2022 january 20th an important day every four years. "squawk box" begins right now. good morning, everybody. welcome to "squawk box" right here on cnbc i'm becky quick, along with joe kernen and andrew ross sorkin. and boy, what a start to the year this has been down day for the markets across the board yesterday with the do you off by 1%, the s&p off by 1%, and the nasdaq down by 1.1%. at this point the declines are really starting to add up. you can see green arrows this morning, but if you've been watching the nasdaq composite or the nasdaq 100 for this year, wow, big losses. you are talking about the nasdaq down by 11.5% from the high it hit on november 22nd nasdaq 100 is down by 10.25%

that means both of the indices are in correction territory, down at least 10% from their highs they hit back in november, late november at that. so you have seen some incredible pressure across the board if you were looking at the faang names, those big stocks, all of the faang names except apple are in correction territory apple is down 9% microsoft off by 10% amazon 17% google is off 6% for the month and meta is down by about 5% for m month-to-date. netflix is down sharply down by about 27% from its highs and the pain was kind of everywhere yesterday we'll talk about where you saw some of these things if you want to look at the squawk stack right now, the communication services sector is in correction territory too. and the russell 2k is sitting at

its lowest level in a year, january last year we saw levels like this. wti on the flip side is the highest level since october of 2014 then the ten year, so much attention has been paid to it, 1.83% this morning ten year is the highest yield in two years. a lot of big things are happening and we'll talk a little bit more about this later in the show. andrew huge market moves and also a busy day in washington, could have an impact on the markets unto itself. a quick recap of what happened we had two key votes in the senate the first the democrats voting rights bill fell short of the 60 votes needed to break a filibuster and then voted down the right to change the filibuster rules. democratic senators joe manchin and kyrsten sinema voted with republicans to reject that rule change then in a nearly two-hour long

news conference, president biden offered an assessment of his first year in office and covered a range of topics, acknowledged rising inflation and the administration's slow action on covid testing. he predicted that vladimir putin would order a ukraine invasion but said he would regret having done it and admitted publically that his build back better bill may not pass as a whole. >> it's clear to me that we're going to have to probably break it up. i'm not going to negotiate against myself as to what should and shouldn't be in it but i think we can break the package up, get as much as we can now, come back and fight for the rest later >> and there you have it isn't this what we all thought was going to happen to begin with i'm not sure why we're all even -- i don't know why it went on as long as it did >> i think everything db they do a lot of things for show down

there. a lot of kabuki dancing. and the votes last night, they knew in advance full well -- i'd be like, it's late, here i am, i have to be here for this vote, i know what the outcome is going to be, why are we doing it build back better, never -- we -- and this -- we'll get political here, and i don't want to do that but we heard that joe manchin pulled the rug out from under the president. and we heard that stated by a lot of people on his staff in the administration but then if you look at manchin's comments i'm not sure that's true. i think he had issues the entire time >> i don't think he was ever going to do it. >> that's what i mean. >> i don't think he was ever going to do it they were both dancing. >> it matters to us. i'll tell you what was more -- this -- i'm going to get totally off topic. what occurred to me was watching the nasdaq and watching the valuation come out of things

the nasdaq might be the best proxy for where money goes when it's really available. >> money heaven. >> yeah. no -- >> where is it going now >> those are great companies and if something -- instead of going into an nft, i'd rather have an overvalued share of apple or microsoft or google or something like that. so when that comes down -- >> but did you see -- >> -- i think that's a really good reflection of the change in -- that we're seeing with the fed. >> the change in sentiment, the change in the fed. >> and thinking about crypto -- >> look at crypto this morning -- >> crypto following the nasdaq but here's what -- and i thought of this. crypto is getting it from two sides. >> right >> but it's down from 60 -- bitcoin. >> i would have thought it would have been slaughtered again yesterday. >> you would think this occurred to me, the two reasons to own crypto, one it's a good -- it's a very

speculative asset, right and when money is cheap, it goes into crypto. but the reason you buy crypto is because money is cheap and you think that currencies aren't worth -- they're getting debased. so when the fed moves the opposite way number one you don't have the free money, and number two you don't have the rational for owning it in the first place is not as compelling because you're not printing as much money so it's a double whammy. >> i think a big part of it has to be the tightening of the balance sheet again, too there's a lot of talk -- brian was talking about it this morning, i heard from some people yesterday, i think you did too yesterday, what happens when you have tightening because there was the chart that showed stocks going up, especially the tech stocks going up, choreographed to what the five central banks were doing with their balance sheets it was almost the same. >> like a one-to-one correlation.

>> yes. >> that's what i was referencing. you saw the chart, too >> yeah. it's -- and brian was talking about it this morning and was going back and forth a little bit about it it's been -- you know, you can say that it's not going to mean that much, but if it meant that much on the way up it's going to mean something on the way down, too. >> what's the average multiple for the great stocks and we talked about, i made my case for netflix yesterday, i'll pay any price for my month long of -- >> but the question is -- >> yellow stone is on peacock. have you watched that sorkin >> yes, sir. >> i did. >> yes, sir. it's a very good show. >> you know who's a beast, he really is. >> kevin costner >> i think so, too he's great. >> i never liked -- >> you never liked kevin costner. >> i liked him since "silverado". i did. but i think in this he hit his

stride i like rip a lot i kind of want to be rip kind of a fan boy, and i'm not i'm the furthest thing so netflix i understand paying 40, 50 times earnings, but a lot of it is due to the fed. >> netflix is going to have earnings tonight too -- or results we should say. the question is are they going to miss on the subscriber numbers, too because you can give a stock a lot of leeway when you know it's a growth story because there are so many other players, like peacock, disney, paramount -- i can't tell you the number of things i have signed up for now. is there a limit to how big you can get with them, and that is back to the question -- you know, the faang stocks, as much as they're down, that's nothing compared to the other high flyers, peloton down 80%, draft kings down 71%, pen nationaldown

70%. discovery off 63%. moderna down 65% the pain you're talking about is even deeper when you look at the other stocks, too. i don't -- i think that's reflected to somewhat in the indexes. but you know -- >> not the -- >> depending on where you're invested you feel it's more. >> something is holding it up if if it's only down 10 in the nasdaq >> i saw someone on twitter saying buying peloton shares would be better than the bike. he said if i bought the stock i'd still have 25% of my money. >> it's not peloton's fault. it's easier not to use it, i have to admit. >> i have one right here i can reach it >> sorkin you admit you watch tv you want people to think you're zooming in on cspan and taking notes and stuff. so you do watch -- okay. >> we can go toe-to-toe on great

shows. i just watch tv efficiently. i don't watch like every show -- >> "bonanza" is not a great show. >> i just don't watch bad tv. >> i try to -- i just don't watch endless tv, how about that >> i don't either because there's nothing on it can't be endless because i can't find anything. there's a lot of sports on, too. you don't watch sports, sorkin that's why i watch tv. >> i don't watch sports as much as you watch sports. that part is 100% true i should. >> you need a draft kings account or a fan dual account. let's talk new jersey, i think phil murphy is on later. the state of new jersey is stepping up the covid vaccine mandate. yesterday the governor signed an order requiring health care workers to be fully vaccinated including a booster or face termination. the order covers workers in

group homes and prisons. the governor eliminated the option for unvaccinated workers to get regular testing instead of shots governor murphy is going to join us live in the 8:00 hour i don't want to get you triggered, andrew, but what about starbucks. do you believe that? the supreme court gives them cover and they pull the mandate. first the unions and now this. i hate to see the bloom come off the rose for you on starbucks but is that what's happening >> i'm reserving judgment. i'm reserving judgment and i, to this day, believe that the unionization issue inside starbucks is there's more to that story that we all don't know yet but give it time >> it's good it's spicy it's good to talk about. gets the blood flowing early in the morning. >> here we go. let's get ready to rumble. when we come back, yesterday's sell off pushing the

nasdaq into correction territory. we'll talk tech right after the break. down 166 that's the damage yesterday. as we head to break, checking out the big companies set to report this morning, travelers, american airlines, union pacific, baker hughes all on deck you're watching "squawk box" and thiss bc icn thanks for coming. now when it comes to a financial plan this broker is your man. let's open your binders to page 188... uh carl, are there different planning options in here? options? plans we can build on our own, or with help from a financial consultant? like schwab does. uhhh... could we adjust our plan... ...yeah, like if we buy a new house? mmmm... and our son just started working. oh! do you offer a complimentary retirement plan for him? as in free? just like schwab. schwab! look forward to planning with schwab.

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welcome back, everybody. the futures this morning are indicating a positive start.

it's been a rough start to the year but right now the dow futures indicated up by 160 points, s&p up by 24, the nasdaq up by 121. those tech troubles continued yesterday, though with the nasdaq closing lower once again and sitting more than 10% from the november highs, so the nasdaq, nasdaq 100 both in correction territory joining us to talk about the markets is silvia jablonski and kari firestone ladies, welcome to both of you we've been watching what happened in technology, silvia i know you said there's a repricing of risk in here. no doubt but the question is, does it continue, is there more pain to come what do you think? >> good morning. we see the nasdaq here in correction territory, hitting below that 200 day moving average, s&p below the 100-day and i think a lot of this is

that the market isn't quite settled with the idea of the two-year inching up towards fair value. the amount of rate hikes we might have and if we think about easing monetary conditions to tightening, i think the market is overreacting and holding onto that tightening, the other end i think we're somewhere in the middle and once earnings come out and we hear from leaders and see this continued trend of 70% of companies beating earnings and think about the amount of cash on the balance sheets, the second are growth opportunities that this correction could be shorter lived than we expect >> so this is the time you buy into some of these stocks? >> i absolutely would. and, you know, i'm definitely picking my spots here. so i wouldn't just sort of go across and buy the wide breadth of names that pulled back, i do like the n names and i replaced netflix with nvidia. i like the companies

participating in things like cyber security, the cloud, metaverse, and 5g. looking at names 10 to 30% off their 52-week highs, these are great times to get in names. you have to hold them longer to watch it play out. but if you have cash on the sidelines i think equities are the place to be and these are great opportunities to buy into these names again that are going to have growth for the future. >> you make the great point that a lot of this change has already happened going from the growth stocks to the value stocks in fact, yesterday we had proctor and gamble's ceo on. that's a company with pricing power. you make the point when you look at companies like proctor and gambles, mcdonald's and eli lilly, it's the same as google, which is better? >> that is a very important point. the value names started to run up last year think about financials in 2021

they were up 33% and the reaction that investors had to go goldman sachs and j.p. morgan's earnings. both were very disappointing and those stocks have come way off, because they had run up in anticipation of the fed raising rates a number of times this year and those companies benefitting from the interest rate play that -- and benefit that they'll see. so if you can buy, you know, meta, facebook, google, auto desk, visa at multiples that are below much slower growing value stocks, what we think, that's a more attractive place to be right now. not to say there aren't areas within the value universe but growth where you can support it with valuation is very different from hyper growth where there's no valuation support and those are the companies that you guys mentioned before, whether it's snowflake or amongodb or trade

desk, peloton, these are stocks that have come down 30% to 80% almost 200 names that have valuations over $3 billion, off 30% or more from their 52-week high those are the stocks that are trying to find some support and there's residual damage among the rest of the s&p and nasdaq in the companies that actually earn something and so we think there are many places to look right now where we could buy stocks and feel comfortable over the next year >> but just to put a fine point on that, you would not say because something is off 50 or 60% means it's a sale or bargain you like a lot of those stocks you think are down for good reason >> oh, absolutely. we have sold some stock recently, you know, we trimmed names like home depot, sherwin sherwin-williams those have been fantastic stocks, blackstone, we still own them but we have money on the

sid lines. we've been watching stocks go down when there's no earnings it's hard to support. it's down 30%, might go down 50% before it's plateaued, but that's the opportunity you have to wait and see what can we determine will be a value three years from now, there will be earnings to support it rather than no earnings for ten years that's the problem with the market that goes up on fumes very little way to know when it's going to stop going up or how far it might go down that's what happened in, you know, 2000 but there was a point in which good companies did bottom, whether it's 20% down or 70% down and they can go up but you don't want to catch the falling knife. >> silvia, the first trading days of the year have been bleak but you think there's a positive tone for this and markets will go up, correct >> i do. i think when we step back and

see what happens with the fed tapering this year and the rate hikes. i think if anything the fed has the ability to be dovish if they want to be i think the market is going to get used to the ten-year being at fair value. i think some of the largest companies, the large cap names have healthy balance sheets. talking about cap x, buy backs i think the consumer, which is 70% of gdp is going to continue to spend, we'll see growth and see the sensitive trades like the hotels, airlines, cruises, the reopen trade come back into play so it's just a matter of time. i think the volatility is going to shake out later in the year and we'll see a positive reversal from what's going on now. i think so much of this is overdone and it's immediate panic to the ten year and the idea of rate hikes >> silvia, kari, thank you for getting up early with us this morning, it's good to see both of you. >> thank you

coming up, the winter olympics kick off in two weeks but the covid crackdown is forcing some last minute changes. details next plus a new call to ceos to bring workers back to the office in new york "squawk box" will be right back live from the nasdaq market site in times square. with my hectic life you'd think retirement would be the last thing on my mind. hey mom, can i go play video games? sure, after homework. thankfully, voya provides comprehensive solutions and shows me how to get the most out of my workplace benefits. what's the wifi password again? here...you...go. cool. thanks. no problem. voya helps me feel like i've got it all under control. because i do. oh she is good. voya. well planned. well invested. well protected.

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who would've thought printing... could lead to growing trees. ♪ the winter olympics kick off in two weeks, but the announcers will not be traveling to

beijing. nbc sports said yesterday the announcing teams will call the events from their facility in stanford, connecticut because of covid concerns i can think of a few other nbc's announcers for figure skating, alpine skating and snowboarding had been expected to be in beijing but those plans have been cancelled. we'll never get any of this back remember the olympics when there was no one in the stands and you're trying to watch figure skating without any cheering. >> it's the same thing this time. >> we're never getting it back from remote they do well. >> at least in japan they had some people in the stands some local people were allowed in the stands that's not the case in china it will be empty. >> so the announcers are like us, watching on tv and commenting we could be at home commenting to our -- you know, to the other members of our family. that's a beautifulfull axle that just -- oh, she's down. >> i'll still watch. but i don't blame them

i heard what you have to do to get into china at this point, the swabs that they're going to take. >> that too. >> no thanks >> i've seen some of the more strident china hawks posing the question what happens if the athletes say something that the chinese government doesn't like? i don't know i don't think they'd be dumb enough to -- >> i don't think you'll see anything like that. >> they only disappear their own people, don't they >> at the moment >> exactly back here at home, i do want to point out something if you haven't seen it already, there's an op-ed in the new york post today, making the call for ceos to bring workers back to the office or risk spreading unemployment in areas like the bronx. she points out in the bronx the unemployment is still above 11%, even though the national average is now below 4%. a big part of the problem is you only have about 28% of the

office workers back. there are so many people in the bronx that take the subway down and work in the stores, restaurants, all around the midtown offices where there were so many people coming in if you think about it, new york is a city of about 8 million people it used to be, pre-pandemic, that number would swell to 12 million people there during the work day these are people coming in from new jersey, from connecticut, and they aren't. at least not even in any sort of real show of force at this point. and it's been a huge issue all the way around for manhattan for the rest of new york, and for other offices. you've heard this echoed by ceos before saying we need to do this to get the city back and up and running. but the problem is the crime situation still in the city not to mention the inconvenience of travel and commuting most people are driving themselves in, but traffic has been bad the times i've driven myself in, i'm shocked how bad the traffic

is i don't blame them if you see what's happening in the subways and other places, you don't necessarily want to do that >> it's the point that's been made again and again, that working on a fancy laptop at home and being able to do your high-tech business is really you're at a certain level of employment when you're able to do that, and a lot of front line people do not have that option michelle points out the lines that feed in from the bronx, the subways that feed in, occupancy is down like 50% or something, or 60%, people aren't coming -- why would they come in if there's no job but they're not at home on their laptops doing what they'd normally be doing in manhattan >> look, michelle is right you want all these people back, but there's -- i would argue you have to clean up a couple of things i think the crime issue is a real issue and perhaps more importantly than that, to get everybody in an office quote/unquote

comfortably, where they're not going to be having to mask all day long, you have to figure out how you're going to deal with it and are you going to pay for daily rapid testing. what is the measure that's going to get there it may well be in three weeks from now in a place like new york city we are there >> you're right. >> because of the numbers the way they are >> let's hope so that would be -- and i initially said well, the other reason people aren't riding the subways because of what you said, you probably don't feel totally safe it's a numbers game. >> but part of it is a chicken and egg thing. one of the reasons there's crime on the subways and so many homeless people -- why the whole experience is the way it is is because there's not enough people out and about so it's sort of -- >> but it's an investment that has to be made and you have to clean it up and police it and figure out a problem with the issues that are there at the time because right now you're in

a workers' market and employees can say i don't want to come in. if it's a chicken and egg problem, guess which part has to be fixed first when you're talking about the low unemployment and so many white collar workers have more say than they did in the past. >> we'll see what eric adams says -- well, we know what he says about it. we'll see what he does about it. when we come back, the key part of the economy to watch ahead of the opening bell. and scott kirby joins us, american airlines ceo doug parker, that's coming up in the next 90 minutes. as we head to break, a look at yesterday's s&p 500 winners and losers

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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 morning and welcome back to "squawk box" live from the nasdaq market site in times square checking the futures you can see across the board, they are in

the green. would i bet my life they're green at the end of the day? i don't think i would. i would bet something a little less than my life on that. who knows. lately it's been different than last year it seems like. sort of a positive tone in the morning is easily evaporates by the end of the session almost as if -- it's almost as if we want to drift lower, it seems like maybe that's what you would expect as rates have been climbing around the world, really time for sector nomics sectornomics, i don't think that's a word. dom chu joins us with a look at utilities. it's kind of like car-bage, isn't it >> yes, it is. we made it up but it sounds good a nice merging of words. >> do you use the word car-bage? >> i haven't used it in my daily

conversation. >> you know what it is, though >> yes so i would just say this, sometimes these words we use are there to convey a message and we know communications is all about the receiving end. so if you -- as long as you know that we're talking about a sector focus and the business or economics around it, i guess it works. to your point, joe, you talked a little bit about the tilt away from some of the riskier growth oriented aspects out there to the more defensive names it's an interesting dynamic because in a rising rate environment, investors tend to shy away from the dividend paying stocks out there because yields on treasuries can be more attractive from a risk adjusted basis. but statat the same time, if yo trying to get away from the technology and communication services stocks you want to go towards utilities, a weird tug of war happening right now but the last 12 months it's not been that story. energy as you can see on a

sector basis up 46%, the best performing sector. the s&p is up 17, and yuleutili up 9 people have been focussed on the value cyclical, reopening trade as the economy tries to get going from the pandemic lows we saw in 2020. if you look at valuations, over the course of the last ten years, the utility sector has traded with a slight premium to the s&p 500. but right now, valuations on a forward basis, looking at the s&p 500 utility sector and the price-to-earnings ratio and how much you on're paying today for expected earnings in the next 12 months you can see it's crept higher in the last decade. at these levels talking about 19, 20 times earnings. so where are some of the biggest discounts in terms of valuations within the utility sector. there are names out there like first energy, trading at 16

times forward earnings evergy, 18 times similar for entergy and same for at most. these four have the broader discounts to the s&p 500 but they're stocks that have also posted kind of gains throughout the course of the year over the last 12 months it's not because the stocks have fallen dramatically that the valuations have come down, they've still traded a discount. so a lot of investors and traders focused on utilities may be looking at those metrics to make their decisions on whether utility stocks are the place to be, joe. >> i see that. an interesting array there, dom chu. do we use a portman 2 for lease

mania. brunch, motel, motor hotel, did you know that? some of them are so engrained in in the way we speak we don't know but then there are a lot more. >> i don't know if i should be excited or scared about what you come up with next, joe >> if your name is out there more, dom, it's all good. >> i'll take your word for it. >> as we have seen in the current -- most of the time, andrew >> yep. >> i guess it's possible it's not good i see some people that really do -- they don't care at all, they don't care what it is, they spell it right maybe not kathy griffin, that couldn't work so well. usually it's good if people are talking about you. >> a lot m coming up, key hearing today on regulating companies, and a hurdle for microsoft's deal to buy act vision all coming up after the break.

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coming up, regulating big tech we're going to talk about the big hearing today. that's next. and meet the new class, not same as the old class, steve liesman has a look at the newest members of the federal reserve

it's a who song, isn't it? and a breakdownof hawks versus doves. that's up next we're coming right back. 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! ♪♪ i think you're going to like it here. umm, why is everyone... throwing things at me? look, as cfo it's my job

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welcome back to "squawk box. this morning, microsoft's deal to acquire acti vision has some firms wondering if others will follow suit to get a piece of the metaverse. yesterday i had a conversation whether big tech could face scrutiny if big tech ramped up the strategies. >> it's not the job to pick winners and losers but to ensure they're playing fairly when you see transition, that's when enforcers need to be vigilant because that's when incumbents panic and realize to stay relevant, dominant they may have to engage in tactics that

end up being illegal joining us now is enish chopra and chris kelly. i'm curious about what you thought of her words but also how you think this microsoft -- you know, how important this microsoft/activision deal is, in terms of how business leaders and the policy set are going to think about deals in the future? >> number one there should not be any emails from microsoft discussing anti-competitive behavior so we want scrutiny how you approach mergers there are three things i heard in your interview with lina yesterday but also more broadly. one the s.e.c. is making moves to make a definition of consumer harm to go beyond whether or not you pay for a digital good so any activity that weakens consumer privacy may be on the docket for valuation

two she's made it clear the ftc needs to strengthen the deterrence muscle. so there may not be stopping transactions like this, there may be more negotiations for areas that could be moving industry towards a bit more consumer protection. and three she made it clear she's going to look for the data, is there evidence that even in markets like the metaverse, are there activities that one may deem early enough that could lead to anti-competitive behavior. that suggests she's going to look for, even though it's a relatively new market, tu opportunities to find procompetitive actions. >> i agree 100%, having sat at the table with her yesterday, that's going to be the approach because from a deterrence and efficiency perspective she suggested she didn't have the money and resources to actively go and investigate and some

cases try to break up or other remedies so she's going to have to try to go for deterrence or use rhetoric to get companies to behave the way she wants the question is, will it work, chris? >> the hardest question for the ftc is what they faced in the facebook case and otherfacebookd quite other cases is market definition at the end of the day. when you talk about something like the metaverse, who knows what it looks like i think you will see a lot of headline assessment based on the size of the mergers, the price, the market cap of the companies engaging in it ultimately, there's got to be some prediction about the way markets do look and should look going forward and a lot of it is just things we don't know at this point >> well, you are talking about a fight for consumer eyeballs, the size of the market can be quite different tan the way that the

ftc has tried to define it >> aneesh, a judge will have to adjudicate these case, as you know, i imagine there will be judges that say, you know what, the ftc, dov in some cases, they don't have a crystal ball. there will have to be weight put against the privacy issues, meaning the price issue, meaning you will get something for free. i think it requires a differently level of adjudication >> well, it does but let me suggest that we should be paying more attention to whether or not microsoft might willingly agree on certain conditions that convey a bit of a pro-competitive posture. for example, allowing multiple hardware devices to run games, thinking of ways in which there is more interoperatability so there may be opportunities before we get to a judge in a

trial to see merger conditions that move the industry forward and set a few foundation >> i agree with that completely. i actually think you will see a lot of those discussions go on i think you will see actually probably some proactive discussion of this from the companies where they say, look, if worry uncomfortable with apple's ensis tense that you use apple payment systems through their app store, we'll proactively promise we won't do that in a macrosoft activision blizzard app store for the next call of duty i think that will be discussed with regulators. i think it will be discussed by the companies how they can promote general competition in the marketplace. >> but %, and this is the hard part, though, aneesh, in my mind, which is you say to yourself under a tra terrible metrix a microsoft activision

deal will not, i cannot look at context and sayly block that deal or require the kind of measures you are talking about because it's still such a fractured market, the imfwaing mark, the question is in a decade from now, will we sit around and say, whats that a mistake? it would have been the success microsoft would have been able to do with activision, no? >> simplify this more, so we have been seeing a global battle around a free and open internet. the u.s. have fought for more open platforms, so there can be new competition. in these digital marketplaces, there is clearly evidence there may be opportunity for more behavior so my pre sum shun is while it's of surface, you know, the story line about getting into mobile gauge and microsoft isn't much a leader in, that makes sense, but at the end of the day, the way they execute the market is to wall off competition and

behaviors within this new environment weaken consumer harm, maybe weaken privacy protections. then i would say, behaviors are going to see monitored, fought whether more goebel gaming lives are on the platform. >> this goes maybe back to apple but is endigtive of apple made the argument i think quite successful it wants to run an app store partly because of the privacy and control issues, it believes that is a consumer value that its consumers appreciate and buy for that rational ejust want to make the same case and do you believe it could be done otherwise >> absolutely. but i do think that one of the things that you will see in the discussion of this deal and the discussion of a football of another deals how companies will work to protect competition in

the marketplace,, they will focus on consumer values and the way the consumers experience the service and a need to have some control over that, they will also emphasize where they may you know not need control going forward and be a preserved competition as they establish you know next generation in the marketplace. i think the cog fisans of that is operating, you know, extraordinarily high level in any number of the companies and they'll continue to do that as they try to acquire you know bulk up in new ways. >> aneesh, bottom line for us. we have only 30 second, is this deal going to be passed? there will be a deal in 18 months >> yes, there may be more merger conditions that move microsoft closer on affordability and operatability. >> good to see you, thanks for your perspective on all of it. becky. andrew, a big lineup still

to come, we will talk to ceos of american and united airline on the 5g rollout, they pay see fewer tickets bought now because of omicron and the recent volatility and big fames and new jersey governor phil murphy on omicron and what his state is seeing stay tuned we'll be right back. well, would you look at that? jerry, you gotta see this. seen it. trust me, after 15 walks... gets a little old. i really should be retired by now. wish i'd invested when i had the chance... to the moon!

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stocks try to hold the ground for most of the indexes in fact, the nasdaq in future territory. the futures are higher this morning. american airlines out with results and making impact on business from covid. we'll hear from the ceo doug parker and president biden saying he supports federal chair j. powell's expected mof to start tightening monetary policy we'll talk about comments and blame game with pollster fred lutz the second hour of "squawk box" begins right now.

good morning, welcome back to "squawk box" right here on cnbc along with becky quick and joe concerning u.s. equity futures this hour after what has been a wild couple days. the nasdaq about 130 points hire, the dow 106 points, we'll talk about it. bitcoin at $42,000 let's talk about some of the headlines making news this hour. the u.s. headlines saw a limited impact from 5g wires will carriers and followed a temporary concession to delay turning on new signals located near airports. starbucks reversed its plan for testing requirements next month. it comes after the supreme court struck down the biden administration pan date for large employers. the coffee chain said it would encourage workers to get vaccinated and boosted meantime, netflix set to report

quarterly earnings the streaming services missed wall street estimates if five of the past seven quarters as analysts focus on slower subscriber growth and shares have fallen more than 14% this month. dow component travelers, the earning came in well above expectations $5.20 a share beats the consensus. you had revenue beating the wall street's forecast and the insurance company getting help from just about everything happening here allen snitzer, the chairman and ceo, says they saw small margins and exceptional returns from their investment portfolio in fact, core return on equity up 19.8% and netflix premiums up 10% to 10 billion. american aerials reported quarterly results as well, phil le beau has the numbers for us >> becky, better-than-expected

quarters for american airlines it was a loss as expected, smaller than expected 1.42 a share less than 1.48 revenue better 9.43 billion. not a surprise we saw an increase in demand especially first half of december, last half of november. the most liquidy on their books at $15.8 billion it's the guidance that people will be focused on in that regard, the first quarter will be challenging. now, this is in comparison to 20 fine, capacity down 8-to-10% revenue down 20-to-22% chasm, stripped down fuel up or down 8% i should say overall the question is whether or not the company feels as good about the trends for the first quarter as they did in the fourth quarter, at least the first half of the fourth quarter and what's been the impact of this surge in the omicron virus

not only in terms of demand, but also in terms of staffing? we will talk with american airlines chairman and ceo doug parker you do not want to miss this interview. this is a "squawk box" exclusive. that's coming up in about 25 minutes. again american a little expected in the fourth quarter. so much of the focus is on 2022, the first quarter and then later in this year, is it possible they turn a rost one last note, guys, 107 consecutive quarters that doug parker has been doing a quarterly financial call this is his last one going all the way back to the mid-90s. think about that 107 straight. we'll talk to him in about 25 minutes. guys, back to you. >> he's like the cal ripken of airline ceos, quarter, after quarter, after quarter phil, we're looking forward to this interview see new a little bit. >> you bet >> 26 years. i did that quickly, pretty good.

let's go to dom chu, who is looking at when are we going to break? when are we going to introduce that, dom, early movers? >> that's not my thing >> oh, you know, you don't blow your own horn, you never toot your own horn. dom-i-know leash man came up with that. i him, do i want to attribute it i want to take credit. ruin sitting aattribute? >> dom-i-know. take it away. >> i think you and i are so fortunate to work with such creative minds >> yes. >> so let's look at the morning movers as you point out. you mentioned the fax trade this pullback to past correction territory now. one of the etfs that has been kind of at the focal point of many traders as the rise to the

nasdaq highs was there and the subsequent fall has been the r tech innovation etf. we want to highlight it now. we didn't pay a lot of attention to it as we saw it move to the high this is past year redown roughly call it 52/53% from the record highs we saw over the course of the past year so it has been trending lower as you can see there. it hasn't had any footing whatsoever we've hit the lowest level since around july of 2020 at this stage. this etf has become emblem attic from a momentum standpoint it is up 1.5% in the pre-market trade. they want to call a bottom any time soon. big technology were drivers of the downside as they have been in this pullback of the fax. apple, microsoft, alphabet, amazon and tesla are up so far alphabet is lagging a bit.

still 1 and a quarter gains for microsoft and tesla up there as well if you believe you look at the nasdaq 100 index, the four best-performing pre-market trades in the nasdaq pre-market are all chinese internet, all up between 4 and 6% at this stage, carrying the krane shares csi china up 6% right now. so the nasdaq trying to find a balance, chinese internet trying to find a balance, guys, this will be about whether or not -- joe alluded to it earlier -- whether or not you want to stake everything you have on this bounce holding into the closeing bell traders are at least attempting in the early part of the day like they were yesterday back over to you. >> look who is up next, dom, the guy that came up with this the dom-i-know le will get to leishman, this

has been one of the challenging years for the fed if terms of the policy, added to the mix the change of personal, today's edition of leash-mania, another one, steve leishman joins us with more on the hawks versus the doves. i'm not familiar with the doves. i know the hawks played the milwaukee bucs last year in the playoff. >> well, i got a name for the new football team, joe, the walk doves. president biden nominated three new members to the fed's board there is a potential for a policy debate that picks a few washington doves against the block of mid-western hawkles at issue, everything from the amount and pace of rate hikes and balance sheet reduction to bank regulation and the fed's involvement in climate change. fed governor nom fee lisa cook, economist and philip jefferson worked with the fed and is an economics professor at davison college. sarah bloom raskin nominated as

vice chair supersituation they cold come up against fed governor waller. he was the research director for current bank president jim bullard, they've typically before the pandemic, of course, have been among the more hawkish fed neb emembers. all three presidents have the votes. two new bank presidents will be named in boston with the boston president having the vote. in the middle, fed chair powell renominated for a second term and fed chair lael brainard, so far there has been little space on monetary policy and some deference on banking regulation. we don't know where they stand at zero rates and a $9 trillion balance sheet. the debate could emerge later

this year over how far and how fast the fed should go in tightening policy, especially, joe, with a balance sheet. >> so, and i don't -- i shouldn't start things with so and a lot of people do that. i think, steve, you seen is ben franklin close, positives, negatives, you lest them, count them and willist the others. i will give you why raising interest rates could be bad for the stockmarket. so normally i'd say, if it walks like a duck, quacks like a duck. interest rates going up, it's bad for the stock market on the other side it means an improving economy. that might be good it means banks do better because of the yield curve that could be good it means we are taking away emergency accommodations, which might be causing some dislocations in where funds kwu could go it may be at the beginning of a rise stocks typically go up.

i can name like ten things but i think the other side rates going up, we think that wins it's going to be choppy. there is no way no matter how many positives you find about this t this it seems we will have to go through difficult times. it seems like it's not going to be as great for financial assets as it has been. >> joe, why don't you rely on the wisdom that you have imparted over the decades, which is the idea of strong end and weekends we got to shuf testimony paper around you got to go from the guys willing to hold the paper only at zero percent to the guys willing to hold the paper at a 1% fund rate or 2% ten-year yield. i think that's where we will be. what is interesting here is i think the stockmarket takes it worse than the economy i think the market is trading at these levels here. >> multiples.

>> very much related to the, multiples, related to the amount of accomodation out there. the economy not so reliant upon monetary policy here and leak i talked about yesterday, there is a whole lot of reasons why a whole bunch of things will come back and do well regardless of what happens with monetary policy you talk to phil about autos, 12, 13 million units a year, we should be doing 14, 15, ask him, he's the number 16 that comes back not because rates are higher or lower, but because they make chips. you sa you the supply problems, that will be irrelevant. housing we talked about and the market are the two areas to take it on the chin >> the ease side of things could be fine. you got to multiple the e by the multiple. >> it's a multiple sfl >> the e should be fine. >> it's the volatility listening to you, coming in, in the morning, you start at 100.

you end at 100 i think the volatilityuntil things settle down >> look what the market did in a two-year pandemic, it doubled. we have been through a horrific -- >> it's really a discussion, joe, it's really a discussion for the domino >> it is for the dom-i-know. >> the domino. >> good. thanks, steve. >> coming up, when we return, president biden painting a picture of progress despite inflation soaring, thinking the of a covid surge we will speak to pollster flank l frank lutz stock market is coming right back ♪ ♪ wow, we're crunching tons of polygons here!

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in too many industries a handful of giant markets dominate the market, railroads, shipping and other over time and as reduced competition squeezed out small businesses and farmers, ranchers and increased the price for consumers. >> president biden yesterday on the corporations being a part of the cause of inflation

let's bring in political strategist and pollster frank lutz to discuss more on this issue. i guess we are trying to focus on the business instead of two hours of what we saw on the positive side, i think the president was lucid and no senior moments a lot of the stuff i think there was a lot of distortion and things, i was like, wow, that's off the wall but he seemed totally with it to me >> it's a wake-up call to the business community that someone will have to pay the price for inflation. he doesn't want to this is a warning to the people on wall street and a warning to people watching right now that

this administration does not want to take responsibility for the spending does not want to take responsibility for the economy and they're going to blame you on wall street, they're going to blame big business i listen to language, the words that he uses in a previous speech, he talked the about inflation being transitory i listen to the republicans right now responding to that that they're going to transitory the democrats right out of walk. inflation affects every individual, whether you are a morning host or you are behind the camera or you are in the control room everything you buy, everything you consume. when the president says that he is making progress, which is the word that he used again and again yesterday, people don't feel it. you can't tell them that this is economic happy days are here again when they are paying more for the pump, for food, everything that they buy i believe inflation, itself,

that one issue will have a bigger impact on the november elections. one more point, you can't talk an economy up. i don't think it was bind's best performance. it explains why he is liked as an individual and yet his rate job approval are hitting all-time lows. >> it's not the first time i heard someone blame corporations senator elizabeth warren said the reason you can see it is because these corporations are all raising prices, that's why we have inflation. that's not wrong corporations are raising prices, that is causing inflation. >> we went through thanksgiving, we went through christmas. this is the reason the public is soage tatd these two things are important the things that happen in our day-to-day lives, a reminder to your viewers it's not just about politics it's not just about ideology it's what we experience in our lives. we're looking at this so-called

great resignation. we're analyzing why the work force is so anxious and changing everything apt their lives we did this focus group. these two focus groups abby eisen ohio you whoer set this up, employees are looking alt their bosses, number one, why don't they talk about tear every day lives, two, focus on things that employees connect to and relate to number three, if you are going to have these conversations, make sure that everyone is engaged and seven involved i watched the politicians miss, mis-communicate with the people they want to represent and it's happening in the corporate board rooms and with ceos every single day. we have this great disconnect and, fact, joe, i think that will be the story of 2022. the great disconnect by the el

elites >> let me try to get predictions from you at this level after approval, it will be difficult. as little as 5% improvement could bring coat tails for a lot of different democrats in close races in the house and the senate did he go get anywhere yesterday towards raising his, help bolstering his approvele rating in 2022 or newt crall or was it, does it make things worse? it's been a pretty sharp decline in the last three months >> let's give him credit so he remains popular. that's not what affects voters i will make a prediction i will say at this point it is pretty clear the republicans will reach out to the house. and the reason why is that the expectations have not met the reality. i don't understand to this day

politician and ceos put them too high they say they will change their lives, when it doesn't happen, you get punished for it. second, it is about day-to-day life it's not ideology. it's not politics. it's not the over arching economyment it's how they're affected from the moment i gipt in the morning to the moment i go to sleep at fight there are too many people in charge through politics and corporations that aren't talking act the day-to-day concerns of the every day ord fare american. i don't think biden was helped by it i don't think the corporate community should feel good about what they heard yesterday. they're in for a very tough hall >> frank arc question, which is the truth as we all know is that the biggest problem nation is inflation. it's largely a function of the federal reserve. possibly more than -- i don't think there is anything that can

compete with that. would it have been beneficial for him to rail against the federal reserve, against what they are doing or to try to use his bully pulpit to force them to raise interest rates? how do you do that and does the public even understand what the federal reserve does >> that's the issue. the public does understand it. you got these wings on the left and the right that wants to apply the ideology to what the fed does, in the end, prices are drop under a 25% increase. are you going to be able to afford a car, a house? it's actually not inflation that bothers people it's affordability it's prices, it's costs. can i get through a supermarket and buy things i want to buy andrew >> you are totally right the question is, what do you want the president of this administration or any president to be able to do that, when so

much seems to be a fung of what the federal reserve has done i was thinking how if you were in that position you would articulate a message that comes across that actually gets at that truth >> okay. let's start with that truth don't make promises you cannot keep they have not started progress on inflation they've not started to change the workplace environment. they've not started to change the precious and anxieties people feel. we did focus groups for the "new york time's. we found inflation came up again and again. the president is not educating the american people at this point. >> hey, frank, the disingenuous part of that entire artillery. i heard the administration saying the federal reserve is the one that does this, the entire time convincing the administration and people in the democratic party, a lot of the for was are out there wanted the federal reserve to be even easier i think that's a part of the reason j. powell didn't raise rates sooner, there was a question whether he would be

renominated. a lot of democratic seniors wanted a more dovish federal bank chairman. it's crazy to think, it's not our fault the federal reserve did this when you know they were righting for lower rates and more easy money coming from th fed. they were spend ac lot of money, too. how do you divorce yourself from having any responsibility over that >> you can't, you got it it. you hit it right on the mark the administration made a choice it wanted to focus on jobs and employment and the fact that people are making more money, forgetting that inflation is a tax and here's the greatest challenge. people are getting raises right now, significant raises. but inflation is overcoming those races, so you are actually worse off today than you were a year ago and that's the key question am i better off today under joe biden than i was under president trump?

more and more americans are saying they aren't better off and will punish the democrats in november for that. >> the thing is the fed is saying they will raise rates that will be the day when a politician says have been too easy and you've engendered inflation. that's something you will never see on either side. >> i don't believe this administration really has an understanding of how americans feel right now that they don't understand >> i thought you were going to say economics in general yeah, that's what we're seeing >> i do public opinion i do leave it to you the profession of economics. >> okay. thank you. >> thanks. >> we'll see you later >> thanks. >> okay. coming up, after this break, billionaire investor walking back those comment about human rights in chosen after drawing social media backlash. most will prove him wrong or is

the truth more complicated that is is this week's topic in the on the other hand segment. we are back for that in just a moment time now for today's aflac trivia question. according to forbes, what venture capitalists dream home was the most expensive real estate sale in 2021? the answer when cnbc "squawk box" continues box" continues >> ♪ must be the money ♪ and i know how coach prime feels about money. -aflaaaac. -♪ aaahhhh ♪ now that is what this jacket needs. ♪ must be the money ♪ get help with the expenses health insurance doesn't cover. at aaflac.com

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investor palihapitiya sparked contrast when he says people don't care about the uyghur and john for the is here to weigh in on this. >> becky, oh how wrong he was. he walked the comments back monday saying human rights matter whether in chosen, the united states or elsewhere full stop but that's not quite what he said on the podcast. his argument was that americans can't be expected to care about

domestic issues in china when we got economic and justice problems to solve at home. he challenged the idea about the mass intention seemed to the holocaust. here's a massive problem with that argument. even the holocaust wasn't the holocaust on day one, first it was the persecution and later the mass detention and they didn't allow journalists in and do news conferences from the sites of the atrocities. the people that didn't care back then said many of the same things, let's not jump to conclusion we don't have evidence, is it as bad as human rights groups say there are more important thing at home. genocide looks often like this and often done in the shadows until it's too late. that is why we care. >> a very persuasive argument, john, the question is how often have we talked about china's treatment of them on air before

this blew up >> on the other hand, maybe a disturbing point we should all care about the minority in china. do our actions show we do? i mentioned it in passing with intel, caught heat in china for its statement that it is required to ensure our supply cheney does not use labor or source or services from the xianjen issues, normally i'm talking about surveillance, security, the size of the market meantime, tesla announced this month it opened a dealership where they are being persecuted, tesla didn't talk muchabout that the end of last year t president biden signed the prevention act. the "new york times" says big u.s. companies lobbied to alter the bill i didn't mention that. we talk a lot about tiktok and how much the kid like it bottom line we might care more about him putting his foot in

his mouth than the uyghers. >> i think it brings up the question, what does caring look like what can we do >> i think human rights issues don't look look they are economic at the time but in retrospect they often do you think about thecism rights movement here in this country and jim crowe laws and segregation and very clearly economic and the impact in the south. you know, you think back to what was happening in south africa. the '70s and '80s and it seems like a fringe issue to some people at the time but now very clearly economic. i think the challenge for us is to view the business in economic consequence that impact now and talk about these things, not just in passing. >> yeah, and apartheid, it was the economic consequences going about change it's when people sat up and started forcing the issue. so, maybe that's the same sort

of situation john, thank you. >> coming up, american airlines' ceo doug parker joins us after the break. here are the futures ahead of the opening bell a little bit of an out that we are seeing nasdaq which is in correction 'lbeig bk.s. about 100 point wel rhtac

welcome back to "squawk box. i want to go straight to phil lebeau who joins us this morning with a very special guest. >> thank you, let's bring in doug parker, ceo of american airlines joining us from the company's operation center in ft. worth. you have a loss for the fourth quarter, but the question becomes how much of an impact did you notice from the omicron resurgence let's say the last ten days of the fourth quarter >> thanks phil, the quarterly results i want to start by saying how proud are we what our team accomplished in the entire 2021 year. we grew if a year where it was most important to react-acceler

demand, we ran the best over our full year history and completion factor our customers noticed. in 2021, the highest they have been really, really proud of how the team performed it gives us great confident as we go forward. as omicron had an absolute best fourth quarter. >> go ahead, you can finish. >> sure. that's fine. certain areas had an impact on the quarter. these results would have been better were it not for omicron. we saw a large increase in cancellations, our net bookings through the quarter were fell from what had been about 80% of 2019 levels to less than 50% at their trough at the last week of 2020 those are coming back. we are seeing now net bookings

back in the 80% level where they were prior to omicron. so people are, inbelieve, certainly, they've gotten to the point they believe it will be behind them and they have confidence in travel plans certainly in the future. >> let's talk about the future you mentioned bookings are improving. is it go him to pick up if terms of travel and demand in the second half of this quarter or do we have to wait a little further into the spring? what are you seeing in terms of booking trends >> yeah, again, the near-term bookings are soft. there are people cancelling trips. but that has gotten better here as we come into january. what looks really quite strong, relatively strong are booking outside 30-to-60-day period. those numbers are back above

where they were pre-omicron. so we have to see. it feels like the consumer has confidence in being able to travel 30 or 60 days out we'll have to see if that actually manifests itself in actual results but that's where we are and look there is huge pent-up demand for travel once everyone feels well enough to travel and again right now it looks like it's 30 days from now. >> doug, i was actually on booking a ticket yesterday to go to california if a couple of weeks, i couldn't believe how cheap it was 200 bucks to get to california if you are willing to comply economy on it. it just made me realize that you guys are fully staffed you've got to have the teams, you got to have the planes, everything ready because we saw this huge surge that was there and too many people getting shut down because of staffing problems with omicron. it's got to be so frustrating

right now to figure out demand in china make sure you have the planes filled for the next few months have prices come down quickly to get through the next 30-to-60 days >> no, those have been low for a while, becky indeed, our planes are reasonably full. they're largely so due to leisure travelers. business demand has not rebound as much as leisure that will happen when that does, as people return to work and businesses return to their prior travel patterns or something close to it. what i do believe you will see is prices go up because there will be fewer seats available for leisure travellers but right now, yeah, you can get some really good deals out there and people are doing so. enjoy your trip. >> doug, let's talk about 5g and what's happened here over the last five weeks and couple of days

first of all, are all of your planes able to take off and land at every airport or is it still a case where there are a few airports, some ieairports, wher you are not comfortable with the altimeter potentially being interfered with, by a 5g in the area the wireless companies while they've delayed. they said, look, we need to turn these towers on completely those around the airports where we are delaying activating 5g? >> yeah, look, first off, your first question, because the telecoms have agreed not to fully turn on antennas within a certain ratings in airports, airplanes are flying in and out of all airports without any real destruction. it was going to be much worse than that, of course, unfortunately, saneer minds prevailed. we were able to avoid what would

have been a really, really disruptive process so, look, this hasn't been our finest hour as a country in terms of how we got to this point. the good news is the right people are talking to each other, sharing the right information now and i feel really confident that as we move forward, we will not see issues like this we now have what should be going on for a while is now going on, the equipment manufacturers is open our side speaking with the telecoms on the other side about exactly what is and is not something that we can deal with safely we were never going to excise sea. we just weren't going to have operations but it was going to be significant we've avoided it thanks to the involvement of a lot of people there in the last couple of days to get it done so we are thankful for that again i feel good about the process now where we are with the right people sharing the right information and to ensure we don't have this issue in the future. >> hey, andrew here.

quick question, i don't know if you saw starbucks yesterday announcing it is no longer going to require vaccinations or testing of its employees it will continue to encourage them to do so. i am curious if that decision and we've seen from the supreme court is changing how you may be thinking about this for your own employees. i also wonder how you think it may change your thought process around masking and the like and everything else for passengers over time? >> yeah, thanks, andrew. we at american have already completed our process in that regard ask we a vaccinated by early january. we have 95 exemption we don't want to fire anyone we feel very good about the process we put in place. so, yeah, we are headed where we are. as to masking, that is an issue

that is a federal mandate that is put in place by the tsa right now it expires sometimes in march, march 19th, i believe. we'll wait and see it's up to them to decide whether or not that's extended or fought. it will certainly be from place through the middle of march. >> doug, thank you very much for joining us this morning. doug parker, the chairman and ceo of american airline. hey, i told people earlier, 107 consecutive quarterly financial calls going back to your days at america west in the '90s, what's going to happen next quarter are you sleeping in completely >> i don't know, 107 doesn't seem like enough, right? thanks, you have been with me on pa lot of those. and i appreciate it. thanks a lot. >> yeah. >> it has been a pleasure. doug parker, the chairman and ceo of american airlines from the operations center. andrew, joe, becky, don't forget

we got more coming up on a big day for the airline industry coming up in about 20 minutes, we will be speaking with scott kirby, the ceo we will be talking to him about the results of late yesterday as well as for their outlook not only for the first quarter but the rest of the year deep mit miss that in a bit. >> good. it's nice for docu so he didn't get life. does he have to do community service once he gets out, you think, phil? that's like, wow, pervasive. it's nice. it's nice. so there was a possibility for it. >> yeah. >> that's 26 years isn't it >> yeah. hey, joe, we couldn't find it. but we fwoe tknow there was tapf you talking to him in the mid-'90s. >> are you kidding >> i want to see what you look like >>ive look exact lip the same, phil, in my own eyes coming up, the nasdaq on

territory for its worst month. we will talk about the tech tumble and much more and palantir founder, "squawk box" will be right back

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get a great deal for your business with the ready. set. save. sale today. comcast business. powering possibilities. welcome back to "squawk. the tech sector had a rough start to the year. many firms seen prospects of tighter rate policy knocking their stocks lower the momentum appears to be building to regulate the sector. joining us to discuss that and

so much more is joe lonsdale it's great to see you this morning. let's speak to the valuation issue. the key markets are off the down draft in the public marks around tech >> i live more in the public markings as well these days. i have been doing this a while these companies go out it's amazing, i think 40% of the tech companies retraced more than vest% of their highs. you see a lot of small 1 billion, 2 billion market cap, high growth, growing 30%, 40% or more so many have gone public, i think the market doesn't understand some of them. maybe some were over valued. i don't think they're understood >> so are you buying i mean, are you looking at these as an opportunity here >> i actually am out of our new stage venture fund

i am seeing public stuff, wow in the private markets this would cost twice as much, doubling down on some of these things personally, my personal accounts, i have diversified to real estate, reits, to all sorts of things, my personal accounts for the first time there is early growth companies, they have great ceos. there is always a question in the macroworld is the world going to slow down because of mark is that's what's going on? you see them separate x revenue with high margin, there are some pretty interesting things out there. >> you want to name some names >> you know i'll name one my fund has not been involved with, i am bullish on. here in austin i got to get to know the ceo, the stock is down so much. i am shocked, the only one i have been involved with, i was the first outside investor in blend a decade ago it's a high growth company my friend was saying if they

have an ir, they are bad the ir short the stocks. i got an apartment i don't think they've explained the street market cap is 1.5 billion him they have things building on the platform those are two examples of big examiners and blend seem cheap to me. >> joe, you mentioned the macroenvironment, how much does it impact the way private investing is taking place right now? on one side you are reading stories about a land grab of venture just rushing after startups, anything that moves, basically. and on the other hand, given what we are seeing the valuations, there seems to be a little disconnect in. >> you know, the private and public seem to be pretty disconnected right now i have heard the big story, of course, is a bunch of these big hedge fund, they're all of a sudden just rushing into the private market these last couple years because there is so much room. i have respect for tiger, d1,

there are so many big groups that write big chegs i heard tiger want to do 160 thavmt they outbeat me on two series as. the first time i had that, a big hedge fund competing in a series there. the pirate markets are very frothy right now at the same time they would argual tim mer 2 is a great one. they are willing to may more for some of these things >> that's what i was going to ask, is that a seen we are at the top and the hedge funds in this space are not going to make great returns doing this or does it mean the margin if you will for this whole space will come down because there is more competition? >> those are two very good arguments. one of them they made is they are quite sophisticated investors. rather than we continuing in the 30 irr for decade. they say rather than continuing to get to print, mid-30, irrs, we will pay a lot more for early

stage. that's a good argument the other side of it which is also legitimate,which is a lot more money than there has been in this space. we are right now at vintage, which is a lot aaggressive vintage. you got to be careful. >> i was speaking to the head of the sec along with kara sfish fisher this act jackson vision deal obviously not news how do you think of big tech as an acquirer, an exit for some companies, whether that's officially off the table given theed a pin straegs's perspective on these things. >> i'd leak to see the administration prove it in court. i think big tech should 'more public how they sensor blizzard is an awesome company i think microsoft buying activision blizzard, it's bullish what that will look look ten years. i grew up playing blizzard games. i think it's a good buy there. you can't block big tech from

buying companies what would frustrate me, if lina khan was doing her job the thing that went up the most is hospital costs. the one that has cartels in the america is hospitals you want to do your job, focus on things hurting people than the stuff that is actually working in our economy. >> joe, i wish we could have you for the hour we are up to a hard stop i want to thank you. we hope to do this again >> fregreat to see you >> joe coming up, united airlines reporting after the bell last night. we will dig through the numbers with ceo scott kirby next. plus, new jersey governor phil murphy on his state's battle with omicron, testing and more stay tuned "squawk box" will be right back. with deep expertise to outthink across multiple asset classes, actively managing investments

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i really should be retired by now. wish i'd invested when i had the chance... to the moon! ugh. unbelievable. good morning, futures are up as we make our way towards the opening bell, this after the nasdaq just fell into correction territory. new airline results front and center, american, united, both reporting losses, beating an lith's expectations. we will bring you american highlights and speak live with

united ceo scott kirby and is build back better dead that's the question, president biden admitting its spending won't survive, vowing this is not the end of the road. the final hour of "squawk box" begins right now >> good morning, welcome back to "squawk box" live from the nasdaq market site in time's square i'm joe kernon along with becky quick an ross sorkin u.s. equity futures are bouncing slightly a little bit after recent weakness we've seen that has taken the nasdaq and a lot of tech stocks down and into correction level for the overall indices. it's now down more than 8% just this month the index is january off, so far, is bigger than any loss for

an entire year since 2008. but we got a long way to go the first month. treasury yield as part of the reason but in recent sessions, we did not just go flying through 1.9 to 2%. it's come down a little 1.83 at this point check out the overnight action in hong kong the hang seng jumping more than 3% chosen cutting key mortgage lending rates today, earlier this week, we saw china cut some other rates and they are dealing with some of the effects of the covid situation there, where they have the zero tolerance policy, which obviously could affect economic activity becky. >> yeah, especially because net zero tolerance policy throughout all of this has meant they tone have much natural immunity a big population with a limited amount natural immunity. we fought some other stories we are watching today as well to

get you caught up. american airlines shares rising after they reported better tan expected numbers american lost below analyst projected. the ceo dug parker spoke to us about the latest covid variant. >> we are actually seeing now net bookings back in the 80% level, where they were prior to omicron. so people are i believe certainly have gotten to the point they believe this will be behind us and they are having confidence in travel plans certainly in the future. >> we'll be speaking with parker's counterpart at united airlines scott kirby in just a few minutes. in the meantime, president bidened a knowledgeing his $2 trillion build back better package will not survive, during an exteb tended news conference, he laid out a piecemeal approach to getting some of the elements of the package done. >> i'm not going to negotiate

this myself as to what should and shouldn't be in it i think we can brack the package up get as much as we can now, come back for the rest later. >> an update this morning, national economic director saying in a cnn interview that lower drug prices and child care costs could anchor efforts to do this piecemeal the child care efforts have been something there has been bipartisan support for and we spoke with the american chamber of commerce about. they threw some support behind, too, finally, electronic artillerys could be the next attractive gaming sector following microsoft's deal to buy activision blizzard. the market already figure thltd out, sniffed it out ahead of time they were up 2.7% yesterday at this time. so people have been circling around looking to see who the next deal might be joe? thanks, beck little under 90 minutes until

the opening bell on wall street. dom chu looks at us for some of the pre-market movers. hi >> hi, jeep, i am back with some pre-market movers. first of all, let's talk about the dow. it's implied higher 120 or 130 some points. the dow component reporting results having to do a good amount travel alert, up 4% right now. it's worth 40 points or roughly a third of the dow's implied gain at the opening bell at these current levels travellers comes out with much better than expected earnings. revenues is coming in better than estimates it was helped along and better underwriting businesses as well as travelers so those shares are up 4% right now. also watching what's happening with signature fet jewelers. this is the big company that holds not just the namesake jewelry brand all those

companies follow that brand. it's up 6% right now sick na came out and said that holiday sales rose 30% over the same time the previous year and traffic and same-store sales up 25 percent established store locations showing a big jump and signature fet up 5%. and thing theers searched from yesterday's full session, among the top ten, i would point out the ten-year treasury yield remains in the top spot. sofi technologies still showing near-term upside up 2.5% ford following up on a big down yesterday, more losses today analysts at jefferies downgrading that stock as well, tesla, bank of america, goldman sachs, the financials dominating the top ten. we'll see if that continues after it comes to a close. as always, joe, the rest of the top ten as well as highlights are on my twitter feed at the

domino i will send things back over to you. >> now people will be confused >> yes. >> it's not spelled dom-i-know no, it's at the domino, if you want to go to your twitter there you go, go to your twitter feed. >> thanks, joe. >> okay. okay coming up, we got a big and important interview with united airlines ceo scott kirby he will talk about the fourth quarter results and flying outlook and omicron and what he thinks about 5g cell service at the airports, what it means to a bigger broader economy "fast money" turning 15-years-old you are cordally invited to the bd party with special guests carl icahn the party starts tonight at 5:00 p.m. eastern time right here on cnbc don't miss it. stay tuned "squk"s mi rhtac aw icongig bk.

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welcome back to "squawk box," everybody. the futures this morning are indicated higher after a down day yesterday giving back some of what was lost with the dow up 123. s&p indicated up by 17

the nasdaq off by 114. if you look at the biggest dow winners this morning travelers is at the top of the list. they came in with much better anticipated earnings they had a strong portfolio performance, too i think something on that order like 19.8% for the quarter travellers right now indicated up 4.64% have you 3m, microsoft, caterpillar and amgen in positive territory too the chinese tech names are dominating the list. trip.com, jd.com pinduoduo. >> thanks, becky, we talk to the ceo of american ierairlines that bill a better tan expected report it came on the same day verizon and at&t switched on new 5g service, not around some airports because of interference

concerns phil lebeau joins us with the ceo of united. >> thank you, andrew we will talk about 5g with scott kerby, joining us, scott, i know you have a conference calm coming up a little later on with some of the analysts, let's talk quickly about fourth quarter and the outlook. you reported a smaller than expected loss in the fourth quarter. how much did omicron the surge of it late in the month hurt your results >> well, as we've seen for the last two years, there is a lot of shore-term up and downs from covid. omicron impablgd rected resultse demand on our people being sick. we focused on minimizing losses in the short-term, really building the foundation for united being the leader airline on the other side of the crisis. we feel nothing has change ltd.. there continue to be short-term up and downs as new waves or variants come out from covid

the long term is we feel confident as ever in what the long-term future looks like. >> you did reiterate your guidance for 2023 as well as through 2026 basically, your two-year and five-year projections, but are you brigg down your capacity in 2022, you are expecting a it graer than expected loss in the first quarter. are you fairly confident you can swing the profitability in that second quarter >> well, we don't know for sure what will happen with covid. it goes up and down, certainly our current forecasts are, if when continue on the trajectory of bookings, and they have started to come back we've certainly bottomed from the omicron impact they're looking stronger, particularly as you get to february and march and beyond and our forecast is that we will be profitable in the second quarter. of course, that depends on omicron, that can change there is a lot of uncertainty related to the veers but our forecast is we will be back to profitability in the

second quarter. >> scott, let's talk about 5g. a lot of people look at what's happened over the last week and say i have no sense of when this is going to be resolved and how long it will take, let alone why we got to this place what is your sense in terms of when you and your suppliers who supply the altimeters and the other key equipment will be able to say with conviction we're good to go with 5g being turned on at all of the airports in the u.s. >> well, in hooepdsi hindsight, wish we had results sooner we are in a position where there is a good road map we can have fullsome rollout of 5 go without impacting aviation a huge credit, thank you to the administration, secretary buttigieg in particular, also hans and john the ceos of verizon and at&t who agreed to this voluntary it would have had catastrophic impacts. the good news now everyone is working together and you know

this has been done in 40 other countries. there are some limitation around airports in all of those countries. we can do the same thing here in the united states and successfuy roll out aviation and not have an impact. i am certain and confident we are on the road to do that now. >> do you sense we get there let's say within a month, you guys can say, it's all done? or do you think it will take longer >> i think what's really going to happen is the manufacturers of the altimeters along with the aircraft manufacturers will work with the faa and telecoms, in particular and create a roadmap, a rule book of how you deploy near airports, what the power levels are, the altimeter directions are that will give clarity to all telecopies and there will be an approval process it will become a routine process for you go

through this routine approval process. there is a model everyone agrees on and understands it doesn't exist today it does exist in other country it will exist here once we have that, it will be a routine part and the telecoms will be able to rom out 5g for all of us really everywhere that they need to. >> scott, what itself the problem technically? i don't get it is it a problem with the 5g ora tim ter in the wide body planes, especially for boeing? where is the problem >> the real problem is interference with the altimeters, the bands are close enough, if the tower is too close to the airplane, it creates interference, that's a known fact now sometimes that's as small as 200 feet sometimes it can be a couple miles. you get spurious snachltignals

it controls the pitch control, everything on the airplane that's accurate today to within less than a foot so the landing for a triple-7, for example, is dependent on the radio altimeter giving those very accurate readings if you now say you get spurious data and you have to turn it off. that means a triple-7 the pitch is turned off. you can't land the airplane. pause that radio altimeters is so built and precise, to built for safety systems and you have to turn all those off if you can't trust the data the solution to this is going to be just getting the right power levels, the right antenna direction in the right location for towers we can turn all the towers on without getting spurious data into the altimeters. >> is the a problem, should the fdc never have sold the spectrum i'm flabbergasted we spent $80 billion building it up, the week

it's supposed to turn on, oh, by the way, this causes a serious safety issue for airports. >> it has been a little alice in wonder lands to go through it. thanks to filing before it got to the brink of getting it done. look, the faa and the ftc have to work together our government actions need to work together. they can't work in ice lakes they need to work with each other and find solutions look, we're going to get this involved now there will be plenty of time to figure out what we would have done differently i wish all this had been done earlier. but it wasn't. we are where we are. the good news is, it now has industry involved instead of it being two agencies working with each other the airlines, the aircraft manufacturers, the telecopies and the commitment manufacturers are involved we western involved before now all of us are involved that's why i am confident we will get to ultimately get to a

solution that it's now escalated to the highest levels of the faa, administration, secretary buttigieg we got the right people focused on it that this gets involved for everyone >> hey, scott, yesterday we had hans vestberg from verizon on. i asked him point blank, would you feel comfortable and safe in a plane landing at an airport effectively where this ag service was turned on. he said yes. would you? >> look, i come from a different industry and i have immense respect for hans and immense appreciation for him agreeing to voluntarily. but the standards we have in aviation are 10 to the minus, 10 to the 9th power on safety and you know we simply don't compromise on safety and when the faa is telling us it's not safe to land, one, we don't have any discretion in that but, two, even if we did, we wouldn't do

it so at least the 10th to the 9th power safety, i would not be comfortable flying those aircraft with passengers on board until we get it resolved the good news is we're going to get it resolved. >> i had to think 10th to the 9th. how did the max that software that's nowhere near 10 to the 9th. it's like 10 to the 1st. how did that slip through in. >> you know, that, we can, we don't have enough time to debate that on air right now. but that was an unanticipated error. it didn't get into the process the right way is really what happened. >> 10 to the 9th is so pitch we used to do 6th signal when we were owned by ge it was kind of a goal. i don't want if anyone could achieve 6th signal or 10 to the 9th. go ahead. >> joe, look at it in the united states, we have gone a decade with a single fatally. we carried well over a billion passengers in the united states. >> don't talk about it

are you right. it's unbelievable. it's an incredible safety record >> unbelievable. let's not talk about it. okay thanks, scott. >> scott, this is phil one last question here from we wrap this up, you were very bullish regarding summer plans and what you expect people to be doing in terms of trans-atlantic travel do you think still we have the prospects of a record summer when it comes to trans-atlantic travel or do you sense that because of omicron, because this keeps getting pushed out, it's going to be strong but it may not be as strong as maybe we thought six months ago >> no, actually, we think it's still probably on track the anything, omicron confirmed what we thought the long-term trend which is covid to move into the endemic phase, where all of us around the globe learn to live with covid instead of going into lockdowns. we didn't go into lockdowns this time there have been behavioral

changes, particularly return to office in the short term but we are starting to learn to live with covid and the truth is, if are you vaccinated. we have great statistics at united because of your requirement. we have 3,000 employees that got covid but because they're all vaccinated, zero hospitalizations, zero deaths in the last ten weeks it's remarkable how much vaccines protect you so particularly with that, i think as a negotiation as a society, we're move nook the endemic phrase where we live with covid instead of going into lockdown when covid happened i think we will have a strong as i remember as a result >> scott, thank you very much for joining us, scott kirby, ceo american airlines. we heard this, once you get past this surge, they expect we will see strong demand and strong travel trends especially as you head through the spring and into the summer >> right coming, people are ready

i'm telling you, it's all built up a lot of plans i'm making them, thanks, phil. coming up, we are live with new jersey phil murphy what an honor and privilege to serve as the garden state's governor one of the greatest states in the world i think. we will talk to him about all things covid when he comes on. next, smaller tech companies choorg oncheering on new anti-trust legislation "squawk box" is coming right back

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the senate judiciary committee will be discussing issues today there is a lot of talent from the bugger companies ylan mui joins us on more of

what this legislation is good morning. >> reporter: good morning, becky. well, it's not just congress looking to reign in big tech today. the push is coming from inside the industry the ceos of big tech rivals like yelp and sonos met with top white house officials yesterday to explain why they feel they are getting squashled. they are also a part of a new coles of startups and founders around the anti-trust bill debated today. the american innovation and chose online ac was introduced by democratic senator amy klobuchar and republican construct grassley the goal is to pre ven in the dominant platforms from preferenceing their own products and discriminating against near smaller rivals the bill targets apple, amazon, meta, google, they're deploying massive amounts of cash to fight it, warning services like free shipping on amazon prime could

go google calling this bill vague it claims it will break products that help consumers and small businesses it says this measure is only benefiting a handful of companies who brought those suites to washington becky. >> thank you very much we will continue to watch this and see what happens w > when we come back, though, nenumbers of jobs will claims after this we'll be right back after a quick break.

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. welcome back to "squawk box" on cnbc. we got weekly jobless claims and new manufacturing numbers hitting the tape as we speak rick, the numbers, sir >> our initial jobless claims for the week of january 15, 2 ex-000 much higher than expected. this follows at least for the moment an unrevised 230,000, 286,000. wow, that really brings us back into some of the levels prior to testing those 50-plus year lows we had under 220,000 we look at continuing claims, a week in arears, 1 million

635,000. that's, of course, up from 1 million 515,000. that was not only a post-covid low on continuing claims last week, but it was the lowest level in 48 years and lower than pre-covid, which is 1.7 million. if we look for philly, business outlook, filmily fed for january are expecting fine, much stronger at 23.2 23.2 last month it was 15.4 to give you a sequential gps here come the revisions to claims they're not very large 230,000 last week only moves up 1,000 and now it's 286,000 and 1.559 changes to 1.551 subtle revisions have been popping in initial claims. not so much in weekly claims, still under pre-covid levels

remember, there are seasonal anomalies here as we say in chicago, if you seasonally adjust, you have to be 21 and 6'2. you have to realize these things make a big difference. back to you. >> rick, thank you we want to go over to steve leishman also looking at these numbers and his reaction what do you think, steve >> i think there is two things going on rick said it right, the seasonal adjustments is one issue around this time of year things get a little squirrely i think you are seeing a little omicron show up in this data we haven't seen a lot of sensitivity of the unemployment claims to different ways of the virus, in part because everybody had unemployment claims in previous waves especially because you remember they ended in september i think that's one it's nice to see the philly fed rebounding here coming in strong although the prices pain number was up the employment index was down a little bit but the new orders number was strong because the new york fed

number was not strong yesterday. so it's good to see philly fed doing well here, the manufacturers are moving ape long what i've suspect is happening is to the extent that they had to, employers let go of some workers because of the omicron wave but i think it's going to be very limited because of the tightness of the job market. so let's hope that this is the up were end of the impact of the omicron wave on joblessness. one other thing that's an important number this is the number that corresponds to the survey of the jobs number we'll get at the beginning of federal building f february for january. >> they moved the prompter i will go right into it. thanking steve we can both, we all oh steve it's just that simple. we all will chime in pecky, will you thank steve, too, please. >> thank you, steve. we love you. bye-bye. >> thank you, steve. >> joining us now the senior

strategist for active fixed income at lgim america anthony, let me just take a step back and pretend we are flying at well now we can go up with branson, it's 30,000 seat not high no. let's say we're at 150,000 feet, what do you think rates, where should rates be if there was no covid based on where the economy is right now and based on 100 years of history? that's what i have trouble dealing with i was used to 6%, 7%, in a good economy and i just, i mean, is it terminal place where we're going 2.5% is that a normal world, anthony? >> sir, i think you hit the nail on the head here if didn't have covid, rates would be materially higher nevada, we are bearish on duration we are on the front end of the curve because we think rates

will move higher during the course of the year while it may be tactically advantageous to cover a little of the wage in front of the hit in front of the fed, we think travel is firmly higher given the fact the economy remains robust, delays in the market unemployment rate is 3.9%, we low the fed's unemployment we think rates should march materially higher. we see rates going as high as 2.5% by the end of the year in the ten-year space. >> anthony, do you think the fed is the cart or the horse at this point? will the fed just be catching up with where the market takes it or can it actually get out in front and actually be the, you know, control its own destiny, so to speak? >> so, we have been arguing for the last six-to-nine months that the fed was falling behind the curve. i think what you have seen in the last month to two months is a recognition of that by the

fed. initially, if you look back six months, the fed wasn't pointing to one rate hike in 2022, now you see the fed in their december statement has bakal lip pointed to three hikes if you look at a recent hawkish fed rate that's come out now they're suggesting four hikes can be on the table. not only four hikes but the inception of balance rate they are anticipating could be on the table the rest of this year. so i think it's a combination of both i think you see the market is getting more worried about inflation. it's causing increased consternation from the fed now you see they are getting caught up to where the economy's fundamentals truly are >> in the history books, the lost 20 years would you say have been a period of secular disinflation i think we can safely say that wouldn't you say that vince vogueer or longer in the books secular disinflation, right?

>> i think that's a fair point i would point out we have seen an inflexion point in terms of the fed's inflation. before the fed was prohibitive they were proactive in combating inflationary precious, since the onset of the pandemic, they moved average inflation targeting framework. what we saw is the fed become complacent on inflation. they allowed pressures to build and build. that is why we see, we find ourselves in a situation where we are now, with headline inflation at 7% and core inflation above 5% year over year, so we've moved from an era of disinflation to an era of inflationary precious becoming more entrenched because of this complains complacenty by the fed. >> that's why i was going whether we have entered a period of secular inflation or at least no more secular disinflation and i'm wondering whether and what i'm asking is, is this supply

chain covid-related? will 2.5% do it to nip this in the bud in the next couple of years? or if it really is a new era of higher inflation that's built in to the way things are going to work, 2.5 doesn't seem anywhere near enough to take care of what could be a big risk in two, three, four, five years? >> we would characterize risk inflation being firmly to the upside for some of the reasons you just enumerated. if you look at supply chains, our base case is for supply chain pressures to ease. there are a lot of risks to the forecast, particularly the zero covid policy in china. so, for example, if you have a wave in china, a lot of faculties will close down and exacerbate the supply chain problems we have already seen. this has created a shallow environment for fixed income investors. what we anticipate to happen is

we are moving away from an era of exceptional monetary stimulus, where the fed and central banks provided a rising tide of lists to the era where we are moving to monetary tightening there will been creased demarcations between winners and losers so what we are doing if terms of fixed income, we are short on duration from a credit perspective, we're focusing on sectors to retaken pricing powers the selection will be very important and we're focusing on mid-stream, the energy space and constructive on sectors like banks versus being cautious on tech and pharmaceuticals >> we got to go. in a nut shell, the real terminal yield for where we need to go in this inflationary psych until your view would be what? and go out not just a jeer or t jeer or two or three do we go out five or 6%?

>> the fed 2 upon 5% we think higher. we think ten-year yields can eclipse 2% we think it's early to say 5 or 6%, 3% for sure. >> thank you, anthony. >> thanks. >> thank you. >> when we come back, new jersey governor phil murphy will join us on the states-level fight against omicron. we will talk about masking in schools and a new vaccine pan date for certain workers stay tuned you are watching "squawk b" d is is cnbc >>

well, would you look at that? jerry, you gotta see this. seen it. trust me, after 15 walks... gets a little old. i really should be retired by now. wish i'd invested when i had the chance... to the moon! ugh. unbelievable.

welcome back to "squawk box. i want to give you a look at the futures. right now it looks like the do you is up and nasdaq up 144 points s&p 500 coming in at 21 points higher. >> thank you, the united states nearing 70 million covid cases driven lately by the omicron variant we are seeing a sign of a peak in the early hardest hit states, that includes new jersey, the seven day average dropped nearly from a week ago it's up sharply from last month. it's on the minds of people here joining us to talk more about it is the newly minted governor phil murphy's second inauguration thank you for being with us. why done you get us up to date where things stand 12k3w4r good

to be back with you. thank you for having me. listen, early days without question what the numbers now for several days in a row feel like they are beginning to go in the right direction. cases, positive cases have come down, our spot positivity rate is still way too high. but it's a lot better tan it was a couple weeks ago hospitalizations have begun to come down each day so i'm knocking on wood. as i say, god willing, we have turned the corner. we have better days ahead. >> there are people wondering if this is going to be kind of theened of the pandemic as we know it. the beginning of an endemic situation. covid not going. so many people have had it, built up resistance, we have vaccines and treatments. do you think that's the case from here on out it may be smoother sailing >> i do, again, cautiously knocking on wood here. based on the many conversations that we have constantly with medical and scientific expert,, it does feel like we have never

thought that we would manage this to zero cases, that this would ultimately become an endemic, something consistent with a bad flu season, which you know we still endure but something importantly that we can live with, that we can get back to not just near normal but full normal behavior that is our hope and i believe as i say with cautious optimistic that's where we are headed >> you took a pretty strong stance this week saying you will require healthcare workers in hospitals and long-term care facilities and nursing homes to make sure they are not only vaccinated by also boosted and there has been one of the unions for those healthcare workers who has come out against that who said they are upset particularly the option of getting tested every week instead of being vaccinated is being taken away why did you take those steps >> so we took et iit in the u.s.

supreme court mandate and healthcare facilities. the testing option is going away in america in healthcare facilities period. that's not a new jersey-specific step the only wrinkle we've added, because we know the primary vaccination, of course, loses strength it wanes over time, is we added the wrinkle we need folks to be boosted. if you are in a healthcare setting, you are, by definition, vulnerable in terms of a patient or a resident. are you either older, you got some co-morbidity, some health circumstance and so we need everybody in those facilities, whether they're residents or patients to be fully vaccinated and boosted. we will give folks a few weeks of a runway to get there we want to be reasonable about this but we think it's the right public health step to take >> governor, we're, you know, i know you watch cnbc, you know

we're experts in money and things like that, right? you can get a lot of good tips from us. you have $10 billion you have $10 billion you have a surplus in new jersey, you when from the racks to riches for a tax surplus, would you please not just blow that is there anything you can -- remember when you were talking about the election, you are said, if you want to come to new jersey, it's not because of taxes. can you cut property tax will you just not blow it and do something to cut taxes can you do that, governor, will you promise me this is good advice from cnbc. >> i hear you, joe, i absolutely can promise you that listen new jersey by the way on both sides of the aisle historically whenever we've had some sort of a windfalling look at the tobacco settlement as an example or other monies that have come our way we've done a lousy job of making spiblresponsible long

decisionles. we're not going down that path we've had four, our four years are the lowest property tax increases on record. four of the lowest we've had 14 tax cuts for the middle class and seniors and working families but i don't want to just have property taxes go up less. i want them to go down i want more money put in the pockets of folks, whether it's direct, collection to middle class families or indirect relief, for instance, funding, public schools at the state level so the local property taxpayer is not burdened with that, but i absolutely commit to you, joe, to do the responsible thing and to have a very sharp focus on the long-term and on affordability. >> we tape these shows we tape these. >> i know where you live as well, so i know this is not abstract for you. >> you too >> governor, i was curious if you can react and get your view on what starbucks decided to do just yesterday

i think it's something we may see from other businesses. they have been relatively aggressive about vaccine mandates among their workers and testing. something that the courts appear to at least have allowed if corporations wanted to do it and in this case starbucks as i said have been aggressive at it, now pulling back what is your thought what is your reaction to that? >> i don't know the specific starbucks. i'm a examiner and have been for a long time. i do think as i mentioned earlier to becky's good question, congre gat facilities. we know people are sick or vulnerable have you to have the highest protocols in those communities that's why on the back of the u.s. supreme court we've taken the steps we've taken. i think you got to have. i was supportive of president biden and continue to in the private sector maybe not want as high a bar so

mandating vaccines where the testing optout i think is the right thing to do. that's what we have for state workers, educators i think it makes sense it's the smart thing to do in business or public . the economy is in pretty good shay when you look at the -- but inflation is going up, too. you've also go the some issues in your state in particular, the whole idea of s.a.l.t. taxes, that won't be readdressed. that looks like it's dead for now. i doubt s.a.l.t. would be a part of a piecemeal that means people in your state could be paying more, and at the same time they're not getting the child tax credits, the payouts on a month by basis. what can you do to help those citizens in your state hit particularly hard? is there anything else you can

do >> as i mentioned earlier to joe's question, we have done that we want to do more at the state level. secondly the s.a.l.t. cap is a direct political shot from the last federal administration. some folks have this theory that it only impacts wealthy homeowners, and my answer always has been you haven't come to north carolina this impacts the middle class. we'll be laser focused on whatever we can do, working with or congressional delegation. thirdly, got willing, be smart about using federal dollars. i'm good to post dr. biden and secretary of education, dr. cardona today in bergen county, to talk about partnering with

the federal government on smart fefl investments we're going to talk about federal money to support child care for parents hoar going to community college or mental health programs, or helping you with your tuition bill if you're overdue. are you saying you're not going to raise taxes elsewhere to cover things? i think in one of the debates someone tried to get you to say that would you be in cutting mode i'm trying to explain to my kids we do have very high marginal rates. if the 55%, let's just say, i

explained to them, well, you know, you have to work for governor murphy and joe biden until like mid july, then we can start making money after mid july does that come down to where i can't work, i don't know, june 1st and then start having some take home? >> joe, in answer to your very good question, the answer is gentlemen. i'm committed to not raising taxes i have a budget due in about a month or so. i have a passion to find ways to cut taxes. we already have, but we need to do more. no question about it but we're not raising taxes in new jersey governor, we appreciate you speaking with us

thank you for being with us. [ laughter ] okay i don't think he liked my question, either >> no. maybe that's -- >> i'm hoping jim will like my questions, though. we'll get down to the stock exchange where our good friend jim cramer joins us this morning. we have some new unemployment numbers. i'm curious what you think that looks like we're starting to see the omicron in there do the markets look through that >> i think we're beginning to see omicron slow down a lot of things i mean, maybe we could not be as aggressive, because we already talked it down already they analysts just want to give up on everything, for heaven's sake

i do think that -- you know, i got to tell you, we're looking for bad news is good news, i never liked that wow, that's great bad news, yeah, that's great, but it means numbers come down. >> is there anything on the nasdaq that set, just beat it down too far >> look, i think some of the semis, amd, that was cut today i think that was a wrong-headed cut. i think that can be picked up. i don't mind the faang names obviously i want to see tonight. everybody gets negative and we're getting oversold there's a lot of positive chat about apple this quarter, but i don't think it's as dangerous. i remain convinced in a company is not making money, you've got

to sell it. >> start working >> we'll see you in a couple minutes. >> can i just say the governor has done pretty good with the corid? -- covid he really has. >> jim, we will see you in just a couple minutes. we want to remind everybody, of course, about the new investing club .cu can find out more on cnbcom or shoot your phone at the screen squawk is coming right back. hat. 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. at fidelity, your dedicated advisor

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it pulled back a little at this point in the last couple sessions, down to 1.829.

then, as we so often see, they're all interrelated there's crude close to multiyear highs, or almost, almost 86.16 a lot of articles are being written that $100 a barrel is in the cards at some point. that will do it for us "squawk on the street" is coming up next. good thursday morning, welcome to "squawk on the street." making another attempt at a bounce here at wednesday's failed effort. american airlines a bit of a hit on earnings, but some downgrades today. the nasdaq in correction territory, as the street tries to claw back some of the losses. >> plus s.e.c.