tech stock set to drag down the nasdaq again take a rapid test, end your covid quarantine if you want to. new guidance sparking anger and confusion. news out walmart expanding in home delivery to over 30 million households to food directly in your fridge. we'll show you how it works. "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc joe is off today we always start with the markets but there is good reason to this

morning. the s&p down slightly but it was the tech stocks you had to sit up and pay attention to. dragging the nasdaq down over 3% the worst day back to the middle of december. you'll see right now, it is a mixed picture once again dow is higher. s&p down a little bit and off by 46 this rotation you are seeing now trading away from technology stocks more into industrials and more about what is happening in the treasury markets we've been talking about how bonds basically pucked treasury risen and we were wondering when we were going to cross back and it bled through

to the stock market as well. almost everybody with energy and financial will be a brief phase to hold things back. it all lifts on yields and stocks keeping it in perspective where we were two months ago it is not as if there has been a

decisive title shift the market would be too easy if that were the case. >> everybody figuring it out at the time smarter investors there. maybe not the tail wagging the dog. the yield was higher than last year. >> stocks have done great. >> that is a good point. the bond market moved quickly and rapidly. you are right. >> it is all constellation >> china said apps that have the ability to impact public opinion are a security threat.

and app providers should not use software to engage in activities to endanger or disrupt social order. the new document expected to come into force sometime this year. then let's talk the cdc. amending and declining to add a testing requirement. cutting that quarantine time from 10 days to five days. yesterday'sup date for people who have recovered from the virus and isolated at least five days can take a rapid test if they want but they don't have to. >> at-home tests are hard to come by.

walmart and kroger raising the price of their at-home tests as the deal with the white house to sell those kits expires. walmart raising the price from $14 to almost $20 and kroeger pricing theirs at $24. you want me to go on a rant? what time is it at 6:04 in the morning? >> i'm ready >> at this point, i don't understand how fast you can go on tv and say we should do it this way it really undermines the credibility. it mains me in part because i am, as you know, as far from being an anti-vaxer or anti

mask, it gives credence to those who don't believe the theory or the sciences on one hand i know the white house was forcing them to sell it at cost. if they wanted to do the right thing for society right now, they would continue to sell it at cost. >> back up i bought on walmart this morning. i bought six tests for $14.99. they have moved it back. >> i check every morning because it is so hard to find the tests. by the way, on the point of walmart. i will say, they've been doing this for months. selling at $14.99 at cost. they moved it back up to $19.99. that is still well below everybody else those same tests at cvs, they've

been $23.99. >> worse than that, there has been gouging they are available for $50, $60 more >> let's put the blame back where it belongs >> and state attorney generals going after companies like that for gouging. >> let's put the blame back. this is on the administration for not preparing for the last year to be in a position where we could be prepared for this testing. i've been buying these since the summer, stocking up on them. i have vulnerable people i'm trying to protect and test before we see any of them. i've been holding on to these for months i've known since summer these are hard to come by.

i don't know why i noticed this and in the white house where they are getting free testing everyday >> i thought when talking with dr. gottlieb, the people in florida, the surgeon general in florida doesn't believe that he thinks the testing doesn't make sense >> what we've done this week is basically concede that we are giving up. we can't win this fight. the battle is over the latest information we've seen in the uk, 35% of people are still contagious after five days if you can't find a test, you shut down the entire economy >> we were told with this

administration it would be all about the science. we can't shut down the economy we decided it is over. because of the messaging from the cdc. i understand why they are doing this but the messaging is horrible when i listened to brian sullivan talking to a doctor about where their problems is. basically saying, we don't have enough staff our problem is not the number of beds we don't have enough staff 60% of the people in that hospital with covid, they only found out they have covid because they test everybody in the hospital there are still people sick and coming in. you should not take this lightly. we have staffing problems. you can't come in if you tested positive and basically everybody

is testing positive. not being able to run airlines because you don't have staffing. we've thrown up our hands and said for get it. >> indulge me on the second point. i know you said you went to walmart and got them at $14.99 for the kroger and the walmarts of the world, for a retailer trying to sell these at cost >> walmart is doing it right target isn't even selling these. >> this is not a critique of walmart. this is to say the opportunity set for doug mcmillan for the folks at kroger, the folks at cvs. the opportunity for them at a

time when they talk constantly about their responsibility to society and their role in the neighborhood and the opportunity to sell it at cost god bless walmart. >> walmart has already done that this morning >> becky, i didn't say they are doing something else >> yesterday, it was $19.99. this morning, it was $14 i think they already got the message before you >> fair enough we'll leave it there >> my problem is that some of these companies have done a better job providing these getting through the pandemic than anybody else has. i'm lax to scream of these guys. would it be nice to see them do it, for sure

>> i'm not screaming at doug mcmillan i'm saying doug and everybody else should continue at pace >> not everybody else has them my point is cvs, walgreens has not been doing this. the people getting screamed at right now is walmart and kroger. they are getting attacks but they've been the best behaviors. still at $19.99 selling it below everyone else. >> we'll leave it there for now. jobs and the fed are the big highlights details on that next as we head to the break, the update on the travel nightmare more than 1,500 cancellations yesterday.

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private payrolls due at 8:15 a.m. and then at 2:00 people the december fed meeting and joining us on weather the trend will continue. good morning to you both there we've been talking for the last at least 18 hours. this rotation it seems as if everyone wants to get behind and lightening up on the big steady growth stocks. would you expect this to be a theme that runs through this year >> in this first half, we are expecting a more active fed as

they continue to remove accommodation and higher rates with that. we think there will be this continued rotation and the more profitable tech sector especially these that you said perform better in higher yield environments like bank stocks and infrastructure and things that can withstand the inflation. >> do you think we are in a place where it is calming down on its own a little bit of a glimmer of hope perhaps? >> i think people are really searching hard for glimmers of hope i would point to liberty street

the headline said it might be moderating but the picture doesn't look at all like it would bre moderating too early to tell on that side the earnings to step down and support to pull back to some degree ond leaving you on inflation watch. where does that leave you for wanting to reset for 2022? >> i agree, there is nothing that would want to dislodge the sentiment i think as we get into earnings after the banks and

solidify that motion the first is top line concern the sustained demand because of the current trajectory of growth and on the bottom line there is concern as well. while inflation continues, that will be hot and that will abate and account for repairs in april

what i am looking for are things we have demonstrated through demand those things that are fairly insulated and have the pricing power in both growth and value those other things that maybe would capture, are those the kind of things that would capture the yield? >> yes i think those are the things that would link to the bond where we expect those to drift higher to the high twos to

closer to 3% and the equity and other asset infrastructure and banks that perform well in higher rates quickly grow for us >> would you characterize that defense at this point? thats with one of the reasons one of those big nasdaq stocks >> i wouldn't call it typical defense you could take one of those megacap tech names i would call that kind of a safety strategy based on some certainty of growth and a lot driven by the growth sector,

even the semis nvidia and others that show the expansion. >> thank you for your thoughts this morning coming up right after the break, americans quitting their job at a record pace getting to new numbers at 10:00 p.m. eastern and pacific and the premier of americ gedanre here on cnbc. "squawk box" returning right after this

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time now for the executive edge the number of americans hitting their jobs, citing covid burn out and the rise in job openings and rise in pay. the job openings pulled back slightly to about 10.5 in november higher than the level before, which was 6.8 million people looking for work >> when we come back, more on the u.s. job market. how to ask your boss for a raise

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good morning welcome back to "squawk box. watching the futures and after the dow closed, you are seeing some red ar owes now indicated down about 8.5 points s&p down about 5.5 and the nasdaq is down again this morning to the tune of 62 points below fair value some new news in the last hour the washington post reporting democratic and republican lawmakers have held early discussions about another round

of covid stimulus spending focused on businesses including restaurants, performance venues, gyms and minor league sports speaks to dealing with the omicron outbreak >> yes walmart announcing plans to expand home delivery service frank joins us with more on this story. >> good morning. walmart says 30 million customers will be able to get its high tech delivery service adding l.a. and chicago. this is a demo of what is called a white glove service. they enter your home via pin pad and place items in your garage or inside and sanitize

orders can be watched live or via recording. orders can be placed by noon and delivered the same day 3,700 walmart stores will serve as warehouses as they look to increase service >> we think the in-home delivery will be a great solution also about returns also about in-home is if we can pick up your return. >> the $95 billion at-home grocery delivery is blurring delivery service where monthly and at-home subscription is the trend. a company like walmart will hurt

meal delivery and offer more competition for amazon fresh >> hiring 3,000 workers and building a fleet of evs is expensive. is there this much demand? they must believe it >> the question isn't is there enough demand but will it be profitable e commerce costs about three times to fill. for retailers like walmart, target, logistics is about 12% of sales this reduces their cost because they are dropping off and picking up, it is reducing costs of returns, which are a major part of e commerce >> fascinating, it reminds me of

in south korea, they are probably the most advanced about this they do the returns and all from the get go it works there in terms of cost because in south korea, seoul, everything is so dense it gets a little complicated in a country like the u.s >> i think we are also getting increasingly used to strangers in our house >> i haven't had that yet. >> not here. i don't want any strangers in my house either i could imagine the day where i did find the person i knew coming from walmart who is there every day, maybe i'd give them access to the fridge in the garage when we come back, are rising prices taking a toll on your budget it might be time to ask for a raise but that is a tough

prospect for millions who have been working from home for years. how to ask for a raise when you are working from home. and fanatics with an offer sissuy the trading card bune you can watch us live any time on the cnbc app.

more than 4.5 million americans voluntarily quit their jobs 4.5 million people said take this job and shove it. does that mean it is a good time to ask for a raise and how does working from home complicate that dynamic joining us now, founder and ceo. and the founder of the make it senior reporter. just reading through numbers thinking, wow, this is definitely a job seeker's market there has to be a split from those work from home and those front-line workers they can find better jobs and higher paying ones elsewhere what would you tell somebody working from home? is this a good time to ask for a

raise? >> i think it is definitely a good time to ask for a raise even if you are working from home a lot of office workers are leaving. if you've picked oup responsibility, it might be a great time to make sure your manager is aware of that and ask for the raise you deserve. >> tom, what do you think as somebody who has been watching this what do you say to somebody who comes in and says, hey, i've been working from home but doing extra duty and been incredibly productive, i think it is time for a raise and if i don't get one, i'll be going elsewhere >> that last part is the tricky thing. maybe sure you have a solid place to go. and most companies are working

to save or raise money you should be asking for a raise if you are good at your job and have prove to do that. are you putting together a portfolio of what you've accomplished for your company, for your department. if you can show you've accomplished something that has helped the company, you have a really strong case maybe you should do it. >> are bosses empathetic to that we are talking white collar workers? >> absolutely they get it. we have a situation where everybody is watching your show and reading the news online we have a situation where workers with skills are in high demand and uniquely workers with less

skills are still in high demand. what we have to be careful of is putting the proverbial gun to their boss's head saying i'm going to quit without making a case eventually, the music will stop and you won't have a chair look at your contributions to your company do you like your job most people don't quit jobs they like they quit jobs they don't like evaluate your situation the same as pre covid it is just different because you are not working in the office. it is easier to quit emotionally than ever before >> what would you tell people in terms of steps about how to do this >> i think that last point was really important most likely, if you've been working from home, you are not getting that same face-to-face

time with your manager or boss so you really do need that list of accomplishments it might be something where you give it to your employer before you go into a raise conversation putting into detail how you've helped the company reach their goals and from all the hr professionals, that is the important thing is really making sure your employer knows what you've done. >> i hadn't really thought of it from that perspective before used to be the squeaky wheel would get this because they were talking about what they've done.

has covid amplified that, maybe the biggest jerks in the office will get it because they are talking about things and the quiet ones get overlooked? >> no, i don't think that's the case you are right, the person who is the loudest or the squeaky wheel gets the oil but overall, we'll get further into it, this blue collar, white collar divide and service level people, hospitality people, service workers are the ones leaving in higher droves you look at it, you say, my spouse -- we don't have stats whether people are married or not. if my spouse's income has gone up 15 to 20% and i don't want to leave the house and i don't have day care and that day care cost is 30 to 40% of my salary. if my spouse's income is going

up, day care is going up, it doesn't make sense for me to be working. we'll really have a problem when day care goes up it's really a veshs circle the loudest voice isn't going to get the money. the peopleding the most value to the company. we have report profit, record stock market record public and private companies being sold know the value you add put your case together and get the raise you deserve. >> alisha, you make a good point making sure you have a backup plan if you go to bat saying i want this or i'm leaving, you better have a good backup plan.

>> thur. going in tore things you might ask for now that could be more care giving days that could be commuting at a different time or working from home a few days they are more used to that if you can't get more money than you can get that that has always been the case that switching to a different company or switching jobs gives you a bigger boost salary wise so maybe it is time to start looking if you are not getting what you want. one thing i would add to that is, if you really like your job and you want to make more money and your boss is saying you didn't do x, y and z

the number one thing should be, tell me what i need to do to achieve that raise or bonus. seeing that individual accountability ask your manager what do i need to do to get a raise, promotion or bonus and then go out there and do it. >> excellent advice. great to see you guys. >> good to be with you coming up, robinhood down more than 50% since the debut last summer. hey has it failed to capitalize on t retail boom that's the question. we've got answers. we'll bring them to you next e '. that's why i have my finance team, randomly hurl things at me. it's also why we use workday. it gives us insights, so we quickly pivot our strategy, people, planning, you name it. sorry, sir. i will aim straight at your next step. see that you do. would you like some coffee?

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welcome back to "squawk box. the trading app ronhood struggled 50% since its debut on the nasdaq last june we will find out what is happening with retail trading. joining us is the managing director good morning to you, rip it has been a bit of a slog, maybe, is the polite way to put it when you look at this stock, it has not performed a way like a lot of investors had hoped the question is, at the price it's at today, sit fair value? do you look at this as a great opportunity? >> i still think some risk that causes the body to drop dramatic-at-al i as it did, those risks are a lot more balanced than they were over the last few months. if you look at the regulatory risks. it appears there is no guarantee they will make it through this payment portal flow that the sec

has burnt on it looks like that's a much more balanced argument. there was a big lock-up release from the ipo in the beginning of december, that's had time to work through the stock as well of course, a lot less downside risk when you are at $17 per share rather than higher >> what happened here? do you think it was mispriced? do investors there were people, obviously, lots of people that bought at much higher prices >> yeah, i think probably there was a little more heighth. certainly coming off the first quarter of a loop this past year when trade was just frenetic you know, we didn't think at that point that could be maintained and it wasn't if you look at, you know, you talk about what's going on with a retail investor, you look at the other pairs that have already reported their activity.

they're going to report above the second-best quarter, other than that first quarter of last year, in the fourth quarter. and you compare that to the pre-poke levels, you know, they're going to report, i know you are familiar with. three times the level of pre-pandemic 2019. >> when you think about the retail trading landscape, where do you put robinhood and, by the way, does robinhood stay as an independent company long-term inure mind >> first of all, i would categorize them and they're probably one of the most, i counted this space for quite a wall they're one of the most disruptive companies in bringing innovation than i've ever really followed or watched. you know, they demarketize finance. they brought on the zero

commission they have some call it magical customer acquisition how they did it. so i still look at them as very innovative but very much catered to the young investor versus the schwabs, interactive brokers, et cetera so what they've really got to do is broadp out their product offering they had a big issue with, you know, they cut over half tear revenue in the second quarter working those coins. that dropped off dramatically in 3q so that was a hole they just couldn't replace coming up, you know, they're creating this crypto wallet. they've got 1.6 million commerce waiting. there is going to be beta testing january. they got other new products as they get what they call fully paid security securities lending so they're sort of in a race to broaden tear revenues out, given

this innovative modem that they h -- modem l they have. >> now that everybody is at zero commission for cash equities, what really is proprietary special sticky about robinhood's app, aside from it being by everyone's agreement, a very good user interface. now they have a quarter of interactive customer assetles. even after this decline, the stock is not much less the market cap of interactive brokers. i guess the question still is what can they add that might justify that premium that still remains. >> hey, mike, good to talk to you. yee, i think that's a fair question but when i look at andrew's sort of question as well, fe when yo look at robinhood, it's their inno vation, the ability to

create new products quickly and to indicator to the young investor they talk about more than half of their customers being first time brokerage accounts ever so some of the things they just created, you know, a first trait sort of robo-that allows inadvisors rather than picking a single stock, they can put in their risk tolerance for a first time investor and diversification and etfs and i think it's this sort of innovation you've seen the big guys copy them to some extent. that's the fidelity kids, trying to get to the younger investor, the new investor schwab has a platform. so when robinhood breaks gains connecting the market side of finance, they've got to broaden out their product set so in case those coins doesn't trade like it the i'd the second quarter,

they can make up the whole in revenues >> that's the race i'm not sure having the machine pick your first stock for you is going to work against the idea that they gamefy this thing. they absolutely have been innovative, rich, good to talk to you thanks a lot. >> good talking to you coming up, mike michael reuben check out futures, yesterday had the violent rotation, the s&p had very small declines at the opening. nasdaq looks like the end of the set, it ulcod be down 56 points. are you watching "squawk box" on cnbc >> didates, whose resumes on indeedmatc. visit indeed.com/hire and get started today.

stock futures riddled change after the dow notches another record close you can't tech stocks and fed focus for investors. months after renewing the long-time links deal to fanatics, it's now being acquired by fanatics plus the presidential approval rating, happened himming the economy, hitting new lows while the stockmarket hits new highs.

arthur brooks with join to us talk about all of this. the second hour of "squawk box" begins right now >> good morning, next up on "squawk box" right here, i'm andrew ross sorkin, along with becky quick, joe a off today ahead of the opening bell, we got about two-and-a-half hours to go. right about now, we got a little red on the screen, s&p 500 off 4 points, nasdaq down about we'll call it 55 points. here's the thinking headlines, though, at this hour fed chairman jerome powell has set an official date his renomination has been set for next tuesday powell also scheduled a hearing for lionel brainard who has been

nominated as fed chairman. that takes place tomorrow. nevada is now the latest is that it to join a proposed $26 billion opioid settlement. they have been accused of fuel ac nationwide opioid crisis. nevada was one of the first states that has not yet signed on to that settlement. check out shares of beyond meat, they're surging in pre-market trading following news kfc will roll out a fried chicken next week the latest report on mortgage applications and rates released moments ago let's go over to diana olick she has the numbers on that. good morning. >> reporter: good morning, becky this morning, we have not one but two weeks worth of mortgage application data since they didn't record last week. so how fun is two weeks? anyway, i want to start with

rates through the mba. they have 30-year fixed up five basis points but look at this chart for mortgage news daily, though, yesterday when the 30-year fix hit the highest level since the start of last april. rates are now 50 basis points higher than a year ago higher rates caution refi demand to drop compared to three weeks before and volume down 40% more applications fell 4% and were 12% lower than a yeerng that was the weakest showing since october of last year that was likely about rates than supplies they do adjust for the holidays. take a look at what happened two days ago when bond yields and interest rates popped higher, it dropped as the broader market rallied. analysts i spoke with said you need to expect these knee-jerk stop reactions on these rate

surges they're bullish on the builder, based on strong demand and low supply again, we will get these days, the builders need to pop up again. >> that's what i was going to ask, i do have a friend in town who is going to be putting her house on the market next week. the guidance she is getting is they are still low inventory you can get a higher price and bidders that will ask a high asking price on top of that is that still the case when rates move like this >> absolutely. this is supposedly the slow market and that's when you see more inventory come on the market or sit longer so the inventory numbers rise. we're seeing incredibly low inventory and strong demand. a lot of buyers out there, they may not have been able to get into the market in fall. they're thinking in january they can get if before the spring surge. so i would sigh you are not

seeing quite as many bidding wars, because prices are so high still a very competitive housing market. >> thanks, dianne. good to see you. meantime, yesterday, the ctc declining to add a testing requirement. the agency has been criticized for cutting quarantine time from ten days to five days without requiring a negative test and quarantine the cdc said people who have recovered from the virus and isolated at least five days can take a rapid test if they want to but they don't have to the new guidance comes as case counts hit record highs and at-home tests are so hard to come by, thanks to the surge in demand meantime, walmart and kroger announcing they will be raising at-home covid tests as the deal with the white house to sell those kits expires that deal had been in place since september. walmart raising its price for buy next covid test kits from

$14 to almost $20. kroger is now posting theirs for $24. >> i bought six tests from walmart.com at 4:30 this morning at $14 apiece. going back and forth and others see it at 19.98. some see it as $14 on their servers. hard to say what's happening there. all of the ire dropped on kroger and on walmart for this, they have been the best behaved players throughout what's been happening over several months at this point all of those tests they are selling at 19 and twaep, they have been at warm greens, rite aid, cvs for $23 bucks, the biggest issue is getting access. there is not enough to go around we seen that in full force at least in in part of the country in the last week ore two. there is a battle in chicago over remote learning this morning. public school classes are

cancelled after the teachers union members theren threatened to force stay-at-home and conditions are unsafe and 73% voted in favor of pausing in-person instruction. lori loo itfoot, the mayor says it is unacceptable and unnecessary. >> i cannot stand here in good conscience as mayor of this city, as someone with a responsibility, a solemn obligation to make sure that we do everything possible to set our children up for success which gips with education that it makes accepts to shut down an entire system. >> the mayor's office decided to call off classes altogether, keeping the buildings opened for emergency child care i also saw they put out they would be delivering food to those location, too, if you wanted to pick up a breakfast or

a lunch, schools can get that. mike. >> let's get to dom chu with a look at this morning's pre-market movers. >> some interesting moves here to highlight the themes you have been talking about this morning. first, we will talk a little ability pfizer those due in part due to an analyst upgrade at bank of many earthquake to a buy rateing from a prior neutral. pfizer is up 1 1/3 for that news there could be a dramatic and bullish rollout of pfizer's proposed oral tablet for treating covid so again, pfizer shares getting a bit of help on that by the way, they inked a deal with their partner biontech in their covid and messenger tied to shippingments as well. also watching what's happening right now with dick's sporting goods. it's now made the best ideas,

the analysts think the recent pullback over the course of the last couple of months, has created a compelling buying opportunity for those looking to get an attractive dick's sporting goods at web bush we will finish off with biopharmacy companies, taking down the ratings for amgen and regeneron shares so again, some interesting moves, amgen, because they think some of the product rollouts could be delayed because of the covid surge and what not some of the other product lines could see there and regeneron canceling to the medicine shut down the line. >> the theme is analysts essentially try to be opportunistic here you had such violent moves under the services market in the last

couple ays, not to mention in the fourth quarter a. couple dozen s&p stocks down. a couple dozen, more than that, actually, up that much in a couple days. >> and to your point, mike, what it does do the gyrations take the buying goods the dick's stood out to me particularly f. you look at dick's as those best in class-type companies with regards to sporting goods, outside apparel that thing if there is a market pullback, some analysts those at web bush think are seasonal with their approaches, if that is a temporary phenomenon, that creates the value. that will be the interesting market opportunities that will be created given some of the biggest selloffs right now my big question for a lot of folks is do you think that big tech trade is something you want to dip into? that will be the one to watch in the coming wo-to-three week. >> muscle memory is strong

there. we'll see if that pays off talk to you soon coming up, on exclusive interview with the ceo o fanatics on his deal to buy sports deal topps. before we head to break, let's get a check on the markets the dow jones, futures, slightly passive. s&p closed just at that 4800 mark sd d50 right now "squawk box" will be right back.

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>> welcome back to "squawk box" is this morning. fanatics reaching a deal with topps trading card it shakes up an industry some have been saying has been ripe for evolution for quite some time joining us right now is michael reuben the ceo of fanatics it's great to see you. happy new anywhere i called you a stone cold killer yesterday when we were talking about this deal, because i thought from a deal perspective, this is like deal making in a remarkable way you managed to get this license with the ability to swoop in before topps was aible to do their spac and get a deal in place. now are you buying topps let's reverse a bit and talk about how you decided to do this and strategically how you thought about it

i thought you went into it thinking, okay, if i guess the license first, then i can make a separate deal with topps. >> first, good morning, happy new year i see it as a sweet, kind, individual than a stone cold killer the way we think about this is one thing in the best interest of the fan in this case, the collector and the sports properties we work with we always think how to better situate the business for everybody involved when we do that with the trading card business in our rorg nal merchandise business we bought excommerce we think that's a way to get to scale and bring in pieces we need more quickly. it's not unusual to say we have a new division, a peak idea, it will be better for the fan, better for the collector and sports property. we will move quickly that's what we did here. certainly in the place of topps,

it's the best trading cards, the infrastructure, to go more quickly and start four years early have global capabilities so it did give us a bunch of expertise and the ability to move quickly so we're excited about. >> just so i understand, if terms of branding, there was a view you might brand these as fanatics cards now have you the topps' brand. how will that work >> the brand on trading cards absolutely will be topps topps is the best brand in trading card they have been in business 70-plus years. we want to have the continue new tie of the topps -- continuity on topps brands, they deal with the nba player's association we think they're the best trading cards will be good on foot lockers >> in terms of the price, you know, we were talking yesterday, i think there was a view when

the deal first came out that maybe you had effectively been able to get in and undercut the topps' price in their npo and spac they were about to get over a billion dollars. half their busy is bazooka and topps and some of the other collectible piece. $500 million is actually somewhat in a similar place. i ask why you were willing to pay that price, in part, because, clearly, they no longer have the license in two or three years from now >> yeah, so, first off, the way we like to think about these things is remain cash flow for the duration of the contract topps had four years left with baseball so we say how much money is the business going to make over the next four years tax effective. that's a logical approach. i'll tell you when michael eisner and nbt reached out to

us, they were fearful. they said we want topps rate to continue we want this to be great for our employees. we think it could be a good foundation part of your business we quickly got to the arrangement that made sense for everybody. they still not only the caning business but gift card business and two exciting businesses. i think we paid a price they were happy with, we were happy with it allowed us to start four years earlier. so i think this was a win-win deal for everybody. >> if we talk about the card business five years from now, what will it look like in the fanatics world how is it different? >> yeah. so, first, i this i the card business has grown a lot by luck, not by a strategy way to grow the business. we think the number one thing that i wake up and go to bed thinking about is how do we, how do we grow this industry i'd like it to be many, many times the size of the business it is today.

it certainly has great growth. the first thing is how can we market this industry grow this industry make this a much bigger business for everybody involved in i think in general for the collector, certainly at our core, we are more direct-to-consumer company we think not only the primary basis, some direct-to-consumer obviously, the hobby shops are important to us. they helped to make this business and korea it this business they will always be a vital part of the business forever. but we think about the sendary market place today that's the business that takes place you know not from the ip companies or the players association, i think it's important for all of to us participate in that. you think of other business, do you shire a card finance a card store a card there are so many services to get one place and also a much bigger business. so i think the most important thing is, this will be a much

bigger business with better marketing. that will make everybody more successful in the end. >> everything you described sound like the physical world of card so let's talk about the digital world of card. how much does that play into it? the new universe at nfts >> yeah. so, first i think both digital and physical cards will work together now, the digital cards get sold direct to consume ter same way we sell a jersey, a hat direct to consumer. the nft business, i like to make fun of myself. a year ago, i barely knew what an nft was this year 23 will have a massive business in nfts the thing that has been so interesting is both have grown so well together that's what we're so excited about, the physical trading card business is tremendous growth. the nft business is having material revenue, obviously, it's going to have new growth

it's a brand-new revenue it will have good material as well we look at revenue at topps, you see the last year very good growth this year the growth to continue >> all right finally, let me pivot. you are an owner of the 76ers, obviously, your business is about a lot of leaks that need to play in person. what are you seeing right now in terms of traffic inside stadiums traffic to your sites as a result of this you know, obviously, some of the bet players are not playing right now, because you are getting sick it's changing the ratings. how has that changed in the dynamic right now? >> i have been amazed, probably the best example i can give you. we probably operate 50 venues at fanatics, not only if you look at the revenue per customer, per cash, the total revenue, it's been really, really strong so i think the world is pretty

resilient, it's been difficult for everybody. the business continues to stay on forever we're an investment in lids. their business, they have 1,200 stores, has been tremendous. when i look at other retailers, the business that we're involved with, the retail business for fanatics all of them are very strong in spite of the difficult climate >> michael rub rubin, congratulations on the deal. i will go to my basement to look for my cards. >> i need to you tell in the marketplace, to take that salary and invest in trading cards. i need to you game with us. >> i've got some cards my kid want me to sell my cards. i don't know if i will do it yet. >> keep selling, you buying. >> like that they'll like that. thanks, pike all right. well, still to come, a new survey on the majority of

americans disapprove of president biden's handling of the economy. that as markets hit record highs. plus, covid cases are surging. the vaccine stocks are lagging they perform well, this year as in 2021. stay tuned the you are watching "squawk box" on cnbc don't be shy, now. i like that prime cut. -aflac! -i love my gold jacket, but that aflac blue feels so right. when you feel right, you coach right. i know that's right! prime never believed in double coverage, but health insurance and aflac...is money. ♪ must be the money ♪ and i know how coach prime feels about money. -aflaaaac. -♪ aaahhhh ♪ now that is what this jacket needs. ♪ must be the money ♪ get help with the expenses health insurance doesn't cover. at aaflac.com

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officials after speeding up the taper and forecasting rate hikes are openly talking reducing the nearly $9 billion balance sheet. steve leishman joins me how the sequencing perhaps of the ambulance sheet management and rate hikes might go, steve. >> how, when and what? minutes of the fed's december meeting coming in at 2:00 p.m. should provide new details after fed chair j. powell said the

issue was discussed, so it's got to be admitted neel kashkari joined the feds, that follows comments last month of benefit geller and christopher waller he wants to move aggressively. here's the options bandied around the least disruptive would be to stop reinvesting in mortgage-backed securities i can decide short-term series, it would be not investing across the board, allowing the balance sheet naturally to wind down, the most extreme selling treasurys to proactively reduce the balance sheet. the december fed chair thought they would reduce the balance sheet. those that did thought it would come down by november. the problem is no one is quite sure what it means for stocks or the economy. the fed says it's not sure

yesterday i talked to an analyst at bask of america his models show a substantial part since market games since 2008 came from quantitative easing he says our market could decline by 5% in total because of the fed withdrawing asset purchases. think about that the uncertainty over the economic effects is one reason the fed will probably proceed cautiously getting into what mike was saying, likely raising rates several times before reducing the balance sheet. the issue clearly on the table and the potential for stocks which create a greater clarity from the federal reserves. >> i know there is some research out there that is sort of safe for mechanical reasons, messaging reasons, it might make sense before raising rates the kansas city feds had a paper maybe it will keep the yield curve from flattening out more than the fed desires >> right there is all kind of stuff out

there mike, i want to give you one sort of amazing fact that i came across when i was reporting this yesterday this is from lou crand him another rightson with understand the fed stops qe, stops adding, it's going to still have to purchase $60 billion a month of mortgages just to keep the balance sheets steady that's an amazing number in fact, there are some mortgage folks that say that's disrupting the market, actually reducing liquidity in the market. they might be happy if the fed stepped back on that, there was an old school of thought you and i are old enough to remember that says the fed should only own treasurys. it's creating preferences on the market there are still on the fed that want to fet out of the mortgage business and let that mortgage balance sheet wind down. >> whether it's safe or not,

people talk about a safe asset if the fed is strong, to keep the balance sheet steady you have to think about that go ahead >> waler has this interesting idea we'll talk about some other time the fed can let a trillion or a trillion-and-a-half run off the balance sheet with no consequence whatsoever because of the fact that that's the amount in reverse ro pos the market is giving back to the fed. that's an idea that's interesting, worth exploring >> all right steve, thanks very much. we'll see the minutes actually, tell us all about that coming up, the president's handling of the economy and why americans disapprove kennedy school professor arthur brooks discusses the results and the recent survey. as we head to break, a couple stocks ahead of the open, adobe falling following the ups downgrade, talking about the

software spending plans. boeing selling 50 max jets to allegiant janeair. worth $35 billion. boeing a half a percent. stay tuned "squawk box" will be right back. >>

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a reecht survey by voters and research shows the top nation's issue uses 46%. the survey finding 60% of americans disapprove of president biden's handling of the economy this negative view comes despite the unemployment rate declining now 4.2%. average hourly earnings 5% and stocks at record levels. the dow at an all time high yesterday. up roughly 20% since biden took office why the disconnect what is happening? joining us to talk about it is arthur brooks, american enterprise institute president emeritus and a harvard professor and contributing writer for the "atlantic" and host of how to build the happy life podcast arthur, you may be the perfect

person to talk about this, especially given what you have been talking about in terms of happiness, why are we not happy in terms of what's happening what's gone wrong? >> good morning. i'd like to report the country is getting happier the truth of the matter not withstanding the good economic data, the country is actually going in the wrong direction with respect to happiness. one of the biggest reasons for this has to do with certainty. you know, people are taking it out on biden and the biden administration one of the reasons is when joe biden was running for president his promise is things will be calmer, things will be more peaceful there is certainty we will have an economy running in a certain, a stable way the coronavirus epidemic was going to be under control. he couldn't promise these things yet, he did. now what do we have? we have inflation, a lot of churn. a lot of people quitting their jobs most of all we have an epidemic that apparently is raging out of

control. whether or not it's a medical problem. right now, it's another matter this makes it look like, in fact, he is not in control in the way that he did. that makes a lot of people feel insecure and, indeed, unhappy. >> i think it's that, too. i think it's because of what we are seeing with covid, omicron spreading everywhere, shutting things down, whether that be schools, businesses, seeing the crazy leans we've seen i asked in the special break when the poll results were taken, i think in large part it's that, too, just what's happening, december 17th through the 20th is when the poll results were taken that's when the omicron came, despite the vaccination, the promise we thought we were getting to this never ending pandemic and despite the crazy messaging coming from the cdc. you are right. if you are feeling uncertain about things, not knowing what is coming next, then you don't care what's happening over the last 12 months >> one thing we need to keep in mind

everyone is wondering, why we have this great resignation and this turmoil, maybe in a few more weeks, the schools are closed the workplaces and schools, these are not economic rankments. 70% of people say their best friends are at work. 58% said they wouldn't quit for higher pay if it meant leaving their friends we've taken away the entire social context. people are lonely. we're facing a wave of depression and anxiety like we've never seen before because of the way we are not returning back to normal any little thing that says, we don't know what's going on this might come back there is another wave. the science doesn't know what's going on, the cdc doesn't know what's going on. people will take it out on the president. what itself the most important, the economics of what's going on in our country that's not emotionally the pafls we are judging things. the negativity in which we find ourselves. >> you are like the couch psychiatrist this morning. everything you are saying makes

an awful lot of accepts. so what happens? how do we get our arms around this because i can say, we are not prepared we weren't prepared for this wave we don't have the testing, we don't have the monoclonal anti-bodies, it's disheartening when we thought i thought we'd be done with this? >> part of is it is not making the false promise we will beat the coronavirus ep dig once and for all. the truth of the matter is it will become an endemic problem we listen to our friend scott gottlieb on this show, he's the best the truth of the matter is the coronavirus is something we live with, much like many other viruses. we will continuously develop new ways to deal with it it will be less scary, less deadly and help us get back to normal life not withstanding covid, instead of saying you never know, your kids won't have to go to school. you have to take time off work you don't know if you will see

your cliques, that don't know is incredibly disconcerting, an entire of data is uncertainty is one of the human source of unhappiness, if we had leaders in the cdc the white house and congress and the state houses around the country some states are doing well, in massachusetts, a great governor is doing a great job on this, the message of the state is saying we have to live with this and we will. we will get back to normal life as best we possibly can, but so you can get on with your life. that itself paging that will raise happiness a lot. >> "the washington post" reporting a couple hours ago earlier this morning that democrats and republicans are discussing the idea of some additional covid emergency funding. i think most of it, according to post, would be targeted towards businesses, maybe the restaurants, the gyms, entertainment venues that are suffering the most through some of these changes that we've seen is that the right move from leadership in washington >> the whole idea of making it

easier for people to close, making it so we can put another patch on this thing as if this were still 2020. we have to help people understand there are ways we can live with the coronavirus epidemic that we're trying to make it as not dangerousas it can possibly be so it is not scary and people can get on with ordinary routines, whether it's working in person and most importantly sending kids back to 62 it's crazy we're not sending children back to school. again in january of 2022 is really disheartening for people. so i think the way we need to deal with this is all efforts put towards as the closest thing we can get to normal life. >> hey, arthur two questions. two capitalistic style questions. one is, look, you may just hear this, my view is if we're going to spend government funds at all. i'm not sure we need to. it should be on things like testing. because that can allow restaurants and schools and our

children to go to school and everybody to remain opened in ways that perhaps people are nervous about or genuinely shouldn't be so that's one piece. the second piece, though, that i was asking you about we were talking about testing before you is have a situation now where, a, we don't have enough tests to go around we have to make more b, the cost of them is too high. and where are you either lay the blame or a abbotts of the world have to do this at a cost or lower price or subsidized by the government and the retailers, which had been trying to sell this at costs, which by the way it benefitted them, a lot of folks had been going to the walmarts and warm greens of the world in part to get the cheaper tests and buying lots of stuff while they were there. so there was a capitalistic view of what they were doing so some degree whether they should be keeping tear prices lower through this

pandemic to help society >> well, i agree with you, that testing is the way to go cheap testing and making it as reliable as it can the possibly b. right now, it's not very reliable the most reliable pcr tests, they cost hundreds of dollars to get. the antigen testing is less reliable, if that's what you feed, you should be able to get it on the same day by the way, there is a shortage of these things the problems are manifold i agree we need better testing to go towards our key goal which is formality and ordinary day-to-day life. will you do that with capitalism we won't do it with government control. we will make it much, much easier for people to produce different kind of tests and distribute them in different ways the greatest thing about capitalism is places like walgreens and vcs figure out if you sell them for costs, people come in, they do go out with other stuff they needed. that's the oldest consumer idea, retail idea in the book.

look, there is nothing you said that sounds remotely wrong under the circumstances. we need to get the bureaucratic households out of the way so that we have more tests that are on the market let capitalism do its job, get it out there, so they can get on with their lives. >> the conundrum right now to get an antigen test down to a dollar a piece if you give them out for free and they wereavailable at scale, we don't, everybody would be in restaurants, all the kids would be back in school and yes we can debate about jen tests versus pcr if you use the antigen test literally twice a day, i think you would be in a completely different world. >> i completely agree. >> i don't know if capitalism unto itself can get the price down to those type of levels >> what about, wait a second, what about the federal dollars that have already been supposedly spent on this there was $12 billion supposed

to be allocated to the schools to step up testing i haven't seen any testing done an any level like that what happened to the money we set aside for this why weren't we prepared. the government is working on the contracts with them to try to get worked out by the time they're here, first of all, there is not enough. there is 330 million people in the united states. that's one-and-a-half test per person second of all, it will run its course before we get access. we were not prepared two years into this pandemic. >> it turns out when you pour a whole bunch of kerosene like that into government bureaucracies, when you pour a bunch of money into these government bureaucracies, they're not accountable for it, you won't get what you wanted. there was no big surprise. here, do all this, here's a ton of money do testing make sure the kids can go back to school. we're two years in, we're not ready for the testing. that's not how government brur

rock bureaucracies work you don't lead them to do what you want to do, who knows how the money will be spent. >> why don't we have a covid czar somebody who is responsible for seeing this stuff taking action, making it work out almost, you know, like we would have a czar for any other sort of military operation or anything else that we cared about? why isn't there some central point of focus everything is running through? >> that's true the truth is schools for example are testing. the procedures are different in different states this 21 of the things that americans are looking at one of the really interesting aspects of the great resignation is the great pieg gation so this is the census. the places that people are moving from big lumbering bureaucratic high tax states to places that seem to have a little normality in life normality in the schools more freedom for people to behave in their ordinary lives

if we wanted the whole country to be free and well, we would have this cheap abundant testing like we are talking about here the school bureaucracies can be completely accountable for their funds, in the abcess of that, people will get free states, lower taxes, more or less functioning as normal as they possibly can why they are voting this way with their feet? because they want to be happy. >> we all want to be happy that much we can definitely agree on i don't know how we get there. but hopefully we'll get closer towards it soon. arthur, great to see zbru nice to see. >> you come back for another therapy session soon >> let's be if person one of these days >> i'll hold my breath >> coming up, with omicron raging, why are vaccine stocks trading lower? we will pose that to managing

director michael yee take a look at the futures across the board we still have a little time to open up. but we have some red right now on the screen, the dow up 25 points we're back after this. jerry is here! j! mate, how are ya!? it's so good to see you. good to see all of you, yeah! why is jerry so... popular? it's been like this ever since we started using workday. what do you mean? it makes it easier to develop great relationships with our suppliers. now everyone, everywhere loves jerry. they sure do. they do.

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they take the stock to a buy to a neutral, price target of $70 this news comes as pfizer and biontech announce an agreement to develop an mrna vaccine for shingles critical trials are expected to start in the second half of this year staying in the pharma sector shares of moderna dipping again, that stock and other vaccine make verse lost ground so far this year even as covid cases surge and companies double down on vaccinations. this comes after stunning gains for the sector last year the next guest calls the weakness covid stock fatigue and it's less severe and less deadly in recent ones we are joined by michael yee, at jefferies. great to have you here this morning. moderna, pfizer, both down 8% year-to-date in fact, also looking at some of the lab testing companies like the whole co-system -- ecosystem

around this, maybe profit takeing? you think there is something like that going on here? >> good to see you i think you nailed it on the head i think there absolutely is a vaccine or covid stock fatigue that is starting off the year. i don't think you could have had any more of a phenomena in 2021, if you take a look at the stock performances of moderna, which had how many two or three re-ratings, reached the market cap of nearly the $200 become. a lot of the money flow is coming out of it as we realize, we are living with the pandemic. there will be revenues, but the overall i think sensationism with some of these stocks i think is wearing off >> do you think the market is correct in that assessment that it looks as if this is going to have a little bit less power to these trends it's not going to be constant reiterations of mass

vaccination? >> i think that's right. i think while we will have in my opinion an endemic period going forward and i do think there will be sustained vaccinations for forced populations each year i think the key is that the market is looking to value and digest in a new world, where we do have that so if there is going to be that play, you have to figure, okay, which growth stocks, presumably growth stocks will be the best performers in that new world look, i think you and i both know wall street likes to buy growth you look at at moderna the question is, is it growing you look at the valuation at 100 become that implies 20 billion a year implies $20 billion in the future to get moderna backed up we need to get beyond covid, for many of these stocks we need to get beyond covid and have another story. pfizer, you mentioned the treatment phase of new revenue

growth for moderna, i think they need to move beyond covid >> so where do you think investor's attentions will now turn or should in your view turn in terms of pmaybe some stocks neglected in covid >> it's interesting. biopharma as a whole had a brutal and tough year in 2021 as people did pla i the recovery. so certainly while fundamentals weren't bad in biofarm massachusetts you have a vortex or a gilead or biogen, which had pretty bad years in '21. we're thick some of those stocks which are cheap trade nine, 11, 12 multiples no issues. you see a little of that there certainly a lot of headway going forward. biopharma, redown if 2022. i think i'm on that page i think there will be a rotation from have nots to the covid stocks

>> you mentioned moderna's valuation at this point just under 100 b. you say it would imply 20 billion to get to appropriate saechlts les. it looks like they have been over earnings and have an earnings cushion, at least at the moment is that a trap to look at that it what i? >> i think it can be a trap. i think are you absolutely right. i'd say two things one is they obviously face a difficult comp in 2021 2022 revenues will be presumably higher you might think that that is peak sales times of perspective, peak number of vaccine sales probably going on right now making it difficult comps, certainly a difficult earnings trajectory over the next years i think you nailed it on the head for them to get back up, i think they need to have the next chapter, which is something else you and i know wall street likes

to buy growth whenever it can. >> michael, thank you, big time. coming up, when we return, the nasdaq see ac notable sell-off yesterday right after apple surpassed that $3 trillion market cap we will talk to tech investor mark meeks for stock he likes. that and so much more when "squawk" returns >>

. good morning, nasdaq futures pointing to more losses for tech, we'll tell you what you need to keep in mind for your portfolio. fresh jobs due this hour, an early look at december hiring with adp's private payroll number due in 15 minutes more confusion over the guidance, the cdc declining to require a negative test to keep more people in isolation we'll talk to the fda commissioner dr. scott gottlieb what the thinking is here the final hour of "squawk box" begins right now [ music playing good morning, everybody. welcome back to "squawk box" here on cnbc

that's right we're still at it. it keeps going i'm becky quick along with andrew ross sorkin and joe santoli. joe is off today the markets this morning not in the same mood in the last couple days modest declines, the dow futures set a new record yet again yesterday. the s&p was down yesterday and this morning 5.5 points. the nasdaq, a big point nasdaq down 1.3%. we did see technology down across the board with nasdaq, this morning indicated down 58 points a large part was what we were seeing in treasury yields, tech stocks under pressure. it's a trade, ten-area note at this point is yielding 1.653%. andrew >> okay. thanks, becky. meantime, some of the stories investors will be talking about today, boeing close to a deal to sell 50 737 max jets to allegiant air.

it's worth $5 billion at list prices shares of beyond meat are surging partly because kfc plans to roll out the substitute for a limited time starting monday, making a play for people at the beginning of the year who want to eat more plant-based protein. and charlie monger's daily journal nearly doubled its stake in ali baba. it's worth now $72 m an interesting move by charlie munger but that decision i don't know if it's a sign of confidence in the chinese market, obviously, one of the best bets that berkshire ever made was their stake in byd >> and by the way, that was brought about because of charlie. so, char live has been the one who has always been so interested in so many of these

chinese companies. i can't say i am hugely surprised by it. he has been a big fan of what the chinese companies have done. fought hugely surprised by it. he did make comments talking about how maybe the chinese government is right in the action they've taken in the past it has me completely by surprise it has been a source of admiration for charlie watching what some of these companies have done. let's get back to the broader markets right now. mike has been taking a look at the new rotations under way, just in the first few trading days of the year, different year, but maybe some of the same themes we have seen in the past. >> we seen rounds of this over the last year, year-and-a-half but you had to look beyond the broad benchmark s&p 500 to see the action the s&p was held almost perfectly in check by these offsetting currents, buying in the economically sensitive areas. the value stocks and selling in big tech so you see it's been kind of

this shelf that we built on the chart right in the vicinity of 4800 which have been above that level intercession it seems as we are above those highs from early november, it seems like we're at worse in a trading range here let's look at pulling it apart, dow jones industrial average this is over the last year so you see it's actually been extremely comparable performance. we have been in this space where nasdaq did not make a new high recently whereas the dow has managed to nudge towards a new high we have seen these before, right? so take a look here when the dow was been up, the nasdaq was having trouble holding on to those record highs in the spring we have gone through these rounds of rotation towards economic cycles and reopening trades before. seal see if this one has more life to it there is nothing that says they have to keep swapping\back and

forth. on a sector basis, take a look at banks versus semi conductors and software so you can say these various rotations going on semis still are the outperformer on a one-year basis by a lot both of them have cyclical elements to it software is really where you've had a lot of the premium being drained out of those stocks they were very expensive, people wanted the insteadness they're not tied to the economy. maybe they don't do well in an inflationary tape. this is what we see in motion. i think you have to be hesitant to say, we declare now it's going to be this type of market where we buy industrials, energies, banks all year, because the market has had its way of changing the script on us >> mike santoli. we will continue this conversation right now about to sell off in the tech and rising rates, joining us, independent solution wealth portfolio manager paul meeks is with us. happy new year

you just heard what mike had to say. are we going to see a rotation back into tech where are we here? >> so, the way i look at it is mike's absolutely right. you know, we've had a little offbeat frost, particularly in some of those expensive tech names as we end 2021 and enter 2022 i do think that unless the fed indicates that they are going to move more quickly to raise rates and more aggressively when they do so that we will at some point, probably not too far from now, have a peak in the ten-year treasury yield and when we do, we will have a recovery in tech stocks, not all of them. i think mike is absolutely right. the software names, the covid-dependent names are going to continue to be under pressure, because they're not cheap enough yet but i really like the semi conductors i expect them to continues to

outperform tech. after we get through this tush leapt period tech to continues to outperform the broader market >> let's talk about i want does that mean you are buying right now given where prices are? and if so, what are you buying >> so i'm buying select names. do i have a lot of cash and portfolio, just like any that we like to buy on the bottom day nobody knows that with precision in advance, yes, i am buying various semi conductor names during christmas week talked on this program, micron my top pick i very much like qualcomm in semi conductors. i think you could buy almost any company in the semi conductor exam commitment space. >> what do you do about the fang names? the big tech names that frankly so many investors have money in right now? >> so among the fangs, i would say as a group the faanks i am

you bullish only a that bet. not so many others, i know everybody on the planet is rallying around apple. i think am is particularly expensive and worrisome to me. >> make the case, though, on apple. we were talking yesterday, i had used the phrase under performs obviously, it's had an amazing performance, under performance relative to the apples and microsofts of the world. >> so here's the deal with apple. it's trading over 30 times this year and next, even the bullish wall street analysts are expecting both revenue an earnings per share growth of 2, 3, 4, 5% so there is a huge mismatch between valuation and i think rational expectations. what analysts are doing to justify ever increasing their price targets is they're starting to blend in their forecasts on announced products, virtual reality, metaverse, ai, autonomous vehicles apple may or

may not play in all these. these are products unannounced and markets sometimes are unannounced. so i think analysts on the street have gotten way ahead of themselves on that one. >> there are a bunch of people, by the way, playing chip makers on the assumption that the metaverse real and ai and all the other things you just talked about are coming that that is a play to the extent you want to play those themes, i know they're sort of actually are themes because they don't exist in reality just yet, a, should you be at all and, b, if you are going to, how do you do it >> so i still think, andrew, the semi conductor names are prime because i don't know which of these themes are really going to take off and how big they're going to be when they take off, but i knew they are all going for a voracious demands for computing fire power so, yes, i love companies, like everybody else, in the semi conductor space that most

directly impact that think about nvidia and amd though i think those stocks are a little expensive so i try to find more growth at a reasonable price oriented into himself that play the theme with less valuation risk particularly as we continue to have a rise in short-term rates that's why i go back to companies leak micron and qualcomm, with i will outperform with less valuation risk >> is tesla a tech company or auto company to you? >> i think tesla is a tech company. i think it's egregiously valued. it didn't have a nice trading opportunity. i talked about buying in on this program a couple months ago. once it back off to 900 to 950 a share, on a trading basis it was attractive now we're getting back to despite they had a wonderful report and they are amazing relative to the rest of the auto industry in their production volumes, that i think the stock

is still expensive. >> paul, it's always good to see you, especially at the beginning of the year like this. we hope to see a lot more of you throughout the year. thanks >> yes, sir. coming up, breaking jobs data, december's adp employment report is next stay tuned you are watching "squawk box" on cnbc

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up to a $500 prepaid card. get a great deal for your business with the ready. set. save. sale today. comcast business. powering possibilities. >> it is time for the december adp employment report. for that we go straight over to steve leishman good morning >> becky 870,000 azp revising down slightly. it's stronger than the bls number for november by 29,505. looking at the details, you can see this number is more than double the estimate total private payrolls or sorry adp was estimated been 375 by the street it's coming in at 807 with

strong gains in the service sector up 669,000 and good gains, 138,000 you can see the non-farm payrolls is certainly light to compared to where the adp estimate s. looking at it by business size, large businesses get the bulk of the hiring up 389,000. still good growth among small and medium-size businesses as well, 204 are small. 214,000 for medium size businesses looking at industry type you can receive you have the job growth, 2 tr46,000 special business 130 education/health services and manufacturing doing well it is worth reading a quote from the chief economist at adp who wrote, december's job market strengthened as the fall outfrom delta variant faded and

omicron's impact is yet to be seen you remember yesterday there is some sign in the high frequency data maybe the omicron showed up as soon as the december job report but certainly thereafter. we'll wait to see. i would not have been surprised by this number if we didn't have omicron. because i thought the november number was well under stated and there was catch-up to be done. now there is a wild card if you ask me what the wild card sir will be paying attention to what dr. scott gottlieb says later this hour to figure out what is going on with the economy. >> these are good numbers. the question is, are they outdated already i think it proves the point from the data yesterday that shows 4.5 million americans quit their job in november. they took other jobs, if you are seeing strong data like this >> right they can go either way on the quits. we don't necessarily know if

they went over to other jobs our intuition is correct there they probably are at another job and looking at the employment number suggests those are strong there. so this is a really interesting time right now what's fascinating to me is not opening are employers having trouble finding workers, they're having trouble retaining them and it tells me, we have yet to reach an equilibrium wage rate when it comes to low and moderate income workers, some of those wage increases are yet to come so we can find omore steady state for the job market. >> steve, that report from the "washington post" this morning, i don't think we have been able to independently verify it yet the idea that democrats and republicans are talking about an additional covid stimulus coming, getting another round, targeting businesses, making sure restaurants and other places hit hard are able to access loans and beyond. >> yeah. it's not surprising that these

discussion would be going on remember you are facing a fiscal clip in this month as well from the federal government with the expiration of the child tax credits. there has been talk about extending that, certainly, there is some nice cool drag built in for this year from reduction in federal spending you do have businesses that have been really badly hurt by this, interesting enough, becky, what they've done is they've ramped up, if you think about the outbreak a year ago, it was a recovery delayed people delayed brigg on workers and so, there wasn't as much pain or fallout. this time around, they did hire people they did bring them on now the business isn't there so it could be more pain the key here to my mind is really the epidemiology of this, the which obviously i am not qualified to talk about. if this ends up being short and sharp, then you could see the businesses could really get through this, maybe with some assistance, not widespread assistance from the government

if this goes on, ends up being the beginning and lasts for several months, then you talk about the need for greater federal assistance >> we do have dr. scott gottlieb coming up in a bit great to see you >> thanks, becky as becky just said coming up of this former fda commissioner dr. scott gottlieb will join us. what omicron means for the concept of herd immunity we want to hear about this we will talk about yesterday's tech sell-off and what investors need to know as fur rutesaise higher. you are watching "squawk" right here on cnbc

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right now the futures are showing very modest declines in the broad indexes, s&p down less than 5 points. fax still has some pressure there down 71 points, about half a percent. though the new competitor in the electric vehicle industry, sony announcing plans to create an ev unit they displayed a prototype at the consumer electronics show in los vegas. the president says the efforts in imaging, sensing, cloud, 5g and entertainment will help it redefine mobility. shares of sony are up 4% so far. andrew, an ev is a computer and

communications device with wheels in some sense >> i think that's what it is and a data processing machine, right, ai. that's where it's all going. that's why i think apple and everybody else will jump into this space we'll see. meanwhile, ev company nichola dropping a $2 billion patent lawsuit against tesla, nichola had sued tesla back in 2018 accusing elon musk company of keeping several of its designs, becky. >> i know why you say it i say it sometimes it looks like richola. i can't help it. sometimes. yeah, western we come back, we have much more on the coronavirus. former fda commissioner dr. scott gottlieb will join us live on the rapid spread of omicron and is cdc guides and a programing note tonight, 10:00 p.m. don't miss the season 15

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welcome back to "squawk box"

on cnbc. the french government warning that a quote supersonic rise in covid cases will continue in the coming days and that situation at hospitals there could worsen. this comes as president manual macron made in a french newspaper using salty language does that mean french? he said his goal was to annoy people into getting shots, by not allowing them to eat at restaurants or go to movies until they do. >> i think he may have dropped an f-bomb. later the cdc amended the guidance declining to add a testing requirement. it says people who have recovered from the virus and isolated threat at least five days can take a rapid test if they want. they don't have to got it yeah, me neither this clip from the daily store under scoring the new guidance

>> if you test positive for covid, you only have to isolate for five days. five martian days. they're slightly longer than earth days if you test negative but you are an aries or a fire sign, test again. your immune system is a free spirit if you can't find a test, get a strong marker and see if you can smell it if you can't, you probably have covid. probably, i said >> joining us right now is dr. scott gottlieb, former fda commissioner and cnbc contributor who serves on the boards of pfizer and illumina. that clip hit a spot with me i feel this is the week we, the cdc, everybody has said, okay, we give up throw in the towel, we know that there are other things that we should be doing, but we're not equipped for it. it can't do it it's going to shut down the economy. i feel this is the moment we

have decided, the cdc decided this is going to be endemic. am i wrong >> i don't know the cdc has made that judgment per se i think this just reenforces the difficulty cdc has had operating in this environment the last no years. when are you a public health agency, you need to speak with purpose and make sure it has a bottom line policy goal. you can't cap cure the public attention for a long duration if time the cdc repeatedly, this is not new to seemingly occupy this space not having an impending health outcome i think they were getting criticism around not having the testing requirement. rather than explain and sticking with their guns, they came out with this statement mealy mouth and didn't accomplish anything if i had to guess what they're thinking they recognize about a third of people who have covid after five days are still going to be contagious, shedding the virus they said as much in who they

put out based on data out of the uk they are recognizing, we're not diagnosing most of the infections, closer to one in ten infections at the best point in the make, we were probably dike knowsing one in three or one in four so this is an epidemic wave driven by people mildly symptomatic or asymptomatic going about their business it's not driven by people that get sick, diagnose, isolate and leave acelation day seven so they're not focused on those individuals and control the spread from those individuals. so i think for consumers, what this means is that you need to judge your individual circumstances. if you will be going back into the work setting or into a family setting after five days, where your symptoms resolve. you think you are no longer contagious you do have a 30% chance you are shedding if you put other people at risk, you need to be more vigilant that includes testing and wearing a mask. >> why didn't it say it just like that? that makes sense, that is clear, it explains the risks and gives

them understanding about how we're not necessarily going to be able to control it at this point. the problem when the cdc comes out with as you called it mealy mouthed statements like this, the cdc sets the guidelines for whatever business, whatever school, whatever local board of health goes ahead and determines things like that i read, it's basically, do what you want. go about your business which means schools, businesses, everybody else will pressure you if you are not going back at that point they didn't say if you still feel symptomatic stay home. they said if your symptoms are feeling better, maybe it's okay. i don't understand why they don't fully explain what they're seeing and going on. i get it we're not prepared for everybody to take a test and get back to work and have essential workers being able to do things at hospitals, at airlines and other places this was the guidance they put out for everybody and anybody. i think all it's done is add to consumer confusion. >> look, you are exactly right everyone is looking for

something to attach their decision to, authoritative buying that's the roamthe role the cdc played it's been going on for years cdc doesn't speak with clarity and in a what i that provides bottom line practical advice to consumers and businesses i don't think they have good insight into how their pronouncements and guidance is being interpreted and taken up in the real world setting. we're seek limitations, fundamentally, we need to reform the information, change the way it puts out guidance and updates its guidance it's not happening in the last administration, it's not happening in this administration i think ultimately congress will have to step in to reprogram that agency. are you seeing the limitations, it's feeding over into frustrations to consumers, businesses and parent. they don't have good information

to guide individual decisions. >> hey, scott, two questions we mentioned a covid czar. there is one, jeff sines how would you grade what he's done thus far? you don't see him out there publicly at all, given the six we're in, i am surprised we are not talking more about him >> look i think jeff has done a very good job. i have insight to his role i wouldn't call him in covid czar he has purview over one response, when it comes to rollout of vaccine, therapeutics, making sure there is an adequate supply. for example, the decision by the white house to try i to provide a pathway towards delivering beefrts, the cdc and fda making a decision that was jeff involved in that that was one of the best decisions, had they waited for the cdc and fda to act, i think for the first time start as to

put the infrastructure to decide that rollout, we would not have been delivering boosters for two months past when they ultimately made their decision. by working in advance to lay the groundwork he was criticized for it they were able to hit the ground running once they made the decision to authorize the boosters that's the kind of planning we have in place. we seen it on the product side in part, because jeff has been there. we haven't seen it in other aspects of the response. >> the question question is about the price of the price of testing, the white house pushed to have retailers sell tests at costs. you are seeing walgreens, cvs and so many others charging a lot more walmart increasing its price at a time we need these more than ever do you think these companies should be doing this on their own, meaning, should be selling these things at costs on their own? do you think the white house should put a few policy in place?

how do you think about pricing and i say this also because are you on the board of pfizer there is questions by the pay about the pricing not just vaccines, perhaps more importantly the prices of what their therapeutics ultimately costs? >> look, you need to make sure they're accessible to consumers. when you are a company in a public health emergency. pfizer has certainly taken that approach i think a lot of other companies has as well. with price, if you do serial testing will be too much if you pay out of pocket. with therapeutics and vaccines, the orally available drug, monoclonals, the government stepped in to pay for those to deliver them free to consumers i don't know why we haven't done that, given the recognition how much important these tests are we could have directly subsidized it. there was certainly plenty of money. if there was a question to

re-appropriateed that money. congress should have stepped back in to provide legislation and a clear path to do that. the one thing i would sigh, though, we compare the pricing to what they cost in europe. we need to recognize, we probably have $5 of qc and legal costs, regulatory loaded into the products in the u.s. so they will be priced differently here than in europe because of our different regulatory and legal environment, which adds to the costs of the products. it seems as to more why the government is stepping in to subsidize them. >> what do you think the price truly is to an abbott? given the regulatory issues are you talking about. the other piece of this is, how much of it do you think was a strategy by the white house, by this administration, to focus solely on vaccines in place of testing, in part, because there seemed to be and even some of my own reporting would suggest this, a worry if they went down the testing path that maybe less people would get vaccinated

because they think they could test out >> i think that's a little machiavellian. i think you see a lot of governor dos that as well. i said before last time we talked on pond part of the challenge has been the inability to stockpile, the expiration dates, look at the expiration date. i let you it's not more than six months on a test you bought recently so because the expiration dates were short-dated that owed to the fact that these were rushed to the market. he didn't do the long-term civility studies to demonstrate they could sit on a shelf for a while. you couldn't stockpile them. that's why abbott destroyed those tests, it wasn't because they were destroying tests willy nilly, they were expiring, coming up on their expiration date they couldn't ship tests into the supply chain with more than

three or four months of shelf life on them there were regulatory things that would ilou more stockpiling of these tests going forward zot, we just got some great adp numbers showing strong jobs in december, strong hiring. but those numbers kind of cut off earlier than this real spike that we've seen in omicron, especially in places here in the northeast. i think that raises some questions. steve leishman was just bringing it up. maybe it's something we are withstand if we blow through this quickly and get back to normal at a very quick pace, he wanted to hear from you directly wouldn't you think we kind of get through this surge is this time different bus it's going to b -- because it's going to burn through quickly? >> it will burn through quickly. new york state, florida which is a week or a hands. of dies behind new york. the mid-atlantic region, the pacific northwest will paic this week i think you are seeing top cases

in new york and florida as difficult the state sis we will come down the curve certainly next week. it will work through other parts of the countries more slowly there are many parts where omicron hasn't arrived yet certainly in the large metropolitan regions, there will be a peak. the parts like florida and the mid-atlantic probably as early as this week we think we will be through this certainly by mid-february. it will get more apparent as we get into next week. >> so signs for hope >> look, i think there are signs for hope in terms of consumers resume their lives on the back end of this. it should decline substantially. hopefully, this is the last major waist. i said that before hopefully we put enough in the population that prevalence declines into the spring and summer who knows for next fall?

this will become more endemic and seasonal now that said, there will be extreme burden on hospitals, especially in the northeast. florida was better able to weather this they were out of the delta wave. they didn't have a lot of covid hospitalization going n. you haven't seen them grow as much in florida n. new york state, where they were having a delta waist. they had covid outbreaks at the outset of this, there are sa lot more challenges. i submit a lot are delta admissions in the northeast and mid-atlantic the cdc is not measuring that. one hospital is sequencing their patients 30% are actually delta omissions. it accounts for a high percentage of the actual admissions that's what they're seeing in florida and new york florida looks more like south african. new york is with delta, it's not getting adequately measured. >> we did have a doctor from newark, new jersey hospital earlier this morning, brian sullivan, we interviewed him on

the world wide exchange this morning. he says of all the people in the hospital, trying to break it down, you hear these hospitalizations of people with covid, the question becomes, were they hospitalized because of covid or were they hospitalized for something else and tested positive for covid-19? he says 60% of people tested in the hospital with covid, it was like instcidental testing they were there for something else the big problem were not the number of beds but the staff able to be there if you get omicron, you can't show up for at least five days, it was the staffing problem that was a bigger issue for them at least at this hospital in newark >> right look, that sounds like an outlier. although, i don't know what the experiences of new york hospitals. they haven't put out that data if you look at the data out of the uk, in the lost 24 hours, 67%, almost 70% of the admissions they measured were koichltd 30% people admitted for

another reason found to have covid. that sounds more reasonable. the split was 80/20 before omicron. i would expect it would tip more into incidental hiccups. not to that amount that might be a little of an outlier. if that is the general experience, that changes our reflection of this epidemic wave, though >> the other thing is people are getting sick with this it's a different sickness. we seen reports on that, too it's not necessarily the same admissions, the same sort of breathing and difficulty and those type of illnesses. a lot of times it's under lying conditions getting aggravated in a big way because of this. have you been able sort that out, too >> it looks like more general support and care, more people rierk fluid and mild oxygenation, chan the chronical care bed utilization in new york

state has been steady. availability is running about 20-to-25%, which is pretty good so the icu units aren't getting pressed. what's happening is the general floors are getting pressed it's kind of the opposite during the first wave with the icu admissions that were getting filled up. they ran out of critical care beds and ventilators this seems to be a mild illness, it is filling up a lot of hospital beds a. lot of the admissions are probably delta admissions >> dr. gottlieb, thank you, as always for your time great to see. >> you thanks a lot. coming up after this jim cramer's first take on the trading day ahead. check out the futures this morning. we have a little over a half hour to go the dow off six points. also, programing note, you don't want to miss an interview with mary barra this afternoon on perow lunch at 2:15 eastern

time stay tuned you are watching "squawk" on cnbc don't like surprises? [ watch vibrates ] proactive notifications from fidelity keep you tuned in all day long. so when something happens that could affect your portfolio, you can act quickly. that's decision tech, only from fidelity.

welcome back to "squawk. i want to go down to the new york stock exchange where our friends jim cramer joins us. jim, i follow you and you said china is investable. do you agree, this morning we learned charlie munger has invested in ali baba

obviously, ali baba has come down in price. he is making a bet on china. what do you think? >> there is a sense the middle class will do better in china, therefore, they will buy more on ali baba my problem is president xi, a really good article, by the way, a couple good articles, but just going, we get the feeling, frankly, that he's a communist he's more malice than we thought. that he made may be the first dictator and doesn't care about capitalism in that backdrop, can you imagine a president feels like that here and trying to buy stocks i just think it's impossible i think it's impossible. >> but look charlie mupgenger in the other side, saying ali baba has a much brighter future do you think that's a misguided

view >> the stock is down a lot and certainly anything can bounce yes, i think that the course of history is changing. i think we're trying to avoid a very bad cold war. i think president xi has complete contempt for us, for shareholders and contempttuous of rich people, who he thinks threatens his power. this is all geopolitical ali baba will do well. but that doesn't mean that their stocks are translate into doing well i think the president xi does not like capitalism. and he is going to return to the old style. >> is there a price, though, at which you would buy into any of these companies? >> why would i do that why would i do that? >> i'm just asking the question, you can make the argument at some point the price is low enough the risk that it cowants to go lower is reduced >> well, can i do that but

that's irresponsible of me to do that i can't recommend buying stocks in a communist regime that is totalitarian dictator who is not just human rights but is doing much more than that, to be able to solidify his power. i think it's irresponsible for me to come out hereirresponsibl at 108 it's fully discounted that the man is a terrorism dictator 97, it doesn't matter that he's killing a lot of people and retraining people in concentration camps, and don't worry about it i'm not going to do that i'm not going to do that i just can't do it i'm sorry. yeah, maybe there's a level, but a level? look, you're dealing with a total wild card. if he is reelected and there actually is an election in november, this will at any time. look at lenin late in life, they

made us feel like they would be more american, but completely untrue it turned out to be a disaster i just think that to analogize to stalin at this particular moment, a young stalin, is entirely possible. why invest in a regime that hates america, and it's like -- and if -- he would write a letter, they guys really want a war. i can't do it. charlie is a genius, but i can't do it. >> i'm not going to try to talk you out of it. i think over the next year, the issue of human rights? china will become even greater, especially the spotlight on china throughout the olympics. i imagine it will put pressure on companies that have businesses there >> i'm sorry i'm willing to pass up some betting that president xi is a

little more like mao than we think. he was a terrible investment. >> we'llsee you in a couple minutes. looking forward to our conversations and seeing you with the gang on "squawk on the street." of course, you can hear and see a lot more of what jim is thinking in his investing club point your phone at the screen right w sscnotoubribe to his newsletter it's the most wonderful time of the year. it is all about t-mobile with their great phone deals for everyone every day including customers on sprint. tell us more dianne.

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some of the biggest premarket gainer are those energy names, diamondback up nearly 2%. devon energy, hess, and xli all up so far. also, one of the biggest individual movers on appear upgrade to buy is garmin the big fitness wearable trainer, so those are up about a

percent. and as we often do in this third hour of squawk, yesterday as most popular searches yesterday. dom, thank you very much let's dig deeper into big tech, nasdaq futures are currently under some pressure. steve jang is an early investor in uber, coinbase, total and about 80 other startups. great to have you here this morning, as somebody who invests in earlier stage digit at companies, what message are you taking out of the really the collapse in valuations of some of the emerging tech companies and a bit of a stumble in the dominant platforms

presumably those are the companies that your investments either want to become or compete against. >> good morning. thanks for having me again the major issue is a lot of the cloud computing stocks have been a way out whack. during covid especially, very optimistic, to say the least, so companies just haven't been able to perform to keep up with that valuation, so you're seeing a lot of that correction right now. with faang and tesla, a lot of these companies have thrived during covid, but even the last few months, so you're seeing a big leap with apple and tesla. really catching up to the number one in volume, which is toyota,

which was the biggest argument again tesla for a long time, where was the volume so i think we're seeing the fully verticalized, which is interestingly two hardware companies. apple is a cloud computing company, and tesla is a cloud computing company in the vessel of a car they control their own supply chain. they manufacture their own key components they own their own retail distribution as well as their supply chain so i think the story is mixed there. you see a lot of correction, in terms of the lofty valuations we saw in the last few years during covid, but you see the major big tech platforms are thriving. they're still vulnerable weapon 3, ar/vr, and a.i., these are vulnerable for a lot of

these big tech platforms 2022, i think you'll see a lot of stress on whether or not these companies can continue to grow i'm from the venture capital world. we bet on early-stage startups, so you know, focused on web 3, crypto, metaverse, and web 3 and ar inv ar/vr technologies >> you're saying these trillion dollar-plus companies remain vulnerable, because their platforms are so closed and insular? >> yeah, it's a blessing and a curse, right they've built the multitrillion dollar -- and because it's a relatively closed system apple, for all its strength, is not an open web company. tesla is essentially has four

products out there that they're selling. you know, the opportunity right now for the privacy markets, you see valuations getting a haircut in the private markets you're not seeing that haircut valuation. >> yeah, we got to go. absolutely that's what we've got to look for. thanks very much join ugh tomorrow. "squawk on the street" is next good wednesday morning welcome to "squawk on the street." futures moderately -- and two days off rotation, fed minutes will be important. but 807,000. the biggest jump since may