid it has implications outside of held care because there's dod contracts involved with cerner and the health technology you need >> i think oracle, investors

aren't loving this deal in the nearby term. the all cash deal is a little bit kind of taken negatively and will probably impact the credit rating but as you touched on, microsoft kicked things off with the nuanced deal and as julia described there's a lot of inefficiencies in the health care industry and it's not digitized yet. we need to head to that direction.

supply issues but now especially that we're not going to get this build back better thing for better or for worse. we're starting to get recalculations on what that nen means for demand that has questions on revenue and growth. >> someone mentioned it on the previous hour about this being a stock pickers market it's really never been truer i think the biggest issue for tech is the shift from the fed and global central banks that's the big difference this time

the kathy woods of the world, i think the bid will be spotty to say the least. when i'm talking to my client keep a bit more defensive so whether it's microsoft, large cap spectrum, look at i.t. services waer we're still many the early part. they really benefit from this digital transformation trend they are not crazy expensive moving down bit to the semiconductors again look at marvel then kind of semiconvicequipmene are the arms dealers

>> joel, name some names which are the companies that are the top sells right now. >> there's a long list of them at the top of the list is ro robinhoods it was at the heart of the meme frenzy that we saw it led to the over estimation of valuation and growth trajectory. i think data points to names like robinhood peleton was out there as a work from home play people aren't rushing to buy new bikes and more of tech name, docusign last quarter was a disaster. they confessed that pandemic tailwinds faded a lot faster than they expected and faster than the investment community

expected i don't think you can touch it for one or two more quarters >> docusign and peleton benefitted from the work from home trade we starpted off talking with our colleague make about the fact we're not seeing those stocks react to the negative news about the omicron omicron variant the way they used to i'm wondering how you're watching this latest covid news. >> you're not seeing a rush to buy these stocks i've been a vocal bear op f zoom that's probably the one stock that benefits. it does feel like the schools will shift to remote learning to some degree which is my fear and a lot of other parents biggest

fear heading into '22. that probably benefit the sky was falling on them a month or two ago as the last print was a disaster they probably get a near term boost from offices shutting back down schools doing more of a hybrid set up as well if you had to pick one, it would be zoom. >> here we go with dow, s&p and nasdaq all down about 1.8% as you're saying that thank you. >> take care >> i really hope they keep the schools open we see the dow down nearly 1.9%. s&p down 1.8 and the nasdaq down 1.85%. we're joined by linkedin

cofounder. tech check is just getting started. it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. only comcast business' secure network solutions give you the power of sd-wan and advanced security integrated on our activecore platform so you can control your network from anywhere, anytime. it's network management redefined. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities.

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every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. the current environment being called the mother of all cycles saying the compounds growth rate will move from 4% to

8 to 10% in the coming years adding past valuation methods won't be helpful in determines how far the stocks can run >> we're talking to some top investors about where to look into 2022. a few of the hottest silicon valley areas for growth include the metaverse, web three the nec gxt guest is an investon all three of the areas always so great to see you i want to start off with the metaverse. this is an area we're talking a lot about. you're an investor in roblox how much dro you think this

concept will be dominant in the tech trends next year in. >> it's already huge right now we're speaking through the metaverse. the internet is almost an early version of it. i got involved very early. my first product management job was worlds away. ready prayer one other kinds of things where lot of people get into much more immersive environments i think you'll first see that in entertainment. you'll see that like 3-d hang out spaces become more of a concert. i think they will see more i think it will be a ton of investment in it i think we're in another huge cycle. >> so much of this depends on how you define the meta verse.

there's all of these different factors at play. i want to ask you about the company known as facebook, now meta what do you make of its pivot to focus on the meta verse or do you think meta will be the dominant platform? >> they have a lot of raw assets billions of people, a lot of communications and presence. they're one of the drivers of this i don't think that the i think the real cases will come down to use cases.

it's more focussed on gnaw communications environment thinking that the meta verse will be the thing past your phone and a bit of what i was gesturing is i think your phone is already the meta verse and the it raerations of a phone. not we're all wearing goggles in march of next year we like seeing each other. a lot has to do with looking at people's faces that's the reason why i think it will require this entertainment oh kinds of jumps before we get to well is it a communications platform >> i like looking at you i don't want to see your avatar as sure as i know it's cute.

some good stories over there i want to talk about health tech oracle has announced its bid for cerner give p your sense on what the real important investing trends are here around companies in health tech that are regulated they need technology that's accurate there's a lot of spending. the impact is potentially big. why the investments in health tech and where should that go? >> we have been seeing a lot of it actually even before the pandemic be lucky, the issues are on mental health and everything else we thought was a huge area to grow. i think that the silver lining to what is otherwise the thunderstorm of the pandemic

we're allowing precision medicine previously it was clocked from regulation isn't just the slow product development. it's slow go to market makes it much more expensive and the risk factors hutch higher. we need innovation here is causing a bunch of innovation on the areas i've been paying a lot of attention to. it's like where does the internet and health precision, where does it tie to ai in order to kind of bring in new therapeutics also across a wide environment of elements and i'm serving on the bio hub where we're trying to fix infectious disease. >> you mentioned regulation where it's a big impact as crypto currency. i'm looking at the cryptos

today. bit coin down almost 1.5%. you're in coin base. you're in a number of nft plays. what's your current outlook when it comes to crypto currency in light of regulation? >> well, i'm one of these people who very bullish on crypto and bullish on regulation and government involvement i think the two of them together is super important and to get a sense of how important this web 3.0 and financial infrastructure is part of the prosperity unlocked in the entire modern world is creating new financial instruments to be able to allocate capital to which products you build and how do you direct labor and all the rest financial infrastructure to make it tangible, credit cards greatly increase percent because you can buy things and it's not available and you can

do things online the web three revolution is a similar thing. maybe it will make banging cheper and you could have more global commerce and the ability to do anything from asset and hedging to kind of the way that purchases or even escrow might again to see some purchases commonly there's all this innovation. what we're seeing is this ton of developers one of things we do is we look at where are all the developers going. that means there's a lot of future possibilities with the gesture of regulation, one of the things that matters is this has the work for society. you have to not have, you have to make ransomware hard.

you have to make criminal activity hard. i think that's part of the evolution i'm hoping to see is the benefits and more of the turning the knobs on making regulation and the criminal activity, regulation easier and the criminal activity worse. >> fascinating tough we also love getting your insights and great to talk to you today about web three, meta verse and crypto currency. after the break, why citi is staying constructive on software we'll braeg down what are the most debated names some of the stocks have cratered the major averages remain down about 1.7 to 1.8%. that's the dow, the s&p and nasdaq we'll be right back.

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stocks selling off this morning getting a check on some of the biggest laggard s on the nasdaq 100. we'll have more on this morning sell off in a moment first, let's get a news update with frank >> good morning. here are your headlines at this hour shares of moderna have given back their 7% pre-market spike it was triggered by the company's announcement that a third dose provide significant protection against the omicron variant. it also made a case for the government to allow a larger booster saying doubling the dose producing two times the antibodies but it acknowledge add trend toward a adverse reaction from the increased dose carnival is higher the cruise company says the omicron variant has affected some near terms bookings, it plans to have all ships plan

cruise by spring 48 passengers on royal caribbean ships tested positive for covid. starbucks said it will bargain in good faith with the newly formed union the company would prefer a more direct partnership but will respect its decision back over the you. the massachusetts attorney general just now announcing the indictment of a russian national and a multi-million dollar scheme that involves insider trade and hacking. >> this just breaking within the past couple of minutes. officials announcing the arrest and indictment of a russian nat national he was arrested in switzerland on march 22nd. extradited on december 18th and charges unsealed against him just this morning. the didn't of justice is saying

he engaged in a long running scheme along with four other men who have been charged here but are at large in order to hack into computers in the united states, obtain inside information from american companies and trade on various exchanges based on that inside information before it becomes public the department of justice explaining it this way take a listen. >> they hacked u.s. networks, stole inside information and ch cheated honest investors out of millions of dollars. >> the department of justice is referring to this person they extradited as someone who is a russian national with extensive ties to the office of the president of the russian federation that on its own sort of makes this an intriguing case. we'll get more detail in terms of exactly how this case unfolded over the course of several years. the department of justice and the fbi saying here that these

russian nationals profited to the tunes of ten of millions of dollars from what is a long running scheme here to hack into these computer systems and obtain this material, non-public information before it's released to the general public. back over to you >> sometimes they hack the data and hold it hostage. sometimes they trade on it : let's take a deep dive on the software sector. joining us city analyst tyler. welcome. interesting balance of risks here you've got comparison with the s&p which has been kind of propped up with wibigger tech. you think certain software names look attractive here versus that >> that's right. thanks so much for having me good morning and happy holidays. i think as you mentioned, the

s&p earnings growth by in large has been the outside contribution has come from the large tech form like the salesforce, the microsoft, the service now. if you strip out the nontech names, the revenue growth and earnings growth is lower than the software sector. we think if you take a step back and look at a name like microsoft, for instance, you're not paying two times the valuation multiple as you are for the s&p. you're getting more than two times the revenue growth and earnings growth. we think as we look at what's happened throughout prior downturns the resiliency of software has definitely held up and we think that can continue to take the sector higher in the next year. >> tyler, i wonder what's normal sochl these valuations are pretty high both for big tech in the s&p and for the likes of mongo db and snow flake even

though they have come off a bit. what qualifies as an attractive entry point when we don't know what demand will look like in '22? >> it's off the question if you focus on fundamentals, companies that we expect to have robust selling conditions next year, maybe driven by company specific business models that are seeing reaccelerating growth, we think those are the names you want to own. those are names that we think can really differentiate themselves versus the rest of the sector they play into this theme around the refactoring or recreation of companies data architectures are based on our work we think will be a really important theme next year our analysis suggest both these

companies can sustain devaluations in their forward revenue multiple and still out perform. we think those names look interesting. >> tell us a bit about this category and where you come down on some of these stocks whand wt it will take you to convince you it could be a guy buy going into next year? >> salesforce has been interesting.

the issue was when they reported their earnings in november, you got the margin expansion but growth came in bit lower than expected it just kind of feels like the company hasn't been able to string together both the growth and margin expansion that's what we're really looking forward to into next year. we're looking for that growth. >> zoom and docusign, we have been asking the questions of whether the names benefits are going to see a positive impact from this omicron wave i'm curious if your outlook is impacted by this slew of news about how bad omicron could be or if it's impacking your per speckive at all?

>> i think it's still a little early to fully assess the impacts. i think one thing that's clear is we're not going back to the early lockdown days of the pandemic while i think zoom is going to be an important technology going forward, i don't know that these various waves of covid are having an impact on the way people are purchasing the technology as you mentioned, docusign had a disappointing quarter here and we still like docusign over zoom we think that growth story is a bit earlier in its stage of expansion. we think they are facing less competitive market you have zoom, for instance, that's going up against microsoft teams. we think on a relative basis that docusign is the pebetter pa here >> thank you >> thank you turnening now to supply

chain struggles. i spoke to honeywell ceo late last week about how tightening supply, inflation is affecting business now >> in inflationary environment is here. i would say we saw it already in q3 in q4 social security accelerated. it's been an exciting operating environment. it makes it for a very, very challenging operating environment. the demand environment continues to be superb demanding is running hot now it's a kind of battle and

we're using a series of tactics to mitigate the inflation and some of the supply chain challenges >> we'll see what happens with demand in '22, julia also talking about sustainability being an important theme. >> i do think a lot of focused are focused on sustainability. >> yeah. to some degree they anticipated it we have been in this environment for quite a while. companies have had time to make adjustments.

we'll see to what degree they are able to use the plays. >> let's hope the challenges aren't too bad at&t is the rare stock they say peleton is better position than cable next year. the price target goes to $30 we have more about that call and others like it on cnbc.com/pro we'll be right back.

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and at genesys, we're proud to help them help you everyday. welcome back the nasdaq moment ago touched lows of the session. it was down over 2%. it's rebounded a bit the dow and s&p both down about 1.8, 1.91. >> publicly traded auto makers all moving lower over the weekend. senator joe manchin said he won't support the build back better bill with passage unlikely there could be big implications for evs and ev stocks phil is looking at that market impact phil >> remember the build back better plan, that has in it the allocation of greater incentives

for electric vehicle purchases when you look at what might be on the table, if this is revived, it called for 12,500 per union build in the u.s 7500 per non-union built that would be applied at the dealership you take it your federal tax, many people believe it's nice but it's not the same as if you were at a dealership and say, take 12,500 off of the price of that vehicle the real question is what will this do to the adoption of electric vehicles. it's been increased. this is lmc auto motive. most are in line with this forecast of ev sales topping 2 million by 2025. not all auto makers are able to offer ev incentives. you can't do it with tesla you can't do it with general motors both of them have used their allocation under the current

formula. you do not get to apply those. state credits, local, that's different. on the federal basis, they're not there. we asked the president of general motor, does the lack of an ev expansion or credit expansion, if build back better, if it dies, this is what he said last week about how they are planning for it with or without the build back better bill going through. >> that plan is very much dependent on that but ithat's wy to look at it. >> that's the key. it is an accelerant. wesee greater ev incentury tifrs but right now, it's not there. then the real question becomes what do we expect for ev sales without those expanded incentives over the next couple of years >> what have you seen happening

with ev stocks it looks like it was up around 179 a hshare. today it's off around 91 earnings or quarterly results. didn't inspire extra confidence. what's happening >> well, with regard to rivian, a lot of people piled in before the options kicked in. there was a lot of excitement this was going be the next tesla. they still may be the next of c portfolio that could rival tesla. it was clear so many people pile into stock before you could really value where the company as at. they are having some growing pains if their report they came out with last week i think moe anall most analystse report and said it's weaker near

term than we expected but nothing major. i think inverstors are trying t figure out how do you value it >> i guess we'll see what this sentiment around ev given what laws pass or don't, how that feeds into that. thank you. speaking of business investment, a survey of the cnbc technology executive council found that omicron has not altered executives out look for 2022 yet of the 44 members surveyed, fewer than one-third said omicron changed the outlook a little and none said it changed their outlook a lot. tech executives are excited about the outlook for a number of technologtechnologies about 18% say they are excited about the prospect of machine learning explaining ai was third at about 9% we're back in o. main ch tw

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spider-man soaring past high expectations the film grossed $587 million worldwide. the second biggest opening weekend ever behind one of the avengers movies. that including more than $260 million in the u.s 100 million more than expectations they raised the domestic numbers

after the film did better than expected on sunday the film benefitted from a beloved superheroes and critics scoring a 99% on rotten tomatoes this morning, dee riley reiterating its buy rating saying the industry is well positioned for a box office surge next year. it's also a win for disney, which controls the majority of the marvel universe with sequels to dr. strange, thor and black panther set to come out next year now, in another sign of the value of premium content and brands, disney and google's youtube agreeing to a deal after disney's 18 channels briefly went dark on youtube tv over the weekend. saying even though disney's channels were missing, they're still applying a $15 credit. disney saying quote, we appreciate google's collaboration to reach fair terms consistent with the

market now, we can expect a lot more battles like this one as carries weigh the high cost of content, especially disney's content and espn weighing that against declining ratings. so watch out for more standoffs and more blackouts >> the new reality of premium content distribution just like the old reality of premium content distribution i've got to say, that spider-man, i saw it with the family no spoilers, but there was more cross promotion in that movie experience than the super bowl you had cross promotion to sony's stuff to disney stuff with dr. strange and what not it's become an important piece of the franchise >> it's a crucial piece of the franchise and i guess the question is does this mean we're only going to be seeing superhero movies in theatres because that's what dives people

out of their home into the theatre. we saw some of the other movies this weekend not do so well. they didn't have superheroes >> half expected a lead into the 11:00 p.m. newscast into the movie. now if you couldn't watch your favorite youtube tv channels over the weekend, there was a good alternative tech check it's also a presideodcast you can listen anytime, anywre 'lbeacli in a moment [laughing and giggling] (woman) hey dad. miss us? (vo) reflect on the past, celebrate the future. season's greetings from audi. what is... an overpass?

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let's get a get check on the nasdaq 100 the annual reconstitution of the index took effect today. the index having a rough month down 6% with last month being its third negative week in four. it's down 1.7% they added six new companies -- those stocks all lower in the past month so what did the index lose cdw, fox, cerner, check point software, trip.com and insight it is worth pointing out of the

six companies coming in, only fort net reports positive earnings on a gap basis. interesting trend there. so we're going to keep an eye on those and more metaverse stuff coming tomorrow. and now, let's get to melissa lee and the half >> welcome to the halftime report in today for scott wapner. major selloff on wall street as the omicron variant takes a grip on global markets. is the santa claus rally in jeopardy should you buy on the big drop our committee today -- let's get a check on the selloff at this hour major averages on pace for a fifth negative day in six. dow jones industrial average down by one and three quarters percent. s&p 500, 1.6 nasdaq is down 1.6 russell 2000, 2.4. here's the lynch pin here. th