an increasingly hawkish looking central bank we have details straight ahead new this morning, the cd signing off on booster shots for kids age 12 to 15 amid the covid surge coming at the same time as school reopenings. it's the anniversary of the january 6th, capitol riots we'll look at the corporate political donations and where money is flowing after companies pledge to pause or reevaluate. it's thursday, january 6th, 2022 "squawk box" begins right now. good morning, everybody. welcome to "squawk box" right here on cnbc i'm becky quick along with andrew ross sorkin, and mike santoli joe is off today but we want to wish him a happy birthday

big day for him. less of a big day for the markets yesterday we're w56atchn the fallout as the dow is coming off a nearly 400 point loss. the dow was actually the relative winner yesterday. it was only down about 1%, versus 2% for the s&p 500 and the nasdaq, which was down by 3.3% it was the big loser and this all happened after the december fed minutes indicated an interest rate hike could come as soon as march and reveal discussions about balance sheet reduction. lots of interesting things happening here you can see the drop came just after 2:00 when the minutes were released we'll talk with steve liesman more in a couple seconds about this mike, you were watching this this as it was happening and seeing this realization that the fed is going to potentially move actively i don't know why that came as a surprise but you did see big act especially with the high market -- >> it was a little more hawkish

than anticipated obviously the minutes are a summation of a debate. right. so you hear all sides of the debate but the market, in terms of the mega cap growth stocks that really were hurt, they were already on the down side i think you have to keep in mind you kind of pushed a market that was already a little bit off balance and that to me explains a lot of the action yesterday when you have, you know, again the big tech stocks for the last two days, people have been exiting them the markets are repricing for what it sees an economy that the fed is going to have to push a little bit to fight inflation. in a weird way it's what people have been anticipating and hoping for, which is we'd like to see industrials and banks and energy companies actually take the fore for this market and maybe people to own a little bit too much expensive microsoft and, you know, snowflake and whatever else. so i think that this is somewhat the way it looks when you're

having this kind of jagged rotation in the markets. and, you know, yields are part of that story but to me they're coincident with everything else, it's not just the bond market telling the stock market what to do. >> it is weird to see a 3% drop when it's what we've been expecting the fed to do. i know it sounded more hawkish but didn't sound different from anything i anticipated going into this. it's strange to see significant moves when people are like, yeah, they're going to do what they said they were going to do. >> it's how they're framed in the minutes. the fact they're saying we're going to let the balance sheet shrink as we raise rates or shortly after we do. it's a market prone to look at the risker side of things because it was already under pressure that's how i would characterize it. >> the dow and s&p 500 both indicated a little bit higher. nasdaq was indicated down by

maybe another 34 points or something. as mike mentioned the yield is what we've been watching too at this point you're looking at the 10 year yielding 1.737%, so that's been a significant mover. something to watch, right, andrew, as we go through all this. >> it has been something to watch. i don't know if you're looking at the corner of your screen, where bitcoin is >> it's been under pressure. >> something that continues to be correlated for an asset we decided it's uncorrelated can we say it's correlated, nothing unconsrrelated about th? >> yes >> can we stipulate. >> we know exactly how many dollars of bitcoin comes out of it when the nasdaq goes down a certain percentage a key thing is, a lot of people with heavy commitments, own a lot of crypto own a lot of high growth stuff it's a similar kind of constituency out there

that in itself means if you're selling stuff you're going to -- it's going to sweep across the board, i would say that. by the way, in terms of the yield, the two-year going up to 86 bases points also the key sensitive to what the fed is going to do let's get to steve liesman for more on what we learned yesterday. you were handicapping this balance sheet discussion yesterday as well. >> yeah. we talked about it yesterday we've talked about it before going back, mike, the first mention by a fed official of balance sheet reduction was september 28th by bullard. he talked about it again in october, november, and then waller, talk about it in a second, i'll get to that in the end about the st. louis axis that's developing on the fed but minutes to the december meeting suggesting the central bank could be more aggressive raising rates and redid yucing $9 trillion balance sheet. the minutes said, quote, current

conditions could warrant a potentially faster pace of normalization. the fed, by the way, is still going to be adding to its balance sheet through february markets are now dialing in a better than 73% chance of the first hike m coming in march with solid probabilities as you move to the right. those are other rate hike probabilities. probabilities of a second hike in june, a third in november a 40% chance of a fourth hike in december now here are among the options for reducing the balance sheet discussed in the minutes begin sooner than last time. good agreement on that possibly relying more on runoff than rate hikes. reinvesting mortgage-backed securities as they run off to proceeds into treasuries final cap the total runoff j.p. morgan writing after the announcement yesterday we expect the fomc will phase in a $100 billion mothly cap on runoff, double the pace its

balance sheet was in 2017 to 2019 the fed needs to move rates up and tighten conditions to fight inflation. the previous actions only received a muted response. so a more aggressive stance could be force equities to tighten. guys, mike, if you remember, it's been bullard, and then it was chris waller what you need to know is that waller was bullard's research director so we have the st. louis arch now on the federal reserve policy here -- the hawkish arch from st. louis leading policy here >> they're saying show me that inflation is going to come down, i don't believe it, right. we have to do something about it you know, in terms of the balance sheet stuff, i think one of the key issues in the commentary is, nobody is quite sure what, if anything, it will mean i think the market has to account for the fact we're not

quite sure what it's going to mean you mentioned it might force yields higher. some would say actually part of the point is to try and maybe let longer yields drift higher as we raise rates because you don't want the yield curve to invert or something like that. >> right it's a very sophisticated discussion, i was talking to paul about this yesterday. the fed needs to bring up the short end, if the long end doesn't come up, the fed inverts the curve, doesn't want that to happen the fed wants to raise rates any fed official after the shock is over is only headed one place. headed to neutral. neutral right now is 2.5 i don't think the fed is headed there, i think it's more to 2. but headed towards neutral if it wants to get up to two on the short end it has to have the long end come up you can read the minutes and see

the fed saying it didn't move. so the idea of selling off the balance sheet getting more reaction on the short end allows the fed -- i'm sorry on the long end, allows the fed to raise more aggressively on the short end and may do more on the balance sheet, mike. you're right it doesn't know how the economy is going to be affected. how the stock market is going to be affected. it's wary of this and you can hear that from powell not knowing how the markets are going to react. >> steve, that's what i was going to ask you you talked about the st. louis arch, but how much influence do you think that group actually has over powell and the other pieces -- i've always wondered this about these minutes, given that they're public, how much of a performance is made in the meetings so that the minutes can have their own impact on the markets? >> right and you're not asking another question, andrew, that i think you also imply, which is how

much of an edit are the minutes in order to send a signal? there's certainly some job owning going on here, that's for sure here's what happens, andrew. a phrase that i remind myself which is dissenters can lead the way or lead you astray you have to back up, andrew, and ask yourself are the people who come out and make some of these statements that are really news si i remember december 17th we made a big deal about governor waller talking about the idea he wanted to bring the balance sheet down to 20% gdp i didn't know then because he was new on the board we don't know, did powell send him out? powell said at the last press conference that some of these speeches by other fed officials, quote, don't happen by accident. i've always learned not to discard some of the things that sound more outlandish from

bullard. in september he was talking about balance sheet reduction, talked about it again in october and november here's the fed on an earlier timetable talking about that you're right, there's a question about how seriously to take it and the extent to which they're sending a message in the minutes. >> right >> steve, thanks a lot we'll talk more about it for sure always good to steve mr. liesman inside take on how this works we have two quick covid updates this morning children ages 12 to 15 are eligible for booster shots of the pfizer vaccine, gives an extra dose of protection as they return to school yesterday the cdc officially recommended the booster for that age group. and then we should tell you about what's happening in chicago. because chicago schools are cancelled again today this after government officials and the

teachers union failed to come to an agreement on safety measures. teachers are refusing in-person learning until their demands are in place the mayor blasting the teachers for disobeying her order to report to in class learning. the mayor urging the union to show up to the bargaining table first thing this morning we will see whether that happens. becky? >> i mean, this is such a complicated debate and i could argue either side of it at this point, as a parent you desperately want your kids back in school, but you also know what's raging through right now, this week and next probably are the height of it in this area is highly contagious, you know, variant that it's really hard to protect people from. and while you hope your kids aren't going to get very sick, you hope it's not a big deal, i spoke with some teachers yesterday, not my kids'

teachers, i have a friend in another town who was telling me about her concerns because the kids are less than 3 feet apart, on top of each other, eating snacks in the classroom, eating indoors yesterday. and it definitely raised her concern. you know, just -- if you have little ones at home who aren't old enough to be vaccinated yet, if you have older parents taking care of your kids i can completely understand the concern because we're not using the same mitigation we were a year ago at this time, even six months ago at this time when kids were about to get out of school, desks were further apart, you had more time outside. i can feel both sides of this. but i also know how bad it is for kids to not be in school this is how it's playing out i have my own concerns about this i'm sending my son to school right now, i'm not sending my 5-year-old because of potential cases i've heard in the classroom. it's tricky. >> obviously you have a set of

imperfect possibilities here no perfect solution. my kids are in new york city public schools the schools are open, they're being pretty lax and allowing people to make the choice for kids to stay home and allow them to access things remotely. it's improvised >> ours aren't the problem is it's tough for the teaching staff. >> sure. >> which is so exhausted at this point too to do the virtual option so we don't have a virtual option at this point, unless you're in quarantine. >> these are older kids. >> yeah. it's -- i don't know i don't know what the answer is on this stuff. it's complicated, i guess. when we come back, we'll get back to the fed news and the markets. the nasdaq plunging in the first few trading days of the year and later tom friedman weighing in on the first anniversary of the january 6th riot at the capitol. you're watching "squawk box" and this is cnbc

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the broader markets closed lower yesterday as we've been talk about it and the nasdaq was losing ground all day, if you watched just after 2:00 p.m. when the fed meeting minutes came out, that's when the steep selloff came it showed that the central bank was turning more hawkish, that's bad news for any company with a really high valuation. for more we're joined by gene munster. yesterday was the worst day we've seen in almost a year for the nasdaq looking just for the week-to-date, the index is already down by 3.5% and you say there's more of this to come what's happening >> exactly, becky. i think it's important to start at the distinction between the near and long term and everything we're talking about in terms of the step down is near term. what the fed is doing. and to put some perspective on that, what caught my attention

yesterday was, of course, the balance sheet. the size is a little bit bigger. the minutes suggested that the runoff is going to be a little bit quicker. that was a surprise to the market the market does not like surprises. and if we step back and think about what the fed has done over the last few months, it has been a series of surprises. and they've been rooted in a belief that inflation is going hotter and they need to do more. their response has been muted. the fed's response has been muted. i think that this near-term can continue to show down side until the fed takes stronger action. what we've effectively shifted to is the market is in a near-term gameof fed roulette. this anxiety is the last thing that investors want. and until, i think, the fed really makes a strong stance against inflation, i think the market is going to continue to wind down. because historically, especially the tech sector like you said

because of the higher stocks, historically the market would suggest ahead of fed interest rate increases, there's still another, an additional 5 to 10% down side to the nasdaq. and so, i just kind of anchor this, think about the near term, and think about this anxiety and i don't think we're done maybe the market is up a little bit in the next few days, maybe it's down. but until investors feel the fed has a strong handle on this, i think we're going to continue to move lower >> gene, if you are convinced of that, are you selling stocks right now? any of these high flyers >> well, i think you should most concerned about anything with high multiples when i think about faang, faang has actually hung in there, it's down 12% from its highs. broader tech indexes that exclude faang are typically down 30%. so to answer your question, are we selling stocks, we continue

to hold facebook, we think that has some earning support, as a connection to the meta verse which we think is a theme, we believe strongly in apple, the earnings power, we believe they have a plan in the metaverse, the ev space but there are other companies in faang we're concerned about, this is near term, talking the next month, that would be companies like amazon and netflix. those two still trade at a 57 multiple if you look at apple and facebook, that's more like a 26 multiple so yes, i think that this is a dose of -- i think it should be some conservativism, i think people should adjust the portfolio. when you have a bad day like yesterday, a two standard day, it just can't continue but the reality is this can continue i also want to be clear that i -- i think that we will see a rebound. i think once the fed takes strong control of this or at

least investors have confimforto that, i think you will see a rally in the tech names in the final three quarters of the year >> if you like meta and apple, and you think that they are going to weather this pretty well, when you see those stocks sell off, do you buy additionally or is it a little too hot right now all the way around >> i think that in the case of facebook and apple, you can buy those today. i think you can buy them on the dips i think they can go lower, but i just have conviction they will ultimately go higher so i don't want to get too much into the timing of that. i think if you step back and look at the other higher multiple companies, even these ones that have sold off significantly, some of the high flyers, they can continue to go down that's the simple reality of it just because things are 50, 60, 70% off that you are highs doesn't mean they can't continue to go lower. to answer your question, i think you continue to add to great

companies and i would put apple and facebook in that camp and i think a lot of the other market i would be in a cautionary phase. i think probably one final thought about how long this can continue, the fed meeting obviously is coming up at the end of the month there's a strong case that the fed doesn't do anything because of omicron if that happens, the fed says we have too much noise around omicron, i think the market is going to vote basically wrong answer and sell off on that. i think the best thing that can happen for this market is for the fed to take a really strong aggressive step, take the band-aid off, give visibility to investors and i think the market will stablize and start to work better then. >> in other words give us our medicine, we're ready for it. >> i'm ready for it. >> gene, words of caution. thank you, great to see you. >> thank you. coming up when we return, the covid surge canceling or postponing several more high profile events and we have

details to tell you about that next and later, new york mayor eric adams is going to be with us to talk about the city fighting the surge, new testing strategies and schools "squawk box" is coming back right after this

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welcome back to "squawk box. the sun dance film festival has scrapped plans for an in-person event this month and will continue as virtual only the annual if festival was set to begin january 20th in park city, utah as a hybrid event, but now the organizershave called off the in-person component because of the surge in omicron cases it's forecast to peak in the

host community the week of the festival and some more cancellations to tell you about the grammy awards are postponed as well. the event was set for january 31st in l.a. no new date has been announced and then there's the saga in tennis, mike. >> yes, let's get to that. novack djokovic in his bid to defend his australian open title months ago he made it known that he didn't want to be vaccinated. he's been an outspoken critic of vaccine mandates he entered melbourne yesterday with an exemption but it appears that the exemption buzzwas gran by tennis and not the government so for now he's appealing the decision and will stay in a guarded hotel until monday australia's prime minister said it wasn't appropriate to discuss

the player's medical history but said it clear they made it clear to event organizers that a recovery from covid would not exempt players from vaccine requirements >> i don't know if you saw bill tweeting about this minutes ago. >> yep >> what did he say >> he has a lot of -- bill is a big tennis fan. >> yes. >> i'll see if we can get the tweet up there on the screen but -- >> essentially saying there's other players who have been granted medical exemptions and because he's the top guy -- >> i'll read it. how is it that djokovic is held in detention after being granted an exemption to play when a, quote, handful of other players were granted the same exemption and were not held at the border. uz why does politics need to be in the game, why doesn't the atp stand up for the rights of some players and not others

the mix of business, tennis and omicron in one place. >> rules for thee but not for me that is like the -- if there are rules that we all have to follow, let's follow them. if we don't think there are rules that everybody should follow, let everybody be free. you can't have certain people exempted from rule i get it, if these are the rules and they set them, follow them there's nothing more frustrating than people telling you, you have to follow these rules and you don't. >> especially for a country that has had a zero covid policy and the residents have been under stringent requirements for so long. >> i'm tired of the government telling me what to do while others don't follow it if you have the restrictive rules they should apply to everybody, including the rule makers and the top and most well known people. >> coming up, bitcoin under pressure this morning. we'll look at stocks related to crypto that is next as we head to a break, a

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good morning, everybody. welcome back to "squawk box" right here on cnbc it is the morning after the big down day for the markets big draft down, especially for the nasdaq which was down by 3.3% yesterday this morning the dow is firming things up a little bit, up by about 100 points after losing 400 points yesterday s&p is up by 2.5 points. and the nasdaq is down by about 51 points. right now a look at this morning's biggest movers and dom chu is here with that. >> a lot of stuff happening with cryptocurrencies in particular a lot of assets viewed as riskier by traders and investors have been caught up in the downdraft we saw in the fed comments in the minutes about the aggressive more tightening of the policy. if we saw bitcoin prices hovering near level over the

last couple of weeks holding at the 46, 47,000 level we're down to 42, depending on which measures you look at ethereum down about 7.5% and a couple of smaller coins we talk about with regard to other parts of crypto, lite coin down and dogecoin down as well. we're seeing weakness from yesterday tied to the fed minutes. if you look at the overall scheme for how bitcoin prices have reacted so far at the 42,831 level we're roughly down about 37% or so from the record highs that we've seen. that was just around the 68, 69,000 level there if you continue to watch that down trend the 40 to 41,000 level is what we're going to watch. that was the low over the course of the fall period so we'll watch that level if you look at some of the

stocks that have been part of that ecosystem within cryptocurrencies, coin base is one we tend to watch, the biggest exchange operator up about 1% this morning, getting a bounce so far. that's getting help because analysts at bank of america have upg upgraded that stock to a buy rating they think a lot of that is driven by some of their diversification away from straight retail trading revenue looking at their service offerings, reward programs they have an nft platform coming up robinhood up about .2% but micro strategy, paypal, block inc., ones associated with cryptocurrencies and bitcoin in particular as part of their platforms for payments and whatnot are down on that bit of news as well we'll continueto watch many of those names. back to you. interesting that fin tech is falling while the old-school financials are benefitting from

the higher rates we'll see you in a little bit. >> cyclical, right coming up right after the break. fallout from the capitol riots one year ago today we'll follow donation money from companies to politicians later don't miss our interview with new york city mayor, eric adams to talk about the surging case counts, long testing lines and so much more we're back right after this.

>> welcome back to "squawk box." it has been a year now since the january 6th riots at the capitol. around 250 companies promised at the time to pause or reassess their political donations after the events of that day ylan mui joins us this morning with a look at how much money has returned and who's getting it good morning. >> reporter: good morning, andrew a year ago corporate america denounced the deadly attack at the capitol as violent, horrific, a violation of foundational principles and they followed this talk with action suspending or at least reevaluating political donations to the 147 lawmakers who voted against certifying the election. now a new nonpartisan watchdog

reports the corporate cash is flowing once more. citizens for responsibilities and ethics in washington tracked the companies that started donating again they include, boeing, ford, pfizer, at&t and our parent company comcast. all together they gave nearly $5 million to members, leaders or committees, i reached out to the companies i just listed some declined to comment. ford said they resumed after revising their criteria. pfizer said the plan was to stop donations for six months more than half of the companies that pledged to pause cut off cash for good, toyota, salesforce, bank of america to name a few now the business community, guys, was unusually outspoken and vocal after january 6th, but clearly corporate america is still grappling with how to

approach its role in washington as well as democracy overall back over to you, andrew >> there's been so much -- you really do look through the numbers obviously there have been companies that have cancelled their pacs and the likes and things like that but then others who cancelled their pacs but give money to other organizations that still funnel money so there's still arguably a disconnect here, no? >> reporter: yeah so that's what's interesting, i think about this report they look at contributions not only directly to members but also included contributions to party committees and leadership committees you can question whether or not that's the appropriate approach. the reason why they included that money is because so much of those funds could be dolled out to members, some who may have been the election objectors, so therefore they felt like it was important to include that, because it's an indirect way of giving that companies might take to get around the original

requirements that being said, it is important to recognize there are many companies that have sort of kept that commitment going. i think it's really difficult for companies right now in washington because they made this pledge at a time we saw a historic event obviously happen at our nation's capitol, one that shook our country to its core but at the same time many of those lawmakers are in congress and still legislating there have been trillions of dollars of bills that have moved through congress since then. if these companies want a seat at the table, part of that comes with the political donations and the role they play with keeping those members in congress or getting them elected >> thank you, appreciate it. we'll continue this conversation with jeff sonnenfeldt who's also looked at contributions. in an article entitled ceo voices, facts versus fantasy joining us with the numbers and

the implications, jeff sonnenfeld himself someone who was outspoken early, convening meetings with ceos during this period a year ago, if not earlier, and played a crucial role in the decision making the companies have been making jeff >> thanks, andrew. i appreciate that kind introduction and i also appreciate the report it's report, ylon's report is wrong, tom friedman of "the new york times" is citing a similar group in an editorial he made yesterday. i'm sure he has never met the people from the supposed watchdog group, accountability u.s. as we have 73 different splinter groups that have cropped up out of nowhere some of them are legitimate, many opportunity sts. but this data is not hard to see. any viewer going to the federal election committee can find,

like mark twain said, the reports of my death are premature. the ceos' commitments are held up 79.6% are compliant. 80% are still held up. as soon as these commitments were made a year ago today, a year ago, ctually, yesterday, lot of the commitments were made not after the insurrection but the day before the insurrection. i launched a meeting that sparked a lot of these commitments the it was the day before when the people reacted in horror, ceos to president trump pressuring the secretary of state in georgia to intervene in the election to come up with fake reports, is -- that's when they reacted hard, said they weren't going to support the obje objectors. "the washington journal" attacks the objectors for not fulfilling their duties 80% still lived by them. whoever these splinter groups are, the voting rights groups are, they're hurting their

cause. the other side of the aisle, the voter suppression groups are unified. heritage, a foundation spin out and two other closely alied ones here we have 74 groups springing up overnight, nobody quoting the data has gone back to look at the fec. 80% held there's not a single of these 170 -- 47 objectors in congress. only 93 are incumbents not a single one has $1 more than they did in 2019 from pacs. all of them have less money they did from pacs. these pacs held up how much money are we talking about? about $6.5 million, actually $6.8 million that is nothing. that isn't 1.5% -- >> let me ask you a different question, jeff why don't you advocate for companies to stop trying to payoff washington? full stop, period. why aren't we just saying get

money out of it. it is corrupt for -- i just said it, we're paying off washington. that's what companies in america are doing. they are paying off washington to get a seat at the table to -- they're effectively paying to have a conversation, paying to influence the conversation why is that a good idea? why is it a good idea for government and why is it a good idea for the company themselves. they've talked about ibms and others who basically said we're out of this. we don't do this >> andrew, i completely agree with you i don't know that there are more than two or three ceos that are happy with their voice in washington they shouldn't be spending this money, as you mentioned, a lot of them have now permanently put it on hold they're not going back to make congressional commitments for campaigns anymore. ibm has never done it. it hasn't hurt their voice in washington they have ups and downs in product markets but nothing to do with anything going on in washington a lot of these companies have decided that

frankly a lot of them are equally unhappy, with their trade associations that their voices haven't been heard there. there are those who spent a lot, at&t and verizon used to have opposite spending patterns in washington google versus facebook, nothing to do with their voice in washington >> what happens if -- if the former president, president trump, runs again? what happens what do companies do do they give do they not give how does that work >> well, they -- right now, all companies should be lining up on this partisan effort in support of the electoral reform act. as constitutional law expert has a great piece in "the washington post" yesterday how important it is to line up behind it, "the wall street journal" is behind it there's a lot of ambiguity, maybe it wasn't a constitutional crisis, mike pence did the right thing because he called the

right guy, a former federal judge, highly respected, conservative judge, told mike pence what to do, as did former vice president dan quayle, had those people not advised vice president pence appropriately, we would have had a crisis where nobody knows what would have happened it wasn't sure if the supreme court had a legitimacy to intervene there. we need to work on this weird law and have it rescinded of 1887 it was in the tilldon hayes election corporations should be lining up behind efforts for general election reform so we shouldn't have this voter suppression nonsense that's swedin sweeping through. it makes no sense. they should say the big lie never happened that's what companies are doing -- >> jeff -- >> i have to make one point here if i can where is everybody else? we talk about stake holder governance, where are those

stakeholders the 1960s, corporations were responding to the churches, the trade unions, professional associations, the pension funds, these institutional investors pounding their chest with their vir virtue carbon news tral and geometrix that don't correspond to anything the ceos have stood out there. but where is everybody else? >> hey, jeff, very quickly, we're already out of time. i just want to ask you to clarify,ed is tom freeman is wrong, you can be specific i'd like to give him the chance to respond >> tom freeman is completely wrong. i'm glad he's going to be on >> wrong how >> the corporate spending. he's not aware i'm sure he didn't put this information auto on purpose in a magazine leading way the financial times, the

financial times through him and many other media sources at the hill is repeating nonsense the fact is 80% of companies stood by their economy tom freeman should rescind what he said yesterday and acknowledge it and rescind what he said a year-and-a-half ago about covid that we should go for herd immunity, according to somebody he thought was a researcher at yale he wasn't. sometimes he makes mistakes. he said the journalist eddie pearl was a reckless cowboy. he said that to me personally and rescind that at pearl's funeral. he led international safety measures for journalists sometimes tom freeman who is brilliant gets it wrong. he is completely wrong as is elon in the report they are spinning off voter rights groups that nobody has heard of before. >> all right we will follow up with him >> the data is out there >> we will follow up with him. >> it's a lot of them, the money

was already in tran situation. there was a blip at the time january 6th. some of them renegd, like, toyota, reneged and flipped back >> we will talk to him about this thank you for your time. "squawk box" we'll be right back zblmpl

. at&t's warner media and viacom cbs are considering a significant stake of the cw network with they currently own. next our nation's media groups, which owns many cw stations the report says cw isn't profitable by a stand-alone exhibity, but it is a valuable asset at the parent companies the share is aimed at teens and young adults including riverdale and warner media in the process spun out into a merged entity with discovery >> thanks, mike. coming up, new york city

mayor eric adams on the covid surge and much more. michael novogratz on the bitcoin crash and you are watching "squawk box" and this is cnbc.

wall street picking up the pieces after yesterday's stock slide. big tech taking it on the chin the worst day for the nasdaq in nearly a year. the fight to keep things opened. work in the office and hospitalizations down. new york city mayor eric adams talks to you about rising covid cases in the big apple and d.c. on high alert, one year after the january 6th capitol insurrection, president biden set to address the nation today. tom freeman will address that and much more as the second hour of "squawk box" begins right now. ♪ good morning

welcome back to "squawk box" right here on cnbc i'm andrew ross sorkin along with becky quick u.s. equity futures might be moving a little bit back for joe's birthday the dow off 71 points if we opened up right now. the s&p 500 off. the nasdaq still off down around 71 points. let's bring you a couple headlines making news this hour. the cdc recommending covid-19 boosters for 12 to 15-year-olds can now happen that will make booster shots of the phizer biontech immediately available to that age group, a half are fully vaccinated. the cdc thinks one-third are likely to get the booster dose wednesday marks out the 11th straight day more than 1,000 flights were cancelled since christmas eve amid staffing problems and bad weather take a look at crypto currencies

the fed is more hawkish stance, we heard about in the notes from yesterday has hurt demand for a more speculative act bitcoin is trading near the 433,000 level. if we turn it around there on the screen that compares to last year's record high of about 69,000. becks. >> thanks, andrew. let's go over to dom chu he has been taking a look at what's moving in the market after yesterday's big sell-off what are you seeing in terms of the red arose and the green? >> we are seeing most red arose prevail in the technology-related names given the focus on the downside of the nasdaq we'll start with the genereen oe this morning coinbase is up 236 there in andrew's last news bit there, he talked a little about the sell-off in crypto currencies. what has happened with coinbase, it has become compelling at bank

of america to update it to a buy rating they say it's worth $340 over the course of their window here. that's on the upside they think a lot will be driven by the diversification coinbase is having with revenue streams away from retail crypto trading into things like crypto awards programs and asset issuers will pay for some of the campaigns as well as tokens and coins and the nft platform plans so coinbase up 1% in the pre-market trade you can see it's been a downside move over the course of the last couple months. microsoft shares are down. analysts over at jefferies call this their top software pick for 2022 they paid a $400 price target on this stock from microsoft. they think after a blistering run over the course of the last year, you could see continued upside because of its valuation

to other software pierce, still remains rather discounted, so it could be a downside ahead of a move microsoft shares down, only a quarter of a percent it was down 3% in yesterday's trading. one i want to watch is tjx analysts at barclays have called this one of their top picks in retail those tjx company shares have seen a decent amount to the upside during the last couple of months holiday season, tjx and home goods can bring premium brands watch those shares when things kind of get going in the morning trade. >> dom, thank you. we'll see you in a little bit. >> you got it. all right. coming up, new york city mayor eric adams joins us to tell us how the city is fighting the surge in omicron cases and much moving before we head to break let's get a check on the markets. the dow outperforming yesterday,

now indicated up 100 points. s&p 500 up two nasdaq still red, down about 58 points after losing about 3% yesterday. "squawk box" will be right back. >> a. visit indeed.com/hire and get started today. i can get live tv and on demand anywhere. look, serena williams... matrix... serena... matrix... serena... matrix... ♪ ♪ ♪ get your tv together with the best of live and on demand. introducing directv stream.

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the teachers are refusing in-person learning before enhanced testing mitigation measures are in place. the mayor lorly lightfoot accused teachers of ignoring the science when kids needed them the most the mayor urged the union to show up at the bargaining table first thing this morning guys, as we know, an issue playing out in cities and areas around the country >> it is, it is playing out around the country perhaps worse in this particular instance in chicago with the teachers we now have the mayor of new york joining us, mayor eric adams, of course, facing a spike of covid cases in the city seeing 0,000 new cases a day a positivity rate of nearly 35%. despite the surge, adams is vowing to keep businesses opened and students in school joining me is mayor eric adams mr. mayor, we appreciate you

joining us this morning. i'm sure you just the heard the debate and battle with the teachers union in chicago. are you going to be able to keep schools opened in new york >> that is something people have not really acknowledged here in the city i have been working closely with the uft. we coordinated over the weekend to bring 1.5 million tests to our schools, dropped off to every school we have also communicated and really allowed ourselves to understand the safest place for children is in the school building there is no getting around that that's the cience, that's the fact that is not spreading fear i am very proud of the teachers, the union and the coordination of city agencies to do this. >> you've spoken quite publicly about trying to keep businesses in business and getting the people back into the office, the big banks getting their people

back into the office the big tech companies back into the office that's been something you have been talking a lot about the question i was going to ask you, though, how do you balance that want which will help create economic growth in the city with the health concerns at the same time, especially considering, unlike schools where i think for most of the time at least kids will be fully masked, offices, it becomes a little bit harder, i think. >> yes, it means doing it within our span of control. this is really not 2020. this is 2022 2020, we were hit with consecutive, didn't have the tools. did not have the booster shots, the vaccinations now we are fully armed we're prepared we saw the beauty of modern science and the coordination globally to come one a vaccine we have empowered instead of powerless. so we need all new yorkers to get vaccinated and those who could take the booster shot, it

shows that hospitalization rates are down when do you so and deaths are down when do you so and the spread is down when you do so. and, said, simple protocols, wear masks indoors washing your hands, social distancing all of these things that we know that have proven to work so we have to get over it. we spent $11 trillion on covid we don't have another $11 trillion we have to learn to live with covid in a smart, scientific way. i know we can get up and operating in our city. >> mr. mayor, do you want corporations to bring employees pack into the office and would you tell them to do it now? so those not doing that, are they making a misis thatic >> here's how i would do it. first to answer your question, yes, yes, yes. it's time to get back to work. covid is here. you have to learn to live with it in a part is way. because it is even dangerous to keep our economy closed. over a million people behind in

their rent those who need employment that have to make sure that they come in every day to a place of employment we must open up. that account aant to go to the diner and bring in business travelers. we're in this together i say we do a three-day week to let people see how safe it is to come back to work. then we cycle back into a five-day week. we can do this within a three-week period and up and operating in our city. >> despite the fact that people believe and scientists and healthcare figures tell you, we're not at the peak, we still have another week or two to go >> this is a different strand, the strand for those that don't have co-morbidities and pre-existing conditions and are booster shots. many places are requiring employees to have a vaccination

in new york city so this strand of the reports we are seeing of those who don't have the pre-existing conditions, this strand is not as fatal if have you taken your vaccination you know within a five or six-week period you cycle out of it. so we see the high numbers, but you are not seeing the same mortalities for those boosted and vaccinated we can do it if we get together into our places of business. >> mr. mayor, you made a comment earlier trying to get people back into the office if you will, in part, because it helps spur economic growth through how including what you described is for low-skilled workers. aoc then went on as to twitter, subtweeted in your own way she said the suggestion that any job is quote low skill is a myth perpetuated by wealthy interests to justify inhumane working conditions, little or no

healthcare, no wages plus being a waitress has made me and many others better for our jobs who never known that life. what do you think of that? >> you know, right now being in a society we have merged police. everyone wants to take every term and say you want to be offensive. listen, i was a dishdishwasher i went to school at night. my mom was a cook in a day care center the term was low wage workers, they can't telecommute let's be honest. they need the support of those who are a part of our financial ecosystem. if are you not in the office and are you an accountant, then you are not going to go down to that restaurant, that cafeteria, get your shoes shined or take that cab. so this ecosystem includes all of us. i think it's wrong to be home and not go tothe cleaners to clean your suits, to not bring

in business travelers in the city we're in this together so those low wage workers like i have been and who is the foundation of my support, the blue collar workers run this city in a real productive way. the police will try to criticize, everything is so focused and disciplined and you won't be distracted by twitter i'm going to make sure i'm focused on my city being safe, productive and opened. >> you've made safety a huge part of your campaign to become the mayor. there was a piece in the "new york times" over the weekend about riker's island and the costs of what's happening there are so much larger than the rest of the country, frankly. i'm curious what you think you are ultimately going to do about that and whether that impacts actually long-term the safety of the city, itself >> you know i use the term all the time, intervention and prevention earlier this week, i've joined

the rikers district attorney erik gonzalez and he took me on violent gangs. it was a clear chart that he used that all of us should wvenlts i often talk about it is gangs and guns we must go after the gangs and guns even when they are incarcerated as inmates, we must make a safe environment for people to get the mental health they deserve and send a image that violent people will not harm independent people no matter where they are. but there was something else that came out of that. we did an analysis of the young people involved in those students and murders, we found many of them were homeless many of them had learning disabilities and other issues. so that's the previous we need to stop feeding our criminal justice system across the country in this city that's what i will do. we will put in a real apparatus with my new chancellor david

banks. we will make sure the correction facilities with my new commissioner, commissioner molina, we will have pa productive way of making sure these children are not violent or played upon by violent inmates. >> do you think the correction workers and police should be aggressive when conducted when prosecuted we talk a lot about jeffrey epstein on this station over the years and epstein's guards if you remember slept through what was a suicide or at least was alleged a suicide are not going to be prosecuted >> what i think we must look at is look at those numerical number and even police officers doing something inappropriate. that does not speak of the countless numbers of officers in various environments every day and they carry their job with a

level of professionalism that we expect from them they were doing 12-hour tours, in some cases, they were doing three tours. they stick to the signal that this is a dangerous environment. no one listened to them. when i went to riker, i saw the conditions that they're under. i think the prosecutors have a non-mandate responsibility they determine who is going to be prosecuted and who is not based on the evidence. it is my job to make sure that we have proper supervision and a clean, safe environments for inmates who serve their time and for officers to do their job without being abused as well as other inmates have not gone through a level of abuse >> what do you think about jeffrey epstein when you heard he committed suicide, by the way? >> i really don't have an opinion on that. i am just so focused on running this city. you know, jeffrey epstein and other things in the media, you know, they just really, they're not resonating with me i got to give my city up,

operating, safe, functioning i am focused on those 110,000 children that are homeless with over a million people that may lose their home. my jobs, my economy, covid, he is not on my radar at all. that's because they deal with those issues i got to deal with the safety of my city and get my city up and operating. >> let's talk about the economy in the city and actually restaurants. one of the things that has happened over the past two years ago a lot of people think it's been a boone to the city, the outdoor seating at restaurants there is a question how long that will persist? obviously, they've taken over sidewalks, streets, parking spaces and the like. what does that look to you long term >> rarely do i want to duplicate something in another city or country. i like that feel i like the outdoor eating. i love new yorkers being out using our sidewalks better i believe our speech to be

utilized more than just for vehicles and cars. we have to do it right i believe we need to create standards of what the outdoor dining should look like, it was put in place because of an emergency to help our restaurants stay opened. every restaurant i visited stated these outdoor seating places have allowed us to really come up with the economicss to keep our doors opened. now, we keep a restaurant open we hire a dishwasher, a busboy, a cook a. bartender. so it is imperative that we allow our restaurants to stay open and vibrant so we want to look at it, reexamine it, make a determination how to make the proper modification. i really enjoy the feel of the sidewalk dining. >> i got to ask you this question because we are on cnbc you said before you became mayor, that you were going to take your first three paychecks, if i remember. how do you -- have you got a

payment in bitcoin yet and by the way, it's come down unfortunately for you if you have >> well, you know what, sometimes the best time to buy is when things come down so when they go back up, you've made a good profit. let's be clear on this i know it's hard to believe because of the way we are getting stuff done gsd, our motto it has only been a couple days in office, five days i say being mayor of new york, each day is like dog years, you are know, you are fully engaged. yes, i'm going to take my first three paychecks and put into bitcoin. i haven't received my first check yet. i think we need to use the technology of blockchain, bitcoin, all other forms of technology i want new york city to be the center of that technology. i'm looking forward to that first paycheck in bitcoin. >> maybe you are rooting for it to come down as a bet if everything goes back up again.

we'll see. mr. mayor, it's a pleasure to have you we appreciate you being here come on back >> thank you, take care. >> you bet >> still to come this morning, we have more on the big sell-off in tech yesterday as the nasdaq saw its biggest one-day decline losing three and a third percent. then on the one-year anniversary of the capitol insurrection, "new york times" columnist and pulitzer prize author tom freeman will join us walgreens out with quarterly results the drug store operator earning an adjusted 168 a share, that compares to the consensus of 133 as well that stock is up by 2.5% don't be shy, now. i like that prime cut. -aflac! -i love my gold jacket, but that aflac blue feels so right.

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. stocks tumbled yesterday after investors got a look at how the federal reserve is going to cut interest rate mooic santoli, is that a healthy we action? >> hey, you tell me. the nasdaq dropped 3.3% in one session. that's really mild considering what a lot of individual stocks did. roku down almost 12% salesforce down 8% adobe 7. that's ugly. the problem isn't just the fed balance sheet reduction or the plan to raise interest rates surprise, almost at the same time as quickly as possible and what could go wrong? oh, have we forgotten the taper tantrums already may 13th the fed talkt about cutting back on asset purchases. the s&p dropped 5.5% a month

the ten year from 2% to 3 in december and then in the second half of 2018, the fed started talking tough cutting asset purchases again and raising rates at the same time between christmas the s&p dropped 20%. call that sane i get it a lot of people think the market is overheated. whatever the fed officials are doing all this talking, all the signaling all the time to avoid lurchs and moves like this. this is insane it's evidence of a problem >> isn't there a lot of genuine pressure for the fed to act at this point >> well, on the other hand, market are not in turmoil. i mean, let's not freak out about a 3.3% drop in the nasdaq. more perspective, the s&p was down 2% and touched a record high the day before. apple touched ap all-time high in a $3 trademark market cap on monday if yesterday's violent slide, the s&p plunged to levels not seen since the wednesday before christmas, the nasdaq plunged to

december 20th levels, two weeks ago. meanwhile, for those concerned about little things, the real economy overheating, employers added 807,000 jobs in december, more than twice expected yeah, the fed will raise interest rates and downsize the bond holdings, the inflation is spiking and hiring booming it's okay. it's supposed to happen. the fed is giving the economy a cold shower. that might force the market to sober up a little bit after a 27 percent rise in the s&p in 2021. what's it called myopic loss aversion when today you freak out about the drops and shrug off the gains? the classic investor mistake that's exactly what's happening here, mooic. >> well, it's absolutely good context. i know that studies have shown that basically the biggest correlation to bad investments performed over time is people look at their statements every day or their accounts every day. so when then is it time to worry? because it isn't as if it's j

you the fed that was leaning on things like the software sector. >> as you know, mike, we talk about this every day, which is why we got to be careful about this but it's not just one day at a time we got to look at the overall trends remember that apple did just hit $3 trillion and i mean is this the start of something bigger? maybe. i remember last january, we were caught up in the meme stock trades and the mean stocks were hammered yesterday it's a long game >> you are right it absolutely is it changes every day thanks okay when we come back, dan ives will join us with big tech telloff. why he says now could be a buying opportunity we'll discuss it with him. as we head into break, we'll look at some of the lag orgards. stock is off 1, in some cases, tesla's case%. 2 "squawk box" is coming right back after this.

megacap stocksing to a tumble joining us as to weigh in on this, where it goes from here,

dan ives, managing director at web bush good morning you certainly have been an advocate of the big dominant tech names for a while they seem to do great. they seem to wobble a bit. fed fears this general perception maybe they overshot in their valuations. this is kind of a needed correction how do you see things? >> look, it's a white knuckle period we knew going into 2022, we'd see some of these and trading gears start off with a surge especially with the fed minute but look, when i look at the next year, it's the strongest growth, in terms of talking to cios and then the enterprise we seen so when i look at the digital transformation led by names like microsoft, of course aws, you look at cyber security, i think those are going to be areas that are still going to significantly outperform we think tech stocks from here

are up 20% plus and these will ultimately be defining moments do you see here and look at the red screen and do nothing or do you find the winners and the secular ways to play in. >> yeah. i guess the question is, is this the moment and the level microsoft just to take one, it's pulled back pretty hard, almost 10% from a high. but it was up 53% last year. it's now at levels first reached a couple months ago. so you know, has it all been rationalized to a certain degree and are people genuinely i guess maybe overdoing it in the near term just yet? >> well, i can tell you over the last 48 hours, i mean, in terms of hand holding with clients, it's 2-to-1 clients are looking to sharpen the pencils which it owns in the sell-off rather than heading for exits. i think it spoo exas to what we are -- i think it speaks as to what we need in terms of growth.

you look at cloud, you look at cyber security i think cyber security is a safety blanket area across tech. when you look at names like palo alto, atenable and others, so i'm not sitting here throwing in the white towel. i think it's a hands-holding period it's a complex fed backdrop, but i can think 21 years of covering tech, these are the periods that define you, not times to sort of head for the exits, given we view we're in the middle innings of a fourth industrial revolution >> in terms of apple, obviously, i have been a favorite of yours for a while. how do you reconcile the idea that the growth is too strong to ignore these companies, when you have apple calendar year growth 35 five and ten percent over the next years and apple's valuation gotten up to a level it hasn't

seen in many years >> it's a great.i think with apple you got to separate it between that services business, sum of the parts what's the value of it we think it's 100 billion revenue and it's worth 1.5 trillion that's a part of the rerating. of course, have you the maturity in terms of long term. you look at what's happened with iphone 13. this is the core number 250 million of 975 million iphones haven't been upgraded in 3.5 years. that will be a pent-up psych that continues to play out we talked about the gators don't need it depete is the 2 trillion pulled the hair out 3 trademark. we continue to view, this is a renaissance of growth that's happened, especially with apple gr grass. >> any areas you feel like have been justifiably kind of beaten up a little bit or basically are not a good opportunity right

now? >> look, i think you got to separate between value and high growth tech. some of the value texts, the oracles, the microsofts, the checkpoints that considerably outperform the near term there is clearly some proth in the mafroth in the market. you got to look at where the spending, cyber, security, cloud, 5g. that's where you put together the shopping list. ultimately the other point is this is a massive cycle of mna investors are selling, the financials are getting their pencils ready. we think mna is massive against cloud and cyber security >> you mentioned the enterprise on this idea that maybe, in part, spending will not be as robust as built in across enterprise or certain pockets of it is that something that's a growing theme or one-off >> i couldn't disagree more.

i mean, there will be some on the street that yell fire and draw crowds together will you get the selloffs. salesforce i love the risk/reward. i disagree in some of the calls out there. we are spending salary going into the next year especially on this cloud shift spac is hanging on salesforce, that's a defensive and offensive acquisition, especially with that company and redmond continuing to get stronger >> dan, good to catch up with you. thank you very much. >> thank you. >> catch you soon. meanwhile, at&t's warner media and viacom cbs considering a significant stake of all of kw, which they own, according to wall street journaler that says one of the suitors is nexstar media group. the content produced for it is valuable for other platforms at the parent company the shows are aimed at young

teens and adults, including riverdale, flash and all american, coming up, when we return, d.c. on high alert president biden expected to address the nation we will speak to columnist thomas freeman next. bed bath & beyond lost 25 cents per share. revenue also below estimates and take a final look at futures. before we head to break, green arrows on the dow. the nasdaq looks to open lower again, 80 points down, s&p 500 off just marginally. back after this. this broker is your man. let's open your binders to page 188... uh carl, are there different planning options in here? options? plans we can build on our own, or with help from a financial consultant? like schwab does. uhhh... could we adjust our plan... ...yeah, like if we buy a new house? mmmm...

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today is the first anniversary of the insurrection on the u.s. capitol. joining us now a year after that day is tom freeman, a new york sometimes columnist. liss latest piece is how to stop trump and prevent another january 6th. he has a message for the business community, in particular here we are with the nation still divided. you say the best way is for the ceos and business leaders to step up and take the largest

voice. why do you think that's the case >> well, becky, i think you have to look at the business rounds table and the business council and the business associations. i think it's fair to say they lean center right for the most part and i would say the last center right movement in the company has real leverage with the republican party other than the liz chains, everybody else is bending off to trump's will. peter baker had a great analysis in the paper this morning, the main point he made is not much u how much has changed since last year, but how much hasn't changed in the face of what was an insurrection encouraged by the president of the united states against the capitol, against the democratic process, basically to hold the republican party after waffling at first and some coming out against trump, like mitch mcconnell and speaker mccarthy has fallen in line behind him. i don't see where the leverage will come to bring this party

back to some rationality other than a big force like the business council, the roundtable, for major business leaders in the country >> hey, tom, i heard marco rubio and others kind of conflating with with the race riots and a lot of looting that was taking place back in the summer of 2020 i don't think anybody is going to stand up and they that was good, that was right, there were horrible things with the looting events violence erupting in cities across this country that's not one in the same this wasn't an attack on democracy and on the country and on the vote of this inauguration this was democracy, itself i think it's a pretty important distinction. >> i think it's a very important distinction to make and it would be falls equivalence to cite the riots in portland by people encouraged by the president to ransack the capitol as a part of the broader effort by the president to basically use procedural measures to reverse

the vote of the last election, the will of the people that said, i argue in my piece as a political matter as a way of, you know, getting through to people, you know, if i were business leaders right now, i'd say, look, we're against two things, dismantling the police and the constitution they may not be equal. they're a lot emotionally equal in most places that's fine. i think most of the country is between those two poles. the main point is there is no other leverage point out there on the republican party other than the american leadership liz cheney said, you can either be loyal to donald trump or you can be loyal to the constitution, but you can't be both last year, people can kind of get away with well, this or that, i'm not going to do this, maybe it's that. this year i think it will be different. this year it will become crunch time >> i think the reason this has gotten even more important as it hasn't gotten stamped out and

decided and people still arguing about the last election, without any evidence of huge number of incorrect votes or voter fraud on any sense, is it just raises questions from both sides, the next time around, if the democrats lose an election, are they then going to come back and say, this was unfair, too? these were the constitution and democracy and what happens here? there is so much at stake. you know, we have been talking this morning about it, business leaders standing up, but who else needs to say something about this >> certainly we would hope the republicans would stand up and say something about this the principle republicans who helped preserve actually the integrity of the last election unfortunately, so many of them have fallen in line now behind trump and gone down to mar-a-lago and kissed the ring i lived in a country lebanon that had a civil war one reason it had a civil war, is the political leaders thought they could bang away at the system, abuse it, steal from it,

undermight have been it and it would all hold, it would always hold then one day it didn't hold. it broke apart when it did, they couldn't get back together again and we are approaching that point you can't just abuse dreams you can't just say an election that clearly elected this man without any shred of fraud that was affirmed by the attorney general and the fbi leader appointed by this man, that election was a fraud. you can't just say that over and over without there being enormous implications. look at the story my colleague pointed this out today trump was speaking at a rally of his people he said, i got vaccinated. then people get a booster. he got booed what that tells you is the whole base now is even, in parts of it, ask more extreme than the leaders. they fed this, so the idea that you can control this down the road, that's really an illusion.

what we need, becky, and david pointed this out in his piece, too, i put it in mine, we have national unity government right now. the biggest thing facing our country is not inflation okay it's not lower taxes or higher taxes, it's not climate change it's actually the integrity of our political system i think the only thing that will save it is a national unity government not unlike what israel did israel was facing a similar situation. they could not elect a new prime minister in the end, they opted for a national unity government. >> what does that mean >> it may mean that joe biden runs again he asks mitt romney to be vice president or liz chaerngs you get principled democrats and republicans to run toeng for the express purpose of saving the system and work, as best they can on issues where there is overlap. that's what israel basically did. our system is not set up for that at all. we may need to think of creative

solutions. this is the threat to our country. >> there is no way a ticket like that would survive the primaries. i mean, what you see in this country is more extreme on the left and more extreme on the right. what you are talking about is finding the common ground in the middle i don't see a whole lot of that anywhere these days. >> i don't either. but what i do see is us continuing to go down this path something is going to break. i feel we are standing on an oar with a false bottom. republicans were able to go down and realign behind trump last year i'm telling you, becky, when we're here a year from now, i really believe that if we stay on this course, something is going to break something is going to go bang. and if it does, i really think things could unravel i'm very, very worried flu is think business leaders are ewhatlily worried? what do they talk about behind

closed doors >> i think they all know you know what's going on they all know what trump did what he is doing to the party. some of them have stepped out and been a little more courageous i get it they're focused on their shareholders and share prices. i'm telling you, this is going to affect their employees, their communities. civil lawyers aren't there for business >> other issues that are facing us right now are two external threats. one being russia with what's happening with ukraine, the other being china and are completely frayed relationship with them in trying to future a foot forward business leaders have a lot at stalk, particularly when it comes to china is there anyway to continue to straddle both worlds or are they have to choose a side when it comes to china and the united states >> it's a really important question china today is so much more

opened than four years ago and so much more closed than it was five years ago they have taken china on a u-turn in terms of its openness internally they've basically snuffed out democracy in hong kong can you imagine if i turned on cnbc one morning back if 2008 and said that steve jobs disappeared. steve jobs with china the head of ali baba basically disappeared. these are really disturbing behaviors. so it's not like both sides are equal here they're not. china reversed itself in a lot of fundament am ways that are challenging to business and to america and china you know in terms of global relations. so, i really don't know what to do i feel that xi is taking china down a path where he's destroying trust, whatever trust he had with business and with a lot of his neighbors i think it's really bad for china. the problem for us, becky, is

that china can be a danger if it's too strong. it also can be a danger if it's too weak so i really worry about what xi is doing as for putin, putin is like america's bad boyfriend from hell he's this guy we don't want to date you anymore we want to see other people, please go away he won't go away his relationship with us is how he measures himself, how he measures russia's dignity in the world so what he is doing now with ukraine, i am really worried about this situation business leaders, all of us need to watch this closely. he's really put himself up a tree, he's basically laid down in print and his speech a marker that says if i don't get, if it's a world, nato and america does not recognize russia's sphere of influence over the former satellites of the soviet union and basically all of eastern europe and affirms that ukraine can never be a part of

nato or the european union, then you know something bad could happen here. well, he's up a tree, because we're not going to give him that so i don't know how this is going to end that he's going to have to eat something, because we are not going to give him what he wants if he does invade ukraine, that will be a big game changer >> i wish we had lighter stuff to talk about. we're out of time. next time when are you back, we will look for a more uplifting conversation thanks for being with us good to see. >> you my pleasure thanks so much. >> you too all right. let's get a quick check on where the markets stand this morning a little instability a indecisive futures tape, s&p 500 had been lower earlier lost 1.9% led down by the big growth stocks nasdaq is down under pressure 84 the dow looking to bounce. salesforce, microsoft, big drags on the dow yesterday

ten-year note yield headed higher 1.74 close to the spring that's clearly the market repricing for perhaps more fed action crypto is weak total crypto market cap arguably breaching 2 trillion on the downside now crypto has been on the crunch oil has not blinked. still going higher, talk opec producers are not able to increase supply very much. so wti crude fought too far from $80 bucks again, andrew. >> okay. coming up, the ceo of the largest healthcare provider in new jersey will talk about what he has seen as patient counts increase stay tuned big hour ahead on "squawk box.

good morning nasdaq futures pointing to more losses after yesterday's sell-off we'll show you what's moving now. the fed indicates it's moving closer to rate hikes and reduction in the multi-billion dollar balance sheet we'll get you up to speed and we'll talk to investor michael novogratz why bitcoin is behaving more like assets the final hour of "squawk box" begins right now

>> >> good morning. welcome to "squawk box" here on cnbc i'm becky quick along with andrew ross sorkin and mike santomy. joe is off today we have been watching the u.s. equity futures after that decline where the dow was down over 400 points, themax was of over 500 points. you are seeing a rebound when it comes to the dow the industrials giving the dow a boost to 100 points above fair value. the nasdaq again it was the big loser yesterday. it was down by three and a third percent. that's the biggest decline since last year. these are modest declines today, also that big drop yesterday indicated down about 80 points we have also been watching the treasury market and yields have really taken off in this new year we're talking the ten year

yielding 1.74%, kind of phenomenal that happens that quickly. mike was right, he pointed to the two-year yield earlier this morning. that's clearly an indication of what the markets think the fed will be doing, yield up there as well andrew >> thanks, becky, meantime, stories investors will be talking about today. we start with a few well-known companies reporting earnings, walgreens beat analyst estimates on the top and bottom line and raised the full-year guidance, walgreens was helped by demand for covid vaccinations and testing. on the flipside, though, bed bath & beyond, joe would be sad. the shares are tanking the company lost an ad judd 25% per share compared to a break even estimate overall and comparable store sales below expectations on the covid front, other news, kids ages 12-to-15 are now eligible for booster shots the pfizer biontech covid

vaccine this coming after the cdc backed the shots at least five months after a second dose. extra shots were approved for 16 and 17-year-olds last month. right now, i want to get back to the broader markets. mike santoli has been digging into yesterday's wall street sell-off. >> let's put these moves in context. s&p 500 was really strong through that santa claus rally period, the last five days of 2021, first few days of this year, pretty much performed in line what history suggested it would. we seen this rotation under the surface a while. back towards banks, cyclical's, away from the big growth stocks. that all got a little shortstoply after that fed minute's report yesterday. it got people reducing risk in general. so what does it mean we kind of stalled out here 4800-ish poked above there, interday never above it exactly 4700 by basically is this high where

we got to cap the market back in november and much of december. so kind of testing whether this breakout range is for real i have always focused on rates for obvious reasons, you do have ten-year treasury yields back up toward those highs we saw earlier in the year. the whole curve, the treasury maturities are going up. we're not back to where we were. this is from the end of 2020 we surged from .9 up to 1.8 in the spring, february, march, may, we were back up into that area then we were declining here through the summer, bounced around towards the highs now, take a look at the nasdaq 100 etf and arc etf since that dame i same day f. your narrative is when yields go up, tech stocks have to go down. well, not really from point to point we went from .9% in the ten-year yield in december 2020. right here we're at the gain

driven by the tech stocks. it's not the only variable that matters here the valuation is stable, too also, keep in mind that arc here peaked right where yields did back in the early part of this year so yields were going down for all this summer and still the innovative, disruptive tec stocks, the no profit tech stocks had a tough time, even tow yields are going down. the point being, it's not the key swing factor in how that style of stocks works or doesn't work, andrew >> oh. arc is taking it on the chin thank you. present it all right. let's go deeper into what sparked yesterday's sell-off that would be the fed and the signal it's giving out about the balance sheet, also they could raise rates sooner or faster than people thought steve leishman joins us with more on that front i wasn't hugely surprised, clearly, it did come as news to the markets. >> yeah, becky, some people like

yourselves pay attention, not everybody does those minutes to the december meetings suggesting the potential bank would be potentially more aggressive, raising rates. we have been talking about in this that it could do this it could produce a faster normalization. marks are dialing in and the first coming in march. solid probabilities as you move to your right on that screen placed on a second hike in june, the third in november, giving us a 40% chance now of a fourth hike in december here are some of the things the fed could, is talking about in the minutes, could happen, well, first of all, a pretty good agreement run off sooner than last time. obviously, someone relied on runoff than rate hikes to tighten policy in order not to flatten the yield curve. reinvest mortgage-backed

securities into treasuries and cap the total runoff a. group we can call the mid-western monetary hawks they get the votes this year take a look. new fed governor chris waller, the former research director the two were among the earliest to talk about publicly about balance sheet runoff and that's where becky got her clues from kansas citiy esther george, the joined in the massive stimulus for the pandemic so to fight inflation, the fed into evidence to move rates up and tune it financial conditions the previous axis received immediate response, a more aggressive policy and is this morning in an effort to tighten policy equities could be collateral damage in that becky, you know, you think about three buttons, the taper button, they pushed back, kind of putted responsech then they pushed the we're going to push rates more response, now

the balance sheet, they're pushing that button. they're getting more responses, mike and you guys have correctly pointed out what's happening to the ten year this morning. >> the job owning is people are wake up they might hit all three buttons at the same time and be incredibly more aggressive with that watching what's happened with yields they were kind of used to seeing sell-offs when it comes to one, two, even 3% on the stockmarket. seeing moves like that in the treasury market makes you sit up and pay more attention we're back to where we were april the latest since we seen the ten-year level >> we were on the two year, we were back to march ien the check with ten year. 30 year has been interesting as well back up to 214 here that's something of note but look, becky, take it away from the policy standpoint

if your going to have an economy get back to normal f. this omicron variant ends up being short and sharp, which is the hope here, not sharp, but the short part, you know you are doing pretty good growth in the fourth quarter to near 35% you have above trend growth baked in for this year as well you have 807,000 on the adp employment numbers, unemployment down near 4% and a very, very tight labor market inflation up near 6 or 7%. pick your number there is every reason why yields should be higher the question is what is the right valuation for the stockmarket with a higher yielding world and i think mike's conversation here, the idea that it's not necessarily tied at the hip to yields, which i think it's of late but does it have to be and very interesting? i just don't know, becky, where to put these valuations. we do know one thing for sure, it will definitely be more volatility as the market prices

this and stocks pass back and forth between strong hands and weaker hands for holding these equities to higher yields. >> historically, the first rate hike in a cycle usually isn't the tipping that really derails a bull market in a big way but there are scares along the way, on the way to that first hike i do think it's interesting. we're looking back to that period from 2000, let's say 13, when the fed tapered, two years later or so a year later, first rate hike. two years after that, very slowly, very slibdeliberately allowed the balance sheet to slow down. the economy installed speed. very different backdrop here when you have really high nominal growth economy, near full employment and you have inflation. so you wonder if that's a buffer to what the markets are going to experience or if that kind of makes it all a little bit more kind of a volatile mix

>> you know, i think the volatile part is baked in. that's something that's not going to be different this ttime it's interesting when you look at different analogs here. we don't have an an a lock for a fed that jumped in with both feet all the way town its neck when it came to providing stimulus you know , there is a simple ida that the fed came in quickly going back to a recalled who, you tell me where we're at we were at before the pandemic of you know a ten-year yield, a fed fund rate up fear one and three quarters i don't know it doesn't seem like the end of the world. it seems to me like the capitalist market should be able to prosper with a zero yield on the short-term rate.

>>. >> that's what's suggested as long as there is no stress events and accidents we have to monitor thanks a lot coming up. much more fallout after the fed released its latest minutes. michael novogratz will help us understand what's happened with bit don't and jason trenpart in will be here on the markets. don't go away. "sawbo wl rhtacquk x"ilbeig bk. what does the future of strength look like? ♪ ♪ it's a personal trainer that assesses your strength and adds weight as you progress. it's dynamic weight that adjusts for you in real time for a more efficient workout. c'mom and it's a roster of coaches that motivate you to get stronger, faster.

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stock futures at this hour, still a bit mixed. firming up a bit the s&p attemptingto hold steady around that 4700 mark nasdaq performing, narrowed its losses a little bit with the fed signaling it could race rates sooner and shrink its balance sheet as well, let's talk about the potential impact, the chairman and ceo in their company, good to see you >> good to see you, happy new year >> in a accepts, if you polled people -- in a sense, if you polled people, it's the real

economy starts to react sell rate through omicron, big tech stocks have done as much as we can ask of them for now the fed is transitioning into something more tight maybe financials energy and banks can do better. that's kind of what's unfolding. it feels a little nerve racking. how are you reading things in the last few days? >> i kind of go back to the conversation you had with steve with regard to i think the general playbook has been to say, listen, marks don't behave that poorly after the first fed rate hike. you know, it's two steps and assemble that type of thing the problem is that you haven't seen negative real yields on the fed funds rate of this magnitude since fine 74, 1975. so whatworries me the most i have to say, the fed is really behind the curb than they have

been probably in 40 years. so i feel very strongly. we felt strongly last 84 you want to be in the more value-oriented sectors, financials, energy materials that was a standard hours last year last year, both growth and value did pretty well. you weren't hurt too poorly by making that calm i think this year you will see more of what we've seen, where people have to make a choice they have to decide whether they want to be more value oriented o growth omptd anoriented and i think you want to be more value oriented in this environment >> i mean fed officials, some number duplicate felt the fed might be behind the curve or find itself there coming into this year, they're talking about even at the outside of the fourth rate hike and maybe turning back on the balance sheet as well, but it also has

been the case that you often got this good cop bad cop thing with the fed. they made hawkish noises they set the market up to say, hey, be on alert we'll see the data track and markets absorb that. i guess we can't write the script until we see how inflation reacts in the next month. >> that's right. people that you and i both know on the fomc, i am always reminded it's not a democratic institution that a lot of tiemsz these men and women communicate through the press. there is one 'earn that ultimately makes the choice. that's the chairman. so i think it's very interesting. this is an election year i don't think the inflation and the fed have been on the ballots

probably for 40 years. i think you are vectoring for the period of time later this year where it's very much going to be a political issue. we don't, mercifully, we don't tend to think of the fed as a political institution and i think it's gotten itself that we might not have choice. i do think you are right i do think you want to see how some of the supply chain issues work themselves out. you do want to see what inflation looks like, unfortunately the omicron variant and shut downs you are seeing, ironically, it could lead to more inflation, not less inflation to you have more money chasing through your guts some there is a lot of cross currents here it's a very uncomfortable i would imagine uncomfortable position to be in, if you are on the fed right now. >> there is no doubt about that. it also raises the question of whether the fed believes that that's the kind of inflation

that it can really fight with its tools if, in fact, it's mostly coming from the supply side >> i think that's very fair, mike of course, they probably shouldn't count that you know, for instance, used car salesmen are unlikely to be double digits forever. i think this has gone on long enough you create a structure of issues, whether it's wages, rents, environmental policies, which are, in my opinion, baking in the cake. higher energy prices and commodity prices for a long time to come. the problem is we call this a hotel california problem you can check out any time you want you can ne really leave. it's very, very hard, especially when aggravations end and the markets have done very well and

they have exit this strategy without at least volatility and perhaps some sort of pain. we are arguing it's probably better to try to leave the free markets alone as much as you can. the more you do this sort of stuff, the more difficult it is to get out i think the fed is, that is what we will be wrestling with this whole year >> yeah, there was language certainly in the minutes that alluded to the possibility that inflation was becoming a little more structural and obviously not as they believed before, that it was going to be hard to get inflation expectations up to the tune above 2%. i guess the question there, though, is whether, in fact, companies have changed in any real broadway and it's reversed this trend for a long time the reason we have these multi-trillion companies at the

s&p is they have been essentially massive instruments of disinflation for a very long period of time >> mike, that is absolutely true i think it's also absolutely true that for the average person the dollar has weakened, you know, for you and me and for people on wall street, the dollar has strengthened over the past year. for the average person, the dollar weakened dramatically, versus gasoline, versus states, versus a whole host of things that they need to buy every day. that i think is another element of this, which is to say that the fed's policy in my opinion, ultimately, i know this wasn't the plan, it wasn't the attention, but has been quite regressive to the extent to which wealthy people have greatly outperformed the average person that moo it have a savings account. if you have financial assets,

you've done great. if you have a savings account or something, you have been out of luck that's especially harmful when inflation is moving quite a bit higher i'm sensitive to that, too, now, i think other people are more sensitive to it but i'm with you i mean, this is all due to very good intention i'm not having any bad intentions to anyone but this is a heck of effects we got to ourselves back here in my opinion. >> we'll see on friday, jobs numbers, how wages are tracking relative to the cost of everything jason, good to talk to you >> great to talk to you. >> coming up after the break, the eye of the omicron storm, infections for many people might be milder. but hospitalizations are heading up because the variant has spread so easily we want to speak with the ceo of new jersey's largest healthcare

network. stay tuned you are watching "squawk box" on cnbc

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welcome back to "squawk box," toy maker hasbro named the leader of the linl tal gaming business chris cocks will replace the ceo since leading the company brian

goldner passed away in october hasbro up on that news this morning. becky. >> thanks, andrew. in the meantime, authentic brands has withdrawn plans for a u.s. ipo according to a regulatory filing. the owner of brands including aeropostal anded eddie bauer didn't give a reason they sold to capital partners in a deal that valued the company at close to $13 billion. when we come back, we've got some breaking jobless claims and trade data don't go anywhere. "squawk box" will return right after this

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anniversary of the riots on the capitol. let's take a quebec look of where we are with jobless claims, the dow opened 104 points higher, nasdaq looking for lower. 64 points off the s&p 500 up about 3 points it's taken a hit on the bitcoin and crypto now trading under 43 thousand the ten year is looking at 1.735. the number is about to cross steve leishman is standing by. steve. >> looking at u.s. jobless claims rose to 207,000 it looks like as it scrolls across my screen rising to 204 that's a little more than the expectation of 195 up from, i don't know if they were revised last week, yes, up to 200 so a modest increase there then i'm looking for the trade deficit. i think it's not a big deal, because we get the advance on that it's supposed to be in around 81-and-a-half, a big

surge that came from a, got tighter in october and widened we think in november the expectation is bottlenecks ease off we might get better results on trade next year as this year as some exports out of the country. real quick, i was reading a forecast for tomorrow from pantheon, he says the high frequency data could be as high as a million because of the rebound from november we were talking last time, with a major question mark whether or not omicron affects the day, somewhat, andrew. >> that's the steve leishman analysis what is the j. powell analysis, if you were to try to read his mind right now >> of which parts the jobs or

the jobless claims number? >> the jobs. i would go with the jobs will claims, but you intrigued me by what pantheon is saying. sow can do both. >> yeah. i this i that powell counts among his blessings that he's got these problems with inflation and the need to take away stimulus. but he has a pretty good economy. unemployment is down fear 4% i don't think there is a question that it's going to go back up now. have you this i don't know what you want to call it, a blip, hopefully, when it comes to omicron, some people will be quarantined saying ohio you might have a blip but get a rebound in february. i think the concern is you don't see it yet, but this year you get rage inflation, but you haven't seen it yet necessarily, if wages keep going up the way they have been going up, that's got to be a concern as well as a when that he has with the job

mashlt markets in good shape for the fed to remove stimulus. >> stick around, you want to go over to mike, get your take on these numbers and you think the equity market and the traders will think about all this. >> a modest increase from last week back above 200,000 i this i it still tells you the job market has been behaving relatively tight you have a huge payroll number tomorrow, that will under score that, a lot of people leaving their jobs all feed in that direction. the big question is, to what degree we have a stutter stepping role because of omicron this month, next month, investors in general expect something like that, they're intent on looking right through. if you look at the way the markets are repricing here, it's mostly about, wow, this is spring loaded to take off once we get through perhaps a brief wave that's where also the surprise could be if we see a more pronounced slow down so far, not a big change to me

the bake premise of where investors are coming from right here this morning, i was quickly going to say, it's mostly about positioning, did i own too much salesforce or microsoviet and i'm under water. yes, steve >> mike, the market has never seen a wave and not believe it's going to get better. >> that's right. >> it's always taken in the economists and forecasters, if they have a growth problem now because of this wave, they put it into the next quarter i've seen that a little in the forecast the market has never seen a wave that it's created ongoing pessimism. it's pushing the recovery two months or six months down the road. >> that's true this time the market didn't have that much of a scare right? >> right. >> it was almost immediate maybe there will be travel issues quickly it was, we will get a snapback >> the one danger i saw, which if you read the fed minutes,

mike, there is a comment in the fed minutes that said that yields may be depressed because of a bite to safety. which suggests once this omicron variant scare comes out of the bond market, which it may be coming out now as we speak, you may get an additional pop in the yield because of what the fed is doing and the move away from safety >> by the way, the yield is global, too, we should keep that in mind. are you seeing government bond yields in germany and everywhere else lifting >> yeah. >> steve mike i want to thank you. >> over to you >> i accept gratitude when that comes. >> bed bath & beyond >> let's look at shares of bed bath & beyond. because the company saw shares drop about 9% at first that came after the company reported unexpected quarterly loss but the sales forecast that was below what expectations had been as well, the chief executive

mark triton said a lack of inventory came from play chain issues you watched these shares, check it out, turn around, they were up 9%. more than that, right now they're up 8%. the company had a conference call that just started guys, this has been one of the mean stocks we've seen in the pennsylvania it's hard to them what's happening right now we will continue to keep an eye on it. up around 8% after falk steeply after it reported that earnings loss we'll continue to keep an eye on it, though >> it's been a wild, wild volatile stock for a year-and-a-half. coming up, why did bitcoin get hit like tech stocks on the fed's latest rate hikes and reduction. mike novogratz will join us. the impact on omicron. what are hospitals seeing? that is next "squawk box" we'll be right back

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the state of new jersey is facing a record number of omicron cases, infections up close to 300%. hospitalizations have more than doubled. our next guest says those soon rise above the viruses in the first place in 2020. joining us now is robert garrett, his organization is the largest healthcare network

robert, thanks so much for being with us. i don't want to color any of us. why don't you tell us what you are seeing right now. >> thank you, becky. it was staggering what we are seeing in new jersey one out of three people who are getting tested are testing positive right now for coronavirus and mostly the omicron variant. it's really like a wildfire. you know, about a year ago that number was 13%, so we're almost triple in terms of the number of people who are testing positive. we're seeing a huge surge on in hospitalizations as well in the state of new jersey, there is over 35,500 out in hospitals throughout the state our health network, meridian, we're over 1,300 hospitalizations, i guess a good way to look at it is this omicron variant is three times as transmissible, or one-third less severe. but if you do the mast,

hospitalizations are still rising significantly and the state model is showing we will peak probably in ten days from now with between 9,000 and 10,000 hospitalizations. so we still, unfortunately, this variant can just spread and we haven't reached our peak as of yet. >> how are you able to handle it we know it spread through a lot of employees when you have massive numbers? it's going to let your staff. >> currently we have 600 team members out because of covid some of them are asymptomatic but tested positive him some have symptoms. what we are trying to do is try to deal with this surge with so many team members out sick keep in mind that 600 is over a work force of about 36,000 so about 2% of our work force

currently. what we are doing is we are reassigning people who can help out in our various hospitals we've reassigned 450 team members. those are folks that can help in a re research setting our our medical practices. many people that are working are now being reassigned to help out in the emergency department and we're opening up new testing centers on our hospital campus, aproblems mat to the emergency department i think it's an important point is our emergency department will throughout the country now are getting overwhelmed, so we're seeing a lot of people coming in to be tested in the emergency delaware i would urge folks if they can't get hold of a home covid test, use an eurgi care center constructed under tents or fixed buildings on hospital campus, so that the emergency

departments can do what they're supposed to do and take care of really true emergencies. because i worry about that in terms of people who need emergency care and have had a heart attack or stroke, even yesterday with some snow and ice, we have many people that needed trauma care it's important people use them for appropriate reasons. we urge people to get tests but at the urgicare and testing centres. >> what has this meant for other people who are ill, who need tramt, had optional surgery, which often isn't or if are you a cancer patient or something else, that's what was so disheartening, seeing so many of those cases in the earlier ways get pushed to the side and the long-term impacts of that, where do those issues stand? can you handle all of those people right now >> it's very challenging we're working closely with our

leaders in new jersey, in particular what we're doing is we're rescheduling elective surgeries and procedures that can't be rescheduled that safely can't ap over the next few days or weeks, we're rescheduling that for february as an example those patients that need care that need a procedure quicker because of time sensitive clinical issues are getting those procedures so unlike what happened in 2020 when everything was shut down and we became really covid healthcare providers, we're trying to make sure those that need care again people with diabetes, heart disease, people with strokes and types of illnesses, procedures that are time sensitive, those will still happen so far, we're able to happened him that >> robert, what itself the long-term impact of this two years in between staff, between the finances for the hospitals

what happens next? >> yeah, you know, maybe this is a good opportunity to give our staff a shoutout we're coming up on the second anniversary of the first covid patient, first hospitalize covid patient. millions you remember our front line team members has been just unbelievable inspirational and extraordinary. long term, you know, there is certainly burnout in the healthcare sector. we need to help support team members, behavioral health has become a huge issue. it's caused an increase in mental health. they will consider to invest in behavioral health services, financially, certainly, this has put a big strain on hospitals and health systems though, we're working in partnership with federal and state officials on that. then the other piece i would say is emergency preparedness is

going to be so important we recently received a grant for $140 million to upgrade emergency preparedness, that will have to happen hospital by hospital, state by state across the country. we need to make sure we are prepared for future healthcare and mortgages. i guess the last long-term effect is telehealth is now here to stay. you know we saw a small percentage of patients being seen through telemedicine or telehealth that surged to almost 50% in 2020 i think between 20 and 30% of all healthcare visits into the future will be done through telehealth i think it is something here to stay in this pandemic. >> hey, robert, a policy question sort of in the immediate moment over the next

several weeks, which is to say we just spoke earlier today with the mayor of new york city he is desperate as you know to get the city back up and running. he wants people back in the office he wants them masked up, back in the office a. lot of big companies in the tri-state area have told their employees, please don't come given the peak we are in right now in part, i think to help hospitals like yours. given the balance what the mayor wants and healthcare concerns from your perspective, where do you land >> i think we're landing in the middle we recognize society has to go on businesses do need to run, but you know, we're falling right where the cdc guidelines are so you know, if people are not sip tomatic. if they're not testing positive, they should be mavenlged we really strongly feel that in

the business setting, people should be masked wherever possible so i think that's really an important i want to. they need to keep that social dancing, keep with personal hygiene guidelines issued by the cdc. we are learning we can bring people back to the workplace and back to working on the front lines to hospitals quicker than was the case earlier in the pandemic but i think we still need to be very, very cautious where there is gatherings for even in the workplace. so i don't really think we need to shut things down, but i think we do need to be very, very cautious particularly these next two weeks. all the models show we will see the second or third week of january. so i think if people can work from home and that makes sense for that particular business or company, please take advantage of that. you have to come into the office, you know, please take

these precautions very, very seriouslyp >> robert, i want to thank you you and your staff my prime area? you have a phenomenal staff. i appreciate their work. >> thank you for having me we will appreciate the comments and pass them off to our team members. >> you next. jim cramer with his first take on the trading day aadhe michael novogratz on the latest crypto selloff stay tuned "squawk box" will be right back. (mary) cool (vo) up to 10 times the speed at zero extra cost. our 5g data is foreals unlimited no matter how much you use. (mary) did you just say foreals? (vo) sorry. let's put it to work with six premium entertainment subscriptions included! (mary) shhh, i'm in the lead. (vo) go on, watch all you want. (mary) i love this show. (vo) and because a better plan deserves a better phone... how about a new one on us? (mary) seriously? (vo) yep, it's our best plan ever. verizon is going ultra, so you can too.

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let's get down to the new york stock exchange. jim cramer joins us with more right now. earlier this morning, we were speaking with people who think there's more pain to come in the tech trade what do you think of that? >> i absolutely love that all the stocks are looking awful that's what you want i was so afraid we had would have an up opening this time we have a down opening. they typically last three days before you want to buy stocks like apple or microsoft, see if they

can hold their own salesforce which i thought were wrongly accused yesterday. so we have the makings of what could be a bottom. of course, the wild card is tomorrow where everybody will find out that things are wildly better than expected i think we could be looking for a bottom today some of people are scared, i like that. so i'm liking at stocks cut in half where they're making money. the ones not making money i'm still not interested in. bed bath and beyond is a weird one. >> someone actually said -- that seems ill-advised. what matters is the cadence and the margins. the 22% short position, those came in before they started

reading the release, and i think there's a good story about buy buy baby he didn't buy that much stock. i love that store that's downtown when you pressure ben here on a short, it tends to be wrong. i just think that -- i know it's a meme stock i think critical of the gorillas, call them the and we know at times those have succeeded. amc, gamestop, unless ryan -- i know andrew ross sorkin has a view about what ryan might do with gamestop, because nobody else does, but bed bath is better than expected. >> we look forward to that interview tonight, and we'll see you in a few minutes conagra and constellation. >> excellent. >> i love it

>> i'll be watching tonight. we'll see you in just a bit. we want to remind you about the any cnbc investing club. sign up. let's talk some crypto lower split much across the board, the sector getting hit yesterday. galaxy digital ceo mike at novogratz is with us it's across the board. is this just a function of some of the big tech stocks are people selling out of that and out of this because they have to? or what's really happening >> part of the bitcoin story was the debasement of fiat currency. as the fed becomes hawkish, some of it comes off. some of it is crypto is a risk

asset. it's still court lated to the nasdaq, but the nasdaq is off 4% from the highs, crypto off somewhere between 25%, 30% the last move down has been on low volume, mostly selling, not buying i do think down 40,000, 42,000 to 38,000, you'll find a lot of support for bitcoin. crypto had a monster year last year so this is a pullback. we see a tremendous amount of institutional demand on the sidelines. so i'm not nervous in the medium te term, but we'll have a lot of volatility in the next few weeks. >> you think there's a floor of 34,000 on bitcoin? why do you think that? >> i know big institution who are going through their process to put positions on. so i think they're going to see

those as attractive levels to buy. on the charts, 38, 40 feels like where we should bottom listen, all of us -- every single investor out there has to have some part of their head that says, are we going into a paradigm shift, right? like we've had this philosophy that the fed will keep rates low, even now 2% gradually over years, so we're in a liquidity bubble you know, inflation is 6%, if it doesn't come down, all bets are off. i look at the ten year, on the chart it looks like it's going to go to 2, 2.5. if it goes to 2, 2.5, asset prices will not go that high

during that time we should be open-minded we could go into a paradigm shift i don't mind that it crushes crypto there's too much of a movement going on, but it certainly slows it down. >> let's speak to the paradigm shift issue and the invest offers sitting on the sideline you've talked about the institution that you think are getting into the space, what are they telling you right now were they looking -- i think -- look, we were having conversations last fall, when you want there was a huge group of people prepared to get in at 50,000, 60,000, now we're in the low 40s. how has that conversation changed? >> listen, big institution ts te time they're going through their process. there's lots of money that came from hedge funds these things, while off their

highs, are still much higher than december 1st. white bitcoin has come down a little, a lot of crypto hasn't it's come down in the last few days overall, you look at performance of crypto portfolios. >> are you buying or waiting it out? >> i'm waiting a little bit longer when we want to add juice, we wait for great opportunities, but we're not pessimistic. i'm more pessimistic on the risk asset side we were -- listen, i think it's been -- i got a wolf tattoo recently i was thinking of the parable of the boy who crisis wolf.

everyone is wondering when will the assets sell off? at some point we'll have a real sell off risk assets. >> we're up against a hard stop, mike thank you for your perspective, as always. make sure to join us tomorrow "squawk on the street" begins right now. a live look at statutary hall, where the president and vice president will deliver remarkses on this first an verse rid of the capitol attack. there's modestgains, but the nasdaq does look to resume some selling. more -- crypto crumbling as well as you