dow futures up by about 230. for the week, the dow is down by about 0.6% s&p is indicated about 30% up for the week, and then the nasdaq, which is off by about 1.5% for the week, is indicated up by 122 today. all right, that does it for us we made it through the week. make sure you have a great weekend. make sure you join us next week. right now, it's time for "squawk on the street. bye-bye. ♪ good friday morning and welcome to "squawk on the street," i'm david faber with jim cramer we are live from the new york stock exchange carl has the morning off let's look at the futures. we are set up for a higher open, and our road map does start with that very fact stocks look to close out what's been a choppy week perhaps they will close out in the green. plus we're going to round up some retail for you. not looking so bad

foot locker, gap, williams sonoma, all reported >> really interesting. we have so much to talk about today. >> good. i look forward to that and we also will be talking about visa's leadership transition ceo al kelly and his successor ryan mcinerney will join us in just a few minutes let's start with the markets, though, looking to snap a two-day losing streak this morning. you're here. tell me what you think >> all right, let me just tell you something. can i just say that we have had wasn't of the biggest, most horrendous scandals of your and my lifetime, and it hasn't hit the market it didn't really bother the market huge amount of money lost. lot of our viewers' money lost a lot of people had money in the account, and they lost everything a lot of people came on air and were proselytizing and they were, like, burt lancaster

in "the rainmaker. the amount of chicanery that i have seen in the name of blockchain, that somehow blockchain -- like blockchain's like dothan. >> yeah. no, it's been extraordinary, the collapse of ftx only a week ago. those comments yesterday from the company's new ceo, the man who's been brought in there to help oversee a restructuring, the bankruptcy, were unprecedented. saying, in his opinion, he's never seen anything like it. this is a guy who came in from enron. >> yeah. enron looks like a blue chip enron was like, you know, a dividend no, but i'm saying this because we live in a strange world something happened in november, one year, the bear bear said to last a year i don't know "yogi the bear" was on 50 years, but this guy is really taking gas, and the reason it's most interesting is the astounding losses in the face of endless, even after they lost money, they come on air and they tell you

everything's great david, you know -- >> but doesn't it -- does it say to you, jim, that this is the segregated part of the market, in a sense it's not -- first of all, this was not a public company this was not an enron or a world com which had market caps that exceeded $100 billion or more going back a long time when they collapsed as a result of fraud, period where we also saw delphia and tyco go out, that was an impact to investor psychology that this might not be >> but do you remember when madoff -- the market got hit really bad but even if you weren't in madoff, now you would say madoff was stocks >> madoff was happening during the financial crisis >> i'm just saying that this is kind of like -- i'll ask people on the street, what do you think of sam bankman-fried they say the same thing. he did well. there's just no -- i think maybe some of the -- it's because of the regulators like, i would have -- you know,

of course, the usual congressional people got on the bandwagon, but there was -- if i were the u.s. attorney of whatever u.s. attorney, i would say, either they're out of my jurisdiction and there's nothing i can do, or i would say, we got to go after the edifice. like, maybe the edifice isn't right. >> it's not done yet there are still going to be impacts. >> but people are buying -- >> still closely watching any number of other exchanges, other -- >> but we're going to have visa on >> other crypto-related companies, because it's not done yet. it's going to be years >> we can't worry about def deflategate. >> whether they'll launch a criminal investigation against mr. bankman-fried, we'll see >> i'm really caught referencing that applied materials had good things to say yesterday, palo alto, and we're just not saying, well, i don't want to -- i'm kind of nervous here people pulling back. no, we're like, full bore.

>> should it be seen as a good sign >> yes >> that the market has overlooked the collapse of this once thought to be crypto empire >> absolutely. it's a great sign. what it says is, there's this whole alternate universe that never really coincided -- never really penetrated into our universe, and that's made it so that stocks look even better, although when we had gary gensler on, the chairman of the agency, he did give us the impression that there was scrutiny obviously, the incredible paragraph from that -- the new person from ftx. >> yeah, the new ceo >> basically just like someone -- i mean, but then you have those large institutions, and you all figure that somebody must -- maybe it was one of those, david, where it was like a clown car, and someone was driving, and they all said, oh, okay those institutions are real, and they have lots of people who do due diligence. >> maybe in the -- the investors in ftx >> yeah.

they're supposed to do due diligence. >> they are. and not to defend them, per se, but if there is actual fraud, it's -- it can be hard to detect >> absolutely. >> that said, you may start to say, well, do i really want to be involved with a company that doesn't have a board of directors, doesn't seem to have the internal controls that i might want it doesn't give me the level of transparency or disclosure that i might want those would all seem to be questions. >> m.i.t. and jane street. jane street being perhaps the most rigorous hedge fund in the country, m.i.t. being perhaps the most rigorous mathematical institution in the country, and maybe that's all you need. that's on your resume. >> right >> and you figure, well, vetted by others, so let's just bring him in i don't want to spend too much time on this i'm just saying, it's in the context of the market being good >> we're going to get to al kelly and his successor. let's talk retail. it's been a big week for retail. started with walmart good then followed by target.

bad. and everybody trying to figure out the tone you and i both came into this reporting period thinking that the end of october was weak. >> that's true >> williams sonoma, foot locker, not bad. >> foot locker, not -- look, williams sonoma, they weren't happythemselves. they talked about the economy being choppy foot locker, mary dylan told a very good story this morning, secular growth story on sneaker, she says >> williams sonoma shares are going to be down >> it was choppy they used that term. ross stores was incredible and they're very nonpromotional, so that was very interesting to get such an incredible quarter from them. gap was more -- they seem not even believe themselves there could be a turn. banana republic was good old navy was good. gap was okay international was very strong. so, i mean, gap's a buy from the quarter. >> well, gap, is a turn around,

so to speak, in itself, regardless of the economic -- >> they have an interim ceo. >> yeah. >> interim ceos are doing quite good this quarter. >> yeah. bob martin is the interim ceo. >> who also works at thorpe? he's the ceo of thorpe >> we can hear bob martin from gap, we can hear mary dylan or laura alba what would you like? >> because i know we're in a visual medium, i'll take mary dylan because she's the only one that's not a conference call >> we'll take mary dylan for $500 >> my team delivered an amazing quarter, strong results, better than expectations, in a tough macroenvironment but our customer proved to be very resilient. our topline sales were up. accounts were up food locker north america, up

high single digits why is that? customers love the category. they love what we offer in terms of brands and what we do in our stores >> all right there you go you got mary dillon. >> i thought those were all positive nike has been too influenced by china. foot locker has been uneven for a long time. mary dillon at ulta, that was one of the best performances i've ever seen it's a really great get to have her at foot locker, and i think she's going to turn it around. it's been not inconsistent it's been bad. >> well, the turn around may already be under way >> very impressed with the quarter. >> when we come back, we're going to be talking about a leadership transition at visa. al kelly is bpassing the ceo baton. that will start in february. both of them will join us today.

we have a treat here today, david. this man has been at the helm of the country's largest credit card network since 2016, but al kelly will soon step down as ceo. long-time president, ryan mcinerney, set to take over the role on february 1st, and the two join us now. gentlemen, welcome >> great to be with you. >> al, terrific. ryan, congratulations. >> thanks, jim >> al, the numbers are quite extraordinary about what you have done.

grew revenue by over 90%, market value over 130%. employee base, 40,000, probably because you've done so much business why now? i have to ask that, because you know i have been close to you and think that you have been doing a dynamite job >> jim, first of all, it's a team sport i've had a great team around me, so those accomplishments are those of all of my colleagues. you know, i turn 65 next year, and many years ago, i said to myself that if i'm lucky enough to be healthy and even in a great job, that that seems like a good milestone to go do some other things, and there's many other interests i have, and we're also at a time when we're blessed to have, for the first time in visa's history, an internal person to succeed me, and ryan has been my partner for the last six years he knows this business extraordinarily well he's a phenomenal leader and i'm so privileged to be able to turn the reins over to him in 90 days. >> so, ryan, i know al had to be in as many countries as there are on the globe, he would go to

ten more this is a job where you have touch. you have the touch are you ready to go all over the globe and deal with every bank because that's how you get 3 billion card holders >> we're actually up to 4 billion. >> i got the information it said 3 billion. >> jim, like you said, it's a local business it's a local business, country by country, around the world, and i have been traveling around the world for ten years now, meeting with our teams we have to be in market. you have to know how the business works, what our clients need, how the -- how the commerce is evolving in the market, and yeah, that's where i plan to be and that's where we get our best work done >> are you coming in at a time where a lot of people feel we could be on the verge of a recession, even though you see your spending numbers, maybe that's the fed being too aggressive >> when we look out two, three, five, ten years, the opportunities are enormous look at the consumer commerce business around the world. there's still trillions and trillions of dollars look at business-to-business payments, person-to-person payments, government payments. we see enormous opportunity to

digitize those payment flows all around the world for years and years. >> well, i do want to question, you've got tremendous data, and there is -- al, you might be able to get this there's this notion that we have a goods economy, and we switched to a service economy there are a lot of people who can say that but there's only one person to tell me it's true. is it? >> well, prior to the pandemic, we would be about 55% services, 45% goods, except for the six weeks of the holiday season every year where it would shift and goods would be higher than services during the pandemic, it shifted as well, where we actually become -- became more of a goods economy during the pandemic. it is now shifted back the shift back has begun, particularly as p&e has come back, raging back, i should say, and now we're about 50/50 goods and services at least in terms of what visa sees >> and i mean, every -- every economist and/or market strategist that comes ounn our i

wants to talk about credit card spend and what they're seeing. what are the numbers telling you in ermzterms of willingness of consumers to spend >> it has been incredibly stable for the better part of the last year and we know that there's some inflation in the numbers, in some cases, people might be spending more on food and less on discretionary purchases, but in fact, they're spending the same amount, and they're spending it in the same way using their visa card. we don't see the sku level data, david, but we know, for instance, when we look at supermarkets, we're seeing the share of the more discounted supermarkets move up, whereas the share of the more premium supermarkets moving down so, we do know there is some movement from, say, premium brands to generics but in general, i think because consumer balance sheets, particularly in the u.s., remain strong, and employment levels remain strong, i happen to be in

the more optimistic camp about where we are and where we'll go. >> you think this can continue into '23, that we're not going to see a significant dip, and/or the fed's actions are not going to ultimately dampen demand, so to speak >> we'll have to see i think, personally, if the fed gets it right, which they may or may not, but if -- i think employment is a key number to watch. if employment levels stay at a decent level, i think that we'll have a fairly short and fairly shallow downturn in the dmecono next year, but i'm watching those employment numbers in a big way, because people, if they have a job, and there's so much pent-up demand after the pandemic, i mean, travel -- what's happening in travel is incredible >> although, to the near you in silicon valley, the jobs do seem to be going away numbers-wise, it may be fairly small, although these are people who earn a lot of money. >> we have to watch those trends for sure, but as i talk to other ceos and companies, people are being careful but largely still

hiring we're being careful but still hiring i think that we can't dismiss an amazon laying off 10,000 people as something to watch, but i don't necessarily consider that a bellwether at this stage >> ryan, i owned, until recently, some restaurants, and suddenly people wondered -- they thought they should get a meal cheaper. they didn't want to use credit cards. i've never seen it before. didn't expect it over 11 years that i owned the place, never saw it until the end what's going on? people just feel like, cash should be king here, not credit card >> we're seeing the opposite coming out of the pandemic, cash has disappeared everywhere i think one of the things that both buyers and sellers learned during the pandemic is, why do i want to take that cash out of my pocket it's dirty i might even get sick during the pandemic what happened is sellers and buyers found the benefits of being able to tap your phone or card and get in, get out >> that's what i thought, for

heaven's sake. >> great reporting from my bank on my app. so, i think cash was a big loser during the pandemic, and we've got great tailwinds coming out as it relates to digital payments all over the world. >> ryan, i'm sorry, the justice department continues to investigate at least what they call potential dominant market share in this business any updates on your expectations for when that investigation will end? >> no updates on that, and all around the world, we're subject to regulations, and we're constantly making sure that we're doing everything in regards to the law in every market we do business. >> you deguys have a relationshp with coinbase. does what happened with ftx maybe give you pause and i know that what typically happens -- and i know you're not going to do this to me, because i know you too long. you're not going to say, but jim, we happen to think that there's great things with blockchain because you know i'm not talking about blockchain i'm talking about people and i think that some of the people who are in this business are too promotional, and they

have made people feel too secure what's your advice to people who think, you know, it is as good as money >> i think we have to separate what i would call digital gold, the non-fiat-based crypto, which is an investment category. we've been leaning into stablecoins and central bank digital currencies i hope one good thing that comes out of this ftx disaster is that we see an acceleration towards regulation >> right >> and leaning into good stablecoin regulation, because i think that that is what's necessary to build back confidence for people. and we'll see over time. we are setting up for the reality of crypto potentially having a role in payments and money movement we don't pick winners and losers we ultimately let the consumer and the experience decide. but we're creating on and off ramps for crypto players, putting visa cards in wallets, being able to convert the

stablecoin to a fiat currency and use the visa card to shop anywhere they want to shop we're working on being with a merchant, at the end of the day, who wants to get settled in stablecoin we'll see what happens over time i hope this terrible event forces a more acceleration in regulation >> to the extent this is going to evolve under your relationship in a significant way, when it comes to stablecoins, for example, if visa is offering it as an option, should the customer assume you've done the due diligence to make sure, for example, that everything in reserve is what they say it is >> yeah. first of all, regulation's key i think we can all agree on that hopefully it accelerates we want to be involved in any way that people want to pay and be paid, and to the extent that stablecoins are a great way to do that in a well-regulated environment, and two businesses want to engage in cross-border payments using stablecoins, we want to be involved in that and want to help we only get involved in things where our brand can ensure it's

safe, secure, and easy >> one last thing. i know they're giving us the wrap we have something offline that ceos talk to me about, never in the conference calls we have the most, i would say, devastating theft problem the country's ever had there's more stealing. i'm talking about billions i'm talking about many companies this week talking about billions of dollars in theft. what's your advice these people, you know, people who are checking you out at the registerer, they're not designed to stop -- >> we saw the target numbers this week. >> what's your -- can you do anything can you help these people? these great chains that are losing billions. can you say, listen, we're not going -- when the stuff is fenced on amazon, can you say, we're not going to let that happen you can't use a credit card? >> two things. one is, again, back to your earlier question, we only want people to be able to use visa cards to buy things that are legal, that are safe, and you know, we do our best to do due

diligence on that. and the other thing i would say is, you want to talk safe? get rid of cash out of your stores accept visa cards. it's the safest way to pay never any risk of having theft in your stores, no one breaking into your stores it's the safest, best, easiest way to pay >> i will say, we invest a lot of money in risk models and we stock $27 billion of fraud just last year. so, we are absolutely committed to continuing to help the infrastructure and the ecosystem be as safe as it can be so people trust using it. >> yeah. one thing i think people are always trying to figure out, what's visa's relationship with mastercard is it harvard-yale is it army-navy? how would you describe it? >> two of the people who reached out to me last evening were a jason jay and michael. ceo and former ceo of mastercard they're a very formidable competitor, but there's a lot of things in this ecosystem in terms of interoperability and those kinds of things where we do have to make sure that we're

cooperating with one another, because the reality is, we're the big players, and we want to make sure that the system works for everybody. but we're obviously fierce competitors as well. >> the other thing i would say is, we have competitors all around the world it's not just mastercard and that makes us better >> i just wondered which league are you going to be commissioner of >> i don't know yet. >> let's stay tuned then i want to thank al and ryan. congratulations. thank you for coming on. >> thanks. >> thank you very much, guys >> we'll be right back, right after this

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>> announcer: the opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing. ring the bell. new york stock exchange. grindr celebrating its listing via spac we'll speak to the dating app's ceo about an hour from now big crowd here for this company announced the spac deal in may and is now going public. 98% redemptions. well, that's not a great way to start but a lot of enthusiasm. >> that means a lot of the money they hoped to raise -- >> almost all the money they hoped to raise in the trust, the cash in the trust from the $10 that everybody paid for their share, everybody wanted their

$10 back, leaving virtually no money. >> they do not raise money on this bell ring >> there was some other money being raised associated with it. we'll talk to the ceo and find exactly how much capital they are starting their life as a pure public company with >> okay. >> all right beyond that, as we get started here with trading for the last day of the week, you know, we haven't, as we see, of course, we're up across the board, we haven't talked too much about oil lately, jim. you were noting it yesterday, if i recall, at least i think you tweeted once >> it's been collapsing. >> yes >> it's been collapsing. >> look what's going on even today. >> there it takes out -- in the '70s is where a lot of the dividends will begin to be re-evaluated. but this is something that it's questionable whether they should still be pumping prices have started to come down, year over year, still not

great, but i think we have to recognize that these are quite intense declines, and you know, chevron, down $4.30 is not to be taken without note >> 78 bucks. but that would seem to be a reflection of expectations of a lack of economic growth. >> right, right. although, it should be of what i saw mary barr introduce yesterday, which is the possibility of maybe a million evs in 2025. i thought the line-up was gorgeous >> you think we're really going to start discounting oil prices as a result of evs we will, at some point i just don't think we're there yet. >> i think she's got a great earnings power there's a lot that could go right with gm and you can't cross over to electric is funny given the fact of what you just sated. we're a fossil fuel-based

country. >> we are. although, every year, there are going to be -- i mean, mary barr was talking about, a lot more evs on the road. and over time, there will be less demand for gasoline >> for internal combustion engines. >> without a doubt >> not yet these are down this is more a reflection of a belief of what you spoke about with al kelly and mcinerney, are we at the point of a slowdown where the fed is playing too much of a role >> want to listen to what mary barr told you? >> very much so. >> let's do that >> when we live through what we've done with supply chain other the last three years, we recognized we needed to have an on-shore or ally shore supply chain. we are working on that to achieve that target, our plan for 2025, we have already secured all the battery recall materials that we need and these

are binding agreements >> in terms of supply chain, maybe the most important call last night was gary dickerson, applied materials, which makes the equipment that had also been held up because they couldn't get the semis. so you have the company that makes the semis, actually getting the semis. we are beginning to see the end of that particular part of the economy being a roadblock, which could mean that we're going to see more cars, which should mean that the price of cars goes lower, and i hope the fed recognizes these things. you've got to be granular when you're looking at this stuff you can't just say, wow, look at these aggregate figures. you got to say, wow, you know what i just heard mary barr they could have a lot more semis. jim farley, a lot more semis applied materials, a lot more semis. couple that with the fact that plastic, where there have been so many problems, paper, surfactants, and you can see why someone might want to buy procter & gamble, for instance although, i want to ban a term

procter & gamble say the growth algorithm is okay. can we just say, get rid of al rhy algorithm? when did it become algorithm at what point did our business become so full of itself that we use terms that make it sound like it's a certainty. >> my favorite when it comes to our business or the hedge fund world or anything, the drawdown. which just means, the stock fell and you made a bad decision. but no, it's a drawdown. it was beyond your ability to control it it was drawn down. >> well, david, risk off is another one of those stupid ones that means, it's a little more dangerous. risk off is designed to make it sound like you sound smarter than the viewer. i have never felt that sounding smarter than the viewer is one of the goals i'm trying to attain >> meanwhile, let's talk retail again, because we hit it at the top of the show, but briefly and you know, again, it's been an interesting week with walmart gaining a great deal you can see ross stores is at

the top of the s&p gainers this morning. energy, as you might expect, is amongst the laggards, but you had ross stores. you had gap. we had williams sonoma, which was looking down in the premarket, and i assume is down now. >> it's down a lot >> foot locker, we already heard from mary dillon target earlier this week, still not up i see it down about 30 cents you know, we're heading into christmas. it's important >> i think that -- >> you heard from al kelly there saying, kind of, things are fine we're not seeing a change in spend >> downgrade of restoration hardware today too many sales talk about sales being on. and so we were talking about, he's going back and forth with joe kernan our age is a thing where things are expensive, and i would say that perhaps i was too glib when i said that the rich are fine. because rh numbers would indicate that this -- that, you know what?

there's a little more too it than that. maybe the rich are slowing down too. >> yeah. they can and there was a -- as we are noting on the screen, a downgrade of rh, restoration hardware, to a neutral, saying market share losses are driving what they say is a course correction even though the company has avoided broad promotions, it appears to be course correcting, as they say. they surprisingly found that as reduced prices 2 to 9% in march half the product this their price study. you've been a believer in this name >> very much so, and i think they make great product. however, nobody's immune to a slowdown williams sonoma talking that things were choppy jeff, a little bit more, i would say, nuanced he didn't want to get caught into this stuff where, oh, last week was bad, this week's good now it's cold, i'll have a good day. he's changed the stores. he's got the stores to be more

attractive the first thing he did was fix the balance sheet. he's in really great shape i don't know how the stock is in 20s. it has to do with the whole remultiplying -- i should come up with my own term to fool people -- that why is macy's valued at so little and enterprise software being valued at so much, even though there's so many enterprise software companies that really don't make any money. >> yeah. >> do you ever look at what those companies are valued at still? even after the -- still? >> you're talking about 50, 60, 70% of off what they were. >> right, but a lot of them do the same thing they analyze your data and keep it safe. you want to know who keeps your data safe? palo alto networks, panw soup to nuts that's one of the best quarters i have heard in 2022 >> i know you've been a fan of his. he's delivered >> well, that's why. see? i'm not a fan of the, let's say, the teams that are -- that have

won a lot. >> i know. >> i know. >> those, i'm less of a fan boy for them >> jim, i got a couple of things from yesterday from my interview with john malone and greg. >> i love that >> let's start with -- did you want to try and get taylor swift tickets? did you have any interest? >> so, my wife said, do you have any power at all do you have any power at all can you do anything in that stupid job of yours? i said, no i have no power to get tickets i don't. i don't. she didn't call it stupid. but i can't get tickets. >> ticketmaster is owned by livenation >> i know the guy. i was tempted to call him. >> they have tracking stock as well and we did talk to greg yesterday, just turned out that obviously the interview was the same day -- by the way, now ticketmaster just saying, we're done we're done we're sold out we have no more tickets for you. if there's anything left, you'll figure it out on your own. here's what he told me yesterday. >> it's like ftx

same deal. >> yeah. and you know, he didn't make any friends. this clip has been shared hundreds of thousands of times >> they're an honest company >> take a listen >> this is a different entertainer. okay >> site was supposed to be opened up for 1.5 million verified taylor swift fans we had 14 million people hit the site, including bots, another story, which are not supposed to be there, and despite all the challenges and the breakdowns, we did sell over 2 million tickets that day we could have filled 900 stadiums, so though aoc may not like every element of our business, aeg, our competitor, who is a promoter for taylor swift, chose to use us because we are, in reality, the largest and most effective ticket seller in the world >> of course, many of the critics are saying, you're the only ticket seller in the world and that's why you're not doing a good job >> we had mastercard and visa. >> monopolies.

>> oligopoly there's certain talent out there that transcend the process of getting tickets. i mean, what you you guys supposed to do this is the one talent that just is the most popular in the world. what are you going to do how about celebrate her. ask her to do more concerts. >> she is an incredible businessperson >> you've seen her >> i've never seen her, and i don't anticipate i will. i have a daughter who was hoping to, but that doesn't appear it's likely to happen jim, also spoke to malone, of course, as you know, and if you want to see the full interview, it's available on cnbc.com, but something i didn't use yesterday, we talk so often about streaming, usually in light of netflix, what's happening there, but obviously, disney, direct to consumer, our own parent company with its peacock service, warner bros. discovery, and what will be a combined offering from them at some point, discovery plus and hbo max.

but i thought malone's comments about paramount and the possibility for creating rationality amongst the streamers were worth taking a listen to. let's listen to what malone had to say about paramount and shari redstone >> probably the one that will be under the most pressure to do something would be shari simply because, you know, to get scale, she doesn't have the balance sheet to get scale, and she's running it pretty high leverage right now and i think the dividend needs are still pretty strong. so, maybe at some point here, shari wants to do something with somebody else. >> of course, that's been a long-running possibility, the idea of creating scale, perhaps paramount and even nbc-u that's been discussed. unclear that there's anything going on right now actually, last night, she was -- thank you, shari redstone, she

was the honoree at the annual committee to protect journalists gala, which is an incredible organization it raises a great deal of money, and this is, by the way, worst time for journalists i mean, we sit here -- there are real journalists out there risking their lives every day, jim. >> oh no i mean, i have someone in my family who's involved in frontline ukraine. people don't realize >> yeah. the bravery and courage of those journalists. >> but david, let's go back. when two publishing companies try to merge >> yes simon and schuster and random house. >> they blocked that >> that's true the government blocked that. >> i could argue that those two should get together in order to make it so there's still scale in the book publishing business. >> yes >> but the government clearly didn't feel that way >> no. >> so, what would happen if paramount tried to merge with disney >> it's a great question and it's very much unclear what the government will allow, and that goes for any of these possible combinations that

people like to discuss all the time yeah you know, would the government ever -- by the way, in our interview, he brought up the idea, would comcast and charter ever be able to get together comcast tried to buy time warner cable, which is what a lot of the charter assets are now would that ever be allowed to happen if you were to bring together an nbc-u and a paramount, for example, you'd have to get rid of cbs and the o&os and figure something out. would it still be enough scale we'll have these conversations, and we'll see, at some point, something may very well occur because there is a belief that you do need -- this business is not that profitable. >> but david, malone -- i'm going to ask you point-blank this industry, the media industry, is considered to be a has-been these days. >> yes >> your son. my kids.

like, cord -- i mean, umbilical cord, you know what happens >> what happens is what you see. >> it's not coal we're not coal, are we >> their primary connection is with this device >> can't we make it on 5g? >> most of our kids are operating on our service i'm paying the bill still for their direct to consumer, but that's what it is. >> i'm watching the fourth quarter of some game because of my fantasy player. >> we talked about sports. >> that's why i think that that's why we don't -- >> they have been the glue that holds the bundle together. >> we're not dead because of sports >> so where does sports ultimately live? will amazon buy more will apple buy more? >> amazon, last night, kirk herbstriet, very exciting game >> al michaels wasn't upset? >> it was a very good game and the titans were fabulous the week before was terrible i keep thinking, if david zaslav

keeps talking about how great the nba is, nba in 2025, that contract's up. so, if i'm amazon, if i'm andy jassy -- >> that's an important one to watch. we never get to jassy in this note about the eliminations at amazon, but you know what, jim, we got to get to bob pisani right now because we want to get more on the market we're coming off our highs but still up over 0.5%, bob. >> yeah, and not bad open, actually lot of relief on the retail front, so let's take a look at the sectors that's moving today and the retail, xrt, which is the one you want to watch, is the retail etf, doing very well today, because we got some relief on the earnings front from a number of retailers, but ark innovation, always a good sign of risk on, risk off, up. semis, up. energy, which, by the way, hit a new high earlier in the week, down a couple days as oil has

been moving down the last few days let's show you the retailers here very good overall commentary from the big three that reported over the -- in the last 24 hours. foot locker cited strong momentum, raised their guidance. ross stores had a beat they raised their guidance as well gap, basically beat on all of the comps. the margins and the eps, that was a little bit of a surprise people were expecting things to sort of fall apart, and they haven't. so you see what's going on here today. foot locker was great. foot locker is positive for the year, believe it or not. ross stores is positive for the year walmart is now positive for the year remember, s&p is down 16%. williams sonoma was a disappointment they cited macro uncertainty they declined to provide any guidance, so that stock is trading to the downside. and we're not out of the woods there's obviously a lot of concerns this inventory issue just keeps popping up ross stores cited very promotional holiday selling season, gap talked about an increasingly promotional environment. this is sort of de rigueur as a

retail environment this is priced into the stocks already. are they going to keep dropping the earnings estimates this is a disastrous year for retailers. there's the s&p 500. but put up the next full screen. in third quarter, earnings were down 9.3% for the retailers year over year. in a quarter where the overall earnings for the s&p were up this quarter, 41 -- they have cut earnings 41% compared to the same period last year and the question was, after what we heard from target, were they going to cut it another 10, 15, 20%? i think the chances are less likely, given what we've heard in the last 24 hours, so maybe the retail apocalypse will be put off. we're up 10% for the s&p 500 in the last month we're up maybe 3% in the month of november. so, the trend is definitely up the fed and inflation are the biggest risk stocks, and that seems to be receding a little

bit, that concern, some comments from bullard notwithstanding here keep in mind, we have had some great moves up in some very interesting sectors, so let me show you some of the leadership stocks in the last month this is since the middle of october. boeing's had a great month that's been a big mover for the dow industrials. nvidia's up 16% in the last 30 days material names, generally, are rallying this is partly on the china reopening story. so freeport-mcmoran has been strong financials are outperforming goldman's had a really great month. we're not out of the woods we need a lot more meat on the bones for this inflation receding story, but i think people are looking at that a lot more than bullard's, you know, imaginary scenario of what might happen i think the key story is the markets starting to act like, if we don't have a serious recession, at least it's going to be a modest one that's what the market seems to be pricing in. david, back to you >> yeah. yeah good point

leads us to the bond market, bob, as well, which is always worth taking a look at, particularly as it may reflect those same expectations. let's give you a quick look. there it is. thank you. bond report. 0.2. spread is tightening a lot take a >> 4.5% you still get for two years. >> that's right. >> take it sell some houses. >> you sold some houses? >> yeah. >> we'll have more on that after the break. another busy day? of course - you're a cio in 2022. but you're ready. because you've got the next generation

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good friday morning and welcome to another hour of "squawk on the street. we're live from post 9 at the new york stock exchange. carl and morgan both have the morning off. let's give you a quick look at markets. half hour into trading we're up on all the major averages we also have some economic data just crossing the tape

let's get to rick santelli for that. >> thanks, david leading economic indicators from the conference board expected to be down 0.4 of 1%. they double delivered down 0.8 of 1%. that is the weakest month over month read since april of 2020 we've only had one positive number the entire year, and that was february, up 0.8 that means we've gone eight months without a positive read that's historic. you have to go back to 2008 to find a similar set of circumstances. also out, leading economic indicators along with existing home sales for the month of october. for existing home sales, we turn to diana olick diana? >> well, rick, those home sales in october fell 5.9% to a seasonally adjusted annualized rate of 4.43 million units that's slightly better than the street was looking for but sales were down 28.4% year over year

that's the slowest sales pace since the end of 2011, with the exception of the brief slowdown at the start of the pandemic despite the slowdown, supply is falling. there were 1.22 million homes for sale, down just under 1% month-to-month and year over year at the current sales pace, that's a 3.3-month supply. a balanced market is considered four to six months supply. that tight supply continues to hold the floor under prices. the median price of an existing home in october was $379,100, up 6.6% year over year. that annual comparison, though s shrinking. while sales are dropping across all price points, they're falling the most in the $150,000 to $250,000 range and $1 million plus the high end weakness is due to losses in the stock arket, higher interest rates and global economic uncertainty all of those weighing on higher end buyers mike, back to you. >> thank you very much. we are 30 minutes into the

trading session. here are some big movers we're watching starting with retailers rallying foot locker, gap, ross stores posting better than quarterly expected results gap getting a boost oof an unexpected return to profitability. those stocks up between 7% and 14%. one name in the sector under pressure is william sonoma they said they would not reiterate or update fiscal outdate through fiscal 2024 due to economic uncertainty. that stock giving up 7%. we'll end with palo alto networks surging after beating on the top and bottom lines and issuing slightly improved guidance as the company's increased spending on network security up 9%. a big outperformer compared to other software companies. the broader markets, stocks are higher after back-to-back losses as investors look past hawkish comments yesterday oil is on track for a second weekly decline, double digit decline. joining us to break it all down

is citi strategist scott kroenert. >> good morning. >> you put out your s&p target of 3900 which makes it look like nothing is going to happen between now and year-end but i believe citi is calling for quite a bit of volatility. what does next year look like in your view? >> you touched on it with the commentary around some consumer discretionary names this morning. yes, we're looking for a flattish market environment for next year. back drop is we think that street earnings expectations are too high, will need to come down that's the bad news. the good news is that we think we can navigate a recession next year with lesser earnings degradation than would typically be the case. the implication is that we're looking for a more disperse environment next year. dispersion typically rises at the sector level around recession periods. we have begun to see that this

year we're calling out consumer discretionary as one sector where we would expect this dispersion dynamic to come into play >> let's talk some of your overweights going into 2023. tech stands out to me. i'm wondering, in terms of that dispersion, tech for a long time had been broadly viewed as slightly more defensive in terms of the big cap technology stocks how does dispersion, how does that fit into the picture for tech next year >> right with tech in general, you're spot on. our expectation is that we'll find that inherent growth ends up proving somewhat defensive as the year unfolds secondly, when we look at this year's action and the impact of rising interest rates on multiple compression, tech has been at the forefront of that. so, essentially the tradeoff here is we're looking for more resilient earnings as we go through this recessionary circumstance at the same time as we get to a point where we're looking at a

lesser fed rate overhang on valu valuations, we think the tech sector is poised for a revaluation higher which plays into what we've seen over the past couple of weeks in this most recent stock market rally. >> scott, you said a couple of times you expect more resilient earnings or less degradation than is typical in a recession why? what exactly are you focused on to back up that claim? >> there's a couple of setups here for example, there are several larger mega caps, particularly in the consumer discretionary sector programmed for stronger earnings next year you also have this sector nuance where you take a sector like financials we knew going into this year that financials were going to have down earnings compared to a function of tough years compared to last year's reserve releases. next year with a higher interest rate back drop, the financial sector is poised to show fairly resilient earnings growth next year

what we're getting at here is when you cut through the s&p index and look at the sector contributions, sector by sector, there's more of a balancing act going on under the surface headed into next year than might commonly be appreciated when looking at just the index level data >> scott, the idea that earnings might be more resilient relative to how a recession might play out, how does that match up with what the bond market seems to be handicapping here? pretty conspicuous how inverted the treasury yield curve is. we might be able to explain influences beyond just we're going to plunge into a recession. how would you match that up with your equity outlook? >> let's think about a couple of sectors to play to that discussion there has been a lot of discussion where high yield spreads will go or should be related to a recession they're proving somewhat resilient so far our work on interest expense on the s&p is that there's no real

interest -- rising interest expense issue for the next couple of years. the refinanced is a couple of years down the road. when you look at a sector like industrials, for example, which is classically economically sensitive, yes, we're looking for resilience shorter term but back half of next year might be tougher. my point is industrials are only 8% weight within the index when you break it down, look at the way the bond market reacts either from a rate or from a credit perspective, especially the setup kind of points to, okay, we know that there's something onerous coming on the economic front how severe is the ongoing question our view is mild recession makes the most sense and balance sheets and the way we priced in fed rate hikes so far this year, set up for a little better action than might be typical around a recession last point, we've begun to give this recession a name. even though we haven't gotten there. we view each previous recession

going back to 1980s as having a paradigm around them tech level, global financial crisis, credit crisis for '20. we're calling this a consumer-led recession at this point. we think the real impact short term on rising inflation and then higher interest rates falls on the consumer sector, first and foremost >> scott, thank you. as we head to break, let's take a look at our road map for the rest of the hour we are on the ground in san jose with theranos founder holmes to be sentenced later today. grindr makes it's debut via spac duriafter the break, we'll an exclusive with boston fed president susan collins. don't go anywhere.

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welcome back to "squawk on the street." let's go out to our senior economics reporter steve liesman, live from boston, alongside a special guest. steve? >> mike, thanks very much. i'm here in boston with the new boston federal reserve president, susan collins, at their president focusing on labor and labor outcomes thank you for joining us i believe this is your first television interview as president. >> it is i'm delighteded to be here particularly, thank you for joining us for our 66th conference on the labor markets after the pandemic. >> i haven't been to 66 but i've been to a bunch of them. i want to start off in a place

that's not usual these days. in your speech earlier you talked about a path way to avoid a recession. i want to start on the good news because there's plenty of other stuff to talk about on the other side is this your base case of avoiding a recession >> let me be -- let me be really clear about my view here and i do think it's important. i'm really glad that you wanted to start here. i do see a pathway to bringing inflation down, which of course is the imperative right now. inflation is just too high so, we are moving forward in order to accomplish that task. i do see a pathway in which we're able to do that without needing to increase unemployment more than some modest amount i'm not going to put numbers on that at the same time, i'm very realistic. there are a lot of risks there are no certainties here. and i do think, though, there are concerns that we could have a self-fulfilling dynamic that

would make a significant downturn more likely so, it's important to talk about reasons why that is not the only pathway. >> it's especially relevant, goldman sachs out with a report saying they believe the u.s. will narrowly avoid a recession. i guess i need to come back at you again. is it a phatfoot path? is there 100 in 1 chance to make it or reasonable expectation >> i am reasonably optimistic. here are a couple of reasons this is a very unusual dynamic that got us to where we are right now. as you know, it's still true that vacancies are really high relative to unemployment so, and, you know, we're looking at the data carefully. we're doing all kinds of different analysis so, bringing those vacancies down, there are a number of firms still trying to hire and

that are -- that tell us, and i'm out in the district talking to employers of different sizes. even if demand slows, which is what we are doing in order to reduce inflationary pressures, they expect to continue needing to hire. and balance sheets are strong. and i still see inflation expectations as reasonably well anchored there are a lot of reasons to have that optimism and it's based on that analysis and that data that gives me that view >> now let's talk about the other side are there risks you don't do enough and inflation gets out of control? >> there are risks and i think it's important to keep both of them in mind. what we're seeing right now in terms of the cost of the high inflation are significant. they take a toll on -- across the board. they particularly impact those of lower income which are having much more difficulty finding

ends meet. when you get do a dynamic where people are spending more time avoiding high inflation than doing productive activity, that's just not good for the economy. it is really important that we bring inflation down and we focused that at the moment. >> are you concerned that the risk is from the fed doing too little to bring that inflation or doing too much? >> they're both risks. if we aren't successful bringing inflation down quickly, there is a risk it becomes entrenched in expectations what we've known -- what we've seen in history and around the world in so many different experiences is then the costs of bringing it down are really high avoiding that is important, which is partof where my resolve comes from there is a risk, especially as we raise interest rates more we're now in a territory where there is tightening from the level of interest rates.

the higher we raise interest rates, that does increase the risk we might go too far that's part of the reason why i believe we're now in a phase where kind of deliberate increments, all of the possible increments, should be on the table as we decide what is sufficiently tight and, you know, what the pathway is to get there. >> we talk about increments, that suggests you still think the fed has further to go. >> absolutely. i look at your prior interviews and you haven't wanted to give a number for how high. has that changed do you have a range you would share with us about how high you think rates may go >> i'm not going to give a number what i've said in the past is the sep, summary of economic projections, from september, that that at the time i thought was a reasonable range i would say that some of the data we've seen since then has kind of increased the top of where i think we might need to

go and as you know in december, we will be giving additional information and a new sep will come out and there will be new data between now and then. that will influence my own thinking. >> when you say all increments should be on the table, 75 is an increment, 50, 25, and zero is also an increment. do you have a place you're leaning in that regard >> not at this stage i will say i think it's extremely unlikely to be zero. we need to go further. there's more we need to do but 75 still is on the table i think it's important to say that as well >> is 50 more likely in your mind >> i think what i will say is historically 50 was viewed as a large increase and we're in a range where most people see us as, you know, territory that is tightening and we're starting to see some promising signs, although certainly we're not seeing clear, consistent evidence of

the kind of softening in labor markets, the kind of dynamics that we would like to see the surface sector prices are still very high, et cetera. >> you talked about promising signs. there's a group of people out there, i guess jeremy siegel, professor, whose work you're familiar with, who things the fed is plum crazy in terms of missing signals. they have data showing rents coming down, they point to the money supply aggregates being lower and they say the fed is tightening right now into all of the signals of declining inflation. how do you respond to that >> i do not see clear, significant evidence that the overall inflation rate is coming down at this point and what we know is that inflation -- tighter monetary policy works through a variety of different parts of the economy at different times

yes, we have seen responses in the interest-sensitive sectors those have been encouraging. as i've said, in fact, longer term interest rates have responded, the housing market has certainly responded. at the same time, a number of other sectors we're not seeing as much response yet that's not surprising. we know it takes some time and so i would say a holistic look at the data does say we have more to do. >> one more question here. right in the vein of what you don't want to answer, which is st. louis fed president jim bullard put out a range yesterday using the taylor rule using bottom range was 5% for a peak funds rate and 7% using hawkish or much more stringent, much more inflationary inputs. what do you think of that top line should the fed not be talking about a range like that? is 7% way higher than you would think the fed might go >> well, again, i'm not going to give a particular number

i actually think it's really important we consider all of the ways of looking at what we're going to need to do. certainly, one of the things we need to consider are the types of models my colleague was talking about and that others have mentioned as well there also are risks that as we see tightening around the world, as we see other kinds of uncertainties and dynamics, i mean, there's a variety of considerations that i think a wholistic view needs to take into account and, again, that's one of the things i will be doing between now and the december sep submissions. >> thank you for joining us. i'm very excited about the topic of this conference, about understanding the labor market in a post-covid world. >> thank you very much delighted to be here enjoyed our conversation >> great david, back to you at the new york stock exchange, i believe, correct? >> yes, i am here, steve happy friday to you. i noticed you are wearing a tie.

>> you don't have a tie on, i guess, right >> no, i don't. >> when i do something where i'm trying to show respect to my interview subject, i wear a tie, david. >> very nice good to see you in a tie we only get you from here up, so who knows what's going on otherwise. steve, thank you steve liesman, boston fed. as we head to a break, check out shares of grindr important to remember here, there may be enthusiasm for this company that came public via spac we'll be speaking to the ceo 92% of the spac holders wanted their money back so they got it back, leaving a tiny float reasons why any demand for these shares is resulting in halts because of volatility given what is, again, very small number of shares that are available for trading. not to mention, of course, a very little amount of money that was in the trust for the company to actually have to help fund its growth we're back in two. ♪♪

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. let's check in on tech stocks the technology select spdr fund

xlk underperforming the s&p as the sector continues to see pressure amid higher rates it's now on pace for first yearly loss on four and worst at this point since 2008. its biggest holding, apple, only down 14% far less than the sector as a whole. check out the move in microsoft, 30% off the highs of the year. those two stocks make up 40% of the etf's holdings as we head to break, let's take a check of crude oil on pace for the worst week -- double digit percent declines. first, our jane wells is live from california with a look at what is still ahead on the show jane >> hey, melissa. the largest warehouse, claims 3% of u.s. gdp comes through its facilities so this holiday season we decided to look at one of those warehseacits en we come back.

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the housing market continuing to weaken amid a sharp rise in mortgage rates according to boston fed president susan collins, the central bank will not be letting up any time soon >> i do see a pathway to bringing inflation down, which, of course, is the imperative right now. inflation is just too high so, we are moving forward in order to accomplish that task. i do see a pathway in which we're able to do that without needing to increase unemployment more than some modest amount. >> here to discuss the inflation outlook from the consumer aspect is john van hiesen. >> great to be with you. >> after we got the data from

lowe's and home depot. what we learned is transaction volumes went down but the ticket size went up, which implies a lot of those gains were inflation. are you seeing the same sort of trend in your business >> it's similar. we're fortunate, though, to have a very good quarter. our total revenue was up 10% and same store sales were up 5.8, as you pointed out, driven largely by average ticket. there was other factors. i think there's three really big factors that helped us one is our stores are just amazing. our local stores are amazing the service they provided in the face of what we're all experiencing in the retail world, which is a lowered bar of service, they produced exactly the opposite our customer engagement scores are actually at record levels. i think that speaks to the degrees to which they're providing service to drive in that business. second is speed. convenience has always been really important for us. as you know, you report on it daily, it's been redefined it's not just about how close your store is to the consumer's

home, it's about digital, inventory and speed. we were pleased to see our digital business grow 22% in the quarter. 90% of that, melissa, was either pick up for free by consumers in the store or delivered from one of our red vested heroes to the consumer's home for free the third driver that helped us overcome a bit of the inflationary issues is our merchandise assortment we feel fortunate we have a lot of suppliers who value a specialty retailer with premium service. thus, we get a lot of exclusivity and differentiation on our core categories like paint, outdoor power equipment and barbecue and you put that all together in the face of a tough environment, particularly an inflationary environment put together a nice quarter. and our stores get a ton of credit for that. >> the environment might get tougher, so i'm wondering how these three pillars of your business will hold up and will provide support for the business in an environment in which gaish

bank of america projects spending on home improvement will be flat in 2023 they say that in this sort of environment, it will be the larger players like a floor and decor, lowe's, home depot that will continue to gain market share from the small and independent retailers. they don't name names but ace would certainly fall into that category so, at what point do you start getting concerned that it is going to be price that will drive the consumer away to some of these big box retailers that might have a better advantage over you in terms of their supply chain, in terms of keeping supply lower >> inflation, interest rate hikes, fed tighten willing, these are without question demand degradation tools anything but supply side tools and so it is very difficult on business the inflation, which we believe has peaked, we've seen three months in a row of decelerated rate of inflation, is significant and it is a headwind for sure here's how i encourage you to think about it that's why i love ace and why i

love our business model. you can think of the home category in three distinct segments that i think the media often conflates. the first is home builders dr horton, et cetera the second is home renovation. this is where our big box players and competitors play home depot and lowe's, and they're very good at it. the third, which is where we play, is home preservation this is -- there's no macro economic factor or smarty pants in silicon valley that's going to develop an app that's going to make living indoors irre irrelevant our business is to serve that community with basically three things repair, replace, preserve, protect, and fortify and beautify the largest asset that most americans own so, we think we're in a distinct segment we call home preservation, which is very different than the other two, which are clearly going to be under some pressure. >> yeah. john, something that was under pressure, at least pressured in

previous interviews we've done with you, was staffing amongst your cooperative, amongst those who run the stores what are you seeing on the ability to hire, keep labor, have things changed dramatically >> it's easing, david. it's still difficult the labor market, as you know, there's far more jobs than people seeking those jobs. this is what i talked about, our store's amazing ability to provide high quality service to their neighbors. it's almost hard to understand we've all shopped. we all experience the lower bar where detailers are actually asking their customers to be gracious because the service is so poor because labor challenges are so real. our stores have been a stark contrast to that our customer engagement scores, we measure how many of our customers give us a five out of a five scale on whether they had a great experience and would recommend. 86.7% of them last quarter gave us a five. that's incredible. the labor shortage is real, but the local owner's ability to overcome that with high quality

staff has been a bright spot for us >> john, great to speak with you, thank you >> thanks, melissa happy thanksgiving >> time for a news update. contessa brewer has that for us. >> north korea has escalated its weapons test by firing what might be its longest range missile yet. it landed in the sea west of japan, but some experts say this was a test of a new weapon designed to carry multiple nuclear warheads and could reach any part of the united states. qatar has banned the sale of beer at the world cup stadium. the surprise about-face comes just two days before the tournament kicks off we have reached out to budweiser, which has a $75 million sponsorship deal with fifa and will now only be allowed to sell nonalcoholic beverages. swedish investigators found traces of explosives at the site where nordstream erupted.

in alabama an execution was called off because prison officials rn not able to find a suitable vein to inject the lethal drug. by the way, another alabama execution was called off this fall for similar reasons that's your news right now david, back to you >> contessa, thank you. coming up, we'll be live in san jose, california we're covering the latest around elizabeth holmes she is scheduled to be sentenced later today. first, another look at the retailers. we had quite a few this week and that includes even this morning. reaction to many of the numbers that were out even yesterday or this morning ross stores still performing quite well foot locker and gap also up. williams-sonoma a bit of a different story. we're back in thre

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. later today theranos founder

elizabeth holmes will, sentenced. scott joins us with the very latest >> reporter: hi. to hear elizabeth holmes' attorney tell it, if she gets any prison time at all would mean judging her by exaggerated media trails and not for the person she is. the story of the person she is, they say, is in here in what they say is exhibit a. this is 280-plus pages of letters from 130 of her closest friends and family members, talking about what a fine person elizabeth holmes is. among the letter is one from u.s. senator cory booker who says he considers her a friend and says he believes ms. holmes has a sincere desire to help others, to be of meaningful service and the capacity to redeem herself holmes' partner, billy evans, who appears to confirm in his letter, they are expecting their second child saying she knows no bounds the defense team writes she's become a caricature to be mocked

and vilified the court has the opportunity and obligation to look beyond that caricature and examine ms. holmes, the human being. the prosecution says this still means they don't get it. they want her to be sentenced to 15 years in prison to send a message to silicon valley. a sentence will serve to not only deter future startup schemes and also serve to rebuild the trust that investors have when funding innovators the decision on you'll of this will fall to u.s. district judge edward davola, 70 years old an obama-appointee on the bench in silicon valley since 2011. if he does send her to prison, he could send her directly to jail or allow her to remain free on bond pending her appeal and it is almost certain, guys, that she will appeal >> yeah, her defense team, scott, seemed to make an

emotional appeal in submitting a lot of family photos to the court of her and her child and now she's pregnant again at the same time, you have to balance all of the other founder -- i mean, trevor milton of nikola, sam bankman-fried of ftx, there's a message that needs to be sent to founders who are going to try to pull the wool over investors' eyes. >> reporter: that's what the prosecution argues yeah, her filing is curious ahead of the sentencing. they say she's going to do all kinds of good works and yet they also say she's been so stigmatized that she'll never work again the prosecutors say that that alone is proof that she could commit fraud again they point to some of her testimony when they asked her about whether there is, in fact, one of the devices she was claiming she was advancing at theranos, she said, not yet. they say, there you go, she's ready to do this again although it's not clear since she can't work again but there is, as you say, this

broader idea of a message to silicon valley that's been a theme throughout this case, which has been going on now for four years. >> scott, thank you. our own scott cohn after the break, we'll speak with the ceo of grindr here at post 9 the company making a public debut via spac on the nyse a lot of fires chasing a very limited number of shares so far this morning at fidelity, your dedicated advisor will work with you

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going public in a spac merger. it's now trading under the ticker grnd at the new york stock exchange it is up almost 300% in a first cnbc interview is ceo and founder george arison. let's start off with the stock price. i made the point in covering

spacs many time. 98.2% redemptions so very few shares out is this what you anticipated or what can you tell people about all this volatility and this huge move up >> i told the team yesterday, get ready for volatility i'm sure there will be volatility, but we're not here for a month or a day we're here for years we're building a company for the long term. all our shareholders that were big shareholders in grindr before bought into the transaction. the people who own this company believe in it is a ton it's an amazing thing to have a company built by a gay founder, by a lot of lgbtq developers and engineers for the gay community, now out there trading. >> well, it's clearly got some enthusiasm behind it and i do want to talk about the business process again, 98.2% of the spac holders redeemed, so there's a lot less cash in the trust for you. originally your original, you know, press releases had $384

million. you're nowhere near that is that an impact to you in terms of not having enough cash to start >> we told everybody we didn't need cash. grindr makes money every month we spend virtually no money on marketing. our margins are strong and growth is strong we think we have everything we need to do the work for the long term and grow this company. >> do we know how many shares there are outstanding? >> i don't exactly know how many shares i think it's over 121 million. >> oh, it? >> i think so. >> stock is halted again with the volatility let's talk about the business itself i think you put up a 42% first half growth rate revenue growth rate. is that the kind of number that you anticipate you can continue this both rest of this year but into next year >> i think our guidance is in the mid to high 30s for the full year and then, you know, we think performance will be strong in the years to come. maybe won't be as strong as it was this year because there is

still probably a little post-pandemic pent-up support we're getting from people coming back into activity but this business has a ton of amortization opportunity we have a strong user base very loyal to the business. we only started to monetize our product in the last two to three years. so, a lot of the features that our peer companies offer as monetization products, we don't actually have yet. >> such as that? >> for example, we just launched boost this past quarter, a way for people to see profiles in many places at one time. bumbl and match had them for years. for us we think monetization is late days and we think we can continue monetization for years. >> bumbl and match have both struggled in terms of their stock performance. is there anything going on in the business where there has been a leveling off of activity or even the advertising side >> ad business is a very small part of our business

we've been focused on getting high-quality ads into the platform that are helpful for our users. we think that's a good thing majority of our revenue comes from subscriptions by subscriptions are new we've only been doing it for three, four years with a heavy focus the last two years we think there's think there's opportunity to grow subscriptions in the future. ads do matter because we have a number of international advertisers. and those, you know, sometimes you can't charge the same subscription levels as you charge in the u.s., europe but subscriptions are the core business of where we'll be driving monetization. >> it sounds like you have a lot of organic growth opportunities. how about using the stock as currency for m&a. >> opportunistically we take a look at things. >> may want to do it today. >> certainly one of the benefits of being public -- one is that you can use it for things you

want to do, m&a, raising capital, debt which is easier to get as a public company. secondly, hire you can hire better talent when you have stock out there because they can look at the stock brands and know what it's worth and try to monetize that so now we'll take a look at m&a. >> you can also get acquired >> that's not what i'm here for. >> that's off the table? >> i will always take a look at any offers that come in, that's my fiduciary responsibility. that's not why i was hired. >> you said you don't really need growth capital. so what you're able -- you're internally generating enough cash to fund growth. >> our cash flow is positive so we can self-fund both. >> how much of the market, the addressable market do you think you already have captured? it seems a lot of your materials say everyone loves us, everyone is on here. >> isn't it incredible 85% of the target audience knows the

brand? >> right in other words, you're just kind of growing only as fast as the population kind of >> no. if you look at our addressable users, which are not exact you kind of estimate based on how many people we think are in the community and then what percentage of those we have. we still have a ton of growth on the user side in north america, in europe and then even more growth opportunity in other parts of the world so we do have a ton of opportunity to add more users to us, but obviously for the last couple years focus has been more on monetizing users we have versus putting more people on the platform certainly growing our user base is something we do care about. i think for us one of the focus areas in that regard is going to be on the older user base. brenda's done extremely well with younger users like 35 we haven't lost younger people to something else. they've come back and stayed with us as generations have shifted, but we have lost some

people on the older side, 40 plus, and i think figuring out ways to bring them into the product is something we want to do. >> we're watching the stock price continue to soar here. >> i must be doing a good job talking about grindr >> you're doing a great job. it's not the fact that there are half a million shares out there. i'm curious how you're going to communicate with people about this this is probably not going to stay at this level, no offense, george there is interest and there's no shares, even though you said there are 120 million total, they're not trading. >> what i can do is ensure that we have predictable and strong performance quarter after quarter and give clarity around what we're going to do every quarter and tell our story to the street, investors and everything else has to take care of itself. >> the senate passed an -- >> grindr goes public and the senate passes the gay marriage bill i was born in the soviet union

so just to be here, when you learn that i'm a gay man with a husband and kids, the fact that 20 years ago that was unimaginable and now that you can do that and grindr goes public and we get 62 senators voting for gay marriage, pretty good week to be an american. >> you're having a good week nice to see you. >> thank you very much >> we look forward to following your continued success as we head to break, let's take a look at some of the gainers, the top gainers in the nasdaq 100 for the week led by j.d. just out with earnings. 15.5%. moderna, baidu, a good week. we are back in two

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well the come back to "squawk on the street. let's go back to jane wells. the supply chain just one week away from black friday hey, jane. >> reporter: hey, melissa. this is a 370,000 square footwear house it's owned by prologis it's leased by idc

it handles material for electronics companies, retailers. we shot this drone video we were here at the height of the supply chain crisis. trucks were not delivering they were not taking away empty containers they still have halloween stuff in here ten days before halloween. fast forward, things are moving smoothly, maybe too smoothly as some retailers are bringing in fewer imports from china or ships have switched over to the east coast and still going there. all of this happening in a tight warehouse market where there's still very little space left and rents around here in places like torrence have skyrocketed. >> when i moved to the u.s. 12 years ago you could get a warehouse in torrence for 50 cents per square foot. right now you are at $2.40 per square foot. >> so almost five times more >> reporter: prologis is the largest warehouse reit

it has a billion square feet should it be worried about a recession? it's been able to lock people into leases for six years. >> we pour through the proprietary data we are looking for the canaries in the coal mine we are still struggling to find any cracks. >> reporter: 60% is built on spec prologis is not building anymore on spec. dan letter told me, interest rates, high interest rates help him. it makes it more expensive for rivals to build warehouses and it makes prologis spaces more desirable. >> jane wells, thank you i want to take a look at it grindr it's not often we see stocks

move up over 440%. almost all the stock was redeemed so you have like maybe half a million shares but then total shares are a lot more than that, but they're not available for trade. wow, that's somewhat extraordinary. we're going to end on that note. that's going to do it for us on "squawk on the street. "techcheck" starts now happy day. welcome to "techcheck. i'm jon fort with deidre bosa. we have earnings from applied material, palo alto network and jd.com what they signal about the current state of the manor. plus, elizabeth holmes awaits sentencing after being convicted on four counts and then the tech layoffs continue and could continue into 2023 amazon and