time to chat, but thank you for being with us. thanks for joining us. >> listen, and best to andrew, joe and everybody else on your team take care. >> you take care, too. a quick check on the markets. the dow looks like it's up more than, and, guys, we'll all be back here tomorrow see you then right now, time for "squawk on the street." good wednesday morning welcome to "squawk on the street." premark is taking december cpi in stride. it's another month of sequential month-on-month declines. our road map begins quarterback

year on year 7%, that matches the fastest pace, we'll dig into data. >> the nasdaq is coming off two gains. last week investors looming interest rates will fouel profits. there is some softening, jim, internally, although energy was a big help offsetting airfares, used cars. >> i think what i'm seeing is numbers that we thought. year over year we had 4.5% increase in wages. here we have seven that's why powell has to do something. it's override ing how much what peopler making so i think a lot of what is up

is not contemplated well in there. going out has gone up gigantically he has to find some way to do it i think it was great when he testified yesterday, yeah, we're going to take care of it he did not say lock step, not what i heard from the hedge fund managers that he would come in -- david, this is the end, we're going to kill inflation. he didn't do that. that's not his style why do they not understand his style. >> what don't they understand? >> they keep thinking he's the same jay powell when he came in, that he would tell him -- he learned. >> he did. i guess it was '19 >> 2018, yeah, look, it's

possible -- why isn't it possible that someone said, wow, that wasn't a good idea, i'm not going to do it again jay powell has shown an ability to changes, and he went to congress -- you know, he didn't call anybody a moron. >> no. dr. fauci did, but the bond market, 1.71 and change is not telegraphing any angst, but i would rather he the domino's bide, take a listen. >> we certainly don't see inflation slowing down we look at our food basket, we see an 8% to 10% increase in the food basket, relative to 2021,

we also see continued wage inflation across the marketplace as we lee forward this year. >> that's not used cars. that's the feel of this getting more >> rich al ails -- allison is not somebody i would bet against. >> you seem to think it's going to work, that powell will succeed here, that inflation will calm down, we won't be a

year from now with a 7% or whatever the number is. >> you know, every day some firm comes out and says, listen, we're just going to f-- powell says, when people start going back to work and omicron passes, you'll see some lowering of prices i thought that was very good common sense. >> they have to go back to work soon we're running out of workers at some point. we don'thave stimulus checks rolls out credit card revolving balance up $20 billion. there's going to be bills to pay, and you need a job to pay it

>> a lot of what happened is you could stay home. look at sofi, student loans, if you have to start paying for things, what happens is you've got to go to work. and they don't say that, by anyone who has ever run a country where you have two or three people get sick, and you get your premium and it's up, i don't think people are talking enough about the premiums are going up back people don't get vaccinated it does matter. is that why the nasdaq is coming off the best one-day performance in a while here?

>> i think that's right. there's people -- i thought the paypal call -- finally one i can get behind get me service now f. they want these cloud names, but they want -- they're not looking for spacs. no, they're not. even now a lot of cloud names sport multiples, but in their ability to grow earnings >> the ones that are on sales. >> we do have upgrades today of doordash and shopify i know you saw the barclays

upgrade of snowflake. >> but that's the -- i read frank sluman's book s you ought to read it it's not a page reader. >> i'm not going to read it. >> it's more his book is really about how using data lakes. >> data -- >> and slootman is known for taking no -- i don't lika lot of the other stuff that's amorphous. >> so you're still hanging with the names you hung with all the way through. >> i'm hanging with salesforce. >> nvidia. >> yes, in order, amd. >> they all have earnings. fort is not even that expensive.

>> i think ford is the one. >> how about north american bronco, suv of the year? >> that made sense i think my may have rick should have been. >> man, why don't you take your victory lap here and step to the side i mean, this is one of your best calls you've had in a long time. >> because i think jim farley is a different kind of guy. >> take a breather. >> in eye omniverse movie i'm making, ford wins. it isn't like jonas -- >> i was just going to ask think of the ev race as a marathon tesla is in the lead, everyone is at mile two, or ties their shoes, how is that positive for everyone else.

>> having the existential crisis a few weeks ago. >> do you think it was klonopin or something needed heavier? >> i don't know, but he's okay he loves ferrari, and clearly loves tesla. do you think tesla is about 21. >> they're like in the keys, you know, i think he stopped it. it's just a sense, when i read him, that he's having the time of his life. no other analyst is having fun he's like, you know -- he has personal, charisma, the fireside

chat with quantum scape -- he needs a sidekick. >> ford is up 17% this year, will you lucid is up almost 20%. maybe somebody will take advantage of that. >> we have talked about rivian -- >> when was lucid one of the coolest thing. >> it was. still got to fix this and that, i feel like i need to take another ride >> it's a luxury ev. marc benioff, what is his favorite >> he owns them all? >> yeah. other buys

do they have roads in hawaii where he lives >> i can't reveal that. >> but you go back we sold -- it is our biggest position. i don't think it's valued where it should be, but most importantly, ford has this under farley, if they don't make money, they don't sell it. you look at the mustang mach-e, they're sold out they're making more. if you put your name down to get the f-150, they selectively called some back and others because they could make them it took me 11 months to get my maverick. >> look at phillips this morning, talking about -- i think it was down 14. >> i was shocked that -- i mean, there's a lot of companies that

had, like whirlpool -- phillips is the one that got nailed >> i don't know the answer to that that's a good question >> where were you yesterday when boeing got all those orders? >> i wasn't anywhere meanwhile, airbus is out-delivering them, three years going. >> boeing had good numbers they sold 737 maxes. >> you're the one who brought up boeing here, not me. all right? >> he brings up ferrari. >> but you'll hang in there. >> boeing is making a comeback. we're going to get to a bunch of calls, including one in the aerospace as we see a downgrade of love, lyft, dash,

as the cpi hasn't exactly spooked the market entirely. more "squawk on the street" a mentin mount everest, the tallest mountain on the face of the earth. keep dreaming. [music: “you can get it if you really want” by jimmy cliff]

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

this is the worst setup imaginable then you have charlie scharff. i'll bet you he doesn't give you a single thing that's good >> no. >> so now you have the big set up, almost back to where you were in 2018 charlie scharff will saying we've made some changes, we have a lot of work to do, we're we still have to deal with our technology, and we haven't solved the government regulation, how is that a good story? >> most of the upgrades have been about rate sensitivity. it's citi on b of a saying they're more leveraged to the

long end, and they're going to benefit more. >> i think that's in the future. i think he has to deal with the past >> they're starting to be which as you might expect, on weights, i don't know where they have >> have you walked outside lately >> thing you quiet again. it's going to be a mixed

picture. >> jeffries went and ruined paypal there was a guy on brian sullivan as show, and right ted the downgrade hit -- >> you're talking about jeffries's research. >> let's go back. >> 38 to 45 hundred people, we stalked about they have the operating so we'll see 2022 certainly seems to be -- perhaps a bit more challenging.

>> in mexico, jane frazier certainly continues to move ahead in the plan, what do they call it, strategic refresh is w what. >> that's why i brought it up, and which vikram was running the bank pre-frazier i remember he was asking, what should we do to show how international we are i said, why don't you hold an analyst meeting in mexico city they are actually thinking about it it was so huge, but the problem was i was doing some business in mexico, and i wanted to use citi, and you couldn't

>> they're. >> citi was so. >> i have to tell you that the, it absolutely nothing. >> $133 billion market value, you know >> blackstone is bigger than city >> we'll talk more about the. >> we'll get cramer's mad

dash, and as futures are off the morning highs.

nasdaq has put together back-to-back gains for the first time since september 27th. asia traded well overnight actually some light inflation, but we're still wrestling with the cpi here opening bell in just over five minutes. earn about covid-19,

the more questions we have. the biggest question now, what's next? what will covid bring in six months, a year? if you're feeling anxious about the future, you're not alone. calhope offers free covid-19 emotional support. call 833-317-4673, or live chat at calhope.org today.

your shipping manager left to “find themself.” leaving you lost. 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 amazing. jerry, you gotta to see this. seen it. trust me, after 15 walks... gets a little old. ugh

>> announcer: the opening bell is brought to you by - let's coup you down to the opening bell, on what jim and i like to call hump day here, wednesday at the nyse. doordash -- >> doordash, evercorp says it's time to buy. i like this call the stock has been in free fall.

and they're saying it's delivering much more than just food they and international expansion coming through wolf. i think this is a well-timed deal the ceo has joined the board of meta, and i think that he is going to be a -- remember, he can stand up toe to toe to an anyone. >> what about the restaurants themselves given that you're a restaurant owner -- those nobody can call -- you guys make more money, don't you >> well, doordash -- any of these people have saved, if you have no exposed outside place -- if you're inside -- i'm sorry, i'll just say it, inside it a

recipe for covid you don't know who has it. i like to think you were tested -- >> you're open, though. >> we are open. >> things are good doordash, they have offered a very good plan for restaurants. >> but they also were big in the suburbs. >> yes, i used doordash at home. >> i think tony xu is remarkable i was very, very critical of him when they started. >> you know, that facebook board, while not filled by any mean with people who are -- paypal, dropbox, travis -- cfo

from estee lauder is very good, but tony is very, very smart guy. >> founder and ceo who controls the company -- [ bell ringing ] >> what, like your phone in the middle of the soliloquy the real-time exchange, it's ice data service, and it is nats gab, beauty for freedom. >> why don't they go higher, except for biogen?

this is a runaway train, frankly, ever since the fda approved it. ten people, very respected people, i didn't like their decision, three of them question i remain convinced that the winner will be lilly that's down a lot. david griggs gave a very good presentation yesterday at jpmorgan and said, basically, look, our tests are very good. they have a much bigger test, they can roll back plaque, guilt by association, but i don't think he ever intended to charge the exorbitant prices that biogen jarges for a drug that as specious probabilities. >> there's a lot in healthcare today. quest down four this morning humana buying a billion of the $3 billion buyback.

>> i think humana is overdone. i think that was an amazing opportunity to buy unh i lien centeen, i think that group is very, very solid. of all those, i think unitedhealth, that's the winner. they're not going to have that problem. >> how about pfizer, cutting some sales staff because they believe physicians are not going to want to take meetings from reps in person. >> how much money does pfizer have to make, david? >> what? you know, pfizer and abbott -- abbott is making a fortune off the binaxs. >> we have a pile of them at home >> how much have you tested? >> i don't test anymore.

if i don't have symptoms, i'm not tested -- >> you don't test? i tested three times this week. >> now that cnbc knows that, they'll probably march me out of the billing and force me to test. >> why don't you use your binax -- >> i will if i have any symptoms whatsoever. >> i didn't have symptoms when i gave it to carl. >> we had barely any symptoms at all. >> i think wentz had it. he played the way he did the last year for the eagles these players who are nonvaxed and got covid -- >> that's not good. >> that's not good. >> exactly. >> you didn't even comment on

the firing by the giants. >> of joe judge? >> that's five coaches. >> they're not executing very well. >> i've been comparing teams to players. >> it's suboptimal >> i think comparing the firings to our business, and flores was, like -- flores was doing well. that was shopify today we have an upgrade of shopify. >> i agree. >> flores is not -- >> that was not right. i mean, come on, i'm sorry, that's an indictable offense, taking that last time-out on your own 18? i want to talk -- >> are you going to get directv/dish >> yeah. >> oh, man >> why does that upset you >> the surprise factor would have been great. >> dish shares are up.

they were up yesterday as well it's funny, there was talk around -- there was a desk, at least, one broker who was talking about it they didn't put anything in print, the idea that dish and directv are having talks about merging. the post then writing it up saying there are talks don't know whether there are or not, but certainly on the face of it, it makes sense tpg, when it dispatched that skeetit's a

big analysis, will somebody give them big money, because it is not cheap, even though denver whatever they're going to focus, it costs a lot of money. i think he hoped the stock price would go up. that hasn't been the case, but again, structure of a deal with directv, do you just merge it in, if he wants control, would he really monetize not to mention, getting a deal done with charlie ergen is probably warm-up most difficult things to do there still mike some antitrust, though it's hard to imagine, and there's going to be pressure on that business that is the future for dish, which is mainly creating a 5g nationwide network, which they have said they will go, and raising enough money to fulfill that promise.

>> it's so expensive. >> yes yes. >> i mean, we have the cash flow to build it out the way that verizon does. >> that's the key point, jim there are ways to do things that aren't perhaps as expensive. you don't have to be quite as robust in certain areas, by it's a lot of money,enes at the lowest monies -- it depends on who. i haven't had a chance to talk to mr. ergen, and again, no comment on whether -- i thought he would have sat down and done something. i've always enjoyed that i enjoyed his company a great deal i'm glad i never had to negotiate a transaction with him, though. >> for instance, the apple story, came and went >> what's the point on that? >> i think this football package is worth a fortune. >> i see >> we're talking about the number of people who play

fantasy in this country is extraordinary. the fact is you have to watch even the worse fourth quarter there is if you're in fantasy. it's a pretty good business. you have to watch the ads, there's no choice, you have to find out if it's a garbage play, that -- the idea of -- people don't talk about the amount of money that the -- why football has been so good i think it's fantasy. >> no mystery why the league has embraced it. it keeps you watching, no matter what the score is. >> yes. jim, they're buying the workdays, the data dogs, i get tom lease had an interesting point on d-mark sequencing, he says deleverages because of the fed is nearly done, do you agree? >> i think that it can pause

i don't think it's done. it lets these stocks go up that's a good one. tom mckinnon,ist the number one way to identify yourself, a passport essentially the way you get into an organization is you pretend to be someone else. they're losing a ton of money. i don't think it's going to come back to its high i just don't i think that salesforce can, because everyone thinks that the acquisition they male -- my understanding is that slack may not be that great of an session, but my understanding is that's not the case my understanding of the chart is that it's miserable. there's too many people looking at the stock saying i don't want to touch this stock. i think that's a shame that's not the right attitude. you have to look at the fundam

fundamentals even the snowflake that we mentioned, it's 367. >> i wouldn't worry about snowflake. frank will not let you down. he is just too much of a of a visionary about the cloud. everyone loves him, by the way, even though he's a tough guy what he did was service now -- >> he created a lot of value. >> he's a value creator. he usually doesn't get into these larger companies, but this is his baby. if you read the book -- >> we already talked about that. >> what are you reading. >> right now >> "private kingdom" about exxon mobil. >> you're doing a special -- >> stop. >> what did i do >> i'm you trying to learning.

huge enormous tomes about corporate america, they're interesting. >> it started with our people. that's what they call them, who can best help drive our mission forward, and now they say they've seen what flexibility looks like and trust and allowing their team to do the best work, create a workplace that's more inclusive and equitable, so they have a primarily remote apreach

>> robinhood needs to get its act together and get its clients to stop trading dogecoin and options so much. >> i was working on a piece on how to fix robinhood i gave up. >> do you think draftkings and robinhood will ever merge? >> the problem with draftkings is there's 17 other outfits. >> am i betting on the game or -- >> no, because -- you mean in terms of the game-ification? >> yes, yes. >> i met with a very frank 19-year-old, when i said why did you go to robinhood? >> he said i got tired of candy crush. >> i remember that i remember that. >> that was a tough interview. >> dow is up 90 to start the

morning. still to come, the ceo of novartis let's check on bonds, though obviously -- we're hanging in there at 172 with that, the s&p came off of 4740 we'll be right back.

you could fret about that email you just sent. ...with a typo. aaaand most of the info is totally outdated. orrrr... you could use slack. and edit your message after it's sent. [sigh of relief.] slack. - [narrator] introducing wthe grubhub guarantee:

our promise to deliver the food you love on time, and give you the lowest price, or you'll get $5 off your next order. meg tirrell joins us with a special guest. hey, meg. >> hey, carl, the ceo of no varietition joins us i want to start by the news you have this week by a potential covid -- kind of similar to the antibody drugs

>> thanks, meg it's a novel technology that can target the covid spike protein pretty consistently. speed up, recovery time, and have a 79% reduction in hospitalization and -- so right now we're moving toward a filing to begin and the real vision is to have a medicine that can be used hopefully independent of what strain can be used in the

future >> what kind of dose level -- it's a unique manufacturing process versus antibodies. it using bacterial production, which allows -- actually cell production, which allows us to scale to much larger volumes faster, also higher yields we certainly think we will be in the millions of doses, more than a million doses. really now the question is how fast can we bring it forward, assuming we get regulatory approvals and necessary support. we're certainly doing everything we can to skate up as soon as possible.

certainly we have learned that pandemics are likely to be with us in one form or another. certainly coronavirus is the idea here is independence of the time of coronavirus is called the main protease and it would be effect ive so we've been working on that for about 18 months. we're working towards getting that into the clinic and hopefully over the coming year,

but that would give us an option for future pandemics i think both with the first medicine, as well as this one, provide solutions to the world >> a longer-term view is something i think a lot of people would welcome on the antibody drug for alzheimer's disease. you and i talked after june and we noted there's a pathway, perhaps for drugs in neurology and maybe this is something everybody in the industry should be looking at. does the strict coverage decision changing the opportunity, you think you saw there from the fda at all in neurology? >> well, i think it's a unique set of circumstances we have here one that certainly people who have been in the industry have not seen before.

where you have a set of trials, and weren't always going in the same direction and data that's somewhat hard to interpret i think what it points to is even in neuroscience, we need robustly done studies that demonstrate a clinical benefit for patients to want cover a medicine and points to the challenge we face where there are moments the regulatory has a view and this is something we've contend would in europe for many years in general, we'll be promoters -- i think this is a pretty unique circumstance with resnookt data and now the outcome from cms >> all right we've got to leave it there but we'd love to have you back because there's a lot more to talk about so, thanks for being with us >> thank you, meg. >> carl, back to you

>> our thanks to you a reminder you can get in on the new cnbc investing club with jim. or the qr code on your screen. be right back. what the world needs now... is people. people who see energy a little bit differently. where a switch to cleaner power means a more resilient grid... ...with renewables and gas power providing energy whenever it's needed. because seeing a more sustainable world isn't far in the future. we're building it... now. ge. building a world that works. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations,

like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq

it's time for jim and stop trading. >> how about a nonheadliner? from -- he is from bio mari flrks. stock's not up nearly what it will be. so, people ought to recognize that maybe this is the star of the show >> got to give you a shoutd out because yesterday you called the ion rates normalizing and does continue >> yeah. i mean, i think it can people have to recognize this was a rate tantrum and it was not followed up by a federal reserve chairman, who said look -- he was clearly not tone deaf to what's going on in the rate market. what he cares about is

stability. he just wants workers to make a lot of money and certainly more than the inflation rate. he's not doing anything drastic. i think he knows the numbers are going to come down and when they do, you're not going to have to have these stories the robin hood story >> who believe that is going to actually attract talent. complete flexibility to work wherever you want. >> be paid in deutsche coin. >> we may be dinosaurs, my friend >> we are not dinosaurs. >> they ruled the world for 300 million years. they went on a lot longer than most likely homo sapiens are going to that said how about the market >> a lot of volatility in this year is that going to continue? we're back to almost flat.

>> i think it's going to be an exciting year. periods where people are go tag say they have to take action they're behind the curve and the fed is going to do the right thing and those guys are going to say he's wrong. powell can't please anyone but me >> cdc, powell, two different animals. >> he's no deutsche coin fan attic. devyn was the number one performing stock, a great story last year. and it's all rick muncrief we have to return money to shareholders he is a remarkable man i love the guy >> we'll see you at 6:00 as we're holding 47.40

your record label is taking off. but so is your sound engineer. 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

good wednesday morning welcome to another hour of "squack on the street. got the s&p close to a one-week high as cpi comes in a tad warm.

but some of internals suggest maybe sequential cooling >> that's right. we're 30 minutes into the trading session. we're going to start with door dash ever core upgrading the delivery name saying it has strong fundamentals and at an attractive valuation shares up 3% facebook parent, meta platforms, meaning door dash's ceo to the board of directors, the first appointment in nearly two years. and medicare agreed to only partially cover the alzheimer's drug we're going to discuss that further with the cms director. that is coming up later this hour plus, banks continuing their strong start with ally financial announcing a 20% dividend increase also authorizing a $2 billion

share repurchase program >> meantime, markets getting a boost from this morning's cti data morning, bob >> the last few days, we've rallied almost 100 points since powell's testimony around 11:00 yesterday. powell did not aggressively push running off the balance sheets said it could be next year we've moved up higher today. about in line with expectations. hard to believe 7% a year is in decline. we haven't seen inflation like this in our lifetime so, nobody has anything to measure it against i think the market is relieved it wasn't higher than expected tech stocks two-day rally, kwielt noticeable off of the lows and the middle part of the overall sectors.

the cyclical, energy, industry, bank stocks holding up very well into earnings season morgan stanley's at a new high and utilities in health care and consumer staples are lagging here this is sending a message that the overall economy is doing pretty well. with oil at 82, we're back to preomicron levels essentially. this is all old school oil names, exxon who would have thought that but hal burton all hitting new 52-week highs. the market narrative is still in tact about the economy the economy and consumer are strong earnings and margins are going to remain strong going to the first quarter. at least that far we can see omicron is not derailing the recovery that's the key story here and the big wild card is inflation the fed.

so, stocks have a dilemma and it's primarily around inflation and the fed. the problem is what do you do with technology stolks and what works when rates rise? nobody wants to own bond funds but can you put them into stocks i think the problem for tech is that this two-day rally doesn't change the fundsmental dynamic and how far -- they're dropping but have they dropped enough we talked this week about the new lows on all the -- roku, zoom we're off the lows but don't forget that. cathy woods down 45% 3d printing, social media. sports betting even. cloud computing. exactly one year ago today still hasn't significantly

recovered and that's the big dilemma, not apple and microsoft. but everything else people are going nuts about people are talking about bank loan etf or senior bank loan funds. black stone has one. srln they do floating rate high yield stuff. so, the problem here, david is nobody wants to own bank loans but here you've got exesh poer to high yield. it's short term but you can see this is tough. but it shows how desperate -- i can tell you number one question i get emails about is what do we do and they're reaching for all sorts of unusual corners of the market, for example senior bank loans.

back to you. >> they're also reaching for read they raise 3 billion a month it potentially can return four, maybe 5%, maybe a bit more sold by high net work brokers to their clients. to your point, looking for some yield. >> that's right. there's all sorts of things throughout triple net lease etfs. which argue they're going to hold up better the tenant basically pays most of the expenses and any of the costs get pushed off on to the tenant we can talk about that more in the next couple of hours >> yeah. spend some time. they don't trade, by the way let's move on. thank you. and let's bring in cio for u.s.

equities always good to have you on the program. your funds put up another very strong year. and last year you were overweight at the banks. started out pretty well. how you feeling? i think you might be on mute want to try to unmute. see if that works. no carl, i'm going to turn to you they have, as we pointed out, been overweight, the financials and the banks, which we've talked about and we're going to get earnings as the week goes on >> it's a good time to talk to

bill biven be interesting if it's short poved or will there be plenty of oprtunities? >> get bill working fo ♪♪ ♪♪

what does a foster kid need from you? to be brave. to show up. for staying connected. the questions they weren't able to ask. show up for the first day of school, the last day at their current address.

for the mornings when everything's wrong. for the manicure that makes everything right, for right now. show up, however you can, for the foster kids who need it most— at helpfosterchildren.com new year, new start. and now comcast business is making it easy to get going with the ready. set. save. sale. get started with fast and reliable internet and voice for $64.99 a month with a 2-year price guarantee. it's easy... with flexible installation and backing from an expert team, 24/7. and for even more value, ask how to get up to a $500 prepaid card. get a great deal for your business with the ready. set. save. sale today. comcast business. powering possibilities. . welcome back the biden administration has a big push in testing.

>> the cumulate vr 10 million additional free tests they'll be shipping to schools every month. that's 5 million rapid tests they're making available and capacity for 5 million pcr tests and they'll deploy units to get access to testing as we get set to meet a new head of the federal testing program, a johns hopkins epidemiologist and out there now taking charge of the testing front. this as, of course, the bind administration is talking about soon getting reimbursement for the rapid tests for insurers as well as getting the website up and running where they can order rapid tests to be mailed to their homes. as we're seeing capacity increasing dramatically and getting up to more than half a billion in march this according to the group that tracks these things.

that up from november. at the same time we've been hearing should we be swapping our throats? stead of noses because of the way omicron presents the acting fda commissioner was asked about this yesterday in a congressional hearing. she said no. >> people should not use swabs that are designed as nasal swabs and try to swab their throat they may stab themselves, okay that would not be good >> so, we're being told not to do that. quest diagnostics saying turn around time still two to three days and they can now stretch to four or five days

saying a lot of eyes are being raised some workers are get there getting all the covid tests they need really kind of illuminating the inecweties in the country. >> a lot of haves and have nots on testing you're right thanks covid continues to impact the airline industry delta battling the nation's largest flight attendant union over covid seek leave as united says 3,000 employees test positive for covid transportation analyst joins us. good morning >> good morning. thanks for having me >> united had the remark about newark operations. they cut flights to shanghai on covid's restrictions is there any way to think the corner or guidance isn't at risk >> yeah.

we're coming out fairly strong with something like 18 or 20,000 i think i saw an estimate as high as 4,000 due to a combination of weather and staffing shortages and then we'reheading to january with more staffing shortages i suspect the airlines will be coshess when they report earnings american is next week as american and delta is tomorrow i think it will be the typical march will make a quarter but january is, i think is going to be a tough month really the first six weeks of the year are going to be tough and we don't have business traffic coming back. we don't see it coming back at all to prepandemic levels. >> we talked about that for a while. the market loves to look ahead and if you are working with the

assumptionthat case declines are going to be coming our way in the coming weeks, what does march and april and june look like will shares reflect that optimism, perhaps? >> and you're kind of seeing that, carl you're seeing that demand is going to be strong i think like midfebruary around psz's day weekend, when you start to get into spring break, that's usually a pretty strong period of time. and i think we head to eastern passoverhaul days. you see pretty good strength, especially between boston, new york, and florida. and i'm not ready on the idea that we're going to have a strong north atlantic this summer that you'll have demand from 2020, 2021, and this year. and i think countries realize they have to think about the

tourist dollar and opening their borders again and i think we'll see a pretty good strength in those markets. and we'll start to see that with forward bookings in the end of april, beginning of may. that's when people start to book you may recall -- i'm sorry, morgan wereio going to say something? >> no. i have another question for you. so, finish your thought and we're going to jump to air frait. >> you may recall, end of april, beginning of may, greece announced they were oipen for business and many went to greece last summer. i think the same thing will happen this summer with other countries. they saw how successful they were in the tourist dollar >> i got to think more and more people getting covid we're starting to plan a family vacation now because that risk is out of the way, at least for

the near term. i do want to shift to air freight because we do know so many of the passenger aircraft do carry cargo in the belly of the planes on a day where we're getting the hottest inflation, how does this speak to ongoing issues around freight and supply chain and could this continue to last longer than was previously expected >> i suspect it will, morgan i think we're going to see the supply chain last through the end of year and 2023 to your point, and i think carl mentioned that china was turning away passenger sar craft they've been complaining about that china shuts down when people get covid. they're getting ready for the olympics

the u.s. airlines had over 100 flights per week and we're down to less than ten and you mentioned united cutting capacity this month. they're not big of course. to your point that we are definitely going to see very strong demand from fedex for ups. i think straight through 2020, well into 2023 for sure >> you said something i want to come back to, which is you don't see business travel at all coming back to prepandemic levels what i wonder is, is that being reflected in whatever elgs you want to do to figure out where

value should be? is that being reflected in the stock prices right now >> i don't know. partially it's being reflected because i think more people are coming to that conclusion. some oaf the ceos have been on your show talking about travel is coming back to mid2023 and our view is we probably get 80 to 90% of the way back the short-hall trips, one-day trips probably go away and don't come back. i think you reported 70 thousander attended cvs, which is down from prepandemic but still a respectable showing. it shows you that people want to get out there. it's just that restrictions and not knowing what's going to

happen with the different variants hopefully we get to a point where everybody recognizes the coronavirus pandemic and they get comfortable about returning to the office and then they feel comfortable about accepting visitors we feel comfortable traveling again as business. to me, david, it's really hard for people like myself to say i'm going to fill in the blank for my vacation. and then tell my boss i don't feel comfortable traveling for work to me that doesn't compute >> maybe that's one reason we'll have you onset some time soon. always a good way to see you >> thanks. >> as we head to break, shares of crocks are on the move. calling the shoemaker one of the

most impressive consumer growth stories for years to come. those shares are up more than 5.5% right now stay with us

welcome back to "squack on the street." we kicked off the hour talking about the drubing those stocks have taken two space stocks soaring amid analysts initiations robt lab shares are lifting off after they applied a $17 price target to rocket and other spacecraft, calling it a, quote, spacex alternative shares are up 5.5% right now meanwhile, goldman with planet labs, arguing the satellite operator is the leader in commercial earth observation with a, quote, massive opportunity to sell into many industries those shares are up almost 12% right now. and industries thinking energy insurance, not just defense. both names were down big something like 30s to 50% ahead

of the bounces we're seeing today. another name to watch is newly pu public virgin orbit, which is down 2%. this is after a huge 31% spike in trading yesterday the other richard branson founded a space company preparing for the next orbital mission, the above the clouds launch, which is now targeting tomorrow afternoon it was delayed by a day and trading well above $12 a share pretty notable given some of the movers we've seen in this area of the market in reeceants weeks. >> time for our etf spotlight. as we look at semis. ticker xsd, and ambarella upgraded to overweight, says they have an attractive

valuation after a recent pullback as we got a bunch of target increases as well for amd, marvel ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq

welcome back and here is your cnbc update at this hour. the lawsuit against prince andrew will proceed. a federal lawsuit rejects the bid to dismiss the suit. it accuses him of sexually abusing him oand being traffic by jeffrey epstein prince andrew says he has no recollection of meeting her. prime minister boris johnson responding to calls for him to resign over attempting a 2020 outdoor party with his staff while the country was in a strilkt covid lockdown >> i believe personally this was

a work event i should have recognized that, even if it could be said technically to fall within the guidance, there would be millions and millions of people who simply would not see it that way. people who suffered terribly, people forbidden from meeting loved ones at all. to them and this house, i offer my heartfelt apologies >> and a u.s. official says russia did not bring, in her words, anything new to the meeting with nato and did not reject further discussions about ukraine. i'll send it back to you >> thank you we're going to try now to bring back joining us on the cnbc newsline good to have you again >> thanks for having me. and i'll start with the same question, which is financials have had a strong start the year certainly the banks have

you're overweighted. give me your feel so far of what you've seen and what you expect. >> we think the banks in general are selling cheap compared the market that they've typically sold at and they're generally better businesses today. you look at a company, our largest holding that announced their $2 billion buyback this year that's more than 10% of their outstanding shares they can do that at the same time they increase the dividends, grow the loans on the balance sheet and continue to strengthen the balance sheet ally sells at 7 or eight times per earning. it gives you excess capital you can grow value with. >> you had a great year last year in many of your funds out performing the s&p, even with growth seemingly still in favor. now we have potentially the rotation

any sense as to how this year's going to go or it doesn't matter to you because you're a long-term investor >> this past quarter we talked about how ironically, one of the best strategies for the last decade was to buy really interesting companies regardless of the price the result has been the multiple of high growers is so much higher than the cheap stocks today. typically that number is like two to three times as much so, cheap stocks are 10 times earnings and maybe 30 times. today it's more like the cheap stocks are 10 and the high growers are 70 ory portfolio is well positioned for that with the majority in traditional value sectors like banks, consumer stocks, most of which are trading around 10 to 12 times earnings level.

>> bill, you know, last year a lot of hedge funds underperformed the market, if they were even able to eke out a gain and often those were result of the private companies when you look at your performance, the ability to out perform over long periods of time, do you get frustrated by the asset flows who constantly tell you after a year like last year, we protect you in a bad year >> sure we get frustrated by asset flows whether it's to hedge funds or index funds, our fund has had a great long-term track record we attribute that to the very long-term time horizon we take a private equity approach to valuing public companies, thinking what they could be worth seven years from now. what pieces of the value the market might not be focussed on that will emerge over time and that patient investors can take

advantage of that. we've got a good mix of traditional value names that are single digit multiples and some of the names where gap accounting is not doing them justice because their growth spendsing is coming through the income statement, making it look like an artificially high ratio. i think that's why we were able to do so well last year in a market that traditional value investors didn't do well in. >> when we talk about the recent pullback and reversion of the mean, which i know you touched on as well where do you see the opportunities in reeceants weeks and given the fact you've added names to your funds and looking into 2022 and this reshuffling of the market, if you will >> well, our bickest overweight is in banks. and we think they're better businesses than they've ever been and with the market, it may be 22 times earnings.

most of the bank stocks we own are selling at 10 times earnings and will benefit from higher interest rates we're overweight in energy stocks eog, apache, diamond back. we think they're pricesed ten times earnings if oil falls back to $60 a barrel. currently it's at 80 the pe is much leer if prices maintain and there are these names kiejd of falling between the cracks between the hypergrowth investors and value investors like a alphabet, facebook where accounting doesn't do them justice for their venture capitol investments and if you make adjustments for that, we think we're paying less than a market multiple for the base businesses, search for alphabet and blue facebook and instagram we think are significantly better than average businesses at a below-average mark multiple

so, we think there's lots of opportunity in the market today. >> when people spin out long-term risks, they talk about threats to the dollar as a reserve currency, they talk about political unrest leading to social unrest or covid itself as a reminder of black swans and public health. does it make it harder to be a long-term buy and hold investor? have you had to tighten your window over time >> i think ironically it makes it easier because most of the things you talk about, when you think what is the company going to be worth, most of what you talk about is transitory relative to a time frame that long covid's a great example where stocks got priced -- specific companies got priced because there was never going to be a return to normal and by thinking to a longer time horizon, we were able to take

advantage of what we felt were very long overreactions and positioning for a reopening trade, which we thought was inevitable if you think out five to seven years i think that's part of what had us positioned so well in the past 18 months >> fine ail, let's end on netflix because it falls into the category you were describing in terms of how can that be value? what you do there is adjust the income statement for customer acquisition costs and the strategic underpricing of subscriptions. you think they're underpricing even now >> absolutely. and we've done surveys with people, sometimes just our employees. other times broader than that. the netflix subscription relative to almost any other subscription always rates as the average individual's favorite subscription, the one they value most highly and yet the price

per month of netflix is less than almost every other monthly subscription service so, we think the value of a netflix subscriptions to the average customer is significantly higher than what they're paying today and by underpricing the product, netflix is able to grow scale so rapidly that it's very difficult for anyone else to catch up. they effectively get to divide their prooduction costs over a much larger denominator, making the cost per subscriber lower than it would be for any other video service. we think netflix is still well positioned and an inexpensive stock if you think of the adjustments to the income statement. >> glad we could finally get you on appreciate your time thank you. >> let's turn back to today's cpi surge and talk about the number that's the highest we've seen in 40 years

i mean, the markets seem to be looking right past because believe it or not this was largely in line with expectations maybe that's the case on wall street but main street a 7% year over year jump again in some of the key metrics, i got to wonder at a time we're talking about the strength and hegts of the consumer, with inflation growing higher and faster than the wage we're seeing, at what point does this begin to drag on the economy? >> happy new year. i think you can argue that it may start showing up in the near future and by that, if you look to last year, as you know the whole story was about strong personal income, government transfers to households so, income held up in nominal and real terms as you point out that may be shifting

and if you inflation adjust disposable income growth, real disposable income growth has been turning negative the past few months i don't think any of us think that will continue but for the moment, you could argue it could have a dampening effect on spending as we move the early part of 2022 i think where most of us expect inflation to come back down but we expect labor market conditions to remain tight so, we think the mix will still be for solid wage growth and some reversal in inflation in the first half of this year. right now it's likely to be a bit of a modest drag on household spending >> it's interesting we saw the 10-year treasury yields test that 1.8% mark to start the week now it's come off from there in the near term, can we say that rates have potentially peeked here? why are we seeing a buy in back

into bonds in the midst of data like this? >> i think what you saw coming out of the end of the year, we had a very large repricing in bond markets what i would say is they seem to be pricing in three hikes out of the fed this year and balance sheet run off to begin this year and so, i think that repricing that puts the 10 year higher we think the 10-year will be moving higher over the course of 2022, pushing towards 2% as the rate hikes become actualized, we think the fed will start lifting rates in march and think the balance sheet run off will begin in july there's room for the yields to go higher. what you saw in the first part of this year, the long end of the curve with markets taking on board, not only are we going to get rate hikes out of the fed but balance sheet run offs we think things are fairly priced where they are.

>> i wonder how key you think vehicle prices will be there's forecasts that they could be falling out right by the middle of the year could that be offset by something else something related to more intrenched concerns? how important is that? vehicle prices >> i think it's crucial to most forecasts that inflation will be coming down over the course of the year so, a lot of the increase, that sever% there's a gasoline component gasoline prices up roughly 60% year on year we have another half a percent increase on this month the majority, when you look past food and energy, the majority of the rise in the remainder nofflation has come from new and used cars. household apliengss, big, durable ticket items we suspect and i think others expect the same that as some of

the supply chain disruptions go away and chip shortages alleviated, used car prices are a key candidate for a big reversal this year i think we're factingering that into our inflation forecast. i think it's very key that, as the economy continues to recover and learns to live with the virus over time, but the trajectory is one where each subsequent wave and prielss is something the conomy can work through a little better. as that happens, you should get a reversal in some of the durables prices thats have seen large run offs and used cars are the prime candidate. >> thank you for joining us today. >> thank you >> coming up after the break, we're going to talk to the cms administrator, talking coverage of at-home covid testing and a lot more we're off initial highs of the morning. don't go away. lti-vitamin. at new chapter. its innovation

organic ingredients and fermentation. fermentation? yes, formulated to help your body really truly absorb the natural goodness. new chapter. wellness well done. cody! hi!! hi! how are you? i'm good! i'm crocheting. i see that. started off as a hobby. kind of snowballed from there. and alex, i don't want to stop. well, i don't see why you should have to. let's set you up with a side gig savings goal on the u.s. bank mobile app. this way, you can turn it into your main hustle before you know it. you're my hero, alex! what are you working on now? pool cover. that's fun. oh! i made my wife a bathing suit. oh, did linda like it? she did not. oh. you should see what i made for max. max! look at him. he loves it. the confidence to make your dream a reality. u.s. bank. we'll get there together. (vo) this year, t-mobile for business is here to help you hit the ground running.

when you switch to t-mobile and bring your own device, we'll pay off your phone up to $800. you can keep your phone. keep your number. and get your employees connected on the largest and fastest 5g network. plus, we give you $200 in facebook ads on us! so you can reach more customers, create more opportunities, and make this the best year for your business yet. visit your local t-mobile store today.

welcome back to "squack on the street." and joining us now with a special guest, bertha. >> and yoining us is the administrator for the centers for medicare and medicaid. thank you so much for joining us >> thank you for having me >> two big announcements this week from cms. one about the coverage of home tests or covid testing and the second about the coverage of the bio gen alzheimer's drug and i want to start there. you are limiting the coverage, issuing a rare limitation called the coverage with evidence development. what went into that decision >> thank you so much, again, bertha, for having me and giving me the opportunity to talk about this exciting development. as we know, alzheimer's is such

a heartbreaking disease, both for the people who have it as well as for the families that care for them. it process we go through at cm stoorks determine what drugs will be covered is an evidence-based process we have responsibilities of making sure that it's appropriate for the medicare population we had two national stakeholder meetings and have our team of clinicians and scientists reviewed the evidence and decided that medicare to cover both -- as well as other drugs within the same class within the context of a clinical trial. >> you have a number of the nation's premier health systems that have said they're not going to provide to their patients you also had the aulds hiemer's

association say they questioned the need for this for all sorts of patients but you do have critics. us against alzheimer's came out saying they felt cms was taking a different tack on an fda-approved drug than they would for say cancer, hiv and they feel this might actually be difficult for older folks experiencing dementia and alzheimer's. what do you say to that? >> i would say we take our role seriously. we want to make sure that people receive coverage i would add that this is a proposed determination that we have a 30-day comment period we welcome stakeholders, inviding comments and we will release a final determination later.

i would again emphasize that we want to make sure it's appropriate for the medicare population and that's some of the reasons why we've outlined our team outlines things we wants to see in the clinical trial. making sure that the population reflects the medicare population, an important conponent to the trials we wan want to see moving forward >> one of the things we talk a lot about is making sure that cms promotes health equity and one of the dwrarias we've seen difficulty has been on home testing. this week you issued rules that they must cover home testing, at least eight tests, individual tests per person per months. yet, the insurers got the rules on monday and talking to them yesterday, they were still trying to develop just how they were going to do this.

are you worried about how this rolls out, given it begins on saturday >> it does begin very soon as you know the president announced this in december and since then our team has really been trying to work with insurers, listening to their concerns and rules that we set forth. we are really working around the clock as an administration to address the covid-19 pandemic and feel like testing is a big part of that we are really confident in our strong relationship with insurers to help them implement this guidance knowing how critical it is for people to get access to tests. so we're really encouraging them to develop partnerships with pharmacies, which are the back bone of our healthcare system in many respects and if they're not able to do that, people can also have a process where they get

reimbursed by their insurer and that, again, starts, as you said, on saturday january 15th chaquita brooks-lasure thank you i hope to continue this relationship and have you on again >> pleasure to be here have a great day >> thanks. carl >> bertha, thanks so much. coming up on "techcheck" this morning we'll talk to tesla co-founder and former ceo now running redwood materials. some expansion plans as the ev industry continues to boom in the new year that's coming up in the next hour we'll beig bk. rhtac 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. age before beauty? why not both? visibly diminish wrinkled skin in... crepe corrector lotion... only from gold bond. - [narrator] introducing the grubhub guarantee: our promise to deliver the food you love on time,

and give you the lowest price, or you'll get $5 off your next order.

welcome back to "squawk on the street." i'm kristina markets are off their session highs but consumer discretionary stocks are hanging on to gains right now and a few recent laggers are outperforming that includes athleisure names like nike and under armour. the auto part stocks are also higher, though held up slightly better than the rest of the sector through the recent volatility.

much more on "squawk on the street" ahead. stay with us hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this. your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, like asap! so basically i can pick the right plan for each employee. yeah i should've just led with that. with at&t business. you can pick the best plan for each employee and get the best deals on every smart phone. 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 ♪ music ♪ ma♪ dream, dream when you'ren. feeling blue ♪ ♪ dream, dream that's the thing to do ♪ ♪ music ♪ when you see value in all directions, you add value in all directions. accenture. let there be change.

welcome back to "stock on the street." bitcoin leverage hitting a record high hitting the risk of potentially another crash. our kate rooney has more for us on this. hi, kate >> hey, morgan bitcoin struggled to attract new buyers this year the delivative and options market are booming analysts tell me that is adding to risks of big swings and volatility according to glassnote leverage or people borrowing to make a trade hit a new all-time high this week and one way to measure that is the total open contracts. that's up 42% in the past month or so. another way to look at this the leverage ratio versus bitcoin's market cap that's climbing, too other times when the ratio has gotten to these levels around 2% have, quote, been short lived and ended with a dramatic flush

out of margin. the firm says the recent uptick speaks to more interest in bitcoin price action as a speculative bet versus owning the asset itself. they call it an aggressive growth rate lately and driven by some of the more bearish and short traders on bitcoin's recent weakness. but, guys, as you mentioned another crash or downturn and also work the other way, as well if we see bitcoin move upward like it has this morning that could lead to the shorts meeting to scramble and cover their positions and buy in at any price just to stop the losses. also known sometimes as a short squeeze. either way, more leverage tends to result in more turbulence in either direction guys >> kate, thank you kate rooney, thank you giving you a quick look at the markets. as you can see, the s&p up 0.25%. a decent continued rebound that we've seen through the course of

the week nasdaq in positive territory, as well three day running for the nasdaq eke out another gain of course, we have a lot more trading ahead for you and a lot more programming that will do it for us on "squawk on the street. let's go over to "techcheck" which starts now. good wednesday morning welcome to "techcheck. i'm carl quintanilla with john fortt and deidre bosa. higher valuations for select names as cpi gets the highest jump we'll talk about some fintechopportunities. and new neighbors tesl