it doesn't appear joe andrews' fundamentals are at play here, by the company's own admission. a quick check on the markets. we're about a half an hour before we're set to open. and let's show you the board. we're going to be off about 165 points. nasdaq down 110 points. s&p 500 off about 25 points. joe, see you tomorrow night, my friend. make sure you join us tomorrow. squawk on the street begins right now. good tuesday morning. welcome to ""squawk on the street."" futures, as speaker pelosi arrives in taiwan this morning. big rattle in corporate results. yields continue to fall. 10-year now, below 2.55. simmering u.s.-china tensions, spooking stocks.

looking to lower the speaker's trip to taiwan today. cat's supply chain t. we're going to check in with jim umpleby exclusively this hour. and uber, notching a second straight loss, dara khosrowshahi. and pins surging ahead of the open. we'll start with the market. as the street monitors the development, surrounding the speaker's plan to visit taiwan. jim, everyone is trying to track the plane. but the arrivalla expected about an hour after the open. >> should be tracking the text that are right on the other side of the straight, and the massing tanks by the chinese. obviously you can't take the tank to the straits. but the chinese are certainly preparing for something very big. now, this, again, could all be rinksmanship. but i can understand why the market is down. certainly not anything that is being -- chinese are taking lightly. we are making a statement to the chinese.

we're not going to let you do these flyovers anymore. and i think the problem with that is that after we leave, after nancy pelosi leaves, does the market go back up is this and they start doing what they were doing before. the administration is saying, we're not going to let what happened to ukraine happen to taiwan. in the meantime, we're going to come up with a backup system to be able to build chips here. it's all a piece. i wish it were more coherent by the administration. she made it clear, we have to divorce ourselves from taiwan, in terms of production of key semi conductors. >> right. there's two schools of thought. one is to assert yourself in that part of the world. the other is to keep it calm because we have so much going on in europe and eastern europe. >> yeah. i don't think we're ready for two front wars here. i think that what is happening here is there is a sense among our enemies, so to speak. and i like to call him that.

just like our co-op or cooperating friends. because they're not. >> right. >> they are all, after afghanistan, all walking to test us. not unlike when we lost the vietnam war. when everybody wanted to test us. when the soviets wanted to test us. and i think that the president's actions are all about saying, we will be tested, and we will succeed, we will kill people who were involved with the world trade center, and we are taking on all comers. now, the problem with that is that it's out of nowhere that they suddenly reveal a strategy. it's the same thing like when jake sullivan is running our war response in ukraine. it's not the pentagon. everyone is kind of mystified about who is running this stuff? is nancy pelosi? i mean, how did this stuff come about? and biden has not been clear. i think one of the reasons the market is down, is we don't know what their goal is.

>> right. jp morgan's note at the desk was, she arrives around 10:20 eastern. if there is no immediate action, expect to see a rip higher. is that something that you think is reasonable to expect? >> yeah. i mean, i don't like this kind of thing. we're making a judgment. and look at the tenure saying we are in trouble. that's what i think. but i also feel the tenure was at what? >> 348 on june 14th. and. >> and finally, interest rates keep going lower. signifying recession, inflation. the analysts i checked in with, and of course, we just heard pershing square is a few. >> plus you got australians hiking 50 overnight. first month in a row. >> everything is going down. every commodity is going down. and like bill ackman did not

mention that. i mean, just, he was not here to talk about that. but -- obviously. but every commodity is going down. and yet, everyone seems to acknowledge that every commodity is going down. and i just cannot believe. last night, i had the ceo of adco on. and he said every commodity is going down. but takes time to go through. we are hearing food is intractable. food is down a lot. it's just the supply chain. he said, the supply chain gets better, and the price of liner board or glass gets better. >> sure. >> then you're going to see foods go dun. we keep hearing food is untractable. untrue. twee keep hearing oil is untractable. we are hearing it going down. when do people realize, it's going jay's way? and people are oblivious to look at the price of commodities. look at the price of aluminum.

we talked to caterpillar. they have not been able to prove that they were passing through. at the same time, how many times do we have to read -- oil is down again. oil is down. my best people who called the top of the oil. are saying i'm too bullish on oil. you couldn't have a better number than bp and it's barely up. >> now the conversation is about support in the mid-80s. >> i know. >> maybe 82 and change? >> yesterday, i thought at 90. i went to crawly garner, who is my technician, who said this thing could go lower. and she said, now, it's 8580. it's a moving target. but doesn't seem to matter to people who have decided that inflation is intractable. >> that was your good point last night. your good point was, if you get a good number on robust wages. >> then july comes back. but i beg people to look at the

actual, underlying pieces that go into the producing price. they're down so much. i remember when the ft made fun of me, when i called the top of inflation, which is today. but when you get it to the day, that's dimaggio-like. and i just say like, what? are you kidding me? do you not look at anything? >> you have gas prices now down 47 straight days. 20 states with a sub-four average. these days, national average probably goes sub-four in 10 days. >> when we were going up. it was catastrophic. when we go down, nothing. copper is down, nothing. aluminum down 13% in the year, nothing. it just doesn't seem to matter. doesn't seem to matter to to these people that all the food stuff has been coming down

rather erratically. and oil coming down. if inflation is intractable and everything is going down? then what is intractable? i mean, what? i beg you. nickel? nickel? >> others would argue shelter, right? we talked about the dynamics of housing. >> we just had rental numbers yesterday that were better. i mean, we know -- look, the companies that make houses are not denying that there's going to be a peak. now, mortgage rates are going to do down. maybe that reignites the market. but i mean, like corn, which is a basic foodstuff, has come down very good. adco was talking about how, they're like deer. they're saying, look. all the grain complex is down. but we're still going to do well. but the inflation, they only acknowledge that he might still do well, because he can put through price increases. because he passed on steel. i don't know, when you actually look at things that make it up.

he was right. the adco ceo. >> so yesterday, jp morgan said, you have the second biggest rerating of the s&p in terms of 30 years. you're getting the relief on cpi. we saw ism prices paid. do you think -- >> things are weaker. >> at this point, your risk appetite has to go up in the second half? >> i think so. i mean, look. i, wages are the last. wages could be the last scene that goes down. we have layoffs coming. i mean, when you stop hiring, the next thing you hear is layoffs. you don't hash, we're rehiring. for instance, oracle, we hear, there could be very big layoffs. we know that almost every company in the titan computing businesses, i have annette on tonight, which is arista, and

these companies are not, jcyah will tell us, while business is good. they're not hiring the titans, cloud titan as she calls them. i don't know. i think we got it backward. look, if all those numbers were going off the way they were in november, i would have thought there could have been right away inflation. but every commodity is pointing down. and china is not buying. europe is getting progressively weaker. they will not be using nearly as much power, nearly as much steel. and by the way, semi conductors are coming down in price, somewhat radically. the onus is on people who said we haverun-away inflation to tell us where that is. where is it? yes. restaurants are up. but they're going to come down. or are you going to go to the cheaper one? >> to interviews we have this hour. we are going to go to cat. they did talk about operating margins improving in the back half. their own price hikes are exceeding their own cost.

>> price hikes are all going to stick? do you know, at a certain point, anyone who has been in these cycles know. i remember in liner board. they try to put it to a price increase. and it doesn't sell. okay. not everything sells when business is weak. now, i like jim. i want to hear why he feels that confident that people continue to buy their merchandise, particularly with the strong dollar. but again, i do not buy the notion that everything is going up in price. i just don't. it's not sticking. people seem to not understand that you keep raising price, and eventually, the consumer says "i can't do it" and eventually, the enterprise says they can't do it. >> and eventually, this will flow through manufacturing and goods. >> no. >> i think you'll get gxo, bell, logistics company. i can't imagine they're going

to tell us business is accelerating. prologics did say business is good, that's the largest ware house chain. but when i look at amazon, would it shock me if they added another hundred thousand? they added another 1,000 people and got it wrong. shoppify added people and got it wrong. i can start seeing mergers. anyone who read the pinterest call. pinterest is about to merge with paypal. the question is how many needed these companies. so look. i am absolutely perfectly willing to listen to the fact that wages might be going higher. and if you go to restaurant, it may be more important. but there's something i discovered. and if they're too expensive, they don't go. it's shocker. [ laughter ] you take that beard of nine. they find it for someone who has eight. >> there is a magic number. >> you take it to 10 and they

use uber to bring it to you. unfortunately, a lot of people run a lot of businesses. when you take your hotel prices up too much, amazing, your hotel is empty. when you take your food prices empty, avocado too high, amazing, seats are empty. do people raise money and think, everything is fine. >> hasn't happened to marriott yet. >> i was surprised. >> rev par, prepandemic. >> all i can say is you have to have fewer chefs. >> fewer chefs. or dishwasher? maybe you do the dish washing. >> i've done them. i was a waiter once. and my father, i had to stay late. and mr. fox made me wash dishes. my father came in and said, you're fired. you're not a dishwasher. and i tuesday, dad, it's not that much. i just think, and i put a little levity in there. boy, was the last hour really heavy. i feel like, guys, a lot of things are going the way of people who, if you're jay powell, who is not the least

bit smug, i think you're listening to the commentators, who are saying, i wish they would look at what makes up the dpi. so yes, used cars have not come down a lot. but when you get to semi conductors who have not been used in europe and are coming here. you're going to see a flood of cars, inventory of cars. i know it's possible to believe. i know people don't think it's possible. i've seen it over and over again. i remember, when bethlehem steel earned two bucks and lost two. people don't understand what can happen to an economy. it can go down so fast. >> they have not repealed the inventory cycle yet. >> no. and you know what's a funny thing? you know steak? anybody who is poor knows what fricka deltic is. >> when we get to this, we'll talk to ceos of uber and caterpillar. we'll get to marriott, cummins. a little bank.

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shares of pint rest going to surge. it is the social media company's largest shareholder. the activist investor saying the company has significant potential for growth. also better than expected numbers. maus down 5. not as bad as expected. >> no. but look, i think the theme of the whole conference call was you brought in someone from

paypal. and what has happened is a lot of people think this is a logical candidate to merge with paypractical. remember, you've got elliott in there. and elliot here. when you go through bill reddy's background. he was about particularnology and payment. you could monetize. it would be more than just advertise. when you go to the site. just go elsewhere to buy. soy bring in bill, who handled this stuff for paypal. and it's natural. you'll buy this stuff. right now, it's a quiet, nice site. there's kind of veiled references to twitter, that we're a sweet and kind site. but i would say that the combination would be very powerful. i do not think, obviously, dan schumer wants it. he took a look at it. >> again, going back to silverman's ipo day. we already said, company is not thatpromotional. that's been the knock on them.

>> i've interviewed them many times. and one of the reasons i like them. other than that he's from the brass, is that they're not trying to hook you in a salacious way. twitter, a lot of people come in because they want to see combat. there is no combat on pinterest whatsoever. it's just kind people. just nice and kind people, good people. >> yes. >> it's like the world, if the world were inhabited by everyone just on pinterest, there would be no more war. [ laughter ] >> so what do you make of inehorn there. einhorn twitter and elliott pins. what do you think will be the more powerful partnership? >> i think this pin is the real deal. >> yeah? >> i mean, i just -- they underinvested. they had a huge amount of cash. a gigantic amount of cash. they can turn on the cash to do international. which they are very slight on,

and it works well. then you have the monthly average users go up as international. you -- then you got it. i, by the way, feel and have said that einhorn will be forced to buy twitter. >> musk will. >> i'm sorry. musk will. the performance. it's a contract in delaware. most of the lawyers i speak to do not believe this. but the ones who have practiced in delaware and have made it their career, say it's open and shut. if she's going to say, the chancellor going to say, look. a contract is a contract. pay it or wees l we'll seed the capital. the chance of just saying, listen, we'll just take it from you. now, someone was saying that they'll put them in jail. completely wrong. they'll just take the money. and if he doesn't have the money. she'll say, look, your stock price is at, and you have this many shares, we'll take it.

what he would want to do, get in the room and figure out a real price, figure out a better price. if they had done that -- >> we're sort of dealing with opacities, regarding musk's measures. and this on the part of twitter, probing into musk's social circles. >> i just think that that was brutal. i mean, they picked a bunch of guys here. one of the things, i've learned this, like one time, a friend of mine of was subpoenaed because of something i was involved in, and he said, what did you get me into? and i said, i didn't get you into anything. and he said, no, why am i involved in this. unfortunately, i've been subpoenaed a great deal of time. it's very big. >> unpleasant. >> yeah. because maybe in there is an e mail with, what a joke twitter is, musk, to jc cal canas. and he says you obviously don't mean to buy it. and he comes back, musk does,

and says, no i intend to buy t. you're trying to find e-mails to trap musk. musk needs to find an e-mail that says, we showed them 5% of the users were phony. they will not find that. because it's not. unless ned siegel is a mole. and he's not. or a double agent for musk. and saying it's 25. the board of twitter wants that thing sold so badly. i have no idea what musk is talking about. and now when they're picking on his friends? that's like pulling the wings off of flies. can you imagine? you're like, every e-mail, those guys. dont you think that their is some e-mail? >> limesdale says, i had a couple of snarky comments. we'll found out more. >> i want to see everything. and it proves, david fave row used to say yes or no. it's horrible to e-mail david.

like why? like letter "y," letter n. >> yes. not his first rodeo. >> i think these guys are going to learn it was bad to joke about twitter with elon musk. october is just around the corner. coming up, double-header. you don't want to miss caterpillar's jim umpleby and uber's dara khosrowshahi.

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cross currents today. not only corporate results, but also geo political tensions, as we continue to await speaker pelosi's arrival in taiwan. yields down. futures remain weak. in a moment, the opengni bell and uber ceo, dara khosrowshahi. don't go away.

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jim had a conversation with the guys on "squawk" this morning about payment processors, specifically visa. >> yeah. there's an assumption that mastercard is doing the same thing. so i got michael meback. and he is the ceo of mastercard. and he goes, thank you for reaching out. we fake this seriously for adult content merchants. we also work closely with law enforcement in organizations to monitor, prevent and detect legal actions. we have zero tol ranls and continue to act swiftly, when we discover such activity.

the use of our cards at porn hub was stopped in december 2020. i know it's hard to hear. and i know these people are covering. it's a very joyous day for them. but there's very serious charges to levy. and i wanted to clear it up. >> we continue to wait for more specific comments on visa ceo itself. >> big board as jim said. lgxo. first anniversary of the listing. and you have them on tonight. >> yeah. i gotta know. because some of the quarters are telling me that this is a slow dramatic. some have said this to me. again, that would be keeping in mind of my analysis of business going slower. which is taking off the pressure and inflation. we've got a lot to ask him. it is the largest one. >> we've all gotten familiar,

jim, with supply chain. by the way, the price of a 40- foot container from shanghai to l.a., is now down 30-plus, year on year. >> back to the long-term meaning. >> again, i say the onus is on all the people who come on. and say, we gotta go to 4%. and with rampant inflation, when they do not know the facts. and the facts are just not on their side. they're not. >> by the way, guys, at the nasdaq today, audit and tax advisory firm, kpmg, ringing the bell in honor of its 125th anniversary. >> had michael seber there from t-mobile. and verizon and att are not raisingprices. that's because they are worried. i'm sorry. t-mobile is not raising. but you can be with verizon att or go to t-mobile and lower

your bill. >> right. >> that's factored in. now, the mannheim index for used cars is not showing steep decline. and pricing is steady. but that has to do with semi conductors. it's all semi conductors. >> that was a great interview last night with hertz. he talked about it being a risk business. and although you could have 12 to 14 million new sold. used market still 80 million. >> steve sheridan is cfo, trading house. he said, listen. the whole model of the used cars is wrong. what you want to do is trade it. it's a very liquid market. he traded with carvana. i don't know the report is expected soon. but share is crushing it with a business that is dead. >> take a listen to what sher told jim last night. >> what's happening with the electric vehicle. and this is a first mover edge

for us is that we're deploying leisure channels. snow better way to test an electric vehicle than to rent one from hertz. >> speaking of the leisure travel. marriott beats revenue 180. >> the goods are the ones that increase in price. service can be avoided. you don't have to go away. which is why i think there could have been a big blipup after we were free from covid. then it comes down. we'll have air bnb tonight. and that will be the secret to the puzzle. because a lot of people have gotten away from true brick and mortar, traditional hotel. but at the same time, we have uber, which seems to indicate the other side. so there's enough mix. but again, brian has kept down inflation. we have to realize, some of these technologies have kept down inflation. that is anti-inflation company. but we all seem to forget that

technology is working to cut inflation. i don't know. i'm a little down about this. because i can't seem to get it across that we should look at the facts. >> the bond market clearly agrees with you. why are you so upset? >> gotta take to it to 4 and it's intractable. but there were people who don't want the market down or have simply made up their minds that idiologically, we are facing inflation. >> all positions are off side. and average losses are large, which could lead to a sizable amount of forced unwinds. >> yes. large companies may have money. i'm always surprised. i have not been looking at short positions. and now i look at if all in time. and it's always 12, 13, 15%. >> because july was so painful for them. >> yes.

and these guys just said, don't worry. pal is a joke. pal is too late. but pal is a very serious guy. those of us who have known him for a long time are like, do you think he fell off a turnip truck? i don't know. ask jay darrow. but he did not. the one thing he has not done is ad bad job. woo we have 3.6% unemployment. since when is that bad? unless you're a rich person, who has notolerance for poor upon people getting jobs? 6% short of that guy. reports tonight. 6% shorter. i'm sorry, darryl t. >> we'll talk to dara in a moment. >> real quick. some of it is being driven by return to work. and s&p had a good quarter. >> they do. big buy-back. this is david simon, so-called meanest person on earth. and they did a nice increase in

distribution. i had dom woodall on at the end of the week. shopping mall and shopping center. shopping mall, from simon. everybody in the mall is doing poorly. except for david simon, who is in the mall. >> he said retailers are doubling down. page, one of the times today, has a whole story, where cities, where return to work won. there's a quote from one worker saying, everybody i know is in the office. >> now it's come in or go to another place. no more stay at home. because we're all vaccinated. and you know, it's now -- remember, we had, i had humana on, which is the second largest, well, one of the largest four. and they said, it's not as bad as the flu, in terms of hospitalizations. so i mean, if we have a big bout of flu, are you going to stay home? >> no. >> wow, the flu is really raging, i'm out of here. no, you're coming to work. >> some argue, look at what the

president was able to accomplish in isolation, between the c.h.i.p.s. act. >> look. and hertz is saying the company is coming back. very exciting. because here's a man who made certain promises and completely delivered on them. uber's shares are surging. i'm reading this. growth is up 105%. cash flow is now positive. dara khosrowshahi, you are a miracle worker. and you said that the goal post is in a may letter. and you needed to show that you were making money. and i said, this is one guy who will do it. how does he do it? >> well, listen. i will say, it wasn't just the main letter. this is, it's a bunch of work that we've done over the last couple of years. and the may letter for us was symbolic in saying, hey, this is real, we're going to draw profitability. and you've seen the results, right? which is the top line is strong.

29.1 billion dollars in terms of gross bookings up. cost of currency. ebit, $164 million. well above our guidance range. 800 million better than it was last year. and of course, show me the money. free cash flow. $382 million in free cash flow. it was a strong quarter. but what is important to me is it was a strong quarter, both top line and bottom line. >> there's been lots of changes in the industry. delivery business great. number of wannabe drivers, great. the e.v. is great. you just checked box after box after box. a lot of people doubted what you and your team could do. this is a rather quick turn. so was the underlying business always great? or did everything start going your way, you said, we gotta start doing a cash flow? >> i think we've always been the leader in our category. you talk about economic weakness. and there's a lot of talk

there. but there has been a shift from spend on retail to spend on services. and we are the ultimate service company. and the world is reopening. mobility business is hitting it out of the park. not only in terms of top line and bottom line. but also in terms of competitive position. and in a market, where more capital discipline is needed, you know, we think that accrues to the biggest player, to the biggest brands, uber, we're the most diversified, we're an all weather company. when the market opens up, uber mobility does well as well. this is actually in a funny way, the perfect market for uber to compete in. >> what's going on with driver supply. right? courier base is all-time high is this. >> yes. >> seemed like the other day, all we talked about was shortage of drivers, when is autonomy going to rescue us from this crucible? >> we're still working very,

very hard in terms of driver supply. and three elements we worked with. make it easy for drivers to come on board. and one of the structural advantage. you can come on to uber eats. and we'll graduate to mobility. the moon you can make now is $37 in the u.s. for drivers who are driving. so substantial. the second is work experience. how is experience? our customer service is better. we just innovated on up-front destination. you know where you're going, you know the price you'reing. that was the number 1 complaint customers had. so we've innovated and of course, the earnings help in this environment as well. >> where are they coming from? are they already employed? coming off of a job? where do you think the spry supply is freeding from? >> we have five million on our plat form. some of them have another job.

some are returning to the work force as well. one constant factor that we see is that 72% of our drivers say that inflation, and being able to pay for groceries and kids' expenses, et cetera, played a part in their decision to come on to the platform. and we think having flexible work like uber is good for the economy. >> when i go to my app, which i go to probably to 2 or three times a day, because it's terrific. >> order a little lunch over here? >> i've done everything. liquor, i'm just a huge aficionado. we wanted you to win. meanwhile, you've got a huge amount of money. what can you d>> well, what's really important is to get to pandemic grade.

never get comfortable. the goal for us is to drive to investment grade. positive cash flow is important. once we know we can have access to good markets or bad capitals. listen, then we're going to listen to shareholders returns. ultimately, we're here for the shareholders. and it's my opinion that the shares represent a great buying opportunity. and once we have a rock solid balance sheet, then we can look at capital returns that help shareholders one way or anotherment. >> we talked a moment about return to work and office capacity. do you think that's driving this? >> i think the broader reopening is driving this. when we look at use cases. going to the airport. going to work. going out at night, et cetera. it's just the reopening generally is happening. so the strength isn't coming from one sector to another. when we look at markets. the east coast to the west coast are much stronger. and the east coast markets do

happen to be return-to-work markets. west coast is a little slower. >> isn't europe going to be behind on that front? >> no. europe is returning to work. the whole debate of working at home from europe is not as much of a thing t. european markets, uk, france, et cetera, are very strong. very optimistic. >> how does that square with collapsing, electricity prices. >> i think it goes to the shift from retail to services as well. and remember, our business, for example, in germany. it's really young. our business in germany, spain, there's a ton of growth ahead of us, both in terms of geographic penetration. but also, new product penetration. getting taxi. two-wheelers. >> where are you, versus door dash in terms of pricing? i often find you off the

market, later than door dash. >> we are competitive with door dash. if you look at our category market and share, and in the u.s. market overall, it's flat. really, what we're looking to drive is, drive uber one membership program. we have 10 million uber one members as well. with the uber one membership, you get a discount on your fee. >> obviously there's a huge debate on inflation hurting the middle class. we know that. do you see any downward pressure now, that some of the commodities are coming down? but there's good news here. >> you know, we're looking to see if inflation is having any kind of effect on the business. are our food customers trading down? zero evidence of that. is a black uber rider who likes riding uber black, trading down to uber x, very evidence of

tradedown at this point. we're watching it very closely. the most obvious effective of inflation seems to be to get more drivers onto the platform at this point for us. >> i think that when you first started, everyone was trying to grab an extra shift. there was a big extra shift problem. and you could get people, i used to get inundated by people at my restaurant. sit down at the bar, like can i have a job? can i have a job? and of course, i ended up paying fortunes for dishwashers. are we going to get back to people saying, i need extra money, extra money? because that would be the sign that wages have peaked. >> i believe that demand for blue collar laborers have decreased. and seeing a bunch of tech companies there. hiring freezes. setoffs, et cetera. i think you're going to see the effect on the labor force. first with white collar work. why not blue collar work? it's strong. the driver inflow for us is

very strong. earnings are great. the experience is terrific as well. and what we have to get ready for, september is back to school. and demand on mobility is going to skyrocket. and we are prepare being ourselves for a very, very big september. >> i want to thank you for coming on. again, i reiterate that we just pull for you. look. it's a business show. but certain people really like you. >> thank you. i get to talk about the good stuff. but there are tens of thousands of employees who are doing the real working. >> thank you. still to come, exclusive with catter pill par's jim umpleby. first, we mentioned 10-year cracked below 2.55 today. evans spoke. there it is. 2.6 on the 10-year note. and the dow is down 243.

dolly varden silver is advancing their high-grade undeveloped asset in bc's prolific golden triangle. the property includes two past producing mines, and over 135 million ounces of silver equivalent. dolly varden. caterpillar shares falling. second quarter did beat the earnings estimate. i was looking at the numbers, i said, well, when we hear the commentary.

otherwise, it was good. but we gotta figure out what is going on. because the stock is down 9. joining us exclusively, caterpillar ceo jim umpleby. >> good morning, jim. great to be here with you and carl today. >> jim, it's obviously mixed, because i'm reading your conference call. sounds like you're in say the s were broadly in line, but the margins came in slightly lower than expectations. let's talk about that. i'm a huge believer in your ability to make the margins go up, without having a lot more sales. this did not seem to go that way. >> thank you first, i'm proud of the team they performed well in a challenging environment, and more specifically supply chain constraints. we had some mixed issues in the quarter, again, as we look forward for the balance of the year, we do anticipate improves

margins, as we look forward to the rest of the year one is price realization and increased volume. so, yes, the future could be brighter, but shouldn't some of these at the moment being doing better one of those, at least. >> sales to users was impacted, as you mentioned, by china it was also affected by supply-chain constraints we had some commissioning delays, which impacted revenue recognition, and energy and transportation tends to be a yearend loaded business. as you know, the market dynamics were aably different for our

machine business, so as is typically the case, we expect increasing sales for energy and transportation towards the end of the year, stronger third and fourth the good news is that demand remains strong across most of our markets. cat is a diverse business. we serve a whole variety of markets around the world but at a max rho level, demand remains strong the issue we had was supply chain constraints. >> how quickly do you think that is rolling off jim and i were talking about some of the freight issues that were ameliorate d. >> the primary issue we had was supply chain constraints is the ability of our suppliers to -- some of their suppliers have problems they're dealing with labor availability issues, so really it's not supply chain

constraints are not primarily freight related. they're more related to our suppliers' abled to produce new components i'm not going to predict when this is going to get better. there's been lots of predictions post-pandemic as to when the supply chain issues would ease in our business we have not yet seen a market improvement in the supply chain >> there's a $2 billion in the backlog. explain to me the way it works why can't the cat ceo call the people on the supply chain and say there's nobody bigger than us, if you want to do business in the future when it's easier, give you what we need now. you have that leverage, don't you? >> i wish i had that kind of power. unfortunately i don't. again, many of our suppliers had issue with their suppliers, who

had issues with their suppliers. we're learning more about our tier 2 and tier 3 suppliers than we ever have in the last but, no, jim, i wish i had that kind of power, but i'm afraid i don't. >> although we saw some moderation in residential. a lot of us are trying to figure out whether jay powell will get inflation under control. can you describe to me what that weakness >> yeah, residential remains at a strong level, but it wouldn't be surprise figure there's moderation there, again with rising interest rates, but as we think about nonresidential, that continues to be very strong. we're quite encouraged by the opportunities for nonresidential due to the infrastructure package that passed recently we expected impact of that package, in talking to our

customers, they have an impact on our construction industry business in late 2022 and into 2023 we're quite bullish about that conditions are improving as well we've seen a large increase in the backlog, otherwise and gas projects, a lot of gas compression and other oil and gas production again we have to work our way through in getting the products shipped, but we're encouraged by what we see in gas and oil also. >> there's still a host of worries regarding the macro in europe, especially heading into the winter, not to mention energy costs how do you describe the trajectory europe is on right now, and and what kind of outlooks is your general sense the next 6 to 12 months. >> we did see a decline, primarily driven by currency certainly business conditions are moderating a bit

in europe we're keeping a close eye on that. there's an infrastructure package as well that passed, that we're hopeful will have a positive impact there. again, on a macro level, we see strong demand across the board again, our issue is supply chain and our ability to meet the trong demand we have we told investor that is our second quarter top line would have been high other than it was if not for supply chain constraints. >> you have no excuse about the dollar i'm really proud you could say the japanese, they're suppressing the yin, the europeans are suppressing the euro you didn't blame to say guys >> it really is about the supply chain and our ability to get more out of our suppliers. that's the issue demand remains strong.

>> it was is a pleasure to listen to your call. thank you so much for coming on the show. >> thank you jim thank you, carl. >> good to have you. cat will be the main drag on the dow. >> and it was up running into the quarter. it does seem like it was a weak quarter. >> how about tonight >> so the people, the logistics company ringing the bell -- well, look at this jeff jayshree ullal, who i think is a rising star, and brian chesky, whether the services are still on safire >> and amd and starbucks to kick around >> look, but then you wouldn't get any homework done.

>> we got him in we'll see you tonight. >> absolutely. dow is down 300. we're ckn mont ba ia me

rick santelli live at c cme hq affectially known as jolts, expecting a number rightaround 11 million it's a miss. 10,698,000 it's the lightest of the year, this is the lightest going back to september in the rear-view mirror there is a revision last month 11,254,000, it's a subtle revision higher and for the record, march is the all-time high going back to recordkeeping, 11,855,000. keep an eye on that three-month to ten-year spread, it's been moving, of course, flight to safety and pelosi is what everybody seems to be watching carl, back to you. good tuesday morning, welcome to another hour of

"squawk on the street. i'm carl quintanilla with leslie picker, david faber has the morning off, and morgan brennan is on maternity level. in the meantime we're watching a lot of macro, and the speaker's trip to taiwan >> here are three big movers, starting with oil giant bp, raising the dividend payout. getting a boost from high commodity prices we have seen this story over the last few weeks on news that activist investor elliott management is now the company as largest shareholder. shares of pinterest up 14.5%, but we'll have more on that story later this hour. we'll end with uber reporting another big loss, shares rising double digits this morning, up more than 14%, ceo was breaking down the results

>> the topline is strong, $29. billion in terms of gross bookings, cost of currency, ebitda, $364 million, well above our guidance, $800 million better than last year, and then, of course, show me the money three cash flow for the first time so it was a really, really strong quarter, but it was a strong quarter both top line and bottom line. >> show me the money, carl, is what he says and they delivered clearly the market is appreciating that. i liked some of his comments on inflation as well but for lower cars uber black, or uber x or anything of that sort. >> you might take a job, and

they made it ease why are to on-board as a driver one, chasing investment grade is clearly a priority for them, and shareholders return, things we haven't served with uber. >> free cash flow we hadn't been associating for years. clearly reacting to a shift in the market the idea that growth isn't everything things we learn in business school, but haven't been necessarily as prioritized in the last few years. >> quite a gain for uber today back to the broader markets, on pace for the second negative day in a row to kick off the month of august. mike has more. >> a pretty intuitive support for the markets to hesitate. it gives you a chance to assess, i think, the nature and quality

of the rally i think you have what i would call a borderline breadth breakout there's a lot of people slicing and dicing these, saying it was almost brought enough to trigger these signals but maybe not quite. earnings are holding up relatively well, especially with the expectations of them, strong nominal, gdp the question now is are bonds too strong it seems booking an issue, but also clearly people concerned about growth also, perhaps there's this idea of the flight to safety.

i have to say that strikes me as an but there it is, it seems to be, at least on traders' minds >> stay with us, mike. we just got the jolts number we know what ism prices said -- fastest decline in ten years, but i think the fed has more to do >> i think it does i think the fed has to be, probably is most encouraged by the jolts data that's the goal, really, they call it the beverage curve the whole idea is to try to get job openings down without affecting jobs the eci numbers, and some of the other economic numbers are probably going in the other direction.

cpi is nine and the fed fund rate is just over 2% historically, the fed hasn't stopped tightening until the raid was above the cpi i just think they have a way to say go they just started tightening in march, and they also have really a balance sheet decline, too >> mike, you mentioned the flight to safety tread b of after points out up, the clients were actually net buyers of cyclical stocks on the equity side, it seems like the equity

market has really punished cyclical stocks going into this phase. the defensives have led. >> you priced in a higher probability of recession, i'm not saying we priced in the true implications of an outright recession, and earnings going down a lot, but maybe you have priced in the growth scare i wouldn't necessarily say it's a conflict, but where we've gone down to 17, maybe that's fairish value, smaller stocks look even cheaper, so that's why it's a nuanced story. >> i'm curious what your risk appear tight writing in a client

her yet to investors that he believes this, this is not it was oversold going into this, and now people are coming back to it. >> i would have to say my risk appetite isn't particularly large at this point. i think there's been a meaningful change probably the most significant monetary changes since voelker starting targeting reserves i think we're just starting to figure out how it affects, and before we got in together, we are talking about how uber is focussing on free cash flow. it also meansing there going to

be change in compete behavior. i'm not sure we can count on the types of gains from the markets that we had in the past. this is a brajd-new ball game in which capital, both debt and equity will be rationed. and instead of geopolitics that will keep a bit in there >> the wires this morning, jason, saying that some taiwanese jets are now escorting the speaker's planes into taiwan

we already know what electricity costs have done there. >> on the first part, carl, i am worried about europe i am worried that we'll have a reprice of what we saw ten years ago and that's partly because i spend a lot of time watching italy and italian politics what is going on there i think is very important, very different. and some of the farmers protesting in places, i think is very meaningful. there's a significant increase in populism that i think is reflective of the fact that the

political class is not paying a lot of attention to what the voters think i think that's risky whether it's large enough to affect the u.s., that's not usually not how it works so i'm not particularly worried about u.s.'s impact on the europe, but i'm worried about europe >> maybe if they can get through this, brighter days are ahead, but it's a hill to climb. >> i hope so thanks, carl we have deal drama with twister.

julia, this circle seems to be getting wider by the day >> this is the latest twist. they were looking for top silicon valley investors, big names, many that did not seem to have a connection. now, the name include david saks, mark an degreesen, all of whom have appeared on cnbc's air. we've reached out to all of those names. they gave us a no comment, and we haven't heard back from the other.

joe lonsdale tweeted, lol. lawyers are sending subpoenas, a giant harassing fishing expe expedition i have nothing to do with this aside from a few snarky comments, but got a, quote, you are hereby commanded" document notice musk has very much fob cubsed on hosted in may, and musk spoke there. so the question is whether musk was encouraging people to invest at that summit we have no word from musk on the latest as for twitter, we reach out to

them about this report they told us no comment. guys >> it's clear they're looking for build a case that centers on the cult personality of elon musk and his goings-about. we also heard in the einhorn letter that i referenced earlier this hour, he's an investor, some history sparring with musk in his short over tesla. now he's going long on twitter, betting on that deal to close. any thought if we could see more prominent investors come to the forehere >> well, look, i think, as if you reported yesterday, the big question is whether or not you believe twitter will win this lawsuit, and get musk to pay that $44 million we'll see if more people come out of the woodwork, there have been a lot of conversations about whether or not musk's ownership of twitter would be a good thing, is there more untapped potential in this

company it is worth noting that up until this point, leslie,ist not like there's been any other bidders to try to swoop in here. >> julia, thanks, as we continue to watch that saga. as we go to the break, take a look at the road map, including caterpillar, currently the biggest drag on the dow. and a live report from china, as speaker pelosi is expected to land in taiwan within the next few minus. n'gonyertedot awhe. - common percy! - yeah let's go! on a trip. book with priceline. you save more, so you can “woooo” more. - wooo. - wooo.

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august deal news to get to td is acquiring cowen in an all-cash transaction, saying it accelerates the canadian bank's growth plan. it's expected to increase by a third, and the companies say that td's balance sheet should bring immediate benefits to cowen's existing client base this was a conference call about an hour ago. >> the combination will allow us to better serve our existing clients, by providing access to the expanded range of products and services and leveraging the strong balance sheet in banking

capabilities the clients will also combined from our combined expertise and talened. i've been impressed with the td's leadership ahead. >> td sold nearly $2 billion of charles schwab shares to fund the transaction. shares of schwab are trading about 2.5% this morning. however, cowen shares are higher td shares are relatively flat on this news, down slightly, but counsel up about 8%, as the transaction is expected to be slightly accretive to td's 2023 adjusted eps it reps about 1.7 times the tangible book value as of march. j & p writing that it represents a, quote, healthy discount to other notable brokerage acquisitions i get it.

it's rare to see cross-border deals, rare to see on a larger scale some of the financial services tie-ups, so this was an interesting bit of news. >> yeah, definitely a diversification effort on the part of td jeff solomon said when td approached us, it wasn't something we were actively pursuing, but it was clear that td had done its work >> it makes me wonder if we will see other types of deals, just given the slowdown td obviously being opportunistic here, according to analysts, getting this at somewhat of a discount, but perhaps, you know, cowen is seeing the benefit of the balance sheet and its ability to compete in this new world to say, you know what?

it's fine, we're going to take this price tag and run with it. >> we'll see if that sort of industry narrative continues. still to come this morning, we'll dig into cat's quarter first, though, check out shares, trading after a slight miss. it did warn a lot of uncertainties related to inflation, even the pandemic still might impact the performance. stay with us wow! it's been 38 years since we were here. back then we could barely afford a hostel. i'm glad we invested for the long term with vanguard. and now, we're back here again... no jobs, no kids, just us. and our advisor is preparing us for what lies ahead. only at vanguard, you're more than just an investor you're an owner. giving you confidence throughout today's longer retirement. that's the value of ownership.

can the industrials try to bounce back? up around 9% on the last month of trading, but still more than 10% off the 52-week highs. caterpillar not helping today. the dow component did beat forecasts, but revenue came in short of consensus sales were hurt by its exit from russia, which jim talked about in the last hour >> the primary issue was supply-chain constraints was the able of our suppliers to produce more products. some of their suppliers have

problems they're dealing with labor availability issues, so really it's not supply chain constraints are not primarily freight-related, but more related to our supplier's ability to produce more components there's been lots of predictions over the last couple years, post-pandemic as to when the supply chain conditions would ease in our business we had not yet seen a market improvement? the reply chain. stock is down around 9% year to date, though jim pointed out july low was 167, so you're still $20 ahead of that, as it ran hot into the quarter. >> despite the headwinds after the break, we're talk about that pop in pinterest, shares up around 11% we're back in two mite nus. this thing, it's making me get an ice bath again.

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♪ ♪ >> good morning, 'em seema mody. here is your cnbc news update. russia condemning house speaker pelosi's expected visit to taiwan at a time of heightened tensions between the united states and china, pewing saying it provokes oregon authorities are investigating four additional deaths potential linked to last week's heat wave the state says the designations of heat-related deaths are preliminary, requiring further investigation. california's governor declaring a state of emergency to speed efforts to combat the monkeypox outbreak

it is the second state in three days to take the step. governor newsom says the declaration will help to cured nate a governmentwide response, on where people can get treatment and vaccination. >> carl, back to you. about an hour into trading stocks here. >> bob pisani has more on today's moves. >> a look at the sectors here, and the commodity story is very key here like materials down here, mosaic talk, about good demand they like it when commodity stocks come down here very curious about tech.

catty wood's ark fund is doing wet today. you can't be surprised by the summer doldrums. they need more evidence of this fabled soft landing, but they don't have it yet. shipment prices lower. we need more the big risk is that inflation stays high. still high here, so in terms of the earnings, i was very encouraged by the demand side.

>> i was encouraged by what i heard here it talked about volume and prices up. a lot of talk about supply chain issues still out there overall sum minks said the jim was really emphasizing that when he was on with us again, encouraged by the fact if there was really a problem with the consumer, they would have noticed from the companies if it was really a problem, they would be going much, not down. base rents had been rising the leasing momentum is accelerating and they raised the dividend to

6.4%, the dividend yield here in six consecutive quarters that's not an indication of a collapse in the consumer by any means. this is one of the worst performers on the s&p. even with this rally, they're down 33% so the reits have gotten hit badly. guys, back to you. >> bob, thank you for breaking down the numbers, and explaining what it means. we appreciate it turning back to shares of pinterest, the social media company posting second quarter results, but shares are better than expected, and elliott management confirming it is the largest shareholder of pinterest. joining us now to discuss is brian fitzgerald of wells fargo. brian, thanks for being here can you help distill how much of today's market reaction is the

fundamentals of this company during the quarter, versus just this self-described vote of confidence? users, returning to normal seasonality in the back of the year and moderating investment pace in 23 in the back half of the year. signaling alinement with the strategy, and this is perhaps very important, as they take over as the ceo. it brings a lot of pedigree from a history of paypal, brainthree, venmo, most recently google

shopping >> how big of a runway does he have here? i think a lot of people see activist investor, they see slowing growth, and say, maybe down the road, this company could be up for sale or something that ultimately gets merged if the conditions worsen from here. how much leeway do you think the street is willing to give him from a strategic turnaround standpoint. >> that's a great question he said pinterest is highly strategic business, conviction in the value creation opportunities is strong, right that's why we're the longest investor i think as bill already pointed out, the first 20 years of commerce have been about solving for the last bit of that buying, not the whole shopping experience when you think about pinterest and bill's approach how he's

going to drive the growth. now more than any time ever, shopping starts in a digital realm. pinterest sits at that intersection of social, search and e-commerce, the whole journey from browsing, searching, getting inspired all the way to the final purchase, closing the loop so it's a unique combination of intent paired with inspiration, ramping into, you know, that commerce piece, the actual purchasing shopping piece. we have a lot of runway in terms of driving that shopping experience >> that's interesting. brian, your universe includes dash and uber, airbnb, amazon, and alphabet i mean, that cinderella story should have come to d. how does it range relative to the other opportunities you have in your coverage >> great question, carl. i think what you saw through the

2q prints, you say other companies where the woes they were experiencing was very company specific too much exposure to crypto, too much exposure to investor and media streamer on advertisers. those have come off a about i. it's still pretty resilient. we heard that from amazon as well i think the business model that combine together, both advertising and eh commerce will have resiliency as we go through the macro dislocations in the back half of the year. >> brian, it feels like -- perhaps this is more anecdotal than anything, that competition are heating up you've got tiktok out there,

inst instagram how much of a role is that playing in the current ecosystem as people are looking ahead to a slowdown, restricting ad dollars >> i think what you are seeing here also it's something, the trust and the saved there, the fact that it's going to show up next to some very nice content, is something that the advertisers appreciate meanwhile, pinterest continues to innovate. so pinterest, realtime access, this allows them to information that i campaigns.

as a percentage of overall commerce >> that's an interesting outlook, too thank you so much. our next guest -- the firm sold amazon and meta months ago and recently alphabet. >> steven, explain why why selling into the strength? >> good morning. thank you for having me. the reason that we -- it's very similar to what we did with amazon and facebook earlier in the year i think at the moment it's all

about the squeeze in our consumer disposable income and advertising budget will be the first to be cut during a recession, et cetera so obviously the fate of alphabet would be much better posi positions. >> we always have a very big position in the likes of amazon and alphabet since we started the fund in 2017, but i think since we came out from the pandemic, a lot of things have changed, especially about inflation and the interest rates going up i think that's not going to come back any time soon so i think we're now going into a period that you probably want

something more defensive than just the typical pandemic winners. what constitutes defensive in this current environment i ask, because historically some people would look at the faang names and say, well, size and scale is a defensive position. so what about the current environment? >> recently we have gotten into the railroads, such as the canadian national and union pacific. that's really an opportunity of reshoring, and they would be the benefit of -- and more industrial activities in the u.s. or in the north america kind of region than before, and i think that is the opposite,

when historically a lot of the gdp week on consumer spending, and on high inflation, we would expect that to be less so even though we might be going into a recession. the market is actually rewarding companies on a globalization trend. i get you would argue that makes sentence >> i mean, we are sitting here in london or europe, that we are probably already in a recession, so a lot of these global companies, they do have benefit from the overseas expansion, asia, china, in the uk and in europe, but that is not doing that well at the moment.

>> i think anything domestically centers, and hopefully backed by the government man dade. even in the eu, we would have gotten a subsidy to chips and all that stuff, i think that could continue for a long time. >> last question, you mentioned some of the macrogeopolitical worries in europe. we have seen what german retail sales did this week, and electricity costs, the specter of a long wind because of the invasion in ukraine. do you think sentiment is getting extended, it's not counting in the possibility of anything, a shift by putin, a cease-fire, some other black swan that might make that situation end sooner rather than later? >> i think the market is probably more optimistic on that front, but i think in the terms of the longevity, in terms of

the oil and gas or energy supply, that's not going to change any time soon, so we could still be pays more for energy bills, so that's not going to change. >> stephen, that's a good mix of ideas. appreciate it very much. good to see you again. >> thank you. still to come, a live report from china, as house speaker pelosi makes her way to taiwan could this hong kong-based company be the newest meme stock? check out stair of amtd, a company that went public in mid july two weeks ago, it's already up 4,619% since its debut we're back in three.

well, speaker of the house, nancy pelosi, has officially landed in taiwan a few moments ago. take a look at a live picture, despite china's threats of serious consequences and the statement that the u.s. would pay the price. even as that's happening, we're getting some state media reports of activity across the strait. >> reporter: if there's any doubt about her visit to taiwan, that was dispelled when taiwan's tallest building lit up with speaker pelosi, welcome to taiwan the taiwanese mince tremendous says they will live stream a

welco welcoming. local news outlets say she will visit the parliament, lunch with the president, and discuss human rights with advocates. china seeing the visit as a challenge to chinese sovereignty, had said earlier, the u.s. would pay the price ahead of the visit, china's foreign minister also weighed in, condemning the u.s. approach on taiwan, calling it deplorable, also china's customs banned imports of thousands of taiwan's suppliers of different food, such as cookies and tea. militarily, state media are now reporting that pla fighter jets are flying through the taiwan straits. no word on their plans, but this comes after state media earlier quoted a military expert says

that the pla is preparing for all scenarios, including a local conflict, turning into a comprehensive confrontation. guys >> eunice, when china says pay the price, you know, is there any sense to what they might mean by to what they might mean by that? that the u.s. would pay the price if speaker pelosi were to land in taiwan, which she has officially now done? >> reporter: it's very unclear at this point. and usually, that's the way the chinese government likes it. on the one hand, we often see political pressure could be diplomatic pressure, and then, of course, there's the economic pressure that the chinese government does exert. so, for example, with those taiwan food suppliers, the customs officials say that the problem is actually import documentation. however, many people here believe that this is actually linked to pelosi's visit

so in terms of american companies or americans really paying the price, they are very unsettled american executives who wonder what this could mean for them down the road, because even though most people at this point don't believe that china will want to get into some sort of military entanglement with the united states, maybe they're just going to show military strength, with those fighter jets, but that some of the payback and retribution could come down the line and affect busin businesses >> eunice, the street has been keeping track of the u.s. senators who have traveled to taiwan in just the last year cotton, graham, scott, even democrats menendez and duckworth. is it different -- do the chinese consider it different when it is a leader like speaker pelosi >> reporter: well, the chinese government says that they do consider it different, because

he is so, so high-ranking. so from beijing's perspective. and again, the foreign ministry said in the past couple of days, that they feel that her visit is especially egregious and that it shouldn't actually happen. in fact, they feel that these visits, and especially hers, helps to embolden taiwan to think that it could become independent. and with her background having supported democracy movements actually coming here to beijing at one point in 1991, when she unfurled a banner on tiananmen square and in addition to that, meeting with the dalai lama, who the beijing government really does not see kindly upon. so given her background, they see her visit as particularly egregious. >> eunice, i'm curious about the timing of it all, as well. and if you could help kind of put some perspective into, you know, what the relationships look like right now with regard

to taiwan, china, and of course the u.s. and putting that into context with the broader political situation with what's been going on with china's refusal to condemn russia for its invasion of ukraine, for example. >> right well, the timing is one that a lot of businesspeople here say is very unfortunate for hem. it comes at a time when u.s. and china relations are at a low, but looked at least as if they were moving incrementally in a positive direction president xi and president president biden had that phone call just in recent days, so people had hoped that maybe we were kind of looking on a more optimistic trend but with this visit, it comes at a time when president xi has to appear very strong, because he is heading into a political reshuffle, at the end of the year so in the fall, he's going to potentially get this unprecedented third term and he wants to make sure that he appears tough to the home

audience and that's one of the fears that a lot of people have about her visit, that this could end in a result where you have, you know, chinese military in the area, and they've been ratcheting up their military exercises, that taiwan is also on high alert that the u.s. military is also in the region. and that this could potentially lead to a miscalculation, which could have an unintended consequence. >> right by the way, eunice, jpmorgan this morning said that the plane was scheduled to land about an hour after the u.s. open, which is a few minutes late, as we take a look at the pictures here it is dark, but you can see the speaker meeting with officials they went on to say this morning, eunice, if there's no immediate reaction, you may see markets move higher. and in fact, the s&p has gone green. the dow has erased its losses, roughly in half, as we've gone pretty much in a straight line, higher for the past half hour or so is the expectation that the fact that she's landed, it was

uninterrupted, is a sign perhaps that they are going to tolerate this meeting, even if they don't like it? >> reporter: i think it's difficult to say i mean, we're watching this in realtime the state media said that those planes, the chinese fighter jets, are heading to the cross straits and that they're flying in the area. so it's obvious that china is trying to warn and have -- well, before the visit, started warning already, and said that they were going to take some forceful actions it's difficult to say exactly what they're going to do at this point. >> well, obviously, we'll do our best to track her whereabouts as she makes her way around taipei. obviously, we're going to receive a warm welcome, eunice, as you pointed out, a huge story for the markets and the world today, actually. thank you very much, eunice yun, joining us from beijing. let's get a sector sort this morning with our dom chu >> so markets to your point are off their lows, just about flat

on the session right now, but you are seeing the leadership, as you can see behind me here in some of those more defensive sectors. so it is utilities, it's health care that's helping to lead the rally so far now, the material sector is among some of the worst relative performing stocks out there. you can see the second-worst performing sector in the s&p the biggest laggard in that group right now is sealed air corporation, this is the packaging manufacturer its revenue came in slightly below expectations earlier this morning, after weaker than expected results in its food packaging operations other laggards, you have metal and mining names like newcorp, amcor, air products, pp&g. keep it right here markets are moving wel 'lsee what happens with this taiwan visit for speaker pelosi. stay with us right here on "squawk on the street.

when we started the show, all three indexes were clearly in the red the dow currently down about 174 points, but the nasdaq has since turned positive, now up about 0.2% you could see the broader

indexes, the risk-on trades take place after that plane touched down, carrying house speaker nancy pelosi in taiwan also, taking a look at the ten-year yield, which is trading higher as well that will do it for "squawk on the street." "tech check" starts right now. >> good tuesday morning. welcome to "tech check." i'm carl quintanilla with jon fortt. deirdre bosa is off today. uber revving up guidance while turning cash flow positive for the first time shares enjoying their best day if a couple of years, even with the big loss much more on what its results mean ahead for investors lyft and airbnb later this week pinterest's stocks up double digits, despite growing concern over ad spend. is eliot's veinvestment a reaso for you to buy as well and we'll look at all of tech. and we're going to monitor the situation in taipei, after