the nasdaq off by about 42, the ten-year still remaining subornly beround 1.5%. guys, we will all be back here tomorrow make sure you join us. right now it's time for "squawk on the street. good wednesday morning, i'm carl quintanilla with jim cramer and david faber. coming off the good bounce, as we watch a lot of omicron-related headlines. core pce doesn't moderate from the summertime highs omicron fears obviously front

and center. >> accomplice more from my exclusive interview with bob iger, about negotiations with rupert murdoch >> and elon musk hits back at senator warren again all the omicron-related headlines, some of them constructed, including some of the modeling dr. gottlieb talked about that today. some of them a bit concerning as we see corporates trying to rein in at least some return to work. >> just confusion. let's add in after what happening after you are finished with your course of covid, where i tested negative. dr. fauci, dr. gottlieb said five days. fda curiously silent i think the omicron optimism comes from the idea it did sweep

right through the country. i had a doctor on last night that he knows more about this kind of thing. he's saying that could be pie in the sky. who knows, david i think the idea that anything can be said about these illesses makes this less certain, which means we neat an antiviral, and we need it now. >> and we're still waiting for the fda. we got a firsthand look at bureaucracy in motion then we get the approval on monday for both the antivirals, we expect to still have available prior to the end of the year, with some, at least, some available. we're still wading from the fda. jim, it's interesting as well, your point you have tested negative now, and there is this growing chorus

of people saying, maybe ten days is too much. delta air lines saying, make it five days, we know healthcare workers, concerns, hospitals and the like, that's where we could see a significant impact in certain areas of the economy where we need people there's the delta ceo saying, you know, ten days is an awful lot. it will impact our workforce and operations and it gets back to the idea if you're vaccinated with three shots, perhaps you should be able to get back out there sooner, certainly if you're going to be surrounded by people who are also vaccinated what kind of cockamamie country are we that delta's ceo is the

leader david, you're a healthcare worker, you have to be out ten days and we have a wave of omicron that goes to mostly unvaccinated they get mad at calling these unvaccinated you want to saint them i thought the president was pretty strong about this the thing is it's ten days for the healthcare workers, then what happens when the hospitals overflowed it's obvious we see a lot of chaos, then maybe the fda will address it david, doesn't the fda feel like the punion? >> you have called out the cdc any number of times. it's been almost two years now. >> the only time the cdc was important was in "walking dead" season two >> but my understanding it's a matter of signatures, too. and we need them

woe need them now, given the rising cases of omicron. given those that are unwilling to take vaccines, but are willing to take errant virals. >> we have regulatory red tape on the even virals obviously you need more data on the quarantine the uk is moving toward a seven-day quarantine to your largest point, dr. gottlieb said it's threat working at this remarkability substacks out of the eric topol, saying our admi administration is continues to take an aggressive tact. dr. gottlieb said there's no excuse for the at-home testing that could -- that should be

free. >> we should have been doing it all along. allowing consumers to come in and buy four tests for $5, some small price, limiting the number of sales they can get, but making sure it got into the hands of other consumers that's what other countries are doing. allowing people to buy a certain allotment when they come into stores. >> where are the 500 million tests going to come from binax now, which is the one i take every day, they're hard to find we went and got them -- you had to get them from stealth sites, none of the drug stores have them around here i think the president must be dreaming dr. topol, he said the moment we have the pfizer data, that's a very easy drug to make, so the defense -- he's saying that the defense production act,

the government should go to pfizer and say, listen, we need ten drug companies to make this pill it's not a hard pill to make and we have to have 90 million now, not 200,000, but who is calling the shots here if dr. it optopol were listened we could have the drug in a couple weeks, but that's not the way the country works. yesterday the president's speech, while very forceful, left me to think, okay, has he lined up the 500 million why not tell us where they're coming from. i don't see in the pipeline anything, unless we go to china. there's a lot of ones we can buy in china, but is that what we want in this country i would say no >> um, you need testing for the antivirals too, by the way

they're not going to be effective, because you've got to use them very early on >> how many tests do you have in your house, like three or four, but some of them you have to mail in. >> i got the 40 pack of binax. >> we're like -- you have to conserve them for only when absolutely necessary. >> i have a handful of binax >> it is really incredible, carl, that we are in this situation where they create a system where you can get insurance rebates on tests, and if the stock exchange has lines around the block to test, doesn't it remind you of, i don't know, how about march of 2020 >> well, actually that doesn't remind me of march 2020 at all --

>> i mean, testing-wise. >> there's clearly lines, but as the president said this isn't mar 2020, broadway is not shutting down. you know, i think those comparisons mao might be a bit harsh. >> we're just snow where to testing as we were then t everything else is great we're much better, no lockdown, anything like that it's just my experience is you've got to be able to stop this thing i think we have -- how many outbreaks there are, and otherwise, yes, we're much better off it would really be helpful to know who is healthy and who is not. >> we were going back and forth about an outbreak in a building. it is very difficult to contain

if you don't test. however, it's great that we're hope i think we should be even. i would just like to know who should stay home. >> you're right, although -- well, particularly this time of year you're not going to see a lot of people going to the office as we've seen, many companies are pushing back plans to return to office. but, yeah, there are -- this is incredibly transmissible thankfully very few of them, if they have three shots, are getting particularly sick. look at the two of you, thankfully. >> rights. >> that's where we stand. >> the other thing, carl, people are looking at the south african data it went straight up, and the caseloads are starting to come straight down. so there is hope, as severe as it's been in terms of transmission, it will be quick, and perhaps a return to some sense of normalcy, or at least

prior to the onset >> a.p. has a good headline the noticeable drop in south africa may signal it's peaked if that's true, you would be looking at a surge that happened half the duration of delta's with clearly higher case numbers, but some of these charts out uk, i mean, the broken ratio of cases to hospitalizations is witone of te most encouraging charts we have to go on. >> there's a lot of encouraging things the one that i think will be most encouraging -- dr. topol hinted at this -- when is the vaccine worse than the actual illness? i was just knocked out by my third moderna. i missed a whole weekend of my life i was only hurting badly one day

from omicron at a certain point, you have to say, wow, if omicron is not as threatening as the shot itself, we're getting back to work if this thing becoming the dominant strain, look, by february we could be back in town we have to see what the wave is like when we get to the south where there's so much anti-vaxing. >> of course, all of this, the implications for the economy, and for the stock market remarkable episode of "mad money" where jim talked about the possibility of a decline in early john wear. in the meantime a bunch of calls on williams sonoma, darden, cat, apple and a lot more we'll take a break and be back in a moment. don't go away.

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when we did the fog deal, it was always through the lens of the scale of needing success in the digital platform space none of it was viewed as a traditional media play we knew that we are buying on

traditional platforms with traditional models, but in terms offal value creation, it was all tied to the growth of digit at platforms globally more about money with rupert, less about legacy of the acquired properties? i don't know when you say money per se, but rupert was very focused on the scale that was necessary to be successful in the media company in a new world, particularly with incursion, if you want to call it that, of the telling companies getting into the media space. he was genuinely concerned about house hi company was positioned in that marketplace, and thought his shareholders, including his family, would be better off combined

>> do you feel like that's been a successful deal? obviously then we ran into covid and so many different issues sitting back now, are you happy? >> yes first of all we divested certain suspects, including sky, which went to a high price. >> thanks to our parent company. >> you were the one that told me at though point, that they pulled out of -- >> yes -- >> -- but it signaled they would be even more aggressive about buying the controlling stake in sky. we reduced the size of the acquisition by a significant amount, and we also sold off the rsns, or the regional sports networks >> which was a good sale, by the way. >> looking back, see what we now see, our timing was efficient,

so we have the scale and the diversity of content to attract a diverse subscription base or audience without the fox assets, we wouldn't have that. of course, we talked a lot yesterday about the incredible track record of getting the founders to -- but the fox deal was the largest by far that iger ever undertook . >> first, mccarthy, who just

extended her contract to july of 2024, the reason why that's important is she's a steady hand one of the things i wish iger had talked about, do you think the deal could be down now with the people in washington >> no, it's hard to imagine of any deal of a significant size in any industry like that, could typically get done yesterday, for example, he shared when we talked about the idea if steve jobs had lived, they would have had conversations about apple and disney getting together, and he thinking it probably would have. you can't imagine something like that in this current environment ever being contemplated, let alone get to the finish line, unless there's a willingness on the part of companies to go against the u.s. government. 2022, we may start to see that there are certainly companies who will want to pursue things

they're being told t. you want to do it, expect you have to go to court you probably could win, but it's going to take a while. >> i really feel like facebook got the jump the avatars that they talk about, you've got ton in that. i also like sports and gambling. that's another thing they're not doing. i think the status quo at disney is starting to upset people. it seems done for now. you know, you have to take the assets, put them online, make them into a world that you and i can visit without having to go to disneyland. >> well, we're going to find

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asia fared fairly well overnight on the heels of our rally here in the united states, but a downgrade of baba

yesterday. there's some continued headlines about its cloud unit today out of bloomberg we'll get the opening bell in just a few moments

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>> announcer: the opening bell is brought to you by -- all right. welcome back usually i can't get jim as to top talking about stocks when we sit in our office at 3 on the nyse meanwhile, for this mad dash, you want to talk about vaccines. >> i want to be a little bit hopeful. we go have a christmas rally going on david, i don't usually read the "defense one" magazine, but the u.s. army creates single vaccine against all covid and sars variants, researchers say. this is walter reed research, on a vaccine that works on everything they even think other strange to come, so, david, if you want

something to cheer, it could be the u.s. army and what they're doing. this would be rather remarkable. who wouldn't want to be in that trial? >> a number of people have noted that story this morning, jim don't know if we'll have a broader impact and and don't have a lot of details, but to your point, something that would act against any coming variant could be quite helpful >> right so you get the pfizer, and david, what is the pfizer news scheduled? >> maybe later today. >> what time is the -- >> maybe they'll get the signatures later today or tomorrow morning i don't know i've given up on that. >> remember, the fda was incredibly organized, really knew what it was doing, when peggy hamburg ran t now it's a great source of mystery. it's like the evidence lab

>> there's been some questionable things over there, not to mention the biogen drug why did they approve that? >> governments around the world are vetoing it, biogen is in trouble, but people on the panel all voted against it who is the fda i would prefer saying the people at -- to run the country. france has canceled its order for the merck antiviral, hoping to received, instead, the pfizer drug before the end of january. jim, talking about levels, looking at trader positioning, wondering how long that can last it sounded like you were

conditioning viewers to maybe look on the lookout for 10%, 14% correction early next year. >> i think we can spike here one of the my favorite commodity analysts, carly garner said, look, this is an unsustainable advance from the bottom in 2020. there's never been anything like it i just want people to understand, we're in rarefied territory. we've been going up and up and up, and garner's word said basically it's not historically been sustainable i believe in the santa rally, but then my crystal ball does get clouded if we got, say, the pfizer pill but i think we are a bit glib about what could happen with omicron dr. topol saying if -- just go back to the old days

it's going to be another really bad covid. the cyclicals are running. i don't understand why big-cap tech -- you mentioned amazon an outage at aws, isn't amazon the gold standard? >> there is apparently some power issues, david, for users of aws, at least on the east coast, but certainly not the first time we've seen interruptions in the cloud the last couple weeks. >> no, there was one, as you pointed out, only very recently. oracle used it to their advantage that we never go down, their cloud. >> why does everyone hate the oracle deal? it needed the growth it is accretive. i believe in ellison and katz. they don't make acquisitions unless they have a game plan oracle had a great quarter, too,

for give me for big so bullish about larry ellison. they're some of smartest people in the world cerner is very good. medical records matter so health care is like the last holdout from being in the cloud and being digitized. so i am pro this deal, trying to get saffer on. >> last time i talked to her was around the people soft deal, so i think you have a better chance than i do. >> i am a huge fan. >> maybe the fda can use their services and help and sign off on things more quickly if they digitize. >> fda has that level of clarity. remember the nih, dr. fauci comes on, he's in charge of media.

>> yes, okay >> he's the media guy. come on, really, i don't know, whatever you say david, it's never been this did you see functional i've never seen it like this meanwhile, how many days have we been saying they have the pill and now they say, we don't have the pill yesterday, but we fast-tracked that biogen drug, which i can tell from you my work with the brain foundation -- that it doesn't work it gives you four hours less of alzheimer's. >> carl, i think he needs to get out of the quarantine. i'm starting to feel that. >> he's never been this dysfunctional, jim i know we all have short memories, but i remember 2020. >> so do i

>> well, i just -- >> okay. look i don't like the testing situation, i want no lockdown, i think it's great that everybody walks around i'm in the assume the risk camp, you have to expect that you can get covid. if it is this omicron, and you've been vaccinated, well, again, i was sicker than when i took the moderna, i got more sick than when i took the omicron. maybe i'm super-immunized. maybe i could give david a hug and nothing would happen maybe you could contract it next to me -- this is unbelievable. what a great time. >> there's no stopping you >> i just want the fda to come out and saying we're around, we're doing things. >> that would be good. speaking of doing things, let's move to tesla. tesla's musk, of course, may be done selling stock he has sold an awful lot, of

course, he continues that war of words with senator warren, but he's quoted as saying he sold enough stock to reach his plan, selling another 583,000 shares yesterday, and so he's at 13.5 million shares having been sold. stocks come out of about $180 billion in market cap or so from its high, jim. you know, unclear whether all that selling -- but it's certainly coincided with the decline in the overall decline of the stock, still up for the year. >> iger talked about musk? >> no, we did not talk about elon musk. >> because, remember, he was the "time" person of the year. i continue to think whatever he does is still more exciting to people in this country elizabeth warren, i don't know, she has covid, too i hope she get better fast

carl, back to you. >> well, he did talk about senator warren, to the babylon beat, and defended his. >> you were pretty mean to senator warren on twitter recently >> please don't call the manager on me, senator karen. >> she struck first, obviously she called me a freeloader and a grifter that doesn't pay taxes, basically. i'm actually paying more tax that any individual in history has paid this year, and she doesn't pay taxes. basically at all and her salary is paid for by the taxpayer like me babylonbee taking a departure from their usual

satire >> well, look, it's easy to move that's what we're learning, texas and florida and tennessee, gigantic winners, not talked around enough, but i am stunned at how strong texas is david, is it not a possibility that silicon valley would one day just literally become silicon nation we don't need to be anywhere we can be anywhere we want. >> you're right. >> you can't be in your pajamas. >> clearly we'll eventually be in the metaverse or the omniverse, being apparently whoever we want. your point is a good one many people may have seen the numbers in terms of the lack of additional population. that got the headlines, but when you do look, as you pointed out, at where people are moving, texas and florida, we note that anecdotally as well.

more new yorkers moving to florida, seems more californians moving to texas, austin, you know, i call people who are in austin i didn't do that that long ago there weren't people i knew who were sources, whatever they might be, running, you know, investment funds or companies, they're there now. so, yeah, there's no doubt that those states have been the beneficiaries of a lower taj regime and a number of other significant regulatory obstacles that exist there, that do in other states. >> david, we have a declining birthrate, we are finding, obviously we're not living as long in this country people are moving to different places is there any wonder why we don't have -- we have this incredible problem with employment. we have no immigration to speak of we're like italy, and i'm not kidding, that is the italian

pattern. it's just not a good one it means we're not a growth company. a lot of our companies, david, particularly the general mills of the world, need us to grow. we are not a growth country anymore. >> listen, i'll take it if we had tomatoes like they do in italy. then it will be all worth it >> maybe the fed can do something about that. >> um-hmm. >> you mentioned cyclicals earlier. caterpillar does get upgraded over at bernstein, they say concerns about the upgrade cycle ending are premature they point out a lot of these names tend to do weld in the early stakes of rate hikes. >> stephanie link has been pushing caterpillar on the judge's show it's levered to oil, oil is up it's not as much china as people realize, but holy cow, if we

have road building, infrastructure, caterpillar is the one. so i thought this call was really good. especially who runs it, he's terrific let's get him on the show. i'm not kidding. they're kind of like the oil companies. they're no longer reckless caterpillar is not reckless. it's really well run >> it's funny, when you talk about reckless, i immediately hear your constant refrain about ford, in terms of pulling out of the markets where the company was actually losing money, and that's not being a particularly good strategy. obviously all the automakers are up this morning, tesla, by far, the most but ford ending the year as well pretty strong, jim. >> yeah, it's just bebe ginning for them they'll have an unbelievable quarter.

they don't makes cars any more where thee losing. i do think they had to stop taking reservations from my investing club for the f-150, yet they're still advertising on the football season. it's got a good yield now, and i think that jim farley is just a cut above. he's rather remarkable he's willing this higher, and i think he's going to succeed. this one is not done it's going higher. >> a pretty good note out of adam jonas last night, looking at ford's market cap, which is roughly at parity with gm, even though ford trades at a premium to gm, and asked, what is the market seeings about gm's exposure to china or overall profit model relative to --" death of a salesman".

>> but look, there are ceos who comes in and basically shake up everything, and they are far people farley will probably race this weekend. i mentioned to him that i am trying to find the vin number of my mom's 1965 mustang. he's on the case for that. there isn't anything that this guy isn't on the case for. this mistake is this incredible motivator, carl, the mach-e has got to be maybe the most successful car of the year they want to get to 3,000 a month if they can get the chips. they make money -- he doesn't make money on cars or trucks, then he closes it. f-150, lighting your house up? i don't know this is going to be a company that's going to have a salesforce orientation truck in the cloud, yet people

act as if it's just a car company. it's so not. best-seller, carl. i think this thing has much more to go. i think it's resting before its next move. >> that's pretty good. we'll talk more about that later on. i do want to get you on apple, citi does go to 200, awfully close to street-high levels i know, katie -- on hardware -- >> i think we have souva later on. >> yes, that's a good booking. she's talking about gigantic numbers in china carl, this stock, which has stalled right now -- own it, don't trade it -- i think when you try to pin him down, he's talking about augmented reality, that's not in any of the forecasts i'm using. i think he has a bead on this thing that i haven't seen in a long time. i think that's the key to 2022

numbers. >> all right a bit of a mixed back this morning, guys, in terms of sectors. let's get to bob pisani as well hey, bob. >> good morning, carl. happy wednesday, everything. about even on the advance to decline line kind of a wishy-washy open i think the bull narrative is a bit in control we have about even on the advance to decline, as i mentioned. tesla has had a good open. energy is a big on the weak side, banks a little bit health care. semis are a little weaker, but that's a day after the micron earnings, so maybe a bit of a giveback today so the bull narrative, remember, ref this sacred santa claus rally, which starts next week, and the narrative for the bulls is pretty simple

omicron is contagious, but not as dangerous as prior variants there isn't going to be a mass shutdown that's the key to the whole narrative. if you have no mass shutdowns, you still have the bottleneck and supply chain issue easing in the first quarter. this is the way they're hoping everything will go so outside of that, the consume ser going to remain strong and earnings will be really strong as well. we'll see if this kind of narrative prevails for the moment, i think it's still pretty intact. one of the last pieces of data we'll get tomorrow, is the pce data, which, of course, is inflation data that the fed prefers here the month over month is expectations, you can see the month over month expectations have been all over the place this year, but if we get a flattish number in line or a bit below that, the bulls have

been trying to say, these peak inflation, and things will moderate in the first half of 2022, we'll see. for the santa claus rally, obviously the bulls love this. it's the tendency to go up about 1.4% in the first two days of the year the old record high of 4712 for the s&p 500, we need to go up a lot. that seems to be quite a stretch to get to a new high with these kinds of uncertainties that are out there. but it's not out of the question still, you can see what's happening here very, very choppy, a lot of confusion, a real battleground going on since powell started getting aggressive november 30th, low volatility stocks are doing well what is that defensive stuff, consumer staples, utilities, they're

doing well value is doing well. that tends to be energy stocks, bank stocks. what's slightly -- the s&p is flattish high beta, that tends to be technology stocks, very few energy stocks, and growth stocks, this tend to be tech as well, also on the weak side. you can see where things are sort of shaking out so far that's generally a playbook tesla, what's going on here, mr. murph announced he's finished selling. i just want to note that tesla is not exactly a buyback monster, shares of tesla outstanding have been going up since they went public in 2010 they starts around 4 -- now a billion shares outstanding for tesla. their share count has been going up year after year this has been a phenomenon this year we have record buybacks of the

s&p in general, record buybacks, and carl, what we're seeing is not a lot of share count reduction, because shares are getting a lot of options on the back end sunrise to hear by record buybacks what i want to hear being is actual share count reduction if they're getting options on the back end, that won't be helpful to shareholders at all carl, back to you. bob, we'll see you in a bit. we'll look at the bond report, see how treasurieser faring the rest of the curve a bit lower. the ten-year right around 1.458. final for the q3 was up 2.3, and a lot of the fed-speak will return next month. we're back in a moment

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let's get to jim and stop trading. >> we haven't mentioned paychecks at all and that's really the pay roll processer for many the look at the numbers. much better than expected. talk about a feel-good story the number of bdss expanding it's remarkable. i think paycheck is a good example. remember, they do a lot of theetsy businesses we know are empowering a lot of people at home he and dr. meano

d d dr. faust has a great pieces on what to do so omicron doesn't jam up our hospitals very bullish situation >> and finally, pretty good run game for your eagles last night. >> best in show. look, we are in the hunt if we win out, then you and i are going. >> we are. >> i think it's los angeles this year >> we'll see you tonight "mad money "with jim cramer when we come back, head of national association of manufacturers, jay tim mons is going to join us

welcome back to "squack on the street." live with breaking news. our december read on consumer conference from the conference board. headline number? 115.8. much better than exected and that is the best leveling going back to july we're looking at 109.5

a nice jump on the expectation side and present situation side. i don't have these numbers yet let's go to dianna for our november read on existing home sales. dianna >> rick, existing home sales in november, rose 1.9% month to month, to a rate of 1.6 million. and rising likely due to stronger job gains and sales still down 2% year over year 1.1 million homes for sale, down 13% year over year that represents just a 2.1 month supply should be a six-month is ply for a healthy market and the average price of a home up 13.9% from november 2020. price gains up a little bit from the month before

usually they were earlier this year up 20%. so, back a little. homes priced between 750,000 and 1 million rose 37% year over year and 1 million home -- homes priced between 100 and 250 fell 19%. first-time buyers dropped to 26% of the market from 32% a year ago. finally, the average on the 30-year fixed started at ab3.25 that's when the contracts would have been signed >> good wednesday morning. welcome to another hour of "squack on the street. can we get follow through with tuesday's bounce interestingly only one session since thanksgiving has had the s&p up or down less than half a percent.

>> we're 30 minutes into the trading session. here are the three big movers we're watching today, starting with carmax. sliding d spite beating on top and bottom lines and posting dealer sales above analysts forecasts. tesla shares rising. elon musk saying he's sold enough stock to reach his goal of selling 10% of his shares we'll take a closer look later this hour. atlantic equities down grading from neutral weight, siting that they won't see improvement in the near term. down almost 50% year to date equities looking to rebound after omicron sell-off fears joining us is all-spring global inves investments head of equity investments. ann, i have to ask you you don't believe the recent volatility can only be

attributed to omicron. what else do you think is driving the recent movements >> i don't think it's just the new variant. certainly there is fear about policy mistakes regarding the variant. but investors are climbing a pretty big wall of worries right now. it certainly is fear of inflation, fear of rising rates. and fear of potential policy mistakes that come in the future and then what does growth look like in 2022 >> there's a lot of different things that, when you end a year and enter a new year, investors are trying to factor in. and so, there's many, many things besides this variant and i think that's where the volatility has come from >> how much do you think all it

will effect what is on the monetary policy front, which are in this tightening phase right now. it's still early days with omicron, but do you think it will have more of an economic impact than the market is realizing at this point? >> i think the way to think about this is it's going to have a fairly significant near-term impact we can see it in europe and the u.s., some of the spending numbers out of the thanksgiving holiday being effected the wave hasn't really hit and i think it's gering to continue to do so. we had a strong fourth quarter and i think we're going to have a much slower first quarter. however, i think we are still making our way through alpath to get to the back end with the virus having less impact on the activity i think the economy is strong fundamentally. and we're going to lose growth in the first part of the year but it's going to come back in the middle quarters.

and the underlying picture is one of strong underlying performance but weak supply side performance. that's where the fed become as real issue into 2022 >> that presents an -- and of course, you have more technical factors getting in the way i want to quickly sums are what dan wrote, he believes it's being driven boo afactor rotation i'm going to paraphrase him. growth to value, value to growth, verses intrinzic values of their holdings and sees recent stock moves a way to add. do you agree with a notion that there is a buying opportunity to take advantage on some of these dips >> i do agree volatility creates

buyingopportunity. where i differ is i'm not a big believer in picking value verses growth i think it's more about stock selection because what's going to drive the mark in 2022, i believe, is earnings growth. and you have to pick the companies that are best apt at really being a able to drive earnings and have really strong cash flow. so, that's what investors are going to look for. what our investment teams are focussed on currently. >> i curious you were talking about fed commentary returning in the coming days. what would it take for members of the committee to, i don't want to say turn their back, but challenge powell's pivot >> i think you'd need to see a

much bigger threat, not just that growth is slowing but that the damage is going to be lingering. there's no doubt the fed is worried about inflation, tight labor markets is starting to feel the economy is resilient. there's no doubt the fed can change but right now the fed is guiding us towards a mid-year start towards rising interest rets so, we can see the first quarter performance of the economy, see how we're turning towards the second quarter and by the way, some fed officials have started to talk about march. i think that's unlikely with omicron likely to do damage but june looks like a very good likely timing for the first fed hike >> interesting thank you very much for joining us today >> thank you >> meanwhile, keep your eyes on apple today. citi upped price target from 170. goes up to 200

saying they're poised for another big year in 2022 joining us is senior tech an lsz, with a report titled "five reasons that apple stock can trade higher "i'll let you lists the reasons. >> that's right, carl. and it's great to see you. some are short term or long term and a lot of people push back on us because the stock has had a fantastic run this year. and year before and before and it sounds like a broken record they think what else can happen? what else can go good? that's why we lay out the five reasons. happy to spend time talking to you about any of them. but there's persepgds they're only going to benefit from covid. we believe covid helped them but apple 's coming out with great innovation said for 2022

i wish i was shoulder to shoulder like we used to be and yet technology and apple devices we're using allow us to do that. >> we're going to get back there. you talk about pull forward, maybe over stated in apple's case and zero in on this head set, gotten the attention of a lot of your peers as well. what is it about this particular product launch, we think, would cause investors to reappreciate their growth prospects >> first of all, it's a new product category we think about apple watch and that was a new product category and it was very big for apple. we think the headsets will be very big for them. and let me explain something most of the users would be able to comprehend and appreciate the ability to have on a vr/ar

headset and be taught in a 3d dementioned, that has a great potential for education. and when we think about information, whether it's walking down the street, talking to other people, information about directions and things like that and gaming, vuirtual realiy gaming a lot of people are at home. this could be really neat. and we look at the small seeds that we think are going to develop into pretty big green shoots in the years ahead, as apple has been putting on time of flight. which basically measures the distance between you and the wall you can have an arc thitect com in and redo information with your kitchen and look art what displays will look like. this is exciting we see this launching in the second half of the year. the developers in the news and community talking about that in

the first half of this year. think it's a positive for the stock. >> i'm a little curious as to why you didn't raise your price target above 100 bucks just this month it's up 5% 200 doesn't seem to reflect the enthusiasm you're sharing right now. why is that the price? >> you calibrated correctly on my enthusiasm. the world is facing some challenges, david. supply chain constraints getting from me in new york, to you in san francisco, takes longer than expected boats used to take four to five weeks to get from san francisco to l.a now they're taking multiple months there are supply chain constraints. if there weren't, our numbers would behigher but demand is outpacing supply

and almost everything in technology apple's getting the fair share, if not more. more than what they're entitled to because they're the biggest company. if covid and supply chain wasn't here, numbers would be higher because demand out paces supply. i'm not saying covid is a good problem to have but demand out pas pacing supply is a good problem to have. >> it is i always like to talk about an appropriate multiple, given a large percentage is revenues being recurring. what is an appropriate multiple, given your enthusiasm for 2022 >> right now we're using a 32 times multiple, excluding cash and we have a lot of cash. the focus is going to be on their ability to beat revenues and earnings

we're above consensus and expectations but we see a multiple, which is called prices to earnings, looking at around 32 times people say that's kind of rich but for software companies, it's not expensive. and that's why we like it. and keep in mind, we believe apal, that apple will announce a huge stock buyback of around $90 billion and raise the disk dnd when we add these all together, not only forerom valuation and dividend increase, we like the valuation here >> jim, i just want to ask you about one more risk on your bullish thesis you mention that remains among the biggest head winds for achal. what do you mean by that and do you think it can have had an impact on the stock? >> that's a smart comment and keep in mind, regulators want to

make sure the small, innovative company doesn't come -- and apple charges users when they download apps and they make purchases online and through the app store and some people don't like paying that let's be honest. apple charges on a high end, 30% and on the low end, 15%, to the developers for buying things from the app stores. nobody likes to pay money. when you go to a grocery store, you don't like to pay a markup, but you like to. it allows them to keep everything safe, where you've been, who you're talking to. i value that privies and i value the convenience. they're saying is the 15 to 30% too much and they're looking at market-share data.

in a global, only 15% market share globally and in the united states around 30%. they're looking at the android system and saying are these two operating systems putting people at a disadvantage. it's been coming down lower over time we expect the headline to be lower than the impact to financials politicians and regulations and changes to antitrust and antimonopoly, all of that takes a lot of time. when this news hits, it's the opportunity because it's not going to impact cash flows or earnings >> jim, we'll talk about the car at a future date a tough story to get an edge on but interesting note and we're going to watch your rating and your target, as always >> happy hall days to you, your viewers, your loved ones and we

look forward to seeing you in the future >> thanks, jim we'll go to break. here's our roadmap for the next hour including chief jay timmons as the presidents is set to mee with the supply chain task force this hour. >> and more from my exclusive interview with bob iger as his chairmanship comes to an end >> and crypto investors are hoping for many more coming to lle new year wi they get there? ♪ (doors knocking and bells ringing to the music) ♪ - [announcer] this holiday season, give the gift of grubhub.

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once again disrespecting travel trips it seems like we're getting mixed messages on what we should being? >> they're anticipating a big boom in cross-border travel, hoping namesic, like booking holdings but the spread of omicron has more americans canceling international trips. steve hoffner telling me searches are down 33%, compared to 2019 levels and that the shift to domestic is even more pronounced in the next few days. people are canceling going

abroad to traveling locally in warm weather locations and they're telling me that testing is high on the list. finding locations where it's easy to get the test to insure you're not spreading to family members. analysts are favoring some of the travel names best positioned to do well in an environment where travellers stay closer to home airbnb, and names like carnival are higher after the cruise line said it's only seeing a small spike of cancellations due to omicron. and 63% of respondents are ready to cruise. that is down slightly, about three percentage points from last month one encouraging sign is those canceling, a higher percentage are rebooking for next year, verses opting for a refund as the desire to travel is only getting stronger, despite the

variant. carl >> thanks very much. as we go to break, watch shares of cater pillar above 200. and up the stock to out perform. say concerns about the end of the machinery cycle in 2020 were overly done. if you wake up thinking about the market the right moves fast...d we get decision tech. for insights on when to buy and sell. and proactive alerts on market events. that's decision tech. only from fidelity. ♪♪ in boxing or any other business,

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. one of the things that always blew me away is i would come to parks and people would thank me and i'm like i should thank them for their business and they're thanking me. how many people consume products and thank the company for selling it to them >> might be the last time at disneyland as the company's chairman >> it is this is the last time i am walking through this park with a title, with the disney title, anyway yeah, i feel it.

>> you're staying pretty stoic, though, i have to say. >> i promised myself i would stay stoic i must say i feel it inside. it's powerful for me i love this company. i love what i've done, love this park and our parks in general. more than anything, just seeing people so happy, you know? it's quite something >> that was bob iger's last walk through disneyland, of course, when he and i sat down discussing his long career, the challenges ahead for the company he led for 15-plus years stepping down as chairman a few days from now. but was a great moment and the park itself, was pretty crowded. we got early that was the opening crowd there. and you do have to wonder, given what's going on right now with omicron, whether that will continue or whether there will

be some diminishing >> we're talking about whether this is peek difficulty in dealing with omicron i remember when disney closed the parks. remember what a historic moment to that, because really 9/11 is the only an log. hopefully disneys found ways to mitigate it where it won't be necessary. >> this is not march of 2020 or april 2020 we're at a different time and despite some of his frustrations, we have made a great deal of progress and leslie, we would expect that we will not see, and obviously listening the president yesterday it's clear, we're not going to have anything approaching the kind of lockdowns we did previously. >> i like whd he said how often

can you be a ceo of a company and have people thanking you for soling them the product. fun fact i worked at an amusement park going to college from high school i get the vibe i know what it's like to walk through an amusement park -- i was a performer there. so, people would thank us. >> you're raising more questions than we have time to go through. >> a 1950s review show a good summer job. anyway, the national association of manufacturers talking build back better, supply chain issues and a lot more we're back in two. as i observe investors balance risk and reward,

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welcome back here is your cnbc update at this hour at omicron cases surge before holidays, testing is making it

hard to find at-home kits and resulting in long lines at testing sites, like this one this morning, the head of the cdc said it is safe for people to fwagter if they're fully vaccinated, boosted and careful in the days before getting together >> so much about the safety of your gathering has less to do with the plane or train ride you're going to do to get there and very much to do with the behaviors you have in the week prior to your gathering. have you been practicing those safe prevention strategies or have you been gathering in indoor settings without a mask on because that's really when your exposure would have happened >> and the last 30 minutes, the national hockey league announced its layers will not be able to participate in the winder olympics outbreak of covid has forced dozens of games to be postponed. they'll have to are reschedule them for february.

and the national highway safety traffic association, looking at something called passenger play, that allows video games to be played while video games are moving they want to see if a driver is distracted by a game being played by a passenger. >> meanwhile, supply chain issues are the top thosk hour at the white house this morning president biden is meeting with u.s. officials, his supply chain task force, various private sector ceos to talk about bottle necks at other disruptions joining us is jay timmons, president and ceo. i wonder if you can give us where you think you are right now and whether or not omicron is set to undue some of the progress we've made. >> first and foremost, i want to assure all parents that santa

clause is making contingency plans. the elf on a shelf delivered something saying there may be pictures, rather than the actual item as thing coming in late. how we deal with this systematically frankly, the number one thing everyone can do is get vaccinated and boosted manufacturers are very focussed on making sure the workforce is safe and healthy because that's the only way we're going to be able to contribute to the economic safety of our country we're really pushing that message and hoping that, as we see results of omicron that folks are going to take this even more seriously. get not only the vaccines but the boosters too >> are you focussed on quarantine guidelines and whether they need to be shortened? >> that seems to be the latest

information or question that's out there right now. we're listening very closely to that because if science does indeed suggest that we can reduce the quarantine times, obviously that would be very helpful to any business anywhere in this country. i'm interested in the data and the science, quite frankly >> jay, it's david supply chain, obviously, issues continue you dressed them for a moment. you have an awful lot of job openings in manufacturering. put it in perspective to me how many jobs there are. >> so, we have 1 million open jobs in manufacturing. to say that's a record is quite the understatement before the pandemic, it was half that at the worst part of the pandemic, 300,000 open jobs. today we have an enormous amount of demand in our industry and we

simply don't have the people to actually be able to make the products that people are demanding. which again contributes directly to the supply chain shortage we have right now so, fromthem and working in partnership with the institute on a platform called creators wanted we have to get those back into the workforce today that are either taking a pause or trying to figure utwhat their next step is what we can say and it's well known is jobs in manufacturing pay more than any sector of the economy and i'm so proud of the record of safety that our manufacturers have been responsible for over the course of this pandemic >> jay, those of us who have ssa and done interviews for decade can remember any number of

politicians, whose goal was to create manufacturing jobs. what i hear you saying is we have the jobs, we don't have the people i'm curious as to what this administration conceivably can do or is doing to help address this >> i think you need tacomplete comprehensive plan to make sure manufacturering is stronger in the united states than anywhere in the world we're only 5% of the global market we want to sell things to the rest of the world. to your point a manufacturing job and why politicians care is because it supercharges the economy. today is the ninety-four-year anniversary of the tax reform legislation that was signed into law in 2017. and what that legislation did was it really did supercharge investment in manufacturing, job creation or at least openings and wage growth. and that is good for this country.

now, our job as manufacturers and the business community and frankly, the job of policy makers is to make sure that everybody, especially the graduating seniors and those who are in community colleges trying to figure out what their career path is going to be, making sure they understand there is a job waiting for them in manufacturing. that, by the way is not just a job, it's a rewarding, exciting career that can last a lifetime and bring their family into a much higher level of the economy. >> so, jay, when you think about some of the new projects online and cap exin states like arizona and texas, are you convinced labor supply will meet that as well and i'd love to get your take on whether the chips act is getting more traction on the hill.

>> which chips act is critical and not letting china, quite frankly, clean our clocks. when we have republicans and democrats all worried about china and what china's able to do to the united states in terms of over taking us economically, the first thing congress can do is get the chip act passed literally everything, including the toys santa will deliver, rely on those chips. we've got to have much more capacity in the united states. i do believe the workforce will come back. this is a long-term issue, no doubt. we've been talking about this -- you and i have been talking about this for probably ten years. and when we looked at this ten years ago and said it was 100,000 or 130,000 short in the

manufacturing sector, that was a crisis at that point and now we're ten times that so, clearly we've got a jock to do to make sure folks understand the great technology-driven jobs that are available in manufacturing today and we've got to make sure that folks understand the economic impact, not only for themselves and their families but the community and nation as a whole. >> yeah, no doubt about that we look forward to talking with a lot more frequency in the weeks and months to come happy holidays >> happy holidays and to everybody, get that vaccine, get that booster it's our ticked to economic security in the country. >> still to come a breakdown of elon musk saying he's sold enough of his tesla stock. and coin base down more than 20% in the last month but oppenheimer naming it one of the top picks for 2022

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the bull case for stocks into next year and beyond. that story and more on trading nation.com more "squack on the street" coming up. on my travels across the country i came across this house with water dripping from the ceiling. you never know when something like this will happen. so let the geico insurance agency help you with homeowners insurance and protect yourself from things like fire, theft, or in this case, water damage.

now if i had to guess i'd say somewhere upstairs there's a broken pipe. geico. save even more when you bundle home and car insurance at geico.com. with omicron cases surging across the country, restaurants and night life destination facing yet another rough winter. own and operator of seven bars and restaurants, primarily in new york city hotels give us an update of what you're seeing on the ground, in terms of staffing problems and whether people are still going out >> thanks for having me and best for jim and a speedy recovery. hopefully you guys didn't get infected obviously, omicron has had a big impact we had a lot of corporate events

that cancelled i think fortunately, with omicron, as we know, the is symptoms are mild. i'm not making light of anything but tourism is down. a lot of hotel cancellations but so far we're hanging in there pretty well. >> as somebody, obviously, who livables in new york city and walks around a lot, you saw a great deal of life returning over the last few months and tourists steam be coming back as well as is typically the case but give me a sense. how does it compare to 2019 or years past >> i wish you had me on 30 days ago, i would have told you things are looking great but obviously, since omicron has been spreading so quickly, our business is off. people are still going out if you've been vaxed and boosted. you know what the symptoms are likely going to be tourism is down. it's difficult to travel here

from europe and asia hotel business, we were hoping was going to rebound dramatically has not happened. sports teams are canceling all that has an impact on tourism. now they're talking about canceling new year's eve in time's square. like i said people are still going out. we still have a business that is surviving and we're doing okay >> scott, danny meyer of union square hospitality group was on "squack on the street" this morning and says he's going to require boosters for diners in his establishment. do you plan to require boosters for people looking to dine in your establishments? >> we mandated vaccinations before the city and state did for our employees. we said it's for your protection and the guest's protection if you're boosted, the chance of

getting really sick are minimal. so, why not do it? we've been having to check vaccination cards for a while now for people coming to our restaurant i think it's part of the new world for the to near future and something we're going to end up having to do >> what about staffing >> staffing's been a problem the last two years and it's not a question of finding people but some are coming down with covid, people are coming down with the flu and other people want to see their families over christmas and don't want to take the rick of getting covid before they're with their parents so, staffing's been an issue but fortunately we've been able to stay open. we've adjusted hours in some locations but we've been able to manage and a great staff that is really diligent, hard working and understand it's our livelihood they pulled us through the past

18 months and they're sticking by our side and doing an unbelievable job >> given that and what the hospitality industry has been through almost two years at this point, yet another blow right now. can it survive in its current form or does it depend on how long the latest wave lasts >> we're definitely going to get past it. if we've made it past the 18 months, we're getting past this. it's tough it's a heavyweight fight i thought we were done and we were the champs. now they asked us to come back for a few more rounds. be nice if the government stepped up again and was able to help a little bit but if not, we're going to survive and i believe people are still going out and they're social and want to go out. we have opportunities to expand. we're looking at other markets, like all the people going to second home markets. you know, we're look ing at

different opportunities. we have to be diligent, careful, protect our staff and then get boosted when they can. >> appreciate your time. thank you. >> thanks again for having me. >> close to session highs here when we come back this morning on tech check, tech rival, ilr inhetrleand t meantime, we'll be right back.

>> unless i sell shares, there's no actual mechanism to pay tax so then i was like, should i sell 10%, you know, in order to pay tax? balance said yes and i sold enough stock to get to around 10% plus the option to exercise and i try to be extremely literal so that you don't need to read between the lines, you can just read the lines.

>> that's elon musk talking to "bob lawn bee" that so sold 10% of his tesla stake his stake increases as he exercises some options, but it does look like the selling, at least on his part, is done for now. >> we don't know how much that was pressuring the stock in terms of actual pressure or psychological. your point is a good one of course, he exercises options that are incredibly low price by the way. and in part that is generating the tax that he needed to pay and so he will have completed that he amazes me i don't know, he is arguably, it's easy to make the argument the most single important business person on the planet and shows up in these weird places to have conversations it's just fascinating, you know. >> or at least we know about them i assume there are other business people that show up in weird places and we just don't know about them. >> i don't know, leslie, maybe

bezos was showing up in places in terms of speaking his mind. maybe one day he'll show up here we can always hope i doubt it, unfortunately. but it is just interesting to listen to him, obviously, as he continues to -- he hates paying taxes, that's clear. he made that clear >> bezos did go to space, which is a place most people don't usually go but robert frank of cnbc points out that he actually, according to public filings has sold 13.5 million shares, not yet the 17 million that would have equated to about 10% of his holdings so, you know, kind of begs the question, will he actually sell more to get to that level or is it kind of one of those rounding things where he's done at this point. we'll see. still, the most actively traded stock on fidelity's platform today presumably on this news. let's get a check on the markets as we head to break right now. the s&p up by about two thirds

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welcome back b bitcoin on pace for third straight year of gains our kate rooney has that story for us hey, kate. >> that's right. crypto is more than bitcoin. i have been talking to some of the top ceos and investors in this space the big thing that they're really watching is regulation. for bitcoin keep an eye on some of the cross border payments and investor movement, as well but on regulation, that really is a big thing they're watching and also a focus on building applications on top of block chains some call that web3 new uses for nfts, as well. bitcoin adoption and brain drain from big tech. this year really laid the ground work in washington, especially with recent hearings

expect treasury to pay more attention to stable coins and financial stability. crypto-specific bills and updates on a central bank digital currency and a push for a spot bitcoin etf ceos, though, still see what happens in d.c. as the biggest uncertainty right now in the space. >> you could imagine a well-intentioned regulatory posture on stable coin that maybe even someone ends up banning them in the united states there's ease risk that the regulatory framework ends up not working out in the u.s. and that really creates a lot of head wind for this space. i'm optimistic that won't happen >> on web 3 some expect tension between silicon valley companies like meta and crypto startups that are trying to build decentralized networks nfts meanwhile are evolving

beyond art into club memberships and video games and questions over which block chains developers will choose to build on been etherum so far but becoming viable options, as well. for bitcoin keep an eye on sovereign adoption as i mentioned el salvador's big move people are watching cross border payments and things like the lightning network which tend to speed up the payments, as well as institutional adoption finally, that brain drain i mentioned ceos telling me they have gotten a lot more applications from big tech and from wall street guys >> all right thank you for that crypto outlook. of course, let's get back to the markets here briefly before we send it over to tech check we talk about tesla but those shares continue to surge higher and mr. musk perhaps done with his selling but trillion dollar market cap as much as having shaved $200 billion off its

highs. the broader market right now, leslie, quite strong that will do it for us on "squawk on the street. "techcheck" starts now. good wednesday morning welcome to "techcheck. i'm carl quintanilla with john fortt. top 22 pick and they all have a different catalyst and price hike for apple and the bear case for robinhood. then meta, twitter, pinterest the latest to pull out of ces. how they're approaching travel and the workplace amid how in