good morning fi futures are under pressure after the stock comeback we will show you what is moving. today, the fed is kicking off the two-day meeting. that time of year again. oh, joy. and alphabet soup of earnings. we will hear from 3m, ge and j & j. and president biden ordering troops on the possible defense of ukraine after the possible russian invercurincursion. it's tuesday, january 25th "squawk box" begins roight now

good morning welcome to "squawk box on" here on cnbc. i'm becky quick with joe kernen and andrew ross sorkin did you survive yesterday? dow futures down 195 points. nasdaq off by 220 points if you lyou look at this on the percentage basis, dow down .60%. nasdaq down by 1.5%. this comes after yesterday's dramatic reversal. the dow at one point down 1,100 points during the session. that is before it closed 99 points higher. huge swing here. the s&p briefly hit a correction territory during the session down by 10% from the january 3rd record close that was before it closed higher as well. then if you are watching the

nasdaq, the turn around was more dramatic nasdaq down 4.9% during the day. it turned around and closed higher you have not seen a move like that in one day since all the way back to november of 2008 at the heart of the financial crisis by the way, bitcoin followed the technology stocks during all of this bitcoin during the day fell down below 33,000 32,982 that was the lowest level from july during the course of the session, it was up 5.6%. got back to 37,183 it is up slightly. treasury yields. people not watching that as closely. the ten-year yielding 1.78%. it was fear on the street. you could read that by the vix the fear index the highest level since october of 2020.

the vix at 38. the intraday high is back to 32 this morning a lot of things rolling through all of this. if you want to add it up and figure out where we are after yesterday's moves, take a look go back three months dow is 7% from the all-time high with the s&p at 8% from the all-time high. nasdaq under pressure. 14.5% from the all-time high we will see how things get through the day. quickly, guys, to run through the other index. russell 2000, almost in bear market territory yesterday, closed up. managed to end up 2.3% it is 17.3% from the all-time high transports up .25% wti was the one thing that was down at the end of the session yesterday. down by over 2% to 83.31

ark. cathie wood and her technology ark innovation fund. that bounced back. that had been down for the session. it is still down by 22% for the year >> we don't get a closing low with the s&p in correction territory. >> no. >> if it were to go up from here, the streak it had at 10% correction in x-amount of time. >> wouldn't have been broken >> i'm not ready to say that i was saying, you go out with the risk and type of moves you saw and rebounds you saw were proportional the dow, okay, 3% will get your attention. wiped out 3% and closed up nasdaq was down 6% in a single session. it came back that makes it 6% move. bitcoin may have closed up 5%.

on the lows, it was down like 15% or something to go from 32,000 back to 37,000 that is a 15% move 5% move under states >> that correct. >> do you see this as a capitulation day >> yesterday the flush? >> i'm not sure. on the day with the reversal in the middle of the day. i'm not sure. >> 3% on the dow and nothing past 10% except the nasdaq maybe that is all you need to do people pointed out individual names are worse than what you are talking about. some are 30% a lot of damage from the high flyers is it enough for everything has bottomed already you think not. >> cramer was saying he would like to see a selloff in the morning and recover from today

rather than coming in with things looking better and turning weaker later in the session. >> yeah. i saw something about bitcoin somewhere. it was like, wow after all this, it was something about how you get to do this if you want bitcoin -- they are moving the people that like bitcoin are moving full steam ahead. although it is down 50%. i don't know how that works in the exchanges and advertising and stadiums and you watch tom brady and matt damon. >> the money's invested. they have to do it they're locked into it >> if it is the worst-case sce scenario the bears say if it got to this point -- i have no idea. pretty good bounce yesterday bitcoin. all the way back to 37

>> talk about risk you know what? i'm not sure the markets are thinking this is a risk they're considering. the fed and 100 other things. u.s. now placing a bet with 8,500 troops on stand by to central and eastern europe to shore up defenses ahead of the potential invasion by russia president biden held a call with the european counterparts yesterday discussing efforts to combat russia. cnbc learned russia necesgotiai for natural gas. the u.s. is considering banning chip exports to russia possibly cutting off that country to cars, computers and more senators from both parties are

in active talks to finalize agreement on russian sanctions that can pass with bipartisan support. something that we normally talk about in the context of the markets. maybe not. i don't know how you think about the puzzle of what is happening at the moment and this factors >> i have seen it said that it is back to the fed a russian invasion of ukraine could cause the fed -- okay, we have this invasion what could happen is it changes what the fed does. everything relates back to that. here is what i was talking about. i don't know if you saw this this is in the journal online banking was a weird idea at first that's the bitcoin symbol. it is all about bitcoin. we are hoping banks and credit unions. >> who paid for that >> make bitcoin more accessible than ever. there are all of these famous banks down here.

we've all heard of that is what is weird. a weird juxtaposition. >> who paid for the ad >> ny dig. bitcoin for all. juxtapose. down 50% >> the last three days, you heard stories of people who could not access their accounts and when something is new and not up to speed for some of these huge surges and moves in one direction or the other that would be concerning if you were looking to try to sell and get out of it i did hear a lot of stories the last three or four days. >> a pretty high do we just assume it is here to stay, andrew >> probably. >> it is here to stay? >> i think it is here to stay. do i think it has to be valued at 35,000 or 40,000?

no >> 100,000 >> it could be more. it could be less i have no idea. >> you are like what's his name. henry. i'm going out on a limb. it's worth either $1 or $1 million. it can go either way that was henry >> the truth is and jamie dimon and warren buffet said there is something to the block chain technology does it have to be bitcoin or ethereum that is what nobody knows yet. >> funny you mention that, andrew there is a piece cryptocurrency doesn't amount to much that's in the journal. they say, okay, block chain is relatively interesting a couple of things it's true, block chains achieve

bookkeeping without a bookkeeper than allows you to make transactions anonymously, but the innovation ends there. our financial system is more sophisticated than that. this was written by an academic. saying there is very little here in value to it that's interesting these papers are invaluable. >> i will agree with that. very little inherent value to it we talked about this i could dig a hole in the ground it could take energy for me to dig the hole if nobody wants the hole, the hole is worthless. it doesn't matter how much energy or labor i use to dig my hole. >> even gold going back. it is used in jewelry. it is lasting. it just represents something that is why they think bitcoin is it. a lot of things used for

currency don't have inherit value. >> i get it. this rubber bracelet that i wear everyday with my kids' names o it could be a symbol to somebody and worth something. >> that is not adopted in your family >> we all have them proudly. the sorkin seven it could have value. that's the point becky is whistles. she wants us to move on. shares are higher in the pre-market after beating estimates. sales surging 6% for ibm we are watching shares of nvidia the company is abandoning the ability with the chip company with soft bank

it doesn't expect that transaction to close the report says that softbank is preparing for an ipo as an alternative to the nvidia acqui acquisition. it drew backlash from the regulators in the united states and chip industry. it is expected to face resistance in china. check it out when we come back, cryptocurrency bouncing from the lows yesterday we will dig deeper into the move next. let's get a look at the pre-market decliners in the s&p 500. this is "squawk box" and you're watching cnbc. >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com.

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bouncing back from yesterday's low. it was off 50% from the all-time highs. the move lower is similar to the major markets which continue the downward spiral. compared to last year, the correlation with the bitcoin and the major markets are getting stronger g joining us is katie stockton katie, it is great to see you. we have a lot to talk about. not just bitcoin let's start there. what are you seeing with the levels if it falls below 24024040,000 that's a concern >> it say pivotal week for bitcoin and the equity front as well the volatility has been real it has been wild you see he it in the volatility index or the vix

for bitcoin, this 50% down draft has brought it into what i see as key support this is around 37,400. it is based on something called the cloud model. it is a popular technical model for all currencies, including cryptocurrency this level, in my work, defines the long term up trend that means a couple of weekly closes below we have one last week. that leaves the breakdown pending this friday. that reverses the long-term up fr trend. we have the same momentum. you see that in something called the monthly indication which is another popular tool which has been popular for bitcoin since june of 2020 bitcoin then was below 10,000. it is a significant shift. there are a lot of indications broadly speaking for bitcoin and

other risk assets that we should see more of a near term bounce that could help avoid a breakdown. it is hard to picture a market in which equities are trending lower and bitcoin is doing well. >> what happens if bitcoin closes above 37,400. that line you suggested is important? >> it preserves the long term trends we had a bearish move. it does preserve it. that is something that is really a problem for the markets in general right now. we're making comparisons to early 2018 as it pertains to the s&p and nasdaq bitcoin has a greater correlation with the down draft year to date compared to last year i think all of these risk assets are becoming correlated because of the down draft in part where

folks are penalizes risk assets. i see similarities in the charts that the indicators are seeing the down turns that tell us we are getting into a range bound environment like we saw in 2018. the s&p lost 12% in the first quarter. rebounded 15% and then nasty down draft toward the year end of 20% at the end of the year, there was not much progress at all it really dictates the intermediate outlook if you want to beat the benchmarks >> we should look at the charts. if this is more important, this is a bigger issue. if we look at the s&p and we look at the end of the week, where would you look to shore up the s&p and nasdaq and so many of the major averages and beyond the s&p at 4,410 what needs to happen >> for the s&p 500 and nasdaq

100, the damage is already done for the technical perspective. those breakdowns, at least short-term in nature, have been confirmed. the market internal with breadth and leadership and sentiment is sold here and do show strength we are recommending they use that to reduce exposure and increase hedges which we have been recommending to avoid this 2018 early year corrective phase. after which we will look for more indications from our intermediate term indicators we have short-term indications for bitcoin. what we want to see is an end to the corrective phase which is a bit more out of the intermediate term gauge e even a strong relief rally would not fix the damage done. if there is 3.5% room right now, that we could see in terms of

the magnitude for the bounce a lot of people would welcome that as they watch the mega caps compete. >> a lot of people on wall street with the damage think you will see higher markets by the end of the year. is there anything that points to that or is it too soon to say? >> i feel like it will be more of a range bound environment overall. the long-term up trend is in tact along with the long-term segment momentum that is the only case to be made in my opinion for the upside this year. the long-term up trend hasn't been broken. it has been broken for the russell 2000 index it was range last year and broken down from the range that one is down trending to some degree,degree, in my opini.

if you look at the signals in 2018, the indicators are flashing sell signals for the first time on the monthly charts those signals have implications for nine months. you combine it with the deterioration in the long-term momentum gauges. they have a similar 9 to is12 month indication it doesn't give us a sense where we will be year end. it won't be in 2020 or 2021. >> katie, thank you. we will talk to you soon. >> sounds good >> thanks. becky, the ge numbers are weird. the stock might be down. there are two lists of earnings per share we don't need to worry whether there are items involved there that is below expectation. it gets stranger when the

adjusted number that i'm seeing on the wire services is 82 cents a share. the company is giving adjusted number i don't have glasses that looks like a 9. 92 cents a share is what the company says i don't know if it makes a difference since the estimate is for 83 cents i tend to believe the company on this unless the adjusted number is in debate as to whether you include items. on the new service, it says 82 a year ago period and industrial free cash flow is $3.8 billion that is down year over year. orders down 4% organically as we said, industrial organic revenue -- 20.3 is the overall

revenue. industrial organic revenue was down 3% year over year operating margins. industrial, that is up 280 basis points it was an 8 for 1 or 1 for 8 you can do the mask on that. over 100 for a while after that reverse split. now you can see he whether it is responding to the bottom line number fourth quarter loss if you use gap. a lot of restructuring and everything else. you back that out and you get an adjusted number that according to the company would be above expectations revenue is below a lot of comments from larry we can intensify efforts to strengthen operations and lplay offense. i don't know about the bounce.

>> they are giving a full year 22 outlook on a new basis. as you mentioned, there are so many changes on that organic relatevenues are expected to expand by 150 basis points adjusted earnings per share. i don't know what the street is going to be on that. also free cash flow of $5.5 billion to $6 billion. none of that is helping the stock lines. johnson & johnson earnings meg tirrell has those numbers. meg. >> reporter: andrew, it looks like a mixed quarter for the fourth quarter sales were light

$2.13 billion opposed to $2.12 billion. each one missed estimates for the quarter. however, the 2022 guidance coming in quite ahead of what the street was looking for in terms of sales and earnings. sales forthe full year of $98. billion to $100.4 billion. that compares with the estimate of $97.81 billion. guiding to $10 that could be because guiding to $3.5 billion in sales for the covid vaccine. analysts put in $870 million into the vaccine you are not seeing much of a move a lot to talk about in the quarter and what they are looking for in the full year we will have the cfo joining us

in 15 minutes to talk about it. >> thanks, meg becky, this is the fourth quarter, obviously adjusted number for next year. the street is at 350 normally whenever we do any of these things, the caveat that there is something that analysts did not know about 280 to 350 quickly, that is not $4. the low end of that is way below. >> they breakout on old basis and new basis. i don't know if there is conf confusion. >> those people don't seem confused >> people are running out of stock. >> they don't seem confused. you remember the staples center you know who plays at the s staples center the lakers and kings

crypto.com arena wasn't enron a good stadium for a while? i think enron was a good stadium. >> what was the dot-com stadium in california? >> that doesn't mean anything. >> they are locked into the deals. >> i don't know if the lakers play there it is here to stay if matt damon -- matt damon. bourne himself >> doesn't mean much >> i would rather have bitcoin than the bracelet he wears. nasdaq sharp decline taking a toll on billionaires. we will run through the big losers after the break >> announcer: this cnbc program is sponsored by truist securities ferent than the last.

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welcome back the earnings break continuing. 3m reporting and coming in with better than expected earnings. revenue came in at $8.6 billion. the street had been looking for $8.5 billion 1.6% organic growth in the quarter. mike roman talking about the strength in december that is something if you were going into the end of the quarter. he said that the team really managed this in a difficult environment. talked about the supply chain disruption he said they made good progress and controlled costs they are not giving guidance they will give that in the

conference call later. look through the numbers it looks like better than expected across the board. the stock right now up .70 that is in the down market with the dow down 170 pounds right now. joe. thanks, becky. what is the ceo's name >> mike roman. >> okay. good to know >> he's been there for a few years. >> ceos change a lot i have seen ten ceo changes at a lot of the companies our job is better, sorkin. our job is better. we don't get in and get out and go off on the boat we have a little more job stability. >> the average ceo interestingly, the average ceo was in the job for a period for four years i think it is closer to six or

seven years right now. >> that's what i thought. >> feeling pretty good about myself all of a sudden the top billionaires on the planet losing a chunk of wealth lately except for one standout robert frank joins us with some billionaire losers we don't want to forget the last three years which preceded these little pull backs, i don't think, robert. >> reporter: no, joe put it in context. we will say the top ten b billionaires losing $136 billion in stock wealth elon musk down $30 billion more than 10% of his wealth. he is still the richest man in the world with $240 billion. he had the good fortune of selling $16 billion of stock most of it at $1,000 a share or higher tesla down yesterday to 857 before rebounding and ending at

930. jeff bezos is now at 169 mark zuckerberg down 10 billion. the google founders are down $11 billion each one billionaire in the top ten who gained wealth which is warren buffett now ranked eighth in the world with $111 billion. he vaulted ahead of the only other non-tech member of the top ten. he is down $20 billion on concerns of the china economy and lockdown there is and broader luxury spending. if you look at the total wealth lost in both stock and crypto markets, we're down $1.4 trillion in crypto the u.s. stock market has lost $3 trillion in market cap year to date. this is not just the

billionaires, but retail investors and retirement accounts guys. robert, thank you. >> a longer conversation a lot of earnings on tap today when we come back, the cfe of johnson & johnson wilt breakdown the quarter. check on the the meme stocks a year since the gamestop mania. we will talk to the reporter who wrote a book on it saying the res retail investors are getting fleeced. >> announcer: executive edge is sponsored by at&t business keeping your business connected. s need something different. oh, we can help with that. okay, imagine this. your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, like asap! so basically i can pick the right plan for each employee. yeah i should've just led with that. with at&t business. you can pick the best plan for each employee

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coming up, warning that retail traders who lost money in the meme stock frenzy may not come back. we will talk about that which happened one year ago. and a wild day on wall street we'll back after this. they saw r adapts to different oxygen levels and starved it. i am here because they switched off egfr gene mutation

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the amount of anger that these retail investors have toward the s.e.c. and hedge funds. after having made awful investment decisions, frankly. i'll be frank about that people buying amc at $72 or gamestop at $400 and openly crowing they don't care about fundamentals and wanting to blame others when they lose money in these trades. it's frightening i think it might be a good case study in behavior finance going for forward. >> that was jim chanos yesterday. joining us to talk about the meme anniversary of gamestop we have spencer jakab with us.

that's where i want to start, spencer. that second part of the headline, the title of the book. "the fleecing of small investors" was not the story we were told a year ago. >> no, the first part of the title is the revolution that wasn't you thought a group getting a twofer making money and giving wall street a black eye everyone's headline said the same thing i was amazed and everybody was amazed a great story. i tell parts that have not been told before. i tell it in terms of going back before the story and showing how it all came together it is a fantastic case study as jim chenos just said to some extent, investors were

fleeced by wall street because wall street gets rich. they keep too much of your money. >> spencer, explain this to me i see a lot of retail investors who lost a lot of money being quote holders. not necessarily crypto, but that, too. when it comes to amc and other stocks you go on reddit and there is still a community that is not just holding, but telling others to buy >> it is weird this has continued to be a story. much to my surprise, it is like one of the dooms day calls i don't want to insult the intelligence of people old boards they are saying the mother of all short squeezes and phanton squeezes and put your meager savings into the sells

don't believe what you read. keep on holding. then the squeeze doesn't happen. just like the end of the world doesn't happen people still pretty much believe. it is kind of sad because as jim alluded to and this generation will be turned off investing that will be critical if they don't invest if enough people don't invest in the next 40 years, that is bad. >> do you believe this has a meaningful shift with hedge funds manage their book with short selling? has this made some step back and say i don't want to get in here because of the social media enabled mob to move against me do you think it changed the way ceos think about communicating with the shareholders? >> okay. let's give you a three-part answer yes. hedge funds are to the teeth

against social media uprising. they pay companies or they have people who go through the boards and they have computers to read the boards quicker than a person can read them. they are armed against this happening in the future. the second thing is i think this is giving short sellers pause. that is bad for retail investors, if i can put that out there. short sellers are seen as an evil group they find the enrons and they make sure the prices are more approximately correct. when short sellers take it on the chin, it makes it a dangerous environment for less informed investors to buy stock. third, adam aaron comes to mind. he embraced the movement i see those people as really cyc cyclical they have sold hundreds of millions and in amc, over $100 million of stock they cashed out of $90 million of shares at the same time

i'm just selling these for tax purposes don't mind that. they roped them in that's really the whole story. rich people got richer and ordinary people thought they were going to get rich some did some say i made a lot of money on gamestop. as a group, they he didn't it wasn't a positive financial experience for the bulk of people which is why it is the revolution that wasn't. >> spencer, the book as you mentioned. "the revolution that wasn't. a great read thanks >> thanks. johnson & johnson releasing results. we are getting news from pfizer. meg tirrell is joining us with that meg. >> reporter: joe, let's start with pfizer news company saying it has started a clinical trial of the omicron targeted vaccine candidate this is an adult ages 18 to 55

they will test this in multiple ways one as a primary series and booster for folks who have not been vaccinated before getting three shots of the omicron based vaccine. they are testing for a third shot and fourth as people who had the original series and booster. they are testing a fourth dose of the original vaccine as well. trying to get a sense of options across the board and trying to bring those to regulators to make decisions later this year to figure out what to do next when it comes to the covid rack s vaccine. we will turnover to johnson & johnson which reported results this morning a mixed quarter. a blowout 2022 guidance. joining us to discuss that is the financial officer joseph wolk joe, thank you for being with us put into context the fourth quarter and the guidance

start with the quarter >> good morning, meg pleasure to be here. i focus on the year of 2021. despite the ambiguity and confusion and recovery and non recovery, the year was a very solid one that was really turned in by johnson & johnson. if you looknonrecoveries i thine year was a solid one we had 13% growth on the top line we leaned into expectations this time last year for the year and we surpassed those if you look at our pharmaceutical unit, tenth consecutive year with above market growth and the pipeline is stocked medical devices saw improved performance versus 2019 as well as 2020 obviously. and then consumer continued to grow competitively despite some supply constraints throughout the system if you look at the fourth quarter, though, you're right there were a couple of head winds in there that make it a bit cloudy the first would be just the

strengthening dollar that impacted our top line reported sales from probably 150 to about $200 million. that's a disconnect from some of the models out there we also did see omicron as you mentioned as well as hospital staff shortages creating some uncertainty especially with elected procedures in the month of october growth versus 2019's october was about 10%. in november that declined to 5%, and it was minus 1% in december. so you saw that decelerating trend, nonrecovery, if you will. in consumer we had some supply constraints did hit us with raw materials, labor shortages with respect to really third party manufacturers as well as higher transportation costs that are starting to come through in the pnl. we think those are short-lived we think the second half of 2022 will be stronger than the first half

but we feel very good about where we sit for 2022. and that's underpinned by investment in rnd, close to $15 billion in 2021 breaking the record setting year we had in 2020 so getting very close to hopefully net cash, lowest level of net debt we've had in years, so we think we can lean on in some of of our other capital priorities as well >> let's talk about what you're kind of mapping out for the year to come. the entire industry looks to j&j as a bench mark especially for what's happening with hospitals. how are you looking at the impact of omicron early in the year and when you kind of start to see that potentially easing up >> yes, so that negative 1% i mentioned in december versus 2019, which is much more normal year for comparative purposes we think that will linger into january. as we're seeing now case counts have gone down it's become much more of a discussion with hospital

administrators and you've heard this from some of our competitors around the hospital staffing shortages, we've had discussions with significant leaders from large hospital systems and nurses who have done an outstanding job and really given a lot of sweat over the last 20 months they are now covering ten people when it used to be five during a shift. so those are things that really need to be addressed if we're going to come out of this in a much more robust way, but we do expect improved recovery as the year progresses. >> and in terms of the capital allocation for next year, you know, the biotech space is hurting really down from 52-week highs in terms of valueiations how does that impact the way j&j might be looking at the table? >> mna is on the table for us just about every year, but we're starting to see very bullish about the prospects as we to

some rvolatility in the market we're getting very much towards a net cash position. we think this could be an opportunity for us in 2022 to lean-in on the acquisition front, not just for biofarm which we presented and expect growth through 2025 but also in our med tech business. we announced in november the separation of our consumer health unit. that will not slow us down if we find the right opportunity >> i know folks are really curious to hear more details about plans for separating consumer i know it's a long-term process, but what more can you tell us about anything firming up on the timing of that or what it's going to look like >> it is a long-term process we have a largely independent team working on the separation this morning we'll share with

the investment community we plan to make executive appointments some time during the first half of this year in the middle of this year we'll likely have a company name, company headquarter location and in the back half of this year we're probably hone in on a specific pathway, give some financial information with respect to stand up costs as well as any short-term costs to synergies. >> and last question for you, you know, the covid vaccine, the guidance for this year 3 to $3.5 billion in revenue. i understand you're still doing this a on a not-for-profit basis. what what point does that switchover and become a for profit enterprise for you guys >> that guidance is based on advance purchase agreements already signed that is largely for 2022 at least for lower and middle income countries so that not-for-profit price will be in place, and that's what's reflected in our guidance as we move along and sign

different agreements we'll update on a timely basis and evaluate the proper pricing. >> all right, thanks so much for being with us this morning we really appreciate it. >> thank you, meg. have a great day >> meg, thank you. when we come back billionaire investor sam zell on the biggest trends in real estate after the pandemic, the impact of rising rates, the meta verse, what he thinks about what's happening in the market these days. and later kyle bass gives his takes on the market swings we're seeing, what he's buying and more let's take a look at the futures right now. things have taken a leg lower for the dow at least now down 270 points the nasdaq off by and looks like another wild ride potentially today. things just gearing up you n't ntdowa to miss a minute. you're watching "squawk box" and this is cnbc

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day. stocks set to sink again after yesterday's nearly historic market comeback. futures are down this morning. we'll hear from sam zell on the volatility, inflation fears and much more. the fed kicking off a two-day meeting. how much of this volatility and really about j. powell and company, though? we've got the results from the latest cnbc fed survey and u.s. troops on alert over fears of a russia-ukraine conflict we'll get a live report from washington on the latest second hour of "squawk box" begins right now good morning and welcome back to "squawk box" right here on cnbc. take a look at u.s. equity futures after what was a wild day yesterday. looks like could turn into a

wild one at least this morning dow looking to open down after what turned out to be an up day at least for now dow off about 260 points, nasdaq looking to open down about 260 points sno we've got so many earnings reports, too, to talk about. here's what's making headlines at this hour shares of ibm and the company reporting better than expected profit and revenue for the fourth quarter on the strength of its cloud business. the stock initially surged and moved back and forth after the company declined to give an earnings forecast. meantime moody's upgraded tesla by two touches with a positive outlook moody's reflecting its view tesla will remain the manufacturer of top vehicles and did however, the introduction of competing electric vehicles should start to pressure margins but they say won't happen until 2023 the fda revising its emergency

use authorization to limit the use of covid antibody treatments made by regeneron and eli lily the fda noting rival treatments made by pfizer and merck are expected to work against omicron. of course those drugs are a bit harder to come by right about now. american express just crossing wires with its results. fourth quarter earnings coming in at $2.18 a share. revenue also coming in about the street's forecast. the stock is down by about 1.62%. the ceo does say they were able to reach record levels of card member spending during the quarter and increase their new card acquisitions. they're just saying now for the longer term based on what they've seen so far revenue

growth in 2022 they're looking in the range of 18% to 20%, earnings per share they're saying $9.25 to $9.65. i think the street is just above that the street is at $9.57 down by about 1.25% even though strong results for the fourth quarter. >> a $1.31 was the adjusted number versus $1.28 and the revenue number was above expectations, $34.1 billion, the estimate 33.$.95, so it's a little bit above wireless. retail post paid turn 1% net fios internet customers up 51,000 net fios tv customers down 69,000 so the company saying ending

with strong wireless service revenue growth for the end of the year and when it's all said and done it's up about 4 cents. so can't even get a pack of gum. >> we've got some other earnings to talk about this morning just out general electric reporting an adjusted 92 cents per share. revenue missed forecasts, the companydid forecast higher profit and improved cash flow for 2022 you're looking at that stock up now for about 2% meantime johnson posting a mixed quarter reporting better than expected earnings and lower than expected revenue jury box also issuing an upbeat full year forecast that stock similarly off about 2%, a little less. and 3m beating estimates in both the top and bottom lines for the fourth quarter despite the impact on 3m's electronic and

transportation segment the fed is kicking off a two-day meeting. that means it's time for the latest results of cnbc's fed survey and steve joins us now steve with the latest results on the fed survey >> yeah. the latest and the most complicated ever market expectations have turned aggressive for the fed multiple rate hikes and significant balance sheet reduction. here are the fed expectations. the first hike seeing coming in march. that shows three are baked in the debate now in the market whether there's a fourth this year an additional three hikes expected in 2023 and the balance sheet runoff seeming to begin in july that is much earlier than the prior survey here's the first look how respondents think it could happen they look for $380 billion to

come off the $9 trillion balance sheet this year and $860 billion in 2023. most think it's going to be phased in and that is increase the amount of runoff as time goes by. the average respondent looks for a monthly runoff pace of $73 billion. the average respondent looks for $2.8 trillion to be runoff or about the third of the balance over a three-year period of course we'll listen to fed chair powell's press conference on wednesday for any guidance about the pace is fed is actually considering for balance sheet and rate hikes here's the long run look at the rate hike. so quarterly hikes are looked for at least for this year asked if the fed is moving too fast or too slow 91% of our 36 respondents said the fed is

significantly or somewhat late in addressing inflation. while the outlook for fed outlook has increased as has inflation, the outlook for unemployment went down and the forecast for growth, joe, went up >> you're seeing some of the latest about -- do you have any immediate data points on how much slowing we're seeing given, you know, i guess it's because people are calling in sick we know omicron, the hospitalization may not be what delta was, but a lot of people i guess aren't at work and that actually makes a difference on output >> absolutely. and obviously inflation. we saw some of the supplier surveys slow down. we saw chicago surveys slow down some of the fed manufacturing surveys have been okay so far. we'll wait to see. i think the market understands there was some slow down in december and in january. and the expectation is that

things pick back up in february. i think to my mind when i look at the overall economy i'm really interested in what happens in china, right, because you have the lunar new year which is a big rest period or vacation period for the chinese. and also you had the omicron shutdowns there, which are much more severe than we have here. so that's an issue for supply that could hit us a couple months down the road but the expectation i think, and yo and you talk to as many people as i do probably more about this stuff is by some time in february or march things will get going back again from this omicron variant assuming we don't have another one >> i was going to ask you -- then i also -- wow, i was looking up what year it is in china. it is the year of the tiger, water tiger but does that count for bengals you think? yesterday i saw people tweeting the fed needs to say immediately they're not raising rates

because we're down 1,000 points. there's always going to be that pressure, with a 3% move in the dow people saying the fed can't move they get pressured, but there is no put is it anymore or a much lower strike price on the put before you're in the money? >> i'm going to go with the latter thing you said there. there's always some put to the extent the fed will always be concerned about systemic risk when it comes to stock market declines as well as economic risk with comes from other means of gumming up of the financial system if you have a precipitous decline. i think the fed probably should be hiking anyway if we didn't have a 7% inflation problem, but the fed has a 7% inflation problem. remember three chances to make two. the fed has a bunch of reasons to be hiking here. and what's really interesting to

me, joe, is how complicated my report has to be to explain what the fed will be doing. i've got to go through the funds rate outlook and the balance sheet and even get into the detail -- i know you'll thank me for that, of how the fed will reduce it, mortgages first and short term securities, all kinds of stuff we have to listen for i was thinking about this morning they were the ones arguing the fed shouldn't be doing this because in part how complicated it is to get out this is going to be very complicated, very difficult for powell to sort of communicate the exit strategy here i think we're going to have to pay attention to what's hawkish and what's dovish. >> steve, thanks it's only ever 60 years. so the water tiger this year >> good luck to your bengals, joe. >> people on tv say bengals or bengals. listen to the announcers on tv

>> is that like nevada or different from nevada? >> to me it's just as important as nevada. but keep saying realtor because that's my favorite all right, when we come back much more on yesterday's market move and some names that you may want to add to your portfolio on this pull back check out yesterday's performance. the dow climbing back from a more than 1,100 point loss the session rose to end the day actually in the green. the nasdaq finishing up 5.7% the s&p rising by 4.5% this morning the futures are lower. we're going to be hearing from stephanie link after this break. s&p futures off by 55. the nasdaq down by 263 "squawk box" will be right back.

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welcome back the futures are down again, down triple digits, 200 points or so. this morning airline stocks, take a quick look, let's see what's happening and then we'll look at some of the fang names out where the market is. we're joined by by stephanie link, chief investment

administrative analyst at high tower. maybe already are at specific names. >> i actually am starting to bottom fish a little bit because i'm looking at high quality companies, balance sheets, decent valuations getting even cheaper. buy backs are something i look for a lot. i'm not looking to buy those high fliers, nonearnings, joe, but looking to buy plain vanilla companies. they're talking about a super cycle and have pricing control hal burton also said it yesterday when they reported earnings i bought more facebook because i think the valuation is very attractive at 20 times earnings and getting about 25% growth and more transparency in terms how they're communicating to the street

and i bought nxpi which sasemiconductor that's gotten pummelled. i'm looking at quality companies on sale. >> the numbers we've seen today we saw 3m, saw verizon i mean, do you follow ge it's not even a $100 billion company anymore, is it let me just see where it is. yeah, it is, it's 100 billion, but it's down today. >> i own it, and i would be buying it. by the way, i'd be baying j&j, american express, ibm. all four companies had some very encouraging things on the plus signs earnings were better and free cash flow 3.8 billion got them a total for the full year of '21 at $5.1 billion. if you include some discounted items they're paying down debt,

making acyousitions, they want to grow. so they're shrinking to grow, going to separate the companies. and i think they're focused on profitable growth for next year. it's a tough environment revenues missed and orders missed, so that's the negative for today. that's why the stock is down i think there were supply chain issues for sure, but i think their guidance was encouraging a mixed back for ge. i get why it's down on the headlines, but i think there's a lot of great exciting things to come for this company. >> it's a little weird j&j is down but then the market is down american express incredible how it is bucking the trend this morning. >> at 218% to 20% growth guidane for next year. they increased the dividend. that's encouraging we had kind of cues from jp morgan's card division two weeks ago when they reported that they were seeing very significant loan growth, and we know loan growth for american express especially on the leisure side is totally come back

pre-pandemic we're waiting for business to come back, right and that's going to be the second half of the 2022's story. meantime trading at 16.5 earnings and doing a lot of good things with their cash for shareholders >> i think you had some other names maybe not quite as high visibility as the ones you've been talking about here where you're putting money to work and you were doing it yesterday. i guess you'd be doing it today. which one? >> i was looking i was up 140% last year alone, but that one is down 20% and they have a very interesting price performance advantage versus the piers while that's not super cheap i have to look to price to sales to justify it. for this particular idea i like it if it were to continue to pull back i would buy it back if you will i own broadcom that stock is also down 20%, trade at 6% earnings and you get

a 3% yield and get 5g and ai and cloud and they increase the dividend and buying back stock as well. zoetis, i love it, just always expensive but now back 20% and you know i like match group. i think people are going to go back to dating in person as we reopen and they're doing a great job with tindr and hinge and modifying those particularly port folios. so i like the trends there as well and that too is also down 20%. these are good quality companies. they're doing great things and so i'm watching those to be adding >> i know you can always, you know, find something to do, stef, but rates probably are headed up. that going to be okay at the pace and how far we're probably -- when the fed will

stop, for example? do you think that's okay for the stock market >> well, i mean there's a little indigestion here there's a lot of rotation happening. i don't necessarily think rates get away from us, joe, but clearly they have to go higher inflation is a problem they have no choice, but i do think that omicron actually slowed down growth in kind of first quarter, soo it's -- we're getting some data that's misrepresented in a way, right so i think you're going to start to see a recovery in the data as omicron, we move past it we talk about that hopefully we move past it, and we can actually reopen fully again. and that's where you're going to see better services demand which is 77% of the economy. so i don't think we're going to see a recession this year. i actually think we're going to see above growth trend rates should go higher hopefully inflation can come down a little bit, but that favors more value and more reopen names

up until this past couple of days that's what's been working and i hope it will continue. >> thank you, stef check back in not too long a time i'm sure. >> okay, when we come back a lot more investor and real estate mogul samzell on theflation in the markets. meantime check out crypto currencies this morning. crypto currencies have been moving in tandem with stocks as investors get ready for tighter monetary policy from the fed squawk coming right back

still to come, our exclusive interview with real estate mogul sam zell we're going to talk inflation, the fed and much more. that's in just a few minutes and later kyle bass gives us his take on the russian-ukraine conflict and how it coulimctd pa the markets. stay tuned "squawk box" will be right back 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.

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the u.s. putting thousands of troupes on standby for possible deployment ahead of talks to ease tensions between russia and ukraine kala taushe joins us with more >> reporter: becka, the u.s. and european allies are inens itifying their efforts to deter an invasion of ukraine by vladimir putin holding a 90-minute video call yesterday and bolstering defense capabilities in the region $90 billion of weaponry from the u.s. has already landed, and the pentagon says nato requested the

8,500 troops on high alert and it's up to nato to deploy those troops across eastern europe >> but for our part unilaterally we wanted to make sure we were ready in case that call should come and that means make sure the units we can contribute to are as ready as they can be on as short a notice as possible >> reporter: the administration is also considering a wide range of economic measures as det deterrence as well the biden administration has been evaluating possible curbs on exporting semiconductor chips to russia, according to sources, a complicated and unprecedented move that could keep russian consumers from getting phones, cars and compute and cnbc has learned officials are also negotiating with energy companies and a broad range to redirect cargoes of natural gas to europe in case of an adverse scenario that further cramps europe's supply. it must be passed by congress and last night top senators from

both parties continued to negotiate a build back by democrats and the white house. among the top concern for republicans that bill gives president biden solely the strength to trigger the package if he sees russian escalation. the republicans worry the president will waver after a comment last week that an incursion could be minor they want congress to make that call and want some sanctions to be in place now. becky? >> depending on who you're listening to some people wisay oh, this is not something that's going to happen before the olympics because if that's starting in a week in a half you're not going to want this sort of level of chaos on such a big -- on such display during something like the olympics. other people say, no, no, if they're going to do it, they'll do it sooner because when it's cold on the ground that's when russia has the upper hand. what's the latest you hear from that >> reporter: i think, becky, that's definitely true foreign policy experts note

that, yes, spring is a hard deadline for vladimir putin if he is going to make the decision to move further into ukraine, and also winter olympics are generally a sport where russian athletes do very well. and there's a sense president putin would not want to distract from what is happening at the olympics that being said some of the commentary we heard from the pentagon yesterday noted the time line for some of these troops to potentially deploy, i mean, they could deploy within five days notice so that tells you the u.s. and allies are operating on a relatively near term time line and there's been confugz about the intelligence here and whether ally lies agree a potential invasion could be imminent there was some reporting out of france they didn't see or agree with what they were calling alarmism out of the you can and u.s. i spoke to a french official yesterday who said no, that is not true, they're in very close coordination, there's extreme vigilance on the part of all allies are ukraine is concerned.

>> we've got a lot more coming up this morning. supply chain woes, the feds handling of the economy, the markets in turmoil, all of it. and guess who's here to break it down and never one to hold back? real estate mogul and investor sam zell is about to join us a check on this morning's big movers in the nasdaq we're coming right back.

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welcome back to "squawk box. futures right now down 275 on the dow, big move yesterday down 1,100 but closed up 90 or so on the dow giving back 275 this morning. s&p down 62 or so. s&p was briefly in connection territory down nearly 10% from the highs yesterday but ozable to rally and close higher, so we did not have a closing low for an s&p correction but we have seen that in the nasdaq. >> investors are awaiting more clarity from the fed after this week's meeting joining us now to parse out concerns about market inflation and hikes and much more is real estate mogul sam zell, obviously

an investor well beyond real estate, though obviously communications to energy and sam, it's really great to see you. it's been a while since we've gotten to talk to you. >> it really has been a while. i've missed you. >> we have missed you, too let's put it in context with the huge declines we saw yesterday, i know at one point you were buying distressed energy back in 2020 i know you've looked at things maybe in july of last year and was saying it was hard to find deals. what do you think right now, and what do you think happened yesterday? >> well, i think that the market is extraordinarily nervous there's a lot of stuff going on around the world i mean, obviously we have inflation and interest rates in the united states. we have russia and ukraine we have china and taiwan we have north korea, you know, sen

assembling missiles, iran backing the houthis and attacking allies in the united states that's a lot of action going on at once. and i think there's an innate nervousness that's permissive and certainly impacting the confidence level of the investor base having inside that the peculiar part of it is that the economy is doing really well you know, the -- the activity levels seems to be one of accepting the virus is in effect getting around it. and the fact omicron has been much less of a threat and certainly much less of a serious threat has gone us from not knowing what to do to trying to figure out how to live with it

>> so you add all of that up and you mention the nervousness investors teal we did see the vics at the highest level yesterday and people are not feeling comfortable. somebody like you when you see turmoils like that does that present opportunities, or do you think there are too many things to be concerned at this point? >> well, i'm not an investor in the nifty 50, and so, you know, stocks like apple and netflix, et cetera, have an impact on me because if they miss or don't perform well it affects the overall market but generally speaking i probably fit into the investor who invests in a risk off phase of the market. and that part of the market has been less volatile but nonetheless impacted by the

lack of confidence by the investment community >> let's talk about office real estate first that's an area that you mentioned omicron has not been nearly as concerning as delta or some of the variants we've seen before, but you're not seeing workers back in droves to offices at least in the big settees. in a place like new york city it's probably closer to 30% occupancy. not the same story through other places in the country, but this is something that i don't think many people at all thought would last for this long we're a couple of years into this and still not seeing people back in force at least in some of the big cities caught most of us by surprise does it surprise you >> well, i think that you've got to start with an understanding that the office market was oversupplied before covid. we had a phenomena of shared

offices that in effect took an awful lot of existing office space and in effect leased it when there were really no tenants. so covid reversed that process so i think you have to start with the fact we had an oversupply to begin with covid has only added to it i don't believe that working from home is much of a solution and just like school children don't do well with virtual teaching, i don't think that you can motivate -- i don't think you can assess people by zoom. and, therefore, i think you need to be in the office. we've been in the office most of the time, and it -- it creates a positive flow for people and allows us to get a lot more done

than if we had to limit ourselves to a virtual office space. so i would expect that the office market is going to get filled and filled, you know, as soon as covid becomes less of a risk and i think that there may be some changes you may see, you know, people, you know, working four days a week but ultimately, the amount of time people spend in the office is going to be very much related to the demand for their time and there are a lot of parts of the economy that are doing very well and need people to work on and i think that's going to be the determinant of how fast office space goes up >> does that mean you've invested more in office space, or were you fully invested and kind of just been waiting for

the tide to turn where do prices stand right now and where do you think they're headed >> we have not invested in office we think there's a disparity between office prices and office attractiveness there's been relatively little change in pricing. we haven't had any kind of a distress scenario. now, to a large extent that's a function of fact that interest rates have been so low as interest rates now move higher, you may see some distress in the office market. but we haven't seen much of it so far to a large extent you've got big differences. you've got in south street in chicago that's 30% or 40% empty, and that's a big problem you have other parts of chicago

where demand is very high. i think that obseolescence is a big factor in the office market. >> meaning it's kind of following what we saw with retail where they were very clear categories with retail, class a models, class b and beyond and maybe this is just catching up to the office space at this point where there'll be great properties but not every property is going to be able to be salvaged. >> well, i think that comparing office and retail is not fair to office i think that the retail scenario is -- is one over supply, two obsolescence everything between the top mall

and the corner has serious question as to its viability so i think retail is much more of a falling knife than office and i think that office is likely to recover much quicker than retail. and so, therefore, i'd say that the office market is at the moment, anyway, looks much better than retail >> we're watching the fed signaling it's going to raise interest rates and we've already seen mortgage rates jump pretty significantly just over the last 6 weeks or so that makes buying a house a little more expensive, and i know there's not a lot of supply out there. you all play in residential, too, especially in apartments. how is all of this changing things where do you see demand going? where do you see prices heading? how does this shape up >> well, we have -- for some of the next 20 years some united states produced over a million housing units a year until the

great recession of '08, '09. at that point we got as low as i think 250,000 units. we're still trying to catch up between the demand for housing and its availability i'm -- i find that, you know, attributing a quarter point rise in interest rates having a major impact on housing to be not realistic. i mean, we're dealing with extraordinary low interest rates. i mean, my first house it was 5.35%. 5.75% today would be considered

a change and you're still getting a mortgage for 3, 3.5% and i think interest rates could go up 200 basis paints and have very little impact on housing. >> very little impacting on housing prices because i was just listening this morning and even in the last week like if you've got a $350,000 house the mortgage on that is up $100 in a week, $200 from where it was three weeks ago, and it does -- >> and it's down $500 from two years ago. >> yeah. >> i just don't think that interest rates are as big a factor now, on the marginal house, for sure maybe in the starter house, for sure but in terms of the overall market i think interest rates have in effect caused the shortage by virtue of making it much more affordable for much more people.

but, nonetheless, we still have very low interest rates and therefore a very easy way to get into housing >> sam, the federal market committee is meeting today they'll finish up that meeting tomorrow we'll hear from j. powell. what do you want to here and what do you expect to hear from him? >> well, i guess i first and foremost want him to drop the word transitory from his vocabulary i never heard of transitory inflation before i've never heard of inflation going back down. and so i think, you know, it's time we faced reality. if it were to me i would increase interest rates today. that seems unlikely, and everybody expects the first increase to be in march. whether it's now or march we need to in effect slow down this

inflation. inflation is very deleterious to our society, very deleterious to our economy. and even though we haven't had to deal with it for 30-some odd years it's very much a problem and one we need to take care of. >> what have you done differently with your investments as a result of the inflation that we're facing and that might continue for some time >> well, obviously, we plugged into our thinking inflation -- we plugged into our thinking in some of our acquisitions the fact that we're going to have a harder time finding employees. we are still dealing with way too much money in the -- in the system and that's still, you know, creating a series of not very

productive changes we need to get the fed to stop buying debt, to start selling debt and to raise interest rates and create a much more stronger correlation between across the capital and opportunity. >> as a result anything specific you've done or anything you think is a good opportunity? >> well, i think some of the places we've invested in, we've done very little real estate that being one of the things we think we find with the enormous availability of capital has made real estate for an investor like me relatively unattractive at the same time we've invested in logistics and a lot of other businesses that we think benefit

from difficulties in the supply chain environment, and therefore, create opportunities for us >> sam,it has been really good to see you it's been way too long i hope we get the chance to see you again soon and maybe in person next time, too. but thank you. >> i miss seeing you and i miss seeing joe and i miss seeing all of you characters. and you ran a great show and i'm thrilled and delighted to have been onto this point >> thanks a lot, sam look forward to seeing you soon. >> great, thank you. >> i was going to ask him what are we going to do about chicago, what's going on there 6-11 this year a new coach. anyway, coming up the nasdaq was down nearly 5% before rallying posing its biggest turn around since the financial crisis in 2008 more on the move after the break. "squawk box" coming right back ♪ ♪

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welcome back to "squawk box. check out the stunning reversal yesterday in the nasdaq. the intex was down nearly 5 ers with futures in the red again this morning so is there more pain ahead or maybe some green joining us right now is the senior research analyst for bernstein who's been worried for

tech valuations for quite a while. is that going to be a firewall or do you think that it ain't over yet >> good morning, andrew, and thanks for having me look, i think it's anyone's guess to some degree but i do think technology valuations are elevated versus history. and this has been several years brewing if we go back to 2018, tech stocks were trading at about 20 times earnings. the market was about 19 times earnings entering this year tech stocks were trading at 28 times earnings the market was at 18 times earnings so we saw -- seesaw this huge, huge multiple expansion in technology and tech is still even with the draw down entered the year probably 50% premium to the market it's still at a ho% reamium to the market historically it's been between 0 and 25% or 0% and 30%.

we could see more get back from technology going forward >> and how should we think about the earnings reports we're going to be -- i mean we've already heard from a bunch including net netflix, which obviously i think had people worried we're going to be hearing from microsoft, apple and the like. what's your reading of that and how much we should be taking from those numbers versus the risk off situation and the federal reserve? >> i think the other challenge, andrew, is we had across market incredible earnings last year, you know, against the easy comparison of the pandemic so s&p earnings were up a stunning 45% last year this year they're only expected to be up about 9%. tech earnings are expected to be up about 11% we're coming off high-water marks in earnings, so i think earnings will still be strong, we'll still likely see beats from major companies apple is going to go later this week we expect them to beat numbers

but, again, coming off of, you know, last year apple's earnings grew 67% you know, this year they're probably going to grow single digits, and you still have tech stocks on average trading at between 25 and 30 times earnings you know, that's ultimately the challenge, i think, is the earnings backdrop while solid on an absolute basis is diminished -- much more diminished relative to what we saw last year. >> tony, can you get selective about this meeting you look at the nasdaq or look at the ark invest fund or any of those things and you can see the big -- you can see what's happening here but is there a baby in the bathwater here that you actually want to own right now? >> sure, look, i mean, i think what we've seen and what we expect to continue is that stocks with very high valuations and/or no real profitability are

most vulnerable if the current situation prevails i think the flip side is true. if you can find high quality stocks that have reasonable, you know, valuations and are cast generative, those are stocks you should be investing in at bernstein collectively our tech team likes names like facebook or google which are trading in the low 20s times earnings and have strong cash flow i trade dell i like dell and creating seven times earnings our semiconductor really likes broadcom, again really attractive cash flow valuations, stable cash generating firm. so those are the kind of names that we think are most likely to outperform to the degree that we continue to have any kind of market pressure. this has been a value market it's certainly possible that that can persist i think finding high quality

names with good earnings visibility at reasonable multiples is really where investors want to be, and to the degree that we entered the year with i think about 30% of tech stocks that were unprofitable, 30% of tech stocks trading at more than ten times revenues, those are stocks you have to continue to be cautious about. >> tony, i want to thank you as always, some great perspective especially trying to sort through all of this. appreciate it. thank you. >> have a great day. coming up sky bridge capital's anthony scaramucci joins us to talk about the wild swings in crypto, and why he's still on bitcoin plus much more on the russia-ukraine conflict, potential conflict i don't know what we call it yet, maybe a build up to a potential conflict kyle bass tells us how it can impact markets maybe it already is. stay tuned you're watching "squawk box" on cnbc after years of practice you become a pro

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good morning futures once again pointing to big losses at the market open. we sue a sea of red yesterday but then the market had its biggest intraday comeback in more than a decade, a big day and morning for corporate earnings new results from johnson & johnson, ge, american express and more we've got all the details straight ahead plus the pentagon putting thousands of u.s. troops on heightened alert as tensions simmer between russia and ukraine. we want to know what it all

means for global investors so we're going to ask hedge fund manager kyle bass. the final hour of "squawk box" begins right now good morning and welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square i'm joe kernen along with becky quick and equit es starting up where they were midsession yesterday but not quite, down 277 points an interesting session yesterday, maybe not totally shocking that after 1,100-point drop in the dow all the way up to up 90 and near 5% drop in the nasdaq ending in positive territory. we're giving some of that late

day come back back this morning. english language gets redundant at times you can see the naz dock big percentage loss, definitely still choppy as soon as we're seeing treasury yields amid that point yesterday. when the equity market is off sometimes what caused the sell-off gets reversedch the imminent move higher perhaps and rates where we got almost up to 1.9. we got there but didn't stay all and got the ten-year back to 1.77 was bitcoin leading the s&p or highly correlated? >> highly correlated i think she said the number she was looking for -- hold on, i wrote it down -- 3,700 level >> it got to 32 and changed and then, you know, moved back to

36.5 and that was over 10% for the day. >> it it closes the week above or below 37,000 that's the level she's kind of keeping an eye on. we'll see. we do have some corporate earnings front and center this morning. we've got multiple dow reportings 3m beating analyst expectations on both the top and bottom line. the company saying its businesses improved during the december as supply chain issues, the omicron variant and other concerns eased and check out shares of 3m have been up, right now about up 100, a gain of $1.70. american express beating forecasts, too it was helped by record credit card spending. amex also planning to raise its quarterly dividend from 43 cents a share to 52 cents. the stock right now off by just about 28 cents, but that's been a bit of a roller coaster itself it was down when the numbers

first came up, it was up sharply. and you can see it giving back to just about the front line right now. revenue was a little light, but the company did give an up beat full year forecast we spoke with the ceo earlier on the show, asked him specifically about the possibility of mna and the year ahead you can see here's what he had to say right now >> we're starting to feel very bullish about the prospects as we see some volatility in the market as i mentioned earlier we we're getting very much towards a net cash position. we're progressing that way we think this could be an opportunity for us in 2022 to lean-in on the acquisition front. >> johnson & johnson shares off by 1.8% >> let's get back to the broader markets. market commentator mike santoli joins us now with what he's watching after the late day turn

around and going back the s&p has not corrected, has itnot >> well, yet on a closing basis that is correct. i'm not sure how kind of picky we have to be about declaring a 10% correction the market has been correcting, right, this is what has happened all the way. we've had this arbitrary threshold. some of the dynamics of that comeback yesterday does look like much at all on the one. year s&p chart because all the action was intraday yesterday. but a 4% drop and full recovery with absolute volumes taking place around those lows. that's what we saw yesterday huge trading volumes it's a huge transfer of shares from the fearful to the greedy that's kind of why you look at the concentrated kind of purge-like activity we saw so it's a step in the process. we got back down to sort of the lows the market hit in september, so levels first hit back in june, july so clearly a lot has been swept

off the top of this market and there was the least amount of stand also post-expiration, late and there's been a history of the monday after to have these important reversals. of course with bigger declines that preceded those things right there. take a look at a couple of the harder hit areas of the market that did have more dramatic comebacks, and you'll see really what's going on is more distressed parts of the tape really did have this snap back this is the s&p retail atf as well as the small cap growth area now, this is only a six-month chart. and what's interesting is the exact same cadence so essentially high data parts of the market has been considered all part of the same market but did come back a lot to prove here on the up side even if it was a decent low. talk about the bond market, two-year treasury yield over the course of yesterday did ease back it peaked around 1.05%, came

back around 95%. here you see it doesn't look like it's given much this tells you the market is pricing in a few hibs from the fed this year and going into next year, and so the market was maybe at the moment new levels lower make its peace with what the bond market is telling us. obviously we'll see how the reaction is on wednesday for the fed comments >> we will even -- did you hear that earlier, mike we were talking about in ukraine even that situation when you view it in the prism of what it would get the fed to do. i mean everything is covid, well, what's it do for the fed it's just amazing. it is amazing. >> look, the muscle memory is strong again, i think the big tricky aspect of the current phase is it's not necessarily a sure thing. we think the threshold is higher for the fed changing its path based on what inflation is

doing. that's why people perceive us to be in more of a pinch whether it's true or not >> they were ready to step in and call off all the rate hikes yesterday, mike. i don't think so, but people were calling for that, start being nice again, start being more dovish because the market isn't at 1,000 points. >> people will say it -- >> no, i don't think so. i think they need to be firm not feckless thanks, mike >> okay, we got some news just out involving lockheed martin and its proposed take over of rival defense contractor morgan brennen joins us more on that >> earnings per share 747, revenue of 17.7 billion. those are both better than expected also 2022 guidance largely in line with expectations sales are expected to slip slightly from 67 billion in 2021

to 66 billion. as you mentioned the big news item of the morning is the status of lockheed's acquisition of rocket engine maker aero jet market lockheed says it's been advised by the ftc concerns regarding the transaction cannot be addressed adequately by the terms of the consent order instead lockheed believes, quote, it is highly likely that the ftc will vote to sue to block the transaction and expects that decision is going to come before january 27th. so this thursday, not clear whether lockheed is going to elect to defend the lawsuit or terminate themerger agreement at this time as i mentioned we are expecting more news on this when the ftc puts out a release but lockheed martin saying it continues to believe in the benefits of the transaction for

the united states and its allies a little bit of background here, this is a space in hypersonics based deal, $4.4 billion announced in december of 2020. we've seen delays to regulatory approvals, and of course it comes in the midst of rathian technologies also reporting mixed results this morning where those shares under pressure ratheon has been publicly opposed to this deal and i suspect it's going to put a pause on the sector more broadly. >> obviously a big impact for aero jet rocket shares the conglomerate says its annual shareholder meeting will be held on saturday, april 30th. and it is planning for an in-person gathering, though the shareholder meeting has not been in person for the last two years because of the pandemic. it's a little different than most shareholder meetings. they have 30,000 plus people than annually show up for this

over the weekend a company press says more information is coming for scheduled for release late next month. andrew >> hopefully the world is going to come back to some semblance of normal. that was one part of at least my normal and your normal coming back when we're back after this, prospective how investors should deal and the russia-ukraine tensions. anthony scaramucci is going to join us on the former. and hayman capital kyle bass will talk about the latter stay tuned you're watching "squawk box" right here on cnbc

i do think that a lot of the advent of retail trading in vehicles like robin hood or whatever made it very easy to buy stocks or buy options, we're going to see some flip side of that continue going forward. i think a lot of pipe have lost

money, and that's before we even get into crypto. and i think that is going tobe and very reminiscent of what i saw in '99 and 2000 with the advent of day trading and the first time we saw online brokerage. those investors by and large never came back. >> that was the associate president talking yesterday about retail traders and some of otheir investments have proven to be quite volatile over the year like amc and game stop. joining us now to talk about the digital currency slide has been a bitcoin bowl anthony we've been talking with you and you've been outspoken about bitcoin. the price is frankly off 50% of its all-time highs what are we supposed to make of

this what do you make of it >> jim was just talking about the 2000 nasdaq debacle. of course i lived through that and many things got decimated but quality things lasted. you go back to amazon eight piers of time were dropped 50% since its inception. if you had 10% investment on amazon ipo it's worth $22 million today. i think it's about recognizing bitcoin and i've said many times it's not a store value at this moment, not technically a currency at this moment. but what it is an early adaption technology, early adaption technical story. with that there's going to come a lot of volatility. so i wouldn't have predicted what happened in 2021, you know, the china mining shutdown but then also the $3 billion purchases through elon musk and his companies and personal

investing. so this year i'm not going to be able to predict what's going to happen, but i'm willing to venture more people own bitcoin on 12/31 of this year than they did prior. and bitcoin is going to have in my opinion a half a billion wallets possibly a billion wallets as we get to 2024. and so people should ride this stuff out. i think it's nonsensical to expect an asymmetrical 40 degre line in things such as bitcoin >> a lot of proponents of bitcoin have been telling investors especially retail investors to, quote, stack and keep stacking. this was of course in the 40s and 50s and $60,000 range. would you be buying now at this point? and by the way, would you buy

into a company like microstrategy? >> well, we own microstrategy through our etfc rpt we see it as a proxy for bitcoin, but i'm not recommending leverage. i would never lever an asset like bitcoin because of the volatility and the uncertainty and so retail investors, i think, people are saying they want it tostack and hold on an think of it the way we should have all thought of microsoft or apple or google. it's that good of a technology it is a transformational event if you and i really study the block chain and we recognize that these securities, these crypto currencies however they're going to be eventually deemed by the scc are going to delayer the economy and make the economy more efficient bitcoin represent digital energy,

digital property in that landscape, and people are going to want to have that on their balance sheet so they can make those transactions please do not lever bitcoin. bitcoin is too volatile. it would be like reserving amazon back in '98, 2000 and i wouldn't recommend >> how much of the argument to you around bitcoin is around the dollar and the value of the dollar and now we're starting to obviously inflation, but we're also seeing jay powell and the fed perhaps act on that inflation. and that was part of the thesis. >> okay, so let me talk about that for a second. i think it's important we're pricing in now 4 to 6 rate hikes. last year this time the market was pricing in zero 2022 rate hikes. and so are we going to be right about that i don't know i don't think there'll be 4 to 6 rate hikes particularly with the global tension going on and the likely release some of some

supply chain issues. taking that aside i don't think you're getting 4 to 6 rate hikes. i'm not saying inflation is transitory but it's nowhereas damning as people are suggesting right now are the markets are suggesting second, as it relates to bitcoin and the dollar again, i think we're getting ahead of ourselves. if it's 2025 and there's a billion bitcoin wallets, let's call it a currency, legal tender perhaps in places like el salvador and other latin-american countries but the dollar is still the dollar to me this is an emerging technology that will eventually evolve into a store of value as more and more people join the network. and if that happens, andrew, because of the scarcity of bitcoin the price of bitcoin is going up i think people who make a comparison to the dollar when byte kn is only a 700 or 800 billion market cap or even at its high it's too small to make

that comparison today. looking into the future i do think this is like digital hold. >> i think the skeptics say, look, if it's not a digital currency, if you will, can't really be used on a day-to-day basis to transact, and if it's not a store value yet, what is it, right? that's what the skeptics out there are saying >> yeah, so what it is, it is a amazing technology that's going to allow us to do peer to peer transactions with each other and as that network grows it's going to be phenomenal let me take you back if i said to you in 2022 you're going to have 20 streaming services and you're going to be able to stream 4k video, 4k movies over the internet, we were all laughing at each other saying that's not going to happen because we were logging onto aol and the page was coming down in slow motion.

you can't look at where bitcoin is today and think of it as static you have to think of bitcoin as an evolving asset, and as people get on the technology and create a dynamic network you're going to see that trading and transactions >> it would be great if you could take us behind the scenes in terms of the conversations you've been having with big institutions, pension funds and the like there have been a lot of them sitting on the side lines planning or at least talking about planning about putting money into crypto in all sorts of different ways. how does this change that dynamic if at does at all? do they say, you know, this is so volatile, maybe i'm actually going to wait a couple more months to figure out what's really going on here >> yeah, well, i think both of these things are happening sitting here at the iconnections conference in miami. we had a big institution

investor dinner last night i've been saying that on "squawk box" for the last year the canary in the coal mine for me is larry fink and he comes on "squawk box" and says i've got huge demand for bitcoin, they all want to buy bitcoin and we're setting up a facility to do that, then i'll tell you there's huge institutional demand are hedge funds nibbling, yes. are small institutions nibbling, yes. do we have balance sheet activity some of our large corporations, we do. but is it still very early stages, andrew, and that's creating the volatility. you and i are old enough to remember when amazon was a book seller, an internet book seller that was mispriced and overvalued relative to sears robuck, and look where amazon is today and look where sears is. i don't want my clients to miss

this i'm telling them to size it appropriately. that's a 1 to 3% allocation, 1 to 4% at cost. size it appropriately and recognize this is going to be part of our future you interviewed lloyd blankfine, one of my old bosses yesterday and i like what he said. he doesn't want to miss this it's happening whether we want it to happen or not. some people think it's rat poison other people it's the worst thing to happen to civilization. i'd love to debate that person what it is an emerging technological asset that's going to be with us we're going to use. el salvador is using it. there'll be other countries that use it i want to own it, i do not want my clients to miss it. and i remind clients everybody is long time investor until you have short-term losses and then you start freaking out take a chill pill, stay on bitcoin. other crypto currencies and i think you're going to be

well-served long-term in those investments. >> anthony scaramucci, we're going to take a chill pill this morning. thank you. good to see you. >> a tiny one for you. you're very chill, andrew. just a tiny one for you. >> i just need a tiny pill this morning. >> tiny bit. >> thanks. >> when we come back we etbetter get ready for the megacaps microsoft is going to be kicking things off with earnings tonight after the bell what you should be watching and what the company's results could signal about the other tech giants we've got that story next. microsoft right now down by about 1.5% check out the futures. dow futures off by 286 s&p futures now down by almost 70 points. the losses have gotten worse with the nasdaq indicated down by about 320 "squawk box" right back. like jack. he wanted a streamlined version he could access anywhere, no download necessary.

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welcome back to "squawk box. futures right now you can see on a percentage base where we are, for the dow, the s&p and the nasdaq less than a percentage point for the dow jones, but the nasdaq taking it on the chin again this morning after at one point being down almost 5% yesterday crude oil now down 83, 83 and change and i think we've got ten years

somewhere around below 1.8, just barely below 1.8%. >> microsoft was one of those big stocks yesterday followed the overall trend of the nasdaq, down sharply but then rebounding just as sharply and then some by the end of the session it's also the first of the megacaps to report earnings, and that happens tonight obviously could set the tone for the broader tech sector. julia has more on all of this. what should we be watching, julia? >> well, becky, you're absolutely right microsoft results will be closely watched. it's a key indicator what could come next from all the tech companies that report. analysts expect amazon to grow revenue by 18% and revenue per share 14% as demand for microsoft's cloud business is expected to build on momentum from the prior quarter analysts are watching head winds around foreign exchange, but they do see more momentum specifically around the cloud deals in the year ahead, and the

biggest thing to watch is growth and revenue from azure teams as well also expected to be a tail wind and we will be also looking for more commentary and how microsoft's bleblizzard acswusition recently announced its strategy around gaming as well as its vision for the meta verse. an outperform rating on the stock saying the cloud story is not slowing down and in redmond we believe large transformational deals with microsoft are up with clear momentum in 2022 and also some incremental share gains from aws could be in the cards. now, microsoft has far outperformed the nasdaq in the past year. it's up 31% over the past 12 months 93% of analysts have a buy rating, 70% have a hold and no sales, becky >> no, in the forward pe

multiple has come down pretty significantly with microsoft as with most tech stocks. i think it's about 32 now from microsoft. i think it was closer to 37 last week or the week before. >> yeah. the multiples come down, and there's this really a sense right now, becky, there are two different types of tech stocks you know, there are the high growth or what had been the high growth stocks that were really all about the pull forward to the early parts of the pandemic. and becky, the transformation we've seen of business, all of microsoft's customers adopting more of their enterprise tools i mean those are the trends not going to be going away so i think that's why there's so much emphasis right now on the potential microsoft has to continue to grow and to continue to build its enterprise strength and then if you look at what they're doing at the consumer side with gaming, more opportunity there as well. >> yeah, as jim says these two classes big tech companies with earnings and tech companies without any earnings, and maybe that's the split, too.

julia, thanks very much. >> we're going to be going to talk about the tensions between russia and ukraine in the west and what it all means for investors around the world that's next. hedge fund manager kyle bass is going to join us after the break. take a look at stocks leading the s&p lower this morning looking at stocks like general elic off a low 4.5%. nvidia, raytheon and others. stay tuned you're watching squawk on cnbc os 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. new projects means new project managers. you need to hire.

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the u.s. putting 8,500 troops on heightened alert for possible deployment to europe amid tensions between russia and ukraine. all sparking -- sparked by fears of a possible russian invasion joining us now to talk about the implication for investors worldwide kyle bass, chief investment officer at hayman capital management i'm just reminded of mitt romney and barack obama was it china or russia, but he was -- everyone sort of laughed at the time, and we've sort of gone back and forth. it's one or the other, kyle. and lately you've been certainly

focused quite a bit on the risks here in our relationship with china. has that now been susppplanted your mind by what putin is up to and how it affects us? >> i don't think so. russia is a nuclear power. we know when the ukrainians voted for independence, you know, all the way back in call it 1991 and '94, 90% of ukrainians wanted independence from mother russia, so the problem was they had a third of russia's nuclear weapons and so when i think about what the key issue is here is the u.s. and the u.k. and russia for that matter moved in to denuclearize ukraine back then and we're responsible for their territorial integrity. 2014 putin took crimea basically

without a shot fired there were a few shots fired, but, again, and even back then president obama said this will not stand. well, it's still standing. putin's a smart guy. when you think about geopolitical force, russia doesn't have the economics behind their geopolitical force. i think china is clearly the largest threat to the real based order in the west, but i think russia happens to be topical today and what's going to happen in the ukraine >> maybe that is part of the calculus for vladimir putin because it -- why is it such a shiny object for him what does he accomplish if he destabilizes ukraine or even takes a piece of ukraine or how does that play into his global, i don't know, aspirations? >> yeah, so when the soviet union dissolved into more

independent states with russia, the belarus and the baltics, i think what that did is it moved russia's border more east. and basically i think putin views the, quote, natural order of things as russia controlling the ukraine, belarus and the baltics. they have for the better part of times since the american revolution so i think if you listen to putin's speeches and you see and you follow his actions, i think that he believes that he's going to take -- he already has belarus, right, lukashenko is in his back pocket, so now he's going to move in with either a false flag operation or installing a pro-russia leader in ukraine and then i think he goes after the baltics. that moves his border back west and basically puts it up right against poland that's why you see poland being very upset neither here nor there i think it's important to note you look at russia on the nordstream 2

gas pipeline to germany, basi basically you look at the price for megawatt hour in europe for power it's almost ten times the price of the united states because germany just turn off its last three nukes, they stopped drilling for hydrocarbons this policy of wanting to immediately flip to alternative energy is one that's creating major national security problems for europe it will create national security problems for the united states and will create inflation around the world, which is what we're seeing today remember russia exports about $8 billion of crude every day. sanctions on russia won't work like sanctions on china. >> because there's no way we're going to be able to say we're looking for a coalition of the willing because there's no way germany can go along with us, can they >> if you look at preparation

for a potential conflict the u.s. and u.k. have ferrying and launched tank and military equipment. and if you watch the flight of transport from the u.k. germany won't let the planes flyover their airspace that's a big head scratcher for their, quote, european union i think it's important to note the nord stream 2 pipeline and europe's reliance on russia for their energy needs is going to drive a wedge right through nato and right through the european union itself >> let's shift gears quickly is president xi feeling pretty good about himself he doesn't really get that much flack for what's going on. u.s. corporations still need to deal with china. ia saw what happened somewhat when he said he didn't really care about the uyghurs, if a corporation say we care about the uyghurs but continues to act

as if it really isn't affecting any of their day to day business does that make that business anymore virtuous -- i asked that question that day. is anyone really acting as if they care about the uyghurs? >> my view on this is really simple the entire whether it's chamaf or lebrawn james or disney or nikethies corporations or individuals only woke or only care about basic human rightens as long as it helps their pocketbook to the extent it doesn't help their pocketbook, ie, it disrupts their relationship with the chinese payor, then they shutdown he would not do anything to disrupt his relationship with china. so it's -- i think the wokeness of many of these corporations

and individuals is just faux it's whichever direction these people want to go for personal gain >> i think you know my feelings about the human rights issues in china. however, my question to you is i want to pretend for a moment that you are the leader of -- and ceo of an american company doing business in china. you could be tim cook, the ceo of intel, the ceo of coca-cola and my question to you is what would you do, meaning, would you speak out publicly and risk your business would you not speak out at all is this simply an issue of the hypocrisy that you feel they're speaking out on voting issues in the u.s. and not on china? what would -- what would you, kyle bass, do? >> i think you guys know me by now. i would speak out, and i might be fired by the board because

i'min not maximizing shareholde value. i've said a few times in the past if a u.s. national security or human rights policy was left up to corporate america we'd all be speaking chinese tomorrow it's really important to note that these leaders of companies, again, are only there to maximize shareholder value and anything they do that's esg driven or human rights driven is very carefully thought out with a goal of maximization of shareholder value always in the cross hairs. so what we need is leadership. again, if we think about national security and the preservation or protection of human rights, that needs to come from our leadership. and they need to set the ground rules, because, andrew, as we know ideologically we couldn't be more fundamentally incompatible with china and russia for that matter and we really -- we can't wait

to do more business with them because we all have this idea that chinese eldorado, the 1.4 billion chinese we can sell something toor they can make something cheaper for us on the legislative side you can't expect to see leadership on a corporate side, andrew, because that's not what they're charged with so, unfortunately, that's where our country stands today >> well, great political leadership, okay awesome. so, kyle, yesterday's sell-off, there's a lot swirling, a lot swirling the markets have been selling off really underneath the surface for longer than that probably a lot of it is the -- the second derivative change in what the fed's been doing for ten years. we get that. anything with russia, anything with china what all went into yesterday and obviously there's been a lot of speculation in different

pockets, all different assets. >> if you look at the polling of the current administration the largest let's say area of discontent happens to be inflation. and so you see the fed deciding to get very, very strong against inflation. the problem is you have this scenario where you have an arsonist turned firefighter in the fed, and they're saying they're going to raise four or five times this year and also added the fact they're going to start balance sheet contractions june or july remember december 2018 that was the last time we had rates being hiked and balance sheet contraction? the market dropped 20% in a month? the market is not going to rise into a scenario where the fed is aggressively hiking and shrinking its balance sheet. so the question is how much -- how much intestinal fortitude does the fed have to see the market drop visa vi their desire

to squash inflation to help the current political situation? and so the one thing the fed can't control is energy. and i think the structural deficit for cap x spending for hydrocarbons is going to cost crude well over 100 billion on the front end and well over numbers people haven't put pen and paper to yet given the structural deficit i think the fed is going to fight inflation until the market drops 20, 40%, i don't know what the number is they're willing to accept but the fed's calculation is not purely economic right now is what i'll say. >> kyle, thanks. at least we'll have really nice weather, you know what i mean? so we'll have that going for us which is nice. all right, kyle bass, good to have you on today. wide ranging and all over the place. it's a global show we're international so it's good

to have you. kyle, thanks okay, when we come back right after this we're going to get you kramer's first take on the markets this morning as we look to open with a bit of red on the screen. take a look at the faang stocks right now, looking at mo rreed after yesterday's wild, wild ride you're watching squawk on cnbc

it is cramer time. we're going to get down to the new york stock exchange where jim is -- have you slept, jim? >> no. >> you're sending out news letters all hours, on tv last night in prime time. you're up early. i need to know what the heck we're supposed to do about this roller coaster to do about this roller coaster of a ride i think you like the fact that it's going to open down a little bit this morning, at least in the short-term. >> yes, yes. >> is this -- have we seen the whites of people's eyes? was yesterday that moment? i'm not sure. >> well, i think that we have to revisit. i think that would be pretty typical. we had 9 to 1 negativity that's the historic mark haines, late mark haines level that you have to buy. we hit that. but then we typically have to come back and come near it and see if there's short covering. maybe we start picking up some b buys there's a citi note today for all kind of software companies that i think aren't going to

make any money, i don't know to do that. the fundamental stocks, they're not so bad tony, who i don't always agree with, i thought was very, very strong today when he said a lot of the companies that have come down, marg said the same thing, are really good high quality companies. there are a lot of companies that seem like they're ruk warm because of the supply chain, j&j, ge, 3m, so look, i think we're getting a chance to buy a lot of high quality companies, but you can't buy the low quality companies. they're just going to hurt you. >> what do you put on the list and then the other question is there are quote, unquote high quality companies that may still have a multiple rerating to come down it may not be finished, right? >> yeah, sure, i mean, but don't have to buy them all at once, and i think it's very hard to buy ahead of what the fed's going to say, but i think you have to do some buying wait until we're back to where we were midday

this is just -- we went up too much on very little volume, but there's a lot of stocks that i like i like the classic great american companies i think that they're terrific. i haven't done all the work on 3m, but that looks better than expected i just think you have to overlook the problems that j&j- i can come up with multiple reasons why i don't like raytheon we're going to talk about some of these great companies when we open, if we opened up, you're going to lose a lot of money >> what about the whole crypto -- we got to run, but the crypto crowd. >> ethereum hit a level that you can buy. these are pure spec, and obviously the fed might be speaking on them but the s.e.c. is not happening. >> okay. jim, we will see a lot more of you in just a little bit, and of course you can check out his investing club right now, and you can sign up by pointing your phone at the screen as we speak. let's talk a little bit more about the market we've got just about a half hour

to go to the closing bell. the futures are under pressure as andrew just mentioned nasdaq is the worst. it's off its lows of the session but still down by about 2% joining us to talk more about the markets is liz young, she's head of investment strategy at sew fie, and liz, your thoughts on this yesterday after the close was it's not done yet. why? >> right, i don't think it's done i don't know that we're going to see another day like that with such a big swing, but the reason i don't think it's done is because that didn't happen where we need to bounce back from a one-time shock, right? that wasn't a one-time event we're trying to digest this entire thing is a digestion process of a new environment that we're not conditioned for there are a lot more steps we still have to take we're going to hear from the fed tomorrow obviously, but i wouldn't expect anything earth shattering to come out of their mouths there's a long period of time where we have to kind of sit around and wait to find out what

they're going to do, how quickly they're going to do it, and whether or not the market's going to think that they are behind the 8 ball. now, we talk about this all the time about how the fed maybe waited too long. i don't think we would have had a different reaction if they started all of this back in august or september. we still would have had this correction at some point, so now we're in this sort of waiting game of was it too long? can we still get through this and come out on theother side in a positive way, and i think we can but it's going to be painful along that route. >> people are pretty conditioned to buy the dips. that's been the case for years you're not opposed to that, you're just saying don't spend it all in one place, right >> yeah, don't spend all your cash in one day, and that's because i don't think we're done with this yet. and also don't spend your cash on one sector or a handful of names. i think as we come out of this, we're still not going to go back into a period where there's this huge liquidity driven multiple expansion. you still have to pay attention to quality you still have to pay attention

to valuations, and the earnings seasons in 2022 are going to matter a lot more than they have for the last 18 months i think investors are going to pay very close attention to any guidance that's lowered and any misses that occur. you want to make sure you're buying the companies that have that power with strong earnings. >> it's early on, but the numbers that we've gotten so far have been pretty good when it comes to the earnings, today and banks, some other places, too. >> yeah, they have been and we're on track to still have another up 20% growth quarter in earnings as we start the earnings seasons of 2022, that comes down dramatically it's just that we're conditioned to be hearing 20, 30% earnings growth, and now we're going to hear things that are chloser to that 10% range so it feels like it's a disappointment, but 10% growth in earnings is still pretty good, and that would be healthy at this point in the cycle it's just na we have to start getting used to hearing different numbers and looking into a different rate picture. >> people are pretty keyed up

about the technology stocks. we're going to hear from microsoft tonight. you're looking at industrials and health care that you think are safer places to buy. >> yeah, and look, i still would be waiting this out a little bit. i think we're going to bump around a little bit here but if you must put your money to work, if you must buy something i would buy the sectors not quite as sensitive t to rates things like industrial, things like health care >> liz, thank you, always a pleasure to see you, and we'll see if these next 30 to 45 days are as bumpy as you're anticipating the vix yesterday was certainly signaling that, and this morning we're kind of seeing it once again. it's great to see you today. >> you too, thank you. let's get a final check on the markets right now, if you've been watching the futures this morning. this is on a percentage basis. right now the dow futures indicated down by 8/10 of a percent. when we started the show, we were looking at ts&p down by 1%

the dow down by half a percent, and the nasdaq down by 2%. you have seen the losses keend of pick up at this point yesterday at this point interesting too, and we'll see how this session shapes up today. are the ten-year still yielding 1.755% this is all coming as the fomc kicks off day one of a two-day meeting. tomorrow is when we'll be hearing from jay powell. so everybody buckle up guys, we will see you ck hbaere tomorrow right now, it's time for "squawk on the street. it's coming up after a quick break. >> we get off early? >> we do that's why i have my finance team, randomly hurl things at me. it's also why we use workday. it gives us insights, so we quickly pivot our strategy, people, planning, you name it. sorry, sir. i will aim straight at your next step. see that you do. would you like some coffee? workday. the finance, hr, and planning system for a changing world. ♪

good tuesday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber the selling does look to resume. two-day fed meeting begins, earnings from verizon, ge, j&j, vix still elevated our road map begins with the ongoing market volatility. after staging their biggest comebacks in years, futures point to more declines at the open. >> plus, we are focusing on the funda fundamentals, more than 100 companies in the s&p 500 will report this week with their results. in fact,