zoom next time this is where things stand dow 150 points higher. nasdaq up 50 points. s&p 500 up about 20 points melissa, lee, you made it through the two of us. it worked out. stkphreut was my pleasure. >> joe, see you, tomorrow my friend "squawk on the street" begins right now. good tuesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber china is on watch as covid cases surge over there and restrictions resume. our road map begins with tech is no good. down 30% since the record high >> plus, disney's cost-cutting strategies now ceo reported unsettling

restructurings that will be coming and a roundup of retailers holiday shopping best buy, dick's, dollar tree and others as carl said, more positive than negative >> let's begin with the markets. one year after the nasdaq's record intraday high, the index down 32% 30% drawdowns. not very common in history >> no. remember, this was the beginning of the thankful. seam holding up a little better. unworldly designs. meta being one of the disappointments. netflix at least coming back people are worried about amazon. alphabet hired too many people the real pain is in these

enterprise software companies. a workday, service now, salesforce some of the smaller guys are just being obliterated companies now are just now getting down paraded. there is an amazing disconnect of the price targets of, say, what people want someone says i will take my salesforce target from 300 down to 290 and that whole process of trimming the estimates has cast a toll on this group >> and it hasn't turned. >> not at all. >> we talked about jeff smith, starboard taking that position in salesforce. focused solely on enterprise software

typically most of its targets were private companies that has not been the case the last couple of deals that may be a sign that, hey, at least they see more value in the public markets for these beaten down companies than in the private markets where perhaps the marks haven't been taken and they don't want to take them yet that hasn't helped to turn any of these stocks in a meaningful way >> no. and i think what happens is they need customers a lot of these companies are predicated on ever more companies becoming public. they buy the software. you have to have onboard with service now. you have to do workday you have to do salesforce to have customer relations. and you have to do more than that and the more than that competes against everybody. a company service now reported amazing work, probably one of the best quarters of the year. and peel say i will sell that

one less >> i'm thinking of mega cap, huge amounts of recurring revenue. he thinks there is a moat between the large guys and the other guys you're talking about. >> they go down 50 and not 80? honestly, some of these companies -- look, this morning -- >> microsoft was seen for quite some time as sort of a safe place to be, so to speak so safe in microsoft >> i was wrong that's of course from "witness." i think the most indicative. i'm trying to come up with a nice word. the most disappointing was from cowan. downgrade. carvana. buy to market perform. >> that's really helpful >> peloton downgrade to market perform. >> why did you bother to waste

paper on these look at all this paper you printed. >> i planted 25,000 trees in oregon 25,000 trees bucket tree, by the way. those are all one person i won't mention it >> and that's not all. there is carvana this morning. >> rip van winkle? >> what? >> asleep for years. >> carvana, you know, you said we would be safe in carvana. you are supposed to say, no, i meant vroom. there are some companies that were tone deaf to what's happening in this economy. the economy got mesters. >> i think a lot is house cleaning before the holiday. >> they weren't paying attention or worried about the tree factory? >> elon musk's wealth is down

$100 billion >> i'm actually starting to feel for him. >> tesla is down 52. >> i'm worried about elon. he has 10 mouths to feed what does he have left 150 bill and he will lose 25 bill at twitter. >> i didn't take a course to allow me to know one of his kids's names >> his twins -- 1-year-old twins. congrats on that >> perfect can we talk about tesla for a second >> absolutely. >> sales a little down in china. >> volkswagen cut their target >> china sifts a quandary. that's got to be the most self-inflicted wound of our generation there is nothing keeping their people from being vaccinated they have an mrna that they

claim is their own but is ripped off. the studies hearsay 43% are helped good. >> well -- >> what? >> you're right, self-inflicted. >> self-inflicted. >> they created it, too, right, wuhan, the lab >> created it? who are you? >> i'm not a conspiracy theorist >> let's get navarro on the phone. i have him on speed dial >> i'm not interested in your conspiracy theories. i'm sharing something that may be true. but the covid cases are 28,000 new cases as of tuesday. >> go back to april. >> a level of lockdowns said a record slightly worse or larger during the spring in shanghai. >> the deaths tell me in particular, can they tell the truth about anything three.

three people die every 10 seconds who are not vaccinated in our country flu season is here >> you say the same thing. they haven't changed we're talking about, what, 20% of china's told gdp is at risk right now, according to the moral lockdown index >> you say the same thing -- you know how insulting that is to me >> i'm sorry >> i'm not that insulted >> good. i'm glad my point is they haven't changed their behavior you are frustrated you bring it up. you want them to have the vaccine they don't have. >> have you been with any of the executives who actually had the vaccines, the ones that work >> not recently. they have all offered or they even know they have been able to rip them off and reverse it. but they -- i don't know what's with president xi other than the fact that it would be a terrible admission their vaccines don't work >> they are closing parks and

museums and shopping malls who knows, david, maybe that will include theme parks >> speaking of parks, of course disney has a big theme park in shanghai, very important one bob igor and bob chapik took 17 trips together and spent a lot of time together it is day two of igor's returns. >> good segue, man >> sort of a little anecdote yeah igor is already busy, guys you saw this late in the day not unexpected he doesn't like central planning after michael isner's reign, he got rid of that central planning >> that's what people want it's called accountability very hard with central planning to figure out -- let's say avatar 2 is coming out say it doesn't do well

whose fault is it other than the cfo? >> it's like blaming presidents for inflation. >> this way you can hold people more accountable and they will be focused on getting it right when it comes to costs that said, as he goes through a lot of things we will watch him deal with in the next couple of years, direct to consumer, a lot of that money has already been spent on the platform. we will see how they choose to amortize and sports and sports rights we have talked about. kareem daniel is gone. he was the main guy running this overall, sort of deciding. >> it was a company within a company. >> is that how it has been described to you >> a company within a company. >> and another thing that has come up in the conversation, guys, is this two-year term. nobody believes it's going to be two years. i talked to ceos of two other

major entertainment media companies. both said two years, forget that he needs five. he's the tom brady of media. might as well -- he's going to go long. it's going to be five, not two >> is he bitcoin >> we'll see whether or not that's the case. that is the latest chatter two years. you stabilize. you make operational changes but really what are you going to be able to do strategically in two years. also, you're supposed to be looking for your successor >> and hulu. >> the option to put 3%. owned by comcast they're going to pay cash. >> cash. >> yeah. >> what are they going to sell >> i don't know, jim >> disneyland? what are you going to sell what do they have? the rights so, i don't know "the

simpsons?' >> deutsche may have called for a sale of espn >> well, they can go sell the rest of them >> we shared part of a conversation with iger about espn and sports rights we shared that yesterday he thought it was bob's issue. he would press hard to get as many as they possibly can. >> they have not used the platforms correctly. they have not. >> right they have one fantasy channel, which is awful. they haven't been able to figure out how to monetize gambling they don't know about gambling >> that's not true they know about gambling >> we talked about it our last interview. >> they're good talkers. >> yesterday, they said, jim, what you have been saying for a long time. the fox purchase, asset purchase, was a strategic error. >> right

>> it would have been smarter to launch without that, maybe price it better. core disney fare >> they priced disney plus at 6.9 $9 that was incredibly low. >> they wanted to get the number -- they missed the whole pivot. we want companies to make money. we don't want them to just sign people up. >> everybody missed that pivot >> not everybody missed that pivot. >> late to the game but dar ra that was the famous memo it was about uber. we can't keep losing money that's not what people want anymore. one of those memos imagine like if you wentto you mom and said, listen, i got a job. i get to lose 20,000 this year no, the goal is to make money. mom, you're missing the whole

point. the goal is volume she would say, davide, give me somebody else in the family. i was making $10,000 he said a day? i said a year. he said i'm cutting off your credit cards i don't have any credit cards. he took my amoco card. >> next thing you know he was sleeping in his car. >> it was comfy. ford fairmount in the back, axe, underwear, bottle of jack and a is .22. >> and you wrote about steve request mcqueen. >> he was a great man. all he asked is not to mention how charitable he was. >> report cards ahead of black friday this week best buy among the biggest gainers as they resume buybacks and raise their guard. the premarket, a lot is reflected in there more "squawk on the street" back in a minute.

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best buy, the biggest premarket gainer after reporting a quarterly beat and smaller decline in comps than analysts had been expecting raising their full-year guide heading into the holidays. same for dick's sporting goods revenue and comps. a and f will open 15 >> they underestimatedbest buy i had cory barry on, a remarkable ceo

she said we don't have a lot of inventory. we know what sells well. we know the pcs are a glut no one listened. what does she know she's a brilliant executive who manage, unlike everybody else, david, to have a supply chain in place before the problems start. she figured it out she took the hit early on. she said i'm going to make it so if there's ever anything that happens in the supply chain, i'm going to be ready. why does she not get any credit at all >> i don't know the answer to that how should i view dell's earnings or hps earnings >> i have hp tonight dell earnings are really sad >> a lot of pc sales that take place at places like best buy. >> she understood don't overload the inventory. >> she managed the inventory

well >> look, i think they all know great merchants care about inventory than anyone else >> yes >> she handled it well dell had a good quarter and said it's unprecedented the decline of demand in pcs >> they reported already, didn't they yeah >> they're not doing that well >> no, they're not >> we're going to see dell shares -- they're hang anything there. 6% hp after the close >> dell was 1.50 then it was down 1.50. now it's unchanged some people must think the inventory cycle is further along. my information to them is you are wishfully thinking there's still -- listen to what they said.

nvidia said we are not through the cycle. that's more gaming the end of the year. these companies all have, including intel, way too much inve inventory. they would love to think they don't. but when you drill down, they do they have too much inventory >> a rise in consumer credit as savings dwindles seven quarters of excess income is basically done. >> yeah. i will that. one of the things that i want the fed to recognize is the last of the child credit -- the child credit was very good so now there is no new money coming in. people are starting to buy less. there's been some trade down my favorite store dollar tree. it wasn't as bad as now. who are the stars? costco pretty good but trade down came tjx.

and, david, by the way, i have music in my ear so i do have to leave this period. but before we go, david does shop at tjx. >> it's very close by. this tie is not tjx. >> you got that at a cut rate place. >> i did not but i love finding my little bargains at tjx. it's fun i don't go often but every so often. >> you're never going to -- >> that's from abercrombie and strauss. >> i hate shopping i never go to stores let's make that clear >> cramer's mad dash and opening bell after the break take a look at futures don't go away.

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all right. three minutes until we get started with trading at the nyc. let's get started with a mad dash medtronic. >> i have to give them this. when things are going very poorly, they tell you things are going poorly the key message of fiscal 23, you will like this revenue shortfall due to slower

market and supply recovery delivered eps on stringent cost control. and they talk about the pace and procedure, supply recovery david, in short, it's just one more bad quarter from a company that we used to set our watch to >> covid threw a lot of things off when it comes to elective surgeries, for example >> right. >> there's expected to be a full recovery there >> right. >> things are still slower do we know why devices aren't being used or used quite as often? >> i think there are companies with better devices. >> you think it is more of a market share >> i don't like what they have done in neurology, which has been weak. medical/surgical, ventilators, terrible diabetes increased 3%. are you kidding me that used to be something i

thought you would count them neuroscience up 5% these are just board numbers the board has to sit back and say, okay, how are we doing here how are we doing here? >> they are cutting costs. >> it's a growth company >> maybe not anymore it's not like fiskar, right? growth company with no profits but that's all right med medtronic has growth >> an updade of wba over at cowan. crypto retail into health care services >> roz brewer is getting recognition for her switch that's a good company and it's a buy. good deal. i would be a buyer, aggressive

buyer of wba >> opening bell here big board. celebrating the start of production at fisker more models outside the change after gm brought some to you >> yes it's all very exciting, but you need money in a better market, they could have raised a lot of money it is a $42 billion company. letter a, acknowledge i'll testing measurements for all different businesses, life sciences had a remarkable quarter when you read the quarter,

things got very difficult. it was like nothing ever happened no head winds. david, do you know how many times i had to read about macro head winds i'm tired of macro headwinds. >> in china they are doing well. >> here's agilent. >> it's not a name we've focused on that often. $43 billion market value >> it's interesting that there were so many different things that happened to the packers the division was the one that was an afterthought. agilent. the old oscillator business. it goes like this.

like the world cup in south africa remember those things? >> whoa, saudi arabia. can you believe that upset >> yeah. >> iran they didn't sing the national anthem. >> that was quite interesting. >> on the one hand they are trying to develop nuclear. on the other hand, there is -- >> significant particularly amongst the younger demographic. >> why don't we talk about it? >> well, because we're a business show. >> jack in the box is opening two new markets in 2023. stock is down 10%.

the dow dell was classic dell's quarter was extraordinary. nothing was worse than the zoom. zoom was on. look, i think kelly is terrific, the cfo. the stock is not down as much as before in the quarter, zoom gave you very little hope other than some of the internal things they're trying to do to become a 360 but in the interim, the enterprise, just okay. the individual, just okay. so there's nothing, other than the fantastic cash position. and it is still regarded as a , yes, covid play. >> i'm just reading b of a's note about comments about the stock supplemental brands. which they continue to have to >> he said it would come back and haunt us >> i appreciate you saying that.

the stock-based comp was interesting. of course, as carl mentioned, the other -- it's either pay people in cash or keep giving them more cash to make up for the stock that under performed >> there is a reason why salesforce goes down a lot >>. >> i don't know. you would be the person i would ask that to. they are focused on that >> i felt you had something. >> i have an ongoing interest in that story, yes. >> do you have breaking news >> no breaking news on crm or starboard. is there something you know that i don't know >> are you going to used fried onions from the can on thanksgiving like we were taught. >> yes >> see, that means we were humbled. nobody cares anymore whether you're from had up bell beginnings

>> how did we get there? >> distraction >> you didn't mcme up with starboard. i gave you what i think was one of the greatest segues ever. the heck with you. listen to this katie used to cover apple. things that catch her eye is her thing. yeah bank credit card delinquency rates are quickly ramping. this is something to follow. >> it is something to follow something else i'm following, i'm going to do something now. >> downgrade to credit suisse, blackstone.

>> the bcred, private equity, real estate. the focus that i've seen this morning breit is inflecting into third-party net redemptions. they cite that as one of the key reasons why. blackstone not credit suisse >> explain that to me. in other words, people gave blackstone money >> correct >> betting they would have big returns. >> that's right. well, in a very low interest rate environment we were talking about the inflows were incredible. 3 billion a month sometimes. >> they sell a lot of houses >> no. they own a lot of houses >> exactly credit suisse has done significant analysis, at least in their point you know what, there were points

to less sustained relative outperformance even though they do say the outperformance so far has been justified because many have been questioning the marks in the portfolio overall. breit has been a product we've been focused on. >> they think they're too high >> yes >> that is not the nature of the company. a conservative company >> it's true >> i bridle at that. >> you can but you can look at the publicly traded reits and where things stand with nav they downgrade the stock as well as we know, a lot of other markets that black stone relies on have been a bit more difficult. they always find a way to make money at black stone >> i'm going to draw a bizarre analogy. rich people doing well by rich people

the stores up as much as any stock. the one i go to in brooklyn is where you go -- this is a very inexpensive place to shop. yes. >> people who have a lesser income, you want to invest in what they like right now because they are the ones that control this thing people who felt very wealthy and now don't feel weighty and people who were making 40, 50 thousand where inflation is going up at say 17% to 20%, and their income is going up 5%. >> exactly what urban said on their earnings down nine. a lot office the inflation on younger consumers. >> remember when you would go to buy lemons, you would get four

for a buck and a half. >> what are you, dr. oz? >> no. he was at wegner's getting a crew i did tay plate >> i paid a buck for one lemon how is powell going to bring down the price of a lemon? i'm up 75 basis points and get it back to where cramer liked it no, not going to happen? how about getting tickets down to disney. >> disney day rates are very high they were just raised prior to mr. iger's reentrance. >> and the rides >> i have no status of rides >> the rate of which or why it goes down. way up double digits versus prepage >> david, these are things

you've got to focus on >> i will do that. i will get on the starboard crm thing because clearly i didn't meet your expectations there guys, i wanted to come back to dell if i could. because the stock is up -- >> i covered that twice already. >> you know what we didn't cover last week is a lawsuit settled for a billion dollars. it's my old area of m&a. they bomb vmware >> they stole it >> what did you just say is? >> they stole it >> 14 billion in cash. 149.3 million shares of class c for what was a class v it was tracking stock. they bought it vm has been sold to broadcom but they got sued by the shreur holders saying just what he just said you stole it on a deal that goldman sachs advised on he is now with dell. they merged with bdt they are creating this giant adviser to family offices.

they paid a billion dollars settlement some shareholders would tell you yeah but michael dell underpaid by 6 billion. now they are paying a billion and they still get away. it companies back to the point that michael dell always finds a way to make money. people believe at some point this will go private again if it doesn't trade up nicely. >> they are too linked to pcs. the server enterprise not that good i've got another thesis for david. i just want to be dismissed out again. there are too many pcs but not a lot of clothes the inventory levels -- even american eagle which has become a second-rate company. the inventory at gap stores,&&f, it's like they got religion. >> prior quarter up 38 >> yeah. so here they have done very well the inventory management at tech is just terrible

and they haven't made any cuts in tech. no one gets fired at tech >> why do you think that is, jim? are they not accustomed to cycle? >> they don't know how to fire all they have had is growth. a huge percentage of the companies that do enterprise software have never seen a real down turn. companies in retail have all seen down turns. they know how to fire. >> i know a guy who knows how to fire his name is musk >> apparently we're down all hands meeting musk says no more layoffs planned for now >> wow >> what are they down to, carl do we know where they stand in terms of true head count a number said 900. the lady who said, no, that number is way low, she left. >> "axios" has a piece this morning saying on the edges the core infrastructure is beginning to degrade a bit

more reports of outages, copyrighted video up for hours when it shouldn't have been. so we will look for signs of decay. >> remember, i'm banking with them >> i'm sorry, you believe in him? >> i'm a believer. >> there's legions of believers for obvious reasons. >> it wasn't doing well before he took over >> it was not. >> i think he paid too much. i think if he could have gotten it for half. half may still have been too much. >> meanwhile, tesla below 167 takes out yesterday's low. >> jim, we talked a bit about this yesterday tesla almost a proxy for twitter. >> it is it has become a stocking track for twitter. tracking stock >> i heard you the first time. >> it was a good analogy i liked it >> to your earlier points at

reits. >> they just decided people are no longer any good steve roth is every good as david simon. these people are good at what they do. >> how are you going to bring, a, tourist the back and office workers back -- >> yeah. >> it's about penn station >> penn station redevelopment. to carl's point, jim, you still have office buildings 50% full if you have the top of the line a building, you're doing okay. hudson yards one vanderbilt doing fine. the vast majority are not doing great. >> federal reality he did great kimco, tanger factory outlet >> how do you reinvent this? obviously, you're not just -- you can be in growth markets but people are not going to come to the office.

it's over to the level they once did. >> i worked on disney reinvention. that didn't work i'm not going to solve the problems vernero has >> by the way, bofa solicited investor feedback on disney. they asked are you more of a buyer at 100 than you were at 90 none of the respondents think espn gets spun or sold any time soon they asked about potential successors most didn't have a view. a few offered sheryl sandberg. >> no way on sandberg. >> i think vitaro does a good job. >> that's the name >> it's a name that would make a lot of sense he's done his best in a declining universe he's done pretty well. they play the same sub game. it is a loser game but the bundle is good and they still haven't recognized what kind of game you

have in the fourth quarter, when a team is ahead by 30 points you still watch it >> right >> for espn, could you separate it out and still have an agreement where you can bundle it we are moving, many people believe, you need to have a bundle not just your own. disney is in a position where if you bundle you can give the consumer enough of what they need and want. beyond that, if you're par paramount, would you bundle with disney. >> he runs the justice department >> well, you can >> he's a powerful guy >> why would that be >> because he feels that i think -- i don't want to put words in his mouth, but a writer won't do as well if paramount combines -- >> i'm saying just in a bundle being offered to consumers not a combination of companies >> are i don't know if i want a bundle >> a joint venture

these are difficult to pull off. >> is alexa losing 10 billion? i asked her this morning she wouldn't give me anything. >> at amazon >> yeah. >> the cutbacks at amazon? >> emergency call. they have taken a hard fall. david pushed me over during the commercial i'm okay >> david asked you a hard question are you okay >> siri, i am fine it was just david. oh, good >> everything is okay now? >> yeah. >> all right >> all right, guys nice bouncer at the open dow up 200 get in on the cnbc investing club with jim. you can use the qr code on your screen it takes you right there as we go to break, watch bonds today. we are not done with fed speak for the week

that comes on the heels of comments to sara eisen there's a look at the 10-year, south of 377 don't go away.

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interesting setup for energy today we heard from the white house earlier this morning on "squawk" saying thalt be opportunistic on the spr. looking to repurchase when prices are in the $70 per barrel range. 'lr now, wti hanging onto 81 wel get "stop trading" with jim in a minute. wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq

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let's get to jim and "stop trading". >> one of my favorite deals is rails. last night southern northern bought cinci railfor $1.6 billion. the reason i mention this is because the rails have so much cash flow, they keep doing everything right and they got the wind fall. the windfall is coal it's only sunny in philadelphia, it's only sunny in germany 27% of the time. the need for coal in europe is so great, that it's just a windfall for norfolk southern, which is very well run anyway.

further consolidation, but most importantly, union pacific is too cheap. csx is too cheap and norfolk southern is too cheap. >> you talk about the potential for a strike in december >> look, in 1992 there was a strike and the government solved it, the federal government the deal being negotiated was biden's deal biden can say, hey, guys, do you ever read the fine print you're back to work. i think we can make too much of the strike it's biden's deal and he'll order them back to work. >> we talked to marty walsh about it but it could cost the economy $2 billion. >> ain't going to do it. they won't let them do it. they'll just say, listen, you get back to work >> some people are taking issue with your lemons they think it was per pound. >> i bought a lemon for tonight's show >> $1 spth 47. >> do you buy it at the bodega around the corner? >> king's.

i usually get two for 4 bucks. >> you obviously paid it. >> i made it up. i paid 32 cents for it. >> i think you were overcharged. i think you were overcharged >> i think david has never been to a supermarket in his life. >> i've been to tgix. >> you're not having any of my string been casserole. >> i went to - >> the cranberry, the sign you made it. have you ever made it? >> oh, yeah. >> when you've made it, you have that and slice the orange underneath >> that's living that's high class living, my friend. >> i always get the second joint. you know what second joint is? >> the second joint? >> you know what it is >> no. >> you have the drum stick and then you have the part that's connected to the body. that's called the second joint it's dark and it's fantastic. >> delicious >> yeah. it's great >> really quick, what's "mad" tonight. >> two days away

>> wouldn't you like to be a fly on the wall -- >> steve will probably tell a positive story, because he never tells a negative one, hp and wabash heard i liked him on the show and wanted to come in i want to wish everybody a happy thanksgiving tomorrow i have the morning off, but you'll do that, aren't you >> you're going to be off tomorrow morning, so happy thanksgiving because i'm learning about it right now in real time. >> david, it's lno fried you've probably had fresh but you were always rolling in it. >> oh, yeah. >> my house -- >> a big party there in queens. >> i love this. >> it was great. >> let's take a look you grew up in a house in the projects enough you're rich now. way too rich. >> oh, stop that, mr. marxist. >> me? >> we'll see you tonight, jim. "mad money" at 6:00 p.m. dow is up 210. n'gowa bak are dot ay.

good tuesday morning welcome to another hour of "squawk on the street. i'm carl quintanilla with mike

santoli and david faber. morgan brennan has the day off the bulls are trying to see what they can assemble before the holiday. >> we are 30 minutes into the trading session. here are three big movers we are watching starting with zoom individual yoeshgs tumbling after giving weaker than expected guidance for the current quarter. the company did beat on earnings, but overall growth has slowed considerably. on the other hand, check out best buy, surging, beating on the top and bottom lines the company also raising its full year forecast that stock is still down more than 20% year-to-date even after today's 8% pop another retailer popping, amber crom by and fitch. it's up 15%. reporting unexpected quarterly profit and beating street revenue forecasts. don't miss an exclusive interview with the ceo of

abercrombie & fitch later at 3:00 p.m. eastern time. stocks mostly higher, trying for the second gain in three days yesterday on "closing bell," cleveland president mester said the fed policy is beginning to do its work. >> our policy by tightening monetary policy, our aim is to slow down and moderate demand so it becomes into better balance with supply. both in product markets and in labor markets so we alleviate price pressures. i belief we're beginning to see some of that working >> joining us this morning, charles schwab liz ann sonders and at post 9, jpmorgan's asset portfolio manager, frank c camparelli i would like to get you on the fed, especially with daly talking about two-sided risk, and larry summers saying maybe we don't get to 5, the terminal

rate what is your view? >> i do think you're watching this shift by the fed viale. speakers from really having their focus purely on the rearview mirror in terms of inflation as the data has come in i think the business of dissent in traditional measures of inflation have given them some leeway to start drive using the windshield, understanding the variable lags in terms of monetary policy. so, i think that's the right step we are slightly biased to the terminal rate being maybe a little less severe on the upside than what is priced in there's still data-dependent, so there's a lot of data between now and, say, the february meeting. i think it's probably 50 basis points for december, though. >> speaking of the rest of the year, today it's deutsche, saying 4200, 4300 by year end.

the positioning and buyback. those two together does that make sense >> the path of least resistance in the near term is probably higher it's led to worst income history in the year of bonds i think from the standpoint of, where do we end up if we're 4% of the target rate and getting to 5, they're 80% done that's a huge weight off the shoulders of investors that have had nowhere to hide this year. i don't think the open mouth operations from the fed changes any time soon, which allows the market to really run i actually think the better place to be next year is probably in fixed income than in equities >> there's a way of, i guess, telling the story of 2022 as if this was a big payback reset year, and maybe a lot of things were packed into it. we did get the fed going from

zero up towards 5%, perhaps, by the end of the year. you've had the s&p 500 valuation come down from 23 times to 17. the speculative parts of the market have been completely blown out. there's not been an ipo of any size for a while and you had the real retrenchment in bonds where does that leave you as a starting point for 2023. obviously the economy doesn't operate by the calendar, but i'm curious how we should think about it >> all of us at schwab are putting together our forward year outlooks. mine will be published next week and you are going to hear from us, particularly my colleague, kathy jones, who i know you all know on the fixed income side for a better outlook on fixed income there's a lot of strategies, particularly active strategies from an equity market perspective, if you have a

one-year time horizon, i think the outlook is pretty good sentiment recently has been supportive of that some of the positive divergences in various breadth indicators. i still think the market may not have fully digested the coming weakness in the labor market, which is the fed is still trying to engineer. so, trust them that they will possibly be successful in doing that i think there's rerating on the downside in terms of forward earning estimates. you can check more boxes of, all right, things are starting to look better at recent lows than you could back at the mid-june lows i think there's still some stabilization that needs to occur in housing, in forward earnings estimates, which means the near-term outlook is probably a bit more volatility, even if the sun is shining a bit brighter with, say, a one-year outlook. >> phil, with regard to equities, you're still more cautious >> yeah. >> what has to line up for you to get to that point of saying now the coast is a little

clearer? >> the october cpi report we got two weeks ago highlights in a major way how corrowded the shot is we got a 500-move in one day it does highlight how crowded the short is i think the earliest we could get to even neutral in stocks, about 6% underweight the most was 20% over the summer a little closer to home. what would have to line up is a couple of cpi numbers in a row to the point the fed doesn't need to break the back of the economy. that was the old larry summers argument the fed has no chance if they don't break the back of the economy. if they can stop at 5 and the economy is trading around trend growth, multiples will expand. that would be the environment we could get to neutral. >> finally, can that scenario unfold if the labor market remains as tight as it is? there's been a lot of discussion about the trajectory of claims

and whether that por tends more weakness in the nonfarm payroll than we're used to >> i think there are cracks but it hasn't manifested itself in the traditional indicators yet to the point about does there need to be more weakening, in the labor market, i think in conjunction with the type of lack of weakening i think the fed would like to see, plus any significant rally from here in the equity market has had and will continue to have the effect of loosening financial conditions, which is not a feature of what the fed is trying to do so, i think we're all pretty convinced the fed put has been put to bed, but i wonder if we'll use options language, whether there's a fed call and they might feel compelled as they've done really since august to have to jaw bone to push back against the loosening of financial conditions if they feel that that's a risk of reigniting inflation so, i think that's just something that we have to be mindful of, particularly if we don't start to see more deterioration in the labor

market. >> that's good if we don't see you before thanksgiving, enjoy the holiday. >> you, too. >> we're thankful for both of you. liz ann sonders, phil c camparelli. day two of iger part two disney shares are giving up a bit of the gains they saw yesterday on that stunning news that bob iger was coming back to run the company as ceo, a company, of course, he was the ceo of for some 15 years, from 2005 to 2020 sat on the board of this company, by the way, for roughly 2 is years starting in january 2000 as well he's already busy. already at work. perhaps not a surprise to those who followed his career closely. if you read his book, for example, you know that when he came in following michael eisner back in 2005, one of the first things he did was dismantle so-called central planning he likes the idea of having profit and loss statement closer to the creative units. yesterday in a memo, we learned

that he's asked a number of top executives to work together on the design of a new structure that puts more decision-making back in the hands of our creative team and rationalizes costs. so, a reorganization already taking place at something called disney media entertainment that was run by a very close ally, colleague of former ceo bob chapek he's already left the company. and this is designed to, again, do what iger did in a similar way last time, which is get your creatives knowing exactly what's at stake and not having it sort of moved off, so to speak, to another area of the company, mike one important move, but certainly many more to come, we should also point out, by the way, we got iger's pay package some were expecting bigger numbers. a million bucks and $25 million in target value, long-term incentive awards 60% is in the form of restricted

stock and stock options. >> clearly not a move made for the financial score. i believe, you know, iger probably still owns a couple hundred million dollars of disney stock from all the years. but, you know, it's interesting that the response from investors in the street is net positive, but nobody quite thinks there's, you know, one switch that could be flipped and everyone is pretty well now absorbed in the difficulties of what the industry faces. one interesting element is, though, when everybody is going to be a little more disciplined and rigorous about figuring out content budgets, does this now put disney in a better spot to pick and choose their priorities of where to spend, how much, who to ally with i think it's relevant. we're not just coming out of the content spend binge. it's obviously a lag time. now a little bit of a tougher

standard of what you're going to do. >> everybody is assembling to-do lists on behalf of iger, mending relationships, bringing stability, unwinding the corporate structure. a lot of people expect him to rein in the 2024 dtc targets, perhaps on the february call. >> bob chapek promised by fiscal '24, although we had the caveat, that they would get to profitability for direct-to-consumer business. investors will be watching that closely. a lot of costs have already been baked in you've already spent a lot in terms of the content that mike is talking about there some $16 billion a year right now is where they're running let's get to a break before we do that, here's a road map for the rest of the hour it includes the latest around ftx as executives are expected to make what would be their first appearance in bankruptcy court at the top of the hour

plus, speaking of crypto, we'll take a closer look at bitcoin, touching two-year low that is not yet stopping cathie wood, though still bullish on the space. china continues to combat rising covid cases, shutting down public spaces like museums and parks. we will take you live to beijing as a lot more "squawk on the street" continues in a moment. if you have this... and you get this... you could end up with this... unexpected out-of-pocket costs. so if you're on medicare, or soon to be, consider this. an aarp medicare supplement insurance plan from unitedhealthcare. medicare alone doesn't pay for everything. and what it doesn't pay for, like deductibles and copays, could add up to thousands of dollars. medicare supplement plans help by paying some of what medicare doesn't... and making your out-of-pocket costs a lot more predictable. call unitedhealthcare now and ask for your free decision guide.

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welcome back to "squawk on the street."

bitcoin trying to bounce back in today's trade after touching a two-year low dom chu back at hq. >> as you can see in the charts you showed, we're touching around that 16,000 level again, which is the level the new reset for bitcoin prices has been hovering around. you pointed out the near two-year low if you look on the basis, two-year rolling side, at one point intraday we go back to november of 2020 now, just to give you some context, the record highs in that kind of massive move to the upside, the total market cap of bitcoin overall, according to data from coin market cap, was just around $1.2 trillion, with a t, with the current prices we're seeing right now in around 75% drop from record highs, you're talking about closer to $310 billion in overall market cap, to give you an idea of the size and scope of the market cap destroyed and lost during this move lower one other place the dislocations in trading have caused are

dislocations in certain assets tied to bitcoin prices specifically when it comes to funds that own bitcoin looking specifically at the gray scale bitcoin trust, which an instrument a lot of traders have used in the past to take a view of bitcoin, right now the grayscale bitcoin trust is up 70% off the lows what's interesting is the value of this particular etf, or exchange traded product, i should say, it's not an exchange traded fund, it currently trades at around a 40-some-percent discount to the value of its underlying bitcoin assets. now, the reason why that's significant is because it's one of the deepest discounts that we've seen going all the way back to 2014 so, a lot of that downside price pressure putting pressure on some of the other products that have underlying bitcoin as part of their methodology and then one of the places, the of course, the equities. coinbase the most visual one, currently down markedly over the course of the last year or so.

80% of its value lost. coinbase continues to be a place where on weakness, asset managers like cathie wood at ark invest have been adding in weakness their firm now has about a 4.5 to 4.7% stake in coinbase, making it one of the largest institutional holders of this particular company, coinbase with ftx, david, we're waiting to see if there's more of a ripple effect fallout. coinbase, a stock a lot of folks are watching on that front back over to you. >> it's been interesting to see, perhaps the lack of fallout. thank you. next hour, ftx executives will make their debut in delaware bankruptcy court. eamon javers is there with a look at what we may be expecting. eamon? >> reporter: yeah, that's right, david. we're about 45 minutes from getting under way at bankruptcy court in wilmington, delaware. we just saw what can only be described as a battalion of lawyers coming into the courthouse here for this ftx

hearing, including andrew dietrich, the lead attorney for sullivan and cromwell, who arrived a few minutes ago. didn't have anything to say to us on the street we'll see what he says in the hearing room a whole lot of mysteries here to be resolved. hopefully we'll get some answers today. what we know so far is ftx ceo john ray said over the weekend that they've got some positive news here in this bankruptcy proceeding they found that many regulated or licensed subsidiaries of ftx do have solvent balance sheets there is some money in there somewhat for these creditors they hired perell wineberg to sell off some valuable assets. the process of unwinding ftx has already begun. what we know in terms of the creditors, ftx owes them at least $3 billion we'll see if there's a ceiling on that figure they could have more than 1 million total creditors. we'll try to get a fix on that number as well so far they identified 216 bank accounts across 36 banks that do

have positive balances again, there's a little bit of optimism here for the creditors in terms of there being some assets inside -- inside these entities but it is a bit of a russian nesting doll situation in terms of all the different entities. we'll try to get a fix on all of those today. what we expect here, guys, in the coming hours is a lot of just basic blocking and tackling of the bankruptcy, including the details of how they're going to pay their staff, how they're going to pay all their vendors, how they're going to keep the doors open and lights on while this company operates in bankruptcy we'll look through those filings as they come out throughout the day to see if we can get any more information about how much money is still left inside ftx back over to you >> yeah, eamon, you talk about russian nesting dolls. the complexity of this bankruptcy can't be overstated as you say, 1 million potential creditors spread across the globe and hundreds of different entities i would assume it's going to take a lot more than one hearing to get any real sense of all of these things.

>> yeah, i think we're just at the beginning of a process here, david. i mean, and you can see by just the sheer number of lawyers who showed up here, you know, this is going to be a very complicated process. a lot of billable hours starting now in this process. but it's not at all clear when we'll get some answers we're hoping that in some of these filings today we'll be able to see some new, hard numbers on just what exactly ftx has left in the coffers. not clear that's going to happen, though, david, today but i think we're at the beginning and maybe nowhere near the end of this process for ftx. >> eamon, appreciate that. eamon javers on the ftx story. coming up after the break, we'll go live to beijing as the city continues to combat rising covid cases. first, though, check out shares of baidu up under pressure, and news on jd.com and jack ma

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down 50% since the start of year it's a name in the group to watch is peloton cowen downgrading from outperform to market perform saying there's too much uncertainty around the stock peloton down more than 70% year to date. almost 80. from its ll-time high. beijing has shut down parks, museums and other public spaces. as china continues to combat rising covid cases our eunice yoon is on the ground in beijing and she has the latest for us. eunice >> reporter: thanks, david beijing says as of this thursday, residents will have to show negative 48-hour covid tests in order to get into public spaces. however, unofficially, businesses have been requiring 24-hour negative covid tests just the latest example of the very inconsistent and confused implementation of these chinese covid policies now, beijing has already been discouraging people from coming

into the capital by increasing their testing requirements tonight shanghai announced it's following suit, saying it's going to require daily covid testing for four days for inbound travelers. the daily infection count has soared in a chinese context to nearly 29,000 for the country. in global terms, tiny. but from a chinese perspective, it's what authorities here have described as grim. this is ramped up mass testing around beijing, in tianjing and in guangzhou they said they're imposing stricter lockdowns for more districts. chongqing out west said it's urging residents to abide by the tighter stay-at-home orders and also not to travel out of the city now estimated localities accounting for 20% of china's total gdp are under lockdown or

restriction. this isn't very far off on what they had been looking at in april during shanghai's brutal lockdown there is some encouraging news, though china's iphone city of guangzhou said their covid cases are dropping and local media have been reporting foxcomm, the apple supplier said it's getting closer and closer to reaching its goal of hiring 100,000 workers to try to shore up the capacity at their iphone facility there guys >> eunice, it's david. you mentioned the spring and the impact of that period on gdp what is your sense right now in terms of how this does compare with the akctions taken in the spring >> reporter: it really feels very similar in that people are worried. if you come around beijing, it's looking leak a near ghost town there's been a lot of

stockpiling again among residents. and just overall there's a lot of uncertainty with trying to get any business done. one difference, though, and i feel like i can't stress this enough, because the announcements haven't really been very clear from the top, there's been a lot of unofficial alerts and unofficial decisions, informal -- informally businesses are being told to shut down or residents are suddenly going to lockdown and people don't really know why and because of all these decisions being decentralized and going into local hands, it just makes it that much more opaque in terms of the way these covid policies are being implemented. >> eunice, i wonder, is it common knowledge among the chinese population how much our own lives in the west, in europe, in the united states have gotten back to normal

because of mass vaccination? >> reporter: there is an awareness, especially when you look at what people say on the internet in fact, people have become much more sarcastic about -- and i think bravely so, and unusually so, which just shows the degree of frustration that people have here about these covid policies. so, there is an awareness. again, it's censored so it's a very kind of more educated group of people that would be awareness of what's going on but at the same time, the -- for the most part, even though we are seeing pockets of protests and frustration, it hasn't really translated into any other larger movement. the government, of course, is making sure it doesn't mike >> yeah, fascinating, eunice the west had to go through a lot to get to this points of return to normalcy so there are two sides to that.

appreciate that, eunice yoon. let's stay with this story and bring in seema mody and how wall street is changing their outlook on china >> the reason covid outbreaks raising the question, did wall street get too bullish too soon? last week, bank of america, morgan stanley, citigroup and goldman sachs raising their outlook on china goldman saying net buying in chinese equities was the largest ever, driven by long buys, and to a lesser extent, short covers larry cautioning the road to reopening is set to involve a lot of back and forth. evercore isi still expecting the country to begin exiting zero covid policy around march of next year, but confesses the road to recovery will be bumpy the strategists there says the boost in consumption that we'll see over time will benefit u.s. companies with exposure to china. names like aptiv, tesla, domino's pizza estee lauder with 30%.

of course, semiconductor giants, qualcomm, nvidia, analog devices. and apple, china being its second largest market, accounting for 18% of sales, looks to diversify its supply chain, bringing lower cost iphone to india. the commentary from these companies will provide a critical read of what exactly is happening on the ground and if easing restrictions will help kick start productivity. next big economic report will be industrial profits this friday back to you. >> seema, thanks so much coming up after the break, we'll talk with former goldman asset management share jim o'neill and get his thoughts on the market action around the world as dow up 285. don't go anywhere. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq,

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as we're approaching the thanksgiving holiday all the major averages are in the green. joining us is jim o'neill, former goldman sachs asset management chair it's great to have you good morning happy thanksgiving in advance. >> happy thanksgiving to you >> i was thinking about all the fires around the world that we could talk about, and it seems like china might be the easiest first one to tackle on this surge in cases and restrictions returning and the impact on companies like vw, once again, cutting their forecast there for the year i mean, how do you make sense of the round-about policy they've been doing the last couple of quarters >> it's interesting for asia is about the easiest place to start. when i was listening to, eugene, was it - >> eunice. >> eunice, sorry i'm not sure it's very easy because on the one hand, obviously, there's clear

evidence in the very, very short -- the spread is building up again, and shutting down somewhat but i think it's against the background of a sort of different -- i smell or detect a different strategic approach to it it feels to me like the government wants to somehow move out of zero covid strategy quite how they can do it, given how they've locked themselves into this approach, don't know whether it was eunice or somebody else mentioned about quite rightly, how 29,000 for a country of 1.4 billion is nonexistent compared with what all we've gone through and the core of it, the longer they go on with this policy, the more impossible it becomes for china to deliver its 15-year

commitment to doubling gdp per capita and that would put the president in an even bigger hole so, i guess what i'm really trying to say is i think the whole thing is increasingly unstable as a policy and i would not at all be surprised by whichever bank you cited there that i think it might have been isi, not a bank, but they'll be out of it by march because that's what detect and that, obviously, may require a completely different approach to vaccines. as i jokingly said at an event about china a few weeks ago, i'm here in london, but in some ways i actually mean it why don't they do something really radical and decide to import a large number of western vaccines and just get on with it that would have such powerful sentiment with respect to all the other things that have been going on with china and global

trade as well. i'm not sure president xi is that bold. that's what they should do >> we'll find out maybe in the coming quarters. of course, that would have huge implications for economies around the world we just saw the german chancellor, of course, meet with xi a lot of discussion about german/china relations what's your sense right now about europe and whether or not you're sensing there the prospect of rapidly declining inflation the way we're talking about in the states? >> you know, i smell it's getting closer i had a good look at a number of leading commodity indices in preparation for this call, as well as what's been going on with crude and, you know, we're not far off getting to the position where year over year increases in commodity prices are not that strong anymore of course, across the board, we are significantly down from the peaks. and in the case of european gas,

crucially, something like 60 to 70% from the peak. so, that suggests to me, given the economic slowdown that much of europe is facing, that the inflationary pressures are probably waning. i think when i was last on with you guys, we talked about in the u.s., it's been quite clear to me for a while that the conditions for it turning were building so i suspect short of some whole new horrific energy shutoff, we might be on the verge of seeing more signs of it turning in more places obviously, i hope i'm -- my hunch is right >> yeah. i mean, jim, certainly the commodity element of inflation seems to be cooperating, but you wonder if the federal reserve is willing to give that any room to operate without seeing the labor market soften up and all the things they've been pointing to.

don't fight the fed has been the only rule you needed this year where does that leave us heading into next year >> well, it is true, don't fight the fed, but at the same time i remember a couple of famous macro guys that i learned to respect, including the one and only stan drukmiller we have to follow the evidence as far as what the fed is saying we will see. yes, the fed is making it pretty clear they're not going to start responding to some modest turns of inflation, but the more it goes on, if that indeed is the unveiling story, it will be up to the fed to say that i would have -- i'm sorry. one add. an additional complication that i find my mind going through the more the equity market rises and financial conditions ease, then, of course, that in itself will make some people at the

fed, given the power of financial conditions indices and influencing them, additionally cautious about wanting to stop being so tough so, you know, it's not like we have a plain sailing outlook for the market, it seems to me, although i would still lean to the stitly more constructive end because of what i feel about the inflation picture going forward. from what i can see and all the information we have at the moment >> you know, finally, jim, it reminds me, we've had a discussion at this desk the past couple of weeks. tighter financial conditions obviously, the pain felt in crypto, ftx, the slew of names in the equity market down 99, 95, 80, 85% from the high. and yet the wealth effect has not been what we, i guess, are trained to expect. how has that happened? is it all about excess savings and when does that end

>> that's a really interesting question i find myself laughing because, you know, i thought maybe that's unfair to a lot of people who have been on the wrong end of this crypto stuff. again, i think this is probably going back to late last year, but to me, the whole crypto bonanza, along with the spac thing were two of the most ludicrous things that were wonderful signs of an excess bull market in financial assets i've ever come across. so, i guess one thing it might signal is that the breadth of ownership of these things hasn't been so dramatic, but i think the more substantive point, as part of your very interesting question, and -- i would imagine some of your other guests with a lot of resources should be answering that, it probably does relate to how much the savings rate comes down. obviously, with a lot of the more mainstream tech stuff, a lot of people have been holding those and still wearing

significant wealth losses or mark to market losses as a result of that it's a pretty good question. >> yeah. certainly anybody who's traveled to europe or anywhere else in the states lately is still hunting for that wealth effect we talk about. jim, great chat. look forward to next time. thank you. >> good luck take care, guys. time now for a news update contessa brewer has that for us. >> hi, mike. the death toll from the earthquake in indonesia has risen to at least 268 people rescuers are still searching for more than 150 missing people experts say lax building standards and inadequate building standards contributed to the damage. an nbc news investigation of deaths during hurricane ian has found many were preventable. 148 hurricane-related deaths were identified. more than half were in areas where storm surge risks are well documented but not widely understood the september storm exposed

problems in how local government communicated hurricane risks and decided when to order evacuations. nbc news also reports dr. anthony fauci likely will hold his last white house briefing later this morning. fauci had previously said he would leave his government job in december. mike, he's expected to encourage people to go out and get their covid booster shots. >> all right we would expect nothing else, con contessa thank you very much. after the break, we'll talk tesla's recent turbulence, touching its lowest level since july of 2020 trying to stabilize here up a fraction this morning first, though, check out the biggest gainers for the s&p 500 this morning you have best buy on an earnings move leading the way agilent, celanese, freeport and analog

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just tesla rebounding ever so slightly today.

the stock is down roughly 25%. that's just for the month of november our phil lebeau has more on a name that has vastly underperformed the broader automotive sector, phil. >> easily. by a wide margin, david. down more than 50% year to date. take a look at what's happened to tesla over the last two years. you talk about a roller coaster ride because we're looking at shares now trading at a two-year low. and that had a nice move, you know, it was sort of towards the middle to end of 2020 when you really start to see shares accelerate they've given that all up now, despite the fact that when you look at the metrics behind the profits and losses, manufacturing and production from tesla, there's no indication that the company is slowing down take a look at this. revenue this year up 579% compared to 2021 ebitda up 127% deliveries up 45%. just a hair under their guidance, if you will, their rough guidance of increasing deliveries on an annual basis by

at least 50% and then in terms of its market share, at least here in the united states, they're still king of the hill roughly two out of every three electric vehicles sold in this country are tesla models that's not going to change any time soon. do we expect that market share to come down, let's say, over the next year to two years likely right now their average selling price just over $51,000. so, that brings up the question, why are shares under pressure? well, a lot of it has to do with elon musk. in part, you've had the tesla stock sales, which had to go to fund his acquisition oftwitter and on top of that, if you look at what he has been tweeting and what he has been saying about tesla, it really hasn't been much in the last month, month and a half as a result, there's no story to drive this stock and, in fact, over the last day or two, a lot of the stories is business slowing down in china take a look at tesla versus gm and toyota this is the indication of how far tesla has fallen relative to

other automakers, guys it is down 51% and then you've got gm and toyota down 21% and 30%. it is a case where right now, if you were a tesla investor, you're wondering, where's th story? because this is what drives this stock right now. >> that's a great point, phil. obviously, we should point out, it's roughly ten-fold, the market cap ten-fold that of gm or ford. >> sure. >> but i wonder, is there a linkage between twitter and the performance of which, of course, we don't know a lot about anymore, at least in the stock market, it's a private company, but it is solely owned by mr. musk you pointed out, he's not tweeting as much about tesla he's clearly got his focus on twitter, it would seem is there a linkage, anything yo would point to the weakness at tesla because of twitter >> mainly that he's more focused on twitter and not -- whether

it's tweeting or doing anything so people remember that tesla is out there. that has been so much of what has driven tesla over the last couple of years, david and that's not happening right now. if you look at what he's tweeting about, he's tweeting about the changes at twitter that are happening and how it's about the changes at twitter that are happening and how it's a public town square, whatever it is. there's very little, almost no tweets about tesla. >> but, phil, let's step back and consider what you're actually saying here this is a stock over two years is about flat tesla, over three years up over 700% okay >> right. >> it's had this monster move and somehow, to some degree, the stock performance was highly dependent on how much the ceo tweeted about it, right? you mentioned all the fundamentals but there's china, stock demand, china tesla demand as well is filtered in >> mike, i'm not saying elon musk is the only reason the stock moves up or down

look what's happened over the last three years, the last five years when you had the model y, mold 3, accelerating sales, production let's talk about what they have on deck right now. tell me what's next for tesla, aside from december 1st and the beginning of deliveries for the tesla semi truck, which is not going to move the needle, what else is out there? maybe they pick a new manufacturing facility in the next year. there's nothing fundamentally with that business that is driving momentum rooight now. >> remarkable, if you plot tesla and gm against each other, the last six months. thank you, phil lebeau, talking tesla. coming up in the next hour, we have zoom sliding post-results, dell moving ghhier and how microsoft overtook amazon as the stock with the most long hedge fund positions it's coming up at the top of the hour don't go anywhere. worth of tras against thousands of compliance

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. welcome back to "squawk on the street." i'm dominic chu. stocks at session highs up 30 points for the s&p most sectors trading positive. energy is the top performer so far within that group. look at names like eqt, target resources and marathon all among

the leaders and today's moves after the sector finished well off the morning lows yesterday thanks in part to a denial from the saudi arabian government it was discussing a potential crude output increase with its opec plus partners. that news still giving a boost to oil prices offsetting some concerns over rising covid cases in china more on "squawk on the street. stay with us we'll be right back after this lily! welcome to our third bark-ery. oh, i can tell business is going through the “woof”.

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welcome back rising rates, of course, can cause home prices to drop and then investors to drop out of the market at least that seemed to be the case in the third quarter. our diana olick has more on that story for us diana? >> david, home sales overall we know are dropping fast due to the higher interest rates. while investors don't always use mortgages they don't want to get into a market where prices are weakening. investor home purchases dropped just over 30% in the third quarter compared to the same time a year ago according to red fin. this is the biggest drop in investor sales since the great recession minus the brief pause at the start of the pandemic the drop in investors outpaced the drop in the overall market where sales were down about 27%.

now the investor share of sales came down but just slightly to 17.5% from 18% a year ago still up compared with prepandemic levels, though those investors who are still buying are paying more the typical price paid was up 6.4% year over year. markets seeing the biggest in investor portland, phoenix, portland, atlanta and miami to name a few of those. most of those were some of the hottest pandemic driven markets and are seeing the biggest overall pullback in both sales and prices not great news for the eye buyers out there like open door which have been buying far fewer homes to flip. redfin announced it was shuttering its eye buying program, zillow did that last year this does not appear to be hitting the single family reits which invests in home but they have the rental model and rental demand is still strong even though rents are coming down a bit. this pullback, though, with

investors just another effect of the rising rates on the economy. david? >> and not an unimportant one. diana olick. mike, in the 20 seconds we have left, thoughts on the rest of the sday? >> s&p kind of lev stating the market coiled tightly here, under 4,000. might make a run at it here. also inverted yield curve, very dramatic. >> yeah. >> rest of the week promises to be quiet "techcheck" starts now >> good tuesday morning. welcome to "techcheck. i'm carl quintanilla with jon fortt and deirdre bosa a lot more on tech's stories from dell to zoom to disney and more first, ftx executives taking to a delaware courtroom for their first ever appearance before a bankruptcy judge eamon javers is live on the scene there. >> good morning. >> good morning to you, karl they a