help you have the tough conversation with your management it's monday, august 8th. "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm brian sullivan along with andrew ross sorkin who will join us shortly joe and becky, i don't know where they are thanks for joining us. stock market may have another good start to the week in a nice rally for the equity markets we are seeing stock futures up 67 points. they are higher nonetheless. s&p coming into the week on a nice win streak. three weeks. will we make it four we will find out it has been a good run for the

equity market. nasdaq up 15% in 30 trading days stocks go up and yields go down. it feels they are going in slightly different directions. 10-year treasury at 2.8% that should help mitigate the mortgage pain we have seen at marge mortgage rates above 5%. they are ticking below that in areas. you can buy it down with points. what else is going down? crude oil. still up $12 a barrel from where it began the year. it is well off its highs and when it spiked earlier this year on the russian invasion of ukraine, the price of $88 in europe the saudis raised selling price to asia. these are what they call the paper markets. the futures. the physical oil market may be stronger

still price of gasoline has come down nicely. it has declined for 52 straight days we will get more in energy there is a lot more because the big story is out of washington, d.c. it has a lot to do with energy the senate passing inflation reduction act. build back better ii or the manchin spending bill. all republicans against. all democrats for. probably not surprising in 2022. let's get more about what we know and some very last-minute cho changes with ylan mui. bernie sanders doesn't like it the gas and oil industry likes it if everybody is annoyed, i guess that is a win? >> reporter: they may find issues democrats are celebrating the passage of the package in the senate over the weekend. as you mentioned, there was last-minute drama leading up to

the moment the senate parliamentarian knnixe the issue with the private health care. the framework of democrats proposal to remain in tact medicare can negotiate the price of insulin it affords subsidies and incentives for clean energy and invests $80 billion in the irs >> this senate democratic majority achieved with countless others come to washington promising to do and failed to deliver. i'm confident that the inflation reduction act will endure as the

defining feat of the 21st century. >> reporter: democrats hope it will be a defining feature of the midterms the group move on is running a six-figure ad campaign in arizona, georgia and nevada. it touts the drop in gas prices. brian, we will see if democrats can keep in momentum going through november back to you. >> we have more to do. it is you and i. we will talk for 35 minutes. let's jump in. the democrats will say we have jared bernstein coming up later on he will say there are no new taxes in this bill technically that is true with d.c., technicals may not b the thing. $90 billion to the irs will more than double the number of agents agents more agents and people this has to be increased audits.

they increased audits in middle and upper class america? >> reporter: that is a point of convention republicans say that is going to have to be the case. simply by the numbers as laid out, brian the irs and treasury department has been consistent on this saying their goal is to target higher income people who are not paying the taxes they owe. that is where the real money is and that is where the tax gap is as they call it and it makes more sense to invest resources to those tackxpayers. the irs being under staffed and without the number of trained enforcers that they he need to l with the complexes cases can't bring that money home. that is why they say this money is critical. this is one reason why you are not going to say the payoff from the irs enforcement for a couple of years

it takes time to hire agents and train them to do the job. >> i think that point about the revenue projections and deficit reduction things in here both parties do this accounting gimmicks. they call it the world's best coffee at this point it is all marketing slogans. some of the stuff they point to around medicare inflation and control for medicare drugs when do these kick in? not for a couple of years. if there are inflation reduction assets to this, only time will the tell, if there are, we are talking years out, are we not? >> reporter: that's the issue with the name of the bill. inflation reduction act. this is really a timing game some of the democrats would say the benefits of the bill would happen immediately for many voters that is the affordable care act

subsidies would be extended after they expire at the end of the month. that happens immediately that is a cost to the government that would then drive up inflation because people have more money to spend. that is the short-term the long-term is the ability to negotiate drug prices doesn't kick in until 2026 12 drugs medicare can negotiate with that increases to 2029 to 20 drugs. >> 2026? >> reporter: 2026. 2026 that cost savings doesn't happen until the back end of the decade that's why you are seeing a difference with the short-term and long-term and why over the decade, analysts say this doesn't have an impact on inflation. it is awash. you would see an increase. a small one. >> again, listen, both parties

do it. legislative names. law now. the madmen of marketing. this is build back better in sort of the zombiefied form. this is something that they like and bernie sanders does not like how do you give billions to companies that are destroying the planet the last minute permitting deal, was there not, that helped expedite pipeline and fossil fuel aspects of it that i have seen a lot of angry comments about. >> reporter: that was key to getting manchin on board with this deal. the side deal around permitting reform that gave him the confidence to be able to support the deal he didn't want to invest in clean energy he wanted to increase fossil fuel production in the

short-term one provision was getting ex-pe he expedited permitting he can bring home to his constituents he made a trade for his voters to the broader economic agenda >> a huge win for joe manchin. for manchin, certainly getting a lot of what he wanted here ylan mui thank you. to corporate news now. elon musk is challenging the ceo of twitter to a public debate about fake accounts and spam in a weekend tweet, musk said agarawl, the ceo of twitter, can publicly debate the spam daily users. musk is in court about this right now.

i doubt the debate happens, but it is intriguing. berkshire reporting a $44 billion loss in the second quarter as the stock tumbled berkshire generated $9 billion in operating with insurance and railroad offset losses at geico. the company slowed purchases of the stock. still has $105 billion of cash to deploy. they are big buyers of occidental petroleum they are making money. in other corporate news, japanese firm softbank posted a $23$23 billion loss last quarte. they looked to raise cash and sold stake in uber and opendoor. think about that could you lose $23 billion in a quarter and still have your job? probably not.

we have more to do on "squawk box. roger ferguson on the next move from jay powell and hadthe fed? check out the biggest winners and losers as the market has been on a win streak tesla and viatris and solar edge technology they could do well on the bill just passed. and monster beverage and norton and penn entertainment rbat beresnd i.t. security and caonedevag go figure. we're back after this. wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi.

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saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities. welcome back to "squawk box. good monday morning. it looks like a good monday morning for the equities on a three-week win streak nasdaq up. stock futures are higher 83 points. in the meantime, investors out there, wall street economists are trying to digest what the better than expected july jobs number means for the fed rate tightening campaign. we don't know. our next guest does. roger ferguson fellow on the council of foreign relations and former ceo of tiaa

and former chairman of the fed with all of the titles, roger, that's all the time we have. thank you for joining us good morning, by the way do you think that that blowout jobs number was a one-off anomaly or the sign of a real firming in the jobs market that's going to go to what jay powell and the fed think >> i do not think it was a one-off number i think it was a sign that there is still a great deal of forward momentum in the job market i think it is a sign the fed has more work to do and perhaps, more work than they signalled thus far so, i believe this will certainly get their attention and perhaps you will see some conversation that suggests 75 basis points is very much back on the table. >> is there any possibility,

roger, of an intra-meeting rate increase >> i think an intra-meeting rate increase is unlikely because it would be desdtabilizing we have seen the fed where it signals intention before it acts they have not done that thus far. at this stage, based on this one reading, much more likely we will hear more talk of 75 basis points and more data to come they want to signal the firming campaign is far from over and, frankly, they have more work to do than they imagined a little while ago. >> if there was an intra-meeting, i know you said you didn't think there was, but if there was, does that show a panic? >> i think that is part of the story, brian i was on the fed with a couple of intra-meeting moves where things uninvolved which were

unexpected this is not a sign of pickup in the concern. this validates what they heave been saying and firms intention. i don't think they want to signal panic, but signal firming intention to keep the tightening campaign going and perhaps at a faster pace than the markets have priced in >> you know, you talk about the jobs number and i joke here on cnbc, roger, it is not the monthly payroll, but the jobs number we always say that ahead of the jobs number. i don't know if it is or not is it the most important thing for the federal reserve, roger, or would it be the pce deflate erro or pci? is it the aggregate of everything >> i think it is the aggregate of everything. you heard chairman powell talk about it normally the fed talks about the

core pce stripping out energy and stripping out food you heard chair powell talk about headline and core. both of those matter in hissing this thinking. it is headline and core inflation and inflation expectation as measured by surveys and very much a focus on labor market conditions broadly which includes the employment cost index and other measures of wages as well as labor force those are the two major areas we should keep our eye on >> what is the risk of policy mistake here, roger? >> i think the risk of a policy mistake is very high the challenge, of course, is they started relatively late and they have to move quickly. they said while there is a plausible path to a soft

landing, that path gets narrower and harder i think they recognize that they are facing challenging times ahead. they heare doing their best they are trying to achieve that soft landing the difficult there increases with almost every passing data number that suggests that the economy is still running much ahead of what they would like to see. >> we obviously are coming off this big win for the democrats and what they are calling inflation reduction act. whatever you want to call it, roger. many smart people on both sides of the aisle, excess congressional spending is the reason for inflation and could be a major contributor now more spending will lower inflation. do you buy it? >> well, let's look at the way this has been scored the last time there was a scoring on the

bill it does suggest that over the longer period of time it will reduce the budget deficit. that is a long-term storstory. obviously, a number of folks believe the government had the right to negotiate around drug costs even if it starts out at 10 and goes to 20 and takes time to build in. that will have an impact in some ways we think about inflation. it is a longer-term focus. short-term focus for fixing inflation challenges the country faces falls on monetary policies and the fed. over the long term, getting the budget in better balance is important and does look based on the scoring that this bill does go some way toward doing that. >> we are bringing down the budget deficit a tiny bit, but up $20 trillion in national debt

over the last 30 years roger, maybe debt doesn't mean anything anymore roger ferguson always a pleasure having you on. see you soon. coming up, taxi. driverless taxi. driverless ride hailing. right outside this window? speaking of cars the price of oil is down price of crude is down $88 and change natural gas at 7.84. this is "squawk box" from the sdnaaq market site from new york's beautiful not hot and humid and super clean times square we're back after this.

welcome back good monday morning. time for your executive edge if you are traveling this weekend and ran into trouble at abi airports, you are not alone. 1300 flights canceled according to flight aware. the worst issues, no surprise, reported at newark, chicago midway and chicago o'hare. i was at o'hare saturday and i assure you it was not uncrowded. southwest airlines, united airlines with the most cancellations with the weekend troubles and the circumstances when you could be entitled to refunds announced when travel is disrupted. i'll offer advice. expect delays. arrive early be nice to all the airline workers.

it is not their fault. remember that. in global news, baidu won approval for autonomous ride hailing service in two cities. the first permit achieved. not here in china maybe soon a big deal of deal news. wall street journal reporting that cvs health planning to make a bid for signify health and in-home care $5 billion market cap and explores options initial offers are due this week cvs health shares are down slightly on the news. coming up after the break. dom chu will be here with the big movers and return to in-person work is your boss demanding you go back to the office what if you don't want to go what if you moved? we assembled a panel of experts to help you have the tough

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good morning welcome back to "squawk box. good monday morning. exactly 6:30 a.m stocks rising. up three weeks in a row. nasdaq up 15% in 30 days futures are higher once again. i speak for everybody when i say you're welcome dom chi is watching the charts listening to him on "worldwide exchange" every day. good to quote see you. >> as i was filling in for you on the 5:00 a.m. show so you could be on the 6:00 to 9:00 a.m. musical chairs continue. one thing is the idea the markets are seemingly becoming more constructive despite the

fact we have seen weakness in the last couple days in the market overall if you look at the s&p 500 overall, the move we have seen in many of the biggest parts of the market off the lows of the last couple of months. what we have seen right now is a situation where we had been on a decent sized down trend and broken up in the last two to three weeks and puts out 14% below the record highs we saw going into the last 12 months here if you look at that move lower, then the move we have seen higher above it, we are now 14% below the highs and 14% the lows we are in the no-man's land. we could see some more of those earnings picture stories shape up and push things maybe to the upside or macroeconomics situations to sort out with inflation and economic growth. if you look at the drivers

behind it and where we see the biggest activity, it has been in the important sectors. we are talking consumer disc disc discretionary and technology over the last month, those sectors were the best per performing many consumer and discretionary and technology were the biggest drivers in the market because of the cap influence. the big names like tesla and amazon consumer and discretionary and tech driving the action. stocks indicative of the trade j overall. apple. amazon up 23%. the technology and other parts of the market are driving the action i guess the interesting kind of

juxtaposition or flip side, brian, is the only sector over last month in s&p 500 in negative territory is communication services hit to social media. valuations will be front and center given the fact that interest rates are in focus. you can see that down trend we see for interest rates for a while. whether or not we hold at 2.8% is interesting a down trend brian, as you keep these in context, the 10-year treasury yield at 2.8% is something folks are watching as it gets above that we could see more of a move higher. >> you are a former mutual fund manager. i feel comfortable asking this question, dom, because you know this i'm not trying to be some, you know, sunnyside down sullivan on a man. let's be clear in history, some of the best market rallies come in bear

markets, do they not >> they do >> you think the bottom is in. maybe it is. a lot of people say the bottom is in. loo look at the rally. they get their face ripped off again. bear markets have the best short-term returns >> some do the issue becomes whether or not you become a market timer. we have spoken so much over the course of years now in various parts of the market, financial advisers included about the idea if you miss out on some of the big up moves during the market volatility type regimes we're seeing like right now, you miss out on the potential returns cumulatively over a longer period the issue is whether or not when you look at some of those short-term timing mechanisms and if you are an openportunistic trader, brian, and a core position you want to buy and zealot fringes to add out

performance, that may be fine and you may succeed or you may not. over the long term, though, if you have the time horizon, 5 or 10 or 20 or 30 years from now, it may be easier for folks and mathematically better off saying invested in the marketplace because you miss the market. >> i think the stat and don't fact check me, dom the 50 best days in last 50 years are half the market returns. if you try to time it, you will probably lose out. always abi always be invested dom, see you soon. >> you got it. let's turn to the topic that is getting a lot of attention. probably at your dining room table. management says it is time to come back to the office. maybe you don't want to go

maybe you moved. what do you do how do you have the tough conversation that you may need now to have. the next guest says there are ways to ask what you want without turning your company off. joining us to talk about it is the harvard business school professor and founder and president jason greer. sidal and jason, we could do the whole show on just this. we might on just this topic. there are companies. some of whom i worked for who said to people you need to be back in the office after labor day. three days a week. for the majority of americans in big cities and on the coast, they have options. sidal, you are back at work five days a week according to the boss your life changed. you have young kids at home. how do you begin this stressful

and difficult conversation/negotiation >> huge topic today. great to see you, brian, this morning. we have to make sure that this is not seen as an adversarial act. it should be a conversation that is mutually beneficial managers should not be surprised by now what people's preferences are and needs and changes are. how do you meet halfway is the key point here if we don't treat this as a perk, we think about a conversation that looks at how do we maximize individual work and team work? how do we come into the office and in-person efforts in office and how do we advance the goals of our group and not just us as individuals through in-person presence it becomes a conversation that is beneficial. remote work is a tool. hybrid work is a tool.

in-person work is a tool the office is a tool how do we do this is the thing we need to figure out with our managers >> the problem is, jason, is that everybody's situation is different. maybe you are single or live alone and want to go back to the office maybe you have children and you don't have child care because day care is full maybe you are 55 years old and you are middle management and you want to keep your job. what is the first line how do you broach the subject with your boss >> the first thing is be honest. this is an employee driven market be honest. before you go into the conversation, have a game plan understand what your schedule looks like and be able to chart how productive you have been from home versus in the office

show them proof of your home office it comes back to the fact of being honest executives will not tell you this they don't want to lose you. especially in today's market they don't want you to pull a lebron james and take your tall e e talents somewhere else >> a lot of people have taken their talents to south beach, jason. i'll stay with you and we have a lot of ceos that watch this show i want them to tune out. cover their ears because i'll say something with hate or disagree with. how much of this has to do with just real estate it is not about productivity you can make all of the arguments you want about productivity they are sitting on $1 billion of real estate with a 20-year contract that they can't get out of there is more to this than just how productive you are at home >> i think you hit it on the

head it is about real estate and also about the old school mentality you are only productive in the office if i can see you. the reality is the game is changed. covid changed. technology has changed to the point where people have the opportunity to contribute if they are not physically there. it comes down to real estate and comes down to if i can't see you, are you really part of the office >> here is the other things, tsedal, i don't know where you are physically, but anybody around the new york area watching and listening knows this to be true. if you are in the city or out of the city, it doesn't matter if you are five miles out of the hudson or 50, it is an hour or hour and a half each way out of new york city. on the train, you drive, you park, you take the bus at port authority. that's wasted time it's also really expensive working from home has given

people de facto big-time raises and part of the life back. is it worth it if your boss pushes back saying i might be willing to sacrifice monetary benefits for this or no? >> there have been surveys taken in the last year where people have said they will forego the dollars for the quality of life they gained. they discovered a new way of working like you said that gives them flexibility in ways they have never seen before we have seen where people have said that they will change jobs and take less pay in order to have some remote work into their work arrangement the thing that you said earlier is key it has to be a meeting of halfway. you need some in-person and in-office presence to ensure

that culture and other things that people and ceos worry about in addition to real estate are moving the identity and brand of the company. the lifestyle has been big there is one more thing that is incredibly p impimportant. the last couple years, the company s waved the diversity flag in ways we hadn't seen in a long time. when you survey women, people of color, people with different abilities, they will disproportionately prefer some remote work into work arrangements it is a powerful tool to say in order for us to advance our dei, we need to make sure that we also become progressive. >> jason, humans matter. human relationships matter you don't get that over zoom >> you do.

>> here's the thing. in the 20th century, we can make the argument because technology did not exist. people are in front of their screens more than before we have connectivity >> i'm getting yelled at to wrap up tsedal and jason, let's have dinner in person. my treat we'll do this again and we have the actual relationship. we'll see. guys, great discussion big topic. thank you. >> thank you senate democrats passing their inflation reduction act as they call it in a narrow vote. 51-50. bill includes bills in tax credits to the vehicle market. we talk about the impact on the companies and investors. we will talk to jared bernstein on the legislation and where the wins are and where they could ha gteveotn more there is a lot to do 6:44 on monday morning we're back on "squawk" right

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welcome back august is the beginning of the 12-month period where electric vehicle and battery propduction ramps up now looking at the spending bill like clean energy and tax credit phil lebeau on what this means for future sales this is good news for the d industry, phil >> absolutely brian. tesla and gm get the federal tax credit back. we are starting to see the beginning of the wave of production in evs and ev batteries here in the u.s. that will really start to give momentum to what we are expecting over the next couple years. volkswagen started production in

tennessee in late july mercedes-benz eqs in alabama later this month quietly, gm and lg have the battery plants in northeast ohio it is starting battery production the batteries are the platform they will be powering things like the gmc hummer and all evs to come from gm and as you look at ev sales, we are seeing a dramatic increase. i see a few more teslas on the road how many more are we seeing overall in evs up 75% through june. lmc crunched the numbers they expect 5.4% market share of the total u.s. market of 5.4% being evs this year. let's look at stocks tesla is the king of the hill and will be for some time because they have the production that everybody else is working toward they don't have yet. raising price target for tesla

because look at the freemont factory. production rate annually is 650,000 vehicles biggest plant in the united states what does it mean for gm and ford and stellantis? that is different. adam jones out with a note over the weekend saying they are an ice runoff play. still the predominant vehicle is the combustible engine vehicle take a look at shares of rivian. q2 results released on thursday after the bell the focus is going to be how much assure ty can they give to the market about production and whether or not they hit the ca cadence and they hit 25,000 this year if they come out and say we're good and we'll make 25,000 that we had as guidance for some time i wouldn't be surprised to see the stock move higher.

>> i don't know if you saw the show last week, phil the rivian after market is going above 40 k retail. flipping the truck not the stock. phil lebeau, thank you coming up, speaking of tesla. the bots a alndfwoink to talk twitter a chlenge for the twitter ceo chlenge for the twitter ceo when "squawk box" comes back well that's not fair. you need cdw to implement vmware cross cloud services. a portfolio of multicloud solutions. it'll simplify workflows, speed innovation, [watch: the backdoor is open.] vmware makes connected multicloud possible. cdw makes it powerful.

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welcome back and check this out. elon musk is challenging twitter for a debate

sara fischer, axios reporter do you think twitter will take musk up on that? i wouldn't. >> it's going to be an interesting debate elon musk is out there saying, look, i think you misled me. of course they're arguing we didn't mislead you you waived d your right to due diligence. the judge is going to decide the winner it's not clear from my reading that elon musk has a great argument to be made here, but it's interesting he's going to go all in on that aspect of it, the misleading of the bots he's not talking about pulling out of the deal because his business is teetering, that it's a numbers problem. >> okay. here's the sensitivity around the debate they can both be right, i think, and hear me out. i love all my followers the best i found out 30% are either fake

or inactive. that's a key thing because what's the difference between a fake account or a spam bot and someone who created an account, found twitter worthless, hasn't been on it for two years and never deleted their account. those don't count but they do. >> that doesn't matter for the deal he could have questioned the information about the users before signing the agreement, but he didn't. he waived his rights to due diligence. you can argue all you want about what the exact number is the challenge here for elon musk is if he had an issue with that, he should have approached it before the deal. what he's essentially arguing is the number twitter provided to the s.e.c., i believe, in february, when he said 25% of the accounts were spam, that that number was misleading the challenge here is twitter provided elon musk a firehose of data to be able to check it himself, and he, himself, hasn't

been able to disprove it i think it's going to be a hard time to argue what you're saying, that there's fuzziness inthe user accounts when ultimately elon musk didn't have any questions about it when he signed the $44 million agreement. >> yeah, but if you're claiming x billion number of users and 30% logged in a come years ago, got two followers, went back to facebook they're not looking to ads they would be included in some of the financial numbers you would justify in paying the $44 billion, or do you think this is all a gimmick to lower the price or fully get out >> i just want to clarify something to what you said about they're all looking at ads what twitter has said is it's monetizing the daily active users of that group, less than 5% of them are spammer bots. that matters because that's the group the user ads are being

exposed to there's a question and argument to be made that twitter's massive user space, the larger percentage is bots >> this is the 5% of those who are what you -- dau, daily active users i don't know what they define active if i jog once a month, am i active >> i could get into a whole argumenter that. the platforms would love to tell you that someone viewing a video for one second counts as a video view that's how they count a daily active user, and they call them that because not only do you have to open it, but you have to have had exposure to an advertisement, and that's why that number is only being applied to the mdau. it's not being applied to entire users of twitterverse. >> well laid out to clearly understanding where this fight is going to come down. this interview counts. it was long enough that it's not

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welcome. good morning back to "squawk box. investors are weighing in on inflation data

we're going to break down everything you need to know. so what is in the inflation reduction act and will it actually factor in inflation the house will debate what its passage could mean for business. china's military announcing a new round of drills overnight in areas around taiwan one day after its largest ever military exercises had been scheduled to end. the second hour of "squawk box" begins right now ♪ good monday morning and welcome back, everybody. 7:00 here on the east coast. thanks for joining us live from the nasdaq market site in times square in person i'm brian sullivan thanks for being with us u.s. stocks are looking good

we're on a three-week win strostreak of the s&p 500 we have had a nice pop in fact, there's something like 40 s&p stocks that are up 25% or more in just 30 days wow, nice little run there dow futures up 140, nasdaq futures up about the same on a percentage basis treasuries have also been up it's interesting because the bond market is telling a different story than the stockmarket. it's not all clearing but certainly a nice run people are buying bonds and a flight to safety as yields come down it should help mortgage rates stabilize. the ten-year yield is at 2.8%. price of oil is still well above one year where it was is down. crude oil is at 88 and change. gasoline prices have come down like 55 days in a row, still a buck a gallon more than they were a year ago, but still easing some of that pain at the

pump hopefully no more $100 fill-ups. maybe it's $90, but it's not $ $100 we get crushed then we have the best month in years. we're seeing gains across the board. bitcoin, ether, xrp, ripple, whatever you want to call it all up 1%, 2%, 3%. there's the macro framework. let's get micro. on this monday, who else but dom chu. >> brian, you mentioned at the top of the hour the massive screaming legislation moving through the senate and what will it do for inflation, is it an inflation reduction act? can we see signs of the impact we're seeing some of the market moves with the climate aspects and clean energy aspects of the proposed legislation here. you can celek trick vehicle makers like tesla up almost 2%

then we talk about some of the players like wind and solar. many of the players, the bigger ones like solaredge and enphase are seeing 1.5% to 2%. even the more traditional utility companies, in fact, the biggest utility, nextera energy is up. it's the biggest producer of wind and solar energy in the world. so you kind of get a feel for some of these energy names whether they're an alternative or larger companies that have operations in some of the clean energy fields. watch those names. also there's been a bigger bid and a lot more trading interests, maybe mentioned onnen ter net forums, so-called meme stocks the original one was gamestop.

gamestop in the premarket trade is up about 1% 25% gains in bed, bath, and beyond many of the stocks over the course of the last week or week and a half or so have seen a steady climb or maybe not so steady but a surge higher. we'll keep an eye on some of the meme stocks. we're seeing some action then you mention the cryptocurrency, things to note importantly perhaps about the bitcoin trade right now is that bitcoin prices above 24,000 are now at the top end what you've seen for bitcoin prices wlchl or not we've started to see it, it's something to keep a close eye on it's an area of possible resistance we'll see if that holds, brian. >> the renewables, definitely in play today dom chu, thank you very much. let us make a shift from

energy to cybersecurity. palantir out with the quarterly numbers. frank joining us for that. good morning. >> they're up after a beat on the line and a miss. they're reporting a loss of 1% the street looking for a profit of 3 cents the guidance also a bit soft palantir is going for government work, but work outside the u.s. is really the highlight of this quarter. take a look. its u.s. revenue grew by 45% u.s. commercial revenue. that's companies outside the government's space that grew -- excuse me -- more than double. u.s. consumer account grew by 250% i spoke to the cfo who says major disruptions from supply chains to covid are really a catalyst for that growth after working with many others

he sees quotes of substantial opportunities for palantir as a technology company driving transformation across major pharmaceutical companies, biotechnology companies, insurers, providers, regulatory agencies, and research organ organizations, but government work is still about 80% of it. there are tensions with nancy pelosi visiting taiwan of course, the ukraine war is a tailwind june 2nd the ceo visited ukraine. he's been very vocal about being pro-west and refusing to work with china however, palantir issued soft guidance for the current quarter and the year he said that's due to, quote, unquote, the lumpiness of work they believe they have a strong work pipeline ahead. back to you. >> 250% on government contracts.

big jump coming up, let's talk goechltd the ceo of barrick gold and what copper may do on a all the spending on electrification. look at this they're rising once again. futures are up nicely. 7:07 on the east coast we're glad you're up "squawk" returns right after this >> announcer: "squawk box" is sponsored by bitwise, the world's leader in crypto index

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box," everybody. commodity prices are down. copper down 307, silver down 28%, gold, 14% let's talk about this. here to talk about it is barrick gold president ceo mark bristow. they reported their quarterly numbers this morning slightly better than expected top and bottom lines mark, thanks for joining us. i know everybody wants to talk about gold, but i want the talk about copper first we have a spending package which looks like it's going to pass the house. a lot of money for clean energy. the one thing you need for clean energy is a lot of copper. you need charging stations,

utility grids. if we get this done, how long will it be bullish for demand and do we have the copper? >> good morning. you i've hit the nail on the hed we don't have enough copper. it's always short term, and what we have to do is look long term. we don't have the copper to ensure we can support the vision of being a greener planet into the future. >> yeah. and where does the copper -- where's it going to come from, mark do you have the resources? do you have the known reserves of enough copper, or are you going to have to go out and find more in other words, i hate to say it, clean energy takes a lot of mining. >> exactly that's the irony of the whole thing. it needs to be responsible, of course we've got to go and look for it. again forecast you look at the

inventory as far as the portfolio of the big miners, we have very few specialist copper miners as you know, barrick committed to grow its copper portfolio, and we just announced a big project in pakistan, which is the development of one of the largest undeveloped copper and gold deposits in the world but it takes time to bring big copper mines into production, and we don't have those. on top of that, we have the challenges in south america, particularly in chile with the change in the outlook toward mining and the heavy fiscal legislation that's coming the mining way in chile. >> how much of currency movies -- the euro, i don't want to say it collapsed, but it was in

parity with the u.s. dollar. how much do these kur sin moves, outside moves impact you and the price of gold? >> well, you know, this world is a little disparate when it comes to getting along economically, globally and what we're seeing today is a devaluation of all the paper currencies, including the u.s. dollar the dollar is relatively strong, but when you look at gold and its performance and as you can see, it's gone up again this morning, you would expect gold would be softer on the back of the increased interest rates, but we haven't gotten to real interest rates yet, and so gold is the ultimate measure of currency strength because it's one currency that politicians can't print. >> what do you mean we're not at

real interest rates yet, mark? where do you see them going and the praise of gold >> when you see inflation sitting at double digits and you've got interest rates at less than half that, we've still got a ways to go before we get to real interest rates and that's twwhy the gold price are still relatively strong. you would expect some softening of the gold. >> mark burris toe, barrick gold, gold and copper. it's amazing how much mining renewable energy takes a lot, but that's the way it works. mark, thank you very much for joining us. coming up, senate democrats passing a sweeping climate spending pack and last night with vice president kamala harris passing the tie-breaking vote now the inflation reduction act as they call it has yet to pass. later on in the show, jared

bernstein will be on our show, no doubt, taking a victory lap we're glad you're up we'll be back right after this. >> announcer: squawk ceo call is sponsored by truist securities experience expertise, execution.

welcome back to "squawk box" right here on cnbc take a look at futures at this hour we're green on the screen across the board. s&p up by 18 points. take a look at the ten-year note you're looking right now at 2.79 by the way, bitcoin over $24,000 right now. let's also talk a little bit of corporate news over the weekend for those -- i don't know if you saw on twitter, elon musk challenging the ceo of twitter to a public debate about fake accounts and spam. in that weekend tweet musk said he wanted to challenge twitter and said could he use the platform to prove they had less than 5% fake or spam musk is, of course, locked in that legal battle over terminated the bid to take the

company private, brian i don't know do you think a public debate, brian, is what is needed here? it seems to me if you look at the contract language, they say it's less than 5%. it just says we think it's less than 5%, but it could be over 5%. >> yeah. and we talked earlier, how you do define a daily active user? sara fischer said it's somebody who opens up the app every day, but does that mean you're using the app, andrew? i ran an app 30% of my users are inactive or fake on their own. if you start an account, log on a couple of times, don't do much, just lurk but don't engage, do you add value to twitter? >> elon musk may very well be right insofar as there's lots of bots and spam on the system. the question is whether this definition that's in the s.e.c. filings is accurate, inaccurate,

and given the language around it, which lchl gives them cart blan torch be whatever they want it to b saying it's an estimate and the estimate could be wrong, that's, quote, unquote immaterial, and that's what the judge will have to decide. >> do you have a time frame? they move quickly at the old chancery court of delaware. >> this is all going to go down in late october in court mid- to late october the question is how quickly could the judge come back with a ruling you could see them take a week you could see them take a month, month and a half i don't think it would take much longer than that that puts you in the month of december invariably there's going to be an appeal no matter who wins that would go to the supreme court in delaware, and assuming elon musk is on the losing side

of this, the judge may decide, you know what, mr. musk, congratulations, you're the proud owner of twitter you could turn this into a federal case and appeal it to the united states over a property case. >> what would the legal question be to goat it that high? >> i think that's unlikely i think by christmas there should be an answer. >> by the way, andrew, while they're waiting, twitter's stock price is almost back to 44 bucks. in this market rally we've had, ironically the stock is sort of getting back to these levels of where musk was talking about it. it's a little bit ironic that investors may end up maybe if this continues hoping he doesn't buy it because maybe the stock goes above the asking price. >> i'm going to make it slightly

different. i think the reason twitter stock is where it needs to be today is because most shareholders believe that ultimately he's either going to be forced to buy the company or pay damages way in excess of a billion dollar that would way more than make up for the difference we'll see. >> let's give every employee a new tesla. that's the way to get out of this cleanly all right, here we go. berkshire hathaway reporting a loss for the second quarter. more importantly, berkshire did generate more than $9 billion in operating profit as ve they lost geico. they still have $105 billion in cash to deploy $105 billion, that's two twitters. >> two twitters. two twitters, brian.

a lot. two twitters and a myspace >> remember myspace? we've got a lot more coming up in just a moment, brian. still to come, the senate passing the inflacz reduction act last night we'll talk about it and what it means for the economy. who will be joining us kevin o'leary and former representative donna edwards you don't want to missand priva. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction "squawk box" rolls on after business of prudential. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq,

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welcome ba to "squawk box" right here on cnbc we've got a debate for you this morning. senate democrats narrowly passing that sweeping clie ma'am reduction act. joining us right now to discuss what's in the bill and what it means for business, former representative donna edwards is with us from maryland, and kevin o'leary and investor good morning to you. this is a seismic piece of legislation. it has huge implications for the business and the climate i want to go to kevin. i want to start not on a negative side, but i know you have problems with this bill i want you to spell out what they are so we can have a debate

about it >> well, let's start with the fact it's a very partisan bill there's no agreeing on any of these policies number two -- and i understand everybody's having fun with this -- naming it as inflation is a joke this is going to be very inflationary almost immediately because we're talking billions of dollars it's not going to help there at all. it's sort of a build back better inflation bill because it has some initiatives on the original big vision i'm not into politics. i'm into policy. i'm an investor. i'm trying to figure out what happens next should this pass? what does it mean to me as an investor what do i do with this policy? so ski myself, well, nobody's happy. so if i think about what's going to occur in the midterms, if the idea here was to get the bill driven through, to show accomplishment of the administration -- and, again, i'm bipartisan on this because i know with certainty any administration loses momentum midterm.

it's important the administration got something done is this going to solve inflation? inflation right now is around the voters is around food and energy energy has rolled over a bit that's good. of course, anything can happen till november 8th. but the rest of this bill, highly inflationary. ain't going to help. there are going to be lots of unhappy people i think what occurs and i think there's speculation on my part, but i'm going to invest on this premise this is the last the administration will get to put through. one of the reasons pelosi went to taiwan was she knows and she's been a very successful politician she's over she's not going to be speak e after this midterm election. she made her move and i applaud her for it and it's very gutsy bottom line, this is the last chance for romance on policy and then it's gridlock, and that's a good thing. >> donna edwards, what do you

say? >> i think kevin has a lot of wishful thinking there this is a big win for president biden, and i think as you describe it comes on the heels of several really big policy victories over this last month on top of that, adding jobs into the economy, which is outpacing anything that we've seen and so what the bill does is it provides consumers with something real and something tangible if they want to add a new heat pump like i do, then they'll get a tax credit for it. these credits will extend over the course of about ten years and it's not like putting all $370 billion into the economy right now. for business, it includes things like manufacturing credits to innocent faiz domeu -- incentiv

technology again, spread out over ten years. it's the laencht investment in the green economy that we've ever had, particularly when it comes to electric vehicles, the previous bill making sure that we have an infrastructure that supports that. this is a sweeping victory for the president and for democrats in congress, and it's something they'll be able to run on. >> i want to go back to something for a second what do you think the long-term implications are going to be on the corporate minimum tax? do you think there's going to be a long-term or short-term implication in terms of jobses when it comes to the buybacks -- [ indiscernible >> bottom line, does it make the united states of america more competitive with the g20 or less come pes tissue? there's no question.

less competitive corporations create jobs for people in america. 65% of jobs are created by small business look, whether you're a billion-dollar income business or not, the more you tax, the more you suck out of the system, the less jobs are created, the less competitive you are, this is a very bad policy for corporate competitiveness, and you really want to stay in the middle of the pack of the g20 in terms of corporate tax where we are right now, this slowly grinds it up. we ran around the world thinking 50% was a great idea nobody followed this we did it to ourselves it's a self-inflicted wound. bad policy. >> donna, hey, it's brian sullivan maybe it's bad policy. maybe it's not it looks like some of the medicare pricing provisions don't actually begin until the year 2026. so that's four years out so it may reduce some inflation, but not this inflation how important sit for the

democrats to just have something to sell to the american people by the way, a catchy name. >> look, i don't think the democrats wanted just anything these are significant policy improvements, and you talked about medicare spanning over the next four years. look, it took some time to implement the affordable care act and people embraced it i think these medicare provisions are particularly important for our seniors who need to have lower costs, money into their pocket, and will last for the long term. and so the idea that it's not injected into the economy or isn't done right now, we're playing the long game here, and the long game suggests that we have to lower these prescription drug costs it doesn't disincentivize investing into new drugs and manufacturing new drugs. i think it's a really strong provision. it's strong bill

those who are arguing against it and especially against corporate tax provisions are not in the mainstream at all. small businesses probably already pay that on average anyway the really big guys who get away with paying nothing, and this puts a cap on it. >> i don't think anyone's going to argue against it, donna, because it's going to pass. >> well, it passed >> if you didn't like it, too bad, because you're going to have to deal with it i think the counter argument would be you're going to cap these prices for seniors, which means then, the industry's just going to raise prices for everybody else so it's going to be extremely inflationary for private insurers because you're going to have price controls on the medicare side. i don't know if that's going to happen, but that's where some of the criticism has come. >> yeah, i don't know about. that i think what will happen is it actually could serve, you know, the purpose of decreasing those prices

look the veterans administration largest health care system in the country already negotiates prices, would add, you know, sort of pricing and negotiation for seniors. and i think that there will be a demand down the line downstream to negotiate prices your y'all it's ridiculous, drugs that people use,drugs that have bee on the market for decades and decades, increaseprices for americans, where abroad they're paying a fraction of those costs. >> hey, donna, i wanted your view on this, and kevin as well. senator sinema on interest, what happened here? she's from a state that does not have a huge private equity or real estate business she gets a lot of money. she's not been public about why she wants to keep the interest it seems to be a relatively

bipartisan issue and both president biden and trump wanted to get rid of it why why is it so -- >> in order for senator sinema to get the sweeping climate legislation traded on carried interest, and so that's going to see another day. but i don't know why she's c carrying their water she's going to have to explain that to the voters of arizona. >> the bottom line is this what is the most private equity sector in the united states in terms of wait does for business? it's the most successful on earth. why mess with it why change it? the economy's on fire. half the bills are only inflationary like giving tax credits to ev cars when you can't even buy one that heat pump you're getting

for free -- >> kevin, if you're against corporate welfare and you're against the industrial policies, why industrial policy which benefits you personally? >> you're telling me that say they get free money and i'm a taxpayer paying for it that's another incentive the incentives drive the economy. >> these incentives don't change the returns. they change the returns and how much money people like you get to pocket. >> andrew, i take risks. that's what i do >> if you want to take risks with your own money, god bless you and pay capital gains on it. if you're going to take risks with other people's monies, why should you be getting capital gains rates on that money? >> i manage that money. >> oh, my goodness, there's no legitimate argument for carried interest, the loophole

there's no legitimate argument for it and kevin can try to make that, but it's not real. and the fact that the industry has been able to keep up their lobbying successfully on this -- i mean, you're making money off of money that's not even yours. >> wait a second we created mill junes of jobs. we fix broken companies all over we look to attract investments and attract it here. when this sector gets attacked, i get offended because we do really hard work to build our economy. >> well, kevin, kevin, kevin, a week ago you said you didn't want money to go to chips because you didn't want corporate well fir for that group and you said, look how profitable they already are. this is the wealthiest industry

in the country. >> andrew, when in america did we start punishing for success why are you -- >> because it's not your cap tachlt it's not your capital. >> asking you to pay a fair share is not a punishment, kevin, no matter how you try to characterize it. >> do not assume that raising taxes reduces deficit. all it does is crush economic activity that's been proved many, many times. we'll let this thing play out, but when there's bad policy, there's bad policy. >> can i be a referee a little bit and just jump in donna, i want to ask you this. let's talk about taxes but taxes for the village. part of this bill is they're going to double fund everybody's favorite agency. i happen to love the irs and i hope i embrace them some day here's the thing, they're going to increase revenue projections or increase audits doesn't those audits are going to have to come on the upper middle class

because there's not enough rich people to make much difference to say it's not going to raise taxes is technically accurate, but isn't it a little bit disingenuous if somebody making a hundred grand suddenly starts getting audited every five years? >> i don't think that's going to happen. >> when is it going to happen? >> the irs has been neutral over the last decade. i think putting money back in, making sure people pay what they owe and they're not cheating the system is important for all of us, and nobody should get away with that. i don't think it's going to mean increased audits for the middle class, but it is going to mean is that what happens is you try to make sure you have systems in place so people follow the rules and don't require audits i think this is going to make more people follow the rules. >> there's a big issue there because 65% of the chi and

family businesses, you're now empowering the irs to chase the majority of those families who are the essence and backbone of our economy. and the assumption that they're all cheating is ridiculous most people want to pay their taxes. look, i'm not against having more than the irs, but giving them $80 billion to chase people doesn't sound like good policy to me either. >> kevin and donna, thank you for a fabulous debate. we appreciate it as always and we'll talk with you very soon. coming up, tensions in taiwan we're going live to beijing for an update. as we head to break, let's take a look at some of twinners and losers of the s&p 500. these are some of the winners, solaredge. norwegian cruise lines who knew what about on the futures?

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welcome back china announcing military drills

and a fresh round of blows in arias just around taiwan, one day after its largest ever military exercises had been scheduled to end they roll on eunice yoon joining us do we know how long these drills may end up lasting. >> no, we don't at this point. they're extending the ones around taiwan and watching fresh exercises in the waters near the korean peninsula the foreign ministry today said their incentive is to warn troublemakers. these drills around the korean peninsula are supposed to last for a month from today, but the chinese state media has been including military experts and are saying the ones around

ta taiwan they're more regular taiwan officials say the drills appear to look as though they're simulating an attack on the man island taiwan sneeze say in response to beijing, they're going to be holding their own drills on tuesday and thursday transport authorities also say that the air traffic as well as cargo shipping routes have started to resume even though we still aren't sure how long these exercises are going to last. taiwan companies continue to face trouble here on the mainland there are more and more reports of chinese customs demanding to see shipment labeling and that the ones -- the words that are approved or the labeling that's approved is taiwan china or chinese taipei and that beijing does not want to see or at least the customs officials, republic of china or taiwan only. again, brian, any suggestion

ultimately that taiwan is not part of china. >> what would happen if somebody in china used those not permitted terms? >> reporter: well, so, either china customs is holding up the shipments, so that's going to be a negative effect on disney, or in the case of, for example, mars, you're going to get punished and eventually have to apologize if that's what you have to do mars because of their snicker branding, they had an ad a couple of days ago that suggested ta taiwan was a country. mars had to apologize. there have been online calls for a boycott of snickers candy bars doesn't look to be so big at the moment, but at the same time, it's, again, a problem that a lot of international companies here face. >> online boycott of candy bars over a name. pretty amazing stuff. >> caller: i know, i know.

i was thinking, the snickers bar, that's going to be hard to boycott. >> snickers bar, china, investigate it eunice yoon, thank you. when we come back, a lot more to come we're going to talk. as we roll on, cameron dawson on newedge wealth right after the break, and council of economic advisers, member jared bernstein is going to join us from the lawn at the white house in just a little bit to talk about this bill and everything that went on bill and everything that went on over the oh, i can tell business is going through the “woof”. but seriously we need a reliable way to help keep everyone connected from wherever we go. that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws at&t 5g is fast, reliable and secure for your business.

we're back right after this.

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welcome back to "squawk box" and good monday morning. we have cameron dawson, chief executive officer of newedge health hey, cameron, the bottom of the market, you've never heard that, have you >> no, it's definitely the first time. >> it's wonderful i can ask such insightful questions let me ask is the bottom in. >> i think the likelihood of the retest of the new lows or making new lows has gone lower in the last few weeks, and that's because market internals have improved what i mean by market internals

is things like momentum and breadth. what was missing from the rallies we had earlier this year was that they were near momentum meaning they were led by a few handful of names that's different this time around they surged to levels that are consistent with good forward returns. while we could be essential to a shock or liquidity event, because we see this improvement under the surface of narth, it reduces the likelihood of a market retest. >> as i said with dom chu, i will remind our viewers, either we rocket ahead or turn back down, cameron. some of the best market runs come in the worst market cow can have bear market rallies in the '70s where it doubled,

only to fall back again. i would imagine you would advise your clients -- and i don't want to put words in your mouth don't get too giddy. be careful, stay cautious, stay vigilant. >> yeah, that's such an important point it's about the discipline of not chasing these rallies. we don't want to be buying into this strength. we want to be buying into the weakness we think the challenge for the market here is that valuation really acts as a ceiling on this market we're trading at about 18 1/2 times in the next 12 months earnings, and we're seeing how that can sustainably move much higher there are only a few reasons to pay much higher. the first is if earnings have been cut so much you're willing to pay a high multiple because you're expecting to rally in the future the other is the fed is flooding the market with liquidity. that's certainly not what they're doing with the tightening cycle, and the last

one is if you're in a bubble, the valuations go high and stay high what comes on the other side of the bubble is usually a crash. we don't think we have any of there's characteristics right now, which means valuation is a ceiling. >> and we've got to get a squawk pick i don't want to mislied our viewers. i put that in the intro. the oil and gas industry likes it you like eog. >> yeah. within a cyclical sector like oil and gas, you have to play with the best in class players, and we saw that in last week's earnings from eog where they had very strong growth in their earnings, but they department have to raise capex. so a lot of the others are having to raise capex quite materially in order to increase output, but because eog is able to do more with less, they're not having to do that, and that allowing them to fund a $1.50

dividend even though there's a lot of uncertainty about oil prices, having a name like eog, which has a very strong balance sheet, 0.14 times the debt, that really indicates we can ride out these cycles and buy into weakness because they really are the class play sneer they're always frequently mentioned they say bill thomas and the math team at eog is right up there with pioneer and some of the other ones is there any specific investing change that you would make based on the senate bill >> so we've seen big rallies in a lot of these straur related names related to green industry. i used to cover industrials back in the day, and you would always see big rallies and names at the start of the infrastructure bill and they would giving them up because the reality is the actual allocation or appropriation of those dollars

and the spending of that kind of straur money takes time, and it takes time to flow into those earnings i think it does support the long-run nature of supporting these technology, but we probably shouldn't chase these names too much because they get ahead of themselves at the passing of the bills. >> too late because everyone started bidding up the solar and wind companies a few days ago. cameron dawson of newedge, thank you. brian, we have a big hour ahead. you know who's coming up jared bernstein is going to join us from the white house lawn to talk about the inflation reduction act and everything that's transpire and what it means for business we head to a quick break bitcoin trading above 24,000 stay tuned you're watching "squawk box" on cnbc >> announcer: squawk picks is sponsored by wisdomtree t modern

alpha pioneer.

good morning the s&p and nasdaq on the longest weekly winning streak

since early spring the senate passing the inflation reduction act. if they can get it across the line, it will be a signature deal for the president we'll see if it actually curbs inflation with white house economic adviser jared bernstein joopd should the fed learn to love the jobs market it's a radical thought steve liesman will explain why there's good reasons to give it good weight. the second hour of "squawk box" begins right now ooet ♪ 6. good morning and welcome or welcome back to "squawk box" right here on cnbc i'm here along with andrew ross sorkin joe and becky are off today. hey, andrew, it's you and i together and the stock futures are up the sun is coming up and it's

all roses. >> not bad, not bad. we've got a lot to talk about today. >> yeah. there's some kind of big senate bill, right, that may or may not have gotten a little but of attention this morning i would imagine that occupy as significant portion of your eve evening. >> i heard about that. we're going to be talking about that a little bit from the white house lawn, i think, from mr. bernstein who's going to break down some of the theatrics that took place over the weekend. >> we're going to have to have a producer wrangling him because i think virtually jared may be running laps around the white house lawn a lot of green bitcoin is up nearly a thousand. that's 20 points i'm looking to my left the dow futures up 150 points. nasdaq up as well. we're seeing bonds, 2.8% we're seeing oil prices fall jared will talk more about that. the white house very eager to

get gasoline prices down to sort of crush this inflation narrative. anyway, a lot of green on the screen big hour let's go here are a lot of stories you may be talking about today blood disorder treatments have soared nearly 90% over the past two trades sessions on reports that the deal may have been close. you can see in the premarket, global blood therapeutics is up. it's only up a little bit because it popped last week. pfizer, we'll call that flat japanese conglomerate softbank, my favorite story of the day a $23 billion net loss last quarter. that is softbank's worst ever quarterly performance, driven by the global market selloff, technology stocks, just bad business, who knows. the ceo said evaluations have been, quote, in a bubble, but

then acknowledged the company had invested in more startups than it should have. andrew, i'd love your take on that i could lose lus men in a rt q & aor. >> this was always the question. it was either iemt going to spend on everything and see what happens. i think everybody thought you're going to spend too much money on the wrong thing. lchl impossible to put that much money to work. he did in ups and downs moments that's a tough model. >> some would claim and argue he would oftentimes bid against himself. you buy a property, buy more at ahere price, and you've raised the value -- some might have criticized elon musk and twitter for this as well you know what i'm talking about. $21 billion. the yen conversion, what was it,

a trillion-dollar loss. >> the other piece of this, you know, there was a period a year and a half ago where they looked like they had lost their shirts and then they had this remarkable rebound it makes the whole company a very volatile situation, and i think that's what we're seeing right now. >> let's move on shares of palantir are falling they lowered their forecast around uncertain timing. palantir, down 13% right now. >> i'm looking at that right now. let's look at where investors think things are going to do following friday's hot jobs and what the fed may or may not want to do about that mike santoli is joining us with more right now mike >> yeah, andrew, the debate is looking a little more balanced after this rally we've gotten, after the recent run of jobs data, looks like the recession

calls maybe were premature even before this little additional rally this morning. right below the june highs, 41.70ish is what everyone has been watching. all of a sudden you gain back more than a half in total losses on the downside since january. some people would say it starts to look more like a bottom this right here is exactly where the market stood before the first fed rate hike in march so there's a sense out there you've really kind of synthesized a lot of new pressures from the fed and everywhere else over this multi-month period maybe it was enough. we'll have to see. take a look at one of the examples the bears are clinging onto this would be the bear market that started in march of 2000. they had many, many strong rallies. and one of them in 2021 in particular, has a lot of people looking at it.

you essentially have 17% from -- this is the one right here -- up 17%. it got to almost halfway back of all the losses and failed again. of course, this is 9/11. you have to have a lot of things that go wrong that cuts the market in half this is the one you say if it had gotten above, that you have to give the bulls the benefit. cpi story coming up in a couple of ways this is what the market thinks about the projected five-year inflation. you see it's come off the springtime highs 2.7, that's not too bad in terms of being in the zone or what the fed wants to see this is not an accurate projection, but it shows the current betting, andrew, where the inflation might settle up after what we've seen.

>> thank you so very, very much, mike appreciate it. many market participants are seeing the jobs data on friday, pushing the fed toward perhaps a higher raise than they previously thought for that i want to get to steve liesman with more. what do you think, steve >> you know, andrew, the market reaction was pretty swift and pretty negative. more jobs meant more fed, according to most people in the market surging above 70% from 40% the terminal rate going from 340 to 367 as the market decided more job creation meant more inflation which meant more rate hikes. but hold on. it's a bit of a quandary for the fed. what if jobs are an important issue to the inflation problem what if one reason for higher prices is lack of supply of workers, and a putting workers back to work could be part of

the solution the u.s. economy in july only just now recovered the $22 million lost during the pandemic that's a great thing except look at it. that explains the tight labor market businesses throughout the economy are scrambling to find wor workers, some because of growth industries, and some just to get back to where they were before the pandemic here's the result. an economy operating with too few workers reduces the supply and gives pricing power with those businesses for their workers. the problem for the fed, how do you keep the recovery going in the job market and keep raising rates. is eat not an easy problem. >> where do you think these people are, meaning there's a lot of people out of the jobs market and you want to get them back into the market

there's also arguably an immigration issue to help solve some of this where are you understanding on how to fill the jobs >> i think immigration is uniformly, by the way, across the political spectrum, a real answer to the problem, both in trump administration and then continued by the biden administration, although, there has been some loosening by the biden administration immigration is down, and i mean legal immigration. we do not have the foreign workers we used to have to help fill those jobs. that participation rate is back to where it was. it's lower on the older side, and then this time around, in july we lost workers, younger workers. that's an issue. i don't know what the solution is right there but what i do know is we need to get people back to work to get the economy we had before. there are places, andrew, like leisure and hospitality, still down a million plus jobs from where they were.

child care workers still down. education workers and local government, still down from where we were. we've got the 22 million jobs back, but some remain well below where they were. >> steve, i don't think there's one answer for everything, right? every situation is unique. to your point, if you don't have child care, how does one spouse go to work because there's literally no -- there's a journal story about babysitters making 30 bucks, 35 bucks an hour let me ask you i've talked to businesses who know employees who left. i said wrrk did think go did they get another job >> no. they got enough in stimulus. in some cases they may have taken out ppe loans on their own and they're kind of living on the residuals of that. is there a chance the job market is going to pop unlike the last couple of years and the jobs are

going to fade away >> absolutely. it's that stimulus, brian, in part that's allowed americans to keep pace with rising inflation, that's probably why in the second quarter we began to see some decline in consumer spending the first quarter was pretty robust when it came to the consumer second quarter was weaker. it could be that stimulus. the federal impulse into gdp right now, brian, is pretty negative, at least this year compared to the stronger spending from last year. that will help i will say a lot of economists are scratching their head over the par it is paying range all of the reasons you laid out should be bringing people back into the worse force at least when it comes to the primary workers. not to 55 plus in july, maybe an anomaly, maybe not. >> go to a small town and ask the owners of some of these businesses where their employees are. they'll tell you because they

know they know these people personally, steve, acds it's not stuff you want to talk about on the air. thank you very much. >> could we be producing more oil if there were more workers >> yes, 100%. >> thank you what would happen if we produced more oil >> prices might come down. >> we could have done the whole hit in 30 seconds with you, sully, on me questioning you. >> that's it that's it. listen, it's a debate. i hope to get to midland to talk about that, where these people are. >> talk to lebeau about the airlines, the auto rs, allof these places they would have more supply, lower prices if they had more workers. >> i spent a good few hours. thank you. coming up, look at the white

house there. what the biden administration got and maybe didn't get in that big senate spending bill the inflation reduction act is now on its way to the white house. jared bernstein with the white house advisers, he has a bigger grin than even that picture. beef demand remains high chicken volume fell. beef up, chicken down. who knew cnbc is planning signified health, that's according to people who spoke with the wall street jurchlt shiefrs signified are popping. are popping. >> the markets are up, oil i so i broke up with bad banking and moved to sofi checking and savings. now i get higher interest, pay no account fees,

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stock futures were up 150. we're on a three-week win streak, andrew, heading into the fourth potential week of a win streak there's a lot of things that maybe have the wind in the sails of the democrats right now >> let's talk about that, brian, right now. it was a big win for democrats over the weekend

congress passing a more than $700 billion act, the bill now moving to the house. joining us to talk about it for the biden administration and what it could mean for inflation and business white house economist jared bernstein. he's a member of the president's council of economic advisers jared, congratulations to you. i'm sure you were working with everybody like crazy over the weekend. let's talk about two issues. i think people have lots of questions. does this do anything to bring down inflation, and, two, what does it really mean long term to the degree you think it benefits business, and i would ask you how. >> okay. pardon the lawn mower in the back she always gets started every time i talk to you folks so first of all let me just correct something. yes, no question -- probably correct is too strong a word. you're right

a big win for the democrats and the white house. much, much bigger win for the american people. that's where it hits the road and is in the spirit of your question, which i'll get to it, including inflation reduction. when you're talking lowering the cost of health care for seniors, capping it at $10,000 for someone who's dealing with a tragic illness like cancer at $2,000 a year, when you're talking about helping people significantly cutting the cost of purchasing everything from clean energy renewals to electric vehicles, standing up, the most -- the deepest investment in renewables and clean energy in terms of manufacturing and in terms of, again, individual purchases of everything from solar panels to wind to heat pumps, you're talking an measure that's going to significantly reduce costs in some areas where family budgets really pitch yes, on inflation, more so, yes,

on a big win for the american people. >> let's talk about the impact on business. there is this 50% minimum tax. there's also this issue about a 1% tax on buybacks, which was added in place of carried piece of interest. let's go to the cared piece first. can you explain who got to senator sinema and what that was about? >> i would haven't the answer to a question like. there are people who are probably tracking the negotiations closer than i i'm here to do economic analysis, and let me tell you a little bit about that. what came out t carried interest, closing the loophole, something the president has always called for, that was a $14 billion score over ten years. that s it reduced the deficit by $14 billion. what went in, the 1% excised tax on buybacks reduced the deficit

by $4 well over four years so in a sense, more real sense, deficit reduction, which, by the werek gets back to your first question the deficit reduction, much of which is front loaded in this bill is very much disflagsary. it's very much in the spirit of what you were talking about. it's another way in which the bill helps >> do you have any concerns when it comes to the issue of buybacks i know we've had debates about whether they should be taxed or shouldn't be taxed, but there is an argument to be made that you're going to see executives -- there are a couple of things. you're going to see a lot of buybacks to get ahead of i don't know if that's a good thing or bad thing maybe as the stockmarket is down companies are going to buy the stock for cheap and that's good. on the flip side executives oftentimes pay for the stock gives them skin in the game. one of the reasons they buy back

stock is to prevent dilution that may dissipate to you have any concerns about unexpected exogenous things taking place as a result of this. >> yes, i think they can go another way as well, which i'll get to, which is more retained earnings, greater investment, which would ultimately boost the value of companies let me point out this by starting with, you know, jared's first rule of tax avoidance, which is if one type of a payout is favored over another tackt tax-wise, you can bet anyone with law yer is going to go tha route. it creates a distorted incentive that has been really overly taken advantage of in recent years. you know, after the first year of the republican tax cut, buy

backs amounted to something like a trillion dollars, and we saw a negative impact on corporate investment this tax not only injects fairness into the tax code, it replaces what it replaces, and it has the potential to innocent five more internal investment, something we haven't seen enough of i think the incentives point in the right direction. also once again inflation in terms of insflationary reduction >> the deficit is now $30 trillion and it's gone up under republicans, democrats doesn't matter who it is politicians spend. that's what they do. that said, that said, how much is just going to be irs tax collection -- i understand they

want to increase some has shrunk. do you expect increased audits on the middle class? >> certainly not the middle class. remember the lines in the sand and all his flexibility. you don't get this deal without getting flexible president biden has always maintained no one under $400,000 will pay one penny more in taxes. so line in the sand there. look, in terms of closing the tax gap -- that's what you're talking about here, something like $80 billion for the irs, this raises something like $200 billion over ten years and some call that a conservative estimate remember, this is enforcing taxes owed, so this is a way to not just close tax loopholes but to stave off tax evasion in my strong view, defunding the irs has been a long-temp shadow tax cut for tax evaders and the

president will reverse that in a bill that goes to the house. >> this will be small businesse where people use s corps. >> i've heard people talk small business on the -- one second. hold on. wait a second. you don't pay -- no, no, no. that's not what i said no one under $400,000 will pay higher taxes let's be clear about that. look, you talk about small businesses the minimum corporate tax kicks in at over $1 billion in profits over the last three years. if you have two, three, five employees but your profits are a billion dollar, yeah, you will face the minimum tax of 15%. sna i'm talking about small businesses, s corps or family -- not hedge fund managers. >> okay.

so they would not -- >> who are they going to go after? >> well, first of all, good point because the s corpse typically pass through their taxes to the ving side of the code so my point was that let's talk about businesses by their profitability. nobody under 400 k, whether you're a small business or an individual, pay aspeny more in taxes. i want to talk about something else, though, brian. one of the best ways to reduce the deficit is to grow the economy more quickly deficit reduction over the past year has been $1.7 trillion. okay that's on the books. some of that comes from fiscal policy fading off the way we've been discussing. but actually reseats and percentage terms are up. strong economist yield higher tax receipts. >> a lot of sales taxes. everybody ee buying their new cars and boats, jared, you know

that. >> and by investing and standing up, a clean energy industry, manufacturing as the act does, that's going to generate more economic growth, spin off more revenues you mentioned tax credited very much in the bin, you have to net out those credited against the tax increases. >> you get an electric car and you get an electric car. andrew, we can finally get that hyundai ionic i've been looking at thank you very much, jared congratulations, by the way. >> thank you. all right. coming up, we're going to talk much more about this and the impact on the windmill there's an oil well and a windmill and there's some cows it's the perfect time to talk about investors making money in mining companies

you have to mine that copper lithium to make the ndllwimis. new york city, 8:26 in the morning. you're watching "squawk. we're back on right after this

you're washing "squawk box" on cnbc. it's a fascinating story the ceo of carlisle is stepping down immediately he's going to be stepping down

and leaving the board as well. the co-founder is going to be serving as interim ceo a big surprise across the board. carlisle has been trying for many periods to make the transition from the original founders mr. lee was supposed to be that. he's been at the job now for about two years. they're going to have to go find somebody else. i'm surprised to understand what happened. >> i texted our next kate kellie about this last night. she posted it originally that's why i saw it. who knows what's going on and maybe carlisle can tell us hi, carlyle, if you hear this, phone in 10:00 p.m. on a sunday night

this is not what carlyle or anybody should do. >> i don't think they were expecting it the question is what happened during the negotiations that made it so difficult you would have thought he was their guy. what i'm trying to figure out, is he walking because he wasn't getting paid what he thought he was supposed to get paid or are they walking from him? the stock on a relative basis has languished compared to the blackstones of this period, but there have been high points as well we're going to keep reporting this out to try to understand what's happening. >> 10:00 p.m. on a sunday night, you sort of get the radar up a little bit hopefully we'll find out. up next, esg investment took a lot of heat this year as never costs spiked now prices have come down a little bit we'll talk about that yegt. plus what the inflation reduction act does for renewable energy

stay tuned "squawk" will be back right after this

here on cnbc and good monday morning.

it is a good monday morning for the equity markets stock futures are higher across the board. dow up 153, nasdaq, 100 points nearly the best rally we've had in years we'll see. it's early crypto currencies getting a good start this week as well. a new note from jpmorgan says crypto markets may, may have found a floor. we'll see. check out some of the biggest electric veal stocks we're paying close attention to this group after the inflation reduction act. you look at the bill's focus on combatting climate change. a lot in there with fossil fuels like nuclear, coal, and even offshore drilling. we'll talk more about it assuming it's passed remember the house has to pass it remember i am a bill, capitol

hill thing, we haven't got therein quite yet. joran than bailey and former north dakota senator heidi heitkamp she's a founding member of the one country project and cnbc contributor as well. it's funny, senator heitkamp bernie sanders blasting the bill because it gave money to fossil fuels. greenpeace absolutely hates the bill and then you've got the fossil fuel industry which says, that's pretty good. maybe that's a sign of a win if everybody hates it, maybe that's a good thing. >> well, listen. the one thing about this bill -- and you knew anything coming from senator manchin was going to address emissions, and it was going to be, as i always say, fuel agnostic. so what can the energy industry in the all of the above world do to reduce emissions? and there is so much in here for

states like mine and joe's as we look at these transitions. as we look at bringing new technologies on. using a lot of old tools that these groups have supported in the past like production tax credits, investment tax credits, 45 q, the whole range will, in fact, grow the technologies that are going to be essential for this transition some of this is a big win for the environmental, i think a big win for members of congress who have fought mightily to reduce emissions they understand you cannot turn this economy on a dime they're not living in lala lachbld they realize that we have to do this. >> yeah. i mean it's a word thing to say, jon jonathan we have never been burned more coal in the history of the world than this year renewables are great, but it's going to take a lot of mining to

get copper out of the ground how do you score this? >> one of the hings is it puts lithium in production and so i think it's actually trying to address some of those fundamental supply chain challenges but much more importantly, it addresses the downside the $7,000 tax credit for those on little or lower incomes is going to be transformational you think about what chevy is offering next with their volt. $27,000 for a brand-new electric vehicle, it's beginning to make them affordable. we've never seen things that low. that's going to turbocharge investment into those renewables that will be able then to sort

out the challenges that you're referring to i think this is going to be incredibly effective in being able to unlock the potential of renewables to come through and ramp up production >> i want to pivot the conversation just for a second maybe it's a hobby horse at this point, but it's a topic i can't get over do you have any sense of senator sinema on this bill over the weekend on carried interest? i know we talked about carried interest on this program for a very, very long time do you understand why she's made this decision, and politically will this work for her >> i really don't understand this has been something that has been universally targeted as one of the largest tax loopholes in the industry of forever, benefiting people who really already have won in this economy. i can't speak for her, but i think there's going to be a lot

of head shaking, a lot of people who are going to be looking at her political contributions. you know, i just don't get it. i don't. i can't defend it when i don't understand it. it seems like the low hanging fruit, andrew. this seems like a win-win if you're 'progressive or moderate democrat like me [ no audio ] >> all right senator heitkamp, i think you might have froze up. we'll find out either way. jonathan, go back to you i mean, how do we invest around it bottom line is this. whether you like it or not, it's going to happen. the president will sign it here deal with it how do you make money on it? >> i think one of the important things is obviously the names in the ev space begins to fall, whether it's the sin novas and everybody else

this is a broader based opportunity. so in the energy sector nrk the oil and gas space, companies like occidental who have been investing in carbon capture through direct air capture, they're going to benefit from the $180,000 incentives that have been built in there darryn woods who called a couple of days ago, welcoming this and saying it's a step in the right direction because it will help them with biofuels, help them with hydrogen, as well as obviously ccf. this isn't just about looking at the companies who are directly in the renewable space there is a directive here for those with oil and gas and those looking to diversify their models the focus on trying to reduce fugitive methane predictions,

pipeline, storage, transportation, that will really benefit those companies that have invested like the pioneers of this world in reducing methane emissions and being able to put in place high quality management of that it will help the climate dramatically giving that methane is ta times more damaging than carbon dioxide you've got to head some of these issues and finally one of the things that's in here is providing production tax credited for the nuclear. we don't expect to see a whole lot of new ether coming to the market, but this will extend existing assets and allow assets that's something to look at on the utility side there's a broad opportunity here and i think that's why you've seen a welcome from a range of companies in the energies space as a result. >> we're going to leave it

there, jonathan. senator heidi heitkamp as well this debate will continue. the house is likely to vote on the bill friday and the president to sign it on the weekend. thank you. we'll get jim's take on the market a nice little rally. it looks like the rally could continue up to a buck 57 we have some companies reporting quarterly result this morni gmo. pell l alti nodlis that and tyson foods and others

we're back right after this.

welcome back to "squawk box" right here on cnbc we're going to talk meme stocks right now. with very a lot of names very popular with the retail crowd. bed bath and beyond, their shares are soaring take a look at this. 44%, bby's prequote has been shorted. lot's get down to the new york city where our friend jim cramer joins us right now what do you think about it, what's happening here? >> bed bath, they actually need a credit line. i didn't like that they bought so much stock back if i were bed bath, i would be

offering stock amc, i think that was adam coming on the show and saying, listen, we're doing this eighth preferred, and it's absolutely not diluted, so that really got that stock going and once you get those stocks going, people are looking for the mother of all shorts, and those are kind of whoever they can -- some of these new chinese stocks coming out of hong kong i mean there are a couple of them worth so much in the market that are worth almost nothing. so we're at a -- these are hilarious. there's absolutely no authority out there. it's just the wild west. it's really incredible i've got to tell you, andrew, there's no authority, no regulatory authority they are just doing whatever they want. they're having their way with the market, and i love it because they do not hate me anymore. they just said good things about my garden. >> and why do you love this? >> because they haven't attacked me adam blessed me. no one attacked me

people talked my zucchinis and nothing el i thought it was fabulous. >> let me ask you a different question. >> sure. >> carlyle group, i don't know if you saw this news it happened last night kewsong lee is leaving >> it's raising a lot of eyebrows carlyle group runs tens of billions of dollars, and there's no explanation they should. have to. just like henry ford never had to explain i hope my colleague who's coming back from vacation will be able to have more answers. he's not going to zoom from another country. he's going to be right here. it's all over the place. i love it. >> okay. "squawk" coming right back after "squawk" coming right back after thisuardtools and advice

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all right, a little more than half and hour to the

opening bell on wall street. what stocks are on the move right now? >> we are still in the midst of this kind of earnings seasons. the shares are off about 4% of premarket trade. decent toward the opening bell. this is a big meat processor of chicken and pork and those kinds of things. it was helped by better beef demand but shippey volumes fel . they were able to raise prices somewhat although tyson foods getting the downside movement on earnings. then the inflation reduction act passed by the senate, we will see how it progresses in the house of representatives. with the solar and electric

vehicle and energy names. solar is up 60% doing no small part to j.p. morgan and guggenheim who upgraded the stock. they say they will benefit a little more in terms of the inflation reduction act if it comes to fruition and we will watch those. and bit point prices hovering around 24,000 and up 4% . the reason why it is important is if you look at the resistance here around the 24,000 mark. 24,000 to 25 thousand. they are waiting to see if it can break meaningfully above these levels right now. so, some traders are talking more about a bottoming process in place. but there are things on the move, back to you guys. >> thank you very much, we look

at inflation data with the consumer price index it out later this month. it has been a nice little mutt run. >> it has been a nice run and i'm not going to deny how good it has felt. i just don't know whether to trust. >> all the talk at that point was hey, what's the average bear market at 35 or 37 and it is clawing back on the bear market. friday pope's numbers were pretty good but what it said was we do have growth

>> the key thing is earnings will dry drive the earnings going forward. where do we find liquidity? >> the market levels with better growth and take and american express growing double digits in the financial services sector. then industrial sector with honeywell with global production and they've made all their earnings in a tie of high time of high inflation and those are the companies to watch for. and you have healthcare companies like bristol-myers.

you don't have to speculate with cash flow down in the future. you can get really good companies today and barbell your portfolio. it doesn't have to be focused on one side and you can be diverse. >> what about a consumer slowdown with consumer debt soaring? >> you are seeing that already.

>> companies tend to pay out stock like benefits. >> in the u.s. when companies give out dividends and increase them, it's really bad when they cut the dividends. if i am a treasurer or cfo and cut dividends, you've got to maintain it. i think it's going to be interesting with cash balances. that makes you a target of other companies and other people. companies say, it's better for me to go and buy shares. >> there are companies out there that will -- >> that puts it out maybe.

>> i think it's going to take a little longer with the imbalances with the supply chain. >> my friend, thank you very much. we leave you with markets that are higher. i will be back here at 5:30 right there for the nasdaq.