explain. it's wednesday, september 7th, 2022, and "squawk box" begins right now ♪ good morning, everybody. welcome to "squawk box" right here on cnbc we're live from the nasdaq market site in times square. i'm becky quick along with joe kernen andrew will be joining us live from seattle and will join us later, speaking with howard schultz, starbucks' ceo and also laxman narasimhan. right now the futures indicated higher the dow up by 63 points, the nasdaq by 40 of course, we saw a similar theme yesterday. the dow was up by 200 points yesterday at this time, but it

did close the session down as did all of the major indices yesterday the dow was down the nasdaq was down for its seventh negative session in a row and it's the longest losing streak since november of 2016. it was a very long time ago. it was the year my daughter was born and she started kindergarten yesterday. if you're checking out the indexes year to date, we're starting to look at negative numbers. if you were looking at off the highs, the dow is more than 15% from its all-time high s&p is down by about 19% from its all-time high, and the nasdaq is down more than 28% from its all-time high so you're starting to talk about those lows coming close once again even after we saw some pretty strong gains over the bulk of the summer. if you're watching treasury yields, they're setting records too. yesterday, the 10-year, the 5-year, the 2-year were seeing

highs since june of 2016 crude oil prices have been at least lately if you're watching some of these things picking up a little bit wti up higher. i'm surprised not higher you are talking about concerns of recession maybe holding it back from even higher levels at this point the dollar is at its highest level since june of 2002, its highest level against the yen, joe, since 1998. >> in my opinion, which nobody cares about, it definitely should be parity or higher we're in a better place. we have a better economy, at least right now. oh, my god, i almost fell. i almost just fell off my chair. >> because you were shocked? >> no. because i don't have a thing really, it disrupted things,

mack earlier this morning yesterday the averages were rough. we talked about it all morning long immediately it opens and it's like, blegh. people realize how horrible everything is. this morning it was up when i got up, there were triple digit losses now -- >> up by -- >> you know what hasn't turned around -- >> are you placing any bets on the markets before they open >> i lost on the reds last night. i looked at bitcoin. bitcoin is indicating that this is going to turn around today. maybe it doesn't i don't think we brought up crypto but it's hellish right now again. down below 19,000. i saw it below 18,000. we talked about 18,000 last time back in june we'll see whether it gets back below 18 people have 18 as the low, but i'm pretty sure i saw a print at about 17.8 or 17.9.

>> this morning? >> no. back then. as far as the market, the s&p is 3900 i look at 4,000. that's where i made the bed. 3998 with mohammed we went up almost 10%. we didn't make it. 4300 or so weren't we close. >> yeah. >> he's thinking 3600. he kind of backed off on that. katie stockton looks like once again it's playing out exactly how she said she also even with bitcoin said 19 probably won't hold and that would indicate, you know, some lower levels i don't know how low we're talking about. but it's september now this is playing out like every movie we've seen. >> it's almost october >> so many times you see this sort of a fall swoon that sometimes makes the bottom, but the bottoms have been pretty scary that have been made in october. >> yeah. >> and we've complained about

the vix, never showing the panic you would expect on a long-term bottom it still hasn't. we certainly have enough fundamentals backdrop that is just so bad. and then i was thinking again, yesterday, gosh, i wish oil prices were lower. oh, no, no, no that means you'd better sell stocks because there's a recession, and, geez, i wish jobs would stay really strong so people could have jobs oh, no, no, no lower oil prices and lower -- lower oil prices and a strong job market are both the death knell for the job market. >> it's weird, what you end up rooting for. >> we've still got covid in china. it's cut its china gdp it comes in at 2.7%. that does not sound like a number that you would associate with china, at least in the past

i wouldn't 2.7. down from 2.8, citing covid in several major cities and lockdowns including the manufacturing hub of schenn knew and the tech center of shenzhen. they have so many people they would be in the top five here. >> it was bigger by the way, it's an outdated statistic. it's probably more than that. recession in germany is inevitable that's according to the ceo speaking at a summit in frankfort. they have that crappy euro sign that's all battered and falling apart, which is perfect, actually, as an al fwoir they said they would act quickly to tame price gains. the longer it remains high, the greater the potential for social conflict in his words. i heard yesterday that someone

called nord stream nordstrom. >> i saw that on twitter, yeah. >> that nordstrom -- >> nordstrom is going to get a bad name. >> putin is shutting down nordstrom. if that's next, if he does that -- >> that's a step too far for you? >> yes if he shuts down nordstrom, i don't know just keep his hands off our upscale retailers, right >> i think europe would probably prefer it because if you look at the upday date of want ads, russian president vladimir putin actually saying at this news conference or saying this morning that germany and western sanctions are to blame for the shutdown of the nord stream 1 pipeline he was speaking at an economic forum, and putinblasted a proposal by the eu for a price cap on russian oil is stupid eu ministers will hold an emergency meeting on friday to talk about that price cap plan i don't know if you've seen.

there's a back-and-forth as if they'll actually work. >> they'll work. they'll work like it happens with every wage and hub price controls it skews the dynamics in a way you probably wouldn't like when you -- think about -- i mean i'm not going back to 1776. i just can't i can't do it every day. >> back to the '70s. >> backes t to the '70s, back t econ 101 like a crappy school you figure you can learn about this stuff we never -- we never -- there's a lot of things we're repeating that i thought we had settled back when i fefrlt got out of college and looked around and thought this world was crazy and suddenly everything changed. it was like 1981 and then it ushered in this great period where we saw what could happen maybe -- i don't have much hope for today's d 's -- look at who

teaching our kids today. >> sorry i didn't mean to -- >> look who's teaching our kids in college today how do they possibly end up with a reasonable view of the world >> sorry scratching a little too hard at the surface. in the meantime mark zuckerberg announcing it's going to be holding its annual virtual conference called connect on october 11th in the announcement post that came on facebook, of course, zuckerberg appears to be wearing a new headset, which is probably project cambria. the headset is believed to be a computing power that captures the real world and displays them inside the headset in real-time and color. this is what gets confusing. what's real, what's not, and be careful with anyone wearing glasses around you because they'll probably be recording you. >> they'll be home anyway.

they'll be sitting at home, not going on vacation. they'll be sitting at home i like how -- people can eff off at work too. it's not just at home too. do people really believe that there's no difference between when you're in a work setting and your colleagues are around and there's a boss check as opposed to at home where no one's watching you and you've really got to be on the honor system for working eight hours a day? >> i'll take andrew's side of it today because he's not here to talk about this side of it look, i go back and forth. i think there's some middle ground it's problematic to never be in the office i think we've seen it, the collapses in work cultures over the last two years it didn't fall off instantaneously. >> we had to rise to the occasion. >> the longer we're out of the office, nr problematic it gets you don't know the people who

are new hires and you don't connect with them. that gets to be a serious problem, probably more so with people higher up the food chains i don't think younger people realize how limiting it's going to be eventually on their ability to advance i'm not saying people should be commuting into new york city five days a week i think new york has kind of come up with its own problems for this you look at the crime on the streets. would you want to get on the subway. >> 35% of the time we bring it back to new york. >> it's the least populated city at this point. >> in terms of philosophically whether you go there, why do you need to look any further than our children in school >> if it's not good for the kids, it's probably not good for us. >> we're grappling with how to get people back on track at school, whether it's tutoring, canceling snow days. i don't know how we get annan tire generation of kids back on track that were socially and, you know, intellectually stunted by the -- and here we are -- >> i see it with my own kids.

>> we say it's normal to do with the workplace. it doesn't make any sense. >> i will say that the idea of having more flexibility is a good thing the idea that people have been forced to say, okay, if there's an emergency at home, child care issues, you should be able to go home and take care of those things, as long as you're getting work done. >> we eesk seen the cushy sort of social experiments in europe for years and years and years and their gdp is 40% below ours on average. >> in a kinder gentler way. >> kinder gentler way. >> if you're a parent -- >> money never sleeps, pal this is the world that you need to go into to, you know -- pick it up at 3:30. >> i know. we're here. >> every day. >> we're here. >> i walked to school. >> both ways, uphill, in the snow, in the summer.

>> did i tell you that already instagram is reportedly planning to drastically scale back on its shopping features on its platform citing an internal memo, the staff has been told it will shift its economics. it's going to test a simpler and less personalized version of the shopping page over the next few months and apple holding a launch event in california where it's expecting to unveil its latest hardware products including iphone 14. it's going to be the first launch that isn't completely recorded in 2019 it will complete an in-person component. we'll talk more about the event and the potential impact later this hour. >> you know what's good? us extending the a-block to 613. >> how many blocks do we have? we have three per half hour. >> yeah, a, b, c, d. >> they merge sometimes.

we have some flexibility. >> it's a good thing, yeah. >> it is a good thing. coming up, get ready -- i'm ready -- for the boomer comments, go ahead, as millennials sore to 5% ownership of assets in the united states stock futures right now about 42 points, nasdaq up 31. >> basically you're saying scoreboard. >> get a clue. then mark cuban -- they actually quashed the greatest generation. i want my appings from my app store and i want them free, cuban speaking out about the push to tax more on the we wealthy and taking shots at elizabeth warren you're watching "squawk box" on boomer tv. >> announcer: this cnbc program

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futureles at this hour are up factually it really is, 23 points, but it seems like a fraction. the s&p indicated up by 4 and the nasdaq at 20 the markets closed yesterday to kick off the shortened trading streak the longest losing streak since 2016 let's talk markets with tracy mcmillan mcmillion? i like mcmillion rather. kevin simpson, founder, chief investment officer of capital wealth planning. tracy, so we're at these great

levels back at the end of last year, whether it was pandemic-related or not. we had the horrific selloff in the first half and then predictions for a retest of the lows during half of june and most of july we had that really sharp snapback what was that about? was that about seth up a move to lower lows or this pullback right now is just sort of shaking out the inishful investment that was a pretty good rally was that a complete head fake that's going to take us lower, or are they trying to keep us out of the market right now that's eventually going to be higher >> yes good morning, joe. thank you for having me on this morning. you're right it really was a pretty good rally we saw but, you know, investors have been watching the same data. they've been listening to the same speeches and drawing different inclusions

the conclusion they were drawing over the summer is the fed would pichbt and start cutting rates next year. we think especially after powell's speech at jackson hole, he reiterated the fed is on a mission to lower inflation that means lowering demand and that means paying for the economy. we believe there's a recession in our future and that we're probably headed lower here, not higher >> what do you think, kevin? >> yeah, john. unfortunately i have to agree. we're looking at quantitative tightening entering the picture this month, and as aggressive and hawkish as chairman powell has been and the fed have been, raising rates is something we don't usually see the effects of sometimes for six or nine months if you take $9 billion of liquidity out of the market each

month, we're already seeing rates go higher as a result of it that's like a rate hike. whether we do 50 basis points or 75 basis points, it may be an issue of semantics they want to get back to a point. that might get us around 3.5% fed fund rate. we're not done, and markets -- joe, you and i are old enough to remember son septembers and octobers in the past markets are not done. >> you talk about what the fed's duty is. will that be effective there's so many different reasons for inflation. is just cooling an economy, which, you know, we're running hot. there's a lot of money sloshing around, but, you know, we're not growing at 6%. it's nothing like that, gdp-wise it's a good economy. taking that economy as it is and

saying, all right, we've got to definitely induce a slowdown, perhaps even a recession because we're going to cure inflation, with all of these varied and sundry reasons, which have gone into this latest inflationary spell s that the way to cure it. >> you hit the nail on the head, joe. it's almost like you're forcing a recession. it's like the fed know that's the path we're heading down. recessions stink, even if it's a mild recession they have to be aggressive in raising rates. should they have started earlier? sure hindsight is 2020. the qt is going to help. another thing that can help inflation is the strong dollar i don't know if we can think of that, but the strong dollar will help. >> we're certainly the best house. we've got goto go, tracie.

just some final thoughts. >> you're right you talk about europe being the best place. u.s. international and upping quality within the asset group, large caps, mid caps over small and with fixed income, move away from highyield to an investmen grade. >> tracie, thank you kevin, thank you i guess, what did i say? it's the fed's duty? >> right after kevin said recessions think. >> you in your adoesn't world that you brag about all the time hold up a sign that says i said duty, dudie. >> the control room heard it

>> i said duty. >> no, you did not it's a three-hour show when we come back, mark cuban blasting senator elizabeth warren over her push to raise taxes on billionaires. we've got the video next. later, andrew will join us unr from seattle with the fodeand incoming ceo of starbucks. "squawk box" will be right back. charging something like a hundred bucks a window when other guys were charging four to five-hundred bucks. he just didn't wanna do that. he was proud of the price he was charging. ♪♪ my dad instilled in me, always put the people before the money. be proud of offering a good product at a fair price. i think he'd be extremely proud of me, yeah. ♪♪ this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery.

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>> i don't mind being taxed more i wrote a blog 20 years ago saying it's the most patriotic thing you can do after military service is pay your taxes because that's what allows everybody to live and to prosper, but, yeah, the idea of just soak the rich, billionaire tears that hold that cup, screw you, elizabeth warren, you're everything wrong about politics. >> okay. >> kind of surprising. he's been disappointing to me in terms of the path forward. >> now you're on board >> that's a good start he's pretty woke you know, normally there's a lot of virtue signal, but a lot of times he seems to rise to the occasion that to me is patently obvious i've seen it -- once again, how long has it been rich people are the problem rather than people that probably have worked hard,

done well, and people get mad at elon musk who paid $11 billion how many of the complainers have to line up tax receipts to equal what elon musk paid last year? >> i think mark cuban made a good point it's a patriotic duty, but he doesn't want to be maligned for it. >> there's nothing wrong with taking advantage of whatever the tax law is you pay it that's it. everybody knows. there's a little line at the bottom if you put your money where your mouth is -- >> i have definitely come to a conclusion a simpler tax law would be better. >> people that say, you know, there are plenty of rich people complaining about it that never use that line at the bottom, the

optional pay another, you know -- pay all your money, abigail disney, pay all your money give away everything that your relatives who were so successful in the past bequeathed to you. if you really don't like it, give it away. coming up, frequent "squawk box" viewers may be familiar with things. chevron is pushing for more oil. winners and losers c we'll be right back. >> announcer: executive edge is sponsored by at&t business at&t 5g is fast, reliable, and secure oh, i can tell business is going through the “woof”.

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good morning and welcome back to "squawk box" live from the nasdaq market at times square check on the futures better than 60 points on the dow. nasdaq indicated up 26 s&p up about 8 we could give you a rundown of the last nine months pretty easily went right into the toilet for the first 6 1/2 months to the

extent that we haven't seen a market -- a bad market like that for quite a few years, bear market tried to rally from june 16th on until the end of july and now we're back in the soup and nobody knows how much further we go but there's a lot of fundamental things that are happening that are troubling, whether it's inflation or the fed and definitely in hiking mode. big hike 75 basis points. >> energy issues in particular. >> in europe, a war, the remnants or -- >> russia or china >> a current pandemic in china maybe not pandemic, but covid. the lockdowns are certainly front and center so we've got a lot to worry about. i always wonder, is any of this not in the markets at this point? >> good question. >> maybe it's worse than we think. >> some of the counter has been maybe it's not nearly as bad as we think it's been worked in. >> paulson was on and it was like it was great and then we

continued to sell off for seven straight days. >> a lot of ways to look at this the question is are we going to retest the lowlows our next guest has taken a unique path in tackling the energy crisis. in a new letter to chevron he's calling on the oil giant to boost production and slow spending on its energy transition plachblt already, vishic, let's talk about this. this is more than your average shareholder push to change things you've got a message to get out. you're taking a page out of what we saw with chevron last year, the proxy that was done there with engine company number one you're kind of taking the opposite page of that. explain what motivated this. >> so look, i actually see here in sheshchevron that has courage i sent a letter to the board

questioning the board of certain behaviors in its response to other esg promoting asset managers chevron in 2021 over the board's objection ended up being pressured into adomtss a shareholder resolution, get majority support, for a scope three emissions proposal, and the basic question i ask is why is a scope 3 emissions die re ducz proposal in the best interest of chevron as a business i will tell you i believe there's not a good answer to that question because this is a proposal that calls not just for the company to reduce its own emissions and power and gas, but also every unit of emissions all the way down to its supply charngs even that used by its customers. it would be equivalent to mcdonald's to reduce the adult body weight of anyone without asking the consumer to share in the responsibility in return it makes no business sense for chevron. the good news is i hope a new

voice, post-esg voice, can actually drive behavior in the other direction to go back to creating value for shareholders exclusively over any other social or cultural or pivotal objective. >> vivek, i hear your concerns maybe the esg movement has gotten way too political and is pushing companies to do things that don't make sense. but what you're doing might make things a little more complicated for chevron too. you say you're trying to make things easier for them to get critics to focus on them as a result, i don't no-no that that's necessarily going to help you're right mike worth is trying to walk a fine line, making sure he does what's best for the company. that doesn't include bottom line issues you have to look at all the fak doors and things going into it. >> mike wrote me a gracious response last night. at the end of the day, this is

about bringing a different voice to the table because a lot of these esg claims have not been contested in the open. firms like blackrock, state street, vanguard, all voted in favor of the scope 3 proposal. i think those totalgys have been used as those vehicles to advance agendas and they were not organizing shareholder value in the end even though they're disguised in that language that's my perspective. i think any company, chevron included, is going to be better off rather than unquestioningly accepting the claims of shareholders at one end of its spectrum one of the things that's interesting is even the group that proposed this scope three measure, for example, of chevron was a dutch-free product it was just about advancing climate change, and the irony is

even block rock oonld and state street questioned their own judgments in 2022 when they said they didn't vote in favorite of the proposal last year at the end of the day, a lot of the firms are vacillating. there's no clarity of debate about whether or not these are in the best interest of the company and the shareholders. >> vivek, it's a pretty big leap of faith, but that's the default position of even, even gary gentzler in the scc. i know you've seen the red writ. t rhetoric they're saying it is about shareholder value. preventing bad weather down the roading being in the best interest of the shareholders down the road, that seems like a stretch to me. let me ask u warren buffett.

he's buying a lot of occidental. he may echbd um with the whole thing. it's been said he likes the carbon capture tech knoll jichlt is that what he's looking at is that a profitable business down the road? bring me to the possibility of that if a company is supposed to switch to 50% of its business activities and they're about carbon capture do you sell credits do that versus do you think that's why buffett is buying oxy because the carbon cap is taken out or the money that's in the ground that oxy has or can eventually have >> i can't speak for why they're buying occidental. i can tell you berkshire hathaway have a lot invested in them to power companies across idaho to i believe other parts of the west toover countries chevron, by the way, berkshire

hathaway is nearly the largest shareholder of chevron earlier this year. that's interesting because it affords chevron greater flexibility than other companies who include just the likes of blackrock, state street, and vanguard there are lots of ways to win if you're an energy company a lot of people don't characterize this as carbon capture, but i do. kac cap tour capture that. make more money for shareholders, which is the sole job of a corporate director. by selling products and services to customers who need it, that's what you need to be proud of rather than apologizing for it. >> vivek, you just said that's the seoul -- i'm sorry you just said that tease the

sole role? everybody, that's all we hear these days there's ten different things these guys are supposed to be thinking about, which makes it complicated. you think making shareholders money would make them fall in line that's not what people are saying right now. >> i'll be more specific your job is to focus on delivering excellent products and services to customers who need them. it's not for solving by 20 different stakeholders' interest at the same time of course, you need to take care of suppliers and businesses that alou you to be professional in the long run duties include whether you're an asset manager or control member of the board the interesting thing about these state capitalists, joe, in recent months they've starred to

talk about out of both sides of their mouth. they're now saying it's about value max mization let's not talk out of both sides of our mouth here's how you make products and services for people who need them do it for profit over the long run, and you don't have to apologize for it even if you're an oil kpaechl chevron can be a more successful company. to say this is how we deliver pros pairpy to humanity, not by signing onto the paris agreement and endorsing it, which u.s. has never ratified it, those are things that chevron has been under the authority do they should pursue excellence in their business unapologetically, and that was the hope i would bring to the boardroom in the letter i delivered yesterday.

>> your fund zones, the existing shares of chevron, it's a pretty small stake. engine company number one also owned a small stake that proved to be influential because they got a lot of conversations on board. have you had conversations with others >> i have not. we wanted to let chevron hear first from us. responded last night i look forward to engaging struck actively with it. it is clear that even firms like blackrock and state street appear to be rethinking their models their 20202 vote were not the same as their 2020 votes 678 they were not a shareholder at the time of the scopele 1 emotions i hope we're at the time of a

transition, a dialogue around these issues where we can nudge the dialogue in the right direction. >> vivek, thank you for joining us this morning. >> thank you. coming up, elizabeth holmes is seeking a new trial we'll tell you why after the break. >> i canalle later don't miss our exclusive interview with starbucks' founder howard shut and incoming laxman narasimhan. you can watch us any time on the website. ♪♪ ♪♪ ♪♪

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that's all they need. in the meantime theranos founder elizabeth holmes has asked a federal judge for a new trial after she said one of the prosecution's star witnesses visited her house expressing his regret for his role in her trial. in january holmes was convicted of four counts of fraud deceiving investors while running a scheme at theranos she's expected to be sentenced in october a former lab partner showed up unannounced at her holmes last month. he spoke to holmes partner and said he twisted her testimony and he had difficulty to the point he had difficulty speaking they believe it qualifies for her getting a new trial. when we come back, applese to unveil its latest iphone model at an event later today. a reminder, you can get the

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apple's next big event is today with the expected announcement of a new lineup of iphone, joining us is dan flax, senior research analyst. what do you expect to hear what number are we on? it's like my passwords i go up. should i, i shouldn't say that okay so this is, are we on 14 i don't even know where, what's my, go ahead >> good morning, joe we're on iphone 14 and what i think we'll see today are significant advancements in key areas like the camera, which are critical to experiences in video. i think we'll also see in the wash, additional health care

features, perhaps in areas like temperature sensing. it's really about redefining experiences, bringing together hardware, software and services. they've done that in the past. they're doing it today and as we look out into new areas like augmented reality, there is a lot here. it's not just about the iphone 14 which is a great product we'll see later today. >> i have seen conjecture that people are ready to buy an apple car. there is no apple car right now. people are alluding to what this company's been able to do in every other thing they've tried. it would be formidable, i guess. is there ever anything coming on that front, dan?

>> they're working hard at it, but it's a very challenging technology set of problems to solve, and it's about being able to harness artificial intelligence, systems, sensors, bringing a lot of skills that apple has and of course continuing to add talent in key areas from the automobile industry but it's not just cars think about autonomous system, robots everything has to be done in a safe, private and secure way so certainly, they're working on it it is perhaps a product we'll see later this decade. what we've seen from apple is they want to get the experience right. this differentiated user experience empowering the developers around all of that. that in my view is going to matter more than a specific product. they need to bring everyone along with them on the journey

>> let's talk the stock, which has done very well, obviously. it's, you know, it's not completely immune to macro factors. but the move to services and the apple ecosystem which we all live in, at least i do, maybe not everyone, but is that enough to keep the stock going before any sort of huge quantum product introductions? >> i think it's going to be this continued broadening of the drivers. in services for example you have fitness plus with the watch. you're seeing them extend in health care as one example into areas for heart health, women's health, mental health. so it's bringing the services together they did that with the ipod, with the music service and of course you had different business models being able to buy a single track for 99 cents. so it's this integration across

the hardware, the services and the software i don't think it's any single product. what does matter is they have to continue to push the envelope forward. they have to continue to provide the tools for developers, the millions of men and women around the world building applications. those communities and all of us as users need to get value, and it needs to continue to get better and better. so if they're able to do that across product, across services, across a broad range of cycles, i think that helps to lay the foundation for future success at apple. >> in the 19th century, people said we could close down the patent office because there's nothing new coming what's coming with the iphone 14 i can't get any better, can it in is there anything they can do i'm being sarcastic. what's iphone 20 going to look like two, three, four five year,

however many that comes, what is that going to do >> so iphone 14 will have better, richer, more immersive experiences in areas like augmented augmented reality. for iphone 20, the experience around augmented reality will be seamless, powerful it will be a mix of being able to engage with the physical and the digital world in a way that adds value to people's lives it's not -- >> that sounds like gobbledygook did you get that from mckenzie what are you talking about huh? another one. things are going into the toilet i just said crap becky thinks i'm very scat logical. that sounded like a corporate guy saying this is the best

thing ever when nothing's changed. that's what that sounds like >> joe, think gaming, think health care, think your car, think your house changes there. >> augmented reality, merging seamlessly with the digital world. anyway, thank you, dan >> thank you. >> see you later when we come back, we're going to dig into europe's energy crisis and vladimir putin's comments and later, andrew joins us live from atsetle with the starbucks founder and incoming ceo. "squawk box" will be right whack back does your firm offer personalized index investing? hmm? so i can remove a stock that doesn't align with my goals. back ack back ck back barik back back back gains and losses to be more tax efficient? not a wizard either. looks like schwab personalized indexing can.

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good morning tech taking a tumble yesterday with the nasdaq facing its longest losing streak in more than five years. future this is morning fighting for gains. in europe, the spigoting still shut off when it comes to natural gas and russia's nord stream pipeline. putin saying this morning germany and western sanctions are to blame we'll get latest on europe's energy crisis.

plus, back to school, back to the office also new data on quiet quitters. we'll take a closer look at the new normal as the second hour of "squawk box" begins right now. good morning, and welcome back to "squawk box" here on cnbc live from the nasdaq market site i'm joe kernen with becky quick. andrew is in seattle and will be joining us in the next half hour and a big interview that you can't afford to miss howard schultz and laxman nar simmen will be joining us. the s&p is up 50 treasuries, interesting from the perspective of seeing some new

high ground, not right now, but 333 now on the ten-year. oil was lower, but is trying to maintain at the mid to high 80s number 87.14. it had been up, so it rebounded a little bit still, nowhere near 120 at this point. and then, even though the equity markets have stabilized a little bit this morning, crypto continues, at least bitcoin traded near recent lows, actually near the june lows. >> opposite of the dollar, which has been at the highest level since june of 2002 interesting to see the anti-correlation between the two. we have news just out from retailing giant target the company announcing that brian cornell has committed to lead the company for approximately three more years i didn't realize cornell was turning 64 i also didn't realize the company still had a mandatory retirement age of 65

with this new commitment, target's board of directors is eliminating that entirely, the retirement age saying okay, fof forget it. brian cornell saying this has been the high point of his career he's energized about leading the company in the years ahead as they build on the growth they've already accomplished remember, when companies do planning, target in particular, tends to look three years out. so this three-year commitment is something that will allow them to make plans that he'll be around to execute on over the next three years or so the company announcing arthur valdez, the chief supply chain and logistics officer is going to be retiring, to be succeeded by gretchen mccarthy, senior vice president global inventory management that is effective immediately, but i hear valdez will be

sticking around for the transition he came originally from amazon gretchen has actually been there for 18 years with target, so she's going to be stepping into that job stock right now, $163. right now let's get over to dom chu. he's got a look at some of the other premarket movers what are you seeing? >> we're going to talk a little bit about consumer brands and given that laxman being in seattle, the idea that these pepsico alums are doing a lot of moving and shaking another brand is newell brands it's down nearly 5% premarket. it's thinner trading volume, but this is the company behind brands like calphalon, crock-pot, sunbeam it cut its full-year financial

guidance, and what newell did is cite birg bigger than expected back it remains optimistic about the back to school season or the commercial-oriented business next up, netflix shares, fractionally higher, the streaming video giant is getting some help today from analysts at mccrory who've upgraded that stock to a neutral rating. they have a $240 price point there. they think it will increase as they get more revenue from the ad-supported platforms, and we're going to end with a check on bitcoin prices. we did hit a low for the year in yesterday's session, depending on which kind of metric or exchange you want to look at we haven't recovered since the june low levels. we're a hair above 18,600.

it takes the total market capitalization of the entire crypto sphere back below that 1 trillion mark. that's a level that a lot of folks like to watch psychologically for whether there's broader health in crypto s currencies >> we were just talking about the dollar maybe some sort of play if the dollar's going to be strong, crypto not as much >> it's not just crypto getting hit. if you take a look at the british pound, you look at the inj euro, the yen. we often kind of balch ork, but a currency moves 5% or 10%, that's massive, a proxy for an entire country's economy, and with the dollar strength being what it is right now, you wonder

whether there's going to be broader pressure you're talking about interesting moves on, you know, in european cou companies. in asian companies the dollar strength story might be playing out a little bit more but maybe it's about this risk aversion trade when the going gets tough, you joe and i know the tough get going. >> hey, diana. >> hey, joe. mortgage rates are shooting higher yet again after a brief reprieve in august so the bleeding in mortgage demand continues the 20% down increased from 5.94% to 5.8%. and that was the weekly average. there were a few days when the rate rose above 6% on another survey

and yesterday, that rate hit 6.25%. and it's all because investors see the fed as being more aggressive on inflation than initially thought. so big surprise, mortgage applications to refinance a home loan fell another 1% for the week and were 83% lower than the same week one year ago mortgage rates were around 3% for all of last year so really, there's about nobody who could benefit now from a refy mortgage applications to purchase a home fell, and were 23% lower than the same week one year ago given today's rates, a person buying a $400,000 home would pay close to $700 more than they would a year ago >> same story. just the latest, diana it's happening it's happening. >> sorry to sound like a broken record, but it's happening rates over 6 is the new normal >> the new normal. did allayerian really come up

with that? >> steve liesman told me last week he came up with it. >> he came one it. >> he's not sure if mohammad heard it from him. but i think stieve came one it about the same time independently. >> there was a seinfeld or larry david about that is correct somthat >> i came up with qe infinite. infinite. >> there's a guy who says he came up with roach motel >> roach motel's been around forever. >> someone came up with the mother of all fights. >> that was saddam hussein >> and someone invented the cobb

salad. said i came one that you know who came up with the caesar salad >> caesar conte. >> caesar somebody honestly, somebody did come one that >> the emperor caesar? >> no. >> no. >> he made the salad >> anyway, we digress. when we come back. the nord stream pipe to europe remains closed indefinitely. russia's vladimir putin blasting the west dow indicated up by just over 50 points s&p futures up by about 5.5. "squawk box" will be right back. leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

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and neigmaybe it happen, maybe doesn't at this point. vladimir putin saying germany and western sanctions are to blame for the shutdown of the nord stream pipeline he blasted a proposal bit y theu for a price cap on russian oil joining us right know is judd gregg. also kristy goldfuss at the center for american progress senator gregg, let's start with you on this. the situation we find ourselves in or maybe more importantly, that europe finds itself in, maybe not hugely surprising, but here we are. what do we do? >> it's a self-inflicted wound to a large extent. the russian situation has made it much more acute, but when you

basically shut down your production capability in nuclear, coal and gas and try t transition immediately to alternative source ners it doe energies, i doesn't work and further, the people who are most harmed, of course are the low-income and moderate-income individuals who are on fixed incomes and can't adjust to a massive increase in their energy bill which is being driven in large part by stupid public policy on the issue of global climate change so it really is unfortunate. i think our job as a nation, however, is to try to alleviate it as much as possible by shipping them as much l ang as e can. and ironically, this administration just handicapped the ability to ship lng to

europe by putting them behind the eight ball on one of the approvals they needed to order to keep their lng production up. so you've got their administration basically speaking out of both sides of its mouth on the issue of energy policy and you've got europe suffering from an energy policy which this administration seems to want to replicate. >> kristy, do you disagree with anything that jud just said? >> oh, i disagree a lot of what the governor just said as he likes to call it, the big green lobby, if it had been more successful, europe would have a more diversified portfolio just as the news has been reported is putin and his country turning offer the gas to europe it's a very dire situation they will get through this winter only through efficiency and making changes to how they're using energy right now

if the uk were in a situation where it wasn't entirely reliant on natural gas and had more sources for energy, they'd be in a much better position so i just, the concept that it is as a result of shifting to clean energy sources that they control, versus what a dictator, a petro dictator like putin controls, is just, doesn't add up >> kristy, to run the cars and even if they're evs, to power the grid, and to heat the homes in europe and germany at large, if you're not going to use nuclear or hydrocarbons or coal for the grid, if you're not going to use any of those and the transition wasn't fast enough, which thing are you talking about they needed to transition quicker to? would it be solar? or wind? or do you have, like a magic, just plug it in the wall and it

works? what would you, just give me your real answer on what they should have transitioned faster to if it doesn't include hydrocarbon or nuclear or coal what should they have done so that they'd be running their entire country, everything would be heated and cool, people would be driving, jet airplanes would be flying around, what would be? >> certainly nuclear is a clean source that needs to be a part of the equation at least in the long term as long as it's economically viable. so that sis a necessary source. it's a diverse ified portfolio. >> like what >> like what as clear as i just -- >> judd, is there anything, besides what i mentioned, do you know, cold fusion maybe? what is it it's not wind or solar it can't, it doesn't do it

hydrogen maybe do you snow judd >> know, judd? >> no, there isn't anything. it's not going to happen for another 20 or 30 year. if you're going to have base load capacity, you've got to have the capacity to produce energy fairly cheaply. and that involves primarily in our country gas. and in europe it should probably use gas. i mean obviously, nuclear is an option but building a nuclear plant takes 20 or 30 year. so you can't do the base load. fan yo and if you can't have base load you can't have economic prosperity you're basically forcing people dumb down or reduce their standard of living so can you have a political win on the issue of alternative source energy which isn't available and it's a real problem for the people in europe they're going to see it in real terms what bad policy has done

to their lifestyle it's going to reduce interest qualtheir quality of life. also remember, europe's talking about price controls now is there a better 2003 create more scarcity and rationing than price controls they should be doing the opposite, production, not price controls this whole concept is just backwards in europe and unfortunately, this administration that we have today is pursuing it, not publicly, but they are substantively pursuing it as you watch the epa limit lng and exploration on public lands and the huge regulatory excesses which our energy companies are meant to dance through in order to bring online more production. >> hey, kristy, just let me ask from the perspective of diversification. we've seen odd things this summer not just putin using energy as a weapon, the wind

hasn't generated as much china's dealing with drought situation in regions where they rely on hydroelectricity that's been a huge issue, too. just from a diversification stand point, would you like to see more done from different things? not just new energy. it seems like you don't want to be caught in a position where one or the other gets shut down and you have no recourse >> absolutely. that's why the advancements in battery and storage are going to be incredibly important. we've seen really exciting announcements, actually, in the last couple weeks since the inflation reduction act was passed because we now have an understanding that we have to build here in the united states to support this transition to cleaner source so it does need to be a combination of storage and wind and solar and geothermal we're suffering from our own drought conditions in california but they're already talking about extraordinary heat in california in the coming weeks, and really, the highest heat

index they've ever seen in the san francisco area so this is the new normal to a certain extent in our weather conditions and patterns. and we are going to have to prepare for it and that will mean that you have to have multiple sources in place, and storage that can really tolerate the transition in the weather as we develop these sources. but, if we just double, triple down on fossil fuels, which are tied to leaders who do not support the same values that we do as a nation, not only do we continue this cycle of having economic, crippling impacts as a result of petro dictate e but we'rdictateers, but we need to separate the impacts of putin's war and our response to climate change. because both require pretty significant changes. >> listen, there are a couple

statements there that i just can't handle number one >> judd, go ahead quickly. >> right here in the united states, we're not a dictatorship que put dictatorships out of business our energy if we produce enough and export enough to europe. >> we are the leading exporter right now. so how can that be true? >> listen, you got a war going on, and because of germany >> agreed. >> and because of german economic and political energy policies, they set themselves up to be blackmailed by russia. and they're now paying the price for having relied on russia instead of relying on us and we can pick up the slack it's going to take a few years, but we can pick up the slack this isn't an energy problem that europe's going to solve tomorrow >> agreed. >> but they're going to have the same problem next winter unless they can find sources of gas and the lng comes from the united

states, however, our administration make it is very hard for us to export t. >> we will have you back we'll be back after a quick break. time now for today's aflac trivia question. who is the highest-paid player in the nfl the answer when cnbc's "squawk box" continues look at the size of that- gaaaaaaaaaaaap!!! 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? gaaaaaaaaaaaap!!! aflac! aflac! gaaaaaaaaaaaap!!! it's about to go down, baby! aflac! aflac! stop that goat! get help with expenses health insurance doesn't cover at aflac.com

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now the answer to today's aflac trivia question. who is the highest-paid player in the nfl the answer aaron rodgers. the back-to-back league mvp inked a three-year, $150 million deal earlier this year to return to the green bay packers >> still to come, the latest iphones expected to be unveiled in cupertino today we'll get you up to speed on what you need to know ahead of the event, plus our exclusive interview with starbucks founder howard schultz and incoming ceo, laxman narasimhan. you're watching "squawk box," than is cnbc han is cnbc. an is cnbc. and is cnbc. tis cnbc hiis cnbc. sc .

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good morning, and welcome back to "squawk box. we're live from the nasdaq market site in times square, and the future this is morning are looking up, at least for now of course yesterday we saw triple digit gains in the dow futures only to lose those gaines immediately after the opening bell but right now you're going to see the dow futures up by 67

the nasdaq up by 24. right now we're going to head out to seattle that's where we find andrew with a preview of what's coming up. good morning >> we have sleepless in seattle here at a starbucks. i am live in seattle at a starbucks reserve store. coming up at 8:30 this morning i'll be speaking with starbucks' founder, howard schultz and incoming ceo laxman narasimhan i was just announced last thursday, coming in, it was big news in starbucks world, the iconic coffeemaker and the future of it now going to be run by laxman. it will be the first time having an opportunity to talk to him. i saw you becky earlier talking about brian cornell, to make two worlds collide, laxman used to work at pepsi with brian there was a whole period they

were working together. so we'll talk about that and so much more. all of the various challenges that this company is confronting right now with labor and inflation and everything else, we'll also of course get howard schultz' thoughts and a sense of how all this came together >> that is actua actually a prey good-looking starbucks behind you. >> this is in a grlass glass. >> that looks like a guinness. >> is it just cold, fattening, iced fattening drinks? is that the new starbucks? and also i can't wait to hear you -- >> line us up. >> yeah, exactly >> i can't wait to hear you talk about labor issues what line does he walk with the

labor issue. >> we're going to talk about labor, the china piece of all this and what laxman snees terms oflaxman sees this we'll talk about the relationship and investors and customers are interested in trying to understand all of those different dynamics we'll bring that to you in just about an hour. we also have some other news this morning to tell you about new this morning from kim kardashian she is launching a private equity firm. she's joining forces with jay sal m salmans. the duo will serve as co-founders of skky, spelled s-k-k-y. kris jenner, she's going to be

on the board and partnering up to pursue different investment opportunities. in a statement kim kardashian telling us she's excited to invest in the next generation of consumer brands and that skins business is valued at $3.2 billion they're going to be taking minority investments and control stakes in a variety of businesses she's one of the hardest-working women in the business. i know people always give kim kardashian a hard time because of social media and everything else but she's a hustler. >> she is. we'll be tuned in. i ex-pect someone to sidle up that's a coffee bar? >> it's a coffee bar it's us. >> irish coffee.

all right. which goes with your guinness. thanks, andrew >> drop a whiskey in that? >> it's what they call a nitro, joe. >> okay. all right. we believe you i think we do. >> but it's, yeah. >> all right, thank, andrew. treasury yields currently, 333 the last time we saw on the ten-year yesterday the yield hit the highest level in nearly three months after a strong economic report fueled expectations that the fed would need to keep hiking rates for more on that, let's bring in i i have sri kamar >> remember two weeks ago when we spoke we were about 275, and i was saying 350 is my target.

and our discussion was, is this going to go up so much before the end of the year. and we made it 350 very, very soon i think what i'm basing it on is the extent of confusion you have in global markets. the china lockdown, which increases supply bottlenecks, worsens global inflation the energy situation, invest in europe i called last friday that the decision to put the cap on the energy was very bad decision here is the crucial issue. we have the quantitative tightening doubled to $95 billion effective september 1st. we are going to keep hiking interest rate. how long will this happen? we are going to hike interest

rates until something breaks and we are being talking about the dollar being at the highest level since august of 1998 you know why that month is significant? long-term credit management went bankrupt that month. russia defaulted on its domestic debt we had a huge crisis and the fed phased out, and we are heading to an even stronger dollar, and so it is all going to end probably before the end of this year >> that might work then. if we get, if we keep strengthening the dollar won't that help tackle inflation, sri? maybe there's a method to this madness. >> it will help reduce inflation, joe, but keep in mind the united states is what economists call a relatively closed economy that means exports-imports constitute 13% of gdp.

but as germany exports 42, 43% of gdp in the currency doesn't have as mitch much of an impact on inflation as it would do in european countries. what makes a difference is all the monetary in the past and all the other issues than the dollar exchange rate. but the dollar exchange rate is very important for global stability. it is also important for u.s. s&p 500 company earnings which are now mostly coming from abroad, and they're going to see earnings decline as a result of the strong dollar. >> so as we see the data, do you expect the fed to become data dependent, and therefore not stay long enough with the tightening cycle sri

>> i think they will stay with the tightening perhaps slow down from a 75 basis point to a 3550 or 75 but they will keep increasing rates and the increased rates have to go a long way. if you say that 250 is the top end of the federal top today it has to go over 4%. the fed is going to be stopped when you have a huge credit crunch or when you have a credit event and some large institution goes belly-up that's when all bets are off go and load up on equities, because thereafter the fed is not going to pick up on inflation after that >> all right, thank you, sri, and we'll check in as we do. >> thank you, joe. good to be back you. when we come back, china's covid lockdowns continue we will get the latest out of

beijing and find out what it means for the global economy right after this break and a reminder for you, you can get the best of "squawk box" in our daily podcast. follow squawk pod on your favorite podcast app, and can you listen to us anytime we'll be right back.

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welcome back to "squawk box" this morning i'm in seattle, becky and joe in new york and we're about to head to beijing, nomura cutting its gdp forecast it would be down about 2.8% citing covid lockdowns in several major cities, including manufacturing hub of chengdu and shenzhen woo want to get over to eunice yoon. >> the 21 million residents of the southwestern city of chengdu along with the rest of china are waiting to see whether or not the authorities there are going to lift their lockdown as scheduled at 12:00 or noon your time as previously announced now the signs so far are not looking very good.

just based on the case load of the reported case wednesday for chengdu jumped to 121 from 90 the day before the cases are also rising in the two other big cities that people are watching, shenzhen as well as guiyang residents say that the movement on the ground is also pointing to a likely extension of the lockdown, chengdu residents had said that districts had been tighten tightening curbs on business and schools have started online classes. now the tightening restrictions without any word from the government authorities are really raising kearnconcerns the that they could end up like shanghai in a much, much more painful and longer lockdown. the latest economic numbers for august also showed the impact

that these covid curbs are having on economic activity. the exports missed coming in at growth at 7.1% year on year. versus what people are expecting of 12.8% growth and also a lot worse from july, a rise of 18%, and then throwing on top of that cities around the country have now been urging their residents not to travel at all during this weekend holiday. this holiday is called the mid-autumn festival, and it's really a big time for spending as well as tourism and travel. so without a whole lot of that, you don't see a whole lot of boost to the economy andrew >> eunice yoon in beijing this morning for us helping us understand what is going on there. thank you so much. joe? coming up, the new normal when it comes to returning to the office plus the results of a gallup poll on quiet quitting and then later our exclusive

interview starbucks founder howard schultz and incoming ceo laxman narasimhan. u'ay tuned yore watching cnbc this is the whole country covered today.

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quit quitting that is the act of only doing the mandatory task and not going above and beyond it is now at 18% the highest it's been in nearly a decade meanwhile ceos from companies have been asking workers to come back to the office again, but this time they mean business and joining us is joanne litton. good morning, joanne i'm trying to understand what quiet quitting really is, whether it's a thing and is it a function of a very tight labor supply where everybody just does whatever they want or is this a temporary what is happening? >> so, first of all, good morning andrew good to be with you. quiet quitting is a new name for an age-old practice.

the gallup poll you cited is interesting, because now they're saying half of people are thinking about quiet quitting. but if you look at a gallup poll before the pandemic, about a year or so before, looking at millennials, they found that 71% of millennials are not engaged in their work. which is basically the same thing as quiet quitting. so i think we've give ann a new name to something we're all feeling but has been around for time immemorial. >> you're saying ambition was never there to begin with? >> we're seeing this dissatisfaction that people have had with the workplace, but that's not something that's new. this is something that's been around doi think, though, when we're talking about what is the new normal going to be that we have an opportunity now to do something better with the workplace, to help people become more engaged with their work

>> let's talk about that what has to happen and the other piece is, can it happen if they're not physically at the office? how much of this disengagement that you're talking about is a function of not physically being next to colleagues? >> yeah, so the disengagement has been there forever can you actually have better engagement if we can get back to the sort of a new normal so first of all, let's put it out there that going back to quote-unquote normal, like old time, five days a week in the office it's dead. it's not coming back we're already seeing that we are sort of getting to a stabilization of sort of a new normal, right? now it looks like at this point a lot of companies are moving toward this hybrid remote, very often it's about three days a week and we actually see this in the evidence nick bloom who is the

work-from-home guru on all this research has found that about 30% of work days currently are now remote, which is a huge, huge change from before times. but what that also means is first of all we know from the research that people love this sort of remote work, the ability to have remote work. we know also that at least in one survey, the past sormajorito people would consider quitting if they were forced to come back five days a week >> to the piece of engagement f quiet quit something an issue, it seems to me it would be harder to get people to engage, i would think, if they're remote, maybe not. >> well, what it looks like now, right, is what you need, there are really good reasons to come back to the office, right? for collaboration, mentoring, creativity we know for example that columbia business school business research found that zoom is a creativity killer.

when you are trying to do brainstorming on zoom, the ideas are not as creative than when you do it in person. this is something that's going to be helpful. you do need to have some on premises one of the engagement issues has been so much remote and so up in the air, it's been very frustrating for everyone, frustrating for the companies, for the employee, and if we can get back to this, get to this new normal, a new normal of a hybrid workforce and figure out how to do that better, then we're going to be in a much better position going orward one of the thing, for example, one of the best practices that are emerging now are if you're going to do this hybrid remote it makes more sense not just to do it sort of scatter shot but to have your team or organization all be there at the same time. so if you're picking three days you all pick the same three days

you still have flexibility, but you also have the benefit of being together >> i want to go back, but i want to go back to the idea of quiet quitting, which is on the bottom of the screen here to the extent that there are people dropping out without their bosses either knowing or maybe their bosses do know whether you think that that is a long-term phenomenon and digitally, if the world is this hybrid universe, is there a way to engage those people in a way that you couldn't before >> sure, well, first of all, this idea that the bosses don't know what they're doing, look, you and i both know, right, we spent many years in newsroom i remember at the dawn, the height of facebook, walking around the newsroom and sighing that basically every young person was looking at facebook when they were supposed to be working. i sat in on a college lecture when my daughter was in college and every kid had their screen open to facebook this is nothing new, right it's not just because they're at

home but i do think, though, this is a key. what you're getting at is there needs to be a reason to come back to work and it can't just be aush terry. you need to be coming to the office for a reason so it doesn't feel arbitrary, which it does right now i think that the frustration that you're getting to is people have been working remotely they've been more productive they've gotten used to having this flexibility and suddenly if bosses are saying now you've got to come back, and they're like, well, why, and the boss is like, i said so. it's treating people like children so to get people engaged, you want to give them agency you want to have a reason to come back. you want, you know, and it's not just about sort of free food right? this is about, this is about -- >> joanne -- >> engagement and friendships and collaboration and mentoring. >> we want to thank you.

we have to quietly quit this segment, but i'm sure we're going to talk to you very, very soon again thanks so much we've got a lot coming up in the next hour, including this. our exclusive interview right here in seattle, live, with starbucks' founder and the new incoming ceo, and, as we head to a break, take a quick look at futures this. >> mo. yo

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morning. the nasdaq on its longest-losing streak since 2016. stock future coming off session highs in the last few minutes. we're going to show you what is moving right now and a vote of confidence target ceo committing to stay on for three more years details straight ahead plus, i'm live in seattle at a starbucks reserve store for an interview with howard schultz and laxman narasimhan. it's the final hour of "squawk box," and it begins right now.

good morning, and welcome back to "squawk box" here on cnbc, live from the nasdaq market site in times square, also we're out in the land of starbucks in seattle, land of nirvana, land of grunge rock >> technology. >> yeah, beautiful, sort of northern california. >> technology. >> yeah, i'm joe kernen with becky quick, andrew ross sorkin is reporting live from seattle andrew, tell us more about this big interview at 8:30, and we're coasting from 8:30 to 9:00, so i hope you have a lot of questions. >> you're not quiet quitting on us, are you? >> similar similar. my own brand no, i'll be here i'll be here listening, watching, thinking >> we've got the first interview with the new incoming ceo of

starbucks, laxman narasimhan he'll be joined by howard schultz. we'll have an opportunity to talk to him about this transition, what it's going to look like, the way both of them see the future of starbucks. of course all of the challenges that are confronting both the economy and starbucks itself, whether it's inflation and consumer demand on one side but then on the other issues around labor, the future of what these stores are going to look like, the shifting change in digital commerce and more. and we'll spend time with both of them, that's going to happen at 8:30 a.m. eastern time right here in seattle this morning, guys >> all right, and it's not raining today there, is it because it rained all day yesterday. >> raining here now. >> taand it's range here now. >> no, weather was great when i landed last night. >> a lot of those stereotypes. a lot of times i think places like seattle want that stereotype

>> keep everybody away, kind of like jersey. >> exactly like new jersey in the meantime, u.s. equity futures. >> ha, ha, ha, ha. >> u.s. equity futures at this hour, we've got a little red thing there at the bottom. the nasdaq had been up about 20 points earlier i wouldn't trust anything for very long in the premarket session. we were up all yesterday morning and ended up having a horrible day. what did i do now? did i say duty again >> no, reminded me of a joke >> probably not for air. typically my jokes are not -- >> things you don't trust. >> things that you don't trust when you're over 50. yeah that's a good one. i think i will tweet it out. maybe not. there's a ten-year, 332 on the ten-year we just heard from sri kamar who

said look for 3.5 for starters but that helps the dollar. >> theories about why we're seeing a little wobbling in the futures. in the meantime, let's get caught up son some of the stories. brian cornell has committed to remain target ceo for about three more years didn't realize it of about, but brian cornell turned 64 earlier this year, and they have a mandatory retirement age of 65, but with this, they are eliminating the retirement policy that was to initiate discussion of possible retirement of the ceo at 65. apple is holding a launch event today where it is expected to unveil its latest products including the iphone 14. and new overnight, russian president vladimir putin said germany and western sanctions are to blame for the shutdown of

the nord stream one pipeline he blasted a proposal bit y theu for a price cap on russian gas, calling it stupid. lettes 's get to the tradina ahead and the aforementioned mike santoli seems like the default move is down, most days. at least for the past week or so, mike >> without a doubt, market's been back on its heels trying to absorb what's going on just about 7:30 a.m. as becky was alluding to, you did get this article reporting that the fed seems to be leaning toward a three quarter percentage hike in september saying that the officials have done nothing to disabuse that idea the market was already pricing in a 60% or 70% chance that it would be 75. but it does show you there's a

little sensitivity still in the equity markets because the futures did give up maybe .25% 3900 on the s&p, has been a little bit of a wider-watched area represents this uptrend from the june lowe's. lows. we are getting a little oversold it's getting stretched a bit obviously nothing has changed the fact that we have the prevailing longer term that's why we're pinched in this area over the past two years, they mostly tracked pretty closely. crude oil with the ten-year treasury you see this divergence here

it's no longer about fuel's effect on inflation and inflation expectations it's about the fed trying to catch up about global yields going higher big question whether this can continue to de-link. you remember a few months ago, powell effectively told us gasoline prices equal headline inflation, equal what the fed has to take care of. that's no longer the cover story at the moment. they want to get to their target for funds fed rate we're in a conspicuous underperformer this is telecom cable, media, all the rest looking cheaper than it has at almost anytime since the years around the great financial crisis, whether the earnings hold up. we don't know. but that's something that used to be a defensive area, but the telecom stuff, cable, all that stuff not really working people very concerned about spending levels this those

areas, joe >> i've got a new way of feeling bert better about things. maybe the strong dollar idea is something that we can get on board with that's not, sometimes it's bad, bad for multi-nationals, i understand that. but in the long run, the last thing you want is a sharply dropping currency. >> well, it's certainly part of the equation it's part of how fed tightening campaigns go up as the dollar goes up. it restrains domestic inflation on prices and other thing and it is a tightening of financial conditions that's what the fed's looking for. makes it tougher to finance stuff. at a time when global growth is seeming like it's a little bit

iffy, it doesn't necessarily help along that front. >> yeah, i guess that's one of the issues i don't know there's not a lot of great options, mike. flip a switch on inflation and leave the economy alone. >> blunt tools, as they always say, and that's what they have to wield >> okay, thanks, mike. when we come back, we're going to get you ready for today's apple product launch event. analyst tony cech noggy will join us right after the break. and then don't miss our exclusive interview with the founder of starbucks, howard schultz and the incoming ceo, laxman narasimhan. "squawk box" will be right back. e your audit system? so you tap ibm to un-silo your data. and start crunching a year's worth of transactions against thousands of compliance controls with the help of ai. now you're making smarter decisions faster. operating costs are lower. and everyone from your auditors to your bankers feels like a million bucks.

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every click you take, every move you make, every step you take, i'll be watching you. the internet doesn't have to be duckduckgo is a free all in one privacy app with a built in search engine, web browser, one click data clearing and more stop companies like google from watching you, by downloading the app today. duckduckgo: privacy, simplified. welcome back to "squawk box," everybody. we've seen the futures this morning turn a little bit weaker even since the last break. dow futures are down by about 52 points nasdaq down by 28. the s&p off by 8.5 there was a story from the "wall street journal" that crossed about 45 minutes ago eastern time suggests that the fed is all in on this 75-basis point

hike now w more on a preview of what to expect from today's apple event, we've got tony cech n noggy. a lot of times you'll get this buy the rumor, sell the news situation. what have you seen with the stock? what do you expect what does history tell us happens next >> good morning, becky so you're right. apple has this unseasonably pattern where it outperforms in iphone announcements we've seen that in the last three months 15 out of last 1 6 months, the stock has outperformed during that period by an arm of 15% it's amazing that we have a

seasonal trading pattern which is anticipatory and coincides with a period where there's likely not going to be much surprise in apple's results, and typically what happens in the three months after the apple announcement is the stock doesn't do much. investors are waiting to seat strength of the cycle which we typically only know in december or january >> we know there's going to be a new iphone 14, that's the expectation today. what, what do you think in terms of what you will be listening for most closely what moved the needle for you? >> i think one of the big questions is price and apple will be essentially announcing upgraded versions of the existing models that will be replacing the iphone mini with an iphone max, not a pro version of the max, just a base iphone 14 max but the real question, i think, is pricing it is an inflationary

environment. some of apple's suppliers have talked about price increases and that's the big question, becky, is what might demand elasticity be for the iphone in the face of the prices and a weakening consumer and what might it be on the back of two very strong years for iphone >> what's your bet >> we're actually a bit more cautious, to give you some perspective in fiscal year '19 and '20, apple sold less than 200 million iphones. in the last two year it's sold more than 230 million iphones. we think part of that is consumers were not going out and were largely at home and, you know, they, you know, employment was good

there were stimulus checks, et cetera, and we feel that many of those things are reversing, and the comparison is very difficult. so i think it may be more difficult for apple to eclipse over the next year 230 million phones or 240 million phones, which is what they've seen the last two year. >> forget about raw numbers. what about the profitability on those phones if they do raise prices, will that make up for it >> it certainly could. there are lots of cross currents typically, apple puts a lot more content in each new phone. so in 2015, the arm prverage pro a phone was under $600 today it's over $840 the consumer ultimately wincs. b better connectivity. so a price increase doesn't necessarily lead to higher

margins. i think the other really important question is what's the mix of iphones going to be the iphone max and pro max in particular are much more profitable units for apple, because not only is the base model more profitable, but typically, an affluent consumer who's buying a pro or pro max is also buying more storage and that storage has about 80% margin for apple and so there's a big question, particularly, in this economic environment where you're still going to have the same rich mix of higher end apple iphones, ie the pros and pro maxes >> i guess that's the question with the consumer. you're watching sqconsumer goods companies and retailers. the high-end consumer is doing just fine. it's the lower end that's struggled. that's the huge unknown here, how apple's going to fare with all of that. >> absolutely. anecdotally we hear the low-end

consumer, we heard it interest hewlett-packard that they were seeing more pressure than high npcs you've had consumer companies like lululemon fare pretty well that target high-end consumers the question is, is this analogous to, and certainly by no means in magnitude but analogous to something like peloton which target as high-end consumer and really benefitted from covid and people staying at home does apple have something analogous that happened where high disposable incon, pme, peoe upgrading their phone to a higher rate, perhaps that rate is not the same this year. >> to >> tony, thanks. >> we're just a few mi minutes

away from our interview with howard schultz and the new ceo of starbucks listen to all the hilarious outtakes no >> we'll be back

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and other african american and latino entrepreneurs across this country because they give access to networks, business opportunities and capital. . welcome back to "squawk box," everybody. we have seen a turn in the

futures market this morning. right now the dow future's off by about 50 points after being up by about 60 points earlier this morning s&p down by about 8, the fed is going to be eyeing a 75-basis point interest rate rise maybe not a huge surprise to the market, but the idea that they're hammering home and not backing off the 75-basis point interest rate rise could be the reason you've seen this turn in the meantime, california residents are preparing for more power outages today as the state's record-breaking temperatures are projected to continue yesterday afternoon, california's grid reached peak te demand at over 52,000 mega watts. the maximum capacity is 57,000 mega watts while california was able to avoid rolling outages thousands

were left without power, a lot of the outages described as heat related, meaning that the heat damaged equipment. another flex alert is issued for today and residents are urged to conserve energy in order to reduce power outages andrew >> thanks, becky i'm live at starbucks' reserve store in seattle this morning. it is sleepless in seattle at this point we'll bring you an exclusive interview that you can't afd to miss with howard schultz, its long-time leader and the new leader, laxman narasimhan. in just a moment

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welcome back "squawk box" made the round trip this is where futures typically are in the morning they traded higher, but now we see red arrows with the dow down 63 and the s&p down about ten points, andrew >> thanks, joe, we are live in seattle this morning

starbucks recently naming a new ceo to take the helm of the company after howard schultz s stepped in as interim ceo, nice to see you here, and incoming ceo laxman narasimhan. thank you for having us. we were talking about your name and the idea of pronouncing it, by the way, and then you said there's an easier way to do it >> i have a barista name and it's just lacks. l-a-k-s. and they never get it wrong. >> they never get it wrong this is big news last week and big news and a lot of anticipation about who was ultimately going to be the new ceo of this company, howard. take us through, how did this happen, how did you get to know him? how did you decide this was going to be the next ceo

>> first, it's a great day for starbucks. i feel like we have a number one draft choice and so excited. 35,000 stores around the world our ambition has never been greater than it is today a lot of people interested in this job. melody did a great job the search committee did a great job. but when we met laxman, what i saw in him was somebody who is, a, a global citizen, a world class operator, an entrepreneur and has got that dna all over it in everything he's done. but most importantly, someone who's steeped in humility and understands and respects the culture and values of starbucks coffee company he's going to be a great, great leader for the future of our company. >> you are going to have to put earmuffs on. it's hard to hear all this stuff, especially someone who's

modest about the stuff but history here, worked at mckenzie, pepsico, we were talking by the way, you worked with brian cornell we are talking about brian's news this morning, and remarkable turn around at wreck et you said this is it >> look at his experience, 19 year at mckenzie, worked at pepsi. in every aspect you can check every box as a world class operator but when he met our people and when i walked the stores with him, what i saw was somebody who truly understands the emotional connection that our people have with our customers he understands what it means to be a merchant. our ambition in china has never been greater than it is today. we open more than one store a day in china he has significant experience in china. but the partnership that we're going to create in terms of the future of the company and he

understands the ambition we have, well beyond where we are today. >> and you are doing something quite unusual, which is first of all, you're starting in october, but you don't take over the actual role until april. >> correct >> what's behind that? and what are you planning to do? i know you're going to go on a tour of stores with howard over the next several months. >> well, howard and i co-created this essentially, you have a sitting ceo, but as of october 1st, i have no p&l, no budget, no people reporting to me it's actually a liberating experience in so many ways, and it's a unique opportunity for me to apprentice very close to an iconic founder in an iconic company with an iconic brand and what we're doing is a very structured structured im commercial process it's about understanding the support center, what all happens there. it's six months really of

learning and getting steeped in the culture. i have a culture coach with me pretty much the entire journey at the end of it, i'm ready to take over and will do so at the early part of next year. >> there are a lot of ceos who say this is a crazy 200way to d it you're going to spend time with him. there's going to this be transition period, can you say i don't know if i like this. >> no, we have spent a great deal of time together over the last few months. we know each other very well but i think it really speaks to the humility and the confidence that we have in each other we have in the future of the company, and we're going to take our time, be very deliberate and get laxman in a position to succeed. and i think we're going to have a great time >> what is the part you're worried about most this is a big job for you. >> sure. i think first of all, it's a very special company and nothing in my past would

fully prepare me for it, but at the same time, there are a lot of things i've done in the past that could prepare me for this company. the one thing i want to be sure of is that there will be investments made in order for us to improve the consumer experience so decisions he's made made me a lot more comfortable so i'm at peace. >> how is this going to be different than last time, as they say, howard and the reason i ask is there have been periods where you have left starbucks, you've appointed a new ceo. for whatever reason it didn't work out and you decided i had to come back >> yeah. >> that's now happened twice why is this different? >> i'll tell you why this is different. i'm nef i'm never coming back again because we've found the right person but the ambition of starbucks is much grander than before the leadership team is much different than ever before

and also in 2008, when i did come back, starbucks was in a much different position. we did not have demand in our stores we have record demand. laxman's coming this with the wind at hayesis back. so the equity of the company, the position of the brand, china is very, very different, but i'm not coming back a third time laxman is here as i said before, we found the number one draft choice, the best possible candidate in the world to lead starbucks. >> the wind is at his back, but there are a lot of winds and challenges that are confront ng the larger economy and arguably starbucks as well. inflation being a big piece of that, china being a big piece of that and the headline that starbucks is in the middle of labor and unions and what that's going to look like. >> let's take it one at a time first off n, in the 51-year

history of starbucks, we've always played the long game. we've been in china 21 year. we occupy a position like no other western brand, about 6,000 stores we're opening one store every ten hours in china the situation in china is opening up so our position there, china will be much larger than the u.s. when we're all said and done in terms of inflation, we're, we've operated, you know, with inflation and that headwind many, many times it's going to come down, and we're doing fine in terms of the union, it's very simple we have a different vision for our people and the customer experience than a third party. >> what's your experience with unions, by the way >> i haven't started here, i have worked in a variety of manufacturing environments, and in a manufacturing environment you clearly have unions. have i had experience working with them? yes. >> are you pro union, anti-union >> let me tell ah you a small

story, when i dime mecame to met howard, i spent a weekend with him. he took me to the outlet here that actually make drinks. and i met a partner, and they said you need to try one of our new thirngsngs, i loved it. sunday morning he took me to pike place >> original starbucks. >> the original starbucks. and nicesha was there, and i sad i'll have my espresso with the hot milk on the side i'm here looking at some places as well as some care for my mother, but i went to the pike place store yesterday morning and niesha was there she said when the announcement came i pointed out that i know this guy that moment of connection over a cup of coffee is what this company is about

and i have to tell you one thing, that there are a lot of things that have hand over the l covid. i think that if we can create the magic all over and we can fulfill our promises to our partners, the opportunity for the company is unlimited >> speak to this, though we talk about it on the show almost every day there's some headline about some store that want to unionize, doesn't want to unionize is something happening here? you have a reputation as somebody who was relatively progressive, especially when it comes to the benefits you provided employees early, i'm talking about health care, education, all sorts of other items, and people would have described you perhaps even a couple years ago and said howard schultz is woeke, right? that's what they'd say >> that's what my kids say

>> and here we are now, and it appears you're on the other side the folks in the union world would say how is it that this guy that we thought was quote woke is not woke with us >> listen, we're certainly living in a time when there is a cultural and political change in the country and for that matter many places outside of america star starbucks has a footprint avenue where. we're in every community in america. we have the equity of the brand exceeding the expectations of our people and our customers you're right, we created health care, free college tuition, equity and now all of a sudden something show up that's a little bit different than what we prepared for. but there's 9,000 company-own stored and only 300 have been petitioned so i think there's been a lot made of this that's probably

greater. it's not, it's not going to be something that is going to significantly change the course of history at starbucks. >> strategy question you've often talked about places like this as a quote third mace bet place between the office and the home people would come and see their friends. >> you're dating both of us now. >> but all of it >> yeah. >> and then the pandemic happened and you have more people ordering online, on their phone, picking up and taking on their way, getting in the car and going through drive throughs what ultimately happens to the third place? >> first off, we have record demand right now throughout our stores in the u.s. record demand. despite all this noise about the third place. so we're meeting our customers on mobile order and paickup stores and they're still

relevant in terms of third place, but it's not limited to the four walls of starbucks. laxman said it so well it's the emotional connection people have with the customer. to demonstrate that we understand the change. but i wouldn't be so fast to say the third place experience is dead >> what does that store look like to you? what's the difference? >> the difference is we will have different formats for different pieces of real estate that will be relevant to the customer's needs >> what about pricing? we've been talking a lot about inflation. i'm pointing at my cup of coffee this morning it's not a cheap cup of coffee and the question is were you think there's going to be consumer demand and how much price elasticity at this point that you think you have. >> we haven't seen any attrition whatsoever that demonstrates to us that the price of starbucks coffee is not something that customers want to give up. so the demand for star bucks,

it's quite strong. >> what's your sense about inflation? you're seeing it on all sides, the company you're about to come into and you're seeing it from london >> i think what you're seeing at this point in time is the consumer in the u.s. is holding out still. there are concerns, but if brands have benefits that are superior and provide an escape, i think skconsumers are sticking with them for now. >> i want to ask about your role at pepsi and mckenzie. this is a little bit different not just in terms of the size and scale but in terms of the customer facing community that is the marketing department of starbucks every day and how you think you're going to relate to those people and what that is

going to be like and if it's going to be different you think than what were you doing at pepsi or reckitt >> star bucks is a very unique company. but if you look at the experience at reckitt where it was about unleashing the power and passion of 46,000 people around the idea of protect, heal and nurture in the pursuit of a cleaner and healthier world f you look at pepsico latin america, performance for purpose, 75,000 people and if you look at whatly i hat do, i recognized very early, and brian cornell was a great coach, just the idea that the connection with people is very important. and in latin america i knew that i was indian american, of indian origin but the connection to the people was really quite important so i actually learn spanish from the ground up. it was very important for me to connect with the frontline deliver the speech to them at a

sales convention the minute i did thank there were 60,000 of the 75,000 people who knew i cared so i could go with the route driver and they would tell me about their life and their life story. it was very important for me to connect with that frontline. i think that part of the skill is quite portable. and i realize that now when i interact with partners here that they just want to have someone who understands. >> you're going to put on the green apron and get behind >> yes show your barista skills >> i'm quite nervous about, it's the thing i'm most nervous about, because i want to do that really well. >> you've had 30 hours of training already >> no, no, no. i'm going to when i come in and do this program of im commercial >> are the cold drinks harder to make than the hot drinks >> no. but it's demanding >> i want you to weigh in on this, howard we talked about getting people

back into the office, and this is -- >> here we go. >> we're post labor day now. this is a debate happening across the country how's it going? are you getting people back to the office? >> i think i'm making more progress today than when we talked in d.c. a couple months ago. i've asked people to come back i made a comment that went viral, that i'd do pushups, stand on my head, anything i can. we're collaborative organization we need to be together also i want to respect the fact that 200,000, 300,000 people in the u.s. are working in our stores every day, in our roasting plants. i want to respect them i've asked our people to come back about three days a week, and they're starting to come back i i'm really pleased with it >> do you have a similar view? are you allowed to have a different view in. >> i have my own view.

>> after we go through this five, six-month period there will be one leader at starbucks, and it won't be me it will be laxman. laxman will be the definitive decision-maker and ceo of starbucks coffee company >> two more quick questions. kevin johnson. >> yes >> when he took over hundred lef you had left the company and the board you're staying on the board. >> i'm staying on the board and will do everything i can to support laxman. >> what's your favorite coffee >> macchiato >> that's fancy. >> it feels and tastes the same. >> by the way, how big is starbucks in india

>> 350 stores. you should say what happened about the announcement in india. >> there have been many, many memes, many suggestions like you would not believe. >> what kind of memes? >> we're talking about, you know -- >> how proud people have been. >> but the memes being new coffee >> i've got a lot of suggestions, a lot of suggestions of what i need to do >> okay. >> i come from a hometown of pune, and they tell me i should shut all stores from 1:00 to 4:00 in honor of my hometown that's not happening, by the way. howard, we're going to call you laks i know you guys are doing a lot next week. >> thank you for coming to seattle. appreciate it. >> congratulations thank you. coming up. >> futures turning negative in the last hour or so. and steve liesman joins us next to talk about the potential fed oc, mi rinon are weighg stkscongight up.

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futures turning a little lower this morning you can see the dow futures off by about 54 points below fair value. this all started, that turn you see shortly after the wall street journal published this piece on jerome powell's inflation-fighting pledge, saying it could tee up another

75-point rise. i guess it's not a huge surprise, but you hit the market on the head one more time and maybe they paid more attention >> another bump on the noggin. it's not just the 75-base point hike but reprice the peak funds rate up towards 4% if you take a look here, the april 23, it was low as 340 in early august not only is this 75-point basis hike baked in, but there's a 90% chance that it's followed in november by a 50-basis point hike we are on track to be up near 4% by year end. what's happening is that powell looks to be leaning against the interpretation of the friday jobs report, it is full steam

ahead. overnight cleveland's master comes at ten brainerd speaks around 12:30 and a speech by michael barr at 2:00 i think the messag reacting you can see it throughout markets internationally. the dollar is surging again, the dxy near 110 >> yesterday the dollar was at the highest level since 2002 you should watch the dollar index, treasury yields also at the highest level in some time, i think since 2016 keep an eye on all those things. the 10-year at 3.4%. get ready for the trading day. we'll bring u meyoso stocks to watch. "squawk box" will be right back.

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welcome back to "squawk box" this morning we've got some news from one of the head liners at the code conference in los angeles. yesterday, mark cuban spoke out taking a shot at elizabeth warren over a push to tax

billionaires >> i don't mind being taxed more i wrote a blog 20 years ago saying it's the most patriotic thing you can do after military service is pay your taxes because that's what allows everybody, you know, to live and to prosper but, yeah, the idea to just soak the rich, billionaire tiers, screw you, elizabeth warren. you're everything wrong with politics >> okay. okay, then all right. >> mark cuban never one to hold back, becky and joe, about what he thinks. but he said it was patriotic to pay taxes. so, i don't know i don't know what you think. >> i think we need to figure out what we've talked about again and again and again, and that is never having -- never having to take the large loans and live high off the hog and you never really have a taxable event.

you know, that causes people like elizabeth warren and other policymakers to try to answer that question per se i don't know how we do it. but i understand it. so, i understand what cuban is saying, too, and i'm answering people on twitter, elon musk, for example, $11 billion they can get all their friends on twitter >> yep >> they can live for the next gazillion years and will never contribute to the u.s. treasury what elon musk contributed last year they say, well, we have government subsidies. >> i saw that. >> i thought you wanted to get to help with the transition. they go, yeah, yeah, i'm for it. snowflakes they don't know what they want trent to transition. but seriously he created that company and $11 billion ended up at the u.s. treasury last year and he's going to pay it again you know that. just a lot of people that are complaining, you know, probably,

you know, they should be happy there's people that have been that successful for shareholders, for employees, they've created companies and wealth billionaires are not a blight on society. >> no. but paying taxes is a patriotic duty i agree with the first part of his statement. the politics of envy is not worth it >> i want to be him. i don't want to take it from him. i want to be him some day. >> back in the soup, the fed's going to raise by 75 basis points and the market goes down. there's never -- it's not being desensitized to what's right right in our face, maybe maybe it's not in the markets what the fed has to do >> well, i don't know. there's so many unknowns right now. it's not just the fed. that's the elephant in the room.

but look what happened over the weekend. gazprom shut down a little indefinitely china is closing again because of covid and they cut their triple-r, the lending rate, because growth is so slow. then you have the fed now thinking about 75 basis points i think they can do 75 basis points after you look at the nonfarm payroll numbers last friday if you saw the wage numbers, it was a 5.2% up year over year home prices are up 18% year over year rents follow home prices so they're a sticky part of the inflation story and that remains. the fed is focused on getting that under control i don't even know if they can get it under control, joe, to be honest >> what would that portend for the market, the s&p at 3,600 so, that was the lows. maybe people have said we'll go

through the lows but you'd be much closer to an ultimate bottom at 3,600 unless, you know, you really think this was going to get serious in terms of, you know, not being able to handle inflation and going higher and higher and stagflation, and you can factor in a lot of negative outcomes. but 3,600, what would you -- would you be buy at that point what would you be dabbling in or would you? >> we could feasibly get back to 3,600. we're in a trading range we don't know how qt will impact the liquidity many the market. it will drive things up. we're in this trading range. i think you want to focus on being diversified, owning quality, free cash flow companies. i loved the interview with starbucks, even though i own that one the valuations are reasonable. i think you just want to very

much focus on fundamentals where you feel confident where do i feel confident in addition to those two names? energy, even that $50 oil. i'm not saying it's going back there but even there companies in the energy sector will still be printing money and the free crash flow story res main and the valuations are very attractive i think the lng buildout is very interesting, like a ford or a n nex nexterra, for example. agriculture is in a tailwind financials are cheap so i think you can pick your spots within that as well i think there are places you can pick, and don't think you necessarily need to jump in with two feet i have cash. i have patience. and i'm looking for fundamentals that to me i feel good about and the earnings stories i feel pretty good about. that's the biggest question mark at this point is earnings, where are they going >> right thank you, stephanie

>> thanks, joe let's get a final check on the markets today. you'll see right now after opening -- well, opening in the red, turning to the green before we opened the show at the top of the hour, you're now looking at red arrows again, down by 38 for the dow, off by 4 1/2 for the nasdaq andrew, safe travels we'll see you tomorrow it's time for "squawk on the street." we'll see you. >> good wednesday morning. welcome to "squawk on the street." i'm carl quintanilla live from the code conference in beverly hills. david faber, sara eisen at the new york stock exchange. jim has the morning off. looking at the futures, there is some weakness as "the journal" runs this piece that argues that 75 basis points is still very much in the cards but not too far away from the flat line. big tech front and center. alphabet ceo hinting at potential counts