s&p down a percent breaking overnight china cutting key lending rates and meme stock mania amc down sharply as ceo adam aaron tweets about ape shares it is monday, august 22nd. "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm andrew ross sorkin along with joe kernen. becky is off today nice to see you, joe it's been a while. >> this is how you welcome me back the 3% or 2% loss in the nasdaq? it was working for a while, andrew, for four weeks four weeks we were thinking maybe things were improving.

now we're back to katie stockton it would be nice to check in with her today >> this is still early for the katie stockton call. she was thinking the september or fall episode. >> into fall >> it's almost there it's dark outside. i don't know if you noticed. >> i did it was rainy august the 22nd. that's -- that does not violate what her scenario was. that is right about where we were talking that was a bounce in the s&p we'll have el-erian on we were at 30 -- where were we right around 4,000 we wanted -- i said we go to 4,400. he said 3,600 on the s&p he got the taco bet. not the tacos you sent me.

the gluten free ones crypto ryan cohen what happened there? can you tell me what happened? our favorite place bed, bath & beyond >> i didn't see you all last week what a crazy situation what happened was he -- >> four? how low? >> yes the craziest part he filed these options. he publicly disclosed them a while ago. a long time ago. then reddit came back and saw the new filing and thought they were new stock shoots up like to the moon he decides, guess what, this is crazy. i should get out immediately by the way, possible he even understood that could happen

because of the way the filings were going to be i don't know i'm not suggesting any manipulation intent. the stock is through the roof. i should sell. he's not diamond hands he's paper hands the stock falls and craters and everybody online who loves ryan cohen is screaming bloody murder >> right we actually have shares called ape now. is that a wink and a nod that is something to happen. meme stocks are back are they back in a good way or bad way? i can't determine. >> i thought everybody got so burned the first time, i didn't know how it could happen so quickly. memories are so short. >> oil is 88 we have a lot of good people on today. helima is on to talk about that. the ten-year the guys are hawkish again

inflation is rolling over. these guys are all talking tough again. 75 basis points. we got to do it. that cast appall >> all economists say it was 75. the street diffiverged >> andrew, i was watching a little bit i had one eye or half an eye for the past two weeks no gambling. no draft kings still states with no draft kings. come into the future don't you need he-- i had no drf kings. i was watching the markets i was trying to relax. did you relax yet? >> i'm going to be relaxing in about a week talk about gambling. the other thing happening while you were resting dan loeb looking at disney

he wants espn to spun out to go do gambling. his view is so much money is left on the table because they are not in the game bbling business talking about draft kings and the like. >> work with me today. i'm going to pretend i saw everything if it looks like i'm sort of not really that in tune with it, will you fill in the blanks for me >> i'll try sdp i've got time. tell the audience of the headlines. one of them is china trimming lending rates. news coming after a week the pboc cut two key rates the country's central bank is trying to jump start credit. credit demand and the economy which has been hurt by the covid

lockdowns. property debt problems that is something a lot of folks will be watching this morning. joe. let's get to europe. stocks are falling this morning on rate hike fears the euro falling below parity. below $1 nat gas prices falling on the news key russian pipeline is shutting down crazy news from russia julianna tatelbaum is joining us now from london. good morning, julianna >> joe, good morning european investors are very jittery this morning concerns brewing around the economic growth outlook in europe equities are trading lower across the board out sized losses for the xetra dax down 1.7%. losses are widespread. we got hawkish comments from the german central bank chief over the weekend. the european central bank needs to hike rates to bring down inflation. the problem, the reason the

investors are concerned, is we are looking at interest rate hikes while natural gas prices are spiking. up further 10% this morning. this is the chart from the last year up 300% over the year. the new concern, fresh concern from the energy outlook, has come after friday with gaz prom announcing that the nord stream is closed for maintenance for three days at the end of the month. this follows a ten-day lot of fe winter months for europe with the gas prices this high and the uncertain outlook where the ply w supply will come from. andrew >> thank you for that report corporate news elon musk saying tesla is hiking the price of the driver system by 25% next month. this is the full self driving option fsd.

currently costs $12,000. subscription at $1,999 a month the price will go up to $15,000 on september 5th you can watch the fsd videos as people show off the features which are still not totally ready for primetime, joe people have to put their hands on the wheel every now and then. caution those with the tesla keep your hands on the wheel >> i had the two-day -- actually four days total driving down a long way almost to florida from here. i got -- >> wishing you had the auto pilot? >> close the navigators control is very, very good. it doesn't do the steering all i have to do is steer. strange things can happen if

someone cuts you off you stop quickly it is jarring. very good. can i tell you something that you don't see on the highway, andrew >> what's that >> teslas. >> that's interesting for a drive of that length, you mean >> you do not see teslas the minute i got back every other car was a tesla. 50% where i live i was tesla free for, you know, i don't know how many miles. a lot. every one of them i felt it is tough. no teslas on the way it must be a pain, i think a pain, right? if you are going 700 miles in a day. >> if you are going over 300 miles. every 300 miles, you have to find a tesla charger you probably have to hang out there -- it is not a 5, 10, 20

minutes at the gas station it is longer that's the conundrum >> demographically, it is different headed down. there are not as many teslas on east coast anyway. on the highways, zero. other corporate news, all of the cars that i saw were using hydro carbons. berkshire has approval to buy up to 50% of occidental westbound own warren buffett owns 22% right now. it does give it the ability to acquire a larger stake andrew, going through richmond or certain places, there are a couple of teslas around. i'm ex-inaggeratexaggerating when you get in the middle of north carolina and south carolina, there weren't any. i'm not kidding.

>> 95 all the way down >> straight shot on 959. a couple of times you go around cities we stay in a place that is outside richmond on 295. for the most part, i-95. it's fun like chevy chase i got the armored wagon. just like the original on the way to wallyworld. cousin eddie follows me on twitter. that's my most famous. the one i'm most proud of. ra randy quaid. >> you should be >> your's reads like a who's who. you must dm the kings of hollywood on your twitter? who is your most famous person come on. >> most famous person.

i don't know the most famous person i got to look. you can look to see who has the most followers. >> i don't know how to do that i want to do that. >> i'll tell you in commercial break. for the viewers out there, you go to -- i think you have to look at your profile and analytics. if you hit that, you can look at a list somewhere in there. i don't know >> i'd like to see your list >> we'll get the list up. bigger news. amazon among the bidders for signify health bids are due around labor day. we're two weeks away other suitors are said to be cvs and united health group. this could be a big move for amazon in the health space they are buying a lot of companies in the health care space.

lots of questions how regulators feel about that or customers interesting stuff with amazon. >> on the way to the s&p one. one company. amazon coming up, what investors want to hear from former fed chairman -- fed chairman jay powell at jackson hole this week. before we head to break, check out the biggest s&p w winners and losers stay tuned you are watching "squawk box" on cnbc >> announcer: this cnbc program is sponsored by ibm. ibm. let's create your data. and start crunching a year's worth of transactions against thousands of compliance controls with the help of ai. now you're making smarter decisions faster.

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welcome back to "squawk box. look at futures. we are in the red. dow off 274 points if we opened right now. s&p off 45 points. nasdaq down about 171 points i want to show you this. docusign is leading the biggest nasdaq losers. that stock off 4.5% right now. looking okta off and datadog off. cryptocurrency as well we have a number of them moved

lower. bitcoin at 2$21,189. ethereum is at $1,567. we're also looking at so-called meme stocks. amc shares dropping. now down to $11.85 off 35% right now. amc preferred launched on the stock exchange today ape shares were announced as a class a common stock adam aron tweeting with the ape trading the first time tomorrow morning and the value of the a investment is the shares and new ape units. what do you think of this, joe >> i don't know. do you have to factor in gold

mining and popcorn give away a lot to throw in and you don't know what it is worth. i would not venture a guess. it is not about seeing movies or not, is it people are still doing that. >> you can make the argument that actually adam aron is doing everything he should be doing as ceo if he is trying to keep this company afloat for as long as humanly possible the question is is he doing it on the back of the shareholders or is he doing it himself? this may be the answer he needs to pay down debt. he has to. this is one way to do it does it dilute you absolutely is there another option? it doesn't seem like it at the moment >> meme stocks we have thrown our hands up the entire way have we gotten any of it in terms of the big moves up and down

share inscrutible. it's impossible. is it the could coalescence? you can't run any financial analysis >> it is hard to run a dcf model on any of the companies in a meaningful way at this prices. >> even an option thing. let's talk overall markets with a couple of people we have on a lot sylvia jablonski and patrick palfrey. senior equity strategist at credit suisse. i guess, sylvia and patrick. we are back questioning whether there will be new lows we had four weeks of positive action and we had good inflation

news we still have the fed vigilant on whether this is a long-term problem we have to deal with it feels like deja vu all over again. are we headed to new lows, sylvia >> good morning. thanks for having me today it is interesting. i think after a terrible first half, everybody got excited with july we saw equities rebound to the tune of 12%. inflation read came down gas prices come down the consumer started to spend on services and everything looked pretty good for a while there. i'm not surprised to see a pull back i don't think we're at the point where we were going to be straight up and the market has touch turned its course. powell came out with the market comments which were dovish fed bullard came out and said hold on a second stop the rally we will tighten it up.

we are nowhere near where we need to be i think that is the uncertainty in the monetary policy and unwinding of the balance sheet is back in the front for the minds of investors the positive read on consumer sentiment will pull right back and we will see volatility there. what do i expect range bound volatility in the near term. when i see days like this where equities set to open 2% down or 3% down and i'm looking and thinking about investing for the long term, these are the opportunities to scoop up stocks in the short-term, this is noise. you could look for the things as opportunities to dip into the market >> patrick, you are co- head of quantitative research. what is that telling you i did see positive internals in the journal highlighting some of it there

there has been a broadening of stocks that made advances and stocks trading above the 50-day moving average underlining strength that people think there are legs to the rally we saw do you think we're back or are all bets off and headed back lower for another couple weeks >> i think it is important to look where we started the year we started the year with 21.5 multiple with the fed pivoting hawkishly at the beginning of the year and interest rates rising and volatility picking up, that removed the excess in valuation where we move somewhere under 16 why is that important? because we really reset the base on valuations. i think what that does is it really puts ina floor on how much lower we can go the question is what happens with core profitability. then we look out and see profits remaining in tact.

we will see growth for the back half of the year 2q came in better for investors. the question heis for the markes to move higher unless recession risk hits worse. >> as we usually do, we have two things to worry about. things that are too slow, patrick, and things that are too fast i guess we need a goldilocks or the porridge has to be just right. you are saying recession risk could be bad as well what do investors want what is the best outcome >> i think if you asking for a best outcome, it is for inflation to begin to slide back toward a level -- i don't think we will see 2.5 in the near term, but low single digits. i think why that is important is

it allows the feds to incrementally ease off the hiking path, but still remain engaged. i think it comes down to threading a needle it is tough. if you look back his ttoricalhi, fed hike cycles during periods of high inflation, there are fits and starts with fed interest rates i think what it comes down to is the ability to navigate the cycle and really lead inflation to incrementally come and glide back down to the level that is sustainable against the back drop if we get that, stock will continue to move higher. >> sylvia, i don't want to put words in your mouth and i'll l give you the last word patrick is describing a soft landing. maybe you get one, maybe you don't. the names you like even when there is weakness with the notion that a year from now you got in at good prices. >> absolutely. a long term investor, i am in

line with patrick's view we have the potential for a soft landing. i like the tech generals they operating margins say they are absorbing inflation. if you look at the cost of capital to bring down costs, they need to invest in technology to bring down the cost of energy to bring down the cost of running business the labor issue and things like that when i see the name, apple, microsoft, amazon, google. i love the semiconductors as they keep getting better those are dollar cost average because they are key to the future >> sylvia and patrick, thank you both >> thank you >> shocker, andrew i'm dealing. a shocker. overload coming back. >> it is something >> latte i got a double >> you got a double? cheers >> trying. >> double latte. >> i'm trying.

maybe i need something stronger. i don't know coming up on the other side of the break this might be stronger a strong story why some apple workers are less than excited about tim cook's return to the office plan. they want to make coffee themselves at home first as we head to break, check out oil prices this morning. wti crude is $90.64 a barrel warren buffett seems to like it in terms of his take on objecidtccenl petroleum. we'll talk about that and more on "squawk box" on cnbc. and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

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against the company's return to office call. set to take effect next month. the group called apple together petitioned and arguing that they he have been able to perform exceptional work in the last two plus years tim cook saying returning to the office by september 5th three days a week helped preserve the collaboration essential to the culture. i imagine we will see lots of versions of this post labor day. we will watch to see if folks come back to the office or not. coming up on the other side of the break, futures pointing to a rough open at the start on wall street. l lkbo t drivers next right after this. >> announcer: executive edge is sponsored by at&t business at&t 5g is fast, reliable and secure

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good morning welcome back to "squawk box" live from the nasdaq market site in times square. red across the board this

morning. dow indicated down 300 nasdaq close to 190. s&p close to giving back 47 and change cryptocurrency is also pulling back amid the market stories. china cutting the key interest rates. eunice yoon is joining us live from beijing good morning, eunice >> reporter: good morning, joe the key lending rate cut after two interest rates cut in a surprise move a lot of week. it cut the one-year loan rate by 5 basis points to 3.65%. the five-year was cut to 3.4%. the one year is the reference to loans in china and the five year is the reference to mortgage the cut was anticipated, but the amounts is a window into what

the policymakers were thinking it was cut ten basis points last week the one-year for new loans was cut less than expected and the five-year cut more than expected it is suggesting that the policymakers are hoping to keep the borrowing costs steady, but want to target the struggling property sector. it is still unclear, joe, whether or not this move is really going to have much of an impact because people haven't been in the buying mood for property or for really anything else for that matter >> yeah. so many different cross currents coming from different parts of the world, eunice. i'm still getting over the taiwan issue i guess what really matters is the type of economic growth and headwinds that president xi is seeing that factors into some of the

other things that i was referencing. what is the bottom line, do you think, eunice, in your view? >> reporter: i mean, it is going to depend on different factors as you said, president xi is facing a bunch of headwinds. not only from the struggling property sector, which is supposed to be a traditional driver in the economy. a lot of people are seeing unfinished homes and getting angry about it you have what we talked about in the past couple days is the drought that is going on that is hurting a lot of factories which are rationing power. you mentioned taiwan you know, a couple of days ago, i thought that story would go away it turns out the indiana governor came to taiwan or went to taiwan. for a meeting with president wen. they discussed democracy chips

meaning semi conductors. that is another point of contention with the u.s. and china. it is really difficult to say where it will head in terms of u.s. and china relations because china, each time it sees a visitor, even though it has nothing to do with nancy pelosi's visit, beijing gets angry. >> covid is front and center as well you are wearing a mask this morning. it is a lot. >> reporter: i actually can't imagine -- it is so funny. i hear you talk about not wearing masks. i just can't imagine what it's like i can't -- i've been here for so long i haven't left the country i'm so used to wearing a mask. i don't know what it is like to not have a mask on >> it's nice in case you are wondering. it is good >> reporter: bit of freedom?

>> it's nice if you are wondering >> reporter: a bit of freedom. >> thanks, eunice. see you later. coming up on the other side of the break helima croft on the looming energy crisis and why the rest of the world needs to take note. we will hear from muhamad el-erian ahead of the fed and jackson hole stay tuned are you are watching "squawk box" here on cnbc

welcome back to "squawk box. electricity prices soaring in europe because of the war in ukraine and dekcrease being o outlook of supplies. joining us is the biggest question is if it will happen in the united states. we have helima croft global head of strategy and cnbc contributor. we have rebecca for cibc private wealth helima, is this coming to america, as they say >> europe is ground zero for the energy crisis. obviously, they are the main importers of russian gas russians made it clear they will continue to cut off gas supplies into europe. we will have a three-day outage

on nord stream 1 on august 29th. we can expect the russians to keep the pain up to force the europeans to change calculations of sanctions and supporting ukraine. yes, gas prices in the united states will also rise, but europe is going to be really where the pain is going to exist with the war >> okay. rebecca, in terms of expectation, if you look at wti and brent plays. price call it two months from now. where do you think we are? >> looking at wti and saying two months we are closer to 105. and brent at 110 i think that has to do with the fact we have several catalysts coming helima mentioned russia will continue to apply pressure to europe pressure european gas supply will provide a tailwind to crude

oil as industries switch from gas to crude we have the spr rolling off in november that is the buffer to supplies in the united states that will have a massive impact. we have increased sanctions coming from european nations on crude oil. all three of those things contribute to crude moving higher the market right now is much more focused with demand and what is happening in china those are relevant, however, the supply side of the equation of the next couple months will overwhelm that and china is dwindling or slower recover will fall to the backseat >> before i go back to helima, rebecca, if we are at 105 in the u.s. come october, where do you think prices at the pump go? >> that's a good question. i think prices at the pump at 105 are closer to $4.30 to $4.50. that is painful for the u.s.

consumer for sure. i don't think it creates demand destruction and changes behaviors. it is at the threshold i think we will get back at the $4.35 or $4.50 on the national average. that will last throughout the course of winter. >> it creates a very interesting political dynamic. i asked about october because it is before november helima -- and the elections. midterms in november helima, are you on board with 105 in october >> i think the key thing to watch is how the spr winds down and also i keep harping on december 5th like a broken record that's when the european sanctions are set to take effect russian oil production is hanging in there despite the initial buyer strikes. people not wanting to touch russian exports. russia is only 3% down pre-war

levels india, turkey, china all taking russian oil. what happens on december 5th the shipping sanctions kick in and it is difficult to move the barrels to asia. the question is is europe in such a difficult economic situation if they don't go forward with the sanctions that is the key to determine where prices are europe's resolve to see this through in terms of russia sanctions. >> helima and rebecca, thank you for helping us out >> thank you joe. >> thank you coming up, we will talk crypto down again this morning. reminder, get the best of "squawk box. follow squawk pod on your favorite podcastpp a and listen anytime. we'll be right back.

welcome back to "squawk box. futures continue to be sharply lower. extending some of the losses we saw from late last week. dow down 273 points now. nasdaq and treasury yields creeping back towards 3% 2.98 take a quick look at currencies this morning going to go across the board here then look at some of the equity markets in europe as well. the euro is actually below parity for a while much just over 1 right now you can see red across the board, importing some of that

weakness crypto is lower this morning, especially, as you can see, ether versus bitcoin joining us is melton demears melton, looking at some of the analysis crypto fell sharply late last week no real fundamentals to explain the drop that's kind of a derisk trade when we see the equity markets fall it's highly correlated where are we in terms of let's start with bitcoin we saw 17,000 for a while. rebounded back to above 25,000 hadn't been there in a while now 21 and a change. do you think it's looking for a bottom to make another advance or maybe head back down below 20,000 >> i think with bitcoin we've seen a lot of buying on dips there is sideline capital that's looking to accumulate bitcoin. as you know, we love talking about dollar cost averaging when it comes to bitcoin.

the big question is, flows have been fairly flat throughout the month of august. people are taking this thing called vacation. although it trades 24/7, 365, we see challenges from friday evening through monday morning because the markets are not as active it will be interesting to see what happens today on the monday open no immediate outside catalysts for bitcoin. very tight to macro as we've seen to the high correlation to tech equities. >> ether was down in 8 and change, i'm talking hundreds it had 100% return and there's a lot of, i don't know what you'd call -- whether it's excitement or speculation about -- what's it called, a surge >> the merge. >> no, wait a minute, it's not the purge or the surge, it's the merge. >> the merge >> can you explain how the

blockchain would be different and is it really more energy efficient? don't get too far in the weeds, but what are people excited about? obviously they are excited, but now it's back to 1500 so they weren't that excited >> yeah. so the muerge is a technical upgrade to ethereum. it's a process ethereum has been going through for the past three years. bitcoin and others go through upgrades as we use them. we realize we need to make some slight changes this upgrade to ethereum is going to fundamentally change the supply and demand, there is a lot of ee buelens, a fun word. it's an outside catalyst and they are looking at the merge for isolation. if you are trading or managing a portfolio, you don't look at a single asset you have to look at it in a

broader context of asset, breaks, level of interest in the portfolio. while internally there's a lot of enthusiasm within the crypto community and ethereum community around the merge that will dramatically reduce supply and demand, one of the realities is on the macro side, people are worried about rates. people are worried about macro there is a lot of new capital coming in to buy ethereum on the changed fundamentals and technicals there is some risk that will need to play out in the market in my view, the merge has been a buy the rumor sell the news situation. the way people are playing it on the traditional side or through the trading side is through options rather than direct exposure >> the go from proof of work to proof of stake can you -- i don't know. you might just touch on that it will be more energy efficient be so that -- obviously that could be responsible for some of the

excitement and the ee bullens you're seeing. there's a lot of talk about esg investing. a lot of talk around esg investing and that can be some of the metrics people are using to construct the esg portfolios. it's one of the primary consideration of the blockchain on bitcoin as well as ethereum we use a semiconductor, a chip, you use electricity to run it, so this is an intensive process, but what that provides you for work is not necessarily the e in the same, but the s and g. the decentralization the ability for anyone to joan the network is important moving to proof of state makes ethereum the endogenous ethereum it changes how consensus or agreement on how what happens

oc occurs it migrates it from people who are using electricity to run computers to people who already own ethereum and are using it to validate the state of the network. the other by kwig is with recent weak flow happening on a sanction side, there are questions whether or not u.s. exchanges will even be able to support this new proof of state mechanism. so there are some interesting nuances that emerge, but certainly esg is one motivating narrative. we'll see if that narrative plays out in the market. >> why settle for proof of work when you can get proof of stake? it just seems -- a no brainer. >> proof of work has tangible benefits the laws of physics apply. anchoring blockchain is a valuable characteristic. there are a lot of different ways people want to use blockchain let's try. >> what do you like, andrew, the

proof of work or proof of stake? do you have a presence >> i like the proof of stake from an energy >> there you go, you're the people. >> but at the same time i like the proof of work because it would seem like that would be the more trustworthy version of it, i think. hard to know >> meltem, thairng. >> thank you >> we'll see you in just a couple of minutes. when we come back, big stock movers and the stories investors need to know take a look at futures they are trading lower we'll talk technicals with katie stockton you're watching "squawk box" right here on cnbc

good morning futures starting the week in the red as the market gears up for the jackson hole fed symposium and the meme stocks are getting blasted. bed, bath & beyond down and amc taking a hit as the apes get ready for a special dividend. what would a monday be

without weekend tweets from musk as the second hour of "squawk box" begins right now. good morning and welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square i'm joe kernen along with andrew ross sorkin. becky is off today it's dog days? what did we decide it might be the last week -- it's not typically august 1st is not a dog day of august -- of the summer but i think -- >> why dog days? we like dogs how about cats >> we do, we like dogs i don't know, dog can be kind of used in a -- as a negative connotation, you know, like a real dog. >> right >> i think we're getting close if we're not, we're close enough

in the market, kind of acting like it might be in one of those, i don't know, just in a bad mood 260 points this morning of downward pressure on the dow nasdaq, 175. no real negative news. maybe fed angst as usual with the 10-year back almost to 3%. really, 2% inflation we're going to get back there? we have a ways to go we had a pretty good number while i was out, andrew, i know that it didn't get worse. it moderated a little, but 2% is a long way off and it would seem like it would require maybe more tightening than some people are factoring in at this point i think that's part of the problem. 297 now. let's check out crude and natural gas also crude is below 90. actually, not. back up. earlier this morning it was down around 88. turned around. it's up a little bit this

morning. is that good or bad? when it's up, maybe the economy is not slowing maybe we're not worrying about recession. it can be taken either way 90 isn't the end of the world. it's not 150 but it's not 60 either. >> right let's get straight over to dom chu. we have the premarket movers we have a bunch of them, dom >> we do, andrew a lot of them is done by headlines, possible deals taking place or corporate structures changing a little bit and that sort of thing. let's take a look, first of all, at what's happening with the overall picture of meme stocks we heard at the end of last week that ryan cohen ventures, rc ventures, has gotten out of the bed, bath & beyond those shares are down another 8% this morning but we got fresh headlines from amc entertainment on that side of things two main factors affecting that trade. first of all, a wall street

journal report saying rifle cineworld which operates regal in the u.s. and else where could be looking for aim possible bankruptcy, chapter 11 that's according to sources familiar that's helping drive the decision you have the apes, the new preferred shares that amc is issuing to the existing common shareholders that nowtake effect likely today. so when you have a new priefrd class of shares alongside your common class, the value kind of gets reduced a little bit by the common share there's a dilutive effect. if those preferred shares get converted to common shares, then everybody owns a little bit of the company by share count amc entertainment, that's driving the action we'll put gamestop up there. joe mentioned interest rates interest rates going higher could be pressuring valuations we'll watch the meme stocks.

watching what's happening now with another deal talk, deal chatter. it's mostly what's happening -- well, this is the wrong one, but if you look at signify health, signify health, united health and amazon,.com being talked about, signify, sgfy is the ticker, that particular stock is possibly the subject of a bidding war developing on that side of things between these big health providers then also watching what's happening overall with tesla shares those shares, by the way, have been volatile by the way they're 27% below the highs. they've rallied significantly off the lows tesla has announced that they are going to increase the cost of their fsd or full self-driving features for their cars by about $3,000 to $15,000 per vehicle if you choose that package. so, joe, we're watching those tesla shares we'll see if it has an impact overall on how they sell some of

their cars >> dom, thank you. see you again. let's talk with j.j jj. j.j. kinehan j.j. is ig north american ceo. joe, people have said the four-week improvement in equity prices, there were some technical underpinnings that were encouraging the last couple of sessions in today, is that being reversed? are some of those -- and we saw the same story, some of the positive action is being reversed quickly so where do we stand in terms of what the technicals are telling us >> well, i'm glad you started with crypto, joe, because when i look at crypto i always tend to think of it a bit as a confidence barometer it's supposed to be a hedge in the markets, this and that i think what it's become is a confidence barometer overall

we'll see the s&ps down over 40 i don't think is necessarily a huge surprise. one of the other things that you and i talked about a few times in the past and that is if i looked at the vix this morning, as you would expect it is up about almost 8% this morning people come in for a little bit of a hedge that way. dom just talking about the meme stocks you say what are the retail traders going to look at this week obviously we think amc, you'll see a lot of people participating in that this week because of the april spinoff bed, bath & beyond, i don't know if people look at what the implied move is from that stock with options 25 days in bed, bath & beyond right now, joe the implied move as of friday was almost $8. in other words, that stock traded 10 bucks this morning on the opening -- in the premarket,

i apologize, basically day trading at $2 or trading at $18 in 25 calendar days. i think it's interesting when people come in that they start keeping things like that in mind as they're making their trade. i don't think they necessarily look at the implied move and i'm not saying the trading there is bad i'm not saying speculation is bad. in fact, i think it gets a bad name overall as long as people realize that's what they're doing. they know whether they're speculating and whether they're investing and what the difference is in their portfolio overall. i think there's a lot of interesting stuff. i think at the end of the day that's really what's going to end up moving the market >> all right so just to summarize then, where are we in -- let's say you look at the s&p as 4,000 as kind of an important point are we more likely to stay above 4,000 or go re-test 3,000.

4400, what are the technicals telling you? you've followed the vix for years. why isn't the vix -- why aren't we talking about it more why isn't it -- why aren't we -- go ahead. >> well -- no, i was going to say we are sort of at a bit of a range, obviously 3600 being low. i wouldn't expect that in the near term. if we go back and test the 120 level on the s&p 500 because, you know, that's going to be a lot of what we pivot off quite a bit. 4400 would seem like a little bit of a stretch for us to the up side. i think the up side to the general in a big move is going to be a bit of a stretch the primary reason i say that is if i look at the probabilities of the 50 or 75 basis point hike for the next meeting they're kind of even right now so i think what people are really looking for is clarity.

so, again, you know, i believe that the 4120 is sort of a much more likely, maybe down to 4,000 if we get some bad news, but for this week i see it as a bit more of back and forth trade, if you will, without that final clarity coming from the german policies. >> thanks. >> have a great week. >> all right you, too okay coming up on the other side of this, big cap tech names, they are all under pressure this morning. we're going to talk to alan patrickof about the changes. take a look at the markets right now. some of the stocks moving. dow off about 274 points "squawk box" coming back right after this

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welcome back to "squawk box" this morning want to take a look at what is working in tech lapped and some of the challenges the sector is facing as we click off the new week with us is alan patricof

alan, it's great to see you. we've been on a seaesaw what in your mind is actually working? >> well, the president passing this or the congress passing this act last week, the inflation reduction act has -- should have a very significant affect in many areas that coupled with the bill that was passed a year ago is, you know, putting a lot of money into the economy in a lot of segments obviously infrastructure is benefitting, climate is benefitting, semiconductors are benefitting. we're going through a period that i think has very good prospects for the country coming up during the next 12 months i'm very positive looking at the outlook for the rest of '22 and

into '23. >> so where does that mean though you're looking in terms of investments i mean, historically you've been involved in all sorts of different tech names when you look at the semiconductor space, is that something that's interesting to you now? >> well, i mean, semiconductors is not an area we have focused on when you see the number of connected devices, when you read how many connected devices there are just in a new electronic vehicle, you just know that demand is going to be there for a long time to come. and obviously there's been a real incentive to build plants that's not going to happen overnight. that's going to take a couple of years. i see this demand for semiconductors going well into the future and, you know, during that period of time investors get enthusiastic, get discouraged. earnings reports affect their psychological feeling at any moment in time

looking on a long-range basis, i can't see anything but up for american manufacturers in particular because, you know, we have 10, 12% of the world market the president has set out to increase our share of that market and i think it's going to happen over the next couple of years. we think of how many chips are being bought by apple from abroad and are now going to be gradually more and more shipped. i think it's a very positive outlook. >> alan, we're showing on the screen, just showed a bunch of cloud computing companies. think sort of enterprise on one end and then we showed a bunch of the faang names, consumer internet on the other end. the valuations have been all over the place you could argue the valuations have come down materially. are they fair value? how is that affecting the

valuations in the venture world you spend your time in >> the venture business has really not been affected in valuations the number of startups it seems to me to be never ending there's not a day that goes by that we don't have submissions of at least a dozen propositions coming in. i don't see anything that's going to change that cloud computing is here with us to stay. everyone is relying on using outside systems and not building their own and i think this is, again, another trend that's going to continue forward. and i know investors have gotten excited. first of all they got depressed, excited. now we're in a period of excitement i think that ultimately things settle down to realistic valuation levels and, you know, at the moment we're affected by interest rates going up and

people's concern by inflation. if you were to look beyond that, i think the -- you know, aws is not going away >> but you look at the valuations of some of the internet consumer names, obviously some of these companies have enterprise pieces, too. amazon is both microsoft is both. you could argue google, these days, or alphabet these days is both do you look at these valuations and say they're fair value because at some level i imagine this does relate back to venture insofar as there were a number of companies that were supported by venture there's a whole view of if interest rates go up, which they are, cost of capital is going up and some don't have the runway that you would want them to have given the cash burn. >> andrew, as i've said so many times over the years, venture companies are financed 100% by equity until they get to a certain stage of growth and start needing excess, start

relying on some kind of leverage for the most part you don't hear in board meetings interest rates went up last week, that's had an impact on our business i know it sounds contrarian thinking, but interest rates are not a major factor in young companies. and i think that obviously the companies you mentioned, the faangs have been buyers of a lot of these young companies to the extent that they get, you know, go back or clump back in or get morey served, their valuations will reflect acquisition prices you know, i'm more thinking about and i've said to you in the past of where these anti-competitive acts are standing in congress and what chance they have to overcome the lobbying influences, but there are two very major bills in

congress and in the senate and in the house to deal with the ant anti-competitiveness of some of these. i think that's an overhanging element. in europe that's been dealt with they've already started passing legislation, and i think that that's -- that's going to be a dampening effect at some point until it's resolved. there doesn't seem to be any end to the use of, you know, google, facebook and their advertising businesses so i think they're going to continue on an even keel here. i don't see them getting hurt badly in this environment. >> alan, you pointed out once we can get past some of the inflation fears and interest rate fears things will be better do you not ascribe any validity to the notion that we spend too much, too few -- too many

dollars chasing too few goods. we try to reopen and there are supply chain issues? we did -- i mean, trillions of dollars of spending. you're a technology guy where you know higher interest rates, it's come true the first half of the year higher interest rates decimated the interest rates on technology you're ready to throw more fuel on the fire, more regulations, more taxes, more money spent to chase the same amount of goods you don't think any of the inflation is due to what we've already done and now we're just adding more? you look at that as a complete positive, the -- another trillion and a half that we just decided to spend >> well, you're adding a factor in there i didn't say what it had to do with the outcome of having inflation, but i think that temporary or short-term inflation is a consequence of all the things you just talked about, but if in the course of that we make some constructive

improvement in a lot of the fundamental aspects of this country, including particularly infrastructure and climate and dealing with the climate problems that we can see in the future, i think it's a cost of -- of building a stable society and, you know, as a consequence, as part of that people are going to be back at work and i think people will be feeling better about their own economic well-being and will spend more, even if it's going to cost them more on an interim basis. i don't see this inflation, you know, getting out of hand. we're not going back to the early '70s when inflation was double what we're seeing today or almost double i think we're -- i think we're going through a temporary period i think we'll see that stabilize and i'm not concerned about it on a longer term basis

>> okay. alan, we are going to leave the conversation there we always appreciate seeing you. i see you've got your book behind you, "no red lights." >> no shame on my part, andrew >> we have to take a live shot of alan. get the wide shot of allen so you can get the back in the back there. >> there you go. >> thanks, alan. >> all right great. thanks for having me coming up, the two-year pause on federal student loans is about to end. we're going to have new survey results what americans think about student loan forgiveness and some of the unintended consequences "squawk box" will be back in a minute - common percy! - yeah let's go!

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just days now from the education department ending the two-year pause on federal student loan repayments. many borrowers are hoping the biden administration will extend that august 31st deadline and offer more debt forgiveness. our senior personal finance

correspondent sharon epperson has more hi, sharon. >> reporter: hi, joe president biden has a tough decision to make on student loan forgiveness. after battling higher prices already, a majority of americans, 59%, are concerned loan forgiveness will make inflation worse. that's according to a new survey by cnbc and momentum that may be overdone 53% said if that put extra money in their budget, they would put that in their loans and 45% said they would save that for retirement 30% say there should be no student loan forgiveness for anyone if you dig deeper. while 39% of men say no loans should be for given, just 22% of women say that only 19% of young adults between 18 and 34 years old say no loans should be forgiven versus 39% of those over 65.

overall, 34% of adults say only those in need should have loans forgiven 32% want loan forgiveness for all who have student debt. the biden administration has approved nearly $32 billion in student loan relief so far and the department of education says it is working to improve existing programs to make it easier for borrowers who qualify to get their debt discharged joe, education secretary miguel cardona yesterday on msnbc talked about the fact we will hear something about loan forgiveness expected this week back to you. >> i know cnbc did a student loan survey back in january. how much did respondents -- did their views change since then? >> well, we saw some interesting data in terms of their current financial situation whmpt people were polled back in jap, over 5,000 people, about 29% of them

said that their financial situation was worse than it was two years ago. when the poll was just done in early august, that number jumped to 39% of americans saying that their financial situation is worse than it was two years ago. so we're seeing a significant increase in people really feeling some financial pain. >> all right thanks, sharon >> sure. still to come, we're going to talk more about amc's ape split. joe lonsdale is going to join us and katie stockton is going to join us. stay tuned, you're watching quk x"ndhiisnb"sawbo a ts cc.

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welcome back to "squawk box. red arrows across the board. dow down close to 290 points off. nasdaq off 200 points. s&p 500 off about 48 points. later this week. central bankers will be gathering in jackson hole. we'll hear from fed chair jay

powell our next guest is warning washington is not serious enough about tackling this. joe lonsdale you're worried that maybe the fed doesn't have the credibility that they want at this point >> good morning, andrew. you know, i think the leaders in d.c. clearly don't have the credibility they want. there's ways you can reduce inflation. you can raise rates faster you can spend less you have the inflation reduction act does a lot of things totally unrelated to inflation and as a technologist, i think what you can do to reduce inflation is you can allow technology and competition to go into areas that requires passing laws to go against cronies and to allow us to go into health care and energy and build stuff and they're not doing that either. >> so when you think about what jay powell has got to do, what do you want to see >> you know, i think you

probably need to raise rates a little bit faster unfortunately. >> is that 75 basis points is that 100 basis points telling the market we're going 75, 75, 75 what are we talking about? >> i think jay may be on a good path he's behind the curve. i think the fed itself is going to need to go a little bit further a little bit longer. it started too late. the biggest frustration is if congress is going to act, you can't keep giving out more free money. you can't give out loans that are not going to be repaid powell is ona good curve i think the rest of the guys in d.c. are not doing their jobs. >> when you think of the world of venture capital and people start to worry about the costs of capital going up and some companies that don't really have the runway, what happens to those companies? are you thinking about that right now in terms of valuation?

>> oh, yeah. you know, we both invested in build a lot. as a builder of companies it's been a very frustrating time in a lot of ways in the last few years. you have artificially high price of talent. artificially high price to create things. we need a bit of a stronger recession to wipe out the nonsense that will be a good thing for our space. >> joe, did you see alan patricof were you watching that earlier i'm just wondering i want to ask you about the differing viewpoints that two brilliant tech investors can have on the way we should

approach it. he was very bullish based on the money that you just called handouts to special groups and, you know, he says, yeah, inflation near term might be a problem, but we've got to fix the climate. we've got to stop the bad weather to really move forward as a people in his view. and he didn't ascribe any of this spending to inflation how do you two arrive at such different viewpoints i think you just want technology to be left alone to do what it wants to do. >> you know, i think he and i agree on some things at the very least, some of the money going towards building and innovation is not a bad thing. you know what's ironic, they're giving all of these tens of billions of dollars towards green infrastructure yet the vast majority is held up in permitting it's going to take 5, 10, 15 years to go with it i'm a blind with him if we're going to spend money,

build and innovate i think you will see a ton of money going towards things that will be held up the way our country works. for example, with the irs, you'll spend $80 billion with the irs, i would rather they innovated and built something for them not have to harass us so much versus hiring tens of thousands of people who harass all of us. there are ways to build innovation in the government and it would be great to see more of. >> joe, one of the things you talked about is health care and energy from a regulatory perspective in a way to cree eighth new competitors. what laws do you think need to be changed or thinking needs to exist. >> you have to get rid of certificates of need you have to get transparency if i'm a 22-year-old out of

harvard and a young woman has an idea to build something about health care, right now she's blocked from doing that. you have to be a giant company that spends tons of company to get allowed access to hook up to this data. you need to break down barriers, force transparency and actually allow competition. >> before i let you go, we always run co-founder palantir on the bottom of the screen. that was on a wild ride. it was as high as $30 now we're looking at a stock that's been chopped more than in half this year i think we're 8, $9 a share. what do you think is happening here >> you know, i think their last earnings were -- the numbers came in quite strong for revenue. rather than growing at 30% they're going to grow than that.

pal lynn palentir is hiring i think growth stocks have got -- obviously as a meme stock it was ridiculous heights. i think it's a good opportunity for people who want to be part of that next decade. i would be very bullish. >> you just mentioned meme stocks we've been watching meme stocks come back. all of a sudden everyone is talking. last week was bed, bath & beyond this week it's the apes with what's happening with amc. >> you probably don't want to be -- that's probably not a good thing, not for the long run. >> what do you think is happening? to the extent it represents something about the psyche of the markets or the retail investor or maybe it's the professional investor. i think we're not really sure what's leading this. >> you know, earlier during covid we thought people had nothing to do so they were gambling online. there probably is a massive amount of liquidity that's very

valuable you saw for a while some good prints on inflation. i'm nervous where that goes. there's a lot of money on the sidelines. when it comes back in, that's a game people like to play it's one i would like to avoid. >> what's joe lonsdale doing with his money are you waiting for a worse moment to arrive or are you thinking things are looking better >> i'm building early stage venture capital. i think it's the time to be in the top of technology world. i think in terms of other sources of money, there are alternative credit we help people access smart alternatives that are uncorrelated and safe. i think there's some opportunities there. >> it is always great to see you especially on a monday morning like this in the middle of the summer hope you have a great summer hope to talk to you soon

thanks >> thanks. coming up, the shares of amc are being marked down this morning after the giant given shareholders a special dividend. didn't think that would happen called the ape split look at 5d a.m. aaron's thoughts get the best of "squawk box. follow "uasqwk pod" and list jenny time stay tuned make trading feel effortless and its customizable scans with social sentiment help you find and unlock opportunities in the market with powerful, easy-to-use tools power e*trade makes complex trading easier react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity

amc giving shareholders a special dividend called ape. it's not a stock split what is it, christina? >> it's actually a special dividend >> that's amc ceo is saying. all while voting against the issue of new equity at the last shareholder meeting. joe, to your question, every current amc shareholder as of last friday will get one amc preferred equity unit, also known as ape, and it should begin trading on the new york

stock exchange today the special dividend will be convertible. it's a common shares at the soul discretion of amc's board when it's in amc's best interest. that means management can issue new ape shares although it's concerned, ape shareholders could stand to benefit especially in the case of invol vens si >> the bankruptcy, the preferred shareholders would have priority over the common shareholders. amc shares surged after the move was announced on august 4th. they're much lower than on point. much more than 65% off the 52 week high. the company is steadfast in its beliefs and this weekend said the ape shares will make them, quote, a stronger company. >> a lot to think about. now since -- >> a lot.

>> -- the special dividend, it's similar to a split how does the performance compare, christina >> yeah. so it is very, very similar to a split except that you're not taking amc shares and splitting them into two. instead for every amc share you hold you get one ape in the past splits alphabet, tesla, amazon, you've had retailers pile in. there's been a big rally there's research being quoted and a lot of other media outlets that show after a 12-month period of a stock split, you see the company price, stock price go up 25%. i'd like to point out that data is very, very near term. only focuses on the 12-month period specifically for today we are seeing the share price of amc down two potential reasons. the first one is a lot of shareholders have not received their ape shares in their broker accounts just yet. they could get it later on today.

so there's a little bit of delay. a lot of questions asking where are my ape shares. the second thing we often see after a stock split is that those investors that bought amc shares after friday will not get the dividend and, therefore, that's getting reflected in the major drop seeing today, joe >> so we don't know when -- it's not diluted but it will be diluted. very strange >> well, it's -- >> go ahead. >> well, amc -- amc is going to provide the share to the broker houses or probably already did this morning then they go about and give it to everyone else it's not supposed to be diluted because you're still going to have amc shares and ape shares ape shares are supposed to be possibly a little bit higher because they have preferred status you will see amc shares drop a little bit but the expectation is ape shares will go up so it's going to even each other out we'll see what happens, right?

>> okay. all right. christina, thanks. coming up, what are the charts telling us about the markets and other internals of the -- of what we've seen laty katie stockton is going to update us on what have been great calls. it looks like it's playing out the way she said we'll still see this plenty to cover with futures in negative territory "squawk box" will be right back. this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery.

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let's take a look at the markets heading into a new week. joining us now, katie stockton the action that we saw, which was a pretty solid july and beginning to august, did you ever question your thesis that it would be kind of a false bear market rally that was doomed to take us to new lows eventually did you ever question that and where do you stand right now? >> i mean, listen, we're always questioning ourselves. i think that's just very natural. and yet the indicators didn't turn so the indicators, because they're mathematical, they're price based, they really don't lie. we have to stay on the right side of them short term we saw momentum behind that relief rally saw the nasdaq 100 up 24% off the low. much higher than we would have expected now the 200 day moving averages are in play as potential resistance

short term momentum as of friday started to fall off. that's for the first time based on our gauges since late june. so it does mark a meaningful shift. the relief rally, as big as it was, it never affected the longer term gauges that to us meant we needed to stick to our longer term bearish bias pull it off and recommend hedges until now that we have the loss of short-term momentum. >> what's the most important index right now? you mentioned the nasdaq you've talked about the s&p a lot. the 24% move from the lows in the nasdaq did surprise you, and we did see some 50-day moving averages some individual stock we saw widening of the breadth and the participation. so all those things at one point sounds like the hedge you're saying, whoa maybe this is a show me market that's showing me that it's headed higher.

correct? or -- >> yeah. >> go ahead. >> the reason we're skeptical about that is because we think this is a bear market cycle, not a correction corrections can end in that v bottom fashion but bear markets really cannot. we've always suspected that some kind of bottoming process is needed and that takes time it would be unlike what we saw just at the june low indeed, there was that breadth for us that was very widely publicized. when something is as widely publicized like that, it makes me doubt it. we saw a lot of stocks get above the 50-day moving averages that was a breadth surge so quick to contract we don't want to get ahead of ourselves and sense that's something that has any sustainability our breadth is that over bought percentage of 50 days and there's a lot of measures out there that to me got to unsustainably high levels and

now we're leaving that condition. >> you don't see a 50% retracement of the moves from the lows and then another resumption of the up trend you think that the 3600 -- let's move back to the s&p since i just have those numbers handy. the 3600, what was that, a june 16th low or so you think that's going to be violated at this point we just won't see some backing and filling and if we did i imagine you'd get some of the spikes in the vix and some other sentiment indicators that might make for you a more lasting bottom you think we're going back to 3600 and below on the s&p? >> i do. the down trend's appearing to have its hold. we didn't see any major resistance broken on the up side that was one issue that long-term momentum remains a down side. we're looking at risk assets like bitcoin is upholding the long-term down trends. no signs of life there in our opinion long term as of yet despite the fact we have the

long term oversell reading it tends to see a series of retests. we saw that in 2008. the vix or volatility index, you can go back and make a comparison to about may 2008 with the way it's traded up until just last week i don't take any solace in that we haven't seen a vix spike. i think unfortunately that work probably needs that at some stage. the 35 level is resistance for the vix and even between here and there that can be pretty painful. for the major indices, there's 6 to 7% to the down side to the 50 day moving averages. you can imagine what that would do to market sentiment >> yeah. we'd get the vix you're looking for. how about bitcoin? do you think it goes back below 19,000 got it at 17 and change. do you think it goes below that 12, 000? is that in the cards >> i think we're getting into a retest of that longer term support and we've been watching for along time

starts around 19,500 and that's going back to the 2017 high. the momentum long term is still very much to the down side behind the cryptocurrency space. even ether which has had a more impressive run up has down side momentum long term i don't want to prematurely get ahead of these in such a high beta area of the market. wait for that to be built and for support discovery and that's a bit more convincing than we've seen i think that long-term support is even at risk. >> what does the interest rate complex look like deal what's the ten-year deal look like, 3 1/2. >> 3 1/4 is resistance we did see the 10-year yield get above the 50-day moving average. we should see up side. 3 1/4 is initial and pretty strong resistance on the up side we're still looking for more backing and filling. by that, we mean choppy action

below the 3 1/4 level. after that the up trend will resume given the long-term up side momentum. above 3 1/4 we start looking at 4% as the next resistance. >> all right thank you, katie >> of course. >> we appreciate the update. andrew, did you see the dog days people explaining it has to do with sirius, the star -- >> not the radio i saw. i've got to tell you, i don't know the whole story though. we need someone to come on and tell us. >> the dog days already early -- >> anyway, we've got to jump we have a big hour ahead mohamed el erian and others after the break. with san francisco. and you can find him, and millions of other talented pros, right now on upwork.com

good morning stocks set to slide. we're going to talk about the big drivers with mohamed el erian and meme frenzy. story is lighting up the reddit boards making a bet on "the house of the dragon" as the final hour of "squawk box" begins right now.

good morning and welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square. i'm joe concern then along with andrew ross sorkin becky is off today u.s. equity future also off today. down significantly some red arrows that you see continuing some of the selloff that we had last week after what was a solid four weeks for the bulls. now we're back in the soup to some extent. treasury yields also problematic after some hawkish comments from some fed speak last week bullard and others, 2.97 at this point. joining us from the nyse senior markets commentator, mike santoli. i don't know if you were watching katie stockton. she was 24% off the lows she's sticking to her guns new lows and a lot of things

down the road. >> the velocity last week and it touched the moving average s&p 500. it's still operating sort of within the orbit within those lows this is the s&p around, spy index fund this level we're sitting at is essentially right on top of the june highs it was really the area where people were like if this is a very strong new up trend, most likely it just pulls back to around that level and then maybe can find its footing again there's a 20-day average that's just below there, too, in sort of short-term trends that stuff sort of tends to matter as well this is getting to a point where we're just sort of testing the outer range of this rally at the moment take a look at the somewhat unusual leadership profile

utilities made the new all-time highs. it was a risk-seeking move off the lows as well as apple. this is a one-year chart apple and utilities racing ahead of the overall market, the s&p also instructive that apple, which represents more than 13% of the nasdaq 100, has had that much of a performance spread against the nasdaq 100 meaning it's not just a general growth it's apple specifically. historically when apple has had one of these massive outperformance cycles, it doesn't mean bad things but it means the market itself is in a funny spot the rally was broad but apple opened up the advantage. the 10-year treasury, the stock market has not been able to really digest very well 3% 10-year treasury going back to 2018 a lot of folks saying that looks like it could be a topping formation for the yield. this threatens that just near

3% global yield surging people concerned about inflation here and especially in europe and natural gas going up all those things in the mix. it feels like, joe, we sort of were granted a peak inflation dividend after the cpi numbers yields went down, the dollar went down. you were able to rebuild that equity valuation i would say tested not necessarily unwound all at once. >> we need to know what the fed really wants, mike >> yes. >> if we were -- if peak was 8.8 or 8.9 on inflation, what would they feel like at 5? would they feel good at 5 or would they be inclined to do 75 basis points again and again at 5? is 4 good? >> that is the question. >> will you take 4 would 4 do it for you? are they serious about 2 if they're serious about 2, i don't know what that means i don't know how many rate hikes we're talking about. >> i think they're serious about

2, but if it gets to 4 in a hurry and you're talking about multiple months of declining, pce which they sort of put out there as the minimum standard for them kind of easing back a little bit, then i think they would wait and see not necessarily turn around and start cutting rates. it seems we're going to get a little bit more clarity. obviously what the market is dealing with is a perceived disconnect between where they're situated in terms of stocks and bonds and what the fed seems to be stating i would just say the fed is saying exactly what they have to and would otherwise be expected to say it's not really news the plan is still to fight inflation as hard as we k. >> people go back to that prior period where the fed at that point back in the '70s and '80s thought they had killed the beast and said, well, we're at 4. looks like we're headed where we want then the stop and start.

then it would come back with a vengeance. >> exactly yeah >> it depends often who they lie to, whether they can put a stake in it and expect progress and sort of back off a little. i don't know >> thanks, mike. >> yeah. >> okay. joining us right now to continue this conversation, mohamed el erian president of queens college in cambridge. good morning to you, mohamed look, we keep talking about it, this disconnect between the market and the investing community, though maybe the disconnect is coming back a little bit closer, and what the economists in the universe seem to be thinking about what the fed may or may not do and why there was such a disparity, but i don't know, maybe you think with the market coming down people are starting to get with reality here >> andrew, there's a number of disconnects. there is the one between the markets and the economists but there's also the one more importantly between the markets

and the fed. this week is a critical one because chair powell has two choices, either to let that disconnect continue or try to resolve it and if you try to resolve it, he either resets the market's expectations or he acknowledges that the market is right because we're going to have a significant economic slowdown. it's going to be up to him what i -- important that he does not do is repeat the experience of last year where he makes all sorts of economic forecasts that proves to be wrong. >> i'll give you another disconnect that i don't understand if you look at what a lot of the bank ceos are saying publicly, i'm talking about jamie dimon and others in the world, who have put the chance of recession at close to 90% in some conversations, and then you look at what the bank's economists are saying, it's like night and day. i think jp morgan is 40%, for example, in terms of the prediction of a potential recession. why is there such a disparate there, do you think?

>> i think part of the issue that everybody is trying to struggle with is what do you do when the u.s. is outperforming the rest of the world? i think if it was just about the rest of the world, the recession calls would be all over the place. europe is looking terrible and the further hike in gas prices is not going to help much. china is clearly struggling. it is the u.s. that has the potential to avoid a significant downturn if we get the policy right. so you get this incredible disjointed messages from within the same institutions because they have different views about the u.s. >> in terms of what your view is at this point, you think that j. powell is going to say what? i know what you want him to say but what do you think he will say? >> i don't know. it's like the neutral comment he made a few week ago. he wants to tell the markets what they want to hear but

increasingly he's being criticized for not being realistic. i don't know where he's going to end up i know what he should say is be honest about what is ahead. >> mohamed, what is honest there are some people who think he needs to be at 75 basis points and say i'm going to stay there and i may stay there for months, effectively. some people think he should go to 100 basis points. others say, actually, maybe the economy is doing a little better than we thought. maybe it's a softer landing. maybe we should -- maybe 50 basis points is reasonable, right? i'm not saying it is, i'm just saying that's the -- and maybe it's 50 basis points, maybe one month, two month and then we're done i don't know >> so, first of all, he should shy away from what i call superious precision. what he should come out and say is i'm going to do everything i can to put the inflation genie

back into the bottle that is critical for our longer economic well-being and, yes, that may result in a much weaker economy, but over the long term, that's what we need. this other fairy tale economics isn't helping anybody. >> hey, mohamed, i know how nervous you were because at 4,000 on s&p i'm saying 4400. you're saying 3600 we're getting close. now you've got a shot again. looks like i may have to pay off. where i'm getting to on this, i'm leading to the mets and i'm just wondering whether you would be opposed to me jumping on that bandwagon? the mets have always been my wife's family, always loved the mets did you watch that game yesterday? did you watch mcneill? did you watch -- that's a team that i could love. i'm not kidding. do you want me on board for the rest of the season because the reds, forget it. do you want me on board or do you not want me on board

>> joe, we welcome everybody but i think you should focus on the reds they are no longer in last place. they're .400. >> i'm done with the reds. what a game. >> it was amazing. it was amazing having said that, the braves did beat us up a little bit too much let's hope we can do better. >> you should meet the bracves. i had houston and the mets. >> you don't want me there >> i welcome you on. joe, i want to lose my bet i want you to take me to a mets game i really want to lose my bet >> no, i get tacos if you lose your bet we go to the mets game if you win. we go to the mets game. >> but i want to bring your tacos -- >> how about we have tacos at

the mets game. >> and i think we should do that what happens with neither 4400 or 3600? >> it could. it could >> but if i had to pick a new york team, i've got to tell you, i like the mets. yankees, don't know what's going on. >> don't jinx us please don't jinx zblus coming up. >> a fan. >> white house economic adviser heather boushey to talk about all things, inflation, the new laws, the inflation reduction act. first as we head to break, check out this morning's biggest nasdaq winners and losers. stay tuned

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of them are great at this point. i know what we've been told and the premise for the inflation reduction act. there are critics that say that it's misnamed and that it basically is 360 -- i'm reading from a heritage foundation piece, 369 billion to politically connected green industries to shift trillions of dollars of investment in the green boondoggles with nothing to reduce inflation, and that's the premise that the right is making just a big deception and false advertising. what do you say to that? >> well, i look at that piece of legislation and there are so many ways that this bill is going to lower costs for families so, first fl all, one of the things that folks have been fighting for for a long time is the ability of medicare to

negotiate with prescription drug prices that will lower costs for millions of families who use prescription drugs that's going to put real money in people's pockets. that certainly is important. this legislation will also lower the deficit and continuing what this administration has already done, keeping deficits down, that certainly will also have a macro economic effect on inflation. but in terms of the clean energy investments, our nation is embarking on a transition towards clean energy this is important for our economic future, important for national security, important for the climate. this legislation is going to make it possible for families to afford that transition it's going to make it easier for them to afford new cars that are electric vehicles. it's going to make it easier for them to afford the things they need inside our homes. new heeding and cooling and new installation and focusing on making sure those things that they are purchasing to the extent possible are also creating good jobs here in the

united states. these are massive economics wins and national security wins as we move on the clean energy transition there's a lot of different ways that the inflation act will reduce prices facing families. here's the thing let's remember we're already seeing things decline in prices. we've seen 68 days straight of lower gas prices for families all across the country average gas prices are now $3.90 a gallon families are saving about $60 for every car and driver in this country per month and that's real money in people's pockets. >> i guess people look at the definition of inflation, heather, and that is that, you know, coming out of the pandemic, there was a lot of stimulus there were some supply chain issues and bottlenecks so you had a lot of dollars chasing too few goods and it just seems like

you wouldn't throw additional fuel on the fire the other side would say, look, this is what you need to do. you need to increase supply, whether that's fossil fuels. you don't tax fossil fuels at this point you actually minimize regulation try to increase the supply so that electricity prices go down because it's still mostly fossil fuel based so to increase taxes on that group makes no sense you cut government spending. you cut regulations and you cut taxes so this bill is basically 180 degrees from there does the opposite of all of those things. >> here's the thing though first of all, this legislation lowers the deficit so that is consistent with -- >> that's by increasing taxes. >> by increasing taxes on those at the very, very top who many in large part haven't been paying their fair share. so what it does is it imposes a 15% minimum tax on the most profitable corporations in america when they are reporting profits to their shareholders,

they need to report those to the irs and pay their fair share of taxes. it is going to ep sure they focus more on investing than stock buy backs and it makes sure those at the very top of the income ladder pay the taxes that they already obi giving the irs the capacity to enforce the laws on the books. all of these things are going to help make sure that we have the funds available for investment across the united states and the tax system is fair and delivers tore working people all across the country, not just for the wealthy. that is all in the economic interests of working families all across the country and it's all consistent with the president's priority of building an economy from the bottom up and middle out and making sure that the core things families need to succeed are affordable and there are good jobs across the country. we have it backwards there's so much in this legislation and in other legislation passed, chips and science act, bipartisan

infrastructure law and combined with the inflation reduction act that are on the supply side, that are about boosting america's competitiveness and economic capacity so that we can meet the supply that families need, you know, for decades to come so i really think that the purpose of this legislation and this body of work that the president has focused on will be to improve economic outcomes for familiar liz all across this country. >> we'll be watching in europe have you seen natural gas prices i hope that's not in our future, what we see over there we could get a rude awakening on maybe rushing the transition to renewables when they're not really ready for primetime given what could happen for the winter is that on your radar screen at all? what's happening in europe >> certainly we are watching that every day that is, you know, why the president has focused from day one of his administration on making sure we are making this transition to clean energy in a way that is smart and where that

transition can be smooth and affordable for families and we are creating the capacity so they can have the capacity to invest what we know is that so long as we are dependent on oil, we are dependent on foreign prices. oil is a global commodity where the prices are set globally. we don't have control over those. but if we can focus on making that transition to clean energy, then we will see over time that prices will be more affordable and they can be more stable. that is the purpose of this legislation so that we are not stuck here in these challenges in the future. and the time is now to make these investments and, you know, to make sure that we're doing it in a way that will create good jobs across the united states. >> okay. make a good case, heather. appreciate your time this morning. >> thank you okay coming up, joe, i didn't get to see this last night but a lot of people did i don't know if you see this

"house of dragon." epic battle between hbo and amazon it will be a costly one but could lead to streaming dominance. check out our daily podcast. "squawk pod. list jennen any time. we'll be right back.

welcome back to "squawk box. the debut of "house of the dragon" crashed the site it was a win want to join us now with julia boorstin from the west coast julia, did you stay up to see it >> reporter: i didn't. it was too late for me last night. streaming, i can catch up and watch that first episode of this new show tonight here's the thing about "house of the dragon" which launched on hbo and hbo max. it wasn't about a new series this is a high stakes attempt to extend the most valuable franchise of "game of thrones. this annoyed some of the series most devoted fans. a reported 15 to $20 million an episode, the new series comes at a time when hbo max and other streamers are anxious to draw and retain consumers who are expected to be cutting back on

subscriptions and cutting back now. with warner brothers discovery shares down 44% year to date, david zaslov's streaming and could buffer subscriber erosion. it added 1.7 million streaming subscribers between the first and second quarter, this fall is a crucial season for hbo max to both retain and add subscribers. all of this comes as it competes with amazon's biggest content bet yet. amazon prime is launch ing a ne series it's the most expensive tv series by far. along with nfl rights, this is part of amazon strategy to use big brands to draw and retain

the all important amazon prime subscribers. it says something about the state of the media industry that the biggest content face-off is not blockbuster movies but rather about streaming andrew, i just want to know, each of those two series, the one from amazon and hbo max will be dropping shows one a week as we see them move away from netflix's binge model. >> i've been reading the reviews. the reviews have been pretty good i haven't seen it yet. they say that they sort of side-stepped a straight up comparison with "game of thrones", but for the most part it seems like it's a winner. we'll see with the ratings this week. >> we'll see with the streaming numbers. it's interesting it's not just about tv rating, how many people are streaming. word of mouth matters. this is going to be the kind of thing where people say, hey, you've got to go subscribe because it's so worth it just for this one show. that's the power this kind of a

show can have if it's good >> who's got more riding on it though, amazon or do you think hbo? >> reporter: it's a very different value proposition. amazon is trying to keep people into their prime system. for hbo max, this is a standalone operation here especially considering they just did the merger with warner and discovery, right now i think probably they have more riding on this show. >> do we know how much they're spending. >> reporter: it's been reported at between 15 and $20 million an episode. of course, that's just reported and there's millions more on marketing, et cetera it's really about how it fits into that franchise -- i mean how that franchise fits into the streamer right now they need a massive hit to get people to subscribe if that worked, they could have more shows and spinoffs to come.

>> julia boorstin, nice to see you. thanks joe, we've got a new show to watch apparently. >> trying to put together a new i idea godzilla versus king kong. what if the hobbits met the characters on "game of thrones" s. there any way to merge tolekein and -- probably not possible. >> when amazon ends up buying warner brothers discovery down the line, when everybody consolidates to just be amazon, yes, there's probably a spinoff that puts them altogether. sort of like the marvel characters they'll all merge together. >> what's a place in "game of thr thrones" middle earth, westershire. i love the trilogy do you think it will be like g2 or g3?

god father 2 or god father 3. >> our producer says it's great. a lot of people are loving it. >> which producer? >> mr. contino >> he's savvy. >> savvy, right. >> about this kind of stuff, right. not businesses -- coming up, veore going to talk crypto inst anthony scaramucci. stay tuned you're watching "squawk box" on cnbc what if you were a gigantic snack food maker? and you had to wrestle a massively complex supply chain

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welcome back to "squawk box. got a three handle on the decline in the dow down 321 points indicated pre-market nasdaq on a relative basis down a little bit more. down 192 s&p giving back almost 50. a few meme stocks. bed, bath & beyond down 14%. amc entertainment after the, what do you want to call it. whatever we say, andrew, about the ape disbursement what do you want to call it? just to make sure we don't kblang one mad a lot of those people fit right

in some of those have tens of dozens of shares and -- maybe. tens of individual shares but they get really mad. they get mad at you. they get mad at everybody. it's not our fault what do we do? i didn't do anything i have no opinion one way or another. >> look, i think the bear issues that say, look, the stock is not down 38% you've shown it on the screen. over here, getting value from those and they're not wrong about that >> right >> the question is, what is the total value of all of it combined i think that's still an open question. >> they're always mad. always mad why are they always mad? you know why they're always mad? >> no, i don't i think there's a -- i think there's a frustration. >> maybe that's t. all right anyway, we are learning more about ftx this morning and how

the company rode the crypto craze to billions of dollars in revenue. by the way, possibly has implications for meme stocks that all of the people who made money in crypto. kate, nice to see you. >> reporter: hey, andrew good morning this is a pretty rare look under the hood of ftx. the privately held crypto exchange brought in just over a billion dollars in revenue for 2021 that was up more than 1,000% in a year it was on track for a similar run rate this year and last year felt a profitable income rating was 272 million. that was up from 14 million. a year earlier and operating margins of 27% like others in the brokerage industry, the bulk of revenue comes and it's much more indexed. derivatives, futures, options, those are by far the biggest revenue drivers.

most of the action happening outside the u.s. you remember the super bowl ads. it spent 15% of revenue on marketing ads and plans to spend almost a billion dollars there it gives a sense, the ceo owns ftx trading which owns companies in cyprus, uae, others companies across switzerland and other areas. not clear though, guys, how the company is holding up in a recent downturn it had a $32 billion valuation. shares of coinbase which is the only real public comparison are down about 70% from january. back to you. >> kate, so when you think -- 5% of their business is in the u.s., how does that compare --

coinbase is obviously the biggest. what -- if we start looking at market share, how does it look >> yeah. so it's interesting. coinbase is reallyu.s. focused and they've pulled back in recent quarters when it comes to spending and expansion they are u.s. domiciled, u.s. base don't have the global base and don't focus on derivatives we've talked about driving ftx on the stock side, you have the fee conversation they charge 2% ftx is at 2 basis points then you have companies like binance. all of these have expanded and they're saying, coinbase, they have taken the u.s. compliant strategy we're going to build within the u.s. and we've seen what's happened there with the sec. they're brushing up against the

regulation interesting to see the dynamic play out. >> kate rooney who knows all things crypto for us on cnbc thanks. we're going to continue this conversation with anthony scaramucci good morning, anthony. we've been looking at bit down a bit. eth down a bit it had been up a bit on this big expectation of what comes in september, the merge which we can talk about what are you expecting how do you want to look at bitcoin from eth >> i think everything is conjoined. everything is being treated like a risk trade it's been coupled with the nasdaq, andrew, so when that decoupling fully happens, it's hard to know but a couple of bright spots going on right now number one, look at hedge fund sentiment, something sky bridge has tracked for 17 years, it's

resoundingly bearish and there's lots of short positions that have been added over the last two months so that's typically a contrary indicator for markets. that's a positive. the second positive is once the eth merger takes place, there is a trade going on right now where people are waiting for the futures related to eth they're sort of getting long the merge but potentially as soon as the futures get launched, they're going to get short the futures. there's some sloppiness. people are bleaching there will be a fork in eth which will be a proof of work. i don't think that's happening but that's creating some sloppiness there the blackstone -- i'm sorry, the blackrock trust which is going to be a bitcoin trust is signaling that institutional investors are lurking and there will be potentially large demand from institutional investors

there is some bipartisan momentum in the house and senate you could get some type of regulatory vote from the house and senate after the mid-term elections, which i think would be a nice setup for 2023 >> anthony, the sentiment poll that you seem to be taking, is that directed at crypto specifically or is that just market broadly because i imagine if you were to look like the vault in a crouched position. >> yes crypto is tied to risk assets. if the hedge fund is super bearish. any bright spot or news would cause short coming and a rise in crypto assets. >> how connected do you see crypto and what we're seeing the

meme stock is back we were watching the wild roller coaster of bed, bath & beyond. our favorite company we like to go visit you see gamestop obviously we have amc this morning issuing this new security what's happening here? are they related >> you know, i think they're related. there are still people that have made a ton of money over the last couple of years they're going to dabble in that momentum and play those trades one way or the other listen, you know, i'm of the belief -- i'm in the alan patricof camp as it relates to the inflation. i think things are going to settle out i think people are going to be surprised at the strength of the market going into the back end of the year, early 2023. you can see it every time there's a little bit

of good news, markets have a very strong rally and crypto markets have a very strong rally. it just seems like there's a ton of short positions out there, andrew people get their faces ripped off when they least expect it. trust me, it's happened to me more than once. >> so what does that expectation mean from what we're going to hear from jay powell in jackson hole later this week >> mohamed erian was saying to you earlier, he's made some wrong economic forecasts he's going to be cautious. the fed will be cautious to jack rates too high they're never going to say the word transitory again but they're still in the camp this is non-systemic, supply-based inflation. over the next 18 months as the markets settle out, you're going to see a reduction in those numbers. i don't think the fed wants to overly yak the economy and push

us into a steep recession. we may get a shallow recession as a result of everything that's going on right now i think he's going to be cautious we're really not going to get clarity on the markets until we get better data related to the supply chain and better data related to inflation, which is going to come in the back half of the year. this is sort of a setup for october, november and, listen, i've been doing this a long time this is my 34th year in the industry when the hedge funds are this bearish it's usually a good sign for the markets. >> anthony, is any of this inflation based on too much money sloshing around, whether it's fiscal or whether it was the fed's fault with m2 growth and why wouldn't bitcoin be higher if it was based on a devaluing currency >> so there's a couple things there. yes, joe, you've got a 40% plus

increase in m2 that's a tremendous amount of money chasing assets, if you will which got kiss connected as a result of covid. it's probably higher than what the statistics are actually stating, but as it relates to bitcoin, i've said consistently on this show bitcoin is still not a mature enough asset to be regarded as a potential inflation hit. you just don't have the wallet band width in bitcoin. when i bought my first bitcoin, it was 80 million wallets. according to glassnotes, there's probably 300 million wallets globally today until you get into the billion, billion plus, joe, i don't think you're going to see bitcoin as it's still an early adopting technical seat are doing f. larry fink and his team are setting up a product related to

bitcoin, that is telling you there is institutional demand. there's an expression back at goldman sachs in the early '90s, feed the ducks if the ducks want bitcoin, set up a product and feed the ducks. this is a huge thing that's not being -- not saying it's over4ro overlooked, but it's not being expounded on as much as it should zblb thanks, anthony. >> let's go, mets, joe you've got to go to a game with me and mohamed. >> did you watch >> it was actually exhausting to watch the game there was a lot of emotion going on. >> i was saying, man, if that guy could do it again, then he did it again but then i was -- you know, i had a $5 bet to win 25 i'm telling you, i was on the edge. >> how much money do you have my wife said? in the ninth inning. they let the phillies score another run in the ninth i thought they were going to

lose it with a walk-off. didn't you it's fun. >> i was confident once they tied it. >> that closer didn't have his stuff. >> you love the mets, joe, i think it's pretty obvious all of us mets fans you love the mets. >> you don't want me. >> come into the tent here, joe. it's nice and warm here. >> you don't want me. coming up next, we're going to check in with jim cramer at the nyse phillies fan the biggest winners andlosers in pre-market trading. we're coming right back on "squawk box." ♪ ♪ wow, we're crunching tons of polygons here!

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let's get down to the new york stock exchange. jim cramer joins us now. last week, jim, you watch a lot of things besides the fed, but they kind of threw us for a loop, didn't they? do you think we need a series of additional basis point moves to get this under control >> no. one of the things we're having with this market is we're taking our cue from whatever is the worst country on earth, in the case of the stock market, germany, and find companies worth selling based on the futures. it's very difficult. from friday we have foot locker.

t other than bed bath, i hesitate to find a company. >> what do you make of -- is there anything we can say just to make them feel better they're mad. >> yeah, sure. he can take over regal adam aaron can go buy regal from cineworld and become the only real distributor, movie house, in the country he can say i want to buy a couple of hundred of them and you better get on board. and that's enough to reignite it i figure ryan cohen takes some of the money he just made, buy some gamestop, get that going again. they're not going to let this go i wonder if the three members on the board, the council, appointed by ryan, whether the board itself has counsel, whether sue gove, the ceo, is

willing to come on air and say what's going on. i wouldn't be surprised if they're all in the bunker, trying to figure out what to do, get bills paid and stuff >> i would ask you about philadelphia sports, but i don't know, preseason football, has anything really happened with that >> no. >> you can't glean anything. >> it's the ninth inning phillies will be in the post-season, don't you think >> they will, but last night, we were up a couple, i thought we had it, then no. then i thought we would have it, castellano, oh, my god, he's so bad. we can't get an out when we need an out 3 out of 4 >> after the rain delay, the money line was plus 800, plus 750. >> i thought the rain delay, hoskins was at the plate, he had two strikes, i prayed for a

monsoon, i needed a monsoon so we could get 2 for 2 but no monsoon, it was nice out >> because of the climate bill >> right, i forget about that. ira. >> tonight, don't miss the ceo of palo alto networks, my buddy nikesh, he hits a ball so far, great golfer the hottest brands. like nike, jordan, the north face, and more. and, with one-hour curbside pickup, it's never been easier to sport your style. the thing that's different about a vrbo vacation home. you always have the whole place to yourself.

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joining us now, chief investment officer of sandhill global advisers, also a cnbc contributor. i don't know, things were going a little better in july for about four weeks, given the first half of the year that we saw. are we backing and filling, or are we headed to something even more serious than that overall with the stock market? >> well, i think the rally that we saw since mid-june has been based on fundamentals being better than expected for that reason, we think it has legs here. that being said, we've come a long way the economy is still really healthy. if we look at things like

consumer spending, ism surveys, industrial production, those are all still, you know, flashing a between light for the fed to continue to raise interest rates. and inflation started to come down, which is great, but we have a long way to go. so i think we're likely to enter this period of choppiness here we're all been on vacation over the summer, volume's been pretty light. we need more data, i think, to give us more of an indication of just how far the fed needs to go in that inflation basket there are sticky areas like rent, where throughout most of the country, there are pockets where now it's more affordable to rent than buy because home prices haven't come down enough so we're likely to see upward pressure in some of those areas. even though we are getting daily i think news that some parts of the inflation basket are moving in the right direction >> we just don't know how much of it is really deeply ingrained

still. it all comes back to that argument, whether what we're seeing is because of the reopening and supply chain issues and maybe some labor shortages around the country or whether it's because we just, you know, we were like drunken sailors, the fed and fiscal authorities. if that's the problem, how do we get back to 2% is that really possible, for the fed to orchestrate a move back in inflation to 2%, and how high would we have to go to do that >> yeah, that's a great question i think the answer is we have to slow the economy more. things are still too hot if we look at the job market, still incredibly healthy, still more than 10 million jobs open and that's a problem certainly good for the consumer and an argument for consumer pending to be healthy here but at the same time, it's not helping the inflation problem that we're having. so i think, you know, the jury's out as to whether the fed's going to be able to thread the needle and slow the economy just

enough not to push us into a recession. but as the fed has said, it's certainly possible we might. in our view, if we do, it's likely to be mild, partly because everyone's been anticipating a recession for the majority of this year, and companies have been acting accordingly in many cases. so there are a lot of excesses built up out there >> those two big legislative pieces that we passed will tack a lot more onto our bill, although they argue it's going to reduce the deficit. will that fuel inflation or help inflation, the chips act and the inflation reduction act? we've got about 30 seconds, brenda, sorry. >> sure. a little bit of both it will provide jobs, but those will be hard to fill at the same time it will raise costs in some cases. we could have a neutralizing effect at best it could be potentially a little bit inflationary >> very good, brenda, thanks, on a monday, i don't know, maybe

you were like, monday, i'm not really sure, but you showed up, and we appreciate that andrew, you did too, final check on the market. we're down about 330 points. crappy start to a week down almost 200 now on the nasdaq we're going to do it again tomorrow and you'll be there, andrew? >> i'll see you tomorrow morning, sir >> we'll be here >> make sure you join us good monday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber nasdaq prices are surging. a busy week of tech earnings of course fed chair at jackson hole on friday s&p and nasdaq each ending four-week win streaks. >> meme stocks w