good morning welcome to "squawk box" here on cnbc we are live from the market site in times square. i'm rebecca quick along with melissa lee. we will get you through this let's take a look at what has been happening with the u.s. yektsz at this hour. it is not a great picture s&p futures down by 25 the nasdaq off 190 this is coming as we see a couple of concerning stories the first is the lockdown that melissa mengtioned lockdown of 21 million people in china. we will talk about the implications for that. you are seeing issues with chips and some companies are not able

to sell to china the machina. the major indexes now with the dow down 200 points that is the continuation of what we have seen for the month you are talking stocks for the month of august down by more than 4% across the board nasdaq was the big loser down by 4.6% if you look at where that brings us, the dow is off 14.7% the s&p off by close to 18%. the nasdaq down by more than 26.5%. those are the declines from the highs. you had a really strong six weeks or longer than that the last two weeks were enough to lose all of that and then some >> and the notable thing with august is it was a selloff across assets.

it was terrible fortr treasurie. for gold and commodities as well as equities. that was interesting >> all of the things, the 2-year treasury was the highest since november of 2007 if you want to look at treasury yields 2-year treasury is up again. 3.475% after closing yesterday at 3.495%. again, you are still looking at the inversion. a lot of talk from jackson hole that you mentioned fed is raising rates significantly. the market is paying attention to that. >> we went over 3.5% in yesterday's session. think about where we were one year ago a year ago yesterday, we were at .13%. we've gone to 3.5% in 12 months. >> that is rapid fire. >> rapid fire. markets don't like that. shares of nvidia falling after the company revealed in

the s.e.c. filing that the u.s. government is restricting sales in china telling nvidia about the license requirement for china and honk c kong the new rule applies to sales in russia >> paying customers. >> yeah. that is an interesting thing amd confirmed to cnbc it received new licensing requirements from the commerce department, but not cause a material impact to the business. amd is the higher valuation of the two. the impact there and bringing down quarter forecasts because of this. that is the impact we're seeing this morning down 5.4%. let's stick with china a developing story city of chengdu with the

lockdown of 22 million residents as it launched covid testing it is the largest city to be locked down since the covid crackdown in shanghai earlier this year. in the last hour, media frrepor from sweden will state volvo will shutdown their car plant. if you think about the gdp for china, 1.5% is from chengdu. it is widespread >> we will talk to eunice yoon coming up. from what she was saying in the last hour, it sournds like they will allow the factories operate if it is a factory where people live and work at the same time the shutdown of the 21 million with reference of new york with 8 million. 700 cases. no sign this is letting up with the lockdowns w slockdowns.

the supply chain issues will not go away if you continue to have lockdowns in china. >> when we see the light at the end of the tunnel with things improving with the supply chain, this under scores the fragility. >> it talks how from us strast frustrating for the central banks. they are trying to fix the supply chain issue they can't fix those things. they can only curb demand. if you are going to have the continuous problems coming and the supply chain has to be frustrating to figure out how you fight inflation. we have a political update mary peltola is the first native american to represent alaska in congress after the special election to fill the late

congress member's don young's term this ballot system will also be used in the november elections she defeated sarah palin what is a candidate in the november election for the full two-year term in the house. executive chairman michael saylor is charged with evading taxes. the suit alleges the strategy conspired to help avoid paying taxes. under his leadership, the company spents close to $4 billion acquiring bitcoin of the average price of $30,000 the suit accuses saylor to reside in florida or virginia which has no or lower income tax. he claims he lived in d.c. and a penthouse apartment or on the yacht on the georgetown

waterfront the lawsuit includes several screen shots from his facebook page referencing the view from the georgetown the balcony robert frank will join us in the next hour with details >> i read the document this morning. lawsuit. it is about 16 pages from the pictures they got from his facebook where he was saying on the way to work and view from the apartment. that didn't seem to be quite as compelling as the case against micro strategy the cfo at the time counted the number of days saylor was in d.c. he said we will not continue to pay you and send you to the address in florida that puts the company in a position of peril. as a result, he cut his compensation to $1 he was taking benefits from the company. use of the private plane which totaled more than $1 million what they seem to have from the

cfo from that point is the most damning thing. the cfo said we can't do this. saylor changed compensation as a result i don't know how this plays out in court what was filed against him and the charges i read this morning, that will be the more difficult thing to get around. you can say this was a facebook post and not actually living there. >> it could be from anywhere >> right or if this is your yacht and in the river is it on the georgetown waterfront or in virginia you know, the river there is on both sides none of that was as compelling as the evidence they have from -- i don't know if it is testimony from the cfo or documents they found that is the tricky part. they said it was more than $25 million. they are also looking for trouble damages in a situation like that. it is fairly significant we will wait to see what evidence they have from the company and the cfo and how he

counters. >> if the cfo statements and if they were made by email or deposition or whatnot, were a warning -- >> could be. it's a different story looking through it, the stuff they found on facebook doesn't prove your case. particularly saying i was there sometimes and other places other times. it is what they have from the company. however they got that will be what this hinges on. >> unless they are looking for a story and eye candy and show pictures of the yacht and maicro trat strategy pays a fine. the futures right now starting off the plumonth on a weaker tone. s&p futures down 25. nasdaq off 121 we will get you ready for september trading straight ahead. later, david rubenstein will

join us to talk taxes and inflation and much more. you are watching "squawk box" and this is cnbc >> announcer: squawk ceo call is sponsored by truist wealth where meaningful relationships matter most. 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. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay.

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take a look at futures after

closing out a month of august with the s&p down more than 4% we are looking at a lower open down 26. nasdaq looking to be off 25. joining us now is jeff mills and ann berry. good to see you both jeff, i'll start off with you. we seem to be on the same schedule with burning it on both ends of the candle what do you expect for september? the ecb meeting and fed meeting and the 2-year treasury that breached 3.5 >> we talked about the 2-year last night on "fast money. that is important because what it means multiples are not goin to be supportive for the market. i think we need to see a proper bear market in earnings growth we haven't seen a relating at least to the magnitude we are going to see what that means is the 2-year

treasury continues to press higher the 2-year treasury never bought the fed pivot. if you look at the interest rates and pe, it is quite high higher interest rates. lower pe we see a gap pe expanded the past couple months as the 2-year treasury pressed higher higher level since 2007. i think as that gap compresses and pes come down and you see the deceleration in earnings growth that is the issue now and the end of the year. >> we have not heard too much of it what many investors expected to hear during earnings season was slowdown in corporate spend. we got a glimmer of that recently and particularly the other morning when they said we are seeing caution and hp as well from their conference call. the caution with the corporate buyers we see this entering the period which is volatile. you add to the mix and brew with a lockdown in china of a very populous city that makes up 1.7%

of chinese gdp do you feel like these are things that finally the markets have to factor in and we are headed for a period of lower pe? >> i think we are definitely looking at a period of pe and valuation which is lower which is a close issue with cash flow and companies trading in the tech space which are not degenerative we have slower corporate spending and consumer spending, the market will pick and choose more aggressively the companies with clear execution plans and add value with the more cantense >> i don't want to use the word scary, but how scary, jeff, is the lockdown of chengdu? we thought we were through the worst of it. the company started talking about improvement and supply chain during earnings season

now the lockdown here. it underscores the notion at any moment, the manufacturing hub could be shutdown. >> that is exactly right why does the market rally in june and july? it is the fed pivot as inflation started to peak. if you put down in the minds that inflation is a problem with the supply chain issue, it will embolden people's mine is. you have peaking narrative you have a labor market that is still overheating for backlack better term. they want the fed fund rate over neutral. there are plenty of ways to rate that you are talk about 3%. given what we see in china and they want to be sure they have

inflation under control, you are talking about a 3.75 or 4% rate for a while. it will take there for a while >> ann, where do you find safety in this market if we are headed for lower pe >> trying to look for a little bit lacked volatility. a couple of areas i'm looking at are insulated. disney being one of them and becky mentioned that earlier. what they are doing with the content and commerce and merchandising with the value combined that is very attractive. that is likely a core business funding for the long term and through recession. it is also part of the underpinning why i'm looking at paypal and general motors. the legacy in tech and autos with the cash and wherewithal to invest

in this case, tech and trend with evs coming into next year the hybrid safety. >> jeff, is this narrative they kept technology relative safety? should that end with rates being higher >> i don't think so. look, i think we are probably closer to the top than not especially in long-term interest rates. i do believe this safety in earnings is consistency and free cash flow. i keep talking about this over and over i think investors will pay a premium for that as it is clear the economy is slowing down and we see earnings relating for-forto 2023 you will see the google and amazon and et cetera over the next quarter, that is what the market is going to prefer >> jeff and ann, great to see

you. thank you. when we come back, two big media stories are the radar this morning, including a new membership plan for disney we have new details on ad rates for netflix. both of those are off this morning. netflix off 1% >> announcer: today's big number 85%. that's the share of major housing markets that saw a decline in home prices last month according to mortgage software firm black knight july marked the first month over month deliver in nearly three years. more power for your workout gear. this is smarter sensing and dispensing. fully optimized cleaning, no more guessing. getting the best out of everything that goes in. ♪♪

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walt disney is exploring a streaming package and theme parks and merchandise. that is according to the wall street journal it says the program would be similar to amazon prime. it says disney executives referred to it as disney prime, but that won't be the name officially the program could help sell merchandise to fans of the shows and give more information by collecting data. disney has talked about adding perks to the membership program to third parties like discounts to disney shows on broadway. cross packaging? a separate report shows netflix is looking to advertise on the ad supported tier they met with ad buyers last

week netflix is seeking to charge advertisers $65 for reaching 1,000 viewers. that is a higher fee than most other platforms. netflix is planning to sell 15-second ads and 30-second ads compared to 18 or 23 per hour for traditional tv >> less is more like two minutes they are talking about in the services that introduced ads to this point how many tolerance will you have from netflix streaming who have gotten used to this? you are charging more for what you are costing on the streaming and other competition. >> i wonder what the selling point is for netflix to say and do this? they have collected data on what you like and how much time you spend on the platform. >> and if you will be willing to tolerate the question is the kids we have no problems watching

ads. you think about the kids they are impatient with these things. >> exactly coming up, we'll talk about the resurgence of meme stocks and the so-called free trading platforms for investors. nothing in hadlife is free as we head to break, a look at the s&p winners and losers >> announcer: executive edge is sponsored by at&t business at&t 5g is fast, reliable and secure but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find the right wireless plan for you. so, you can stay connected to all your drivers and stores on america's most reliable 5g network. that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws

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(sirens) (news report) good morning welcome back to "squawk box. we are live from the nasdaq market site in times square. the futures are continuing from last month last month, down across the board for the all of the averages that is the case this morning with the futures dow down 1132. s&p off 36 and nasdaq off 15 this comes after china is locking down 21 million people in chengdu you are seeing pressure around the globe. we will talk about this later this morning and pure storage shares

rising after beating estimate and revenue. issuing revenue guidance that revenue is up 5%. shares of nvidia falling after the guidance in line with expectation. the carbon monoxide noted bus company noted the problems shares down 14%. that stock up 16%. right now, let's get more on the trading action of bed bath & beyond that stock is volatile the company is the best or the worst performer in the s&p depending on the day or hour trading has been done by retail investors on platforms that offer zero commission trading. a new study out that shows no fee trading is not what it seems

and it may cost investors billions a year. joining us is one of the authors of the study christopher schwartz the finance professor at university of california irvine. chris, this grabbed my attention. you put your own money at work executing trades and did them simultaneously across five platforms. you found very wide differences in terms of what you ended up getting for those charges. i guess it is proof there is no free lunch >> good morning. i apologize about my voice, becky. you are correct. we basically -- what happened is we are doing another study and opened a brokerage account and decided to do another in parallel nothing related to this. after the first day, one account lost $150. the other account made $12

it led us to the rabbit hole you talked about where we placed 85,000 trades for $17 million for five months at six accounts. we found the very best broker lost about seven basis points on a round trip trade you lose about 70 cents. the worst broker, you lose 46 or $4.60. the spread was almost 6.5 times the cost. >> that's shocking there had to be reasons behind that what did you find? >> well, you know, the s.e.c. would say it is payment for order flow we found there was no relation with payment for order flow or execution. to give you an example, our number one broker has payment for order flow, but number three and number five broker with best execution in terms of price

don't have payment for order flow what we found was essentially the market center when you place a trade, it goes to some other market center. basically, the centers were giving different prices to different brokers. we had two trades to the same market center at the same time and they get different prices on a consistent basis. >> chris, what did the brokerages say when you reached out to them? >> you know, all of them said that there's different -- each broker has a different value for order flow if i'm a brokerage and i have one person buy apple and one person sell apple, that's great. they are cross the two trades and make profit. if all of us are going out and buying bbby at the same time, that is an expensive order flow for the market centers

ci citadel probably didn't want to fill orders for bbby we got the order flow different for different makers. >> when i read the study when it came out, i was maamazed there are costs behind the scenes you used the different brokerages e*trade and fidelity and robinhood and td i don't know who the other was among the reporting, it didn't say who was the best or the worst. why is that? >> we do name names in the paper. >> okay. tell us. >> of course i figured you would ask. we're academic we don't like to trade and talk. the number one was td. they had the best execution. >> amazing who was the worst? >> interactive broker was the worst. >> wow that's a really big difference

do you think there's any chance this changes what the publication of this or, you know, i just feel like okay, that's a huge add for any of the companies doing it that's a big shake and it makes a difference in how much investors are paying over the course of time. >> so it is important to note we are looking at one reason you might trade with brokers if you think the execution is -- >> what? >> it could be latency. >> mobile app. a lot of reasons why i'll take the one that gives me the cheapest trade >> to give you an example. you can't trade crypto on td, but you can on robinhood you know, for me personally, you hear about best execution. i think for me when i had the

two different ones, that led to the question what is best execution if i have two accounts and getting different price execution. i think from us, the s.e.c. wants to do changes to market structure. you have to be careful you never know what the unintended consequences are, but certainly i can't think of any other consumer finance product where costs aren't up front. if you get a loan, is up front a mutual fund. here, we say it is free and people think it is free. it is not free costs are different depending which broker you use >> it sounds like the message to the s.e.c. is that payment for order flow is not the problem. i caught whatever you had, chris. excuse me. pfof is not the problem. if you paid for the trade, does it give you better price

>> if you pay commission >> trade you were matching free trades throughout was there any matching against somewhere where you paid for the trade? did you get better execution >> back to the earlier point we had two accounts. they had a pro account, but charges commissions. they have a light account which has payment for order flow but does not charge commission that was the fifth rainked of th sixth. >> the one where you did not pay was sixth? >> interactive brokers performed poorly on both accounts. did they give you a reason >> they have not reached out i guess they will tell me they are not after retail traders that is my guess they have not reached out.

>> okay. chris, anything else you took away this is not what you were setting out to prove with the research you found it along the way >> yeah. it was a happy accident as bob ross would say you know, i think always in the consumer space you have to be careful when someone says something is free, it is not free this is a case where things are not free certainly in this case, you know, not only was it not free, but execution differences were different. my hope is disclosure changes. it shouldn't take losing tens of thousands of dollars to find this out it should be publicly available so everybody knows how much they are paying for their trading >> agree 100%. thank you for bringing this to our attention and hope the authorities are listening. thank you, chris. >> thank you, becky. when we come back, new lockdowns in china

more than 21 million people in a major manufacturing region are being told to stay home. eunice yoon will join us live from beijing right after this. apparently, 7700 cases caught this shutdown. and david rubinstein is with us to talk the fed, inflation and much more. as we head to break, look at the currency board this morning. "squawk box" will be right back. >> announcer: currency check is sponsored by interactive brokers. the professionals gateway to the world's markets.

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welcome back u.s. equities looking soft to start the month of september this after the worst month in august since june. s&p looking to lose 30 at the open dow off 163. we have a developing story this morning new lockdowns in china in a major manufacturing region we have eunice yoon with the latest eunice, good morning >> reporter: good morning. the southwestern city of chengdu imposed the stay at home order for 21 million residents the city is an industrial base for big companies like toyota,

intel and apple supplier foxconn. producing ipads in that area the city also accounts for 1.7% of chinese gdp the authorities have said that they will allow factories to operate as long as they are in a closed loop system which means that workers have to live and work on the premises now this chengdu lockdown is the latest of the covid controls for factory hubs and ports the port cities imposing a targeted lockdown. residents in the factory hub urged not to leave the city. port city shenzhen has gone through four testing rounds this weekend. it looks to continue this is all coming at a sensitive time for beijing when the leadership is expected to gather here in the capital about six weeks from now they will be deciding who is

going to be in power expectation, of course, is president xi jinping is taking the precedent setting third term for another five years the authorities are prioritizing stability. they do not want anything, including outbreaks to become a disruption for the political gathering. the lockdowns are coming at a time when the economy is in a tough spot not only because of the struggling property sector and because of the poor consumption, but factory activity the pmi from the private survey shows manufacturing shrunk in august at 49.5%. that is sysimilar to the officil pmi as well. we did have some good news on the covid front. i don't want to be totally down all the time hong kong has said that they are going to now play with the idea of a reverse coring team

they got early support to allow anybody who is interested in coming to travel on business to china to potentially isolate and quarantine in hong kong first and enter quarantine free on the mainland which would be a big deal that is not something we have seen so far. >> eunice, what is your issue of the area with the companies to continue manufacturing at this point? >> reporter: i think that just asi we have seen in other citie, chengdu authorities would allow the closed loop systems. that is actually a good thing. in theory, the factories will be able to operate. they need to make sure workers are able to stay on site and live and work there. i don't know how long, but they could stay open. the problem, we have seen across

the country is when factories are open, they cannot source things there may be trouble in other places within the country. if they don't get the right material, they can't actually produce it and also the southwest in chengdu with the power cuts and drought and dealing with a host of other issues right now truckers, too, have been in short supply so it's really challenging right now for the factories, at least in theory, they will be able to operate. >> eunice, we understand things are better in the supply chain that is what we hear on some calls. what do you hear there and what do you see there >> reporter: i think it really depends on the industry and the moment i think that for example even in chengdu, a couple of weeks ago, people would be more concerned

about the power cuts and things improving because temperatures were starting to come down and it looked the power rationing would not be such a big deal now we have this outbreak which is only several hundred cases, but it has been on the rise. suddenly the whole city is in lockdown you know, that's going to suddenly impact the factories there. it is really kind of difficult to tell what the situation and how the situation is going to be >> all right eunice, thank you. eunice yoon in beijing with the latest on the covid lockdown in chengdu. when we return, we get the latest on tesla as the company launches a legal battle to sell cars directly to consumers in louisiana. you can get the best of squawk pod on your favorite

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at the tesla filed a lawsuie able to sell cars directly to consumers in louisiana what do they do in louisiana if you want to buy a tesla right now? >> you have to order online and go out of state. that's how you get it. the real issue is they've been trying to service those vehicles in the state this is a challenge tesla's had going back to the early days when it decided not to use third party franchise dealers that auto makers around the country use. they wanted to sell directly, sort of like an apple store to go in and deal with the company directly this was a key to elon musk's vision for the company. >> there were lawsuits like this

before, and how were they resolved and could that provide a road map to what could happen in louisiana >> some states have strict laws against direct sales, others do not. tesla figured out a patchwork of stores across the country. in states like texas they prohibit direct sales. they could set up galleries where people could come and learn about the car. they might look like a showroom. you couldn't buy it there, and then customers would be directed online to buy the cars out of state. and that's kind of the model that tesla has been using around the country. they are figuring out ways to sell in places like louisiana, then the state of louisiana passed legislation to close a loophole to block direct sales, so the state was trying to clamp down on these things, because it gets to generations of support for these franchise dealers who go back to early days in the car

business where the manufacturer was using that leverage to hurt their businesses so these rules are kind of dating back generations ago, and elon musk is saying, hey, the world has changed. it's time to break up these trusts, if you will, and allow new companies to sell directly to customers to own that experience >> are there more states like louisiana which are trying to fight the tesla way of doing things at this point >> there's a handful it's interesting in michigan a few years ago, there was a similar case to this ultimately, they were able to resolve it in a settlement that allowed tesla to continue to service these cars in state, but through kind of an intermediate subsidiary that was sort of a fig leaf over the issue. the challenge for tesla is, they can figure out ways to sell cars to people in these states, but you've got to be able to service them that's very important to keeping those customers long term

>> yeah, there's only so much that an over-the-air software update can do. i want to get your take on the twitter lawsuit and where you think w think elon musk stands at this point. it seems like he has sort of given up on the fake accounts narrative and has switched gears using the whistle-blower testimony. what do you think? you probably know him better than most other journalists out there. >> it's going to be hard, this whistle-blower case is going to be hard. nevertheless, it's clear that he's looking for a reason to cause some chaos here, right and ultimately, i think a lot of people believe he's trying to get a low er price i back that up by saying just a few weeks ago at the tesla and shareholder meeting, he talked about his vision for what he sees for creating x.com, his idea of a super app, how that

could be at the center of it suggests he's still in love with that idea of twitter and there's a lot of similarities between the way he's talking about twitter as product as being a super user and the way he was in the early days of tesla where he was thinking about the product and the way he wanted to make the cars he was a buyer of luxury vehicles and kind of knew what he wanted in a car, and you really saw that in the development of the model s which hit the markets in 2012, and then the model 3 so many years later that's really made the company into what it is. so youcan see him wanting to tinker with the product in twitter just like in tesla >> always great to speak with you, thanks. tim hagen, "wall street journal. let's take a look at oil price this is morning, because futures are down, so is wti. take a look at this. it's the lead story in the "wall street journal" this morning, how energy prices have been done more than 8% for wti for the

last two trading sessions. that continues that weakness once again this morning. wti down by 2.6%, all the way back to 87.24. remember crude oil prices on monday closed above $97 a barrel this comes as global markets are waking up to the idea of a recession on the horizon something that they are looking at, that's why you see weakness in just about every one of these asset classes. that lockdown in chengdu, a city of more than 21 million people, has to be putting pressure on this as well if are you going to see lockdowns in china with the zero tolerance policy for covid that is correct will put some crimps in it. when we come back this morning we're going to take a closer look at the jackson hole selloff to get you ready for september plus, michael saylor accused

of tax evasionna was in washing d.c. the stock right now, take a look, is down by about 1.5%. in tfutures off by close to 160 potshis morning. stick around "squawk box"la be right back p makes trading easier. with its customizable options chain, you can stay on top of the market from wherever you are.

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the dow, the s&p 500 and nasdaq are all riding four-day losing streaks. we have a look at what to watch in september micro strategy chair michael saylor in hot water with the d.c. attorney general over where he lives and where he pays taxes. that story is coming up. and californians are being told to raise thermostats and avoid charging electric vehicles if they want to avoid rolling blackouts. we have a debate on whether they are moving too quickly to ban the sale of gasoline powered automobiles. the second hour of "squawk box" begins right now good morning welcome back to "squawk box" here on cnbc, live from the nasdaq market site in times

square i'm melissa lee with becky quick. joe and andrew are not here, but we're g we're glad to be here with you it was rough for the end of the month. this morning we are looking at a lower open of 25 points. nasdaq looking to be down by 111 and the dow by 139 the lockdown in chengdu weighing on the picture as well as the fed and the ecb. take a look at treasuries. a rough month for treasuries we had mentioned the cross asset correlation. the two-year note off the 3.5% it touched in yesterday's session, but we're still high, 3.487. and the inversion is pretty deep 3.198. take a look at oil slower growth. concerns about growth, concerns about a recession. we're seeing wti down by 2.5%. brent is also down by 2.5.

meantime, getting to that developing story out of china and maybe the reason why the markets are lower this morning the city of chengdu announcing the lockdown of its 22.1 million residents. it is the largest city to be locked down since earlier this year in the meantime, let's get over to dom chu with a look at this morning's premarket movers. a lot of red arrows this morning. >> there are a lot of red arrows and some of them are fundamentally driven by earnings stories. we'll start with hormel. one of the biggest losers aed of t ahead of the opening bell. earnings fell just shy of estimates. revenues are slightly better the full-year is mixed some better. some worse overall, hormel is dealing with cost pressure, other issues as

well so hormel foods down 4% right now, watching that trade play out for the s&p 500 stocks also watching what's happening with the fallout from yesterday's news on nvidia it will be restricted by the u.s. government from selling certain computer chip, high-end once geared more toward artificial intelligence and machine learning towards customers in china and russia. that ar there's not a lot of business with russia right now. but nvidia is one that would be impacted those stocks down. nvidia said it would be a $400 million hit to revenues. kla, on semi conductor they're moving lower in sympathy with some of the nvidia and amd-related chip stocks.

and bed bath and beyond downgraded to a neutral rating on the heels of its strategy eck update the analysts over at raymond james say yes, the strategic update helps the liquidity position at bed bath and beyond but they think it is kicking the can down the road and refer to it as abysmal. down 5% right now, becky i'll send things back over to you. >> you know what i forgot? >> what's that >> you know what tomorrow is >> what's tomorrow >> friday. but what kind of friday is it in it >> it's a job friday >> ding, ding, ding. we're going to get pretty important numbers, given all the talk we've heard from the fed. >> it's not just that. what's curious right now is the jobs picture seems to be dictating so much of the

federa fed rate hike narrative. you're hoping that it continues on the trend, but if you see commodity prices, everything else moving to the down side it's really just the jobs market showing signs of inflationary pressure then those jobs mean a lot more. that means when you go over the jobless claims data at 8:30 a.m. eastern time this morning , it's going to be one of those catalyst points. as a newsperson, i'm, sited aboutexcited about these numbers. i always look forward to jobs friday >> we will watch for that and see you a little later thanks, dom. >> you got it. august, as you know, was a rough month for the markets. we'll talk more about the markets now and what september could bring.

sylvia jablaunski is ceo you know what's interesting is i feel like the equities market and bonds market are telling you different narratives going into the close of the year, the ten-year yield and two-year yield, the degree of inversion what is a narrative you believe in at this point >> yeah, good morning, melissa it is interesting, the two sides are submit if split if you look at equities, it looks like we're going to get the soft landing or slight recession. i think that there are so many factors that are coming into play it feels like daily whether it's shutdowns on covid, oil and gas.

there's a lot of uncertainty in the market and hard to call it in terms of what's going to happen my suspicion on a couple of things is that globally, centra bankers are slowing things down. on the other hand, though, you do have wage growth. you have the consumer that can continue to spend. you have inflation that has likely peaked. you siee things coming down like durables but jobs is the main issue jobs are too hot two jobs for every person who's unemployed and until that starts to ease we're going to be in a short-term period of uncertainty. but with markets like this there are still a few thins to do. one of those is to have a disciplined strategy of dollar cost averaging overtime and playing the long game here in the short term, it's a little bit too hard to call it. >> dollar cost averaging into what sorts of stock?

can you go strictly defensive like utilities utilities are pretty expensive right now compared to its own historical pes where do you go for safety because you're going to pay for to if you want to go to those traditional safe havens. >> yeah, and that's a great point, so i think that in terms of longer term, so i'm saying post 2023, maybe we get that year-end rally maybe we get that classic 16% jump in an election year i'm looking at the old amazon, apple, google. a lot of companies will tecontie to invest in technology to find what they can't find in a person with a robot you need it for cloud, cyber security we're going to automate our way into the future and that's going to play out over time. i don't mind holding apple for a decade most people do you can look for those

opportunities if you have cash on the side. to your point, utilities are expensive. health care may be expensive but pays you aive d dividend along way. >> all right, silylvia, thanks. still to come, michael saylor accused of evading $25 million in taxes by saying that he resides in florida while actually living in several homes in and around the d.c. area. and later, californians are being told to raise thermostats to avoid charging electric vehicles if they want to avoid rolling blackouts. this comes as the state looks to transition to all-electric vehicles in just 13 years by 2035 we're going to debate the plan and find out if the golden state will become the brlackout state. plus an exclusive interview

with david rubenstein. we'll be talking markets, inflation and his new book on investing. "squawk box" will be right back. o it, put your knees into it. that's too smooth. too smooth? watch this. ♪♪ you try it. ♪♪ better. ♪♪ oh, you gotta move your feet. charles. alright, alright, i'm going. i'm going. at fidelity, your dedicated advisor will work with you on a comprehensive wealth plan across your full financial picture. a plan with tax-smart investing strategies designed to help you keep more of what you earn. this is the planning effect.

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latest robert >> good morning, melissa robert saylor started filing taxes as a florida res tent about ten years ago. bought a house in miami, changed his driver's license and voter registration, but according to the d.c. attorney general, he actually lived in d.c. in a 7,000-foot penthouse he bragged about the illusion of living in florida to evade d.c. income taxes what is very unusual about their case is that it did not come from a tax audit but instead from a whistle-blower complaint that targets wealthy tax dodgers and gives big rewards to the whistle-blower also suing micro strategy, saying the company filed false returns on behalf of saylor. the lawsuit claims he avoided over $25 million in taxes to d.c. it's seek up to $100 million in

taxes and penalties. saylor's claiming florida is where i live, vote and is the center of my personal and family life i look forward to resolution in the courts micro strategies saying the claims are false and an overreach. and this is surprising given how careful florida tax residents are. and micro strategy is based in virginia, not spending too much team there >> why is this a lawsuit filed by the d.c. attorney general >> that is a great question. the other interesting part of that is that the legal standard for this whistle-blower false claims act is much higher than a normal tax case. in a tax case f, it would be upt

saylor to prove that he did not live in d.c., that he spent much of his time in florida in this case, there's a much higher b hi hi higher burden of proof on prosecutors. it's a very different legal standard tan w and it will be interesting to see if the d.c. attorney general has enough proof from the security guys and pilots who had his locations, whether that's enough proof for the court >> trying to figure out the drop in micro strategy stock and they are a suing micro strategy stock for conspiring they transitioned to a new ceo, there's no risk for him being removed as ceo, could there be a risk for being removed from the company?

he is the founder and the visionary in terms bitcoin strategy and if he is found guilty of this, is there a risk that he could be forced to step away entirely from the company? >> yeah, i think the stock's reflecting two risks one, as you say, he was the face of this company. he was the face of bitcoin promoters, and i think any sort of damage to that brand further damage to that brand is going to hurt the company, bitcoin, everything that they've done at micro strategies the other piece as you also mentioned is that micro strategy is a party in this case, and they apparently have lots of documentation that prove that micro strategy basically said to saylor, holook, we'll help you file this false return, but in return you have to turn your salary into a dollar a year instead of the millions a year you were making. if there is a direct financial impact to micro strategy as a party to this case that could also hurt them at a time when

bitcoin is falling >> all right, robert, thank you, robert frank still to come, california officials telling residents that bra blackouts could be possible. are they putting the electric cart before the horse when it comes to legislation that will only allow electric vehicles to be sold in the state by the year 2035 we'll debate that issue. up next, though, apple facing headwinds ahead of its first in-person iphone launch since the pandemic we've got the details next "squawk box" will be right back. time now for today's aflac trivia question. what year did azamon buy whole foods? the answer when cnbc's "squawk box" continues is that a goat?! you talkin' about me? gaaaaaaaaaaaap!!! i think this goat is saying “gap.” must be talking about the expenses health insurance doesn't cover. so who's talking about the money aflac pays to help close that gap?

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b now the answer to today's aflac trivia question. what year did amazon buy whole foods? the answer, 2017 amazon paid $13.4 billion for the upscale grocery store chain. apple getting ready to bring the world the iphone 14.

but at the time, the company is facing some headwinds. steve kovach is here and has moreon what's happening. we've been talking about all morning the chengdu lockdown where they do produce some of theipad issues, too. foxconn operates there, so you have to add that to the list >> that's another headwind, becky. this is going to be apple's first in-person launch event since the pandemic this launch is coming, what cook called a quote, cocktail of headwinds. inflation, foreign exchange, all that, supply chain snarls in china. you know the picture we've been talking about this the last few months. but still demand for the iphone is strong and apple reportedly shifting some production of this new iphone to india earlier than it usually does. that's going help with the supply chain issues. four new iphone models, the so-called regular iphone will get the big max size for the

first time, and they'll squish the facial recognition sensors to a smaller cutout. and the new apple watch reported to have a new design, the first major redesign a lot of them are calling it the apple watch pro for extreme athletes also, ios 16, lots of new features there the most important being apple pay later, a buy now/pay later and i message, you can edit and unsend them. and then the rumored subscription program you can package in music and apple tv plus and storage. >> you mentioned unsend

messages does that actually ever work >> yes our todd hazelton has been testing the beta, and it works you can edit, it has a little note that it's been unsent or edited, but yeah, it works >> it works as long as the other person didn't see it before you decided to try and edit it >> exactly if you've ever used slack and somebody sends you a message and edits it later, there's a little note that says it's been edited but you can't necessarily see what's been changed. >> i also heard there are new colors coming to the phones. that never really touches my attention, but the cameras >> that's something they always improve. some people don't even call it a phone anymore. it's a camera that can also make phone calls. that's always the first thing they look to improve there are talks that it can shoot up to 8k video, which is more than you and i need, but it

becomes a replacement for traditional video cameras. >> by the way, like your jacket today. >> thank you still to come this morning -- >> was that a suede reference? >> i did see the suede reference yesterday. >> too early for suede too early. >> a little. >> seasonally appropriate. we do have an exclusive interview coming up with the carlisle group's david rubenstein we'll talk about what we're seeing with the lockdowns and supply chain and his new book that focuses on some of the best investors out there. we'll see what lessons he might have learned he's a pretty great investor himself. we'll see what he might have learned from speaking to all of them right now as we take a break, let's take a look at the futures. the dow futures off by just over 100 points that's off the worst levels. we've been down by more than 160 points in the last hour. you're also going to see the s&p

down by 18, the nasdaq off by 78 so the lousy trend continues end of august, we've already seen four days down in a row for the major averages will this be a fifth we'll wait and sigh. u'ay tuned yore watching "squawk box," and this is cnbc ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq

californians are being told to turn up thermostats and not charge electric cars as officials warn of possible power shortages amid a heat wave where rollin r rolling blackouts are on the table. this comes after a policy to ban gas-powered cars by the year 2035 so is the policy putting the electric cart before the horse we are joined by brookings senior fellow david victor. also derrick morgan. you can't really make this stuff up to be having these warnings issued literally a week after the state is pushing for more electric vehicles, in fact no gas vehicles to be sold in just 13 year time

derrick what do you think? >> i think you hit the nail on the head it's ironic and aen whatting sa warning to the rest of us it is about twice as high as my state of virginia. and reliability issues are going to get worse the california energy commission put out a statement that said by evs by 2030 would add 8% to at that% t 25 sprs% to the grid. >> i had people call me a boomer last week when i said that their grid isn't up to the challenge they've already got the most electric vehicle sales in the country, 16%, but the idea that you're told you can't even buy a gas car there s that being smart?

not having diversification >> they're going to have to pay attention to investing in the grid we have an old-fashioned power crisis when you look over the future, exactly as derrick says, you're going to have to invest in more. i think it's actually feasible to do. california's had some really, real little ambitious goals like phasing out sales of new gasoline cars in 2035. it may very well be that they'll have to stretch out those goals. i would see those goal right now as a first draft and they're working really hard to see what's feasible and then adjust them >> what about the point that their prices are already twice what they are in virginia. they have wildfires set in some case, the reports have shown that this infrastructure goes back 100 years it needs to be replaced and replaced now

>> that's true to the whole country to some degree some of it is renewable power. some of it is that land prices are really high in california. everything else is very expensive in california. so i think right now we have a shift to nor amore and more renewables there's a whole lot of work going on to show how you can have a lot of renewables, not 100% but a lot of renewables and also keep the grid reliable. but we have to focus on that and invest this those technologies and put them into place. >> derrick, you look around and these problems are not unique to california this summer we've seen it in china where they rely on hydroelectric dams, and there's been a water shortage, a drought that's hit the area. or you look at europe and the incredible reliance on what they've had to this point as cheap russian natural gas that they are using as a real weapon

against them right now if you look anywhere at a reliance on one particular form of energy you can get in a situation like this. >> i think that's right. and i would push back intelligently on that, that there's not evidence that renewables are responsible to some degree. in the energy bulletin that went out, they pointed out that solar panels will not be as effective from 4:00 to 9:00 p.m. so they're asking people in that time frame not oo us to large appliances, not to charge hikt electric vehicles, turn off lights and not set the temperature to under 78 degrees. >> california's not doing the green new deal the green new deal is not really what's on the table here and the core problem right now in the power crisis in california is demand is massive, because we have a heat wave.

han the core problem is the total volume of electricity that can be generated he's right we need to be careful that we don't overinvest in any particular source. we need to invest in wind and gas powered power plants that don't cause any big emissions. i'm a big fan of keeping the nuclear plants open if we can do that in a responsible way. that's true in europe, they were too reliant on natural gas the plan for this is diversity but we have to find ways to cut emissions. these emissions are causing global warming, and that's part of why the demand is rising quicker than we originally expected >> let's go back to theiris idef price. what needs to give is this a position where the state needs to spend more?

and of course the state would be doing that by raising taxes on the taxpayers. >> the california grid like the grid in virginia and essentially all the rest of the united states is run mainly by private companies that are regulated what they need is a clear, long-term signal about where to head i think those signals are actually coming into place one of the most important results in the modeling studies in this new grid of the future is that the grid is very capital intensive f companies have a clean signal about where to head they're going to invest a lot of capital and amortize that. and that will keep prices from going up to unacceptable levels. >> when i talk to private industry about whether they'd want to get involved in the california issue, the answer is no if you're going to make these investments, you're not going to be able to raise rates to the point where you'd make money even to a lodge ng period of ti.

>> that's right. we've been sending signals to the energy sector at large, that they just don't want investment in traditional fuels and that's a huge mistake. because it does lead to overreliance on renewables and i think about california's proposal to ban the sale of internal combustion engines, why would you put all your eggs in the electric basket when we'd be dependent on china we'd put ourselves in a situation hike like europe, whis not only overrelied on renewables we need in the united states, robust energy, all of the of would. agree with david, nuclear power can be a part of the solution as well even california's understanding that so while they talk about 100% net zero and all the rest, they're also relying on some

traditional fuels, including extending diablo nuclear power plant and recent bill that went through that allows some funding for traditional fuels. so david's right in that regard. we need to have all of the above. and let's have investors be able to make investments that make sense for consumers. >> this is not just a grid problem. if are you looking at electric vehicles it's beyond that. there are problems with trying to mine for nickel, an essential item needed for electric vehicle batteries. it talks about how, look, there's pushback in minnesota where they're lacking to create an additional nickel mine, and none of the neighbors there, including a native-american tribe, want this is to take place there because this isn't a company that's had a great track record of making sure they're environmentally sound. it creates a problem to get to some of these ev standards that

have been set >> that's true for the entire energy revolution or transition tass' as it's often called the whole thing is dependent on many metals. nickel, lithium, cobalt, copper. good old-fashioned copper incredibly important and so now that the industry's started to see some signals about the need for additional supplies, you're seeing efforts to exp expand more mines. ed we haved we have we have to . the california rule is not a rule that we have to ban all vehicles there may be hydroelectric vehicles and other types of technologies so i think it's really important to have diversity and really important to recognize that we're kind of in uncharted

territory. so we need to give space to figure out what's possible and be ready to adjust the rules and i'm concerned that it will be harder to adjust the rules politically, and that's going to be crucial >> harder to adjust the rules, meaning step back from the first draft they put out >> exactly and california has a history of setting very ambitious goals and then figuring out what's possible and right now we've got to be not only paying attention to goals and working on it but also recognizing that we may have to step back from some. >> yeah, it's hard to -- >> well said >> to david's point of wanting diversity but banning 99% of the vehicles on the road now doesn't make sense why we would make to electrics, both for vehicles and in the homes. you know, we didn't touch on that yet, but los angeles and uc berkeley and other localities in california are saying you can't have gas or natural gas appliances in your house either. this is really lunacy that we're

putting all of our eggs in the electrification basket >> maybe this is a first draft and probably not really realistic. thank you both for your time today. >> thank you >> thank you, great to be on coming up, new data in tomorrow's jobs report expected to show a shift. and check out futures and how we're going to kick off the month of september. nasdaq down by 66. a little bit better. follow squawk pod yonou favorite podcast app and listen to us anytime. stay tuned

the august jobs report tomorrow will add important data to a quickly-shifting market the market is significantly loosening into q4? >> no. i know there are headlines about layoffs, but that doesn't tell the whole story. what needs to happen is demand to cool enough so workers can be

found at the price they need more than 11 million open positions, about 11 million more than expected. job opening rose in about every category but manufacturing demand for workers is still stubbornly high. what happens now the supply of available workers isn't getting bigger, that means wages probably get higher. hires and unfilled ownpenings don't get splashy headlines. no business wants to get caught flat-footed heading into q4. so demand for workers is probably going to stay unusually high, even with the turbulence, melissa. >> things are changing so quickly, john, isn't a lot of this data old? >> well, on the other hand, there is evidence the labor

market is loosening quite a bit. all those open jobs were from july, that's kind of a month and eternity ago since the end of july the market's now lower the adp report show companies slashed the pace of hiring to almost half the level of july. almost three out of four of those jobs were in leisure and hospitality. the summer's over. conditions were shifting quickly in august. snap said it's cutting 20% of employees, so is bed bath and beyond robinhood cut 23% in august. peloton made a 20% cut earlier this year. best buy cut hundreds in august, too. most of this is happening because of weakening demand. what's the fed saying? a lot more rate hikes ahead to further weaken demand. the labor market is loosening for real right now won't see it in the data until a month or two, and then we'll be looking at the holiday sales

>> jorn, thank you when we come back, david rubenstein will join us to talk about the markets, inflation, and a book he has written interviewing some of the best-known investors out there we'll ask him for lessons and tips that he may have picked up, even though he's a pretty great investor himself let's check out this morning's premarket winners and losers caesar's is leading the way on the upside, up by 1 .1%. "squawk box" will be right back. d some vans in your life. you gotta rock these. air max 90's. we got some new balance. hokas, crocs. yeah! ♪♪

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take the xfinity mobile savings challenge and see how much you can save. switch to xfinity mobile today. welcome back, everybody. we have a special guest with us for the next half hour let's welcome billionaire investor and philanthropist, david rubenstein he has a new book out next month called "how to invest, masters on the craft." he interviewed lots of wall street luminaries for the book, including names we know around here, larry fink, stan druckenmiller, these are all people we know pretty well, too. but this is particularly interesting to have you speaking to these investors, because you do there is for a living, and yd

it pretty well >> thank you some of the interviews had to be done virtually because of covid, and i know a lot of them and have done some work with them, but i got to talk about their backgrounds and what made them tick and figure out what it is that makes someone a great investor versus an average investor >> what did you find >> generally they are from nice families, not from poverty-stricken families but middle class families. good at math, pretty good students, like to read, like to be in control, make to make the final decision and go against conventional wisdom, which is what make them great if you went with conventional wisdom, you'd be like everybody else >> going against conventional wisdom, what are some examples of that where some sigged where ot somewhere others s.a.g.ed.

>> one made roughly $20 billion. mike novogratz got into crypto early when people thought it was terrible he made a lot of money and holds a lot of crypto. so those are good examples of people going against conventional wisdom. >> what's an example where you went against conventional wisdom and it served you well >> i started a private equity firm in washington, d.c. people said you can't start a private equity firm in washington because it's a government city. >> if you're not following the lobbyists, what makes the difference why is it good to be there >> because we've started in washington, we were able to say correctly, i think we understand companies heavily affected by government aerospace, telecommunications companies, maybe we have a better understanding of those than people in new york did. at least that's what we said and think it was probably true

>> what about habits of successful investors anything these people have in common >> yes, they're workaholics. nobody nine to five. these are workaholics, and for these people, investing is not work, it's pleasure f if they weren't making the mone they'd still do it they love it >> you mentioned going against the grain, against conventional wisdom what do you think the conventional wisdom is today in this economic backdrop and what would be going against the grain be in your view? >> remember, a famous statement, conventional wisdom is almost always wrong but the conventional wisdom is that we are teetering into a recession, we might go into one,

we might not probably you should be nervous about the equity upside. there's not likely took lot of equity upside in technology stocks or crypto or thing like that if you're bullish on crypto or technology, now's the time to get in and maybe a year from now you'll look very smart >> are you bullish on crypto or technology >> i am bullish in the sense that i think the greatest fortunes are made when people go against conventional wisdom. who knows where crypto's going to be, but right now crypto's been beaten down probably if you go into this, and not just crypto itself, but i've invested personally in the companies that surround the industry, not just crypto itself but companies at that serve the industry >> you mean like the coinbases >> those type of companies they have not actually done that well lately. they've been hurt by crypto decline. but in time i don't think it's going away members of congress are not going to push to regulate this

industry unduly in my view crypto is very strong in congress, they tend to be republican, libertarian and red' to spend on lobbying one i spoke to puts a fair amount into political contributions and i think the industry is not likely to be soft in dealing with members of congress i think they're going to be fatherly aggressive and i think members of congress will act by not pushing regulators to do more than they're already doing. >> is that the secret? following the lobbying dollars is cash king where you're aggressive? >> take aerospace defense. the defense puj etbudget peoplee been saying it's to high >> a lot of companies were scooped up during the deep, deep

crypto winter, were you along for the ride >> i'm not an investor in the things that he did, but he did put a lot of money in some, some of those bet he says probably won't pay off but some will. and he was trying to shore up the industry a bit, and i think he did a pretty good job of it >> when did you invest >> i've invested in a company call ca calledp paxos i think the industry's not going away in part because young people tend to have the kind of intelligence and energy to kind of get trends started. so it isn't people in their 70s who say let's go into personal computers or smartphones are going to be the future it's really people in their 20s who make things happen right now it's the crypto people

moving this thing forward. i recognize crypto and all the questions about it, but i do think some of the brocklocks ch investments. >> you looked at some, including glenn youngkin >> glen youngkin left to become governor of virginia and who knows may be president one day cue saun lee, i recruited. very smart eaperson the board unanimously decided that we would like to go in a different direction. and therefore we're going to go in a different direction

bill conway who started the firm with me is the interim ceo and can do it as long as he wants. but we will make a decision soon on a permanent new ceo >> what's different direction? what's different >> well, we're going to make sure that many people in the firm continue the culture that we've built. we have a certain culture that we've started in the beginning and want to continue that culture. our numbers last quarter were very good and we have no challenges that are going to make us nervous about the future we're in pretty good shape, and i think bill is a very, very good steward for this period of time i like cue >> what's different about the carlisle future? >> carlisle future is a very collaborative culture. one where people work together quite collaborately over the years. we tend to have a one-carlisle

culture. people work together and that's the culture that we've started from the beginning, and we want to continue that culture. i wouldn't say we didn't have it under queue, but that's something very important to us the next ceo or could be co-ceos, i don't know, will probably continue that culture >> david rubenstein is sticking with us. we have a lot more to talk about with him coming up at the top o the hour, including the lockdowns in china, how that could impact the markets and what the fed has been saying the latest read on jobless claims, we'll bring you the numbers as soon as they cross. plus rick perry on europe's reergy crisis, esg and much mo stay tuned, you're watching "squawk box," and this is cnbc i. 'cause when you save more, you can “no way!” more. no wayyyy. no waaayyy! no way! [phone ringing] hm. no way! no way! priceline. every trip is a big deal.

good morning pointing to a fifth straight day of losses for stocks our guest today, david rubenstein and chip makers under pressure after the u.s. restricted sales of certain chips to chchina. we'll talk to rick perry as the final hour of "squawk box" begins right now

good morning, everybody, welcome back to sk"squawk box" here on cnbc we are live from the nasdaq market site in times square. joe and andrew are off today, but we are joined by david rubenstein, and we're going to get back to him in just a moment here he is waiting for this. let's look at the u.s. equity futures at this hour the very first trading day of september is looking a lot like the very last trading days of august dow right now only down by about 40 points after being down by more than 160 points earlier in the session, and the s&p down by about 11 right now nasdaq off by 60 points. if you've been watching treasury yields, they are continuing to

crime. the three-year at 3.475% ten-year's up, too, well below the two-year and then you've got energy prices under pressure all week this is the lead story in the wall "wall street journal" this morning about how wti is off as people worry about the demand picture around the globe it's down once again this morning by more than 1.1%. melissa in. >> making headlines this morning, share of nvidia falling after the u.s. telling nvidia about a new license requirement for future exports to china including hong kong. the company expect it is could lose $400 million in potential sales to china the rule also applies to sales in russia but nvidia says it does not have paying customers there. amd saying interest chips would

be impacted by some of that as well but it does not believe it would cause a material impact. another headline, the city of chengdu announcing a lock down of the 22.2 million residents as it launched four days of city-wide covid testing. the largest city to be locked down since shanghai earlier this year let's get to dom with the movers >> we have late-breaking earnings movers, starting with campbell's soup down over 2% premarket, just around 4,000 the results were helped as a key measure of growth that strips out currency and acquisitions remain positive for the meals and beverages division as well as snack foods it's been a relative winner so far this year. you've got share of signet jewelers the jewelry retailer behind

namesake stores as well as kay's, zales and others. and then we're going to end with a drop of shares of sienna roughly 40,000 shares of trading volume after the computer networking equipment maker missed profit and revenue estimates. sienna did say it continues to see stronger demand interestingly from its customers but that its sales continued to be impacted by supply chain issues down 10.5% i'll send things back over to you. let's get back to ou special guest this morning, carlisle co-founder david rubenstein he has a new book out. we've got you here today

so we're going to interview you and talk about what you see happening in the markets right now. >> clearly the markets have affected by the fed's statements the fed might give some idea that maybe next year they would reduce interest rates. think j. powell's statements in wyoming for the time being we don't expect any cuts in interest rates, probably another 50 basis points in each of the next several meetings of the fomc probably no cut early next year but probably no big increase either i think the markets were depressed by that. i think the markets were anticipating maybe that by next year he would say early on we might reverse what we're doing, but that doesn't seem to be the case >> expecting the fed to come to the rescue once again. we hear the story this morning, chengdu, a city of 21 million people in china shutting down because of 700 covid case there. this is an industrial city where you have foxconn operating

intel, lots of big multi-national companies and a lot of manufacturing taking place. and i think this has got to be a pretty big jolt to the markets it's the supply issues that have been causing all these problems with inflation, not demand >> when the market gets an idea inits head it runs with it for a couple days. the market right now is saying china is showing down and chengdu lockdown is emblematic of that and i think the market will overreact as it often does to this kind of news yes, they've had lockdowns before this is not going to be helpful to the chinese economy but it's not going to make the chinese economy itself go into recession. >> i'm thinking about the broader supply chain issue a large part of it is because of the supply chain issues around the globe. it's not a situation where, you know, demand is the problem.

the fed has this blunt instrument where they can beat down demand. we can't really fix the spupply chains >> it's a challenge, no doubt, but i expect tomorrow there will be positive news out of china and all of a sudden the markets may react differently. any given day there's going to be so many things happening in china. the fed is serious about inflation and serious about getting it down and therefore are going to keep interest rates high and as a result economic growth will be slower than people would like. but it's not clear thatter wouldwo we're going into recession our indications are 1% to 1.5% gdp growth in the third quarter. if that's the case it might reduce some of the recession fears in the market. go how

>> how are you viewing china right now, the political risks of doing business in china over the summer you told investors, what has changed now? have things gotten worse >> there's no question that china's a more difficult place to invest than it was a year or two ago. it will continue because of the chengdu factors and the regulatory factors i think some of the large companies waiting for ipos to occur like bytedance are probably going to be able to do something more positive in terms of liquefying some of the investments that have are will been made. but remember, president biden is the first president to not meet with the president of china in his first year in office for quite some time. and i now know they're going to be meeting not too long from now for the first time when

president xi finally leaves china. he hasn't left in two years, but i think they'll be meeting in asia not too long from now. >> but relations between the two counties have gotten worse and worse over the last few years. >> the relationship is very poor t can poor >> it can't get much worse, short of something happening in taiwan i think the chinese do not want to go to war with the united states they have enough other challenges >> there's been an implosion in the property market in china the real estate market was a huge force there's a recession in europe basically with the energy crisis going on where are the best opportunities? are you taking a look at all these distresses and saying those are praiselaces we to be? >> when markets are going up they get in, when markets go

down they get out. they should do the opposite. it's probably a good time to buy thing because prices are depressed. prices will come back as they always do. >> using europe as an example, are you investing in europe? >> carlisle is a large investor in europe. and we've been a presence there for some time. we wouldn't say that europe is a place you should avoid investing. you've just got to recognize that prices have to be lower than would you be paying a year or so ago >> i read a report that millions of britons are going to be brought to the poverty level because of energy prices the government's going to have to step up with tens of billions of pounds in order to prevent. >> it's very interesting many people i can in britain is what would the vote be today if you had a vote on brexit and most people say it would be roughly the same, even though almost everybody in britain

feels that it has hurt britain, its economy. if britain hadn't gone forward with brexit, i think they would be in be in bet areter shape now. >> although inflation is pretty horrible on the continent, energy and how beholden they've been to putin. >> we thought the sanctions would have a big impact, it hasn't bbeen the case we thought taking away some of the energy usage from europe would affect his ability to pay for the war, but it turns out he's making more money than he's ever made before because energy prices are so much higher that he's in relatively good shape. so europe has the no not been ao figure out how to deal with

putin. so europe has got to make a transition from dependence on russian gas to other kinds of sources, and this'sat's going t take some time >> are you filing eeling like y on the precipice of a great investing opportunity? simultaneous recession >> remember, the greatest fortunes are often made in the investment world when prices are down and people run away and can you buy things cheaply the fund raising market is a little challenging because people are comingba be back for funds quicker than they used to. it used to be you'd come back avenu every four years the big investors doesn't have quite as much money as they used

to have. >> is that a yes things are going to come down more, right? is that the view >> when you try to wait for the market to go to the bottom, you're never going to invest, you're never going to time the top or the bottom of the market exclusively well if you miss the bottom of the market by 10% it doesn't really make that much difference. >> but did june 1 of6 feel like bottom to you? >> probably so but there could be events in washington, d.c. i never worry about the bottom of the top you can't just make the investments and hope they're going to exit in three to five month. we look to things differently as traders. >> is it starting to turn because you have so many businesses that can you see the line on? >> it's tough to get people to

go to work these days, both to show up in the office, that's another big challenge, but many people -- >> what about carlisle are you all back to the office >> we want people to be back to the office, but when i walk through the offices, you don't see as many people as you used to see people aren't coming back as much as we might would like them to come back i think they will in time, but right now people are staying home and working remotely. >> and the jobs report we get tomorrow, you don't anticipate it's going to show any real weakness in. >> weakness >> i think early next year you'll begin to see some improvement in the economy generally, and i think the markets have digested this they've digested what j. powell is doing and eventually they'll conclude that prices are down, they're not going much lower >> what investments do you see as the greatest opportunity right now?

>> health care is one of them. when i worked in the white house under president carter before either one of you was born, at that time it was 7%, now it's it 1 21%. as we all age we need more health care. that's a big sector. next one is fintech and crypto-related funds, all things making it easier to pay for things, get money, borrow money. that's another gigantic area in my view. >> you pointed out that we've gone from 7% of gdp to 21% of gdp in health care we've seen amazon say they're getting out, berkshire saying we can't fix this mess. >> amazon got out of that particular health care, they bought another health care company. they're going to stay in health care because they realize it's an important part of the american economy when people get wealthier, what

do they say? i'm having a good life, i want to live longer, what do you do you eat better, chexercise and t better treatment >> you know what else people do when they get wealthy and look snarn around they think i want to buy a sports team. are you going to buy the nationals? >> there's no doubt that i feel that i'm one of the few people in private equity that doesn't own a sports team. i say, look, your investors are not going to take you seriously. but i was wrong. i've looked at it. i'm from baltimore, as you may know i live in the nation as capital, so i'm interested in sports, but in my view, i should have been a better player than i was i peaked at 6 or 7 years old.

at 5 or 6 i thought was going to be a professional baseball player >>the pure investment, and then there's the ego part of it >> it's hard to invest in sports and lose money. >> you make your money when you sell the team. in nfl you make your money all the time because it's so profitable in baseball you tend to make your money when you sell the team but some of the teams have gone up dramatically in value the red sox were bought by two individuals and they've made a great fortune on paper they're not going to sell, but it's a very valuable property and they're using it to do what i think will be done in the future baseball teams combine you'll see more of these platform december aals. people are buying soccer teams in england and they'll go

public >> this is a profit-making potential enterprise if were you to get into the major league baseball, not something where i think of you buying the magna carta or fixing some other piece of americana >> it's not the highest profitability thing i hope to be doing in my investment career, but i do think it's not something i'm doing to lose money. but if i do it, i do think it's profitable it's down the road it takes a long time to make money, because these baseball teams don't make as much money as you might expect and they make their money on the sale and there are a lot of challenges in baseball the sport has had challenges that football doesn't have, for example, the age poping populatn that attends the games >> it sounds like you've put a lot of thought into it, and it's interesting, because this is at a time when sports rights, the rights to broadcast, et cetera, are very high. there are so many customers who want these sports rights >> of the 50-most-watched tv

shows, other than this show. >> obviously >> 48 of them were sports shows, because people love to watch sports, and they can see the action live, and so i think it's a good thing in the fite now i >> who are you talking to? i'm trying to think of other people in washington who you might be friends with who you might be talking about combining things with, the capitals, the wizards? >> ted leone is a very talented business person. it's been reported in the press that i do know him so he's a msmart guy. >> that's not a no, but not a yes. >> what's your next question >> we're going to leave it there. thank you very much for coming in today and we want to repeat the book that we got to talk about in the last segment, too. "called how to invest, masters

on the craft", coming out next month. you've seen investor books before, people we know well, great investors, but you haven't seen them interviewed by a great investor himself, david rubenstein, and that's what you're going to get in this book that comes out next month. you can catch paula valants. i will be sitting down with them september 28th in new york can you go to delivering alpha.com to register. david, thank you for coming in >> my pleasure >> sure you don't want to talk about ted leonsis? one last chance. >> i'm happy to be here and bring some affirmative action to the show today >> all right, thank, you, davi. check out this morning's biggest premarket winners and losers

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the nation's auto makers rolling out monthly sales. >> they are not good, the expectations you can't sell what you can't build, and right now the auto makers are struggling to build up their inventories we've talked about this for some time, and as a result, what you're going to see when we see the sales numbers come in today, and we're basically going to see the foreign numbers. demand outpacing supply, but the average price in part because there's no supply close to a all-time record high at 46,259 in terms of annual auto tales. the sales rate is 13.7 million vehicles we are on pace for the first time since 2011 to have annual auto sales below 14 million.

bottom line is this. they have had limited production because of the chip and supply chain issues that we've been talking about for months, and their overall production and their inventory, wil let's justk inventory, below 900,000 vehicles tenth straight month where that inventory is below 900,000 vehicles you can't restock the lots if you don't have the vehicles to put on the lots. and that impacts sales been a rough couple years for the suppliers. think about the material cost. those impacts when you look at borg-warner and lear they are not going to be pretty numbers, but everybody's sort of expecting that, guys it's not going to be until early to mid next year that we start to see the inventory build up to a level where you see better numbers on a monthly basis >> phil, in the latest quarters from the auto makers, we sort of

got a glimpse that things were doing a little bit better in the supply chain in terms of chip supply specifically. and i'm wondering how we should think about this chengdu lockdown and whether or not that will impact the auto chips >> a little hard to say at this point, melissa, and yes, they are doing a little better when it comes to chip supply, but when i say a little better, i mean a little better it's not to the point where these guys are able to build enough vehicles to restock the dealerships. the supply out there, it's like 32, 33 days. in a normal industry, it's 65-70 days most of what's sold right now is sold in advance. you or i go in and say i want this particular model with this, this, and this, and they'll come back and say okay, six weeks, seven weeks. maybe sooner, but you're certainly not just going to go out there and say i want that one right there because it's got everything i need. you might get lucky.

odds are you won't >> all right, phil, thanks when we come back, breaking economic news on the nation's maybe market ahead of tomorrow's big jobs report. and a reminder, you can get the best of "squawk box" in our daily podcast. follow squawk pod on your favote pcariodst app and listen anytime. we'll a be right back.

we're just a few seconds away from weekly jobless claims, also second quarter productivity and cost data. we'll be watching the futures this morning which have improved at least so far in the premarket. you're talking about the dow futures off by about 87 points, half the halosses we've been looking at earlier this morning. rick santelli is standing by at the cme in chicago take it away >> let's look at initial and continuing claims, shall we? we're expecting a number around 248,000 on initial we best the that by a nice margin, 232,000. 232,000. that is the smallest number going back to june 24th. so the last week in june that is good news. if we look at continuing claims, exactly as expected, becky, 1,438,000. how does that stack up

1,438,000 is roughly in launch the last few months, you can see we're bunching up right in that area now non-farm productivity, second quarter final, final, minus 4.1. minus 4.1. you know, it wasn't minus 4.6, so that's an improvement, but i would tell you this. the first quarter of '22 was at minus 7.4 , the worst since 1947 the second worst ever, because they started keeping records on productivity in 1947 let's look at unit labor costs our second quarter final ends up at 10.2% 10.2%. not too bad. but we all know that productivity should not have a minus sign, and it's never nice

to see double digit unit maybe costs. there's a lot of excuses out there. there's anomalies in the economy. traders don't want to be scientists or mathematicians they take it at face value, and it isn't looking pretty as of late becky back to you. >> let's bring in steve liesman with his reaction to all this. what do you think? >> i think the job market remains very resilient you hear these stories of big companies laying off or stopping hiring but it seems when you have these low jobless claims they won't pop. we hit a new level in the 240 to 250 range, and we haven't gone above it what's happening is we have had shedding of jobs in places where perhaps there was overhiring in the pandemic

and what's happened is those folks maybe spent a bit of time in unemployment but seem to be finding jobs relatively quickly. on the productivity front, i get that traders don't want ph.d.s but it's a very complicated situation. we did have a surge in productivity at the early part of the pandemic. now we've brought back lower-wageworkers, lower productivity workers who had left the economy, and thattes one that's one thing driving down productivity. i wouldn't be coming to conclusions until we sort of get the job situation situated rick is 100% right about the unit maybe cost, something that fed chair powell is watching let's look at the fed funds outlook here we're now pushing, i'll call it near 4%. we made the chart, it was 393. now it's 394 for that peak rate

now. still see it now, but clearly fed chair powell had a profound impact on the outlook for the markets with his speech on friday i think that was the impact he wanted to have so i think he's sort of pleased. not necessarily with the market coming off, but with how the interest rate complex here has reacted. the their seriousness about battling inflation. >> steve, thank you. when we come back, former u.s. energy secretary rick perry, on why europe could be facing a very dangerous winter stay tuned yore wu'atching "squawk box," and this is cnbc

you might alreaw that prop 27 taxes and regulates online sports betting to fund real solutions to the homelessness crisis. so how will that new revenue be spent?

new housing units in all 58 counties, including: permanent supportive housing, tiny homes communities, project roomkey supportive hotel units... and intensive mental health and addiction treatment. in short, 27 means getting people off the streets and into housing. yes on 27. today marks the one-year anniversary of the implementation of two texas laws that barred any municipality from contracting with banks restricting gas or firearm companies. we have a look at how the story's played out over the last 12 months, leslie? >> it's interesting one as texas governor greg abbott put it at the time boycott texas and we will boycott you. it led to an immediate exodus of large wall street banks.

one research study found that the policy cost texas taxpayers up to $500 million more in the first eight months alone >> i think one lesson that states are taking away interest t from this is as they try to punish these financial institutions they want to not punish themselves our research shows this is harder than you might think and even a state that's as big and competitive as texas has a hard time filling the shoes of the leading underwriters when certain banks are punished over esg policies >> so perhaps it's not too surprising that some banks that have previously left have recently bid and won contracts in the state and none appeared on a list by the texas comptroller's office last week citigroup has gotten more active

in texas, not to the level they o once were. and j.p. morgan is considering going back to the lonestar state. despite the anti-esg measures, it can come at a cost. >> leslie, thanks. now for a closer look at energy policy and the european energy crisis, let's bring in former u.s. energy secretary, rick perry. thanks for joining us on "squawk box" this morning. >> you're welcome. >> you've been a long-time vocal opponent of nord stream 2 which is the pipeline that lies alongside nord stream one that is halted for maintenance. and the idea that russia could weaponize the energy can we but the that genie back in the bottle at this point?

>> i doubt it. we russian empire at a good place back two or three years ago when we had stopped the nordstrom 2. w nor stream 2 he's beholden to being able to move that product out of russia and generally speaking into europe so, at that particular point in time, we had, i think we had a good break on his aggressive nature and he's got a history of doing this you think back, you know, cutting off the gas to ukraine during one of their winter periods of time. and i will suggest to you, i'll make a prophetic statement here. he will do that again this winter with europe germany, and other countries that are going to be impacted by this i mean, this is a really dangerous situation that we've allowed europe to get into

american lng was being sent into poland they were able to send that across the european union. we had things in a great, i think, condition american lng was going to be able to replace a lot of those older-burning, inefficient power plants in europe, but as it is, they were shutting down the older plants, nuclear plants, relying on renewables, and they're going to pay a massive price for that popular position of we've got to get over to the renewable side, the green side of things in a massive way and do away with fossil fuels. >> obviously, we've seen the price of oil spike higher amidst this conflict, mr. secretary there is going to be a meeting of g-7 finance ministers today regarding a price cap on oil, so effectively setting a cap on the price of oil at which russia can secure insurance and financing for shipping that oil out so

russia would only be able to sell at a certain price or below. do you think that could work i mean, it seems like they will be able to find plenty of friends who will take the oil off theirnd h hands in other was >> government trying to set the market has generally not been a good look, and i think that's what you'll find here is that this is a global market. and the european decision-makers may float in there and try to send this powerful message of we're going to put a cap on this, and mr. putin, you will do what we say. listen, putin is his own guy, that's for sure. and he has had no interest in europe other than taking over territory. he will use everything that he has, you know. god bless the ukrainians for being able to push back the way they have against him. i think he was obviously very surprised at the strength of the

ukrainian military hopefully they can keep that up, and at some point in time he will recognize that europe is not his playground, where he can go and take over anything he wants, and american lng and american energy can be a part of that as we bring europe back to reality this that you've got to have a fossil fuel mix and a substantial fossil fuel mix to be able to keep your energy industry going which in turn will keep your economy going >> secretary perry, part of the problem with lng exports from the united states is the explosion that happened down in shreveport in the transportation facility for lng that's part of the problem when you look at this politically and see the enormous pressure that governments in europe are facing at this point, whether this coalition holds to support ukraine, i mean you talk about inflation being up

incredibly in places like germany, but also places like britain, and what that is going to do to their population, facing much, much higher energy prices this winter potentially will they still have the resolve to maintain this united front against putin when it comes to ukraine? >> yeah, let me back up and say that i think one of the bigger problems, obviously the explosion, the fire at free point was a problem, but the bigger problem is the permitting process. and, again, this administration, the biden administration, clearly sending messages, we don't like fossil fuels. we're going to break your habit, not only united states, but the rest of the globe, of using fossil fuels really bad strategy. and i think part of that is going to play into what could happen this winter in the european union if they have a harsh winter, we know they don't have the supplies laid into place you've got russia standing there

with their hand on the valve it could be a very catastrophic period of time for europe, because of bad energy policies both in europe and in the united states at this particular time and a despot in the form of putin standing there ready to take advantage of it >> mr. secretary, we've got to leave it there thank you for joining us this morning. still to come this morning, jim cramer we will check in on him at the nyse first, as we head to a break, let's take a look at this morning's biggest premarket winners and losers in the s&p right now, vulcan in the s&p right now, vulcan materials leading the way up b only at vanguard, you're more than just one and a third. we got this, babe. that means that your dreams are ours too. and our financial planning tools can help you reach them.

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let's get down to the new york stock exchange. jim cramer's standing by and jim, i know you have been watching what we've been talking about theis morning, the situation with chip companies being down the commerce department says they can't sell anything to china right now. and that is going to eat in, at least for nvidia, i think they said something like $400 million in sales it could cost them for this quarter what do you think? nvidia's been under pressure,

there's been a lot of bad news out there. is enough enough at this point >> they did report in the last quarter, after preannouncement guide down i remember one time think were 750 billion. i spent, i don't know, four hours on this thing since this came out with my associate jeff marks 400 million's right. after that we think there's going to be some mitigation. it's very important, an announcement that came out this morning, which will allow nvidia to do a little bit of a work around and be okay i still think it's going to be 200 million in the next hit. i think the stock is down correctly. there was no warning this was a very important shift for nvidia if it's not meant for the military, if it's truly meant for the, it is meant for games, but it doesn't matter. the most sophisticated chip in the world. but i would say this you count jensen out after this,

mak making a very big mistake. jensen wong huddled with his team this is very similar with what he had to do with ethereum where he had to make the cards where they could not use ethereum after the terrible decline in 2018 i'm not ethereum i'm not saying to buy nvidia today. i'm saying don't write it off. amd, the hit is less than 5%, so as people were selling amd, they don't. but nvidia is -- it's front and center that said, that is worth a great deal to the company. you could argue there's more than $20 billion in market cap and there you go, that's what you've got it's a terrible situation, but it's a great situation if you're trying to make it so that the pla is not as strong >> right jim, i know you did a lot of work on this i know you have more to talk about. >> endlessly oh, my god

this is a shock. this is a shock because they don't do any work with the military the end market is very benign. jensen will come with a workaround i am promising you that. >> all right jim, we'll be watching i know you've got a lot more to say about this we will see you in a little bit. don't miss "the morning meeting" because jim will go in depth with it. >> that's where we're going in depth. >> "mad money" tonight, conversations with signet and motorola solutions "squawk box" will be right back. a new way to transform our agency. strategy to execution. oh, looks my laces have come undone. a business card? yes, for ey. tech expertise? $2.5 billion invested. impressive. okay, you've convinced me, i'm back. just gonna... get this...

welcome back to "squawk box. twitter, tweets, that is testing the edit button. this happened about 12 minutes ago. you can see an edited tweet because we're testing the edit button we've been hearing about this good edit button for a while, i'm going the say may. >> to fix my typos >> or correct, you know, sometimes you'll get a number wrong or whatever it is.

>> a lot of likes. >> two stocks under pressure this morning campbell's soup, down pretty significantly last i saw, more than 6% after earnings and revenue matched estimates. the company made comments on elevated inflation pressure that seems to be spooking investors that stock is off by about 6.8%. hormel missing by a penny and offering a cautious outlook too saying it also expects higher operational costs to persist so that inflation outlook taking a bite out of both companies hormel is down by 6.1% joining us is victoria green, investment officer of cfg squared private wealth and greg hahn is the president and chief investment officer of winthrop capital management. this inflationary picture looks like one we'll be continuing to deal with, although the fed, greg, does sound like it will be pretty aggressive. how should an investor walk away from that message? >> i would expect two things -- the fed is going to follow through on continuing to

increase short-term interest rates. with that, we'll see a slowdown in the economy we're in that camp that we're going to see a slowing but we'll also see the curve invert, so we're extending durations on bond portfolios as we move out the yield curve to lock in yields we haven't seen in five years. >> victoria, you say right now the best way to be an investor is to be boring. you want to explain what that means? >> yeah. i mean, look at blue chips and cash flows, dividends pop don't. don't be chasing risk. shore up the portfolio we want sustainability of cash flows in a quality stock right now. the likelihood of a slowdown, there's only so much the fed can do about inflation, so many things outside their realm if you look at the earnings we're mentioning with campbell and hormel, it's because food prices and crop prices keep going up because we've had horrible weather across the globe, not just in the midwest in the u.s we're seeing where some of these fall yields are.

but you have crop prices still rising that means input prices are still going up while oil has moderated a little bit, it's still high in that 80s and 90s, putting pressure on transportation costs i think investors, it's too early to pile in everybody knows september is the worst month. that's where all the bad stuff happens historically and technically. september is down 1.25% on average. right now it's patience. patience and quality are key >> i thought october was the month we really had to be more worried about. that's where you see a lot of the big drops that come that catch people by surprise, victoria >> september and october on the heels of about august is not a very good time september, the fact we have a head and shoulders kind of built in and we bounced off that 200-day moving average i'm not very bullish october you have a lot of big dips but september you have the

fed and you have all of these other macro e vto vents that oc. summer vacation is over. we ul start paying attention again. there are a lot of headwinds that will be hard for this market to climb a wall of worry. >> greg, let me ask, there have been some positive outlooks. victoria mentioned oil prices coming down, down pretty significantly this week, down 8% through the first couple days and now already down another 1% or 2% this morning if we are worried about the potential for a slowdown, maybe that does bring down some of the inflationary pressures we've seen at least when it comes to commodities. >> oh, absolutely. i think we're going to see the year over year comparisons in inflation are going to start to decline. we'll still be above 5% heading into the end of the year, but the first quarter we should be below 5% that'll help be a buoy to the markets. right now the market is repricing risk it's trying to find a new normal with valuations and changes and expected earnings going forward.

so that's how we're looking at fair value on the s&p around 3,600. it's not the end of the world. this isn't run to cash, put your portfolio under the bed type of a situation. this is just -- it's painful, but that's what markets -- markets cause that >> what would you be telling people specifically to do right now? are there areas you like >> we're kids in a candy store drinking mountain dew in the bond market. when you can lock in in a 10-year portfolio, municipal, 4.25%, we haven't seen yields like that in a long time on the tax nlable side, for peo in retirement to be able to lock in a level of income that they can actually live off of now, is pretty appealing we're not to going to pick the high end interest rates. rates could still go higher. but we would take this right now because when the market does finally shift, it's going to be a powerful shift we've seen that time and time

again over the last eight years. the recovery is very, very rapid. >> greg, victoria, thank you both for being with us today it's really good to have you >> thank you >> have a great day. >> some improvement in the futures heading to the opening bell but we are looking at a negative open across the board great being here. >> great having you, melissa >> don't go anywhere "squawk on the street" is up next >> good thursday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber september begins and with it a selloff in bonds, metsals, oils, stocks, dow futures down 150 after four losingsessions. busy macro day with pmi on deck. nvidia and amd amd told to stop selling ai chips to china. shares take a hit at the open. >> and campbell'