and well. >> brian, thank you a lot. thanks, mike a quick final check on the markets. the futures are still indicated up this morning. nasdaq has pared its gain. oil turned negative, so keep an eye on that, too we do have an opec meeting today and tomorrow mike, we'll see you back here tomorrow morning, and going to hand it over to the gang on "squawk on the street. jim, i feel your pain here with the makeup see you later. >> good monday morning, welcome to "squawk on the street." david faber, welcome to 2022, starting the way last year ended, with decent premarket gains. jobs friday, of course, the bond market is closed, along with china, japan, uk and canada.

aim three indices coming off a positive >> and shares are surging after reporting record q4 deliver yes, sir, and another nightmare week to passengers in the air more than 13,000 u.s. flights canceled from christmas each through new year's day it is a comment on how corporates are navigating this pend, jim, the way in which it's gotten guys like you and me. >> i think a lot of us didn't know we had it until we tested i do believe it's going to set back the economy, in part, because no one knows -- look, the airlines being the extreme no one knows what's going to happen it's just not a normal time. david, when it's not a normal time urges that does not make big accelerate.

i noticed you guys are eight feet apart i guess that's why you're apart. we're not together management is doing the best they can here, trying to keep everybody safe i'm alone. my internet is not working, by the way -- >> that's impressive >> carl can't give it to me, i can't give it to carl, i can't give it to you. >> no, so you should be next to me no reason not to be next to me other than i got a memo saying you won't be next to me.

is the omicron, thankfully is a milder variant in this it's spreading so quickly, management, schools are grapple ing everybody trying to figure things out >> if we have it, everyone is getting it, and you can't tell from pcr, we're getting the first break that we've had in this pandemic. which mean you can get it the day before, which, carl, i'm sorry i gave it to you, i didn't

know i had it, but no one talks about the fact that the tests don't really work. can't tell if you have it. we all continue with this giant charade, and no doctor says the tests don't work you can get it midday if you tests anything tiff. got the disease at six and they won't admit it. no one will admit that the pcr test does not work >> it's a definite fog of war. even dr. gottlieb saying we're catching maybe one of every ten cases, given the spread and the unreported antigen tests

we're working with it with the variant, the outbreak, the circumstance remaining if focus. dr. fauci weighed in yesterday on the destructive nature of this -- >> when i say major disruptions, you certainly see stresses on the systems, people with any kind of jobs, but with critical jobs to keep society functioning, we already know there are reports from fire departments from -- and sometimes 30% of the people are ill. that's something we need to be concerned about. >> goldman and jeffries with dated guidance

>> i've seen some pilots are being offered triple pay >> all indications that things will be haywire for a few months if you aggressively raise rates. i'm sure people will say -- the economy is not red-hot the economy is completely stalled. it's and i want to know what everything -- that's the key question will all listen to dr. gottlieb. he did indicate his expectation it will be only a couple of weeks, perhaps even by the end of the month, certainly in the new york area and/or other areas of the country that are see significant case counts.

>> we've said this before, so i appreciate there's diminished credibility. this will not going to last very long we'll be in the throes of this wave of infection. i think you'll see infections peak off london, which is new york city is about two weeks, hopefully we're done with covid for a while. we'll have numb immunity in the population >> so powell listening to gottlieb, what is he thinking, jim? >> all the stuff that teem said would happen were wrong.

>> i just think the salespeople won't be there people are sick it's rolling i always look at the nfl so many meme -- the covid list reads like a triage at the hospital i think we have to recognize we have to burn through it first. the envelope obviously can't test for it correctly. you they that shows up in fed communication that q1 is a write-off? >> if it doesn't, it should. >> i think powell is pretty smart. i think if you try to figure out

how many truckers are going to work -- you think everybody will be understaffed. look, i'll someone catching covid, whatever. everyone is closed on the whole block. no one is open that's being duplicated, because i check all over the place it's not just -- what's happening with the rest of at the company. it's hard to have good sales when you are closed. >> the data will keep coming so put up with some hot prints jay powell will say the people

who compile data they're yegg their stocks roll off in the second half, but these are companies that let you know at 2:00 whether someone is working, but the compilation is to biweekly. i know the labor department is trying to get an upgrade, but to upg upgrade, david, would mean we have a better sense of the upgrade. so government, no, it's mandated by your abbott test. i guess you have to introduce that, certainly if you've been triple vaccinated, it would seem, and dr. gottlieb comping

the chances you're going to be in the hospital are very, very low, and we don't treat the flu like we do this. obviously this is much more contagious i do wonder whether we at some point even the mayor of new york city indicated this. >> look, i think -- what i hear people, again, a couple of my friends got it, all right, i have a good four days, i'll talk later. they said, well, we only knew it because we tested every day. >> i do think there's a lot of people that they shortened it to five days.

>> if jay powell wants to know what's going on, look at netflix numbers, look, with day five, you feel terrific, day two you feel terrific. i'm not minimizing people who get really sick, but statement you don't know you're going to be sick. how many times can you watch some of these shows. >> to jim's point, this is affecting the air lines, as the omicron outbreak does result in thousands of cancellation. phil lebeau has updated numbers this morning >> not good numbers. there's been more than 15,000 flights canceled over the last ten days of last year all the way into the beginning of this years. these are the late it's numbers

from flightaware more than 1800 canceled today. yesterday 2400, 2700 on saturday we've seen this day after day after day, maybely because you have two things happening. staffing shortages behalf covid, the omicron variant hitting the air lines hard and at the same time you have some winter weather. put those together that's why you have the airlines stocks under pressure. they're indicating higher. why? when you talk with people who are looking at the airlines, they're all saying the same things is it the end of the world

no tripling the pay for the pilots to pick up and an extra flight in january that's one way they're dealing with the shortages then you've got jetblue. it's cut back its flights by, what, 1200 all the way through january 13th robin hayes putting out a note that the next few weeks will be stuff. it makes you wonder if we're seeing a bottom for the airlines stocks, at least in the near temple, we knew january and february were not going to be great, it's worse than we expected, so let's look out to the second quarter and third quarter. >> i agree we could get a bottom in consumer travel

a piece this weekend set business travel is just not going to happen. so, phil, like what happens, you know, look, if goldman can't go to work at their office, they're not flying i can't believe they're not a microcosm. what's going to happen to business travel? >> i think near term it gets pushed out even further. we're starting to hear that when you talk to the executives, it's more of a challenge than we thought it could be, but jim, i believe. you saw this in the fall, when you start to see offices up, more people going into the office, you start to see an increase in corporate travel i think that's likely what we're going to see in the first half of this year does that mean you're going to see corporate travel come back all the way to pre-pandemic? that's not what i'm saying what i am saying is the indication, and it's a small sample size, but the indication is, if you go back to last

quarter, when the offices reopen, you start to see an increase in corporate travel >> yeah, ces was a good example. a kmpts they tried to hold, and a love the attendees said, no, not yet. tesla shares off to a fast start in the new year. and in the next hour, mayor lightfoot with her strategy to battle the pandemic in the windy city a bunch of names on chips appeared software. more "squawk on the street" is trait ahead.

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get a great deal for your business with the ready. set. save. sale today. comcast business. powering possibilities. at thtesla is up sharply. for 2021, deliveries exceeded 936,000, up from the previous year, jim, of about half a million. pretty good return in the face of all of the supply chain challenges >> phil had a good report today, saying you'll hear that volkswagen has an ev the ford has the lightning for the f-150, but the problem is those guys don't seem to make cars that compete, so i know there's this very good analysis

about toni sacconaghi, and the gross margins great, but where is the supply chain problem when it comes to the full-featured semis? they're not there, yes, some of it is the magic of the man, but don't look at it as a standing target nvidia was always expensive, but when you went brack, it turned out not to be expensive. don't look at it by car. look at it as what he can create, maybe there's more to it, look at it at customer loyalty, and just make a point it's a grande technology company, and companies do not tend to be valued by units >> today it goes to 1200 from 1,000. last week in your absence we made note of --

>> i know jim farley, he's so glad that we can stop saying, wait a second that's worth ten forwards, because his company is finally worth more of somebody they have to get the truck out of musk, and, david, when i look at ford, what you basically see, saying 250 to 300,000 ev this year, the internal combustion engine is valued at negative, what how bad is that thing? have you ever seen something worth less tan an internal combustion engine? >> we should let our viewers know you're kind of making light of that, indicating at least this stock in your pin is, what, cheap? >> if you just -- if you close the i.c.e., you get a valuation

much more like lucid or rivian i would say, david, lucid is at $62 billion, they 345i6d made 300 cars, okay ford is at 83 billion, and they'll make millions of cars, but their cars are -- they're internal combustion engines, their trucks are, so lucid, i'm looking at rivian, ford and looking at farley and saying, are you kidding? you don't think jim farley is saying that? >> they may be carl, the transition is happening, and maybe moving faster, the chinese ev makers as well we'll get to them a bit later,'s up as well because of the strong deliveries there's a lot. evs being sold. >> norway, 65% of the market's evs.

>> they had a snowstorm there, and all of them shut down, for heaven's sake. still to come this morning, cramer's first mad dash of the year as we count down to the eng llopinbe don't go away. if you wake up thinking about the market and want to make the right moves fast...

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bell. >> bank of america says it's time to buy citi that's astonishing citi is at 61. tangible book value, you know, we don't even know where it is anymore. we keep hearing 78 haven't been able to buy back stock. they dropped a bomb at the end of the year about buying back stock. the reason i say this is -- i'm not a big fan of citi, but i think they're doing a good job, but there are stocks, selling at five times earnings. many people say, look, everything is too expensive, but carl, the one thing i would say is there's a lot of stocks that didn't run, citi being a great example. the big technology companies were responsible for a lot of the gains and a lot of software services with ipo stocks just crushing us. i look at citi and i think, wow, the biggest discount i have seen to tangible book -- i don't

think this is -- >> wells got an upgrade over at barclays. >> charlie scharff, this is his year. >> people are arguing you'll need to see less curve flattening. >> you also will have to see both regulatory for citi and wells. charlie scharff needs to take a lot of the costs people are saying nothing is cheap in this market open your eyes goldman sachs sells at six times earns. both of them can't be happy with that i just think that, whoa, wait a second that's not expensive there are some software -- by the way, the most expensive stock in the market is what i will recommend, snowflake. >> really quick, the big board,

newly appointed chair of the board ringing the bell, and i am cur curious, there are some picks with microsoft -- >> man, come on, i'm so bored. boring is not a way to think of invests. is that it ic have said that five years ago. today, semis, they like nvidia and amd, intel, but you cannot criticize an analyst for boringness, because sometimes that makes you money you we were they were more creative -- >> the goldman call on chips was the barbell. secular growth, and cyclical growth, low multiple micron. on semis in there. >> jim made an interesting point about how nvidia has never been

cheap, but justifying what people were paying when it was expensive, 100, 200, 300 points ago, jim on amd i would know still waiting for the xilinx if they have to -- as of the 11th of this january, it's china they're waiting for. still has come for that deal. >> a lot of people think that deal will be terrific. you have xilinx with a multiple situation, and that's when advanced micro dash in the same way, david, remember when -- and it's supposed to be can be nvidia buys arm? but that seems to be a little stillborn. >> yeah, that seems less likely to occur than this deal. waiting for the regulatory

agency in china to finally approve it, but you can't have a bit of a delay if it doesn't bum before the 11th of january, they have to refile for nvidia a.rm, other than to say it's a tough road. >> well, nvidia is really going to be a story about waste, cutting back waste that's -- when you have a digital -- you have to shut down your factory line, you can look at what needs to be changed, what's being wasted. jensen feels very strongly, that the planet needs to cut back waste. it's one of the things he wants to do. the digit at twin and the avatars, it will be a year for them and a year for meta i think the meta platforms company chronically underestimated, because people don't understand it. i think that we have a big et indication problem, teacher

shortage that can be involved, david, by meta, by wra zuckerberg wants to do the labor shortages -- jay powell, policelease listen -- t shortages could be done by jensen huang i'm sorry, pat gelsinger, that's an inhibiting for intel, but not nvidia >> yeah, all that may be the case i'm still not quite sure of the idea of mark zuckerberg being involved in any way with the education of any children. >> that's untrue that's untrue. >> okay. >> that is untrue personally >> personally what

he 'been involved in educating your children? >> no, no, i talked to him. >> i know you do you educate him. i didn't say that was a bad thing. >> no, i think trying to get him to emphasize -- >> just the whole idea of classes -- >> will you stop it works >> you think it's going to end well >> the man is not some sort of each incarnate heally not the grim reaper, not the appointment of samarra >> he's a very powerful human being. >> he's a guy. he's got good ideas. he's a guy with a metaverse. >> just a man and his metaverse. >> 2022 could be the year where teaching -- i'm liking at carl, because you're too skeptical. >> you're on the hunt for case studies when it comes to metaverse. >> absolutely.

it is avatars i think will -- that's why those stocks are buys jensen is like, why haven't they called me? they don't know that jensen is a great guy, and they think i'm crazy -- well, you know, whatever, empirically. but i think the avatar works why haven't they called him? because they're oy strstriches >> i don't know enough about the broader issues, carl, beyond what we have all read in terms of the affect that at&t and verizon are saying no, thank you to the faa it may, in fact, mean there could be some delays in terms of -- with airlines, but, um, it has to do with the spectrum in question here.

they're not backing off. they want to launch the 5g services that's where the dispute stands right now. we know it's a different year. we mentioned it many times for many of these stocks, at&t, verizon, t-mobile, all of which are quite competitive right now in terms of using their networks and/or offering all sorts of potential discounts, whether it's on devices or simply the plans themselves we've seen significant competition from the likes of spectrum, that's the charter offering, and our own parent company comcast, competing to a significant effect with the big players. jim, if you watch any football, you can't get away from the spec troubled ads that's verizon's network they're selling 59 awfully lot cheaper than verizon is. >> we haven't even mentioned apple yet.

when i watch the t mobile ads, here's $1,000, i mean, i don't know carl is pretty compelling with a thousand dollars phone. >> a lot of discussion is the wedbush note on the demand outstripping supply, pieces about the coming year, recharging the phone line. >> i have the watch, and there's an ad -- i saw it -- my friend was in a terrible accident -- >> you mean the apple 911 -- >> yeah, yeah. the 911 ad was the best ad i saw yesterday. what people are doing is they literally are talking into their watch and getting rescued. everyone got rescued in that ad. that was like better than nci and all the other shows. who watches -- i get if you're in quarantine you watch them, but people are talk to go the

watch. i'm putting that in the positive category. >> i won't dispute that. i saw the same ad. >> what duid you think >> very effective. rob lowe is also saving people from the ice he was wearing that nice hat he looks amazing he never ages. >> does he get up in the morning and say i'm going to make $10 million and knock off a couple shows. when we watch football we're exposed to a lot of ads. the f-150 lights up your house i know more about america from those ads. it's just incredible the more time-outs, oh, my god. >> there is no problem with the ad market right now. >> no. >> it sort of reminds me of digit at advertising i'm seek booking holdings higher than before thanksgiving with some of theth travel-related names are hanging in there

cruise -- >> it is cdc says if you cruise, you're crazy thank you, cdc, for coming back with something that would very pertinent in february of 2020. now they tell us you know, you talk to frank del rio, who runs norwegian cruise, he has a profound view he says omicron is everywhere. what are we supposed to do it is. omicron is in your -- it's like -- these are the body snatchers. >> it is. >> it's everywhere >> it's everywhere, and hopefully will spread quickly and not cause nearly as much problems, though again, we don't want to forget hospitalizations are up, but thankfully icu admissions are nowhere near the percentage increase, jim back to our previous conversation at the beginning of the show, what do you do if you're a business? a school how do you approach this a year ago at this time, hardly anybody was vaccinated

so, yeah, you took us back to covid, jim, but at least we got some stocks in there >> david, look, the big issue here -- and it's one of my resolutions, i don't care if you don't get vaccinated i am done begging people to get vaccinated people are so sick of me i'll see you in the playoffs >> diminishing returns on convincing people. >> i ain't no communist. >> it does remind us of twitter personal ineptly suspending the account of congresswoman manmanner marjorie taylor greene >> we talked about covid, bernstein you said the updated cocktail will create some revenue beats in the year what >> that would be great

that stock sells at nine times earnings how the heck did that happen with you great growth engines. a lot of people think pharma is cheap, because the reconciliation bill basically says a lot of people are making a lot of money off of -- i don't know where you are on medicare being ability to negotiate drugs, david, but it distill only over. >> yeah, it does that's an important point you race in terms of medicare. against, we're dealing with biogen, an important decision. i know how you feel about the drug if you look, jim, at the companies we most associated, of course, with the vaccines, pfizer had a great 2021, moderna as well. both are down rather sharply, and he sue some of the other names that are vaccine makers, all getting pressured.

i would take a look on the other side of that with what's called the bank group, which is up rather sharply, jim, with all the names up you've got them all up at least 2% over jpmorgan. >> people are looking for something cheap. my travel trust owns morgan stanley, i don't know, 12, 13 times earnings seems crazy i think pfizer remains cheap pfizer is a great company. it was not a great company for a very long time they got rid of the generic stuff, one of the worst performers out there, and i would still own pfizer i think it's a great company i want to go back on biogen. any companies where all the doctors say you shouldn't approve it, and the fda approves it, that's strange we would ask for an investigation. if any other entity of the government did that.

nih, cdc, fda, they are all act as if they're private companies that have no scrutiny. the fda in particular has no scrutiny. >> wow speaking of which, the fda has expanded the pfizer booster for kids as young as 12 now. >> okay. >> final hurdle is still to comes. that news was expected today. >> how about five to ten days, how about three? how about six? >> fog of war. >> no one has any authority. nih, you have fauci speaking -- two years into this, we still have three different parts of the government speaking. we have no idea what the fda says where is the pfizer pill we don't know. someone asked, how do you find the pfizer pill? if you're rich. >> at the antiviral, they're going to ramp up supply very quickly. merck's peer review is

moribundant, it's still effective, but doesn't have the drug interaction as plaxovid, but they will be here soon. >> that will be the end. >> that's what gottlieb has said. >> i love gottlieb by the way, he's on the board of feedser and illumina you just should have bought the two stocks he kept telling you pfizer and illumina they have this incredible test that can detect cancer i wish he had just said i'm on the board of two companies you should own that was never his style never. too bad. those are two winners. let's get to bob pisani. good morning, bob. >> hello, guys happy 2022 great start. remember, a lot of the world is

closed lo london, china, so off so a great start. the semiconductor etf is us shiite of a new high there's two big sectors starting, but some of the more cyclical groups, defensive groups, so once again it's tech and a bit of banks, if you look at the big tech mover, amd, marvell, all goldman top picks, by the way, for 2022 all also, it's a deck dominated market the whole weekend was dominated about the tech bulls, a lot of the bears are arguing, this is the year for value to finally shine. the bulls are saying earnings and revenues will still le great. the bears are saying, this is it the fed's actions are going to

finally slow down, the enormous technology/growth juggernaut that's existed for the last 10, 12, 13 years we've never seen growth outperform like this in the last ten year, but particularly the last five years. i'm going back to 2009, the s&p is up over 400% since 2009 since the fed started getting aggressive with the great financial crisis growth, mostly technology, this is 13 years, value, which is mostly banks, energy, pharmaceutical, these are amazing differences, historically value has outperformed growth, but not this dependable indicate, certainly not the last five years, so the die bait is along these lines that the fed will finally -- a lot of the bulls, they're still very aggressive.

the predict over the weekend is going to be tech again revenue will exceed the 10% street expectations. tech stocks as of prices will be up 20% in 2022, the chip shortages will eat in the first half of the year, so he's very aggressive most of the tech people i follow, they're equally aggressive on this the big argument for the bears is the tech valuations are crazy, and the federal reserve will be more aggressive. he says, and this is a quote from him, while tech valuations appear 12re67d to many on the street importantly the growth prospects around cloud are unparalleled -- these are his words, unparalleled to any period of time that we've experienced since cover tech stocks with all of that said, the important thing is the setup overall for 2022 for earnings is terrific right now

very little margin erosion we saw. we're still 12% or so margins, quite good the bottom line is we're still at historic highs. we were up almost 50 percent the estimates are 10%. there were people still saying, carl, we're not going to do 10%. is tech going to continue to outperform and done name the stock market carl, back to you. got some manufacturing we

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bob iger begins the new year no longer as the chairman of a company he was associated with for over 47 years. you may recall a couple weeks back we sat down for a long, detail in-depth interview about his career and future for disney it is available for all. it had been behind the pay wall for the last week, no longer anyone what wants to watch it and thanks to the people on twitter who praised the interview. canos wcht wanttoat i n w do so.

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much it's something i do every year and get a kick out of it working on it during -- there was a big victory yesterday during the east and then i turned tv off. >> congratulations on that and great to have you back on set. we'll see you tonight on "mad money" at 6:00 p.m. eastern time chicago's mayor lori lightfoot on her city's battle against covid as the dow manages to climb back into the green teafr a disappointing pmi. don't go anywhere. ♪♪ ♪♪

good monday morning. welcome to another hour. i'm carl quintanilla with david faber, morgan brennan will join us in a moment first trading day of 2022. the chips are helping out, banks are helping out and chips i higher and oil down, managing to stay above 55 today. >> yeah. we are 30 minutes into the trading session, carl, here are three movers we're watching. you mentioned the chip stocks, amd up about 3%. goldman names it one of its top picks for 2022 after, of course, what was a very strong year last year not bad five years either.

a new report from trade credit insurer hermess predicting chip sales will grow about 10% in the new year wells fargo shares getting a boost from barclay's one reason why. it upgraded the stock from overweight to equal weight, expecting banks overall to outperform the market in 2022 as net interest margins improve of course they have been very low for quite some time. we'll end with tesla, those shares we've been talking about it all morning, over 9% the gain after the automaker posted record-setting q4 deliveries phil lebeau has more on that and so far weight in store as well for all the ev makers overall. phil >> david, i think we're going to be looking at the delivery numbers that come out not only for the fourth quarter but december, not only in the u.s. but around the world and people are going to say, how much of the conversion is taking place now from internal combustion engine vehicles into evs

tesla leads the market so they are the bellwether people are looking at and the numbers are clear for tesla. the growth in annual sales many people thought that they would get no more than 895,000 vehicles at most in 2021 blew that number away. delivering just over 936,000 streaks. that's an 87% increase year over year in terms of the fourth quarter, it was a record fourth quarter most of the vehicles delivered were the model 3 and y, they delivered just over 308,000 vehicles the street was expecting them to deliver 267,000 vehicles nobody was close to 308,000 on their estimates. the run rate, and this is important, it now tops 1 million vehicles that means that their production rate has topped 1 million vehicles did that in the fourth quarter if that's going to be the case, why many believe they're going to be delivering over a million vehicles in 2022 take a look at shares of tesla, deutsche bank, rbc, jpmorgan,

raised their estimates for the fourth quarter don't be surprised if you see other analysts following in line you haven't seen changes in terms of price targets in terms of this point. elon musk, when they report results early in february, it is expected he will give an update in terms of where things stand with a number of products, the cyber truck is going to get the most attention are but does he give us a better clarity or greater clarity when it comes to new models and when we might see those unveiled or introduced those are the things that people will be focused on over the next several weeks heading into that report from tesla. >> phil, it's david. you know, as we begin this new year, i wonder, are there any estimates in terms of a percentage of new vehicle sales that will be ev? obviously i'm not just thinking tesla here. >> yeah. >> i noted sales number from the chinese ev makers were strong for december do we have an idea what that number might be?

>> we don't know what total number is going to be for ev sales last year. worldwide about 3% to 4%, somewhere in that range. that's the expectation for 2021. here in the united states, david, the expectation is that in 2022, about 4.5% of the vehicles sold, all vehicles, will be electric vehicles. now that number is likely going to go up a little bit, that percentage, might go closer to 5%, but not dramatically higher than that. we're just starting to see a number of these automakers ramp up their production. tesla can ramp up production quicker than others. the established automakers in the united states, still getting theirgiga factories and their battery production up to scale we're not going to see a dramatic shift in terms of raising estimates for ev sales this year in the united states >> thank you phil lebeau. let's turn to the latest on omicron with the daily average of new cases spiking to over 400,000. that was over the weekend.

meg tirrell has the latest for us >> hey, david. news just now coming out from the fda on boosters for 12 to 15-year-olds, clearing the pfizer booster for that age group. the fda also shortening the time period for everybody to get a booster with pfizer from at least five months, between the second dose and the booster. currently it's six months. they cleared third doses for kids immunocompromised between the ages of 5 and 11 this, as the omicron numbers are just eye popping as you said more than 400,000 daily cases on average being recorded, sometimes more than 500,000 in one day of course, this is a drastic under count doing we're not doing enough testing and the rapid tests don't get reported to public health authorities we're not seeing hospitalizations and deaths rising at the same clip. hospitalizations are going up and there are concerns about strains on the health care system deaths are essentially staying flat at 1200 to 1300 per day,

still a very high level. we have been looking to clues from south africa and the uk as to what pattern of omicron might be here in the united states the pattern in south africa looks promising. you can see the case spike was higher than they had in the delta wave previously but the deaths haven't come near where they were in the spring with the delta wave so there's a hope we'll, of course, see a similar thing here in the united states meanwhile, the cases are important because we're seeing a lot of flights getting canceled and hearing about shortages of health care workers, so this idea that the cdc has folks stop isolating after five days if their symptoms are gone has been something that has been done to help the economy there's been pushback they didn't include testing at the end of that. dr. fauci suggested over the weekend that might change. here's what he said. >> you're right, there has been some concern about why we don't ask people at that five-day period to get tested

that is something that is now under consideration. the cdc is very well aware that there has been some pushback about that looking at it again, there may be an option in that, that testing could be a part of that. i think we're going to be hearing more about that in the next day or so from the cdc. >> potentially expecting as soon as today or tomorrow to hear from the cdc an tlupts the question then is going to be, how do you get a test? back over to you >> thank you meg tirrell. the major indices are mixed to start the new year just right around 4770 this morning. so south of that 4800 line. joining us this morning, morgan stanley private wealth manager sherry paul and jefferies market strategist david zirvoes good to see you both. >> thank you >> happy new year. >> i wonder how you're thinking about the impact of the variant on activity and sort of the

economic disruption and employees unable to work and ha that does to q1 versus the impact on supply chain and what that may do to our inflationary concerns in the coming months? >> yeah. in many ways, we're sort of starting the year in a moment of deja vu, where everything feels the same, but at the same time, everything is different kicking off this year. with regard to this particular variant, we're back to variant volatility you know, i think what we also understand is this is a very different impact people, while people are getting sick they're not being hospitalized instead of government shutdowns this is going to rest on the shoulders of corporations and the health of their employees. i think we continue to see selective shutdowns, not surprising that the same sectors that were impacted in the early days of the pandemic and through delta are being impacted right now, but these also seem to be temporary states because the one thing that's really different is we have vaccines it's just whether or not there's

a national appetite to deploy them and we have a framework for iterating new vaccines based on variants so my advice to clients right now is what got you here won't get you there. meaning from a portfolio standpoint, you want to really look at asset allocation, stay within the u.s. stocks, add international emerging market and china as those economies start to heal as laggers squarely sit within large cap, strong balance sheets where companies can deploy capital and absorb the human cost of this temporary state of this particular variant, and at the same time, embracing innovation to make their business lines less expensive and more operational which sort of entrenches us in these themes in the pandemic, which we want to have clients stay focused on. >> david, are you sort of tightening the screens or the parameters of your framework on the assumption that 2022 will be somewhat more challenging?

>> i think you have to, carl i mean, we're coming off a 30% year in the s&p, and we're starting at a very different place, a very, very different place. a year ago, cpi inflation was at 1.1% today it's at 6.8% 570 basis points higher. you have a federal government that is just not the same back-stopping fed that it was. that's a big deal for the stock market it means the dips are not going to be things that the fed pivots on that easily and so you don't have the same kind of structure that the fed has operated with during this pandemic and even prior to the pandemic, given the disinflationary risks that were in place before the pandemic, and you have a fed that's probably pretty nervous about where this inflation picture is headed i think that's the big story for q1 into q2 omicron will keep the supply chain disruptions there. the base effects stink in q1 and

better in q2 there's a positive tail winds for stocks with lower real rates and the recovery that's continuing you know, we're more in a kind of very modest up trade idea for the beginning of the -- for the beginning of the year and then we wait and see how this inflation and fed policy story line develops in the first two quarters >> all right david, it's david. the fed doesn't have your back necessarily, not the way it has. at the same time you don't seem willing to say sell stocks you're not in that camp? >> i can't there's too many things that tell you that, you know, we have low real rates, multiples probably going to continue to expand and great earnings, we've got, you know, a world-class stock market we have a place where everybody around the world wants to invest we are the center of productivity and innovation here in the united states how can where you short that

i don't get excited about it i think -- i think the story line really is, david, just one of looking through this inflation data and if the market continues as it did last year, to not let inflation expectations get out of hand -- and we see that in the break-even inflation rates, four year forward, code word for long term inflation, budged last year, even up 570 basis points, the market never believed the long-term inflation story. as long as we stay with that, which i believe we will, it's very hard to short stocks. that said, i think the upside is a lot different this year. >> sherry, you know, last year was typical of many years in which active managers just can't get it done, at least not versus the overall averages when the s&p is up over 28% is this year going to be any different? >> yeah, i think so.

i think it falls into my theme of what got you here won't get you there. it's crucial for investors to be unpacking the passive index funds and breaking them apart to find real value and growth in the market i just want to emphasize that fed has been telling us for several years that they're going to err on the side of inflation so you should have your portfolio err on the side of inflation. and in doing that, that means that you're back in stocks if you look at where a 10-year treasury is against the dividend yield in the s&p, if you unpack the s&p, you look at where the returns came from last year, seven stocks carried like a third of the return of this market, there's plenty of opportunity for investors to step forward with clarity and awareness in this market in the way that will benefit them because the antidote to appreciation is price in your asset base that doesn't happen in cash where you have negative real returns. while i appreciate the economic

data, i want to remind investors that that data is in arrears we need to be forward thinkings and a forward thinking puts you back in u.s. stocks with financials, energy, health care. we're going to get great dividends, strong cash balance sheets markets overseas that are healing that give great relative value and you want to unpack your bond portfolio and realize it's merely an airbag for rebalancing and make sure it's liquid and add funds to hedge. the ultimate hedge where you can guarantee a loss is putting your money into cash. >> david, are you saving any space for potential black swans? big surprises this year? maybe a sudden glut of some goods or geopolitics or something regarding the midterms anything like that >> absolutely. we're not recommending a fully invested position. we're actually selling out some upside calls on our s&p longs

this year just in the anticipation of a dip at some point to give us an opportunity to get in a little bit bigger than our current recommendation size for risk assets but, yeah, i think the market is skewed as i said in the prior segment with david, i think it's a very different year than last year in terms of the starting point where the inflation outlook and the fed. that just gives you, you know, much less support on any of these downside black swan type events that you're looking for you know, usually, carl, i would say that a 10 to 15% down trade in the s&p is where where you get the fed kind of hemming and hawing and pivoting a little bit. it's more like a 20 to 25% move. that's just not very comforting for an equity. >> yeah. and yet we're going to plow ahead anyway and see what it brings sherry and david, nice to have you start us off this new year thanks so much. >> thank you >> thank you as we go to break, take a

look at the road map for the rest of the hour, including airline stocks rallying in early trade despite the more than 13,000 u.s. flights getting canceled from christmas eve through new year's day. >> the city of chicago enforcing a covid vaccine mandate for restaurants, gyms and other indoor businesses that starts today. we're going to discuss it with the city's mayor, lori lightfoot. >> elon musk, jeff bezos teegds a record-setting year of insider stock selling. numbers as more "squawk on the street" is still ahead. 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. visit indeed.com/hire and get started today. - super excited to open up my diploma whose resumes on indeed matcfrom southern newia. hampshire university. - i'm nervous, i'm excited. - [man] okay, let's see it. let's see it. - oh my gosh.

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the airline industry off to a rocky start for the new year 4,000 flights were canceled worldwide on sunday more than half being u.s. flights amid what are surging covid cases of the omicron variant. joining us is citigroup analyst steven trent let's start off with omicron what's the impact going to be on the industry you cover >> thank you for having me and happy new year we do thaipg omicron coul-- thik that omicron could have a modest short-term impact on the space, that could come from some airline employees being forced to go through five-day quarantine when they get infected and we could see some impact on demand at this juncture we think it's going to be primarily managed business travel as the main piece that's affected. >> yeah. you know, judging from the stocks at this point it doesn't

appear that investors are overly concerned. but you bring up business travel and it's a topic that we've discussed quite often when it comes to airlines for the last year and a half. what is a normal business outlook at this point in terms of travel for 2022 versus what it once was back in 2019 >> certainly so if one thinks about business travel and a normal cycle prepandemic basis, that was roughly 15% of the big three passenger volumes and roughly 50% according to our estimates prepandemic passenger revenue. now we think as we move through 2022 and even into 2023, we're not going to be back to prepandemic managed business travel levels. we think we'll be maybe 60 some odd percent there by the end of this year, maybe 80 some odd percent there by the end of next year with possibly some

long-term structural impairment of that piece. not to say that there won't anybody managed business travel, but maybe the individual who took five trips in 2019, might take four trips in 2023 and 2024 so that piece of the space still looks more vulnerable than leisure and visiting friends and relatives travel >> we've talked about labor inflation and the impact on the carriers i wonder how long it will be before we start talking about energy once again and as a follow on to that, how much cushion do the majors have to be opportunistic and try to move into parts of the root structure maybe they see underserved >> sure. certainly. so the labor piece of the pie is not going to go away we have inflation going up we have in some cases some of the airlines trying to make heads or tales as to what the

proper staffing levels are going to be for this year. and some of that is coming from not having enough staff, some of that is coming from a lot of overtime being done by some of their employees. there could be salary pressure from all of that and that's something that we think is at least partially victim at this point. when we speak about jet fuel, and oil prices at this juncture, you know, we're taking a somewhat more constructive view on that, maybe two months ago there was a lot more talk about oil prices going to $100 a barrel you know, the crude oil futures curve remains and we've seen some relief since that time. so not as immediate a concern per se in terms of the u.s. majors potentially moving into kind of new areas, i mean, they've already done a lot of that i think at this juncture, the market is waiting to see more

normalization of the transatlantic corridor where we would expect, for example, some of that wide body capacity that's been going into places like florida to get redeployed on to some of these international routes which is really where that is best suited that's how we think this is going to play out over the next several months >> right and as for some of that international wide body, i wonder, somebody asked me the other day, when the next time i'll be able to truly travel, for example, to asia for vacation given the disparity in video protocols from country to country. are we pushing that date off or is it still, i don't know, whatever your baseline is, 2023, 2024, something like that? >> great question. so a lot of that is going to be a function of what do authorities on each side of the pacific decide to do in terms of

public health protocols and how do companies respond to that global 500 companies are they telling people to travel again or making them work from home again for a while? when you think ability the transpacific corridor, arguably a little more difficult than the transatlantic corridor, partially because of stage length, so there's a positive but nonlinear relationship between distance flown and ticket price certainly under pandemic-era circumstances, transpacific is a little harder to do. i would expect transatlantic to start to look more normal again before transpacific does >> steven, appreciate your time. thank you. >> my pleasure still to come this morning, we're going to talk to the mayor of chicago, lori lightfoot, as the city begins its covid vaccine mandate. check out shares of mcdonald's

today getting upgraded from overweight toneutral at piper. the target from 232 to 282 on proprietary survey work that shows the consumer demand is entrenched we're back in a moment.

time for our etf spotlight today. we're looking at at the global fin tech ticker xinf, down double digits in 2021. one name, paypal, hoping to turn things around, upgraded to out perform based on market valuation. they do argue that tax loss selling may be behind us still to come this morning, don't miss chicago mayor lori lightfoot in the city's fight against covid. the dow uplmt aos100 points we're back in two. ♪ ♪ wow, we're crunching tons of polygons here! 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.

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i'm frank holland. your cnbc news update at tis hour a winter storm is bringing snow to the eastern u.s., even alabama, where temperatures

topped 80 degrees on saturday, got a few inches today the storm is expected to bring up to 10 inches of snow to the d.c. area. a government plane brought brazil's leader back from vacation to be hospitalized in so polo for an intestinal blockage president bolsonaro, from the latest complication from being stabbed in 2018. as it faces a surge of omicron infections, israel is offering a fourth vaccine shot to people over 60 and health care workers only immunocompromised patients were eligible. an ohio state study finds humans have infected wild deer with covid in that state similar research in iowa found evidence of the virus. scientists are worrying that widespread sustained deer infections could produce a new covid variant. that's the latest. >> thanks very much. welcome back to "squawk on the street." i'm carl quintanilla with david faber, morgan brennan is with us this morning get a check on the markets 4780 on the s&p.

markets a little bit quiet because we have a bunch of international markets. china, japan, uk closed for the holiday, but yields are up and a busy week ahead with jobs friday, some isms and fomc minutes. >> last month was the worst on record for new cases of covided at 23.7 million. the city of chicago enforcing a vaccine mandate for indoor dining and gyms and more in an attempt to reduce the spread of the omicron variant. the chicago mayor lori lightfoot joins us now why the need for the vaccine mandate, particularly because although omicron spreads rapidly, it thankfully doesn't seem to be resulting in the same level of hospitalizations? >> well, yes, we're not seeing the kind of severe outcomes that we had feared. the fact of the matter is, we have massive community spread, which means people are getting sick people aren't able to go to work and our hospitals are filling

up, particularly with people who are unvaccinated we're taking these steps as a mitigation effort and what we're hearing from a lot of folks, particularly business people, is they want to create a safe environment and they're grateful for us imposing this vaccine mandate in entertainment venues. restaurants, bars, gyms, and the like >> is it your expectation that it will increase uptake of the vaccine itself or simply to try to protect people who are going into these establishments? >> i think it's a little of both what we saw, for example, over the summer when we hosted lollapalooza, which in 200121 ws the largest outdoor music festival in the world people got vaccinated we required a vaccine in order to get inside of the lollapalooza footprint and on every day, we had 90s plus percent of the people that were in there with a vaccine.

we've got to do whatever we can to incentivize people. the answer to everything related to the virus and to omicron is vaccine, vaccine, vaccine. >> yeah. well, i mean, in new york, which obviously i can speak of given we live here, we've had a vaccine mandate in some time, it did appear effective in getting people vaccinated but hasn't been effective in stopping the caseload from soaring. we seem to be ahead of chicago, for example. do you really think this is going to stop your caseload from approaching on a percentage basis what we've seen in new york >> well, i think it's going to do is get and compel people to get vaccinated what we're seeing is overwhelming majority of people not in icu beds, icu beds and unfortunately dying r the unvaccinated it's not a close call. if we can get a significant percentage of people to get vaccinated because they want to take advantage of restaurants, bars, gyms, and the like, we will have done a lot of good to

save lives that is absolutely worth it. >> so mayor lightfoot, this is morgan, just to follow up on that, does that mean that possibility of lockdowns or curbs on activities or school closures, which are very much in focus in cities like chicago, are off the table? >> look, my goal is to make sure we never shut down again it was devastating on our economy, on small business people, on employees we have to do that certainly i'm not going to take that off the table, but my goal is we never get to that place. regarding schools, let me say this, one of the things that doesn't get reported on in coverage of saber rattling by teachers union leadership is, the devastating effect that remote learning had on our childrened on on their families. we know learning loss was profound and there were huge gaps in achievement. we know that mental health and trauma issues of our students

was real we know that it was devastating for family, particularly those families where the parents couldn't afford not to work. this is -- there's a lot of different component parts that go into it, but fundamentally our schools are safe, our schools are not the source of significant spread the issue is community spread. we need to keep our kids in schools which is what we're going to do in chicago >> mayor, i'm a former chicago resident one of my favorite cities i've ever lived in. i've been watching closely outwarded migration like a lot of cities, chicago dealing with higher crime episodes and the hit to economic activity a mayor in new york trying to add a bit of swagger, but do cities in general need to make a stronger argument for why residents should stay, even as return to office is getting tough? >> no, i don't think so. if you look at chicago, for example, last year, we had 172

different companies that made pro-chicago decisions. companies that relocated from elsewhere in the country to chicago or companies that were already here that significantly expanded their offerings we have the lowest unemployment rate of any city in the country. we've got the most diverse economy of any city in the country. we had over $7 billion in venture capital investment in chicago last year which broke every record and placed us ahead of seat until terms of venture capital investment we had 12 unicorns last year and they were across every industry. we've got a lot of great things that are happening with our economy here in chicago. there's plenty of jobs we're fllean into our core strengths, tech, life sciences, manufacturing and tdnl, anybody who tells you that cities like chicago need to do more, of course, we do need to do more,

but we have a very strong and robust economy and ample reason why people are coming to chicago and staying. you look across the board, there were huge gains in different population sectors so we feel pretty good about where we are more to do, but never bet against chicago. >> well, when you say more to do, i wonder how much is going to be public safety? it does appear to be a concern of people in chicago, for example. you had the highest number of homicides in the country last year, i believe, at 797. that was 299 more than in 2019 is that going to be the high for your city, mayor lightfoot is 2022 going to be a better year when it comes to violent crime? >> well, i feel very confident that it will be. but as you know, chicago, like new york, like l.a., like atlanta, like baltimore, like d.c., almost every major urban center across the country saw a

significant surge in gun related violence homicides and shooting. nobody is happy about what happened in 2021, but we come into '22 with a lot of momentum a lot of new initiatives that we are pushing, both on the law enforcement side, but also on what i'll call the soft side we need to make sure everyone has ownership over community safety and we've got to do more to push our courts and prosecutors to hold dangerous violent people accountable we have 2300 dangerous violent people, people charged with murder, attempted murder, kidnapping, and the like, that are out on bond. that makes no sense whatsoever what it does is destabilizes and makes our community lesz safe. i'm going to keep pushing our county partners who control the courts and the jail and the prosecutor to step up and do their part we're all in public safety is the issue and we're going to make sure we have a better,

safer year this year than we had last >> you mentioned earlier some of the business successes chicago had last year. i wonder, though, what are your expectations for return to work? in new york we're not seeing the number of people walking into office buildings that typically did every single day what are you seeing in chicago and when and if do you think things will return to a more normal level >> yeah. we had about 45% occupancy in our big office towers towards the end of last year there were a lot of companies thatted that planned to bring their workers back now the first week the january and pushed it back by one or two weeks because of omicron. we're going to continue to work with our business partners to do everything we can to get their workforce vaccinated to make sure there's adequate testing resources and send the message that city is safe and that they've got to bring people back as you know, a lot of the downtown areas like chicago,

there's a lot of ancillary businesses that depend upon that foot traffic whether it's a lunch place, shoe shine, the pharmacies, the dry cleaners, all of those businesses have taken a hit because we're not seeing the traffic of people coming downtown and working so we're going to keep working with our business partners to make sure that we create a pathway for people to come back downtown and we've made a lot of progress over the course of last year i think that progress would have been more significant but for omicron. omicron will peak, i'm expecting that to happen certainly which mid january if not a little later and i think we'll get people back to work by the end of january going into february. >> mayor lightfoot, we appreciate you taking time, thank you. >> thank you coming up this morning on "tech check" a big year for the chip stocks. goldman thinks there may be more growth ahead, amd, micron, marvel, some of the top picks of the year we'll get a list and talk about

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welcome back to "squawk on the street." stocks are facing a challenge of the fed raising rates this year, there's an important offset that many investors might be overlooking. steve liesman joins us with more on that. >> good morning, morgan. fed rate hikes, inflation, the impact of the virus weighing on the outlook for equities in 2022 what may not be well appreciated, stocks have a built-in hedge as inflation rises, so do corporate revenues pumping companies full of cash, cascades of corporate cash jeremy siegel, offers this chart. it shows dividends from the s&p companies have outpaced inflation over the long run as inflation rises, dividends go up, so do share buybacks jeremy siegel telling me the long-term history is that earnings and dividend goss up with the price level, fwhoets high and in low inflationary times, not year over year, but

over the long run. the s&p total return index shows the companies have been able to keep pace with inflation and then some throughout most of the pandemic buybacks and dividends, here's what's interesting they have not kept pace with the increase in free cash flow in the year ahead, jonathan from credit suisse thinks there's substantial scope for the return of cash to shareholders and looks for it in old line manufacturing companies rather than technology firms. take that, "techcheck" at 11:00. macro tells me, corporate cash levels are quite bloated and if they can't use the money they generally do give it back. now higher dividends and buybacks are not going to offset every risk factor in the stocks valuations could take a hit if the fed is forced to do more to contain inflation. corporate cash flow has been keeping pace with inflation and then some, and returns to cash investors in 2022 should as well david? >> thank you steve liesman. note as we head to break, catch

my full conversation with now former disney chairman bob iger, the ceo for 15 years, 47 plus years with the company, both online, and on cnbc.com and it is also on the "squawk on the street" podcast. if you want to listen to it that way. i think it's a good way to spend an hour. you let me know. we'll be right back. everything you've seen me do was made possible by what you don't see. cause when you're not looking, i go to work. ♪♪ strength isn't a given. it's grown. it's earned and tested. ♪♪ we all have the strength to see what's possible.

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welcome back to "squawk on the street." just taking a look at the major averages on this first tragd day of 2022, mostly high r, dow up 85 points. the s&p is up 4781 and the nasdaq is .8%. let's get over to dom chu for a sector sort looking at the top leader on the s&p today. dom? >> maybe no surprise, morgan, stocks mostly higher to start the new year off the consumer discretionary up, led by tesla shares this morning after the electric vehicle makers fourth quarter deliveries smashed analyst estimates. now elsewhere, though, check out the travel and leisure companies as we have been much of the pandemic, outperforming again today despite some of the covid-related travel concerns and headaches over the past

several weeks. the outperformers in that december cession nar sector include karcarnival, norwegian, sands. keep an eye on the discretionary names. there's more "squawk on the street" after this stay with us

well, 2021 was a banner year for space thanks to a record number of human space flights, including several private trips. also a flurry of public debuts from startups across the industry so what can investors expect from this space sector 2022 well, space capital managing partner, early stage space investor chad anderson joins us now to discuss chad, happy few year thanks for being with us today >> happy new year. >> so i think let's start with spacex because they just completed its 100th landing. it was another big month for that company owned by elon musk or run by elon musk last month and of course, this is poised to be the year of big powerful rocket launches starting with

starship >> yeah. it was a big year certainly. you know, you can't talk about the space economy without speaking of spacex they had 31 launches last year and almost all of them were on flight proven rockets. so they ended the year with three launches in three days and they recovered their 100th rocket booster, which is an amazing milestone because they did that before anyone else was even able to do it once. so you know, as you mentioned, the undoubtedly the most significant development to watch for in 2022 will be starship this is a massive vehicle that has the potential to fundamentally change the economics of getting access to orbit. >> yeah. so what does all of this mean for capital flows? because 2021 was a record year in terms of investors putting money to work in the sector. we did see a number of companies, spacex excluded, going public as well we have virgin orbit the sister company of virgin galactic

poised to start trading later this week, too how do investors size up the opportunities and make those investments based on where this emerging economy is right now? >> this is a record year for investment into the category for sure particularly in space infrastructure so, we're looking at our preliminary q4 data now and there was $14.5 billion invested into space infrastructure and 39 billion invested across all space technology stacks in the year so, we are now looking at a quarter of a trillion dollars invested in the 1700 space companies over the last ten years. and we expect that growth to continue lots of opportunities. one of which you know there's as investors are moving out and thinking beyond sub-orbittal, there's a growing interest in permanent outpost in space although i think you know that it's incredibly costly to build and maintain these outposts, the

international space station, for reference, cost $150 billion to build. so, you know, if starship is able to do what they say it will be able to do, launching 1,100 cubic meters, 100 tons to orbit for just the cost of fuel, this is one of those areas where i think starship could make space stations obsolete before they're even launched. so this is definitely an area to watch. >> wow it's pretty incredible to put that in focus given the fact that nasa just in recent weeks has started to doll out some money for some of these future commercial space habitats. as an investor, key areas that you are putting money to work or looking at to potentially put money to work in 2022 and beyond right now? >> yeah. one of which is space traffic management so, we have a lot of growth happening in that area the number of satellites that was launched in 2020 was 20x the amount that was launched ten years earlier. the 3,000 satellites that are in

orbit today are expected to grow to 50 to 100,000 over the next ten years. so, understanding those orbits and how to operate safely there is really important. we've invested in leo labs, a company that has a ground -- network of ground-based radars that's tracking those things and they're tracking star link satellites so a lot of growth in this area. and star link is a key driver of those. we're very interested in satellite communications we could see the broad band capacity 20x over the next five years at latency that rivals terrestrial. that's a key area offocus for us will we see star link spin off ipo in 2022? we'll have to see. will amazon's project piper launch their first satellites in q4 this year, as planned those are two areas we're going to really be looking at. >> wow those broadband statistics

really getting my attention. but it is going to be another very busy year chad anderson, thanks for breaking it down for us on the investor side. we appreciate it david? >> well, morgan, taking a look at two names as we wrap up here that certainly i follow closely. having a very strong start to the year and quite different than their performance last year, that may be related to why they're up so strongly discovery and via come, both as you see, having a very, very good day so far. a lot of tax loss related selling towards the end of last year of course both these names were not strong it was not that long ago we're going to start annualizing a year ago when arcago sent them up to heights that you could argue they may never see or certainly not for a very long period of time some positive research notes out there, perhaps some signs of life in the ad market that are emboldening people and certainly management and discovery, morgan, would tell you they are

simply cheap as they await the close, of course, of the deal with warner, which is, well, expected perhaps soon as let's call it towards the end of this quarter. that's going to do it for us right here on "squawk on the street." with the s&p up .28%, let's send it over to "techcheck. ♪ ♪ good monday morning. welcome to s"techcheck" i'm carl quintanilla with jon fortt and deirdre bosa tesla kicking off 2022 with a bang why that stock is up more than 9% on the first trading day of the year