vaccine shot could be needed by fall details straight ahead and new yorkers place your bets. legal sports gambling coming to the state in about 24 hours. we'll talk to a top executive from draft kings about the launch. and gamestop shares are soaring on reports it's planning a launch in an nft marketplace and partner with crypto companies. it's friday, january 7th, 2022 and "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with andrew ross sorkin, and mike santoli. joe is off today and guys, we finally made it friday is here tgif this has been the longest first week of the year that i can

remember, and we've had some long ones recently we made it it's jobs friday to boot so we have a lot to talk about today u.s. equity futures, last i looked i saw green arrows with the dow indicated up 51 points, s&p by 8.5, nasdaq up by 25 points week-to-date we're down across the board. the dow is down about a quarter percentage point but the s&p down by 1.5% and the nasdaq off by about 3.6% we can talk about what that means for the first week and what the indications are for the rest of the year if you buy into any of that stuff. but show you what happened to the treasury market because it's been one to watch. the ten-year right now yielding 1.725% it closed at the highest yield we've seen since april of 2020 but if you look at the two and five, things are interesting the 5 year yielding 1.474%, the

2 year yielding .874%. some of the other trends this first week the financials kind of leading the way, closed at record levels yesterday for the s&p financials up 1.5%. energy also some of the strongest you've seen there at the beginning of the year. that's because wti had the highest settle yesterday since november of 2021 this morning, check it out, above $80 a share for wti. gold yesterday had the worst day since november of 2022 and then bitcoin once again it kind of checking in with it at these lower levels right now bitcoin trading at about $42,000 and change andrew you were talking about some of the stuff that was strong let's talk about something that's weak, the tech taking a toll on ark innovation it was at the low yesterday, etf

down 48% from the all-time high in february of 2021. the fund down about 8.5% to start the year that prompted this tweet from jim cramer yesterday the performance of cathie woods arc is so atrocious that even though it's not a hedge fund and it can't be shot against, it is a pall over every holding. tempting to discuss opportunities but hard to find it's such a tough streak we'll see where she ultimately lands. there's no finish line in this game >> if you're lucky there's no finish line. >> there's moments it looks remarkable and moments it looks re-markable in a different way. >> taking a lot of swings, the big ones, similar one. it was similar to what was raising higher a year ago. i've seen a lot of math out

there that the average dollar invested in ark innovation has now experienced losses because of when the money rushed into the fund at the highs and the returns since then that's what happens when you have a markey fund as hers did a year ago at some point stuff gets washed out. but a fully invested, actively managed etf, tough to raise cash, everyone knows what you're doing and people are trying to take the other side of it. see if they're pressing too hard against the stocks in the short term news breaking in the last hour, a jump of 5% of inflation, the highest ever on record, beating the previous high set the prior month. european yields moving higher. the german ten year yield up not

too far below zero now we have other news for you which is that moderna's ceo is saying the efficacy of covid boosters will likely decline over time and people may need a fourth shot for their protection he made the comments at the goldman sachs ceo conference he said he would be surprised if the booster efficacy didn't decline. i didn't think this was a great surprise, given what we know about the way vaccines work. i thought these will work for six months and then you probably need to get another one. and as long as we're living with covid, most of us hopefully will be taking them if you read some of the headlines that are out this morning by some op-ed writers and others i don't know if they're twisting his words or seem to not be able to fathom what he said that unto itself is another thing that's remarkable to behold. >> i agree with you 100%

there have been these conspiracy theorists saying see it doesn't work it's not any different than the flu shot it might be more effective if the virus would stop mutating, which it won't, it's not going to sit still it's like a cockroach, it keeps running around you have to keep smacking it if it works, if it keeps you from getting really sick even if you do get covid, sign me up they're talking about a year from now, looking at next fall so we'll see in the meantime, six of president biden's former board of health advisers in the campaign are urging a shift in strategy, that group is calling on the president to focus on what they're calling the new normal of living with the virus indefinitely, not wiping it out. they're calling for effective use of mandates. they want testing linked to treatment so those at high risk

can get prescriptions on the spot for new anti-viral medicines and they want the strategy to focus on long-term goals including developing new forms of the vaccine that makes it easy to distribute. this is where there's going to be controversy kicked up again against vaccine mandates and passports. but there's some real common sense things they're talking about, in terms of making sure that people who are at high risk can get access to antivirals quickly. one of the things we've seen through this point is if you are really wealthy or connected or knowledgeable when it comes to medical things and on top of those things you're going to get much better care than other people the doctors are confused at this point about what they can do i know people at high risk or immuno suppressed and don't have good advice coming to them about what they can do to protect themselves

these are things right now there's a limited supply of. it's going to be the people who pay the most or scream the loudest get access to it that leaves a lot of people in the cold that makes sense to have a better way of looking at this nationally and making sure people at high risk can get early access to these things >> to me the fascinating part of what zeke emmanuel and those scientists were saying was actually political because most of them have been advisers to this president, are democrats, and are now publically, to the some degree, in their own maybe polite way, criticizing the president, the administration, the cdc, for their approach saying it's not enough saying that we're going to have to get more testing out there. by the way, to make the antivirals work because you need to take them early enough you need to know that you have it early enough for them to -- >> they screwed it up. >> so i wonder whether all of that shows a little bit more of a splintering even inside the party about the approach to

this but then what that will also say about so many other issues, economic ones and things we'll be dealing with. >> i don't know how you look at this and don't think it was a massive screw up the testing in particular, you can't track this stuff or get decent testing if you are wealthy or have direct access to health care workers or a hospital, you're in a different boat than most people dealing with this they know they have symptoms and can't get a test if they do get a test, they can't get it back in a recent amount of time. >> the other way to view it through the political lens, too, resetting expectations, redefining what success is, getting past the idea there was going to be a date and time you declared independence from the virus and it was back to 2019 times. instead of that saying we can manage it, de-emphasize case counts and figure out the real-world impact, i guess. >> that's true. coming up the december jobs report due later this morning.

we'll get predictions just after the break. we are just a day away from legal sports betting in new york state. we'll talk to a top executive from draft kings about the launch and expected revenue later this hour. you're watching "squawk box" on cnbc ok, let's talk about those changes to your financial plan. bill, mary? hey... it's our former broker carl. carl, say hi to nina, our schwab financial consultant. hm... i know how difficult these calls can be. not with schwab. nina made it easier to set up our financial plan. we can check in on it anytime. it changes when our goals change. planning can't be that easy. actually, it can be, carl. look forward to planning with schwab. schwab! ♪♪ ♪♪ this... is the planning effect.

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it is jobs friday.

forecasters expect the economy added 422,000 jobs in december, that would be double the number in november. the survey was conducted in mid december before the rapid rise in covid cases tied to the omicron variant. here to tell us what to expect from the jobs report, michelle girard and to weigh in on the markets stephanie link morning to you both. michelle, you know, wondering what the -- >> morning. >> -- takeaway is likely to be for this number. a lot of the more recent forecasts seem to be leaning toward the high side in terms of how many jobs were created given when the survey was done given the fact that it already seems as if the job market is behaving as if it's tight for a variety of reasons, what do you think the main implication will be of this number, if it comes in as you expect >> we're a bit above consensus,

expecting a strong number, it came before the covid surge in cases. which is why the market is primed for a better number i think in the end the takeaway is going to be that the economy is faring well before omicron, is likely to rebound fairly quickly once we get past the peak and the market is so hyper sensitive to what this means for the federal reserve. i think you're going to come away with enough strength in today's report, looking ahead to expected high inflation readings that the market is going to brace and price in more fed action this afternoon particularly when it comes to rate hikes for the fed to start raising rates as soon as march i think is going to be on the table if they come in along the lines of what we're expecting. >> it is interesting how that seems to be the direction of all the signaling and the kind of reading of what the fed is up to, michelle

in a different environment, though, couldn't you imagine a fed looking for excuses not to move sooner. you could say this number doesn't include omicron, even the cpi inflation number next week they might say it's a couple of months before we go up t against the higher numbers from a year ago so is the fed out of the game at this point >> i think they are. i don't think the market would buy into the fed playing that game honestly. it's almost like transitory where the fed talked about their belief that the inflation would be transitory. we have long seen they're not. i think even with the numbers coming down now, even looking on the inflation front, the expec expectation, as you said, the year over year numbers will start to come down us, along with the fed believe once you you're through that, you'll still be well above 2%. we believe 3%, almost a full

percentage point above their target at the end of 2022. the feds themselves see inflation, even if it comes off the high level, it's still going to remain elevated, unemployment is low, wages are higher and higher wages undermines the company and eats away at real purchasing power they're cognizant of that. >> the markets in a decided way in the past week or even before that have been pretty aggressively looking through any omicron effect realizing that it's not having much of an impact in terms of, you know, long-lasting restrictions and things like that even first quarter gdp numbers are coming down but everyone is adding back to second quarter. you see the financials, industrials, energy stocks, the economy plays have been thriving this year even though the indexes have been stuck. is it as simple as that or are we going to have to have a test of conviction in those cyclical trades >> it's never simple, mike, you

know that for sure i'll take the first five days, you know this is where i've been positioned for a while quite frankly i thought interest rates would be here where they are today last year. so the fact we're just catching up right now it speaks to the fact that there's a lot of things happening in terms of the economy. the economy is growing nicely. i was encouraged with the adp numbers but not just the overall numbers or the three-month average. i'm encouraged that the services jobs were exciting and a lot stronger than expected, because that's a big part of our economy, almost 70% of the economy, so we want to see services jobs come back. that's encouraging we talked about the economy overall and the data those ism numbers manufacturing and services, really strong, above 50 for 19 months we have auto production starting to ease as well. and we're still 25% below in in terms of production rates pre-pandemic so a lot of things happening in the economy and that's why interest rates are going higher

in addition to the inflation the number today, i think is going to be a hot one, just given adp numbers but you want to look at wages, that's important. and we had the eci, the employment cost index, number at 6% wage numbers on a seasonally adjusted bases in the third quarter so numbers are hot that's why in addition to the economy being strong, that's another reason why i think interest rates are higher and the fed is going to do what it has to do. normalizing policy is a good thing, they should be doing it and we should embrace it. >> michelle, yesterday we got the adp number, it's super hot and steve liesman said i've been watching the real numbers, he's getting updates from other sources, too, and the numbers yesterday didn't take into account what's happened with omicron, is the fed going to care about that, think about that, or is it like stephanie just said, we have to worry

about the wage inflation at this point? >> i think it's what stephanie eluded to earlier -- or michael eluded to it somewhat looking through omicron because the expectation is really that we aren't going to go back to the level of restrictions as we see the case numbers come down, which people expect will happen as we go through the month of january, the economy and activity will pick up relatively quickly so i don't think the fed is going to take even the expectation that even the january numbers that will show a larger omicron effect will not look as good as today. i think they're going to look through that there are a lot of reasons to expect inflation, the fed is rightfully concerned that these inflation pressures are going to be more persistent again with the wage numbers and supply numbers expected to continue this is what they're looking at, and i agree, the idea that both inflation and employment sort of you feel like the prerequisites

for action appear to be met. the fed, it is time to start to normalize, of course, the longer you wait, the bigger the task at hand so i think the fed has set the table and i think the economy and the inflation numbers warrant, again, beginning to normalize policy. >> clearly there could be a weaker than expected number. there's been quirks in the data, hard to deal with the seasonal adjustments with the moving parts. do we shrug ofthat off if we get another weak one >> i think we do shrug it off. initial claims are the indicator, that's the thing i'm looking at, in addition to the adp numbers. i look at the three-month average anyway, and i think the headline is less relevant versus the wage number because that's the thing with pressures to inflation. we'll get next week earnings, talk about fundamental i think especially with the banks, and i think that's going

to be really the highlight for next week and we'll focus on fundamentals and less on the macro and maybe even the fed, so i personally am looking forward to that and we start next friday. >> yes, we do. in two hours we get this number. we'll see what it looks like thanks very much. >> thanks, mike. when we come back, gamestop shares are surging what's behind the move and maybe have a debate about it as well and later picking winners and losers among electric vehicle companies. mpitl talk to an analyst as the coetion heats up squawk rolling on this morning on this jobs friday.

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welcome back to "squawk box. we are watching shares of

gamestop, the stock rising more than 22% overnight, that on a report the retailer is planning to create a marketplace for nfts, also planning to establish crypto partnerships. the source confirmed the report to cnbc. stocks now at $157.30. this is -- by the way, give jim cramer some credit i think he wanted some on twitter last night because he had been talking about maybe the way if you're going to grow into your valuation guys, maybe the only way to do it in this day and age is to do it through crypto the question, of course, is with whether gamestop has a -- you know, some special sauce you look at the open seas of the world, which sell nonfungible token they have a value of i think $13 billion in the private market so there are sky high valuations subscribed to nft oriented businesses and maybe if gamestop can be that, maybe this makes

sense. but there's obviously a little bit of a hope and a dream here. >> sure. i don't think if there was anybody really trying to map out what the next act might be that it was not going to involve nfts and virtual gaming and metaverse plays and things like that the stock, although it's bouncing hard from 130-ish it was 250 before thanksgiving it was 350 before the peak it was 50 weeks ago this thing started to go wild to the upside it's a $10 billion lottery ticket it's not really a huge number, as you say, andrew, relative to some other things that may be plays on this area as soon as this news hit after the market closed last night, amc stock bounced. nothing to do with anything. it just inflamed the exact same nerve of the traders to say

let's do it. >> because if gamestop can convince nfts with gaming companies, why not -- >> that's not it at all. >> we'll follow the story line, move along with it nfts could be successful if developers go along with it. i have a hard time believing anyone would give exclusive rights to it gamestop is talking about being the apple ap app store and most of the developers are happy to get the audience amazon can get you to come and sell your wears there, and they have a huge audience whether this is a chicken before the egg situation, so we'll see what happened with it. jon najarian made good points in the last hour talking about this on the reddit boards there were rumors something big was going to happen, something that goes with it. and there were a lot of people buying call options to come in

and be able at 10 cents to be able to buy buy that stock at $150, so when it shot to $160, they had the $10 profit immediately and a lot of people made that profit immediately >> all the way do you know people were buying options to buy at 300 and getting burned. >> they lost out. >> there were things you could track with gamestop saying they're doing something in this area. >> it's interesting but it is kind of like the gambling tables at the market these days if you can run along with some of these things sometimes it pays off, most of the time it doesn't. but these guys hit on this last night. we'll see. when we come back we'll talk about new data that shows one in five americans didn't save any money at all last year but now employers are stepping up to help workers with an emergency fund. as we head to a break let's look at yesterday's s&p 500 winners and losers

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good morning, everybody. welcome back to "squawk box" on this friday morning. it's been a long week. it's been a little bit of a rough one, especially for technology shares which are down for the week to date about 3.6%, looking at the nasdaq. however this morning looking at green arrows, the dow indicated up by about 44 points, s&p indicated up by 11, and nasdaq indicated up by 54 andrew becky, we are now just, if you can believe it, joe is going to be so happy, 26 hours away from when new yorkers can begin placing online bets for the first time the state granting four companies the right to operate mobile sportsbooks one of the largest online markets in the nation joining us is draft king's north america president and co-founder good morning to you. this is a big day i imagine for

draft kings, no? >> yeah. it's a highly anticipated day for years since we launched our sports books in new jersey back in 2018. we looked ahead to the day new york state would go live where we could bring our offering to the 20 million or so new york residents so tremendously excited about saturday >> what kind of pressure -- or what does new york represent in terms of what it does to other states in the country? in terms of opening up >> well, it's our 18th state so seeing a tremendous amount of momentum really legislatively on the sports betting issue every state i think is considering regulating and legalizing sports betting like draft kings. it's been in some recent referendums in like maryland and louisiana, over 70% of voters

supported leglegalized sports betting. it's a good way to create tax revenue, create jobs, fund important projects the biggest thing is protections in a legal regulated market for a sports betting consumer. >> what do you think the real tax revenue is part of the argument around new york is they had effectively missed out on something like $1.2 billion on tax revenue since 2018 when new jersey took that step in. >> yeah. we saw a tremendous amount of activity where customers were going across the hudson, into new jersey to bet on draft kings sport books we're in new york with our fantasy product, our nft marketplace that recently launched we have a big audience there and we saw a lot of them going across the border into new jersey to play so i think this will cause a little bit of a different dynamic there. >> you mentioned nfts by the way, we had a conversation i

don't know if you were listening, in the last segment about gamestop do you believe there's one or two or three winners in the nft space ultimately or do you think there's going to be many, many, many dozens? >> yeah, i saw the gamestop news i guess the gamestop haters lose again because that's exciting for the holders. you know, i guess what i would say is, it's too early to say who's really going to do something interesting in the block chain space or nft there's a lot of companies making early plays you've seen draft kings launch our marketplace. coin base has some intention there. even organizations like nike or adidas has started making plays. i think it's too early and the innovation is just starting. it's something i'm passionate about personally and i think it has a tremendous amount of consumer interest and interest in culture >> take us inside the meetings inside draft kings on this

i think so many companies are thinking about nfts. everybody sounds like they want to have a quote/unquote marketplace of some sort it appears to me, at least, typically in the end when it comes to marketplaces there's only a couple of winners when it comes to a marketplace for nfts, right? >> draft kings got into -- their origin of doing the nft marketplace was really that we have over 10 million customers using, whether it's fantasy sports, draft king sports book like we're launching in new york on saturday, our i-gaming platform i think the launch of draft kings sports book in new york will further grow the audience. >> we're talking about competition. one of the big issues in your space is there is now a lot of competition. how do you see the competition stacking up and where you fit in and what makes, to the extent

draft kings unique relative to another player offering bets on, frankly, the same games? >> we pride ourselves first on having the best in industry customer experience. we're confident in our position on that front right now. we have the most liberal policies we do that extra mile to make sure our customers are really satisfied. and we have a lot of ways we benchmark that, but being number one in experience is our top indicator, and then we also want to lead in every market that we enter. that starts with entering first in new york we'll be one of the first operators to go. and from there, competing effectively in gaming, a strong market share position in recent states like arizona or connecticut that we recently launched, we want to do that and continue to do that in new york. >> do you think this becomes local? some states certain companies are going to win in other states but not in other states? >> there are some different -- you know, in different states

you see different leaders. and draft kings is one of the top operators in every market, we want to be number one in every market i think every state is so unique that different strategies are more effective one place or another. so it's a constant learning effort in the first three or four years of operating to find out what's most effective. >> matt, how are you thinking about the possible revenue opportunity in new york state specifically and how much of that is just going to be pulling from new jersey or elsewhere where you already operate? >> yeah, i think pretty soon here we'll see what the top line opportunity looks like i can tell you it's the biggest state we operate in by far almost 20 million population will now have access to draft king sports book some of the biggest states we were in previously like michigan, illinois, et cetera, those will give you some idea of the opportunity ahead. >> do you think you're going to -- it's going to cost you

some, but you're already harvesting in new jersey one would expect >> we'll see how it goes there's some amount of that going on with people traveling across the border. but it's not as convenient as we would like the most common use cases people on their phone, betting from home, in their normal routine. so that behavior of traveling across the border like while it's prevalent it's not necessarily a massive chunk of our business. >> and finally, customer acquisition, that's something you're going to have to do in new york in a way you weren't before because you couldn't. in terms of channels, what's working, what's not? how much are you spending per customer >> yeah. i mean, draft kings we execute across tremendous amount of channels we have probably one of the more complex media mixes of any company. and we've really honed that over the course of many years we also spent a lot of time

understanding what works and doesn't, so i'm not able to comment exactly on some of the metrics or what we find to be effective internally i can tell you we have an incredibly sophisticated engine there that's constantly improving and getting better i think draft kings has a great advantage of over 10 million customers already on the platform so that day one into sports book, that's something that always creates a strong initial day one demand for us. >> i want to know more about that engine next time you come on nice to see you. we'll see what happens in the great state of new york very soon appreciate it. >> all right look forward to it. >> you bet it. when we return, key win in the patent case for sonos. how the stock reacted over night. and then later the ceo of papa john's joins us. a reminder you can listen to us any time on the cnbc app.

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zb shares of sonos are higher this morning it was ruled that google imfringed on the patent of sonos, it was found they

infringed on five of their patents. google has revamped the design of some products but the ruling could raise pressure on google to raise a licensing deal with sonos, which could net them $50 million a year stock up a little more than 4% right now. samsung shares rose in korean trading overnight after the company is forecasting a roughly 52% jump in the fourth quarter operating profit year over year. that was below the market's expec expec expectations during the pandemic, the employees were paid a bonus. it said profit was lifted by a demand for memory chips and improved returns in their contract chip making business. nice thing to do for employees, especially given what people have put up with other the last couple of years. when we come back, ev stocks part of the swoon in 2022.

we'll dig into that sector next.

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electric vehicle stocks took a big hit yesterday during the market selloff as ev competition takes off. this comes after amazon announced a new deal with stelantis. joining us is collin rush. 2021 was the year of the ev. what about 2022, what's that going to be? >> this year is going to be a year of execution. we're going to see who really has real products and can actually make them there's a bunch of interesting products coming to market and it's an amazing transition from a technology perspective we're expecting here in 2022 from a

manufacturing perspective. so traditional oems moving to a new technology note as well as some of the startups that are going to ramp up that's what we're really watching this this year. and certainly tesla has been a real leader in this and great numbers in the fourth quarter that signal to the market there was some good news coming butco lot of execution coming this year >> you know. rivian shares down more than 15%. that came after the news that amazon was doing na deal what does that tell us versus the startups trying to go it from a brand-new platform? >> when we look at this, in the move towards net zero across the board in multiple industries, it's going to take all hands on deck company like amazon moving forward is not only looking at multiple partners on the ev side but also on the hydrogen side. so there is certainly an awful lot to do for amazon as a

company in terms of moving their entire operation to net zero it will take multiple partners so we're not surprised by an agreement like that. we're looking a in the warehouses, the companies with power in terms of moving toward fuel cells and migraine that out on the road with various vehicle types. >> what about rivian shares? if you are not surprised by this, if you are not surprised by amazon doing a bunch of different things testimony amazon partnership is what people are counting on with rivian would you buy it down 15% or did it get ahead of itself >> i i don't want to make a recommendation on that stock here but at this point we're really gaining sense around this group. with a bunch of these startups, you have to watch them given to ramp up to get comfortable the parts are coming forward the partnership between those companies signal clearly we're not surprised by the diversity partners some of these

larger companies need. i think they want to watch this market as we think rates are dictating what's going on with this group and we're see ac pretty healthy increase in the ten year year-to-date and that's what's driving a lot of movement in this box right now. >> a lot of focus yesterday would say, okay, rivian was down 15% and you had nice kerr, tesla all down by more than 2% i don't think it's fair to put tesla in the categories with a lot of new startups. tesla has proven itself and it will be in a different set of gage e category, would you agree with that in >> absolutely, we saw it rafr up production it really is inno rate ising around the vehicle design and designing manufacturing. we think they have proven themselves we see that in the market cap. we think there is a lot of learning going on industry wide that tesla has already done. >> so what does this mean for

all these new startups trying t get their feet up and running, when have you the legacy players, like ford and gm who are coming on in a much better way and have a much better set of offerings than they did when tesla was doing the in. >> yes it's certainly a competitive landscape. around the tech nlg no transition it's a different way to design vehicles and so for those traditional ems as well as startups, it's a big change there is a lot of talent coming out of the traditional oems, and it's still the same shift for each of these organizations. some have legacy cultures that are really safety-based, that they've have to fight against as well as if youer companies building their own cultures. >> did you just say safety procedures that they have to fight against in. >> no, no safety focus cultures is an organizational culture

issue. it's not, i'm not fighting -- >> are you not complaining about the safety, you are complaining about the bureaucracy and it moves much slower in. >> that's the basis a lot of organizations are working through. whereas, tesla has been very adamant and forth with their commerce about sharing some of the technology certainly around the autonomy i think each have their own challenges going forward >> in terms of just overall with the limiting factors might be for this, i mean, it's still a very small part of the overall mark, something like 3 percent of car sales, automobile sales are electric the potential limiting factors just in terms of getting ships, able to get battery components, what is the biggest potential problem to keep them from being able to ramp up like they'd like to >> i think at this point there is limitation around lithium

supplies him a name we like will be tight well into the background of the decade one of the things challenging is the architecture and vehicle design the architecture ultimately can get a lot more flexible. it's a software to find architecture a. company has to int great, we love here a real leader in terms of architecture and handling the next generation those are areas that we are focused on for some of these electric companies on the oem side that are going through this technology transition zplchl what are your favorite names either among the new startup itself or the legacy, guys, that are doing it >> the names we're pushing right now are those two names we talked about we had this rotation out of secular growth into more cyclical growth. some of these established companies have important technologies and resources to bring to bare.

a company that can actually continue to raise price. it's really aiding a lot of the concentration, you know, consen consentration and form lakes for batteries on the lithium side is a great play here. they're continuing to book an awful lot of business around the operating systems and enabling the transition they need and we think the continued global market may be double digits for a number of years here. >> that's interesting playing, meaning, upstream, you will not bet on the players, those supplying them, that's a different story. great seeing you today vietnam a great week >> thank you coming up, dollar slices in new york city, the pizzerias are raising prices we will talk with papa john's ceo. and the rollout of vaccine,

dr. scott gottlieb will join us to weigh in. as we head to break, check out the major indice's performance. the s&p down a permanent-and-a-half nasdaq down 3.6% rights now five days into the 8year you are watching "squawk box" on cnbc

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a december jobs report is just 90 minutes away will a preview of what investors should be watching also, the pizza inflation is on the rise. we will check in with the ceo of papa johns we will talk business and labor issues in america. and the fourth vaccine shot is what will you need this fall. we get the latest from dr. scott gottlieb the second hour of "squawk box" begins right now sn♪ >> good morning, welcome to "squawk box" right here.

i'm andrew ross sorkin joe is off it's jobs friday let's show you u.s. equity futures at this hour, ahead of the big jobs number at 8:30. we'll see if that number is representative of anything, given that it's coming, it will be data from before omicron really hit we go the dow right now looking like it will open up 26, 27 points higher. nasdaq opening hire as well. the s&p 500 up 10.5 points meantime, what is making headlines? the supreme court will be hearing on the nationwide vaccine mandate. they call for large employers to ensure that workers be vaccinated they will be tested regularly. opponents say it exceeds the white house authority. they say they will prevent many deaths and illnesses shares of gamestop are surging, retailer, also one of

the prominent mean stocks launching nfts and crypto currency sources, gamestop has hired now more than 20 people to run that new unit. we will have a lot more on that story later this hour. mortgage rates hit their highest since may of 20. the average 36-year mortgage carrying a rate of 3.2% was up from 2.65 a year ago >> all right still low, getting a little higher just about 90 minutes from the big december's jobs reports, that will give insight whether high growth has been undermined by the covid surge steve learnman joins us with more now to handicap this number st steve. >> yeah, there was little of this report that will suggest the job market was strong in

this month's data. what do we see leading up to this low jobless claims, a big adp beat high quit rate, increasing wages, employers, the trouble they've had in finding workers the street looking for payroll double the disappointing number from november. the unemployment rate is seen ticking down wages pretty strong 30.4% rise i will be focused on revisions in november. a major question is whether workers come back to the work force and december should also see a rebound with st. louis fed president jim bullard saying he doesn't believe the bulk of the four to 6 million workers are coming back, at least not quickly. he said the trend has been declining for a couple decades the u.s. is not far off of the trend, if you just draw a line straight down. an increase in retirement, all look to be longer-lasting

factors that we look at more aggressive stance on monetary policy he doesn't think it will work. okay combine a tight labor market with the general believe the omicron outbreak will be sharp but short. it makes sense to expect only a modest effect on jobs as employers hold on to workers they v. mick, i think this will be true this month i think it will be true next month as well, with exception of education, we report 5,000 closed schools and leisure and hospitality. >> you mentioned, steve, bull market orlando's comments about feeling labor force participation. how does that play into what the fed decides is truly full employment we're basically operating on the premise that the fed feels they can almost check off that box at this point >> you are right, mike you answered your question the idea that the fed thought it

could and should keep policy wide opened to bring these folks back the idea that, hey, maybe we're there now. maybe we have already arrived because of the idea that there is not going to be this influx of workers back into the work force. that is something that leads officials to more aggressive policy you know, there are still those like mary daley hope that we could do more. if you didn't have that participation before omicron he says that was at the end of a ten-year expansion we finally had that increase. >> a lot of gao ways to i guess surround that number we'll look at it 589:30. >> see you then. let's go over to dom chu he has the pre-market movers what's moving today in. >> it's friday, some of the action we are seeing within that broader s&p 500 pre-market trade has centered around some of the

nams that do tie a little bit more to the prospects for is overall economy and certainly all of that is done vis-a-vis the omicron surge. the active once, more volatile in the trade devon energy apa is one of the better once, up 1-to-1.5% travel-related stocks, delta up 1.45%. norwegiangion up one-half of 1%. ten year yields currently hovering at the highest levels since early april, breaking out of that recent range we seen j.p. morgan chase indicative of the banks. uber, an under performer over last year, today analysts have done the equivalent of calling them their top pick or adding them to their conviction by list that sort of thing among those analysts there, they cite the relative valuations versus the s&p 500 and stocks in

travel and leisure some point to being more bullish for uber in the last 12 months, a 25% loss, uber shares are catching in the pre-market trade up nearly 1% we'll check out our top tickers. our website from yesterday's full session gamestop may be no surprise the best performing or no search single stock tirk, up about 19 in the pre-mark. rivian and tesla continuing that ev trend among listeners and readers out there. kathy woods fund comes into the top ten for the first time in quite some while n. bitcoin, the first time we seen crypt currency crack that top ten. the crypto did cross the 241,000 range at the most earlier. we had talked about that range being some of that area of support we saw back in september. we'll see if those levels hold this time around, back over to

you. >> did oil make it anywhere in the top ten? i know i should go look it up and see. you got oil above $80 a barrel >> not in the top ten, certainly in the top 50. >> top 50. >> it's always kind of up there. oil has not ceo kd the top ten in quite some time we know the ten-year treasury yield more often than not is the most searched ticker it gives you an idea they focus on the interest rates of things and it becomes leak this tea leave, indicative, where the market direction could be. so a lot of interest there it was the number one searched ticket again oil prices are creeping up there. they're always within that top 50 they vacillate between say the 15-to-25/30 range. as you point out, with prices on the rise, we could see a lot more interest there soon >> dom, i would never put you in my top 50. are you in my top 10 for sure. >> you are always in mine, thank you. >> we'll see new a bit. >> you got it.

coming up, after the break, we will talk about maybe my favorite food. i don't know better ingredients, better pizza. more inflation, though, the ceo of papa johns will joins to talk about labor across america before we head to the break. let's take a check on the markets one more time. real quick, dow up 12 points, nasdaq up 8 points s&p 500 up seven points ahead of this jobs nuermbt a 8:30 you don't want to miss that we'll talk pizza after this. st a 8:30. you don't want to miss that we'll talk pizza after this. >a 8:30 you don't want to miss that we'll talk pizza after this. s a 8:30. you don't want to miss that we'll talk pizza after this. we'll talk pizza after this. >> become an agent of innovation with invesco qqq

. omicron hitting businesses hard, contributing to a nationwide labor shortages, particularly when it comes to the food industry. how will that with rising costs affecting restaurants in 2022. the leader of papa johns, rob, thank you for being with us this morning. it's great to see you. >> thank you for having me, becky. >> so before we talk about this new deal with your franchises that you are doing, let's talk a little about what's happening on the overall labor mark it is jobs friday today so a lot of people are wondering, how difficult is itto find workers at this point and what do you have to pay them to show up? >> 2021 has absolutely been the

toughest operating environment our company has ever faced, both from supply chain challenges and labor shortages and wage inflation. but our teams have been amazing at persevering through all these challenges as they have at preserving through the pandemic. papa johns has been opened every day since the start of the pandemic we figured out how to operate in the new normal so, you know, the last couple months have been, you know, more challenging. omicron has posed some challenges to the operating environment, the contagiousness of that variant has definitely put a lot more team members under quarantine our franchises have been great leaders throughout these challenging times. that's what's allowed us to outperform the marketplace. >> are there geographic areas where it is more of a significant problem than others? >> not really. omicron started out obviously on the coast similar to the

original variant we're seeing it everywhere it's affecting all of our restaurants. we operate in every market in the united states, 51 countries across the globe and we're seeing omicron have an effect on our labor pool everywhere. >> one of your competitors announced they are raising their prices, it's an issue that every restaurant company is facing at this point higher input costs, inflation for all of these foods how do you hands him it? and how big of a problem has it been >> you know, papa johns has been about better pizza, better ingredients. we've focused on that over the last two years, returning to that positioning and making sure that our advertising and our innovation pipeline is all about quality positioning.

so we believe that gives us a competing cost we've never gone after the super value customer we're looking at people willing to spend a little more to get a better pizza i think that position has done well in this environment we haven't taken a lot in pricing over the last two years. we haven't had to. we allow our customers to select up that's driven a lot of growth for you was. if we should need to pick pricing given the current inflationary environment, i think we are well prepared to do so all right. this may be an obvious question, but what is innovation when it comes to pizza you are talking about significant price increases that you had to deal with yourself, whether that's coming from labor organization the food that you price out, how much can you innovate a pizza to make it a premium product people are more willing to pay for

what's the most expensive things >> obviously, we have to get you papadilla is it's our folded pizza, happened held, to handle single competition for the lunchtime day pa ready. >> like a quessadilla? >> yes, similar but with pizza. >> how much does that cost if little ceasars is talking $5.45 for a full pizza. >> if you want the base, we're talking $6 the you want the parmesan crusted that will probably run you in the $7 range. >> all right let's see, increment am and innovative, you can charge more for it let's talk about the big deal today. go ahead >> i was just going to say, it's also in our four spiz za, we launched our new york style pizza, it's larger, larger slices, thinner crust.

which caters to, you know, the northeast and different regions that are familiar with that type of pizza so we're always trying to inna rate is, bring new ideas to win. we've taken all the guardrails off the ideas that can ask drive our agreement. >> this new agreement is to push into china this is going to incredibly open your foot print. how many stores? >> this is a huge deem from what i understand it's probably the second largest development agreement in qsr history. it's 1350 new restaurants throughout southern china. for the last two years since took this role, i talked about not just the white space we have, which is huge relativeto our competitors, but also our under penetration in markets we already compete in so we have about 200 restaurants in china today and this is going

to grow that foot print dramatically it's a 20-to-25% increase in the total number of units we have in our plan for the whole system. right now we have 5500 units, we're adding another 1350 with one deal n. 2021, including this deal in 2021, we've added over 2,000 new units to our development pipeline that's the foundation on which every healthy restaurant company is built, development, new store development. the it's a testament to the unit economics, franchisees are putting their capital into your system they believe in the future, not just in the short term but the long term. so this is a big key leading indicator of what's to come for our brand. >> you know, it's certainly something that companies like kfc and starbucks have done successfully to push into china. but we have seen rising tension between the united states and china.

we're not so sure we like them thaim they're not sure whether they like us there is a question whether that plays out on american brands trying to serve chinese customers. what do you do to protect them >> we think everyone likes pizza. our company purpose is everybody loves pizza, it brings us altogether we deliver it. that's who we stand for, that's who we are so bringing our pizza to companies that may be challenged in a multitude of ways, we think it can bring people together and help consumer commerce wherever they may be. >> pizza ambassadors >> yeah, i like the ring in it i like the tone in that. fundamentally, that's what we're trying to do we got great partners, very well capitalized partners in the region they've shown great ability to grow brand and work within the context of the chinese

government and within the country. we couldn't be happier they want to invest their resources in our brand. >> rob, thank you for joining us today and for teaching me what a papadilla is good luck. we'll talk to you soon. >> thank you, becky. coming up, gamestop jumping on news the retailer will create a marketplace for nfts we'll have the details straight ahead. later, could an omicron beat be coming? we'll talk to dr. scott leave ab scott leeb- *coli aut thatsttebbo t be shy, now. i like that prime cut. -aflac! -i love my gold jacket, but that aflac blue feels so right. when you feel right, you coach right. i know that's right! prime never believed in double coverage, but health insurance and aflac...is money. ♪ must be the money ♪

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. the financial stress of the pandemic has shown an emergency fund is essential, but still, nearly one in five americans didn't save any money at all

last year according to a new survey by magnify money. our senior personal finance correspondent sharon epperson joins us with how many more employers are helping build their short-term savings. >> good morning. half of workers, 46% of number-time employees recently surveyed said they didn't think they needed an emergency fund before the pandemic. but now they know they do. employers are stepping up to help make that happen. >> folks killed not have a short of term savings vehicle and their backstop was their retirement plan and so they were tapping their long-term savings option in ord to make short of term savings needs >> they offered saving solutions to its workplace clients in 2020 act 26% use after tax features

to build emergency funds according to most recent data from benefits consulting firm. and 60% are interested in providing this benefit health savings accounts can help build funds for medical costs are increasingly popular and provide a triple tax advantage >> you put money into an hsa, that money is going in on a tax-deferred basis the earnings on those funds are tax-free then the distribution provided that they are used for qualifying medical expenses are also typically tax-free. >> if an employer offers an hsa or flexible spending account, 33% of number-time workers said that could entice them to leave their current job and 27% said they may make a move in a new employer offers an emergency fund becky. >> sharon, just on a practical question on that, if you are

setting up an emergency savings benefit, would they be putting it in a savings account, in a checking account, and what kind of interest would you earn on that the one concern i would have is if you are setting that money aside, you are probably taking it from your retirement savings that you were putting it aside before, how does that brake down >> the concern is people were taking money out of their retirement fund already. they wanted to set up something separate they have set up an after-tax option attached to a 401k but not the same restrictions, so you have the ability to access your contributions if case of an emergency. the options can vary widely. some may have you stash away $10,000 in an emergency vehicle. >> that's a lot of money it's great to see helping out people for saving for a rainy day. we all knew we needed it it's hard to prioritize it,

helping it would be an incentive. >> absolutely, becky >> take care >> okay. >> still to come this morning, dr. scott gottlieb will give us the latest on the omicron variant next plus, we are an hour away from the december jobs report we are bringing those numbers and the instant reaction as soon as they cross. stay tuned you are watching "squawk box" on cnbc >> cheers. 100% accurate payroll tax calculations guaranteed.

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ness game on. gamestop surging after the video game retailer starting a new division to focus on nfts and frank colin joins us with more frank. >> reporter: hey there, gamestop surge more than 30%, you saw up 13% now after a report that it would create an nft marketplace. cnbc says they will focus on virtual video games such as characters and outfits and weapons. the chairman has brought in a team of managers from amazon and

chewy as a strategy into omni channel retailer but yesterday was the second time we heard about this nft news back in may the company said it would get into the nft business. i spoke to nft adam holdinger. he says the brand recognition of grah gamestop alone should generate a lot of interest. >> gamestop is in a unique position when they're in that environment, nfts are important building blocks of the metaverse. gamestop is well positioned, in my opinion >> etherium is how most nfts are stored etherium is still down with rip him and bitcoin on this gamestop news all three falling double digits, most of them over last month, ripl down 6% due to omicron interest rates and the fed

nft prices have continued to rise you have to remember gamestop was the most popular bets last year giving it a people of retail traders that galvanized around a high risk investment strategy so there is a chance, according to hal ander, at least, this can work and translate into nft buyers over to you. >> here's the question, how big a factor are reddit followers can be in opening up this nft marketplace? >> i spoke to hollander and they say nft marketplaces are opening all over the place at the same time, crypto currency declined. etherium outsflows and december was the biggest month for crypto outflows at the same time, gamestop has a lot of brand recognition and people like hollander believe if they can return a fraction of

that enthusiasm, it has a good chance at being successful >> fascinating frank, thank you appreciate it. becks. >> thanks, andrew. when we come back, dr. scott gottlieb will join us for the latest omicron surge and the push for vaccines. the jobs numbers will be out at 8:3a. ete0 m.asrn time. we will bring you the action as soon as it hits, "squawk box" we'll be right back. m five star fiverr talent. hundreds of freelancer skills like web design. head to fiverr.com today and get something started.

welcome back to "squawk box. the futures stabilizing, a small move for the s&p 500 of that 1 .9%. andrew >> it's about the topic we talk about every day. covid, six of the former board health advisers publicly urging a shift in its strategy. the group organized by dr. zeke emanuel calling on the president to focus on a strategy of what he calls a new normal of living with the virus indefinitely, not wiping it out. joining us is dr. scott gottlieb cnbc contribute ore, serves on

the boards i'm curious about your reaction to the zeke emanuel group going public, effectively, in a polite way of sorts criticizing the administration for the way they've approached this. >> i think it's premature a. lot of the substance of what they wrote was focused on the future and how we have to create a different posture going forward because it will be a persistent threat i think it's premature to conclude how this virus my circulate. we may see more variants, more likely it will be a morin demic and seasonal risk. we don't know how prevalent it will be in the winter time and what kind of disease it will cause. so far it's been endemic people don't have immunity to it it's caused an impact on society. as we build this wall of immunity for the nation and through infection, this could start to recede. i think the biggest risk we face to the future is a normalized flu season if we go into next year and have

some level of covid on top of that, that could be too much for the current healthcare system to bear we need to think how we will think during the peak pathogen month. i remember when i was practicing medicine, that was a significant strain on a hospital now you layer on top of that covid, that can push them over the edge so far we've had abnormal flu seasons, we've had very low prevalence of flu. that will return to normal we will be due for a while through the flu season. >> we spend time with vaccines the board of pfizer has probably the single therapeutic that appears to have the most promise. it's not at scale yet in terms of distribution. what is that going to look like, this spring, more importantly, next fall, next winter later on top of that, the testing issue, because it appears for that drug to work very well you need to catch it early. so you need to be able to test and get an answer, a negative or

positive pretty quickly. >> well, look, i'll say at the top, we have to normalize the distribution of the vaccines and diagnostic tests we need to get them out into more retail channels right now the government has been in control of that distribution in certain respects, that's facilitated access in other respects, it's probably impeded access so hopefully as more supply comes into the mark as these things gainful approval, we will have a normalize supply chavenlt you will push them out to channels more in neighborhoods and push them into doctor's offices, as well i don't think this drug is the last word on anti-virals we have demonstrated we can find orally available drugs when it comes to this novel coronavirus. you will see other innovation behind this, some by other companies, some by pfizer. this is a highly e..ive drug as you mentioned at the outset. there will be more supply coming

online as we get into the later months this year pfizer said publicly, they will produce 120 million doses. more of that will be in the second half of the year than the second half of the year because of the long time line. eighth six-to-eight month time line we will have much more supply coming into the mark so as you get into the fall of next year, hopefully, prevalence will decline in the spring and summer as we get through this difficult wave right now the fall of next year, you will have enough supply for people that need it it won't be rationed. >> scott, is this the kind of thing where i would buy, i mean, this is the part of the issue, some people pre-stock, if you will, tamiflu in their bathroom cupboard, right, they have it ready to go. is this the kind of drug a family might have a couple boxes of it? it tests and then they take it and everybody would i think feel a lot better about everything, no >> yeah, look.

tamiflu is indicated for stockpiling in your medicine cabinet. some make decision to work with patients you are right. a lot of people do, do that. that's the discretion have you in a normalized supply chain right now you can't do that. they're controlling tightly what doctors can do when you have a normalized supply chain, doctors have discretions to make decision like that. if they know they have a patient unusually vulnerable they know they're at risk of contracting fluid, it's important to get that dose in early. you might make a position like that some patients do, do that. >> so how critical, though, do you think? is there another drug? another therapeutic you think is on the make, it's coming soon? >> look, there is a lot in early development. the one in late-stage development is a drug by roach it's a protease inhibitors pfizer is working on other

models as well i think you will see continued innovation in this space much like in the space for drug targeting fluvinfluenza. we've seen other markets for tamiflu. i think we will get drugs easier to take, one dose, a shorter duration maybe more efficacious although, the pfizer drug highly effic efficacious. >> they are saying a fourth dose may be required, a third booster will diminish over time. if you look at some of the headlines, it seems to be a surprise to others my bigger question about that, though, is whether you think that the fourth dose to the extent there will be a fourth dose will have to be shifted to deal with either omicron or some other variant in terms of how the thinking goes about that >> look, i think now that we're

in the pandemic and we have persisted infection, you are going to see some people get a dose every six month who's are immunocompromised. for some it will be an annualized vaccination, which we long thought in terms of make ac shift to another vaccine, i think this is something we need to take one global health authorities. if we have to move to the multi-level vaccine, it isn't something the united states can make alone and distribute to other countries. so you need agreement across the world, much around the flu vaccine, what aboantigens go n.e haven't argued the first baseline immunity, if we shift to another vaccine now, it will be an even increased impediment towards that seen around the world. so i think you will see extreme reluctance to ship this vaccine.

that's a discussion we ought to be having right now. that's what the world health organization ought to be doing, have that and we must move to a multi-vaccine or do it we have the technology, that's not the impediment it will be a global public health agreement >> scott, just to follow up on that, i mean, how does that work, pfizer couldn't be making the old one and the new one at the same time to serve a developing nation that hasn't been fully vaccinated and a developed one that wants to buy ahead. these seem like decision we shouldn't be talking about right now. you have to decide this to get the manufacturing cableability up and ready for next year when people say we don't want to talk about these shots the united states are doing them now. if they don't, we have one with tests. >> production is not going to be the issue. the companies are going to be in a position to produce a new vaccine. they will also be in a position to produce the old vaccine and a

new vaccine. but this pathogen is global in its reach. you don't want to buy vaccination in one market towards one about' gen and ano -- antigen and viral strains that aren't circulating anymore that can make them extremely vulnerable to mutation you need an agreement how we do the global population wind chill fluids, it's a structured process. local health departments meet twice a year to make a decision of whatantigens go into that vvenlths you don't have different strains in different markets. >> can i say the flu shot almost never works. how often does it happen, if you talk about it from that perspective, it doesn't give me a whole lot of faith. >> some years the flu shot is quite protective up to 70% some years not this seems to be a year where

the strain that is circulating doesn't seem to be a good match for the vaccine. some years it's been as low as 20/25% it's a little different with the coronavirus. i think we will have more luck trying to make estimates in terms of what antigens may circulate. it shouldn't mutate the same rate it's been evolving. we see the ancestral strain, the original vaccine is providing high degrees of baseline immunity against multiple different variants w. refive or six variants in, with respect to this virus the original vaccine is still providing meaningful protection to patients. >> talk about variants, there was a new variant discovered and reported about recently over the past 48 hours in france. the w.h.o. seems to be downplaying it i am curious what your take is on it? >> this was actually first reported on about a week ago there was a pre-palestinian on it, a cluster found in france. some people were coming from a

country in affect. look, it has some mutations that are concerning, but there are mutations we have seen before that haven't really taken off in certain strains and so it's not really clear that this is a more fit strain i may be able to partial i evade immunity given the population. so far it appears to be a cluster. there have been plenty of novel strains, probably always the fact that you had a strain to a specific market and had a couple super spraying events. it never took off. we remember that new york strain spreading in the brovgs, the l.a. strain in los angeles last winter neither took off, even though they had certain mutations a mutation has to be able to evade immunity it also has to be able to spread and prop date very easily, not every mutation is. >> finally, scott, a number of businesses here in new york city and around the tri-state area have effectively told workers not to come into the office

through martin luther king day or the end of january. we had the mayor of new york city on the program yesterday. he says he wants everybody to come back to the office. he says come back to the office and mask given the prevalence, what would you be recommending ceos tell their employees? >> i think companies that have had their employees back at work and put in place measures to protect and do that, i think it's probably a little difficult to make the decision denovo to bring people pack in the peak of this epidemic. if you look at the data, it does appear d.c., puerto rico, marmd, florida, maryland, florida, appear to be turning the curve. the northeast is dense, if you have counties 400,000 per 400,000 people, most are in new york and new jersey, new york city, essex county, union county, the only counties are in

colorado and miami-dade. right now the northeast is in the thick of the worst part of the epidemic as we get into next week, it will be quite obvious the epidemic is coming down. the hospitals will continue to see emissions. that is the challenge in particular, the hospitals are really crowded. >> we got to run i have to ask. when things peak, to get back there basically mid-december is when things i fifelt a lot better for most folks. that still would be four, five weeks after the peak, right? >> it will happen more quickly you are still looking at probably two weeks past the peak until you get the prevalence levels really low. >> fair enough scott, always great to see you have a great weekend >> thanks a lot. when we come back, we're going to break down the charts and some of the big movers in the tech sell-off. the nasdaq right now down seven of the last eight sessions we will tell you what the charts are telling us of what's next. check out oil stocks, headed

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or visit an xfinity store to learn how our switch squad makes it easy to switch and save hundreds. several tech stocks continue to tumble as investors rotate out of high valuation names. here the break down the charts to see if it's time to take money off the table or put more on, carter wirth good to see you. the big question i guess you

lock at the nasdaq complex, the software names has this been a seriouser are verse am of the trend here or tactically is it an opportunity? >> the two areas that you mentioned are quite different. software has been damaged if you look at the igp etf, the biggest reference microsoft hasn't been damaged at all so case by case. the qqq which captures so much of the dynamic part of the market and the economy, it really is still very much in an uptrend. a couple of charts depict that the first chart shows basically up and to the right. it's north by northeast, characterized by give backs, pullbacks, corrects, declines, now, interesting, this first one is the 200 every day average not once does it touch it? it's had no efficacy over the past year. look at the second chart, it's qqq its with the 150 average

literally the qqq the nasdaq 100, which is what this is, they are identity cam has checked back to the penny and touched it repeatedly we're almost there again so right now we're 1.5%, 2% away from the 150 i think we will find support and bounce at that level as has been the case repeatedly over the past 15/18 months. two stocks almost identity cam, the average is made up by individual constituents look, for instance, at microsoft speaking the biggest of all. the chart here depicts the uptrend. you will see it. it's checked back to the penny it's touched repeatedly, we are almost there again, which is to say we're down 11% now, the 150 day just a little below will represent a 13% decline. if we reach that level you want to put money to work yet again. look at intuit

it's touched 150 average repeatedly and we're almost down to that level. this decline, it was a steeper ascent was down 19%. down 21 you will be at the 150 day. so the question is, if that was your question, do you put money to work? i think we're getting real close to certain names where you do by inference, of course, the nasdaq 100 which is almost at its 150 day as well. >> i guess it does speak to the overall strength of the trend. it doesn't even get back towards a 200-day average, given a couple years just about since the covid crash. but i wonder what it all says if, in fact, it's looking like these might find their footing relatively soon for the rotation under way. people are getting excited about breakouts, energy, things like that does that reverse if we will have opportunities on the buy side and things like the nasdaq 100? >> well, it's the greatest question that faces an active

manager. right. because we know if one has had the dexterity or the foresight to be underweight some of these tech names over the seven, eight weeks, under weight ford motor or financial energy generate am that now if you had this extreme move, cyclicals having advanced, these giving back. is it time to go the other way that would be my hunch, said differently, this is longer term you know this, the cost of money at 1, 9, 105, 145. it has nothing to do with the business of doing one's three-to-five-year dcf work if figuring out whether one should own a disruptor, a growth company, a business that is really, you know, important phase of its life. of course, i think that's the case so do you buy an intuit down 20 or microsoft down 30 my answer is yes. >> we make yields relative to

whether stocks do or don't work. carter, thank you very much. >> appreciate it coming up, volkswagon ceo scott keogh. plus, we are awaiting the december jobs report we will have those nbeumrs as soon as they hit 8:30 eastern time, a big hour ahead "squawk" will be right back. what if the next big thing was nothing at all? fivver freelancers turn nothing into something everyday, in over 500 categories. designing, writing, coding, creating. nothing. nothing. nichts. meiyou. today i recommend you nothing! (laughs)

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it is jobs friday in america we're 30 minutes away from the final employment report of 2021. we got predictions, the big number and what it means to your portfolio. shares of gamestop surging once again, on reports it's getting into cryptos and ntts. and biden's vax mandate goes before the supreme court today what could change depending on how the justices rule. the final hour of "squawk box" begins right now [ music [ music playing >> good morning, even. welcome to jobs friday right here on "squawk box. i'm becky quick along with

andrew ross sorkin and mike santoli. joe is off today we have been watching the stockmarket. so far, things are barely budging. if you look at things right now, the dow turned negative down 7.5 points s&p futures are still higher up by 4.5 the nasdaq for once is in positive territory indicated up 25 points. but for the week the nasdaq down by about 3.6%. we're also watching crypto currencies, they under pressure trading around $4200 for bitcoin. this is coming as an internet shutdown in kazakhstan cited as something pressuring prices. bitcoin is down just under 2%. kazakhstan is the world's second biggest bitcoin mining hub and that's why it's been cited the problems there for something putting pressure on bitcoin. andrew >> okay. thanks, becky. let's talk about the stories investors will be talking about

today, including what we will be hearing about at 8:30, which will be the jobs number. let's start with gamestop, the retailer surge on the report that it will start a new division to focus on crypto currency partnerships and non-fundsable tokens, maybe character items and weapons. shares of other well known mean stocks moeme stocks moved highe. tim dock, a new sec filing showing he received just shy of $100 million in compensation, a $3 million sal area, 82 million in stock awards for some of his vacation time for cash, if you are an apple shareholder, you might say his carepackage was worth it the company reported $365 billion in revenue, that's a

billion dollars a dayio i don't know if all companies will pay you for cash interesting one. two pieces of news on the chips front, it also depends what the scale is, right? for a day of tim cook's worth of vacation might be much higher. anyway, it's massive down there. separately, samsung estimated today the fourth quarter operating jumped 50% on strong demand for memory chips and rising orders for contract service. the is t micro u about 4% on that news, becky, you want to sell some vacation days >> i guess are you buying i'll still them. >> i don't know. i wonder i don't know how that works. >> it depends on the price although, i would say there are times when you kneeled a break so much, there is no amount of money that will keep you here

spend time with the family, rejuvenate, too. there is something to be said for that much more important than money all right. let's get book to the broader markets, just under 90 minutes for the opening bell on wall street mike is looking at a more active fed. they are ready for this today, mike >> absolutely. the market has been repricing in this direction yesterday s&p 500 got a little traction meme stock was up. the overall index weighed down from further pressure in some of the larger growth stock names, energy, banks, both strong yesterday. so we still remain here with 4800 at the moment, a little of the ceiling. we got footing around 4700 we'll see if that ends up being the range or not if you are lower than that, you will think that's the new range. anyway, the way the big cap growth stocks have gone monitors

how the s&p has been acting on an interday basis. two year note yield has taken flight it looks like kind of getting it into momentum stock territory. fem off the cliff at the beginning of the covid lockdown from above 1% some here we are, we got pretty close to .9% yesterday. interestingly, the ten-year yield finished 2020 around .9% everything has gotten repriced higher talking about march being a live fesd meeting take a look. speaking of the cyclical rotation, banks versus tech. very handy going back a lot of years to say what kind of market is it? is it a growth market, a reflation or cyclical market now? cyclical so we've nosed above the bank index against the technology on a one-year basis you look back in the spring, massive reopening, react sell racing of the economy rally. thought that was going to be the story for the year then it changed. we had yields kind of calm down.

tech take the floor. it's almost like it's choreographed here you see it happened before omicron as well. this is another attempt, regional banks, especially, have been very strong. >> what is the market set up for today? if we get the number, the estimate for the jobs report is 422,000 for the month of september. if we see a big surprise, in november it was up over 200,000 or surprise to the downside or a surprise to the upside, how is the market likely to handle all of this? >> i think it will be tough for today's number to shake the general premise the investors have right now, the jobs mark is very tight if we have a light number, probably people will be focused on the supply side to people not coming and looking for positions. so it's not going to be seen as necessarily a soft signal for the economy. yes, you also have to consider it was from the middle of december, the survey month if it's a very strong number, it probably solidifies the idea the fed is looking for an

opportunity to move several times and be a little more aggressive as opposed to looking for excuses to wait. i this i that will be the conclusion, whether it's true or not. >> all right we got just about 24 minutes to go we'll see the number ourselves mike, we'll see you in just a minute >> meantime, let's head to washington, where the supreme court is set to hear arguments today over president biden's vaccine mandate for large u.s. businesses kayla tausche joins us with the latest. >> reporter: andrew, it was a special session happening today requested by religious organizations and other groups that want to hear from the highest court in the land exactly what they believe about the president's vaccine and vaccine or test mandates that argument is going to be made later today in this special session and there are several vaccine mandates that are going to be heard today. those applying to present companies with more than 100 workers, those applying to facilities receiving medicare or medicaid funding at present, healthcare workers

in 25 states where they aren't blocked, they must have one shot by january 27th. a vaccine mandate for federal contractors takes effect january 18th and federal employees without an exemption were already required to have a shot by november 22nd. now all of these rules have been challenged, bloblgd,cked, appea and challenged again for private companies, osha said it would begin finding them in monday unless the supreme court blocks that vaccine or test mandate. attorneys say businesses should prepare as if they're going forward. the justice department says osha has to make immunization rules to keep employees from danger and protect economic productivity big lobbying groups like the business roundtable and national association of manufacturers support. but smaller companies like the national retail federation and federation of independent businesses say small companies

are already having a hard time managing staffing shortages and supply chain issues and this would only make things worse now, the ruling is expected in short order, it's unclear how quickly that would be. the white house press secretary jen psaki says in a statement policy in needed urgently. andrew >> how much do you think we will know by the end of the hearing the kind of questions that people ask, what kind of take away you might be able to design by reading the tea leaves? >> well, there certainly will be tea leaves that will be intended to be designed there is already so much literature in this case. both sides have strong arguments why these rules should or should not go into effect there is hope there could be some semblance of a decision or signaling by the time osha is expected to enforce these rules beginning monday we will have to wait to see when we get that official decision.

>> real quick, how does the booster fit into all this? that's not a part of this as of now? >> the federal register rules specifically state vaccination requires two shots there are some legal experts and doctors who argue that language has hamstrung the administration here the rules they published, they're temporary rules. they would apply six months. there is an expectation if that go into effect, perhaps after that six-month period, you could see them update that guidance or if the supreme court blocks these rules, maybe the cdc or administration goes back to the drawing board, for organizations implementing their own vaccine mandates, that should now be a three-shot mandate >> okay. kayla tausche with the latest. we will keep our eyes on it all day. appreciate it. mike coming up, the number of the morning december jobs, we'll have the data and lots of analysis how one legacy auto maker plans to get a foot hold in the ev industry, the u.s. ceo will join

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how not to be a hero: because that's the last thing they need you to be. you don't have to save the day. you just have to navigate the world so that a foster child isn't doing it solo. you just have to stand up for a kid who isn't fluent in bureaucracy, or maybe not in their own emotions. so show up, however you can, for the foster kids who need it most— at helpfosterchildren.com our next guest sees the adoption of electric vehicles accelerating he's in a good position to do something about it our phil lebeau joins us with a special interview. >> reporter: hi, scott, let's bring in the ceo of volkswagon

america, scott keogh q4 up 15%. how is the chip supply, how is your inventory looking right now? >> well, phil, first and foremost, we had a great year overall. the market was up about 3 points we were up 15 points as you saw. and we gained market share so we had a very good year look, chip supply is going to continue to be a problem without a doubt through 2022 i think a primary reason is demand is so incredibly strong so i see demand continuing to outstrip supply. the reason being, honestly, if you look at this year, 15 million units were sold, there was probably demand for 17 million. that means 2 million are move nook the marketplace of 20s 22 when i look at stocks, the good news is lick quiddity is extremely strong we're turning nearly every one of our cars every single month supply is tight, under 10

million cars oak which is unhe-- on the ground which is unheard of. >> you will be making patry packs there this year and actually manufacturing the vehicle. are you still on schedule for that to happen >> we are. 100% on schedule look, phil, if you go back to when we made that announcement, people said, we're crazy, volkswagon making an electric car, are you ready if you look at 500,000 were sold, electric market was up nearly 100%. yes, we will be ramping up in july some of the early prototypes have come down full steam september/october. you couldn't throw in my mind a more perfect dart. we have a product in the prime, the iv 4 it's well received now it will come out of tennessee. we're excited and obviously motivated by that. >> but, scott, some people would look at volkswagon and say look

you are strong in europe, strong in china, where electric vehicles are further along than here in the united states. when you come to the u.s., have you the iv 4 and iv buzz coming in 2023. do you need to move faster to catch up with tesla and your other competitors, gm and ford two are ramping up their production of electric vehicles? >> it's a fair point in life you can always move faster i think we're on the curve not that many people have a dedicated plan we have one. let's not lose sight of the fact, phil, you can make a lot of noise, we're 40% of the u.s. market that's where the volume s. we have pa localized car. it's very successful we will be launching one new electric car every year. you will be seeing more on the buzz and other announcements shortly. so i think, a, we have the product to keep up more than importantly we have

the scales, the platform is made in five factories world wide it gives us massive scale, massive economy. i think we're right on the wave, right on the cusp of this thing. i feel good about where our market position is >> scott, you have always been candid with me when it comes to where the industry is and how it intend to get ahead of itself. is the industry ahead of itself in terms of projections on electric vehicle sales world wide let's be honest, we don't have the battery supply there, there are more than a few saying if you look at whether it's lithium or raw materials, that production is not ramping fast enough >> you know, you ask two different questions. first and foremost, i have always believed in 100% electrification. the tipping point is here. it's here with regulations, with the massive investment the industry is making mostly, it's here because the consumer tip is happening. like i said, 88% up, 500,000 units, over 3% of the market i think it will be 10% like

that so i think the market is there make no mistake, i think the second supply chain issue is going to be batteries, without a doubt. we just went through the semi conductor. that's going to continue battery will be the second one do i this i the industry can collectively navigate it yes. why? there is a lot of resources, new technology each and every day, which is going to adjust make no mistake, if you want to drive it to 50%, are you talking 8, 9 million units relatively soon it's doable. we have supplies, we will be making a second announcement shortly. i feel relatively optimistic >> scott keogh, the president and ceo of volkswagen, america i appreciate you joining us this morning. guys, i'll send it back to you volkswagen again releasing its q42021 sales, down 10%, for year up 15% >> thank you for bringing us

that interview coming up, when we come back, breaking december jobs data from the labor department with rea few minutes away. anay tuned for number and instt reaction right here on "squawk box. we'll be right back. don't settle for silver. #1 for diabetic dry skin #1 for psoriasis symptom relief and #1 for eczema symptom relief. gold bond. champion your skin. you're a one-man stitchwork master. but your staffing plan needs to go up a size. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

welcome back to "squawk box" this morning take a look at the futures we are now ten minutes away from the big jobs report. the dow jones opposite down,

nasdaq though up 8.5 points. s&p 500 up over 3 points we'll see if the jobs number moves anything around. it will be given the variant and the omicron right now, lots of questions about the impact there. meantime, the head of moderna saying people may need a fourth dose of the covid-19 vaccine this fall, keep their protection up. maybe not a surprise we have been talking about this for quite some time after goldman sax health ceo saying the efficacy of shots will likely wayne over time we seen that across the board, including with flu shots they said the government in the uk and south korea are already ordering more doses, it's less clear whether the u.s. has begun taking those steps >> i thought i heard that they had been is that not the case i read a little too much this morning. i don't know i'll look it up. i'm not sure i thought i heard they had been, but i can't verify that i'll look is up for you when we come back, we have

the december jobs report it's a big one it follows wednesday a gain of more than 800,000 private sector jobs last month. our expert panel is standing by, ready to break down the number and the marketmp ilications. don't go anywhere, "squawk box" will be right back will be right back - [narrator] introducing the grubhub guarantee:

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. welcome back to "squawk box," everybody. this is cnbc we are a few minutes away from the government's december employment reports ahead of that, let's introduce the job panel, tyler goodspeed is with the kato institute and stanford university fellow and an economics professor and chief economist. gabriela santos, a global market strategist at j.p. morgan and mike santoli and senior economics reporter steve leishman steve, i will let you go first on your expectations what we should be looking for with this number >> so 422 is the consensus i think there is a possibility it's a little bit higher than that, in part, because the adp number was strong him some guys

revised their forecast for today. i think the effective omicron will be modest in this month finally, because of all the high frequency data and private sector data available and the problems they have been having, i see this report as one input into the overall jobs picture. i think that jobs picture is pretty strong right now. >> betsy, what kind you? >> i think it's important to realize omicron is not in in data yet this willtell us what was happening the week of december 12th and i think back to that week and i actually went out to a comedy show that week and then a week later canceled tickets to a show so omicron happened fast it was at the end of december. ials want you to put in mind that when we look at last month's report, it was super-duper weird. we saw over a million people gain employment in the household survey but that really weak jobs number

in the employer's survey we will see whether those move closer together this time. >> that's a good point tyler, what number are you looking for in. >> the consensus seems about right. i agree that we're probably not going to see omicron much in this report. but still the seasonal adjustment factors might be an issue. people continue hiring, maybe not quite as much as we world normally expect in the leadup to the holidays in terms of the different surveys. i think one thing we notice this year is the surveys are sort of running at different velocities. so for much of the year, the household survey and adp report were lagging the establishment report we saw them sort of catch up last month and in november, we'll see what happened, what happened in december >> gabriela, what number are you anticipating besides the headline, what other factors will you be watching for when that number hits? >> we do think it will show you last year it ended with a lot of

strength in terms of labor demand with reexpecting over 400,000 jobs added we are expecting a tick down in the unemployment rate by a 10th. that's a very important indicator. we will be seeing and looking for the unemployment rate to move lower by age and by sex as well we will be look at a second item for the participation rate among workers, which think should tick up by one-tenth. lastly, we will be looking at wages. we think it will be a strong month of wage growth 0.4% which translate 4.1% year over year. that itself the main thing the fed is watching concern about. it's the sticky parts of inflation, proving to be a lot stickier than they expected. >> mike, that's a part of what you're thesis is in, that it will be hard to shape the market from that thesis it's already gotten with the fed. that's because of the wage increases in large part, too >> it's been leaning harder to

this idea omicron will have not a sharper impact on labor scarcity is a premise of how investors are treating things now. >> we are watching for that number it will hit in a few seconds the dow futures indicated up by 11.5 s&p futures up by five the nasdaq up by 8.5 i'd like to look at the ten year right now. that been another one we have been watching so closely the ten year will have an impact 1.751% the number on the ten year, just before we get this number right now, it is time for that december jobs report the market is sitting just on hold with equities just about at break even oh, picking up a little right now. dow futures indicated up 30 points, s&p up by 9. the nasdaq up by 34. steve, what itself the number? >> 199,000, another big miss here november revised up to 249 from

210,000. private sector jobs were 211 it looks like we might have lost some government jobs there factory 26,000, goods producing overall 54,000 with construction at 22,000. yeah, government was minus 12. let's see, average hourly earnings, all private workers, a very strong 0.6% again, that itself the sign of a tight jobs mark raising questions about the deal that's the number or the overall payroll number here. let's see what else i can tell you. i don't have the unemployment, the u-6 rate, the broader measure of labor slacks 7.3% down from 7.7% i have the hispanic unemployment on the overall, yeah, wow. the unemployment rate dropping to 3.9% from 4.2%. that suggests again the household survey was stronger. i don't have that in front of me i'll throw it back to you, becky. i will look for the household numbers, black unemployment rate

up 7.1% from 6.5 the white unemployment rate down 3.2 from 3.7%. again i'm guessing, i will come back to you with this. there is again a stronger household survey than the payroll survey >> this is exactly what you said happened last time you called it super duper weird, the breakdown where you saw jobs numbers that were disappointing but the unemployment number much better than anticipated. why didn't it catch up this time what's the difference between those two and how they are compiled that might explain the differences we are seeing here >> i am looking atthe number right now to tell you 650,000 people became employed so we had an increase in employment of 650,000 people how do you do that if you are only adding roughly 200,000 jobs so the math just doesn't add up. so there has to be a couple things going on. one is there has been a surge in self employment and to try and better understand how much people are creating jobs for

themselves rather than waiting for employers to create jobs for them sometimes it's also really just a matter of we're surveying two different populations and it's not perfect information. right. it is our best evaluation of the data through a sample and we sample how households and ask them who has a job and ask businesses how many are on payroll. we see when we survey businesses, we get a lot of volatility and we get a lot of you know corrections in the coming months, so my best guess is we're going to see that employer survey moving closer in the next couple of months in the revisions. >> mike, the market is not entirely sure what to do with this we saw futures pick up and drop by down, the thinking that goes into this is that the jobs number was weaker than anticipated the household survey telling you another thing.

maybe that's no change from what to expect from the fed. >> it's a confusion-type reaction, at least initially i was looking at the treasury market, yields are not giving up very much. so it goes to that idea on the downside risk of the payroll side is not necessarily enough to make people say somehow the story has changed very much in terms of tight labor market, you have to let this filter through the markets for a little while before we know that. but at the moment, it seems as if that's what we can expect the dollar index i seen softening and maybe people think it buys them time inkind of doubt it's all that relevant in terms of deciding whether you know the fed moves in march or not. >> tyler, as a former cea chairman, you look at these numbers and think, what, this is telling us what about the economy? good news, bad news? or we don't know base it's garbage in, garbage out? >> i see a number, i cast my eyes down to the phone to look

at the details the number is a little concerning to me which is that anticipation number unchanged over the month when we lock at a lot of data like vacancy rates, quit rates, nominal wage gains, it has always signs of a tight labor market it's a tight labor market that's still almost 4 million jobs short of february 2020 by my estimations over 6 million where we would be. we continue that pre-pandemic trend. i think becky is right that there could be a lot of self employment surging in the household survey it's tends to be more reliable the margin for fist cal significance with the household survey is something on the order of a half million. so i would take these with a large grain of salt. >> steve, you had something else that you caught? >> yeah. just following up on what betsy was talking about 651,000 added

through the household survey employment absolutely right, in general, for years i told people the payroll survey is the more reliable, i'm just not sure anymore. you have 483,000 decline in the number of unemployed i guess, becky, you have to put all of this in context with every ceo, every analyst on the market, the lamar market is title. the jolt survey is telling us people are quitting jobs like it's going out of sometime because they're so confident you did have a modest influx into the work force of $168,000. not enough to move the participation rate, hanging on that ga gain in november to .2, 61.9%. again i come back to the comment i made before, this is one input of the picture it does raise questions maybe there is some effect of omicron in here. overall you have to stick with the 3.9%

somebody told me a long time ago, you can do all the matthew want, the unemployment rate by itself tells you just about everything you need to know about the jobs market. it's very low right now. >> all right gab gabriela, as j.p. morgan asset manager, what are you telling investors to do with in number in >> i think what really caught my eye is the average hourly earnings figure that is quoted 0.6% that's a bit higher than consensus, which was looking for only 0.4%. so we're seeing a tight labor market, strong demand for labor, faced with supply issues on the labor front related to a whole variety of issues. we've never had this before and it is translating into stronger wage growth. now, i think this is certainly is a good thing when it comes to workers, but it is something that concerns the fed as it

pertains to sticky inflationary pressures persisting, leylanding to higher inflation expectations, and this is really something that's baked in this year that should drive investors to price in a longer rate hike cycle, quantitative tightening and something that should continue to lead to higher yield, she in the mid--to-long end of the curve so a steeper curve so we're really telling clients, it's an important time to do a health check are you opposed to interest rate risks both on the equity and bond side or exposed to passive investing, let's move away from those extremes and make sure we're starting this new cycle with inflation risks much more balanced >> gabriela, is that something if you look at the health of your portfolio, would you be making different moves than we've seen the market make to this point, where you got stocks like numbers doing very well, obviously, they're interest rate

sensitive. if the fed raises rates, they will probably make more money. is there things beyond that? >> so financials are one of our favorite sectors for this year financials are at an all time high but that really masks its 200th percentage point under performance over the past decade it's larger than average discount to the overall market of 26% versus the normal 19% discount and financials are a very natural beneficiary of a higher inflation steeper curve kind of environment. it should also be a beneficiary of higher benefit growth both for consumers as well as companies, that should legs a vy different cycle. we're starting with banks, households, corporates, with much better balance sheets and should drive higher return capital shareholders so overall financials are one area that we would be looking to add, when we have things like wednesday, where you have a

broader sell-off in the market and it's really about taking profit from someone, the last decades winners that have become all of a sudden very, very large concentrations of the portfolio, think growth, think tech, reorienting parts of it. more to the value style and especially numbers within that balance. >> steve, i hard you say wow what were you wowing about what did you see >> sorry my mic is opened i wack look back at revisions. and this is something that is, again, made me more suspect on the payroll side of the report october when it was first reported, we were happy it was 531, now it's 648,000 for an addiction of well from the prior month 102,000 plus the prior month november was about 39,000 so 141,000 extra jobs there. this idea of counting the jobs

in the payroll is an interim process that seems to be taking a couple months under this pandemic i think betsy will back me up on this, even before the pandemic, the bls had declining response rates from employers that has declined more during the pandemic so again i'm in a place now i'm not sure what the most definitive piece of data is out there. we have homebase, ukg, adp, but this is one input and i think that in general what's happened is they have continuously undercounted jobs. they keep adding them back the net revision this is morning are 141,000 to the prior to wo months >> betsy >> yeah, this has been a problem since back with a 2008 recession. the bls has a b ias.

that's exactly what we're seeing right now. your best guest of the revision, it should be zero. in normal if they were doing it, getting it right, it's not zero. the best guess should be this month will be revised up some amount and i think that's one of the challenges so exactly as steve said, you know, they're taking a little bit longer to count. they're struggling to figure out do we need to adjust our process of imputeing data right now in order to do a better job of getting the guess right? i think it's a long-standing challenge for bls. i don't think they've quite nailed it. again i think they're dock their best i think most economists put some weight on the employer's survey as well as the employment survey it is true the employer survey is smaller sample. it's done 80% on the employer survey, 20% on household survey.

you will be adding in more jobs. that will get into something closer to what it will revise to >> heyk tyler, again, a gain of hourly earnings, it's hotter than has been anticipated. what do you think the fed will read into this >> well, certainly a hot nominal number i think one thing we've noticed in recent months, actually over the past year, is that nominal wages have actually been struggling to keep pace with big month over month inflation and so when we look at real wages, depending on what the cpi did last month, we could actually see real wages, once again, flatten the month of december i think in terms of this race between nom nam and inflation. one thing that stands out to me, if you look at surveys of small businesses, even small businesses not having a lot of pricing power.

those reporting they've raids compensation, between 60 and 70% believe they have or plan to pass that on to higher prices. so in terms of the challenge for the fed, i think it does mean continued elevated inflationary pressure moving forward. >> the markets digested a little bit more the dow is down 114 points the ten-year yield picked up 1.7%. >> consistent with what we are seeing already bank of america indicated higher microsoft indicated lower. so the economically geared stocks still seem like they're holding up well and yields going higher feeds into that similar story. you don't want to underestimate the possibility for divergent paths. we're stepping down from 7 or 8% we will go to maybe 2 this quarter. we obviously have the fed getting more active. i think the markets have a lot to try and synthesize here for now, still hasn't shaken the idea that the economy seems like it's running in a pretty good clip right now

>> i think our jobs panel today, tyler, betsy, gabriela and steve. mike and i are staying here we'll send it over to you, andrew. when we return, jim cramer will give us his take on the day ahead. you are seeing live shots of time's sque, aar little bit of snow on the ground snow on the ground >> there's no room for excuses. the living room slash yoga shanti slash regional office >ash... and this is the basement slash panic room. maybe what your family needs is a vacation home slash vacation home. find yours on the vrbo app. what does the future of strength look like? ♪ ♪ it's a personal trainer that aesses your strength and adds weight as you progress.

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. we're going down to the new york stock exchange, hello, jim cramer it's nice to see you, too. >> hello, andrew, how are you? >> how are you >> what is your take on the jobs number it seems, look, we're back to some amazing, in some ways, we're back to some sort of amazing job environment, but in other ways, we're not and then there's how back are we looking anyway >> i'm not sure how backward, omicron, page three of the household survey, i thought it was interesting, people reported they have been unable to work because their employer closed or lost businesses to the pandemic. this is what i am hearing from a lot of ceos, basically, look, we can't staff or we're looking for people or a lot of our customers have gone under. so paychecks has good numbers for small business i thought this was very mixed. geeze, andrew, this thing,

eventually this is going to be an issue like homeland security that it rises to that level. i think we have totally lost control of this thing. totally. >> jim, j. powell sees this number and thinks what and as a function of that he's going to do what? does he tide in quicker? how do you think this plays out? is market's turned red here across the board >> i think j. is a thoughtful man. i think he is saying, wait, all my friends have omicron. all my buddies got it. maybe we need to wait to see how it blows through before we make serious decisions. i remember, he is a rick russ guy that doesn't pay attention to what the hedge funds are saying i know he has to like the minority hiring, the different areas that apply he's too thoughtful to say this is important i think he says, wow, everyone has omicron. we got to wait >> jim, i'm with you i think i was talking to

somebody last night, made the point, if this was an end of the world movie like the day after tomorrow or 2012 or something, this would be the week where everybody, all the people in the white house and the administration and the senators and everybody else along with billionaires all got lifted and carried away to lifted and carried away to the bunkers and the rest of us were left here. >> i think you have to get it into the hands of the department of homeland security when they switched from ten days to five, that was a major blunder. they're going to be in play. >> i think it's too late

i think what happened this week is everybody's got it. i heard from somebody whose class in colorado is there, it is teacher asked how -- they want 20 out of 23 kids got it over christmas break it's just everybody's got it at this point >> how can jay powell take action let's just hope -- this is going very fast, that's the only thing. powell, and they all laughed, and then what happens is they adopted it.

>> this guy just crimped my whole plan everybody says he's a nice guy it's your plan, but you don't like the stock >> no, i'm liking the stock. he's stolen my plan. i'm doing twitter's plan tonight. i'll have the twitter plan that stock goes to 70. this guy has my plan i unveiled my plan in february, he's showing it in january i had a better year than he did. it's kind of like babe ruth. but you know what? so he stole the idea is he going to write me a love letter listen, i know -- send me some ice cream, send me some cones,

i'll be happy. >> jim cramer, buying gamestop we'll talk to you in a couple minutes. veways check out thilgs cnbc insting club we're back after this. growing up in a little red house, on the edge of a forest in norway, there were three things my family encouraged: kindness, honesty and hard work. over time, i've come to add a fourth: be curious. be curious about the world around us, and then go. go with an open heart, and you will find inspiration anew. viking. exploring the world in comfort. at vanguard, you're more than just an investor, you're an owner with access to financial advice, tools and a personalized plan that helps you build a future for those you love. vanguard. become an owner.

dominic chu is here. what happened after the jobs report what we are seeing is a

move higher in interest rates to a pretty decent level. that now puts you just about the level of the highs that we saw over the course of the last year back in march and april. now we are at the highest levels, let's say for those yields for the last year the banks are in focus now we're if you look at names, some of the regional banks like pnc, moving to the up side. again, just fractional moves thus far you can see the fractional moves up

let's bring in jim paulson chief investment strategist for litho group. 199,000 new jobs in december, i think we're still in a pretty strong economy the numbers are probably going to get weaker next month with omicron, so the fed has some things to think about here, with how much they want to most tidying up in the face of what might be a slower patch coming up if it continues to drop like

that, it's going to bring the end of this recovery pretty fast i don't think it's the most accurate representation. so, to me, what was interesting in that report was the labor force numbers. since september now, roughly labor force is up 810,000, and if i look at the nonfarm payroll numbers over the same period, they're you will slightly more my point is we have nonfarm payroll jobs and labor force growth in the last three months that are getting fairly comparable and the labor force has grown 270,000 jobs a month, so they're in the same ballpark, which is what we're going to have to have

that's what we need to keep this recovery alive if demand goes off, we'll just end the recovery i do think that the wage number, too, i point out actually was hot for the month, but down year on year. wrong wages are getting out of control. >> and then implications for markets here >> what does that tell you >> the real earnings are staying really firm, mike, and i think they're going to have another rise this year when i look back historically, as long as real earnings are rising, fed tightening does not harm the stock market. that's just been the case. i really think the market has more room, as you say, away from the s&p 500 large-cap growth, more toward cyclicals, smalls,

maybe even international markets if the dollars keeps falling jim, we have to run. we appreciate your take. thank you. >> thanks. the markets continues to bounce around. we want to remind everybody to watch "squawk box" on monday we have a big show lined up. that's at 6:00 a.m. eastern time we'll see you next week. "squawk on the street" begins right now. good friday morning. welcome to "squawk on the street." david faber has the morning off. yields really zeroing in on the unemployment rate, 3.9, the lowest in almost two yours potus will speak at 10:45 eastern. return of the meme trade