folks who think that that might not happen, and in fact there was an indication tonight that suggests that his policies might not change president xi just announced that he is vowing stronger -- stronger state-led systems to have -- create break through core technologies. so another very controversial policy. >> eunice, thank you, eunice yoon in beijing for us that will do it for us here on "squawk on the street. "techcheck" starts now good tuesday morning, welcome to "techcheck," i'm carl in any event nil la, with jon fortt, and deirdre bosa. nasdaq seeing its longest losing streak since the pandemic began although the s&p and dow have turned around. why tom lee is still bullish. plus, the biggest deal of the year, probably not your first guess, why one of our guests cease to keep an eye on private equity this hour. investors looking for the

next read on tech demand, the latest ahead of a big product event for apple tomorrow and even more when we go to code with the ceos of apple, amazon and alpha get set to speak this week, jon. >> carl, let's kick it off, today's feed with the nasdaq in the red yet again. seeing longest losing streak since 2019 senior markets commentator mike santoli joins us to help break down the action. mike >> jon, the macro pressures remain across the market, hitting tech and high valuation growth, most profoundly. take a look this year at the u.s. dollar index compared to the s&p tech sector. pretty consistent inverse correlation, the dollar index moves are less dramatic but not only do you see them being mirror images but even in the shorter terms when you see dollar index hitting a new high, and then going on a new up trend, and you see tech weakening again. you see the dollar index flattening out here and a bottom

for mid-june and the last down leg here in the s&p 500, tech sector, new highs. global risk appetites on the decline, financial conditions tightening, all those are consistent with both strong dollar and weak technician to the basic bottom line fundamental input of international earnings, translating into -- that's a secondary issue. there's another gaim going on, what is and isn't a tech stock within the tech index. take a look at how ibm, apple and others have traded relative to the overall tech index. adp, ibm and apple adp and ibm have basically point to point this year been about the same stock apple has outperformed, they're not being treated as traditional tech stocks within the index the lower valuations for one thing, steadier businesses so you have this real bifurcation in the market.

apple is the most interesting example of this because it's so huge within the tech sector, and within the nasdaq itself, somehow it's diverging from the average stock there. financial attributes matter a lot more than sector where the earnings are coming from ibm incidental that it happens to be in the technology business right now. it's more of a contrarian value of restructuring type story instead. >> mike, i'm looking at the ten-year yield today which was above three, 3.5 at one point. what do you think that correlation is heading into the back half of this year usually, you know, at least for the first half of the year, tech stocks have really gone lower on the back of those rising yields. but are investors being a little more comfortable >> it's one of the bigger drivers of a general negative pull on tech stocks. it's never seemed to me to be the main one, but it has held the overall market in check, and what the nasdaq and tech have

been is -- an amplified version of the overall market. if the overall market got richly valued, growth and tech got more richly valued. you see a greater, more pronounced impact of things like higher yields and people being more concerned about valuations because of it in that context. so i'm not sure that we've gotten used to it. smont sure we've necessarily made our peace with yields at these levels but once you've had tech down as much as it is, it starts to matter a little bit less each tick in what the ten-year yield is doing. >> mike, prior to that we'll talk more in a little while. mike santoli joining us on set this morning. our next guest says he stale remains bullish. joining us this morning, cnbc contributor tom lee. thanks for helping us start the hour. >> great to see you, carl. >> you've done some work in the last couple of weeks, i know, at least looking at various components of cpi that in your

words are falling like a rock. it sounds like that disinflationary thesis is like sledding talking to your clients. >> i think the bar is pretty high for investors and markets and the fed to be convinced inflation's breaking i mean, part of it is because inflation is so uncertain that the market wants to have comfort it's truly vanquished before they think the fed can even consider being a little easier but i think one of the things that is giving us a lot of encouragement is when we look at the 70s to 80s, gasoline never had a drawdown, a decline of more than 2% on a year over year basis in cpi until 1982. we're already starting to see gasoline, as you mentioned, fall like a rock. housing, which has been the one thing that people consider quite sticky, and saying shelter could be inflapted through the end of next year, it's starting to roll

over when you look at the high frequency data 42% of the cpi basket of indices are deflating from their peak. that's a pretty huge number. so i think that investors should be encouraged that the price sort of impulse of rising prices, that's hit some sort of wall we think it's actually going to fall pretty quickly. >> yeah. that's interesting, although the fed's messaging, tom, has been essentially goods deflation doesn't impress us much. we want to see it reflected in wages. i wonder whether or not you thought friday's print on jobs, direction ally the sense was that it was moving in the right direction but then it got stam steam rolled by the nord stream headlines. >> there are other things that investors look over their shoulder, they see china, the russia/ukraine war, the energy crisis in europe so these are giving investors pause. but as a lot of economists note,

a lot of those impulses from europe rarely come back into the u.s. either as inflation -- they tend to come back as weakness if there is a down turn i think one of the things we should be heartened by even if you look at the employment data there is a pretty big gap between the household survey and the establishment. in the last five months there hasn't been any growth in full-time employment in the household survey so i think the job market is indeed a lot weaker than it appears. >> okay, tom, it's jon, good morning. what kind of data do we have to get heading into the holiday season when it comes to retail and the health of the consumer to keep the market from going down from here i'm curious what sort of signals are necessary for you to stay o optimistic >> well, it's a -- you know, in a way it's a half full, half empty setup. we know sentiment is pretty negative, and we know positioning now is similar to where it was, actually pretty

close to march 2020 lows, or even the gfc but there has to be a fundamental backdrop that supports investors willing to put money to work. to me maybe the biggest thing in the next three months is going to be the cpi reports. i just think we're under weighting how important the drop in gasoline has been gasoline has fallen huge that actually does flow eventually into core services through, you know, both bills and then the cost of travel and the cost of moving food. so the drop in gasoline, i think, is really going to show up as deflation later in services. >> so, tom, even though you're positive, you don't sound that positive on the markets. have you gotten incrementally less positive over the last few weeks, or no >> well, it's a -- i would say it just feels like we're still teetering on this cliff and investors are really nervous so i think the polls have to

prove their case but we've been trying to be led by what we consider to be leading indicators of inflation because we think that's still grounds, much of what will drive markets. the one thing that gives us comfort is the bond market is a lot more convinced about the fed vanquishing inflation than the equity market. if you look at inflation swaps, for instance, for the next six months -- first of all in the next two months if you look at inflation swaps we're talking de -- for the next six months inflation annualizing under 2% so i think stock market needs to be convinced of what the bond market is seeing. >> tom, good morning, it's deirdre. we've been talking to a number of enterprise ceos and the takeaway has been even from ones that posted strong earnings, like pagerduty, is that they were all seeing lengthening sales cycles do you think the market has priced this in, or could this be

another shoe to drop >> it's one or the other it's clear that business leaders and ceos have become more cautious, and that's why we're seeing the pmis weaken and hiring plans slow down but at the epicenter of all that is an abrupt change in monetary policy i think that when we look back, this is our expectation, this is going to look like the 1980 recession where it was almost announced on cue because monetary policy wanted to try to abruptly slow the economy. that's a pretty unusual policy sift by the fed. it's normally in other business cycles we have an overheated economy, incremental returns of invested capital are turning negative so the fed is trying to intervene. let's just step on thebrakes t slow things down i would say a lot of these cautionary moves by companies aren't necessarily because there isn't a demand

it's because demand slowed because of caution it's a little circular but i just think a lot of this can reverse when inflation starts to weaken. >> tom, i want to get your view on crypto. as the 120 bit correlation between bitcoin and the stock market, that's at all-time highs, what does that mean for bitcoin's trajectory as bitcoin remains under 20k? >> yeah, it's a great question i mean, i think bitcoin and crypto is still sort of reeling from, you know, those shocks that occurred earlier this year, that had to do with capital and other events and so, you know, there is an equilibrium being established. i don't think the thesis for owning digital assets has been destroyed. digital assets really do serve a pretty important purpose and really cut and reduce the cost and improve the access to banking for a lot of people outside the u.s. but this is going to take time i think the eth merge is a

pretty big event that's being closely watched. i would say overall i've been pretty impressed that crypto has hung in there because, you know, when people talk about economic, you know, like pessimism and the fed being tight and risk assets being, you know, something they don't want to tach, bitcoin has held in there. i'm pretty encourage. >> it has been sticky, around 20k, pretty fascinating. great start to the hour with you. thanks so much, tom lee. the nasdaq did briefly turn positive meta hit by a fine over its handling of children's data, the latest in the growing list of headaches for the social platform jewel a boorstin who has more on the story. i read in a note from one of the wall street shops this morning investors don't care when the

balance sheet has $40 billion on it, which has always been the argument and why regulation hasn't really done to their businesses or even investor sentiment. >> that's right. we haven't seen privacy crackdowns, regulatory crackdowns hit facebook's stock price yet but it is worth taking a look at all of these different factors as they add up, the latest being ireland, levying a $400 million fine against instagram, the investigation into handling of children's data, the investigation started back in 2020 meta responded, saying this inquiry focused on old settings we updated over a year ago and we've since released many new features to keep teens safe and their information private. this all comes amid a growing privacy push here in the u.s we are waiting to see whether speaker pelosi will schedule a vote on the american data privacy and protection act, which is the furthest along a privacy bill has gotten in decades though it is not expected to pass plus, the ftc, which just sued

data broker kochava is holding a forum on thursday to craft new rules on commercial surveillance and lax data security practices. in those rules it does -- likely to be challenged in court. the much more near term headache for meta and these other companies is the growing patchwork of state privacy law, california's age appropriate design code act, passed unanimously last week. if it is enacted it would require privacy by default settings among other things. all of this is distraction, and it comes as apple makes gains on both facebook and google according to a new study out just today from app-sumer. it found apple's ad business benefitted from the ios privacy update, while metashare declined metais working to adapt to changes, and working on privacy

changes. though u.s. regulation is not likely to change anytime soon, the scrutiny continues to rise. >> julia, all this makes me wonder whether we've been spending too much time concerned about government regulation and fines, and too little time on the dynamic where these tech giants are checking each other in their positions of strength you mentioned apple growing in digital -- just the ios change has caused the biggest market share and market dominance challenge in digital advertising than i've seen in a generation. >> absolutely. what's interesting is, we hear all these rumbles about regulatory crackdown here in the u.s. we haven't seen much action. gdpr, the big european privacy law, did have an impact, and we saw these companies adapt to that but i think when it comes to what's been going on here the biggest factor has been the actions that apple has taken, which are privacy focused actions. this question of how privacy-focused actions, whether it's by regulators or fines like

what we saw out of ireland or by the likes of apple are those going to change the way these companies operate? and, you know, we'reseeing meta trying to get ahead of it with some of the that i think so they're making around their messaging platforms. the question of scrutiny of privacy issues, that question is not going away. >> julia, fodder for conversation all throughout the week, it's code, that's for sure. still to come this morning, breaking down the most important deal of the year, a software buyout that could, quote, dictate everything in the current deal desert. that story is next. "techcheck" is just getting started.

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. here's a gut check on dropbox, shares moving higher this morning about 3.5% after bank of america initiated the stock at a buy price target of $34 a share. the firm's highlighting

dropbox's strong free cash flow generation, adding it has an attractive price to free cash flow ratio, which they say pretends strong stock performance during fed tightening cycles. stocks still down. holding up over the broader market. >> this is a stock that went public at $21 and has really just languished around that tight range for years. so interesting call there. let's turn to the broader m&a landscape. the most important deal of the year citrix, calling it a bellwether for financing markets as the fed looks to put inflation under control. joining us is cnbc contributor bill cohen bill, i loved this breakdown i know all of us are kind of focused on twitter, there's a huge equity portion of that. that's why citrix is so interesting. that deal was made in a very different environment than the one we are currently in. >> yeah, it was cut at the end of january when the fed still

was keeping interest rates extremely low, the tail end of the zero interest rate policy. but it's coming to market now, and interest rates are extremely different. the average high yield bond is approaching 9% from something like 4%. so all the pricing, everything that the banks committed to back in january is going to be tested now, and it's not only a test of how much the banks potentially could lose, it's also a test of how receptive the financial markets are to the deals that are stacked up behind it deals like nielsen and tenaco about to be priced based on what happens with citrix. this is a truly important moment one of the rare moments we get in the financing markets. >> at the same time, bill, this has effects for leverage buyouts and you could argue you're not seeing as many of those in the current environment and there's so much dry powder

the private equity funds are holding onto it may just lead to a different kind of deal, right? >> right, it might mean a lot less leverage, more equity i mean, it won't -- we won't get to anything like what perhaps the twitter deal, if it ever gets done looks like, which is, you know, three quarters equity which is close to insanity in terms of a deal structuring environment. but, you knows this is seven times leverage it's going to result in pricing that's going to i think surprise the market, and it's going to result in losses for the banks that committed to it earlier in the year as i mentioned nielsen, which is a buyout, and tenaco, which is an apollo buyout, both are going to be priced based on what happens here with the citrix deal. >> bill, give us a bottom line here, what does this mean for growth stocks right now, that some investors think might get rescued by private equity?

what does it mean for the ipo market as some might begin to test the waters of that? >> i think the buyout market is very, very -- going to be very, very shaky now until interest rates settle out by very, very shaky, i mean very, very few buyouts it's certainly nothing like the multiples that have been paid in years past, something like 11, 12 times ebidta, with, you know, this huge amount of debt, seven, eight times ebidta in debt that's just not happening now. and it's not going to happen until people have a sense of how far the fed is going to go raising interest rates as for the ipo market, you know, also quite dormant, perhaps with the exception of the porsche deal that's lining up now. this is not a great time for ipos, investors are not interested in that kind of risk right now.

this is a recalibration of risk across the board it's healthy, but very unsettling, too, for investors and for issuers. expectations still have not recalibrated back to what should be a proper risk management environment. it's going to take time. >> but if you look at bravo and silver lake they seem to want to encourage certain types of deals to happen, even if they're not looking to take many things out or everything out entirely so doesn't that provide some support to growth tech in the market >> yeah. i mean, again, these buyout firms, as you said, have a lot of dry powder. they've got to put the money to work but the question is, is when is the right to do that just because you have the money doesn't mean this is the best time to invest it, or to make deals. because it's too uncertain, both on the valuation point of view, what do you pay for these companies?

what will their companies boards of drirectors accept? you want to make the economics really attractive, and what are financing markets willing to provide right now? >> for the bank side of this i know in your piece you looked at this could be in the ballpark of a billion dollar loss for the banks that financed the citrix deal, but doing all cash deals how does that change bank earnings, can they earn fees as there is much opportunity to lend for the banks if you see more of these deals instead of buyouts? >> yeah, if buyout firms are willing to do all cash i assume you mean by all equity deals. you know, fine those deals can get done all day long i'm not sure the limited partners in those funds are going to be happy with the economics there unless it's a

huge home run. this citrix deal is going to be the bellwether for the banks if they lose a billion dollars or more the caution flags are going to go up this is not a great year to be losing that much money, even if it's spread across a lot of banks. this has been a real slowdown in investment banking and bonuses are going to be low. >> on top of a year where deal activity has been relatively muted, bill, thank you so much for being with us, bill cohan. speaking of deals am sop losing ground in the health tech game cvs announcing yesterday it reached an $8 billion deal to buy signify. cvs saying it would pay 30 to 50 per share, for signify after the stock price surged in august facing rumors it was seeking the sale and when amazon was among the reported bidders after acquiring onemedical for about $3.9 billion in july jon, pretty interesting, even amid headlines they continue to

retrench on some warehousing plans going into the peak selling season. >> yeah, i wonder, carl, did amazon really lose here? if they drove up the price for cvs, maybe that's all they wanted to do is make sure that other people aren't getting stuff for cheap. we'll see. we won't see, actually, we'll just have to wonder. looking for a read on what comes next for tech markets. aren't we all? we've got more on tomorrow's apple event in a moment. plus a whole lot more from fox media's code conference throughout the week with "techcheck" coming to you live from the scene starting tomorrow tim cook, andy jassy, a whole lot more don't miss it. how do we show strength and stability? (eagle call) a mountain? a tree weathering a storm?

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welcome back, i'm carl quintanilla with jon fortt and deirdre bosa the testing ground around 3900 continues to remain quite valid, we got back down there this morning once again but bulls managed to successfully test. we're back to 3922 but watch that obviously throughout the course of the next several sessions. news update with seema mody. the u.n.'s nuclear watchdog agency says this morning in a new report it remains gravely concerned about conditions at a southern ukrainian nuclear power plant under russian control. the iaea inspectors arriving there last week, the report lists damages at the plant and urges better working conditions for the ukrainian workers who continue to operate the facility. russia is buying millions of rockets and artillery shells from north korea to use in ukraine. that's according to a senior defense official who also tells nbc news the purchases indicate

russia's military is still struggling with supply shortages. shares of digital world acquisition corporation are down around 18% today the spac's plans to merge with president trump's social media company are being blocked by the sec. it needs 65% of all shareholders to vote for an extension, but today reuters reporting they're short of that goal because many of those shares are held by individuals and the company is having trouble getting enough of them to cast their vote. that's the latest, jon, back to you. >> seema, thanks. turning now to apple we are just one day out from the company's latest product event in cupertino apple is expected to announce a new apple watch, airpods models as well as four new iphone models, the iphone 14 lineup analysts and consumers alike keeping a close eye on pricing to see how the company is responding to supply chain uncertainty, higher inflation,

certainly versus last year guys, i would argue, dee, that price particularly by country important here because of the strength of the dollar, also how do they supply the low end devices? apple likes to do this thing where the cheapest one, we're out of that, but if you want to pay a couple hundred bucks more, get the new iphone and then release date by country is going to have a big influence on how that money flows in which quarter. >> yeah, tony sakanagi thinks they could rise prices by 10 to 15%. that will raise questions on a lot of elasticity. carl, i'm fascinated by the china question apple has gained so much in the wake of huawei's troubles, more than 70% share of china's high end smart phone market segment some analysts think there could still be some to gain there. so there's a lot going on in china, of course, the lockdowns, the economic troubles. will that consumer be strong will they want to upgrade? we'll see.

>> yeah, as they continue to release reportedly, jon, compress the space between production windows and various countries, namely india. but more broadly, i thought we had moved to a period where asps were not part of the conversation once you start talking about lifelong subscriptions and services revenue. >> yeah, well, how much they give people for trade-ins, how much carriers subsidize certainly a part of that i want to make a comment about what dee just said in china. gotta remember a couple years ago people were saying oh, apple is too late to 5g, everybody in china has a 5g phone, well it seems like apple perhaps was just on time. >> that's why i'm fascinated by this story they seem to be able to sort of do no wrong in china, when other companies, especially american ones have really struggled don't count out buy now, pay later, when people are upgrading their cycles, maybe their announcement will be an option for those looking to upgrade

buy now, pay later route and that will shake up that landscape which has been under a ton of pressure this year. >> perhaps. and in case you're not going to get enough of tim cook just from that apple event he's also speaking at code this week, along with apple's former chief design officer johnny ive. "techcheck" will be coming to you live frts conference starting tomorrow, bringing crow the latest commentary as it happens. a tough story to turn to this morning as we learn cfo arnaud died friday days after he briefed investors on the company's restructuring efforts, this is stock that's been swept up in the retail trading frenzy, as you probably know cou courtney regular began has more. the death adds to the company's turmoil. the board chair says the company's focus is on supporting his family and team, and our thoughts are with them during this sad and difficult time. bed bath & beyond is elevating

laura crossen into cfo i confirmed the various financing facilities announced august 31st with jp morgan and sixth street partners were finalized ahead of arnell's death. he was part of the team that detailed the updated strategy that includes large layoffs, store closures and the new financing. he joined in may 2020 during mark trenton's transformation, which included a large inventory overhaul much of which is now being reversed trenton had a number of e-commerce initiatives, including a revamped loyally program, same day delivery options and a partnership selling thousands of bed bath & beyond and bye-bye baby items on kroger's website the e-commerce strategy has faltered, sales down 21%, slightly better than the store sales trends but not much. digital comps fell 18% in the fourth quarter, compared to the prior year shares are down sharply today,

but important to note about 40% of the shares are held short, with very high volatility in this name, typically, an active involvement from the so-called meme traders as you mentioned there, dee carl, back to you. >> court, what a tragic set of challenges in front of that company right now. that's courtney regular began. "teche" bk teth, stay with usis a comprehensive wealth plan for your full financial picture. with the right balance of risk and reward. so you can enjoy more of...this. this is the planning effect.

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♪ interpliez software stocks getting tossed around in this market hashi corp. down roughly 15% after losing all its gains on the back of strong results despite meeting the street on third quarter and full year guidance the stock has lost two-thirds of its value since its ipo. joining us know ceo dave mcjanet. the results themselves impressive, revenues up 52% year over year, that's actually higher than the revenue growth the quarter before on the ground first, what are you seeing with customer demand in this multicloud environment even though the macro is iffy? >> yeah, thanks, jon, appreciate the opportunity. overall we're seeing this sort of slow trend towards cloud and ultimately multicloud. that really hasn't abated.

you can see we put up 52% growth quarter. on the back of a 50% growth quarter the quarter prior. on the ground, you know, despite what the stock market might be implying, you know, demand has -- we saw in q2 was very, very strong. the team's executed well. >> what do you do operationally and management-wise? what kinds of changesperhaps d you have to make that makes it challenging with compensation, perhaps even with the sales force, given what the stock is doing, even though the underlying business is doing well >> i think our general view is in the stock market's going to do what they're going to do. our job is to build the stronge strongest enterprise we can. we invest in the opportunity in front of us and really continue to stay the course obviously you saw we had a material beat on the eps side, which underpins the fact that we run a model where we are constantly validating our cost profile relative to the revenue growth

but, you know, given that we are -- we grew 50% plus the last two quarters, we really should be continuing to invest against that opportunity and that's why we have -- on the ground there's not a material change this shift to cloud is sort of inevitable, and the largest companies in the world are really very early in that transition what's really obvious to us is how disruptive that is to the software landscape when you go from the private data center to the cloud world, all these software categories get dislocated and reconstituted over the longer arc of time and you see that with companies like snowflake, and us at the infrastructure layer and so we continue to invest against that opportunity, candidly. >> hey, dave, good morning, it's deirdre. at the same time you guys are seeing an elongated sales cycle like many others and on the call your cfo estimated that would be about a $46 million impact how did you arrive at that number or ballpark, and can you give us more color where you're seeing budget scrutiny

>> good morning, deirdre yeah we actually shared we saw about 4 to $6 million worth of sort of risk to the full year guidance that was incorporated into our guidance i think the truth is we read the news like everybody else it implies that there's some macro uncertainty out there. the backdrop of the powell speech, sentiment among the overall market and that impacts our buyers our view is that in the medium term, you know, that has an impact with a longer term. it really doesn't. infrastructure is one of these things that moves slowly and inevitably and that is really kind of what we see day-to-day. the guidance framework incorporated a view of the macro, some uncertainty. we did see some escalated signoff approvals on the transactions in the quarter as we shared. but at the same time we delivered a 50% year over year revenue growth beat. so as a result there's some slowdown but it really didn't impact our business all that

much we're really implying it's a little bit of uncertainty and conservatism in our role. >> seasonality is part of the business you point out, when it comes to enterprise buying and spending patterns. what quarter -- if q3 is usually soft, what quarter in the next year or so is going to be a real test or a sign post of where demand structurally is >> for all enterprise software companies q4 tends to be the strongest. q2s and q4s, different companies have different year ends, generally imply opportunity for enterprise software companies. that's a generalization for most companies. the q4 quarter for the overall market is the one where you'll see the implications but i think what we have seen is there's been incredible durability over the last year, even during covid when people thought enterprise software would slow down, it really didn't but q4, during 2021 was a strong quarter. i think that's probably the one to watch for the overall market.

>> dave, what are you doing, if anything, in m&a are you a buyer of smaller firms in this environment given your relative strength? >> we're always looking at kind of the build by partner framework for adjacent markets that we want to participate in one really unique aspect of our company, that kind of goes back to my point around the dislocation in software categories, this happening as the world goes cloud, the fact we have eight products already we've sort of made this long-term bet that if the world goes cloud there's a new buyer that emerges in the form of a platform team that's making purchase decisions across a whole range of different product categories which provides a unique opportunity we've been investing organically against that we're looking at the buy partner option as well the private markets haven't reset to the same level the public markets have. i think time will tell when that happens. i think when that time comes it's an opportunity for us more

generally. i think the venture ecosystem, the late stage private market is working its way through the reality of what's happened over the last nine months and that hasn't really hit home in valuations. >> so more room to go, maybe. finally, dave, i noticed you're at the office is that the sales tower building behind you you're not far from where i am at one market. how full is your office post labor day, are you asking your employees to come back a certain amount of days, how are you looking at return to work? >> we've always been a remote company, interestingly even when we started we pioneered the remote orientation pre-covid we were quite fortunate. all of our work flows and models are remote oriented. we have 2,500 employees, and a couple hundred here in san francisco. today there's maybe a third of that capacity is here. we continue to be remote-oriented. we think that's a real advantage for us we have lots of people coming in and out. but like san francisco itself, when you look on the streets, most people are still embracing

the remote model. >> yeah, a third is pretty good, dave, if they don't have to be there. >> actually likely to be higher today. interesting what we're seeing is a lot of people are coming together post labor day or late august, getting groups in here that come do off sites that wasn't happening six months ago. i'm quite optimistic about the orientation return to office for the city overall. >> you must have snacks or combucha. >> haven't done that yet. >> dave mcjannet, thank you. n'gowasla bull, after the break, dot ay. back in two. your projects done right

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check out shares of tesla. they're up by more than 1% this morning. price target getting a bump to 360 predicting the inflation reduction act could make the u.s. tesla's most profitable region and driving gross margins to 40% wolf raises estimates across the space saying select evs could become more profitable than traditional automakers in the years ahead. carl >> trying to box out the competition with a new pivot on stablecoins. we'll get more on that piece in just a moment. tech check is back in just a moment in order to thrive in an ever-changing market.

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the world's largest crypto exchange raising eyebrows this morning after announcing it would no longer allow users to t trade stable coins it's busd. these are two stable coins that are pegged one to one to the

dollar kate, kind of bold move here by the binance team taking circle coin off the exchange which is going to hurt them if this is market share is there anything they can do. >> there's a little bit of this precedence coinbase did something similar in july. not a good thing for circle, but they have other exchanges, number one on coinbase and ftx what it really does here and sort of behind the scenes is it pools liquidity on the exchanges. it's like trading foreign currency if you look at the euro, usd, or the yen. there's one trading pair there's one u.s. dollar out there. in crypto you got multiple different versions you have to pick the pair you're going to go with

is it tether is it usd. by picking $1-backed currency on an exchange, it's going to make it easier for traders. coinbase has done this and unify the order books which is supposed to make it easier for traders. there is a little bit of merit there. binance is not totally delisting usdc it's not going to be one of the dominant pairs that's getting pulled together. and then as far as the implications here, circle is the dominant stablecoin on both. the bigger picture here where it may benefit circle is if it eats into tether's market share it could really stunt growth on tether if you have other u.s.-based stablecoins teaming up for one liquidity pool. does it stunt growth and the traders i'm talking to say tether is the largest market cap. it doesn't have an exchange partner. you have to successfully team up with an exchange going forward

that's the big question for a lot of these stablecoins. >> that is a big question. appreciate that. that's an important story. a lot ahead here at cnbc don't miss tonight's special report on the energy emergency hitting up things oil as russia does cut gas flows to germany indefinitely a lot more on what to expect on some of tech's biggest name at the conference this week tech check is back in a moment ♪ icy hot pro. >> announcer: crypto world is sponsored by crypto.com. ice works fast... to freeze your pain and your doubt. ♪ heat makes it last. so you'll never sit this one out. icy hot pro with 2 max-strength pain relievers. your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates

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all three indices have turned positive. you see the nasdaq right there at session highs trying to break that longest losing streak since 2019 that would be six sessions we'll see if it lasts. still early in the day >> that's some session high of 13 points. we'll see if it holds. one more thing before we let you go, a week ahead you will not want to miss we'll be coming to you live from the code conference. that's starting tomorrow tim cook, andy jassy, evan

spiegel. and then we'll be at gold man sack's conference the next week talking to another cohort of ceos carl from enterprise to consumer we're going to have you covered. >> pretty amazing between the apple event, powell on thursday, ecv this week. let's get to the half. welcome, everybody tech troubles. the nasdaq flirting with its seventh consecutive loss the investment committee joining me this hour, kari firestone and josh brown what the markets are doing at 12:00 noon in the east we've had another reversal we're positive for the majors. the ten-year note yield, one to watch today. we're at