air for the last three hours s&p futures up byabout 40. the nasdaq indicated up by 185 checking out the 10-year, you'll see the 10-year note is yielding 1.934% remember, the 10-year yield hit the highest since november of 2019 yesterday we'll see you back here tomorrow, andrew joe will be back, as well. right now time for "squawk on the street. good wednesday morning welcome to "squawk on the street." i'm carl quintanilla futures close to a one-week high here as the reopening trade finds some fresh legs. more states loosening restrictions we have signs of congestion, and at least one fed official said we're on the cusp of inflation moderating 10-year below 1.94. the speaker of the house said she's moving to ban stock

trading on capitol hill. here is what she had to say on it in december. >> this is a free market and people -- we're a free market economy. they should be able to participate in that. >> plus, atlanta fed president telling cnbc we could be on the cusp of an inflation decline we'll dig in with the ceo of yum brands and stepping the slide already down 35% since the start of the year. shares of meta looking for some gains at the open. we're going start with a market looking to extend yesterday's rally. we could potentially string together three straight winning weeks. we haven't done that in about three months. >> it doesn't feel like it and, you know, the net effect is the s&p closed yesterday almost precisely in the middle of the range. from the peak on january 3rd to the low on january 24th. the last couple of days there's been a little more traction inside the markets cyclical groups doing well we have a bit of a reopening push with the sense that omicron is passing quickly hotel stocks, for example, doing

very well. so i think it's interesting. on the other hand, what we're doing is this morning going to open up at levels on the s&p we first saw about six months ago september and october. there's room to make up the nasdaq 100 still 12% below the highs. you have a combination of the bond market calming down the feeling maybe if we spend months pricing in what central banks will do and have we absorbed it all? that's the question going into the inflation number tomorrow morning. >> that will be the question, of course, inflation continues to be in focus. obviously earnings are fuelling what we've seen in terms of this rally in the markets to kick off the week, it seems like some companies are faring -- which we knew was going to happen. but some companies are faring better in terms of navigating inflation and the higher costs and in cases like chipotle push it to consumers and have the demand remain attach, at least for now. versus others it's been a trickier situation, which is why

it's interesting to hear what yum brands has to say. also, because of how much -- how much higher costs can consumers actually take now in 2022 before that demand does start to ease, carl those will be the key questions. i think as we do have a series of beneficials coming out and saying with, yeah, higher inflations could get higher in the case of daily. it could get higher before it goes lower that eventually we'll settle and we'll have to see what it will mean as the fed begins to hike rates starting next month. >> yeah. i keep coming back to what bricker told us earlier in the week some of the food prices, he said, are coming down. we'll start to see what i would call aggressive increases start to mitigate. that's why they're not pricing for a lot of this. they don't want to get over their skis it it points to what bostic said, the notion perhaps we're on the cusp of seeing inflation moderate. >> when i think about inflation, what i see right now is an

elevated level and i'm very hopeful that we're going to start to see that decline. what we've seen is inflation not get worse on a month-to-month level and i'm hopeful that will translate into a slow decline as we move through the spring and into the summer, which will give me some comfort that we're really heading in the right direction. >> so he basically says 25 basis point moves and walking us off the 50 ledge and pricing in three maybe leaning to four. >> yeah. >> it's still behind where the market is. that's the key issue here. if the center of the fomc is snil that three to four range, or will do one and see how the numbers come through, then, arguably, the market has done a fair bit of work and two-year note of 1.3 something is kind of what you're going to get for now the map starts to work in favor of that call that inflation is peaking in a few months. not right now. because the numbers year over year will still be pretty eye

popping. so i think that's, you know, that's the walk we are walking right now. also, we're in the bond market long-term yields are up but they're not really, you know, going and taking flight. and what that suggests is this tightening campaign may be short and concentrated, but likely to restrain inflation and not going to be this kind of pro tracted tightening effort where the fed is chasing inflation higher. >> yeah. you can argue you're seeing it play out with the dynamics in housing, right you have housing prices in major metro areas up something like 20%. now you have mortgage rates at the highest level since before the pandemic and starting to potentially see some -- i don't want to say corrections yet but the heat we've seen in housing maybe it begins to turn a corner, too. i would keep a close eye on freight flows and trade flows, and mersk was the late toast come out and say they expect to

see container shipping and the strength we've seen there with the capacity tightenness and the supply chain issues that they're going see that begin to normalize in the second half of this year. that being said, i mean, going back to housing, i mean, some of these other areas, carl, housing, wage increases, which we've been getting a lot of commentary on from many companies reporting earnings are going to be the areas, i think, it's particularly key to keep an eye in terms of inflation moderating and what a new normal is going to look like. whether it does come down to 2% at some point or whether it stays elevated as you start to see present in the services example of cpi begin to catch up, as well. >> yeah. i think maybe take some people by surprise. >> yeah. might be happy for something above that range as for mortgage rates, we got mortgage purchase demand down 9.6. it's pointing to the demand. and there's young -- yum brands

after beatly on quarterly revenue. the crow david gibbs will join us later on in the hour. chipotle is up sharply after that profit beat they were helped by price hikes. brian nicole talked about inflation yesterday on "closing bell." >> obviously i hope the inflationary environment slows down we know if we need to take more pricing, we have room to do it today we've seen no resistance from the customers i think i heard someone mention we're -- our brands and the customers really do believe we're a tremendous value. >> of course, they've already hiked prices once so far and see more coming in the year. as for yum, mike, we were talking about the unit growth. >> yeah. >> a record -- industry record 4,000 new units last year as these quick services were taking advantage of the change. >> yeah.

it's a different model than chipotle franchise aggressively, taco bell/kfc model they've had same-store sales growth strong. double digit and system wide also pretty strong it is a little bit different they're basically still in that value mode even though you have to try to tighten up in terms of pricing along the way. but brian niccol i think he said that was me saying it on "closing bell" if you're chipotle where your customer base is not hooked on, you know, the highest calories per dollar value meal, it is a better premium better they've always paid their workers over minimum wage and a little bit better. arguably, yes, they're in a better spot than somebody that is, you know, kind of feeding off those deflationary dynamics in quick serve for a long time. >> it's a key point. i mean, put starbucks in the bucket, too. it's different than the fast food companies like yum brands and some of the brands that are under that umbrella. i'm curious, though, the fact

they've seen such -- yum brands, they've seen such rapid expansion. and i say this as a daughter -- as you know, of a burger king franchisee, it's not an easy time to ab business owner or fast food franchisee now you've had higher costs, you've had wage pressures, and the like and certainly the pandemic added a boost to things like drivethroughs. i would imagine we'll see some normalization there. but i'm curious where they're seeing the demand from perspective franchisees when you're talking about the small business creators, which is what essentially they are, mike. >> yeah. without a doubt. a lot is global, of course credit markets are still kind of open and you can bar to do this and, you know, we've seen a fair push during the pandemic toward, you know, business start ups as opposed to, you know, people looking to get back into a wage earning. i agree with you it's kind of amazing you have people willing to take that on via small business owner at a time when it's becoming a little

bit tougher. a high-friction type of exercise now. >> yum's digital business now topping $22 billion. it will add to productivity and take the edge off some of those pressures. to your point about lower income strata versus upper, it's a tactical outperform call on canada goose today. >> yeah. >> we think it's going to perform next couple of quarters. quote, as high-end consumers flush with cash look to splurge post covid, particularly in the hot outer wear category. so, i mean, the economy will lean on those with more excess cash that's going to be the top 20%. >> yeah. and the stock markets found its footing a little bit here. i think there was a little bit of concern as we had that correction in fact, you look at the european luxury stocks, they have behaved that well the idea the psychological wealth effect plus crypto maybe will back off. but, you know, canada goose still kind of niche brand and one that has room to grow,

arguably they can feed off the fact that there is this tiering of wealth and income. >> which is a conversation we've been having for the better part of a decade, if not longer the by forindication of the consumer it speaks to the questions about how fragile or not fragile the economy is now the push for legislation banning members of congress from trading stocks is gaining steam on capitol hill elon moyi joining us with the latest >> reporter: i can confirm that nancy pelosi is getting behind the movement to ban lawmakers from trading stocks while they are in office. she's working with the house administration committee, according to a source familiar, on what the new rules would look like this would amount to an about face to the speaker who has defended member trading as part of a free-market economy we it tell you, she has asked them to take a look at ways to beef up existing rules, as well, as pressure for a prohibition

build on capitol hill. now today gop senator steve daines and elizabeth warren will unveil a bill banning lawmakers from trading stocks and owning them, even in a blind trust. this is the first bipartisan bill senate. it takes a harder line than other proposals in the works yesterday chuck schumer said he believes in a ban. i'm told he asked half a dozen democrats to come up with a unified approach to that problem. that includes senator warren along with snairn brown who has stopped trading bills of their own. nancy pelosi's support is going to be crucial. this shift in her position is a reflection of how vocal her members have been. she'll beholding a press conference later on this morning and we'll be watching. back to you. >> we'll be watching you've been all over this. i'm going ask, it's probably a ch cheating question here, it's been a dynamic at play for so long we've seen the upward around judges, as well. and seeing increased around

lawmakers. i mean, the timing can we discount the timing the fact we're coming into midterm elections? >> well, sort of cleaning up washington a is a popular theme ahead of a political election. but this has been something that has been in the works for awhile the last time congress sort of took a hard look at the ethics rules around trading stocks was about a decade ago that resulted in something called the stock act, which banned lawmakers from doing insider trading, but what we found is that is a really high bar to prove the penalties that were in place for not following the rules around disclosure were actually pretty small a couple hundred dollars for a violation. that is something that lawmakers are looking to change and not only change the rules but also increase the penalties for not following them carl >> thank you when we come back, with this morning facebook parent meta down 30% such reporting earnings last week as you know, the evaluation

below $600 billion at yesterday's close. hasn't done that since may of 2020 we'll talk about where the stock goes from here take a look at the premarket, you have indexes open in the green. nasdaq may be green for the month of the open. vix almost back to 20. 'lta about what is on the line for uber/disney tonight

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you start a business dedicated to helping them. and after you've achieved all that, you take on what's next. meta rising in the premarket. the company lost a third of the market value so far this year and most of that drop 0 occurred after last week's earnings

report meta closed yesterday's session with a market evaluation below $600 billion we'll bring in justin patterson to talk about where it goes from here obviously the market is three days of just heavy liquidation and implying that the outlook for profitability for the company is a lot less reliable probably a lot less strong in the coming years you did trim revenue and earnings estimates a bit where is the run rate from here in terms of growth and has the evaluation benefitted from that? >> that's a great question facebook is going through a business model transition, hence the name change to meta. it's also challenging comes and the appel privacy issues and tiktok oprah winfrey the next two quarters, you're going to be building in a business that is growing and sigh single digits top line so really we don't get a true barometer of underlying trend in

the second half of the year. we think it could go back toward the growth and then, as you come out with the higher revenue growth rate and sort of absorbing that mixed cost and margins recover. right now you're looking at business trading at a mid high teens earnings multiple historically it's inexpensive for facebook you see progress with tiktok competitor you can feel more confident that the stock goes higher. >> yeah. i mean, yesterday even though the stock was down, it did close about $4 off its low during the day. very, very heavy volume. clearly people are wondering if this level around the prepandemic price and for the stock is some kind of floor for the short term how much of a bet does an investor have to be making on how fruitful the investments in metaverse will be and the billions that meta is spending in that area i just wonder if right now you have an investor base that says

buy back more stock. milk the high margins on the legacy business as opposed to, you know, sort of making these huge wagers on the next phase of, you know, of digital communications. >> yeah. 100% agree there's a definite capital allocation question here to your point, the metaverse will be a distant chaos here we still have a subset of virtual reality devices that are in households today. it'll take time to see those returns. whereas in the immediate term, we have tiktok as a competitor, which is when daily active user growth and necessitating a shift toward reels so while it's great to talk about the future and that future stake doesn't really matter too much i think what we're watching near term how does reels go can it stabilize daily active users? bring more engagement? can it start to monetize

if that happens, yes we can all feet a lot more confident about meta's interest. >> so, justin, given the fact you have an overweight rating on the stock. if the investor had money to put to work in one name now, is it meta or another name you cover >> i think meta is still offering attractive returns right here it's, again, historically inexpensive. we've already had a very broad d rating estimates reset lower. so as we start to see progress with reels, start to see advertising revenue improve, i think business looks better over the course of the year and you don't have that much downside. >> okay. how big of a deal that peter thiel was the first investors in the board of facebook has been on the board since 2005 and the most prominent conservative voice is leaving >> it raises more eye brows in

quarters like this one you have numbers coming down, more competition, but if it was an ordinary situation, business as usual, we wouldn't be talking about the transition too much. al mild cautionary flag but not one i think too many investors will skip over. >> yeah. i think it's plenty they have. justin, thank you so much, i appreciate your perspective this morning. >> thank you still to come this morning, yum brand ceo david gibbs, the stock rising on the better than expected revenue and comp figure we'll get his take on pricing and inflationas the year moves on in the meantime, futures here. pretty much on all the indexes looking at about one week highs.

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welcome back to "squawk on the street." shares of lyft are off the low of the morning posting better than -- ridership numbers did miss street forecasts in the wake of the omicron surge. listen to what the ceo had to say on lyft's earnings call. >> the omicron variant had a significant impact on ride volumes. the rapid surge in infection was correlated and reduced demand for ride share however, since the speak in the u.s. has now peaked, we expect demand will begin to recover in fact, in the last week of january, we saw it pick up in

ride share rides that we see as a positive pick up ultimately given expected impacts of omicron on q1 and the unknown shape of the recovery, which was carried into q2, the near term revenue growth acceleration will likely be affected. >> it's worth noting, first, annual positive adjusted ebitda for the company. you saw a shortage of drivers. you saw an improvement in the mix of shorter rides and airport trips, mike. but it speaks to, in many ways, and we talked about earlier in the show, the balance between higher prices and mid inflationary pressures and consumer demand. >> right and what they need to offer to drivers on the other side. >> that's right. >> their labor costs it's a tough balance, yeah the adjusted ebitda number may be looks better than it has in the past you're adding back a pile of stock-based compensation to get to the adjusted ebitda number. it's a tough call in the terms of the group in general. it seems like a dual openly in

the crucial consumer type of utility business should have more than a combined $90 billion market value that's uber plus lyft. it's like $74 for uber and $16 for lyft they're not able to show a clear path to when they'll be producing a lot of cash. you continue to wait and the tracks trade poorly relative to where they debuted uber is flat and lyft is about, you know, half the initial closing price after the ipo. >> meanwhile farce uber tonight, you have to weigh the ride business, which is exposed to a reopening versus the eats business, which is kind of exposed to stay at home. >> it is i think people -- in my observation tend to like that mix a little bit better. just because, again, it seems like they can be, you know, one of the main providers of something. it's not going to go away. you have consumer habits built in a certain way we'll see if there's a balance there or kind of spoil the

story. >> yeah. [ applause ] >> one of the things we'll watch for tonight -- we'll get the opening bell as far as the cpi goes tomorrow, mike, kind of all these tactical gains saying, well, if it's hot, market is likely to go down less i mean, how do you gain this can you do that? >> i don't know if it's that easy to gain in the sense of this number in a vacuum. i have to weigh it against the fact that, you know, we've been saturating ourselves in inflation alarm for well over a year right now market-based expectations for inflation in multiple years have come down off their highs. so nobody thinks this is kind of run away it's all about informing what

the fed is going to do and other central banks will do. right now we have priced in something close to maybe five hikes from the fed this year so that's why i wonder what the direct take away is going to be from this number obviously, if the areas that are supposed to ease up a little bit don't ease up, it's going to be another excuse for people to say the fed is behind the curve, talk about 50 basis points in large, in which case, if you get it priced into the market, obviously, fed officials will have to weigh in on that say do we want that from initial tightening move market or not? >> yeah. that has to be a key question. and you have quantitative tightening behind that in june a very tight rope that beneficials will be walking. to your point the s&p is up about 1% now 4563 is the level there. the major averages are higher. nasdaq is up about 1.2% now. every sector in the s&p is in the green. i would note as we have seen the

10-year yield come down a little bit off its highs earlier in the week when it hit the highest level, carl, since 2019. also, oil has turned positive this morning, which is interesting. we had seen profit taking largely because of the geopolitical currents we've been seeing particularly around iran of course, we have seen tighter inventories. we'll get another number at 10:30 a.m. eastern. >> yeah. oil is interesting right now goldman yesterday said, okay, let's game out what happens if there is an iran deal and you get some additional supply coming in the next few months. in their view, maybe $7 downside to brent. >> yeah. they call it a speed bump in the eventual call for brent going to 105. they want to see the market destroy demand they're not worried about things that might get in the way. >> yeah. it's difficult to come up with the number where you start to actually curtail demand. i think it's worth remembering that crude traded at these levels in this range from, like, 2011 to 2014 when the economy

was smaller, consumers have lower incomes. when, obviously, there was more sensitivity in terms of the overall economy. two fuel prices. it's not as if it's a killer right away you wonder if the price, therefore, has to be higher. a lot of talk about how the structure of the futures is back in other words near term price is higher. it shows scarcity. it shows strains on supply but it also means people think it's going to ease up down the road and therefore somewhat normalized for you. >> in the meantime, end phase energy you talk about alternative energy now and solar plays, in particular end phase energy is up 21% this morning after a stronger than expected earnings. you're seeing quite a number of the other solar stocks, solar edge is higher by something like 11% trade in sympathy, which speaks to some of those currents we're seeing, too, within the broader energy sector, carl, where the fact we've had high crude prices and high electric prices and incentives from the government to the adopt the clean energy technologies.

seems to be working in favor of an end phase. >> yeah. i mean, well, look at ford today and gm you have ford commercials we'll see the next few days with e transit. it's not only electric but you can power your power tools from it. >> yeah. >> a report out of reuters that gm is sources say will do a six-fold increase in the electric pickup truck and suv production for '22 basically what you said about the economy being less levered to oil. >> yes >> it's going to be interesting once enough have electric cars and we don't care what retail gas is. >> yeah. the pace of the transition is very interesting argument right now. because on the one hand, they can -- the demand is absolutely there for the initial wave of these models coming out of gm and ford it's about how much they can produce. on the other hand, you know, the average age of a car on the road has been going up forever. it's eight or nine years it's one of the points about why the car market is, you know, pent up demand so in other words, people kind of rotate into a new vehicle

over a course of years nobody knows what the resale -- our friend at data that chart this morning made that point. >> former auto analyst. >> yeah. you don't know the resale value of the ev will be in three or five years when the technology is improving so quickly. are you buying into, you know, the beta map's version of it it's interesting to handicap that ford and gm well off the highs a lot of charts look like. a huge bulge in the fourth quarter in january and they have to settle down a little bit. if i look at the auto market, they have done nothing in a year brunswick has done nothing in a year the sellers of big, heavy durable stuff had their moment and now it's about what is the run rate of demand from here also it feeds into the inflation story. that's where inflation was in those goods that had those problems with supply chain and everything else. >> yeah. by the way it won't play out for evs. lithium has been the focus this week given the fact you have those lithium supplies in

california we talked about it with the ceo of freeport, as well, carl, and copper the fact there's going to be such demand for copper in some of these other types of commodities, which are already seeing price increases over the coming years of course, when you talk about something like declining oil production, at least here in the u.s., natural gas is such a key part of what powers the elect call grid in the u.s., too so even if you're plugging in your ev, you still have to get the electricity from somewhere what does the process look like? you have to think some will trickle out into the piece of the market, too. >> yeah. it's not a coincidence that tesla is selling solar panels as a power generator, essentially for your tools or home for ford. the last mile of the grid is an ongoing concern probably for years to come. as for peloton today, guys, wow it has gone from $23 to $40 in two sessions that's two sessions of 20% gains

each today some internal memos. lauren thomas reporting about mccarthy's rule. and there for the come back story is the way it is characterized in the internal memos. at the very least, another piece in the times said the performance is there to maybe buy them some time. >> yeah. >> that's the way it would seem to me. whether it's an eventual sale or something else you basically have gotten the bad news out new leadership rationalizing the cost structure of the company and trying to sort out run rate and trying to outsource more than before in terms of distribution and navigate toward the point where you are mostly a content company. i think that's ultimately what you have to do to justify a higher evaluation. so i think, you know, their hope would be to, you know, have fewer in the next few months than they've had recently. and, yes, stocks are off the lows probably kick around here for awhile. >> when we come back this morning, revenue beat for the home of kfc, pizza hut, and tac

bell we'll talk to david gibbs. before we go to break, the "bond report" yields are backing off a bit this morning as bostic said we might be on the cusp of seeing inflation ease. i will note goldman upping the year end target on the 10-year from 2 to 2.25 we're back in a minute

yum brands rising on q4 result this morning. beating on revenues and comps. joining us this morning is david gibbs. yum brands ceo welcome back, it's good to talk to you. >> great to be with you guys. >> the quarter is fascinating. the inflationary backdrops is fascinating. it seems like unit growth and digital are the two big headlines this morning. >> yeah. i think that's right you know, it was a great quarter capping off what i would call a great year i've been with the company for 32 years i don't think we've experienced the year with the kind of growth we had the past year in those 32

years. >> i'm sorry, go ahead dive into digital. because $22 billion is a lot of money. >> yeah. $22 billion is a record for us obviously a way up from just the few years ago. in 2019 we did $12 billion the growth there is encouraging. $6 billion in the quarter. what we're seeing is the customers that are switching to digital investments with e made there are paying off and those customers are sticky in the digital channel. even when they are returning to the restaurants. they're still using digital because it's easier for the consumer and us when we're running the restaurants and our employees to process orders. it's a win/win. >> what does it mean for the future of dining room and the implications from that stem out from that real estate and everything else? >> well, you know, we've talked about experimenting with different formats that have smaller dining rooms and are more designed for, you know, on the go there's clearly a trend for that than is going to stick we know that customers do on

certain occasions want to be in our dining rooms we are with our asset base we're equipped to deal with that there's shifts in consumer behavior and some of it is going to be sticky this idea of delivery, obviously, has taken off the idea of using digital. so we're going to continue to involve on the estate 0 our assets meet everybody's. >> it's morgan, david. yum in the quarter, or in the year, i should say, tracked a record for new openings of strauchbts in the yum brands umbrella i'm curious where has the most demand been? who is franchising from you? do you get concerned about oversaturation in a market that is post pandemic >> i'm glad you brought that up, morgan it's gratifying to see the development we had the past year the numbers are truly mind blowing. we opened over 4,000 gross new units in 2021. that's a unit every other hour er two hours we're opening a new

store! it's wide spread so it's not just one brand carrying the day it's all regions of the world. all brands growing, which is very encouraging truly the last thing i ever worry about is us being over saturated. we have proven we have growth opportunities in our mature markets and growth opportunities in the newer more emerging markets. even in the u.s., we have tons of runway. develop all three or four brands in the u.s. and then starting to see development take off in some of these emerging markets that we've been investing in for many years like india, which opened 335 units last year. >> david, i'm wondering how customers who, oprah winfrey the years, at a lot of your chains have become so used to the value orientation of the offerings are adjusting if prices are going up across the board of course, we did have, you know, brian niccol of chipotle say they have an $8 chicken

burrito. there's no resistance to paying that do you feel pressure to maintain that very low price point? >> look, our industry was founded on the idea of great-tasting food and convenience and value. our scale innovative teams, obviously, are hitting on all cylinders when it comes to all three dimensions we're going to provide great value to consumers in this environment and inflationary environment, we know we have room left to take price. we have other levers we can pull in order to manage the pressure on inflation we have prooun around the world with very itch much different environments of inflation and deflation and all sorts of challenges in every one of those environments we have proven our model is resilient and we can always tlooi in any environment we're confident as we move forward that we will be able to continue to have the kind of margins and profitability we've demonstrated in the last few

years. it's critical because you don't get the 4,000 gross new units being build by franchisees, you know, with their capital unless you've got the right kind of business model for them. we do. >> it's interesting, the market is hoping for a roll yoifr in food inflation but i've seen a lot of analysis on just say, for example, farming inputs the fertilizer it will make a roll over in food inflation a little more difficult than some think. what are your thoughts on that no doubt we're operating in an inflationary environment it's mostly in the u.s. for us now. two-thirds of our restaurants are outside the u.s. that's a different environment that's where a lot of our growth is occurring but in the u.s., you know, we're dealing with inflationary flip pressures and supply chain pressures. you know, the labor component, which we haven't talked about is obviously a challenge. we've come out of some of the challenges of omicron and feel better about that as we move

forward. but, again, you know, we have been fairly cautious when it comes to pricing in the past making sure we're always the value leader in all the categories we compete in we believe we can continue to maintain that kind of leadership but still adjust our model to make sure our profitability is there. >> that's exactly where i was going. the labor component, how are you navigating that now? as you make the technology investments, how does that change or perhaps offset some of the pressures there over the longer term? >> yeah, the technology investments are obviously a win-win all around for consumers and franchisees and employees as we make it easier to process orders it does, actually, help on the labor line it's higher average ticket we have happier consumers and in terms of the ease of which they can order from us. so that is a in-win as part of the equation i was on the phone with the chief operating officers yesterday comparing notes about what is going on in the u.s. in terms of labor and there was some consistent

themes, which is encouraging lots of challenges, of course, in q4 and from the beginning of the year particu particularly with omicron disrupting labor supply. more recently we're seeing an uptick in applications and we really do feel like the worst of the latest wave is bhiechbd us, which is good news for us. the consumer demand is there you know, it may not be as high now as it was last year with stimulus, but there's still plenty of demand the challenge is, you know, we had in q4 and this year is just being able to meet that demand keep our restaurants operating the way we know they should be operating at all times of the day. and we see that situation starting to open. >> david, really interesting it's an interesting quarter to look into. good to see you again. thank you so much. >> thank you, carl. >> david gibbs on yum. get in on the cnbc investing club with jim cramer

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. let's get to bob pisani, who has more on what's moving the markets this morning >> a strong start. this is 6 to 1 advancing to declining stocks that's a great start all sectors were up. yields are retreating a bit. bank are not doing so much, but they've been on a tear and the two sectors really had the big momentum in january and most of the year, energy and banks, up today as well. but oil topped out at, what, 93 on friday, so a bit of resistance the last couple days. a lot of debate on whether it can hit $100 we used to have the energy on the new high list. what is there now is some of these big financial name a few regional banks hit new

highs, but morgan stanley is there the. a lot of insurance companies are at a new high. this is nice toes a new leadership group earnings, you hope you watched the great interview with greg, but nichols has a lot to crow about. they did have offset by higher prices the margins went up, quite remarkable, for the company, and you see that stock up 7% on a tear speaking of omicron, people went out to restaurants, cvs these are amazing number 8 million tests and 20 million vaccines corrosion are administered i think the stock is down,

because they didn't race the forecast there's a lot of hints they're going into primary care clinics, discussion here the same-store sales in january 5% on the up side overall they're still knocking the cover off the ball we have a big s.e.c. meeting today. boy, is there a lot of their agenda they are addressing delete very specific issues today. one is they want to more about hedge fund and private equity disclosure they're trying to push a new rule whereby hedge funds would have to report any significant stresses on the funds, like the same day it happened with one business day they want more information, the fees that hedge funds and private equity funds are charging, the suspicious that the fees are high and not really outperforming. cybersecurity they want a deeper reporting on the cybersecurity incidents. they want to know more about

what's ham, and shortening the settlement cycles. this is one of the fallouts. the bottom line here is it's a big agenda, carl this is one of the biggest agendas in decades carl, if there's one theme, they just want more disclosure on everything on esg from hedge funds, from virtually anybody, they want to know more about what's going on on wall street that meeting is in about an hour we're monitoring it. carl >> thank you very much, bob, watching some of the proponents within the dow visa, amex, disney, all among the leaders, as we see this reopening play take place. a lot of the states now, mike, california, new jersey, delaware, connecticut, we think today new york will roll some. fauci talking to the f.t.

yesterday, saying he thinking the full-blown nature of the pandemic is going to end and americans, in his words, are going to make some of their own decisions based on treatments and antivirals >> kind of an accelerated return to something like normal i think the market was thinking this is the likely outcome hotel stocks are starting to run here, the airlines again doing pretty well it seems as if we got past this consumer lull, and the markets rolling on beyond. >> masks come off, and i guess some of the tightest areas of the country and markets rally. i would note, on that point, we're positive for all the major averages, except the nasdaq 100. the nasdaq composite of joining the s&p and the dow, to start the week one name that's in the red,

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good wednesday morning, welcome to another hour of "squawk on the street. david faber has the morning off. bulls trying to make a argument here, as some lower yields, constructive fed-speak, though full knowledge that cpi is tomorrow morning rick santelli has more. >> yes, the finals for the wholesale inventories, which mid month read was 2.1, now gets replaced with 2.2%, so one tenth of improvement that will sequentially will follow 1.7 in november if you're keeping score, up to 2.2 is actually quite large. the biggest it's ever been on a month-over-month change was up

2.5% that was just this past october. now, when it comes to the sales side, the number is up 0.2 this is a huge miss. we're looking for a number about five times, six times as large as that and obviously that is following an upward revision of 1.7 to our november read november 1.7, december only up 0.2. why is this all so important you'll recall two weeks ago we had or first look at fourth quarter gdp. up a whop 6.9% a good part of that was inventory building this being a december number, we need to keep tally morgan, back to you. >> and we will thank you, rick santelli. chip potly popping, hiking prices against to offset

inflation and not seeing any impact on demand so far. those shares are up 10%. lyft is heading in the opposite direction, even as revenue per active rider did reach a record high ohm conhas weighed on demand though shares are down about 1%. giving back some gains, this morning down about 1.5%, as it implements major changes shares are up almost 40%, bringing back to levels last seen just a month ago. mike >> morgan, thanks. our senior economics reporter steve liesman is here with a look at the chances inflation could reteeth and potential risks if it doesn't. steve?

>> bringing down high inflation in the u.s. is shaping up as a combination quad axel triple toes that the olympic skaters are doing. that is, that it has to be executed perfectly and there's a chance it could flop we have to bring workers back and easing supply pressures. split bottlenecks have to clear. goods purchases have to return to normal levels good purchases roberted, up from around 36 as consumer

>> continued high wage gains that push up consumer expectations, sos risks for the market that the fed will have to work harder to bring down inflation, but for now, the street is optimistic that the fed and the economy are going to stick this landing, carl >> all right steve, i'll take it. that's why the suspension is there.

thank you, steve big tech mean while getting less big. each more damage done to some of the pricier areas. is there nor pain to be had in high-value tech. our next guest says maybe so tony, good to see you this morning. we're soon modest bounces i guess you're arguing we shouldn't necessarily believe a recover is there,. >> well, good morning, thanks for having me. i do think that we've given back a lot. we look at technology and valuation groups so the 20% most expensive

technology stocks, they were trading on averageal 21 times sales about a year ago they're now trading at about 9 1/2 times sales, but 9 1/2 times sales is still quite high versus history, if we look at the cohorrid, again, the 20% most expensive tech stocks so, you know encouragingly valuations have come in. expectations for these stocks in terms of their growth rates have also come in, but 95% of the top 20% are still unprofitable much so we may have some more giveback would that imply that you thili constituents time to, within tech? it's a similar story

they also are still higher than pre-pandemic, so it's not as if they look outright cheap relative to their history. >> no. absolutely that's higher than historically what tech has traded at. there's still overall elevated valuation within tech. we haven't really had a great run. they've only modestly outperformed this year so we do have a tilt to fare

well through the remainder of this year. against, the high end may continue to give up some, but i think this characterization we've had a rotation to value is only half true we've had a come down in very expensive tech but haven't had a bit surge. we think there are names there that investors can do well with. >> i wonder, are you thinking of the sector at all, where, i don't know maybe the hardware component is leveraged to the supply chain, regardless of whether or not you think that is getting better or worse? >>. >> yeah, it's a good question, clearly the highest-value stocks tend to be software-oriented names or cloud plays in some

senses, and cheaper stocks often are more hardware oriented my area of focus is hardware and our observation is that hardware is uncharacteristically pretty well set up for this year they've had trouble getting product, so backlogs are pretty strong, the stocks didn't do very well last year, and so we think the set upof having a good order book plus inexpensive valuation is pretty good for hardware again, we typically don't recommend hardware names, but things like the l, for instance, we think are well positioned for good backlog, attractive valuation. it's not necessarily the place to be for the long term, but the set upis pretty attractive. >> you just game me one. what do you like right now

>> broadly we remain constructive on names like microsoft, google and facebook within semiconductors we think there's high quality names we like broadcom, analog devices, tsmc as well is a name that we think has attractive valuation. again, all of those more in the value-oriented camp, perhaps with the exception of some of the faang names, but we think a number of those names offer attractive growth. >> toni, thank you very much supply chain, supply chain, supply chain a slew of companies continues to get hit by the slowdown. then how do you apply laws to the wild west of the

metaverse? we'll discuss that. finally diversity and financial. the work that still needs to be done, when "squawk on the street" returns. yeah...uhhh... doug? [children laughing] sorry about that. umm...what...it's uhh... you alright? [loud exhale] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers, plus some of the lowest options in futures contract prices around. [ding] get e*trade and start trading today. (doorbell rings) (family chattering) - [announcer] meat-itation, a sense of calm

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joining us is south carolina

port authority's jim newsom. thanks for being here. >> thank for having me on. >> the trend seemsto be continues to start 2022 as well. what are you seeing in terms of those volumes, and how conductly can you get them off-loaded? >> so 2021 was a record repyear we see that trend continues. the east coast particularly is gaining some share relative to the west coast, so we anticipate certainly to be very busy over the next six months. the value is to get to clear space for more imports

we had maersk say this morning second half. >> i originally would have said second half. i think it depending on the inventory restocking it's hard to project what is -- so i would say now fourth quarter of 2022 we'll see some normalization. again, we're starting to see signs of people buying more services, and maybe that leads to buying more good despite some of the encouraging signs, it still doesn't answer the lingering concerns about trucking i wonder if you think it might follow if they do ease >> trucking is the major issue

we have to fix this is the major strategic fix, in terms of making trucking -- it should be an attractive industry drivers should be able make a good living, so we have to work on that as a prior number one trucking a not ohm ogenous they're largely owner operators. they own a percentage of the revenue. they rarely bear the inefficiency that happens

everywhere else. they're sort of the lender of last resort. so we have to make it a priority to make them successful. it starts with basic respect >> we want secretary buttigieg on cnbc earlier this morning he was talking about the infrastructure package as we see that come to fruition, will that help with some of these backlogs at ports like your system in south carolina, or is it a tip of the iceberg? >> from you being here, we've built a lot of infrastructure in the last six years i'd like to tell you it's helpful, but the reality of life in our experience is that this infrastructure is for long-term projects, projects needed 10, 15 years from now we adopt have projects like that we need it now we have resorted to other

funding sources. >> jim newsom, thank you for joining us. time for an etf spotlight. even biotech has had a hard time escape the carnage >> it's been tough for a long time the bigg biotech ones are rebounding today, but still under immense pressure, arguably over the last year the spdr and ishares both boy tech industries, you can see the ticker there, down more than 20% oaf the recent highs, with the equal-weighted spdr xpi down 23% in the past three months gilead, moderna, biogen, all trades lower even some of the more focused

etf have struggled to resist that recent volatility arkg ticker, it's up 3% today, but down roughly 35% in just the last three months. that fund is more focused on things like crispr technology, stem cell research, it also includes names like teledoc. that stock is down roughly 75% off the 2021 highs open top holdings, exact sciences so, again, while some of these names are higher today, getting a bit of a bounce, we'll see if it's enough to recoup the steep losses we have seen over the last 12 months >> dom, thank you very much. bitcoin reboundsing the last month or so. we'll get a check on the space, one of the country's largest

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welcome back we're turning to crypto. bitcoin bouncing from the january lows joining us to discuss is sara levy, an advisory getting into the space. customers will now be able to invest in prebuilt crypto portfolios given that it's in robo-advising, why enter crypto, and why do it now? >> we believe crypto is here to stay, and really i think the time we spoke to customers, we spoke to prospective investors customers want to participate in

this asset class it's an asset class that's growing, attracting a lot of attention. people are confused, and we felt like there was an opportunity to bring diversification, and all of the grate things that betterment has done. >> so how does it look different from the other options >> a slightly different business model, but i think of a robinhood, which has seen weakness recently. when i they about betterment, i think more long-term retail investors. >> that's exactly right. if you think what's in the marketplace, it's self-directed invests. this is an incredibly complex space. there's over 17,000 crypto assets out there so, if you think about what we did for traditional investing nearly a decade ago, we felt like it was an opportunity to bring that same long-term

persp perspective, diversification, importantly guidance, which is something that our customers are really looking for, you know, ease of use is something you can't find rite now in the crypto space >> to year point of the initial premise about the way that investors would respond to this long-term orientation, the way it was pitch, the millennial generation understands trying not to beat the market, and that was the way to build wealth over time then you see this robinhood phenomenon even younger cohort that really wants to pick stocks, and trade in short terms and buy options have you had to adjust your orientation to attract different times of customers, as we also

see, for example, wealth front get sold to ubs, because they think there's more guidance going in the other direction. >> it's interesting, because you're right to say this generation has more access, and therefore has been empowered to make their own decisions but what we're also see is that that doesn't always work out so well i think the asymmetry of information is something weft seen, you know, for years in investing. >> it does remain true that the really successful investors stay for the long term, hold and don't try to beat the market for us, really, this sort of digital revolution is where the action is, but the idea you need to sort of change your stripes doesn't resonate with us strategically. that's how we want to approach the crypto space as well thinking about playing this

asset class, but not trying to figure out which of the coins is going to be the winner. >> sarah, i wonder how you think about security especial in the wake of the headlines yet where u.s. officials seized so much bitcoin and charged this couple with trying to launder through stolen bitcoin. >> i read some takes that argued it was net bullish no the sector, that law enforcement was trying to put some ring fences around it. >> what's interesting about the acquisition we have done here is they're a registered investment adviser and a fiduciary. one of the first to really approach crypto in this way. we've always believed that in a regulatory framework that doesn't hinder innovation is a good thing, so having the government figure out how to put guardrails here is absolutely a positive, and to more directly answer your question about security, this is the life, you know -- this is the world we live in now, and it's really

bandy upon all of us with whom people are trusting their money to put an incredible focus on security and that's absolutely what we do in our core business and what we intend to the here in general, with all of the general gyrations, what have you been seeing in terms of inflows and outflows and growth in the platform so, 2021 was our biggest year ever obviously the markets had a grea year january has been more turbulent, but the way we this i about this, again, is buy and hold all the markets go through periods of volatility. we do see our customers are more resilient, because they have come to us with that long-term perspective. we're seeing muted activity, and thinking, we're here for the long term. that's how our customers behave. >> sarah levy, thanks for joining us today. >> thanks for having me. well, ever wondered about

law in the metaverse don't miss a discussion wabout that after the break, but first a new update with kristina partsinevelos. >> good morning, vice president harris will go to u.s. to reaffirm the united states commitment to ukraine's sovereignty. reuters reported she will attend a security conference in munich and meet with u.s. allies and partners. nancy pelosi now favors a ban on stock trading by members of congress. cnbc has learned she's working with a house panels a specifics. she had previously defended trading. the reversal comes as a result of a push by democrats. two big water main breaks. in philadelphia at least five people had to be rescued from homes as gushing water covered around 12 blocks a water main break in greenville, south carolina opened up an enormous sinkhole

residence and businesses won't have water for at least urs ho while repairs are underway "squawk on the street" will be right back don't like surprises? [ watch vibrates ] proactive notifications from fidelity keep you tuned in all day long. so when something happens that could affect your portfolio, you can act quickly. that's decision tech, only from fidelity. our mission is to help our members achieve financial independence to realize their ambitions. getting your money right requires more than a financial service provider. it requires a partner that is there for every major financial decision in our member's life and all the days in between.

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joining us this morning is the head of the tech media and telecongroup as well as the blockchain group, jeffrey neuberger. good to see you. >> good to see you as well thank you. a lot of this has been centered on meta, facebook, their efforts to build a metaverse, and what constitutes personal security. are legal experts and lawyers actually working on drawing up language about this? >> absolutely.

met 'verse is the next great technological frontier, and we're working with many of our clients addressing the issues that metaverse faces >> where do you draw precedent from where does that lead us? >> that's an interesting question i've been around for a bit of time with emerging technologies have developed in each case, as the internet became mainstream, as digital commerce became mainstream, there's always ways to analyze the issues, looking at existing law and see how it applies you know, many of these issues are nuanced. fortunately i have a technical

background, so that's been helpful. >> are we still early days in terms of manifestation, oar do they conversations need to be happening now to keep pace with how quickly this becomes a reality? >> excellent question. the key is to plan now for the future, so as companies are building for the metaverse, investing in the metaverse, they should have lawyers involved to look, you know, to the extent possible into the crial ball, see where the regulators are heading. the regulators have been talking about nfts, blockchain, cryptocurrency, drying to avoid problems and plan for contingencies before problems arise. >> given the fact, jeff, that so much of what we are now bundling into this concept of the metaverse is reliant on things like the cryptoplatforms, though

software protocols that allow for anonymity or sued oy nim to be essentially, you know, your existence in these areas what are the legal challenges in terms of whether it's -- or identifying people who maybe there is a legal dispute with? >> yeah, it's really a big -- it's a big issue we already have those problems today, with the internet the way it exists. those problems will increase and multiply as the metaverse becomes reality. i think the key is to have a really solid united states of the law, and have a history of the law, and as well have the technological understanding, so that -- because, again, some of these issues are really going to hinge on technology-related specific points. so companies and investors should be thinking about that today, as they built for the metaverse.

>> how do you think early players get aggressive in putting flags on the ground without drawing the ire of antitrust regulators is there an argument to be made this in fact is not self-contained, it competes with all media, all gaming, and everything else? >> well, the metaverse in the grand keep and concept that people talk about is sort of an overall virtual world where, you know, multiple companies and multiple players are involved. by definition, it will be something where many players in the industry will be active. hopefully there will be a way for everybody to cooperate appeared play well together and build businesses in the virtual environment. >> how is all of this going to affect kids? do we even know yet? how do you keep kids off the metaverse, which i know is a key

part of the met 'verse. >> at proskauer we're focussed on privacy, particularly protecting children's privacy. one of the challenges is to find a way to address privacy in the world of the met 'verse where there's multiple parties across multiple jurisdictions it's another reason why companies that are involved in the metaverse really need to have lawyers with them from day one to help them address that problem. >> yes, the legal community is not going to be wanting for employment, as we build out another industry sdwref, we appreciate this. we hope to have you back >> my pleasure thank you. bernstein's new cal on virgin galactic, the pry lowered

as bernstein sees retaining talent and accessing capital as potential risks. after an unexpected geomagnetic storm, will rocket maker aextra reescroweding its launch after two scrubbed attempts earlier this week. whatever the case, there is more and more news in the space space, and you can catch the latest, by following or subscribing to our podcast "manifest space. this week's episode, ceo and founder peter beck of robert of roetck lab we have more "squawk on the street" after this break

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we're looking at representation among investment managers you're next guest says the total am is climbing, but there's till

more work to be done joining us is chief investment officer angela miller may. good morning. >> good morning. great to see you >> it's interesting, as we look at some of these metrics on black history month. it wasn't long ago we had headlines from banking industry leaders explaining about a lack of talent in the pipeline. i wonder if i think that's anywhere being true, and if it is, is it improving? >> first of all, i'm excited to talk to you about diverse and inclusion any month, but especially now during black history month, as we pay tribute to generation of african americans. imrf does not think that there is a problem with the pipeline we demonstrate values and behavior that really advance and support diversity, equity and incoalition, as a malcolm bald ridge award winner, we think

about it from a holistic approach we strive for organizational excellent, which we believe leads to desired results and best practices in many areas, including diversity and includes i think the pipeline is there, there's ample candidates, diverse managers to invest in, but i think it's about being intentional. it's about being supportive and committed to diversity and inclusion. i believe we have shown our results as of december 31st, 2021, we had minority limit on managers that managed 32.4 billion of total assets, about 24% of our total portfolio that's an increase from 2020 so we're finding diverse managers and finding diverse candidates to hire so, i think that, you know, assets managers out there, and the financial industry can find them as we are

we are surpassing all of our target goals. >> interesting you know, it's been a couple years, but we did hear a lot of fresh targets from banks even some corporates in terms of making capital available, deploying assets to those in a diverse world. i wondering, do you think those targets ended up being material, are you beginning to see that rubber hilt the road >> well, the further we get away from 2020 and some of the things that happened during that time, i think we have to keep up the discussion we have to keep the pressure on. it's not enough to, you know, target certain goals it's not about targets it's about behavior, about organizational culture, because if we don't change those things, yes, can continues to decrease i think in trying to keep the conversation going, and trying to pivot this to more

organizational culture behaviors, that is more lasting, more sustainable that just hit targets and really throw money at it. >> angela, were your funds specifically as concerned, how do you determine where to make these investments, and just as importantly, how are you measuring success? , well, truly we manage around other asset allocation policy, so we're looking for within each asset class, where we can diversify our portfolio, where we can complement other managers we're looking for net strategies, looking to invest in middle markets, lower market investments. that's where we utilize our diverse managers, because they're finding strategies in those sectors, those spaces. right now, with the markets

being what they are and the large-cap mega tech firms really adding volatility to the market, we're looking to those managers to really give us more consistent outcomes with less variability in our returns, our total assets, and really our funding status we measure it by the performance. we measure it by how many managers we're invested with, and a percentage of our total assets that are managed by minority and women-owned firms. >> angela, does that suggest in general you're looking to pull back on the risk level of the portfolio? you mentioned that you don't want as much volatility, given where the markets have been and your funded status >> true. i think this environment is very testing, with higher inflation and, you know, just enhanced

valuations so we're not thinking that we're going to replicate the outside returns we've had. we ended the year at 17% net, but we're looking into more lower returning environment. we want to take steps to optimize our asset allocation, add more diversity but we want to make sure that we're preserving capital, but also participate still in the growth opportunities that are out there. so, sfarps, you know, balancing things, we want to add balance to our u.s. equities, our international equities, and really kind of take profits off the table in more expensive areas of the market, like technology growth, like the u.s., and reorient to other parts of the market that have more discounted valuation and

the quality. >> i'm curious, talking about retirement funds, a big story in the labor market last year, last 12 months, at least, has been the abnormal amount of early retir retirements. a lot of those have come from people who had assets in their house, but also from stocks. as a fund, has that been an interesting dynamic to absorb? >> it has been across our members, and it has been internally i feel like every week somebody is announcing they're going to retire, but that just goes to making sure that we have, you know a vibrant, i guess, just a process around bringing in more talent, bringing in diverse talent, and bringing in, you know, younger talent, more talented people that can really kind of just shore up our processes, and those of the

labor market besides retirements, you know, people are leaving a labor market for countless reasons we want to make sure that's representation that's still in the labor market i think it has, you know, been a part, but it hasn't affected our funded ratio as of yet fit think, as many people that are leaving are also coming into the market >> that's what we're counting on angela a great conversation >> thank you we're celebrating black history. and feature -- here's contributor with his advice for future leaders. >> my advice forfuture leaders

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we're watching shares of lyft, chipotle and yum one common theme is pricing power. ride sharing company lyft solidly beating estimates, despite active riders falling from the previous quarter, helped by customers doing what else, paying higher rates for longer, more expensive trips in the holiday season chipotle same store sales above expectations, revenue driven by, what else, price increases, partially offsetting wage and food inflation and then, of course, yum brands, david gibbs talked to us about the subject this morning take a listen. >> in this environment, inflationary environment, we know we have room to take price and we have other levers we can pull in order to manage the pressure on inflation. i think we have proven all around the world operating in over 150 countries with very

many different environments of inflation, deflation, all sorts of different challenges in every one of those environments, we have proven our model is resilient and that we can always thrive in any environment. so we're confident as we move forward that we will be able to continue to have the kind of margins and profitability we have demonstrated in the last few years. >> so, morgan, we'll see how this game of chicken plays out, whether or not it is the suppliers, the retailers, the consumers, whoblinks first in this inflationary environment. >> it is true. not to mention the fact you had bunge results on the agriculture side as well very notable what he had to say about the labor and the challenges there and how they're navigating that, as they have record store openings, back in 2021, and the role, mike, that all of these technological investments the company is making and really the restaurant sector as a whole will play longer term on some of those pressures as inflationary

pressures including labor piece of the puzzle. >> for sure. and, you know, i think it is worth remembering these are big public companies that actually have the advantage in this economy. we're going to be lapping in the next couple of quarters, maybe the worst that initial inflation spike. so they probably can manage their way through. also i'll mention when it comes to the stocks, they were all between, you know, 11 and 40% off their highs before today so big chunk of the market after this correction that is benefiting from the fact you're making up some ground when you have incrementally encouraging fundamental news, carl. >> that's absolutely true as we got the dow up 330 here. s&p 47.75. don't miss a huge interview coming up on "techcheck" with renee renee haas, the new ceo of arm and friday, in advance of the super bowl, we will be live in los angeles, we'll get the latest action as it happens. talk about the ad market, of course, viewership and a lot more

that begins at 9:00 a.m. eastern time on friday stay with us at vanguard, you're more than just an investor, you're an owner with access to financial advice, tools and a personalized plan that helps you build a future for those you love. vanguard. become an owner.

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tech is not the only sector feeling pain lately. in an unexpected turn, so is the private jet industry robert frank joins us with more on that story. hey, robert. >> good morning, mike. the super bowl is usually the biggest weekend of the year for private jet companies. this year, they're hoping for lower traffic, because a record number of new customers started flying private during the pandemic, but private jet companies actually can't meet the demand there is a shortage of aircraft, shortage of pilots, crew, catering and spare parts causing many to cancel or delay flights. a new survey from private jet cart comparisons found that 41% of private jet flyers experienced delays or cancellations in the past six months one in ten were actually left stranded now, net jet had to suspend membership sales and new jet cards last year to better serve the core fractional owners it plans to bring the sales back this quarter at least ten other private jet companies still have a freeze on

new customers. and back at wheels up, members who paid up to $200,000 couldn't fly for 90 days last year. those restrictions were just lifted, but meeting demand is proving costly wheels up expected to post another loss in the fourth quarter. that's due to higher costs per aircraft, flights and pilots that stock down over 60% from its ipo. that share price stock telling the whole story. morgan >> hot spare to not much there robert frank, thank you. that does it for "squawk on the street." "techcheck" starts now good wednesday morning welcome to "techcheck. i'm carl quintanilla with deirdre bosa and jon fortt why cybersecurity mandian may be nadella's next target.