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, the head

count, awaiting apple's big phone reveal today >> and that fed drag on wall street, the "wall street journal" story futures are lower on continued fears of higher rates. goldman has a warning. >> and bitcoin hits its lowest level since june as the market cap falls below $1 trillion. >> we'll begin with the code conference very big day for tech at large between code, one of the pre-eminent tech conferences in the world, and the apple at 1:00 p.m. eastern time. steve kovak is in cupertino. but google and alphabet, an interesting conversation largely guys about the efforts to make the company about 20% more efficient and definitely not ruefuling out the idea of cuts to head counts he cites an uncertain macro and with that, you have an uncertain ad spend and uncertain consumer. even as some of their internal

surveys show dissatisfaction with ownership here's what pichai said last night. >> you look at it end to end, figure out how to make the company 20% more productive. >> meantime, the company has an effort called simplicity sprint, trying to reduce complexity. talked about matching up some competing element to their music business and also talked about competition and the way he thinks about competition these days it's not necessarily coming from their gigantic rivals, but in his words often coming out of nowhere. >> the thing about being competition comes from nowhere, none of us were talking about tiktok years ago but open minded. the big areas we do with

knowledge and information and computing, obviously we compete with amazon, apple, microsoft, facebook and so on, emerging companies like tiktok and youtube. so i think it keeps growing, not even mentioning the competition from china, alibaba too. so there's so much investment in tech, it is hyper competitive with big tech companies too. >> on "tech check," we'll talk about that the conference is making a statement with the lineup this year andy jassy of amazon, bob iger from disney formerly, tim cook, secretary buttigieg, governor newsome, andit it's happening a we get two more dates for product announcements.

apple will have a hardware event on october 6th, maybe some pixel phone, a pixel watch, and meta announcing a headset event on october 11th where it will perhaps get a headset. all of these new products are coming into an environment where people aren't necessarily sure how consumers receive it it will get interesting. >> yeah. a lot going on there, carl i was taken by those comments from pichai in terms of competition, given everything we know that's going on in the regulatory front of course alphabet is under the microscope when it comes to that seems to be almost talking to lena kahn saying, come on, things are pretty competitive as it is. there are those that would argue on that, but it was interesting for them to list all those companies he sees as competitors. >> it will be interesting to hear how jassy and cook, two examples, will return service and talk about how they view competition. it will be a really packed day a little lighter tomorrow, but we will be here in the morning

tomorrow as well, sort of wrap up what's being said guys, every year cold sort of has a narrative thread some years it's about innovation, some years about regulation, some years about macro. we'll see what this year is. >> that's how the comments struck me on production and potentially layoffs or cost cuts, because that's got to be a theme there, carl. google saw 13% revenue growth. a lot of these companies aren't holding that kind of pace of growth it's interesting i went to a tally to find some of these companies that have been cutting you'll talk to snap's ceo. that's one 41,000 layoffs announced by technology companies in terms of mass layoffs so far this year according to a crunch base newsal ti and it hasn't shown up in the macroeconomic data. jobless claims are up a little bit, but it's such a tight labor market, so distorted by covid and thislower participation rate that the tech sector almost

is operating in a vacuum when it comes to the some of the pain. we're going eight days in a row now. >> we are. it was interesting to see him hear 20% more productive how you get there is a key question bringing of macro factors, let's move to the markets. futures are lower ahead of the open about 25 minutes from now in the last hour we got a "wall street journal" story basically saying the fed e fed appears to be on a path to raise rates by 75 basis points this month, in the wake of powell's pledge to reduce inflation even if it reduces unemployment hawkish comments from jackson hole less than two weeks ago you have to watch who writes these things, and people do. >> nick. >> it's almost seen as saying, okay, now it's going to happen >> because that surprise 75 basis points hike they did not telegraph the first time they did that was telegraphed just a few days before by the "wall

street journal" reporter look, the stock market's been straight down since jackson hole the dollar has been straight up. we've had a 20-year high on the u.s. dollar. have you been watching the scrap nies yen >> i have, actually, and i think of you every time. i've also watched the euro trade below a dollar >> 99 this week. >> many people thinking about shopping sprees or vacations, although we're back at school now. i did notice a 24-year low on the yen. >> because they're not pushing back against it. they're fine with it meantime, interest rates continue to rise in the u.s. we get word of a more hawkish fed stance better economic data, which i think is also confounding a lot of people. the services data from ism yesterday at a four-month high, surprising, gives the fed more room to fight inflation. yesterday i had an interview with the unilever ceo. >> i watched. >> you did >> i was surprised and you were

i think too when he seemed to indicate he expects inflation to get worse, not better. >> he basically said peak inflation is a pipe dream. all our costs are going up and we're still raising prices they make everything from dove soap to hellmann's mayo. we have a clip >> we've seen the u.s. to be fairly resilient i think household savings levels and the fact we've not yet reached the completion means the u.s. is doing well europe has been one of the softer parts of the world. by and large, there is a limited down trading the example that you gave of people moving from body washes to bars is an exception rather than a rule. >> so he said the u.s. consumer remains strong despite the fact we haven't seen the worst of inflation. carl, i'm wondering what the vibe is there. you mentioned the layoffs, the valuation markdowns we've

started to see, the nasdaq losses, which are continuing to pick up again as interest rates rise are people feeling gloomy? >> i think that's a tough sell, sara, and i wond aert what point some of these corporates are using the historic or at least the memory of high inflation as an excuse for a little more pricing. look at what goldman said this week about the likelihood of a soft landing getting better, pretty good services print yesterday on ism today susquehanna says people are hesitant but there's not a lot of downside being priced in. we have to scrutinize the corporate commentary in the next few months about the idea prices are going higher from here >> yeah. you know, you know what, carl, we want more on the markets and the overall state as well of the global economy so let's get joined by jim o'neill, former chairman of goldman sachs asset management, former uk treasury minister.

now he's just a guy. but a guy we like to talk to because we always enjoy his thoughts and opinions. jim, there does seem to be a pretty significant wave of negativity, certainly since chairman powell's comments not ten days ago in jackson hole what are your thoughts right now coming from europe energy star of europe, we hear scary stories about what may be coming this winter >> it's nice to be on, david, and thanks for kind intro. it's nice to be thought of just being a guy these days you know, it's pretty hard to find an optimistic story to say about europe, which, when i listened to your previous question of my past accounting, maybe it's that bad that we can't think of anything that's going to be worse than it is but certainly right now, the only debate in europe is who's

going to be in the bigger recession first, here in the uk or on the continent, et cetera, et cetera. and of course we have the ecb tomorrow, going to probably raise rates 75 basis points, bank of england facing a remarkably superficially, at least, expansive fiscal policy from the incoming trust government, probably going to accelerate rate hikes more, et cetera, et cetera, et cetera. we don't have the surprising ongoing strength cyclically as your latest ism numbers show just today and that's before we even get to china, which is looking pretty grim as well, of course. >> yeah, it is before we get to china, let me come back to you on more specifically on the energy situation, what the impact you see. obviously consumers in the uk and across the continue innocent will be facing higher bills. you have to prospect of utilities being in a difficult

pinch perhaps if they aren't able to get recompensed, so to speak, particularly with higher natural gas prices what are your expectations, jim, both on the consumer side and then the industrial side with that prospect as well that certain manufacturing plants may not be able to go full out >> you know, it's so bad in the uk for the past month being more and more serious discussion about going back to the days when i first got out of school and going to university, when we had things like a three-day working week with enforced closing of factories when there was a lot of factories in the uk and that's the kind of mentality that people are having to think about. it is truly incredible however, because of that, and because of a colossal increase in gas prices, we're now seeing policymakers consider pretty dramatic things. the uk government tomorrow,

after suggesting they weren't going to give any handouts, appeared to be leaking that they're going to come up with a subsidy package which is on the same magnitude of what they did during covid to protect employment so we could be close to certain aspects of an inflection point here, particularly in terms of what it means for headline inflation, because if they go ahead as planned, and germany has just announced something similar a couple days ago, it certainly means the damage to individuals from cost of living increases and therefore inflation won't be as severe as everybody's been talking about until literally yesterday. but at the same time, and what adds to the complication of it, because it involves enormous cost in terms of more fiscal issuance, the uk bond market is increasingly sensitive to all of this partly because of course

touching on what i said earlier, the bank of england will probably accelerate the degree and scale of its rate hikes a bit like the fed appears to be flattening so the markets have got all of that to worry about too. >> everybody we have canada later this morning. some are expecting as much as 100 basis points on a rate hike. jim, my question in this environment is can the u.s. avoid a recession in 2023? because if you look at the bond market pricing, credit spreads, ois swap, not pricing in a recession. and they expect the fed to stop hiking in march 2023 is that realistic? >> i mean, you know, as a guy, am i allowed to say who knows? >> yes no >> it is absolutely fascinatifa. these days i have the liberty of trying to keep as open minded as possible something i've put out on project syndicate late last month, i find myself especially

talking to you guys a day after the uk policy development that it might just well be that the underlying inflation environment is not as bad as people are talking about. i listened to your -- some of your interview with the ceo of unilever, and i suspect something that carl said, that these guys are now building on the story of it to try and get bigger profit margins rather than the inflation picture a lot of food prices around the world are actually down sharply from six months ago. and if you take gas out of it, oil prices, you know, are some way off the peak from some months ago too and crucially, like i keep saying along with you guys, i watch the five-year michigan inflation expectation survey like a hawk. and that thing isn't budging it's come back down to 2.9%.

i would have thought the fed would be watching that as closely if not more closely than i do from what i remember. so it's not impossible, sara, that the inflation picture might -- >> yeah. just before we let you go, because we're out of time bufshgs you seem to be building an almost positive case for equities or am i getting too far ahead of myself here >> you know, i'm not there yet in my mind, but it's been very easy to be negative for the past nine months. it seemed pretty obviously to me late last year we were going to go through some version of what we've gone through and of course there's lots of reasons to be still worried but it seems it's all a one-way street and i'm not sure the underlying inflation environment is as worrying as so many say. sara was hinting at, you know, the fed also is obviously consciously watching its own -- the financial conditions it's

creating, and it ties a lot with the u.s. so if we start to see inflation turning and inflation expectations continue to creep back down, you know, then i think the market's got a better chance of putting in a proper base that's probably a bit premature right now, but my mind is drifting that way monopoly. >> got it. jim, always a pleasure thank you. >> thanks for having me on, guys good luck. >> thank you >> just a guy. when we return, the apple product event set to begin in a couple hours nasdaq going for its eighth day in a row of decline. actually, that's higher. we'll see if the gains can hold and break the losing streak. dow under a bit of pressure. more "squawk on the street" straight ahead ck we can rely on. to be strong. to overcome anything. ♪ ♪

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apple's product launch event set to get under way in less than three hours from now. the company expected to unveil a new range of iphone 14 models including a pricier pro version. also said to be in the mix, updated watches including one with a larger screen we'll be watching for what will probably be called the series 8. interesting piece, reuters saying the product wave is hitting consumers at an uncertain time but iphone has been rolling out phones like this since the 5 well practiced at it, david.

>> they've defied what has not been a strong market for phonphones the rest of the market went down 9% but not the iphone. it keeps chugging along. but you have to wonder in this current environment is things will change. >> the nasdaq 100 down 26% what are they doing on pricing asps and something a lot of things analysts are washing, web bush's dan ives says he expects a 114% price bump to the 14 because they're dealing with inflation and some of the cost pressures as well. but to your point, can they pull that off now in a time where the economic environment may be weak weakening? >> yeah. also you could argue they've tried to educate the street really over a number of years now that asps aren't the end-all be-all they were a decade ago,

that it's a lot more about subscription revenue and services revenue one thing we are unlikely to get if you read the trade press is some kind of ar/vr headset the street kind of got ahead of itself hoping that was coming this fall earlier in the sum eshs but we'll see cook is speaking at code today and they'll discuss in large part the legacy of steve jobs with jony ive and lauren powell, david. maybe there's a way to incorporate jobs' pretty much unparalleled ability to create surprises in today's event >> that's going to be a good event. very interesting conversation i'm sure >> watch pro people watching the watch pro because they'll announce this higher-end sort of watch for mountain climbers, people not like me. >> yeah. >> surprised me. >> yeah. the series 8

and the watch has evolved from, remember, guys, when it was first rolled out, sort of a luxury item, then moved to fitness. we'll see to what degree they incorporate elements of that we'll talk bit coin and the slump below 19k and what mark cuban said about it at code last okt e t. lo athpremarket as we kick a very busy wednesday off. "squawk on the street" is back in a moment. businesses have to find new ways to compete in order to thrive in an ever-changing market.

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all right. welcome back we have about a minute or so before we get to the opening bell here for a wednesday. what jim and i like to call hump day. it's b it's been a short week what are you watching? >> the 10-year note yield because it is a little lower today which may offer some relief that's not what we seif seen in recent days. got about 3.30 but the fed is going to keep going with its big rate hikes and the economy looking better than expected and the rest of the world will follow suit with interest rates including a big decision from the ecb out tomorrow that's coming down just in terms of where we stand overall on the markets, we've given back -- the s&p has given about a half of the gains we saw during the midsummer rally, 17.5% surge we saw

it's given back half basically since jackson hole when the mood turned sour. >> here at the big board, we count you down four, three, two -- there it is. [ bell ] over at the nasdaq it's power integrations it's power conversion company. sorry. let's get to newell because we mentioned it off the bat there as a laggard the company came out and lowered its guidance essentially you know, a lot of different consumer products including for back to school >> elmer's glue, they make sharpie markers, rubbermaid, garbage cans, yankee candles it's all over the map. >> yes >> it's little more consumer discretionary than the other

staples like a procter & gamble or a nestle, for instance, but the comments were interesting from the ceo about why they lowered their revenue earnings, margin guidance. they blamed it on retailers, really, and the fact that consumption trends were pretty solid. they said it was driven by retail destocking while they're optimistic about back to school. they pointed out categories doing better and worse better, writing and commercial solution, worse, home appliances and solutions, including candle, i would think, home fragrance. i don't know >> you could make a decision on a candle. >> people aren't spending as much time at home. those things on sale everything at home air fryers, big sales. outdoor products, a little tougher. but overall, it was the retail restocking, which signals to wall street and to some of the analysts that cover the stock that it could be temporary, that it's not necessarily like a

falloff in demand, that it's still these adjustments when it comes to inventories from retailers working through as a result of some of the pandemic distortions, right, where retailers couldn't get anything in stock during covid, then overbought and overestimated for all the wrong categories and now they're pulling back we've seen that from target and walmart and basically all of the retailers that sell these newell products the stock has been pretty disappointing, off the lowest level since 2020 >> i'd leukeike to go back to a ten-year on newell because the acquisition of jarden didn't go well they've had management changes if you're a long-term holder there, yeah, you wanted to get out in 2017. >> hasn't been in the best growth products as it -- they didn't get the benefit some of these other staples have had during the pandemic. >> terrible. gone nowhere

ten years it's down. that's horrible. >> it's the portfolio, though, i think. >> it is it's a weird portfolio as well we have carl out at code i don't want to forget about you out there, carl. what are you watching this morning? >> we're here to cover tech but we should talk about energy. we talked with jim o'neill about the challenge europe is facing brent back below 09 takes you back to january. crude 85 we're getting close to an area where oil could be flat on the year what a thing that would be there was a report about gasoline down 25% in 08 days, something we never saw during the inflation era of the '70s and '80s back then when gasoline flat lined, a huge collapse in cpi

and that will be the huge number next week. >> it's for all of those that are hoping we have seen peak inflation and that it will come down dramatically, as jim o'neill said he was getting to that side. this is the chart you want to watch. gas price, oil prices, much weaker it's good for the biden administration good for the democrats i would think because obviously people are so sensitive to what they pay at the pump. however, if you look at the reason why it's coming down, it's concerns about the economy. recession in places like europe. china, which continues its zero covid policy and continues to lock down cities, david, of millions of people as the top energy consumer, you do wonder what that ultimately is going to do to demand, even though we're balancing a tight supply situation >> very interesting in part. we were discussing this yesterday with brian sullivan,

natural gas bound for china finding its way to europe in part because china doesn't need as much given their lower energy consu consumption. but you're right over 60 million people in that country under some form of lockdown as they continue to press the zero-covid policy in china, despite what has been a very depressing effect on the overall economy, which is not growing nearly as quickly as certainly those of us who've followed china for many years have grown accustomed to looking at the chinese market there. i was planning on mentioning twitter simply to go over yesterday's hearing. it was an important hearing with elon musk's lawyers and twitter's lawyers battling, and it definitely seemed for those who listened that chancellor mccormick was taking no nonsense and show nothing mercy really to musk's attorneys not that she was unfair in any way, but generally sort of if you could almost say kind of saying, really

going with that argument and it appears we've already got an judgment, but remember musk's attorneys went into court with that -- trying to have that counterclaim upended to add in some of the allegations from the whistle-blower, mr. zapco, and therefore allow for increased or i should say further depositions and a pushing back of the trial. now, i'm only seeing one headline so far, although i may be a little late here. maybe there's more but reuters is reporting that the judge denied the request to delay the trial. remember, it is set to begin october 17th in delaware it's going to be a five-dainon jury trial chancellor mccormick is the key person here. she'll make the to decision as

to whether of course mr. musk's argument that the presence of more bots on the platform, whatever they can prove, well, that's the key, what they have to prove, will be enough to allow him to exit the deal many people believe that will not be the case given the burden of proof he will have to have, which is not just that it was fraud essentially but that it is the equivalent to or exceeds the level of what we would call a material adverse effect. and you can see the positive response in twitter shares we shall see what happens. an important moment here because there had had an expectation -- and again, i want to see more on the decision i haven't seen it yet. but there had been an expectation that simply by virp chew of making sure they had no basis for appeal, she might delay the trial a couple of weeks. not a major delay. maybe, you know, just into early november but apparently that is not going

to be the case i'm seeing other report heerg as well no delay i want to see what she's allowing for >> you're saying the take-away from the market and what you witness is she's not as favorable to the musk side >> no. i mean, a number of different comments from people were the musk side was getting killed she showed no mercy. however -- and there was one key thing about musk's mind-set where there was correspondence between him and morgan stanley, which was financing the deal, and he sort of indicated well, you know, maybe we can take our time here, go more slowly, because it could be world war iii. this was back in may. >> because of president putin. >> because of putin and comments that goes to sort of mindmind-ss that is a win for the twitter side no delay we'll be there in delaware, november 17th, at this point, pending anything else coming up.

but there had been an expectation not just that they would obviously have a motion to amend the counterclaim but that she would allow it. >> i guess it's a legit thing to want to delay a major multibillion dollar bill speaking of putin but not illegal. >> thing like that are not in there. what you are obligated to do is fulfill the needs of the contract that then goes to the idea of, hey, it's not about what twitter did. it's about the broader world that was given him, carl, obviously buyer's remorse as we know mr. musk has certainly had. we seal pe where it comes from here but, again, twitter, which we've covered very closely, up almost 4% carl, over to you. >> i was going to say, david, between the message about world war iii, the timing of this, the ongoing discussion about would

have been disclosed during diligence, but there was no diligence. i wonder if you've ever seen an maeve maye transaction like quite like this one. >> no, never in fact, this will probably be a trial unlike any other and perhaps of greater consequence because the thought is at this point that if the judge were allow mr. musk to exit, based on what we know -- and again, we still have to wait and see -- it would -- you know, it would send a bad message to those who enter into such contracts. so, it is going to be a very important trial. yes, carl, it is unlike anything i think we've ever seen. that goes without saying when you're talking about elon musk because he is kind of unlike anything we've ever seen as well >> yeah, indeed. of course, you know, a lot of what musk continues to bring us is elements about ongoing space exploration, certainly electric vehicles, but also crypto, for a time vocal in that environment

that was something that mark cuban weighed in on last night here at code about sort of what inning we're in in terms of the adoption of crypto at large and what that means for price action take a listen. >> crypto has a place for sure, and -- but what's missing is new applications just like in the early days of the internet se v we said we haven't seen anything new, it's old and boring it took mobile to come along to propel it going forward. and we don't have that right now for crypto so it's kind of boring and it's you going to stay boring with defi and other little things >> don't seem to interest interest you >> i'm very interested and still investing, but it's just early >> pretty interesting, sara, given the fact bitcoin has been unable to get back above 19k not sounding like an evangelist at the moment. >> no. i think it's hard to be because bitcoin has been so weak what's interesting, carl, it

hasn't really had the same impact in terms of the spillover and the pressure on the stock market that we saw in terms of the correlation between the two earlier in the cycle i do wonder if a lot of data leverage has come out of the crypto market given the pain that we've seen. i also wanted to point out another company, poolin wallets yesterday announced it's halting withdrawals of bitcoin and ethereum, another player in the list including celsius that's had liquidity problems and has had to do this we haven't worked through the problems there >>, no we haven't. before we move off currencies, given you are the expert, what are the expectations in terms of quarterly numbers and earnings and what we'll see with the dollar's strength? >> it will keep burning any company that does business overseas, especially if you have exposure to some of these places like japan, europe, where the currencies have been absolutely battered china is seeing some real

currency weakness. and you've seen the translation effect it hurts companies, everything from technology, salesforce was one of the early ones to warn about it, microsoft, pharmaceutical giants, energy companies, consumer companies. the s&p 500 is at risk that's why the strong dollar has remained a headwind. and the fact that we are reaching new heights -- it usually takes about a quarter or two to lag, but nobody can hedge these kinds of moves because we're seeing multidecade moves on the u.s. dollar it absolutely has implications for u.s. multinational earnings. on the other hand, it helps fight inflation in the u.s. at least. it hurts for everybody else. >> 15% move year to date is there any period similar to that >> for -- we've seen dollar strength, but usually it's in times of acute crisis, like the financial crisis or during covid where you don't want the dollar to be the only place that people are flocking it's never a good sign about the global environment it hurts economies and causes

all sorts of -- you start to watch emerging markets as well who have a lot of debt payments in dollars >> makes everything more expensive. old story but it happens a lot >> you look at some of these levels the yen is at the weakest level since the russian default in the '90s bad things tend to happen following the extreme currency news, which is why we're watching it carefully. central bankers don't seem concerned. >> no. we're keeping an eye on the energy markets as well in europe because, again, of that volatility did want to come back quickly to twitter, guys, because i didn't have the benefit of reading the decision i now do thank you to any number of people who sent it my way in the last few minutes the amendment wasllowed for the counterclaim the key is the defendants are permitted only incremental discovery relevant to the new allegations. she says in her opinion that

discoverying can be made through targeted documented discovery and minimal experts and fact witnesses. the parties are to confer immediately for parameters for that additional discovery. we'll see if they can do that. and she denied the motion to extend the case. she said a trial judge has broad discretion in edge scheduling and the court's docket defendants contend no external deadline creates any urgency she obviously disagrees. she said, i previously rejected the defendant's argument's motion to expedite making clear the longer the delay until trial the greater the risk of irrep habitual harm to twitter those shares are up 4% i wanted to correct something i said earlier the counterclaim was amended but the key is not allowing for a lot more discovery and not moving the trial date. let's get over to bob pisani for more on the broader markets. bob? >> modest update for a change, but it's defensive in nature

if you look at what's moving, people don't get terribly excited about utilities but they've been a stalwart recently consumer staples moving to the upside tech is holding in pretty well energy is in a notable downtrend. metals and mining, which were having a great day yesterday, to the downside today remember those coal stocks yesterday, all moving up no notably? they're among the biggest decliners today. so you don't get any real trend at least in the metals and mining section energy is in a very notable downtrend now. it doesn't matter if you're looking at services like baiger hughes or halliburton or some of the exploits in production companies that are out there or broader companies like them. they're null in a downtrend in the last couple weeks. elsewhere, everybody cares about what's going on in tech land it's pretty ugly nasdaq opened on the upside. we were down seven days in a row before that. intel at a new low, nvidia yesterday at a new low overall here, gone from 187 to 135 in

three weeks. that's 25% microsoft is down 10% in the last few weeks so is apple. a lot of what we call the thematic tech stuff, social media, for example, have all been drifting lower in the last few weeks. in fact, essentially we're at or near 52-week lows in the global x social media etf, the video games and e-sport. social media is a snap and bumble and groupon and match they've all been in a downtrend. robotics, video games like nintendohave been in a downtrend for the last several weeks. there's other things too very broad swaths of the market are sitting at or near 52-week laws corporate bonds, ldl near a 52-week low, gold near a 52-week low. silver is sitting at a two-year low. zbra grayscale near a 52-week low even pot can't get off the

floor. m.j., pot stocks, folks, historic low went public in 2015. historic low yesterday wide swaths of the market are sitting right at or near lows. the only good news out there i saw late yesterday, we got an ipo coming and a fairly big one. aig announcing corebridge was going to be spun off this is the life and retirement sub sild yair of aig this is among the biggest retirement providers, insurance providers in the u.s., 08 million shares between $21 and $24. this would be the biggest ipo of the year, believe it or not. this happens next week my understanding is it will be at the new york stock exchange yes, it's a spinoff but at least it's something volkswagen announced porsche would be spun off as well. two big spinoffs maybe we'll get to other kinds of ipos. there's been stuff floating ou

kindercare steinway claire's jewelry fogo, they're floetding out there. what we need is a more reliable market the ipo after-market has been a disaster, down 50% so far this year a little more stability in the market would help a lot. sara, back to you. >> those will be tests of demand. >> yeah. >> thank you, bob pisani later today on "closing bell," don't miss an interview with the ceo of kellogg, steve cahillane. before we head to break, it is time for "the bond report. look how treasuries are fairing this morning you are seeing buying and yields are a little low, perhaps offering some relief to the stock market and tech in particular, which tends to follow rates lately. the nasdaq is up 0.8%. the 10-year yield is below 3.30, reversing a trend we've seen lately a lot of companies rushing into the bond market to get funding ahead of the fed meeting

"squawk on the street" will be right back

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dow is tacking on 80 points to begin a very busy today, tech is leading amid some weakness in the energy complex a take a look at tesla, as well as musk can now amend his complaint to add the ise-ow, t ste whtlblerbumu b ready for trial on october 17th. we're back in a moment at fidelity, your dedicated advisor will work with you on a comprehensive wealth plan across your full financial picture. a plan with tax-smart investing strategies designed to help you keep more of what you earn.

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welcome back to "squawk on the street." we're live in los angeles at the code conference. it got off to a big start last night with mark cuban, who talked about the efforts in health care, crypto a bit, but also the notion of taxes and what billionaires should be expected to pay on that front. take a listen. >> i don't mind being taxed more i wrote a blog 20 years ago saying it's the most patriotic thing can you do after military service, pay your taxes. that's what allowing everybody to live and prosper, but the idea of soak the rich, billing onnair tiers, screw you, elizabeth warren, you're everything that's wrong with politics >> okay.

[ laughter ] >> cuban minced no words, but he's been considered a maverick, but he had choice words both for democrats and republicans last night. >> that's something that's always been refreshing about mark, his willingness to speak his mind he's not programmed, not worrying about the general council or the head of pr or anybody saying how could you possibly say that? >> yeah. he definitely calls the shots. we'll get you more highlights on this decent open on wednesday. don't go away. make thinkorswim, we listen. like jack. he wanted a streamlined version he could access anywhere, no download necessary. and kim. she wanted to execute a pre-set trade strategy in seconds. so we gave 'em thinkorswim® web.

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on top of your airline miles. so you can go see even more of all the world's bubbles. good wednesday morning, everybody. welcome to another hour of "squawk on the street. i'm david faber with leslie picker carl, as you can see, is in beverly hills. it's a rare day he's not wearing a tie and i am he's at this year's code conference a quick look at the markets. we have the s&p up, which is not something we've seen, including the nasdaq as well, coming off, what is it, seven straight

negative sessions for the nasdaq. >> a nice change in green today. we have 30 minutes into the trading session. here are three big movers we are watching, after the company cut i did guidance, the ceo saying it's -- in retailer orders, and continued inflationary pressures on the consumer shares, down 1.5% brian cornel agreeing to stay on in his role for about three more years nio post ing in april and may, but the stock up about 2.9% in early trading

steve liesman is in washington, d.c., and he has some fresh comments from cleveland fed president loretta mester. >> she said it will move into a restrictive stance, very much echoing comments she made to me in jackson hole late last month. she had the fund rate neither to be near 4% by early next year and does not anticipate pushing back some market pricing. among the issues that she warns against, markets could remain

volatile, growth could slow down more than expected, unemployment could rise more than expected. too soon to conclude that inflation has peaked the recession risk has moved up to in the next two years. she expects -- before he headlines came out, markets were reacting to a "wall street journal" piece suggesting that powell is a -- is the april 2023 contract, that's the one we follow, now pricing the peak funds rate at 39 had it was at 340 in early august. also, a 90% chance of that 75 followed by 50 in november, so, you do the math, we're on track to be up near 4% by yearend. what's happening is powell and

federal officials are leaning to the interpretationthat the fed may do less tightening instead, the message is full steam ahead. we have vice chair brainard at 12:30, and a speech by michael barr, so a lot going on in fed world, but all of it pointing in a similar direction, and that is higher, leslie. >> a lot of information to monitor for you, steve it seems like the message has been consistent and clear. thank you. >> sure. peter oppenheimer of goldman sachs joins us now thanks for being here on this new report where is that decisive low and when? >> well, i think the absolute low won't be significantly down from the level, at least in june we think this is what we describe as a cyclical bear

market essentially it's about investors worry about higher inflation those sorts of bear markets typically do result in around 30% from peak to trough. we have yet to see the conditions you normal would see after a decisive trough in the market do you expect a further deterioration as the more hawkish fed policy works its way through the systems, margins correct is that when you expect to see that trough to take place?

>> i think if you look consistently around history, the trough in a market is a function of three or four conditions often combining. secondly, you ngo need when the rate of detier yay is slowing, and again i think it's too early to be confident about that we have yesterday to see the peak rates in inflation actually emerging i any we could see a reasonable

recovery in market, about you from lower levels that we have currently. >> it's harder to know -- >> it's easier to see thing with the benefit of hindsight than in real time. they initially look like the january -- and bear market rallies are not unusual. kipically there's one or two, typically around -- usually at least in a month and a half. i think what we have seen is consistent with that why we are confident it isn't yet a genuine inflection point is because those conditions, but

confident and indeed getting into a moderation just haven't yet been reached >> i write that most bear markets trough around 6 to 9 months before corporate earnings again, where are we, then, in terms of how you think about this very moment trying to decipher when that moment will come >> well, i think it will emerge over the next year i think it's likely, this downturn in growth won't actually be that deep. there's a reasonable chance that we do get a soft landing, particularly in the u.s. europe is a different story and we have to bear in mind there are some positives as well there's a lack of the kind of

structural imbalancing that we have seen going into many recessions previously. private sector balance sheets, healthy bank balance sheets are strong so i don't think profits are going to collapse. i think the market will start to anticipate recovery. we have yesterday, i think to see -- and lower valuations, which are important. >> so a lot of choppiness ahead, it seems peter, thanks for your perspective. >> thank you >> we did get news following the heard yes, sir in which elon musk's lawyers were arguing they wanted to amend the complaint, which was allowed, to include

allegations from the whistle-blower, but they also want more discovery and a delay in the trial that's the part they didn't get. chancellor mccormick in her decision saying certainly the new complaint would be grounds in most instances to permit an amendment under the low bar of rule 15-a. she allows that, but she goes on to say the defendants were only permitted what she calls incremental -- not sure exact reply what that means, but that can be made through targeted document discovery and minimal experts and fact witnesses on the big picture, she said the motion to extend the case schedule is denied that would have to take place, as has already been allocated to remind people, it's scheduled to take place over five days in

front of the chancellor mccormick. she says it's increased employees attrition, which undermines the company top -- the -- you have the operating cough instants she said she was convinced even a four-week delay would have too much harm to twitter to justify. after yesterday's hearing there had been an expectation she perhaps would not look favorably on their desire for a long delay, but still an expectation she may do a couple weeks. she didn't go there. >> it seems like she was given them a bit, but not the whole cake, for example. she is allowing inclusion of

this whistle-blower report >> if you don't allow for much discovery -- it's largely a win for twitter. it's still a full $14 below. >> a couple weeks they said it took less than a week for musk to bring out his shiny new whistle-blower which in their view would represent an escalation. >> yes that is still a question in terms of whether there is grounds in some way, very much unclear. don't have a lot of report to go share, but i have heard it as

one more of many different concerns from those saying, there's a reason why that is trading $14 below the price. it's been a rocky year for tech wells fargo, chairman of global internet investment is with us to talk about how he's navigating the market. it's a pleasure to have him on the set. >> great to see you live again and great to be here at code they did it again. >> they definitely set the tone. i won't pin you down on names, but since we are talking about twitter/musk, is that whole chapt being constructive first we're coming off a record year this year we're obviously down about 30%, give or take.

what's really interesting is about $3.5 trillion. private equity has a trillion so m&a is coming together here. once again putting you on par for a third or fourth best market when you think about the combinations cross border and now that we have gotten away from the peak valuations of october, november, a lot of the targets were being talked to, i was valued at sort of here, now you have that thawing out. so i think you're going to have a strong m&a back half of the year >> in which large players absorb smaller players who have seen valuations come way down i mean, the first think you think of is e-commerce, but is there more than that >> even larger ones. >> you had a bunch of big names,

but i think you're right, the smaller players are sort of realizing make i'm not i still have great value, but maybe i'm not 15 times revenues, whatever the multiple happen to be you're see that sink through, you know, pushing these conferences to happen. >> is that why we've gotten so many of these husker-down memos, got to get simpler, are they prettying themselves up for sale >> or it's a good transition to ipos 2022 was very small, right they've done okay, down just a little bit you look at that number. that 14 is down 90%. the 2021 cohort is actually down 40%, so it hasn't been great i think there's some green

shoots that sets up pretty well, a little in the back half. what are we looking at investors want to invest they're looking at strong modes, path to profitability, and companies are making themselves more in that vein. the green shoots, over 221 companies have filed it's been a different year, but august had its best month ever 70 days since the last ipo the worst you have ever seen was is 00 days and that was the great recession. a handful of ipos for the rest of the year, that would get you about 20, which is the lowest total since the great financial crisis so i think you're seeing companies, boards, vcs, be public ready for 2023, on if they can, some you hadal through and not have to do either.

>> we mentioned this piece in the "f.t." over the weekend, it was like forced savings now looking for ahome. i have to imagine you think it's bullish for ipos i do it's predicated on the number one things that investors are looking for. believe it or not, the ant wasn't up warm-up it you have up 10%. it was stability as we talked before, as you know, today that consensus of where views are going, but actually having a stable environment. looking forward to seeing you. >> thank you, bop. >> thanks for having me.

plus we're going to check in with one of the country's larger home builders. 9. don't go anywhere.

let's give you a look at the first trust internet etf, the ticker is fdn. it's underperformed the s&p by more than 22%, as a slowdown in ad spending has hit that sector. pinterest has essentially been crushed this year. you can see where it stands right now. though down about 36%. this morning, though, wolff research says it's calling a bottom, the price target is 28 they ade they see many positive catalysts over the next 12 to 18 months. >> there you go. as we head to break, let's get a check on bitcoin hitting the

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crypto has a play, for sure, but what is missing is new applications just like the early days of the internet, it was boring because we hadn't seen anything new. it took for mobile to come along to propel it going forward we don't have that right now for crypto, so it's kind of boring, and it's going to stay boring. >> so it doesn't interest you? >> no, i'm still interested, and still investing, but it's just early. >> a fascinating exchange with

mark cuban and cara swisher. miller tayback sits still a risk on-risk off asset. >> the internet, of course, has come under significant regulation sin that time crypto is very, very difficult to regulation in a way i think will take more time to for formulate. they're not expecting clear rules offed road anytime soon in order to get things run.

whether we can analogize it to the dot-com era i think remains to be seen we will see if it ultimately transpires to be that way. still to come, apple largely outpacing the nasdaq in the last year, as investors look ahead to the big product event later today. shares of cooper software jumping today. that stock still down roughly 60% this year. we'll be right back. stay with us

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switch today at visible dot com. welcome back i'm kristina partsinevelos here's your cnbc news update at this hour. steve bannon says he expects to be indicted in new york. he criticizes the charges as phony and politically driven the manhattan district attorney has been investigating his role in a charity that raised money to build the u.s./mexico border wall his comments after a "the washington post" report that says he plans to surrender to

new york authorities tomorrow. utilities in california are once again urging residents to conserve energy. this morning, though, in austin, texas, air travelers were left in the dark for more than two hours. power has been restored. roadways to the airport remain closed. and vladimir putin and xi jinping plan to meeting next week in uzbekistan back over to you, leslie. >> kristina, thank you apple holding its annual launch event today. here is what the street is watching for today we will get more from rosenblatt's barton crockett, he has a hold rating on the stock barton, it categorizeses these announcement as anything truly wowy are teensy weensy

is there northbound that apple can take to. >> look, i'm covering super -- and so you're always challenging yourself it's their ability to outperform the category, the last earnings report was a little earning. speaking to the saturation pandemic that we have. to stimulate optimist, it may

accelerate, you know, that's one thing that could get us to reconsidering. >> so a lot more emphasize. >> well, you they'll have to see -- which i think the expectation is they'll be able to sudden know, i think the thing you're fighting against, though, is there's a lot of consumers that need to

>> barton, what about wearables? for something that moves the needle >> look, it was -- it seemed like the watch people weren't buying as much, you know, product cycle, but the i think concerns about is this what you said to spend look, the far-out insignia makes you wonder will there be satellite features, some probably not mainstream in terms of its appeal, but ruggedized verge seems pretty niche-y, but it's hard to imagine what they could done to during that time tickly change the trajectory there based on

your channel checks is apple able to meet the demand for its upcoming launches that you're expecting, given some of the challenges that are out there? >> i think apple is clearly doing compare activity great i think the issues that have come in less than they've been talking to, and, you know, that's encouraging i think the real acid test will be consumer demand in this holiday season i know there's expectations that production could be comparable to past cycles i know there's some talk monthle tel telcos at least domestically it's more how much do people

want to buy they phones in this. >> thank you very much, barton. >> great thank you. well, speaking of apple, it handle launch -- silicon valley, they are already taken orders. our eunice union has the story for us >> reporter: this is in beijing's silicon valley people come here to have their phones fibbed and be the first to get gage either the gray market seller says his orders are double. most in demand, the 14 pro max for story in purple. mr. wong is already in touch with scalpers. he's offer a rebate of $150 for

every phone they bring back. he plans to charge a tiny profit per phone. in the past it was about bragging rights. now it's more about performance. he says for the 14, the faster a16 chip is a selling points along with the 5g, even th wong is counting his blessings and his cash >> wong and other unofficial vendors say they anticipated iphone 14 will be available here by next friday, september 16th, so they're already organizing to send scalpers outside of apple stories like this one, by next thursday guys u.n. is, surprisingly to some,

sales were only down, but given what we've been hearing about the lockdowns are there expectations that things won't be quite as strong. >> i think it's all relative to be able to buy things at the store, all sorts of products will be effective. so that's likely going to be a pressure for apple, as well as for everyone else. especially in the conferences with the unofficial investors, the demand for the phone, generally, but also with this 14, it's quite strong the

anticipation is it will be a huge upgrade, but also because the huawei has not been doing well under the u.s. sanctioning. they say it's been suffering, even though it launched its own quite competitive phone the day prior, and they touted that they have this new satellite technology that helps to link up to china's satellite, and would rival the gps system, but that just isn't going to be sexy enough, at least from a lot of these vokedors that we talk to, compared to the iphone and, of course, the economy is one slough that a lot of teem packed about one reason you would say a bump in vivo or some of the other local brands, there are more people who are more price conscious than before.

>> eunice, thank you still to come, a lot more from this year's code conference in the meantime, early session highs here, dow up 185, the nasdaq finally trying to put together an up day we're back in three.

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anything that would impact production would be material for the market, at the ends of the day, they can't get inflation under control. >> they should give us criteria for market-based on the ground prices that would cause him to think he is near the peak. coming to you live this morning, also the broader end marge, and immediate use trends at large that's mark bankoff, we're sort of his guest >> i'm so glad you're here, welcome to the code conference. >> the weather is not too hot

yet. >> yes >> certainly last night, listening to pichai talking about trying to get apple 20% more efficient, it's something you've written about. >> i liked what sindar had to say. there's also opportunities for growth at this year's code conference, we're hearing a lot about innovation we had mark cuban talking about thinks new healthcare company, and at vox media we're innovating as well there will be some great products, so we are growing while also focusing on being a strong company >> how do you balance that

trying to wrestle with macro conditions that you have said are getting tougher. >> they are. i'm probably not your first guest to talk about this is the unpredictability, you have a lot of positive signs around the market, and then a lot of tough things on the consumers, the rising interest rates. i think the marketers have been on the sidelines a bit just to see how it all shakes out, and now fourth quarter is approaching, though, and we're seeing an optimistic note with the fourth quarter actually coming up, it's time to put up or stay on the sidelines for a lot of these marketers i think they're saying we don't want to be left out. we need to be present in the fourth quarter they're coming to companies like vox media to engage in their consumers. >> you know, it's a midterm year

obvious in election cycling, we hear about a peak in spending, at least on the add side we talked about some of the ways niche politico and axios have monetized what they built. how do you think that's playing out thus the political, at least the lens >> we had the ceos of google, amazon, appearing on stage as code this year i will say there's never been more money going against political advertising lobbyists. it's not a focus of us at vox media. we tend to be more consumer oriented we don't have the trade publications that appealed to the washington set, but we cover politics we have cara with her podcasts are covering those areas, but it shows the value of being ability to target audiences. at vox media we are pleased to

be a leader in so many categories, whether it's sports with sb nation, or food with eater, the vulture, the cut, dodo, so we look at ourselves with every brand leading the vertical ear we think we have a great portfolio of those leading brands that can appeal to the advertising base. >> at a publisher, we have to adjust we have to say after our recent acquisition, it comes as streaming social brands and now this news, vox media is now the

largest media company, largest publishers on tiktok, on snap, the largest per tubular in the associate video space. that's an adjustment we've had to make so we see it as a big growth area, but still wide west in terms of monetization >> always good to come to code, and you guys are always gracious. >> it's a great year i've had to put on my aviator glasses, cara swisher, thank you for everything you're doing, this is her last code as host. she will hopefully join us on stage. but they'll be launching her new podcast with vox media in a week or two she already does the pivot with

scott, so we're excited to have even more cara >> great got a lot more to go coming from amend aaron levy as well don't go away. businesses have to find new ways to compete in order to thrive in an ever-changing market. the right relationship with a bank who understands your industry, as well as the local markets where you do business, can help lay a solid foundation for the future. pnc provides the resources of one of the nation's largest banks and local leaders with a focus on customized insights to help your business achieve its goals. that's how we make a difference. ♪♪

as the housing market continues to cool, mortgage demand is dropping even further. applications to refinance a home or purchase a new home both slipped another 1% for the week. this is all happening, of course, as interest rates kind of popping back up to levels we saw back in june here to discuss, one of the largest u.s. home builders, tri pointe homes ceo doug bauer. we hear from you regularly are they getting worse >> thanks, david sorry for the audio difficulties we saw the softness begin at the end of june, early july. through the end of august we've seen a modest increase in

demand, and there's plenty of underlying demand on a needs-based buyer. the consumer sentiment is still very cautious as you mentioned i think stephen mentioned the interest rate and the uncertainty in the rising rate environment has definitely created the consumer to be a little more cautious i think we've talked about this before, david. while housing corrections in the short term are driven by an increase in rates, or even a decrease in rates, longer term you look at the strong demand and supply constraint in this industry frankly, over the last 13 years, when you look at housing starts versus household formation, we haven't kept up with housing starts to meet household formations there's definitely a correction going on right now, but we're still seeing some underlying

demand. >> right the long-term trends are all potentially positive as you point out. that said, this is obviously an important barometer for the broader economy. i mean what's it going to take to sort of get things back on track, doug? >> well, i think it's going to take the consumer feeling that the rising rate environment has slowed down or cooled off so that they can get further engaged as we look forward into '23. frankly, i really do believe -- you talk about the undersupply nature of housing, there's probably going to be a pretty good snapback, david, when you look at the housing sector going forward. it's just a matter of time buying the largest consumer good you're ever going to buy in your life takes a lot of o

confidence that confidence is a little shaky right now. >> doug, we'll keep it short appreciate the update. i'm sure we'll have you back soon thank you. >> thanks, david. after the break, we've got a lot more on the airlines as united threatens to end its service at jfk we're back in two. at fidelity, your dedicated advisor will help you create a comprehensive wealth plan for your full financial picture. with the right balance of risk and reward.

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united airlines out with updated guidance and a warning it may drop its jfk service if they don't get approval for more flights. >> let's start with the new guidance for united airlines this is for the third quarter. we'll hear from a number especially with the conference going on today here is what united is saying about the third quarter, slightly better expectations than a couple months ago, operating revenue up 12%, previously 11% capacity up more than expected even that's a decline compared to 2019. operating margin at 10.5%. the company did send a notice to its employees saying it may end

its service out of jfk, and right now they have two times a day flights to l.a.x. as well as san francisco. they may stop at the end of october unless they can get more flights. the faa is in the process of looking whether or not to approve more slots out of jfk. what does the faa say about united saying we'll need more? they say any additional slots at jfk would follow the faa's well-established process of awarding them fairly and to increase competition the other big majors we're talking about, america, delta and southwest, as i mentioned, the collin conference going on today. we'll hear from the ceo of american out today saying they're seeing strong demand in december it's not softening which a lot of people expected after labor day. what we're hearing from airlines, including american ceo, demand remains robust. >> interesting business demand, too, phil

we talked about that during the heart of the pandemic. what are we seeing >> it's relevant it's improving, still not close to where it was before the pandemic it's certainly better than it was a year ago as compared to the first quarter, the second quarter. it's gradually getting better. we're still not at prepandemic le levels >> big question we've been entertaining phil, thank you. >> it sounds like he's at an airport. a lot going on back there. speaking of things going on, the s&p up .6% and the nasdaq in positive territory we have a lot more hours left in the market day, leslie we've seen things change dramatically the story in the "wall street journal," the market withstanding that so far. >> a good start indeed, especially for the nasdaq which

has seen its seven-day losing streak turn things around. keeping an eye on that incredibly strong dollar of course, being a sara eisen for an hour kept me focused on that oil is still down as are many other commodities. expectations for inflation, we shall see. that's going to do it for us on "squawk on the street" right now. "techcheck" starts right now all right. >> good wednesday morning. i'm carl quintanilla along with jon fortt and deirdre bosa big lineup so far including google sin draw patch chai, mark cuban talking about the best and worst parts of tech. that's not all tim cook speaking tonight on the heels of that far-out product event this afternoon what it all could mean for the stock later this hour. as the tech volatility continues, more from the c suite exclusive from the