twitter poll that he step down he said he'll resign as soon as he finds someone foolish enough to take the job. it's december 21st, 2022 winter solstice. a bit longer that's good. "squawk box" begins right now. ♪ good morning, everybody. welcome to "squawk box" here on cnbc we're live from the nasdaq market site in time squafrmt i'm becky quick along with joe kernen andrew ross sorkin is on vacation this week, so we'll check in with him next week. as joe mentioned, it's the winter solstice. that means the shortest day of the year. >> still 24 hours.

>> shortest daylight by the way, happy birthday to my brother rob schenck. >> happy birthday. born on that day. >> born on that day. >> my daughters is coming. the 26th. >> she's got to double up on the presents we had a six-month birthday in june to try to make things -- >> anyway, the futures are looking up this morning. the dow's indicated up by 221 points a lot of that coming from nike, which we will talk about in a moment but peter tells me it's heading up the nasdaq up by 46. yesterday we finally broke a four-day losing streak all three of the majors closed higher right now you see the ten-year at 3.684%. >> this spoke last night, kind

of interesting, surprising ukraine president volodymyr zelenskyy is going to come here, confirming plans to visit washington today in his first known trip outside his home country since the war began, zelenskyy tweeted at 1:00 a.m. eastern, on my way to the u.s. to strengthen resilience and defense capabilities of ukraine. in particular, potus and i will discuss cooperation between ukraine and the usa. i will also have a speech at the congress in a joint session and a number of bilateral meetings the visit comes as lawmakers are expected to vote on a funding bill that including nearly $45 billion in more ukraine aid. a senior biden administration official told reporters that the president will announce a package of nearly $2 billion in security assistance for ukraine including a patriot missile system russia's warned the u.s. against sending the missile defense system to ukraine, and putin

said yesterday, it's tough, tough on our troops, a difficult situation, which just probably means it's going to be a long time still >> it's already been a long time. >> 300 days, yeah. i can't imagine what the security must be for a trip like that on the way in or in dc. >> that's why we don't know a lot of the details >> he's grateful for what he's been given so far. but what happens next year because there have been some republicans who have not wanted to spend as much. >> they have to come here, get out of the country then he's got to get back in that, i would figure, would be tricky. >> yeah. >> and you definitely wouldn't want to tell a lot of people how

it's happening >> yeah. >> i -- just me, i think i would say. he can't he's "time"'s man. >> you and i may have left a lot earlier. >> we would have left a lot earlier. >> an incredible show of res resolute. >> knowing that his life, which is so dear to him, there's a cause he's laying it all on the line which guys and gals do all the time, which i'm also in awe of. >> i admire greatly. in the meantime, ftx founder sam bankman-fried is set to come back to the united states to face charges the charges include fraud, money laundering, and campaign finance

offenses officials in the bahamas say bankman-fried will fly to the united states today after the conclusion of a hearing that is scheduled for 11:00 a.m. eastern time. >> it's -- one story to that it's kind a contrast, right? >> zelenskyy is coming and sam bankman-fried is coming. >> under very different reasons. >> very different people a flip side. that is a yin and yang, is it not? >> it shows the united states takes all-comers. >> wow. tesla's ceo elon musk took to twitter to try to explain why tesla shares are tanking in a response to ross gerber who's been a longtime tesla goal and elon musk backer people will increasingly move their money out of stocks and into cash thus causing stocks to drop then over an hour ago musk responded to criticism that his behavior affects tesla stock price.

he said maybe so in which case, buying opportunity. i keep saying the fed rate is insane because we're already in inflation. the tee bill is that of the s&p 500. a very smart investor is shorting the s&p i would be surprised to see ron short the s&p. >> no. he said it was a once-in-a-generation opportunity. >> meantime musk made his first public comment about stepping down as head of twitter after users overwhelmingly voted he should do so he said he would resign as ceo of twitter as soon as he found someone, in his words, foolish enough to take the job once a successor is found he'll continue to run the company and server team. a lot to go through here i saw the chain he was talking about yesterday where he responded, look, this is interest rates going higher. >> there's truth in it.

>> someone wrote in, yes, but it's more related to the 10-year bond if you look at the nasdaq over the last month or so during the time, it's only down 1% versus tesla shares that are down exceptionally more. >> we said how attractive the 2-year is. that's the point >> it's the high growth stocks that pay the most. >> if you're sort of in a moot period, 4 and 5 is what you're hoping for, four on the 2-year, you could make that case it seemed a little simplistic. they're talking about it all the time. >> i wonder if that's why he's made his own sales he's been sale lot of stock. >> yes i was wondering when it depose like this, 137, but -- this

morning -- or close yesterday. i wonder if he's selling for whatever reason. >> people have been asking the same question. and, look, there were skeptics on twitter when he said he'd abide by the results of the poll that sent tesla shares up. >> he's still got bills to pay, twitter and the debt and everything, so it would be crazy to think he's still selling. fedex share bid sharply higher this morning. the company reported earnings of 318. shares are up 4% they beat estimates. it was a little shy of what was expect the full earnings forecast came

in shy of expectations the company saw a particular weakness in its suppress unit with operating income down 64% from last year most of the cost-cutting measures will be focus on that express unit here's the ceo on the conference call >> we're moving faster and with more determination than ever to accelerate our cost actions. >> you might remember back in september fedex announced an early round of cost-cutting measures including parking planes, closing offices as global demands some ofened and they decreased package delivery rates. that's another thing we didn't talk about, elon's sort of -- his diagnosis of where we are in the inflation. he didn't even say disinflation.

some people have said underneath all of this, there's quite a bit. have you seen that the jobs numbers were sort of inflated? >> i didn't dig it into deep enough. >> if that's true, labor, labor, labor, that's one of the things that's been different than commodity prices and everything else. >> that would be an important statistic for the fed to have an accurate read on it to really decide where things stand. the labor market is where they're watching things closely. >> right if that's really the case. coming up, we're going to dig into the other big movie ore f the morning. nike up sharply. well, 12% 14rk%. more after the break. later, a winter storm threatening to disrupt holiday travel for most of the country no snow. not a white christmas here we'll tell you what to expect at some of the airports

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. nike shares up revenue came in at 17% higher than last year also above estimates the company then raised its full-year outlook. they painting a rosy picture,

demand from nike's wholesale partners where revenue was up 19%. >> as inventory supply becomes available on a greater basis than it was, we continue to see our partners pulling on the availability inventory so we're competing in that channel. there's an important channel for us to win in and really for the first time in six quarters or so, we can people supply the channel against the level of demand we believe is there. >> the direct to consumer business was up 16%. digital sales were up 25%. nike attributed stronger sales to markdowns and discounts used to clear out excess inventory. joining us now, stephanie link, chief executive of hightower and cnbc contributor i was looking over the notes a lot of this you were expecting. is it even better than that,

steph? >> it was much better than expect as you mentioned, total revenues up 17% on a constant currency basis, up 27%. the two thing i was looking for, gross margins and inventories, they both came in better than expected gross margins actually fell 300 basis points, but their guidance was for 350 to 400 basis points some of they're making progress. ebit markets grew. that's encouraging, and it speaks to what you were talking about on the dtc side because as they transition to more dtc business, that carries more margins. the headlines were a little disappointing to me because i was expected better. it was up 33% versusus 43% from last year. they're making progress. they're making progress there. more to go, but i think the

expectations were really low, so i'm happy to see the reaction in the shares >> a long way to go back to the hi highs. nice gain today. >> yeah. >> do you buy more how long have you been in it for a while, i imagine. >> no, actually, joe, i haven't been in it that long i'm not down much in the position i think i bought about two or three months ago but this is a high-quality company blue chip, right and we haven't even seen china reopen and they did a 6% growth constant currency number revenue growth in china. we haven't seen them reopen in china. that's a big driver. dtc as i mentioned up 16%. on a constancy basis, up 25% here's the thing we talked last week when we were talking about ibm and currency and how i think 2023 currency is going to br a tailwind for

multi-national companies we were talking about ibm in that instance. the same goes for nike they guided down 700 basis points in 2023 for a currency hit, right i think as the dollar continues to weaken, that number, that guidance might actually be conservative, and you'll have a nice tailwind. in addition, you'll have a currency tail wind as well, and i think that bodes well for earnings estimates for the full year. >> you say up 25% on constant currencies is that year over year >> yes, yes, absolutely. so we've been waiting for such a long time to see not only the growth, becky, but the margin implication, right, because it is a lot higher margins. i think over time you can see ebit margins get to 15% for the

overall company based on the momentum they're seeing with dtc. >> what does that mean for -- is it a company like the foot locker who's in trouble if they're selling more of their stuff direct to the consumer through their when sites. >> who does that hurt? >> sure. i think it certainly could hurt. i will tell you it's interesting. on the conference call, they were very complimentary of the new ceo at foot locker and talking about partnering with t them, which is really interesting because they've kind of been at odds with each other for many years they've been talking about sharing company information together, and that dr never heard that before. it sounds like that partnership is doing better than historically it has done, but to

your point, dtc is going to hurt the big box guys >> i heard from tesla -- there's a website called electric, and it's reporting -- it's not spelled like electric, implementing a hiring freeze and a new round of layoffs which will begin sometime in the first quarter of 2023. this is already after june elon asked to pause all hiring and cut 10% of staff now elon musk says he has a very bad feeling about the economy in gen general. some of his comments we heard, they're less attractive with fixed income rates where they are. also he talked about he sees inflation much lower than what the fed is talking about in fact, he used the d-word for

deflation. but what do you make of tesla itself >> it's kind of a cold stock the valuation is really expensive. even though the stock has pulled back so substantially. really a cold stock. you either bleeb or you don't. i have worried about the competition from the legacy oems and all the products coming out. i think this is a tough one. then you have the twitter noise on top of that so to me, you know, this is not the kind of environment where you want to own a high pe stock in addition to some of the distractions that the ceo is seeing. >> yeah. you've got to love musk's positivity buying is believing. i think he believes that when he spent $40 billion on a thing that's worth 20 or 10, whatever.

i think he thinks he's young it would be good to get out of bed and think wow. sometimes i'm -- i'm not always full i'm half empty, especially in the early morning hours. >> here's the thing. i know he loves wading into this stuff. do you think he's going to regret selling down his tesla stake? he owns a huge price. >> he's getting good prices for it if he can get it with these multiples. >> well, i would much rather see him buying the stock than selling the stock for sure yeah, i mean that's kind of disappointing in a pretty big way. >> he got it with that deal that we rolled our eyes on five years a ago. he never thought he'd be the richest guy in the world stevgs let mess get to macro things are finally getting synchronized globally with some

of the tightening. you look at some of the signs that maybe it's starting to bite that's typical go ahead, steph. >> it's going to be a challenging 2023, joe, it really is, because we have all these rate hikes, lower inflation. there's a lot of mixed signals we're encouraged by nike and fedex. >> would you take that tree down there are people who don't turn the lights on. they don't take them down. >> they don't turn them on that thing looks like it's a lot of work to put up. it's nice. couldn't you just leave that there or no? you need the room? >> i might just do that. i might just do that, just for you, joe. >> okay. do you know people who do that >> i've got people that do this, yes. >> you do?

is he around, the husband? okay, thank you. >> thanks, joe. when we come back, just how worried are american workers about layoffs in the new year? we've got the results from the cnbc workforce study that is next. and as we head to a break, let's take a look at the biggest premarket winners and losers in the s&p 500. nike leading the way check that out s&p 500. also a dow component up 12.5% fedex is no shrinking violet either it's at $4.25. international paper up by almost 3% and carnival corporation yeah, stick around "squawk box" will be right back.

even with big mass cuts, people are not worried about layoffs, but there are worries about the biggest threat to their job security sharon epperson is here. she's got more of those results. good morning >> good morning, becky with unemployment and recent wage growth, only two out of five workers, 39% are concerned they or someone in their household will be laid off or lose their job in the next few months the overwhelm majority, 74%, says their company is prepared to handal recession if one occurs that's according to an online poll of 10,000 workers conducted. the survey also found workplace satisfaction is a key factor in

whether employees believe their company can handle a recession 86% of those who say their overall morale at their company is excellent say their company is prepared to handal recession. it's more than double of those who say morale at their company is poor. still inflation concerns are growing. more than two-thirds of workers, 67%, say the biggest threat to their job is an economic downturn, and that's seven percentage points higher than in june 2019. that's the last time cnbc polled workers on that particular question, becky. >> 39% still sounds pretty high to me. 39% are worried about a layoff in their household >> and the majority are in tech. there are a lot in advertising, personal services. those are the ones above average. >> how confident are workers that they'll find a new job in this environment >> it's pretty surprising. they're very confident 80% say they'll find a new job in the next six months more than a third say they could

find one in the next month but there's a big difference between what fully remote workers and those in person believe. those who are fully remote, only a quarter of them think they'll be able to find a job with similar pay in the next six months if they lose their job. >> does that mean the great resignation is over? >> we have seen quitting numbers. more than a third actually believe they may quit their job. it's about 36% but it was 39% in may. so we may have seen the peak there and now it's leveling off a bit. in the middle of may 2020, it was only 20%. >> the fed watches very quickly job losses and layoffs and turnovers. >> we're going to have more on the trend, what we see this year and the year ahead tomorrow. >> you'll be back here. >> i'll be back here. >> that cool music at the top? nobody gets their own music.

we don't they play it over and over come every day this makes me move, but i'm not going to. >> you're so kevin klein. >> i am. my finger starts and my arm. central bank's finally getting centralized. we'll tell you about the fallout by the boj >> that's why it spread. oh, my gosh. >> as we head to break, here's a look at s&p 500's winners and losers

good morning welcome back to "squawk box" at times square fedex strong s&p on a relative basis not nearly as strong but up. and the nasdaq indicated up 39, 40 points or so.

>> the bank of japan rattling global markets with its policy tweaked this week, adding to pressure from other hawkish banks which both banks raised rates last year. the ten-year jgb rose sharply on the news yesterday it's only at 0.496%. but take a look at where it was the day before 0.495% we want to bring in the lead writer for markets live at "the wall street journal" and also a cnbc contributor we have another cnbc contributor as well. let's talk a little bit about this what does this mean? we've been waiting for japan to do this forever and ever is this really the beginning of a very significant move? >> thanks, becky

i think this shows you 2022 has been a year of hawkish surprises from central banks from around the globe. i was loas looking back at lastr the fed would have to raise the percentage rate by 0.75% by 2022 take a look at where we are. we're above the 4% mark. and they're projecting they're going to raise interest rates even higher. how much do these hawkish surprises from central banks around the world continue? >> peter, i know you're always concerned about thinget. i know you're always hawkish what does the downside mean? >> it reinforces higher interest rates are going to be here i say higher i think higher for longer is the new adjustment that the economy and markets have to deal with and that we're not going to go

through a period of rates are going up and the second they slow down, rates are going to come back down again and we're be back to a another zero rate policy-type regime we're going to have to adjust to this new regime. we'll look at next year and the year after, that's where a lot of adjustments need to take place. >> peter, there were comments out from elon musk talking about why tesla shares were down his point was as interest rates rise, that's obviously a much more attractive place for people to put their money there or in a bank account with cash so the relative attractiveness for stocks is less that clearly makes sense his point is he's seeing deflation at this point. do you think the fed is moving too aggressively or is this something they have to do. if you look at inflation in japan, it's much more so

it's pretty devastating for an older population that has a tendency to safe. >> right so tomorrow we're going to get cpi out of japan the rate is supposed to be 3.8%. so their policy of keeping rates below zero on the short end and at a 25-point basis point bend was not defensible, and i think that's why they moved ahead of the cpi number with respect to what elon said, on the one hand, yes on the investment side, rate prices are hire but on the other side, they're falling. what is the real rate they're going to be happy with say cpi continues to moderate and we settle done at 3%, 4%, is the fed going to keep rate ace above that and we'll actually have a sustained period of

positive interest rates or are they just going to buckle when they see the unemployment rate go lower and -- i'm sorry, go high eric and we're going to start to see rates fall back down again i think the fed wants to repeat the '70s, and the rises and drops in the cpi and keeping rates higher for longer. >> gunjan, if you want to look for a positive, i guess you could say finally other central banks around the globe are catching up to what the fed has been doing aggressively for a very long time, and maybe that means you're looking at less strength for the dollar. that's good news for the nationals who have been getting killed with the strong dollar. >> exactly that could be good news for the multi-nationals. i think investors in the u.s. don't believe the fed is going to go as high as they say they will, right? they're saying they're going to raise it to the 5% range and keep them there. invests are saying, look, we think it's going to come down

faster than the fed says it will and you'll have to cut rates by the end of 2023. i think you look at what the fed and banks are saying around the world. >> the one thing that investors are also thinking t consensus thinking is we're going to see an earnings recession. we've got great results from nike and fedex that the market is cheering on today what happens if that earnings recession doesn't show up in the first quarter like everybody thinks it will >> that's right. one thing i've been hearing from investors right now is maybe we're a little bit less worried about inflation surprises, ugly inflation reports, and now we're more worried about what do earnings look like next year nike's up 12% premarket. fedex is also up these are kind of bellwether stocks so it's unclear. i think one theme of this year has been investors worried about that slow journgs worried about a recession that just hasn't

come yet does that pan out in 2023. >> peter, is your ship possibly finally coming in, do you think? by that, i mean financial crisis followed by the pandemic, 15 years where basically we had interest rates that probably didn't reflect true price discovery, artificially held low. did we create the mother of all bubbles? people were paying like 100 grand for the drawing of an ape in some ridiculous outfit at one point. is this finally what you've talked about are there years of us paying back for the excesses of the fast 15 years, or can we get through this >> well, we're going to get through this, but to your point, the sovereign bond bubble, aka negative interest rates, was the epitome of a bond bubble or a

bubble generally and the largest financial bubble probably we've ever seen. in december 2020, we had 18 trillion dollars of negative yielding bonds interestingly enough yesterday with the rise of japanese yields we're down to $156 billion so we're almost out of this negative interest rate environmental which i called years ago the dumbest idea in the hit of economics. >> it doesn't sound barkd peter. if we're almost out of it and have take care of 15 years of excesses i mean, it hasn't been painful like it was in the '70s and '80s that's what i mean is it on the cusp of it? >> i think it's going to be drawn out over the next several years. all the businesses, households, governments that have low interest rate debt that's going to mature in the next couple of years, that's where the pain

will be felt if you built a construction building and pencilled in interest rates and next year you have to transition that to a conventional loan at 8%, you know, chances are you're going to be handing the keys back. while that's not a 2008 debt, all this cheap debt reprices at higher rates over the next couple of years. while i think it's irreally vent whether the feds can raise 4% or higher, more relative is if they can stay high. >> if it's that bad, i don't want you to miss it. you've been at it for so long. bleakley this is it you know what i'm saying, gunjan you've been negative for so long, the ship is finally coming

in >> price discovery, real estate over time is a positive thing. >> peter, thank you. gunjan, good to see you. >> thank you have a good holiday. >> you too. coming up, two big deals in the sports world, one by the phoenix suns and one major nfl rights deal. i'm not sure what it means what does an nfl sunday ticket mean >> games on sunday. >> wow all of them? details after the break. then later we're going to talk to louisiana senator john kennedy. this guy cracks me up with his sardonic sense of humor. we'll talk about the $1.7 billion spending bill to keep the government funded. "squawk box" will be right back.

united wholesale mortgage mat ishbia has reached a deal to buy the phoenix suns and the phoenix mercury wnba team from embattled owner, $4 billion, that would be the largest purchase in nba history. the deal will be subject to a vet progress says by the nba the league's board of governors will also have to approve the sale i ishbia played college basketball at michigan state and was a walk-on. i can't believe that still happens. he bought the suns in 2004

the nba suspended him in september for one year and fined him $10 million after an investigation into alleged racism and massageny during his tenure a league investigation found he had engaged in, in their words, workplace misconduct and organizational definish ency shortly after that he said he would put the team up for sale that's a pretty good team to be able to buy. they're not bad. they're pretty good. good players you never know with the nba who's going to -- i -- >> with a franchise you can get in the nba is apotential -- >> i remember when bonner bought it >> sports is the one thing live sports, and now that you have gambling involved with all of it too. >> the celtics, those guys have made money >> by the way, it's not just the nba. we're going to talk right now about multi media reports saying the nfl is finalizing a deal of

its subscription of a package known as sunday tickets with google's youtube tv. it's long been held by directv which had been paying $1.5 billion annually it carries all the sunday afternoon games that may not be available to local affiliates. the report says the deal will not approve rights to linear cable channels and others which the league had been shopping along the sunday ticket rights the terms of the deal are not clear yet, but reports say nfl had been seeking a buyer willing to pay $2 billion to $3 billion a year that's where all these new entrants -- the money coming from big screaming services and tech companies, they'r competitors that didn't exist before this's what's drive drooing up prices >> sports and news, we're in the sweet spot, we really are. coming up, winter weather threatening to disrupt your holiday travel we have the playbook for your

errant airports next if you're planning to travel. >> trains are somewhere you can get fast in a short period of time i don't want to go to california >> announcer: executive edge is sponsored by at&t business at&t 5g is fast, reliable, and secure “woof”. but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find the right wireless plan for you. so, you can stay connected to all your drivers and stores on america's most reliable 5g network. that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws at&t 5g is fast, reliable and secure for your business.

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and an expected winter storm in the midwest threatening to cause trouble ahead of the christmas weekend. said to be the coldest in decades in much of the country that's just weather. we know that it's just weather. in the summer, if it's hot, it means something. joining us now on how best to navigate travel is brian kelly,

the points guys ceo. at least it's going to turn into rain back here, i think, brian, on the east coast, but then it's going to get cold. no matter what, it's going to be messy and it's at the wrong time because people are traveling >> absolutely. yeah friday is supposed to be the busiest travel day for this holiday season and no matter what, there's going to be mass delays and likely cancellations. as we all know, our aviation system is hub and spoke. any plane stuck in chicago, the next flight will be delayed, canceled, et cetera. things are going to unfortunately snowball. >> the best way to do it, but it's not perfect, is it? for awhile we didn't know if it was going to be hub and spoke. we were flying big jets between cities but this is the way to do it but this is the downside what would you suggest to fix something like that? >> yeah, everyone, try to -- if you're supposed to travel friday, look at the forecast,

try to leave earlier or later, even the airlines are offering waivers so you can change free of charge. if you really want to get home for christmas, though, i recommend use those frequent flyer miles and book backup reservations you can't be on the same airline same day but it's kind of like hedging your bets. if your flight is canceled, you have a backup option before that one sells out. so you got to stay ahead of the game everyone right now should check their flight reservations for this weekend or even next week the airlines will change due to schedule make sure your reservations are intact get the airlines app and i also use flight aware. it will alert you if the flight is delayed or canceled usually before the airline itself will alert its own customers. >> i'm not going anywhere soon, but i can remember being told, you're not going to make it home for whatever, there's no way,

and it's almost impossible to grasp when they tell you that. and if it's absolutely canceled, 200 people have to try and make provisions and not everybody is going to get seated somewhere. it runs out. i feel bad already for what we're looking ahead of us -- maybe rent a car, trains, planes -- remember how hard it was for steve martin >> whenever they cancel your flight, go online. you can dm them your reservation. instead of waiting in the long, long, the agent is going to -- rebook yourself on the phone you got to stay ahead of the game when the cancellations happen, it is chaos in the airports. going to the airport lounge, they're the most experienced in the airline. they have alcohol too that might come in handy. >> pillows. >> it's just -- and the nerves,

the anxiety goes up. you're on hold the whole thing is horrible. you know what, you should just stay home certain times. i really -- >> or drive. or take a train. trains are awesome brian, thank you good advice. >> thank you when we come back, shares of nike and fedex are lifting stock futures this morning we're going to dig into those earnings reports and tell you what you can take away, what this means for the broader market i'll tell you what it means for the indexes today. up, up, up nike shares up 12.5% fedex up sharply too "squawk box" will be right back. [finger-tapping]

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good morning, everybody. futures pointing to a higher open after nike and fedex reported better than expected earnings we break down those results and tell you what else is moving in the premarket. the nation facing a medicine supply shortage as the number of respiratory illnesses rise just ahead of the holiday rush. ukrainian president volodymyr zelenskyy making a trip to washington in what is seen as a high-stakes attempt to rally support. details and a live report from washington coming up this is his first trip in over 300 days since his nation has been under siege the second hour of "squawk box" begins right now ♪

good morning and welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square i'm joe kernen along with becky quick. andrew is off today. we're getting the shortest day of the year out of the way nike is up 13 points 90 points of it is probably nike with the dow good numbers out from -- the stock is back to 115 or something. it's going to be 116 today down from 171. but a nice snap back today treasuries, definitely, you know, we took the -- yeah, the boe and the ecb in stride, but the doj, a letter salad, oil is

back to 3.7 on the ten year. you can see the two year at 4.23 we have a pretty big inversion going again. there's oil this morning up $1.46 78 for oil and then bitcoin has managed to stay somewhere between 16,000 and 18,000 for a couple of weeks. 16,876 today. breaking news this morning, ukraine's president volodymyr zelenskyy is visiting washington, d.c., today in what will be his first known trip outside his home country since the war began in february. president biden will host president zelenskyy at the white house will they will have meetings this afternoon along with a press conference. zelenskyy is expected to address a joint session of congress. a senior administration official told reporters that president biden will announce a package of nearly $2 billion in security assistance for ukraine which

will include a patriot missile system that russia has warned against sending to ukraine. another person head today the u.s., sam bankman-fried has agreed to extradition back to the united states to face charges related to the collapse of his crypto exchange the charges including money-laundering and campaign finance offenses the hearing is expected to begin at 11:00 a.m. eastern. right now, let's get down to dom chu. he's got a look at this morning's premarket movers there's a lot to talk about this morning. >> there are joe mentioned the nike stuff the earnings stories are going to have a big influence on the markets this morning we'll start with those shares of nike as joe points out this is the athletic apparel giant. premarket games, 130,000 shares of volume.

profits and revenues at nike topped consensus estimates driven in part by a rise in direct to consumer sales, also sales through its digital and e-commerce channels. profit margins though were squeezed by higher costs and inventory levels were higher than a year ago. but they were lower than last quarter. the news is good and that's enough to power nike shares up 12.5%. and then you have shares of fedex which are up 2,000 shares of trading volume they report mixed results, profits beat estimates, revenues fell short of expectations fedex was hurtby weaker result in its express shipping university but fedex ground and freight saw year over year ground. again, on balance, 4% gains for fed fed. and then we're going to end with shares of tesla which are over a percent this morning

they're in the process of implements another round of job cuts and will freeze hiring in 2023 tesla shares did hit a multi-year low in trading yesterday and they're down 66% since their high, all time, in november of last year. becky, we're talking about 1.2 trillionish dollar company that slid down. tesla shares in focus. >> dom, thank you. we've been watching this closely today. we'll check back with you in just a bit. >> markets eking out slight gains as investors cling to the hope for a year-end santa rally. >> joining us a cameron dawson we talked and last time i was talking to you, cameron, i was

saying, we were above 4,000 in the s&p and you stuck to your guns i don't feel that great about things the next thing you know, we're testing 3800 again we're up a little bit today, but it's been a tough couple of weeks. that's what a trading range looks like >> exactly that's what a down trend looks like which is why at the beginning of october we were nervous to be too negative because we were oversold as we got close to the 200-day moving average, when we looked at where we were standing on eps estimates, valuations, it was really hard to justify the market moving that much higher on anything other than short-term technicals. so we think that a retest of the october low is very much in play it doesn't have to come before the end of the year. we could see trading be a little bit more firm, just into the last seven days of trading then as we look into the first quarter, we think that because of that downward pressure and valuations from higher interest

rates and earnings because of lower growth, it really does support a market moving lower from here. >> you could have lower absolute sales in a weaker economy, and if inflation is still persisting, you would have a profit margin problem too. so you got higher interest rates which bring lower valuations, and level i, it gets slower sales growth bottom line too from profit margins. i don't even want to keep talking about this, cameron. you're not saying one positive thing. >> yeah, i think the positive thing is what we're seeing this morning from nike and fedex which is controlling what they can. you never want to bet against the great american might and that's clearly what's happening with both of these companies there's pressures in their business, whether it's nike and having to destock inventories or fedex seeing a big drop in volumes for its more urgent business like express, but

they're taking costs out of the business and that can help insulate margins some. then when we look into 2023, we see falling inflation as a potential head wind to margins simply because it would lower revenue growth, top-line revenue growth which puts downward pressure on what we call incremental margins. what that could set up is for a peak in margins that we saw back in 2021 continue declines and that's really the wild card as we think of where earnings could settle into next year. >> i guess if tesla is down 65, meta is down 60, so many of the most beloved stocks as interest rates have gone up, we said this might happen, and it's now happened long term, couldn't you put together a shopping list for christmas of, like, 30 incredibly great companies that are 60% less, valued at 60%

less couldn't you do that should you are they a buy >> i think it's a very good exercise because oftentimes what we see as we roll into the new year is that the last shall be first. those that got beat up the most in the past year can find a little bit better footing. i don't want to make the argument that all growth, all tech stocks are at valuations that we would consider cheap because if i look at the russell 1,000 growth index overall, it's still trading 30% higher on valuations so about 25 times earnings compared to the last time when real interest rates were at this level. real interest rates are about positive 1.3%. so that would tell me that we haven't seen the full extent of multiple derating for the broad index, but there is likely some opportunity within names that have seen their multiples derated and importantly have seen their earnings estimates come down a lot which means that you just have a low bar to be

able to jump over into 2023. >> very good, cameron. appreciate it. hang in there. you can be -- every time i have people on, people have been bullish, they've been right for awhile, bearish, they've bee right for awhile, but you've been right a little bit longer is this confirmed? >> title town must be in total mourning pittsburgh steelers hall of fame frank o'harris dead at the age of 72 just days before the 50th anniversary of the immaculate reception. he was the -- i mean, part of the steelers dynasty too just happened. that's sad condolences to his family. that's like a -- almost -- a real icon, if you followed the

steelers over the years. >> yeah. >> all right, when we come back, fedex delivering on earnings, but falling short on revenue. the company warned of persistent weak demand but said it's aggressive cost-cutting measures were softening that blow wall street liked what it heard there. we'll talk more after the break. cvs and walgreens limiting purchases of children's pain medicines. it comes after a move the surge led to a demand in shortage. dr. scott gottlieb will join us later this hour. let's get a check on the markets. see right now, the dow futures up by 235 points nasdaq up by 30. the s&p up by 17 this comes after gains for all reofheaj aras yesterday. we'll be right back. could hire e full of peyton mannings. what's up, peyton? good morning, peyton. hold for peyton. they'd huddle.... welcome to the peytonverse. such a visionary. game plan...

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fedex reporting a drop in sales and profit from last year citing persistent weak consumer demand you would think that would be bad news, but the package delivery giant beat earnings expectations, at least on the bottom line. fell a little short on revenue here's the ceo last night on the call >> declining demand trends we saw at the end of q-1 softened further in the second quarter and we're moving faster and with

more determination than ever to accelerate our cost actions. >> joining us right now with more on the results is jonathan chappelle who is transportation manager. you take a look at these numbers. a little concerning to hear about the weak demand. but it shows that fedex is operating well and willing to do some good management here. >> you're right about the former part the revenue fell short earnings beat for the fiscal second quarter 200 million more but when you look at the guidance for the rest of the year, there's an extra billion dollars costs that are incorporated in that if you strip that out, it does show the demand side is much weaker i think fedex is in the early stages of their cost response. clearly what happened in september was a shock to

everybody. the magnitude of the miss and the guide down it happened a little bit in the second quarter we'll have to see if the 2.5 billion of extra costs can be appropriately done, executed and enough to offset this demand weakness. >> what do you think the job of the new ceo, how is he doing so far? >> it's early stages and it's been a rough economic backdrop it's been a little bit reactive. pretty great expectations for the next three years introduced a five-year plan, again, with very robust expectations and then we're hit by this demand collapse almost immediately. it's been more reactive i think than proactive or strategic. positive sign in the second quarter with the ability to beat the bottom line. so we'll see i think the jury is still out. but a very positive early sign.

>> in your most recent note you lowered your '23 and '24 expectations are you still sticking with that >> absolutely. the most recent note was post last night there's three moving parts here. the cost side, adding another billion dollars for the second half of the year is meaningful the revenue story, the volume side is much weaker. if you look at most of the packaged categories for the fiscal second quarter, they came in weaker than expected in q-2 they're talking about an accelerated downturn in the early part of q-3. and then the yield side, the pricing side, they've done well there, but they're going to come up against very difficult comps. especially when you look at internet, asia particularly, there's a chance for the yield that can kind of flash negative going forward.

great news on the cost side. it's almost out of necessity because the top line is weaker than expected. >> the ceo said that we're entering what he's expecting to be a worldwide recession how much of that call is already kind of worked into the stock price? >> i think a lot of that is worked into the stock price, but there's an element of fedex execution as well. their biggest competitive is facing the same challenges but don't have the margin pressure that fedex does. i want to be clear on the worldwide economic recession part, we have a legendary economist who is forecasting 4% gdp growth for the u.s but he's been saying europe and asia is already in recession i think it's important to not cast a wide net here there are certain regions that have much more dire economic scenarios that we done in the u.s. and the jury is still out.

>> you have an oversight on the stock. but you said they have bigger margin pressures than their biggest competitor what do you think of u.p.s. shares >> i walked through this internally with our group on monday morning companies in management and stocks are two different things sometimes. and the fact is that u.p.s. has done a better job reacting to the demand weakness. they seem to have a much better handle on it and a bit for flexible with that which means their earnings hold up better. but the stock has held up better as well. the gap between the multiples on these two stocks and -- admittedly, fedex is in the dog house for a reason because of what happened in september the bar is much lower there. there's much more ability to revert on the margins and on the eps. if they execute most of that, there's upside to the stock. but u.p.s. has done a better job handling this downturn.

>> thank you. >> thank you. when we come back, the fight is over for -- the fight over inflation is really heating up in the one corner you have the fed, in the other corner the market we will debate the sharply differing views on whether inflation will come down and how it could happen. before we head to a break, let's take a look at this morning's leaders and laggards on the s&p 500. nike is up 11.5% that's not just s&p. that's a dow component helping things there with the dow indicated up about 215 points fedex up by 4.5% on the downside, sfb financial, down by 3 1/4% stick around, we'll be right back. >> announcer: time now for today's aflac trivia question. according to a survey by the national retail federation, how many people prefer a gift card e sw wn bcsqdays thanerhecn "uawk box" continues what do you... got there?

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top gift cards include visa or mastercard prepaid cards, gas cards, or grocery cards. some new housing data out this morning and diana olick joins us with the latest read on the mortgage market. what are you seeing? >> mortgage rates dropped again last week and that finally lit a fire under borrowers looking to save a little cash applications to refinance a home loan jumped 6% last week from the previous week. but buy in was 85% lower than the same week a year ago because there are fewer borrowers that can benefit on a refinance it dropped to 6.34% to 6.42. that's for loans with 20% down apparently that was enough for some people to save some cash. so mortgage applications to buy a home, though, essentially flat down 0.1% for the week and down

36% year over year this is the lowest time of the year for housing and while rates are lower than they were a month ago, they're still more than twice what we were a year ago. now for the bad news, rates started this week higher and jumped 11 basis points yesterday after the bank of japan shocked global markets rates are now close to 25 basis points higher than they were just last thursday becky. >> ouch. good news, bad news. >> ouch. >> diana, i would say, just anecdotally, a mortgage bank that i won't name that used to call me all the time called me a couple of times last week and tried to get me to take out a home equity line of credit things are getting could have out there, the people who used to be constantly doing these mortgage refinancing, probably looking for new lines of business all over the place. >> exactly and that's going to be the big line of business coming up this

year people simply have so much home equity right now that the banks are looking for that as their next cash cow because there's no refinance market there are less than 200,000 people right now who can benefit from a refi. but there are millions of people who have enough home equity to take it out. you're going to see a big push for that next year. >> diana, thank you. still to come, the battle between the fed and the market over inflation and how it will eventually hopefully someday be brought down we'll debate that after the break. and then the flu, rsv, covid, triple threat this winter. and cold medicines are flying off the shelves. there's someone i don't miss it will be good to see him come back. >> great to talk to him about other viruses. >> if you can't find any, you're not the only one there's no medicine. dr. scott gottlieb is going to join us at the bottom of the

hour hay ask him about china too. i ven't heard his comments about what we can expect there scary stuff. "squawk box" will be right back.

at the root of the divergence between the fed and

the market's outlook on rates, you have the differing views on how, when and if inflation comes down steve liesman joins us right now with more. good morning, steve. >> good morning, becky that large gap in the outlook for the funds rate between the fed and the market, it can be partly explained by differences on where each thinks inflation is going but more importantly, on -- even where they think inflation is right now with some thinking the fed is looking at it all wrong and about to make a big mistake by raising rates too much. mike england, he tells me, our view is that the fed is toggled from one view to another, from transitory and they were pretty adamant about that, to a 1970s view of entrenched inflation the key to the marketview, they're looking at the relatively benign inflation of the past five months and analyzing it and they're comparing that to year over year rates which, by the way, would include -- includes high inflation over a year ago. so take a look at these numbers here headline inflation is 7.1% year

over year. analyzed the past five months, it's 2.5%. core inflation, 6%, analyzed the past five months, 4.7% still some work to do on the core but lower oil prices and things should work their way down there jay powell is aware of those numbers. he wants to base his outlook on a subset of the inflation data the service sector, ex-housing, it's more than half of the core sector and driven by rising wages and a tight labor market that he does not see going away. >> there's an expectation, really, that the services inflation will not move down so quickly. so we'll have to stay -- we may have to raise rates higher to get to where we want to go that's really why we're writing down those high rates and why we're expecting that they'll have to remain high for a time >> so the fed has written down 5.12% for next year's funds rate the futures market, 440 or below

that some of that is likely a built-in mistake that they think the fed is going to make in that view, the fed they could raise too far and holding for too long becky? >> that's the constant debate. we heard about it, i guess, today from elon musk saying, look, he's already seeing deflation in come pponents for things that they need in tesla. >> you hear that and you hear the layoffs and other things out there. you know, maybe giving the fed some credit here, it's probably why they're likely to go slow in the next couple weeks -- say again? >> slower. >> slower. go slower. that's right go down to probably 25 basis points and try to feel their way. but, again, this market view suggests the fed is already making a mistake and they see other parts of the inflation story getting better you hear stories about used car

prices falling, you hear stories about more cars on lots and then there's an even bigger debate we could talk about, becky, which is whether or not wages are really driving inflation or if inflation is going up in response to inflation. not to mention that interesting debate we had yesterday about housing. do you solve inflation by reducing home building or do you solve inflation by creating more homes? >> yeah, look, the other issue is, you've got different areas of the economy, parts of the economy that have collapsed. other parts are hanging in and going superstrong. that's the most complicated part it's not a single engine moving in lockstep. if you're one of the parts that is having a recession right now, you're probably speaking loudly about this but there are other places where they can't fill the demand >> we're back to the same old problem. the fed has only one tool.

they can't say, we're going to give housing one rate, autos to the rate and the oil industry, we need to give that -- another rate that's essentially what fiscal policy is for. another debate we could have, maybe we'll have it another day, whether or not the fed is getting any help from the fiscal side given that big budget they're about to pass. it's large in terms of the amount of spending. >> thanks, steve. and we try to plan debates on this subject, and i never know i don't know how i feel sometimes. sometimes i'm on the other side. it's strange bedfellows, let's see. let's bring in a fellow of economic studies at brookings and a distinguished fellow -- wait a minute, you're a distinguished fellow at the hoover institution and i think pretty distinguished and served as chairman of the council of

economic advisers and a senior adviser under president trump. i was ashrelluding to, do you tk the fed needs to be hard core and cause a sharp slowdown and higher unemployment to conquer inflation? that doesn't seem like something that brookings would want to do, at least not very often. >> the part that i hope they don't have to do is when you use the word "sharp. but we do need to slow down the economy moderately from where it is and particularly consumer demand for goods consumer demand for goods has been remarkably strong it is still over 5% above trend. and i think we're not going to get inflation under control in a durable way until the fed can bring down goods spending. >> and, kevin, i have argued

that it's just no way to run an economy, with such a blunt force instrument if we had -- if we were trying to increase supply, if we got a problem with supply, you would want low interest rates for entrepreneurs to be able to start businesses, to hire for people and solve the labor problem. you want less regulation for oil and gas to bring down -- or to raise supplies and demand is good demand is a growing economy. demand is global growth. can you do it through supply or does is the fed left with nothing. where do you stand >> sure. you could do it through supply, but that requires fiscal policy and, in fact, in the omnibus bill, they have it backwards there's about $100 billion of corporate tax hikes in that bill and so they're squashes supply while they're trying to fight inflation. but i think the market's

estimate is about as pollyannaish as i've ever seen usually what happens is the price inflation drops to wage inflation but i can't really go below it, because firms need to pay their bills. if price inflation goes to wage inflation and it's a normal '70s recession, it's going to stay there and the fed is going to have to do what you guys just said, you hope they don't have to do, crack down because inflation is stuck at 4 or 5% and it's not going to go down below that unless wage inflation goes below that. and wage inflation drops if unemployment goes up a lot the fed has to act way more than 5% and certainly isn't backing up at the end of next year but the other potential is that the prices are dropped below wages and so then all of a sudden, let's say you had price inflation at 2 1/2 and wage inflation at 5, and then

correspond corporate earnings are going to go completely down the tubes either scenario is a nightmarish one for equities we're in this stage of the tightening cycle where people are assuming that the fed is going to absolutely nail the soft landing and i pray and hope that they do it will be the first time ever if they do and it's a very difficult problem to solve. >> wendy, we consistently hear that labor is one of the problems you're seeing some cost of goods come down a little bit you're seeing shelter come down. labor staying stubbornly tough to bring people back after the pandemic there is an argument that it's too attractive to stay home. i mean, we all want to have a safety net, but those programs have expanded across the board and, you know, there are genuine people that are unable to work, unable to get a job. maybe there's a lot of people

who could work that could stay home for 40 or $50,000 a year. that's why it costs so much to bring them back. have we expanded too much on the safety net >> so we don't see evidence of that in the data by any means. labor force participation among prime age workers is back. where we've seen a decline in labor supply is among older people people 55 and older. and likely these are more permanent early retirements that the fed just has to take on board and accept that we're on track for a smaller supply of labor than we were before the pandemic but let me say, i think that the projection underlying the fed's projections right now represents an extraordinary achievement and a soft landing if we're really able to get inflation back down to acceptable levels, even close to our 2% target, and only open up a moderate amount of slack in

the labor market and get the unemployment rate just for a short time up to about 4.5%, that would be extraordinary. i think that fiscal policy and monetary policy could call this a success. so i don't think that -- i think the markets are, indeed, being pollyannaish, but i think the question that markets and the fed are probably disagrees on and time will tell is when we will start the -- start having projections that we're all running in our models where if the fed doesn't start cutting, inflation will actually undershoot 2%. at some point, that's going to happen but whether or not that happens in mid-2023 or late 2023, you know, those are open questions that we have a long time to answer >> kevin, the critics of how much money was spent dealing with a pandemic, is it that -- that there were too many dollars

created for too few goods which caused inflation, or too much incentive to not come back to the workforce? what's your view >> i think it's a little bit of both and, you know, we now have the benefit of hindsight what happened when i was in the white house helping to organize the response to the pandemic recession was that we kept doing bills that lasted about two months and i could remember we talked on your show like at least once a week and i would say, we're building a bridge to the other side and we passed five bills that year that were each like little bridges to get us through the next couple of months by the end of the year, i think we filled the hole that the policy dug and one way to see that is in the first quarter of 2021, gdp growth was 6.5% and inflation was one something. and then president biden's team came in, looked at the really high covid cases, i think there were 250,000 a day when they

first took office and they thought, we're going to have to do more pandemic stuff than we expected and they passed this massive stimulus and so my view is we had reached back to where we should have been because we had a whole bunch of little stimuli. those bills all passed with unanimous consent. but the last one that came in, the democrats decided to swing for the fences with a massive bill and there are studies out there that say that's what set off the inflation. it's not the story for all the inflation, but it's what set it off. i think, yes, that spending was what happened to start with, but then what happened is you start to see, like, all the other steps of a recession and that's what we're living through now. where we are in the life cycle of the stagflationary recession. what happens after that is going to determine the path of the

economy in markets. >> passing a big bill, wendy are there things in the omnibus bill -- we don't know everything that's in it because it's been done so quickly. are we adding to our problems with this? should we wait until next year >> these are -- these are small changes to the overall economy relative to the huge forces that are in the economy right now but we are not in a recession and we are not in stagflation. we have remarkably strong labor market we have remarkably strong growth and employment right now, goods demand is still quite strong consumers' balance sheets are doing very well, and we have inflation that's too high. that's not stagflation that's not a recession that's too much aggregate demand that the fed policy is going to continue to have an effect onto bring down and moderate.

that's -- there's just no -- there's no universe where you can look at this economy and either, one, say it's in recession, or two, say there's stagflation. >> we're going to end it there, wendy. thanks kevin, thanks. merry christmas, happy holidays. it's coming, but so is the snow. we've got to navigate through that over the next couple of days thanks for coming on this morning. so is a surge in flu cases and respiratory cases leaving medicine shelves at pharmacies and stores empty we're going to talk about the shortage what could happen around the holiday season and why it's happening. it's all coming up with dr. scott gottlieb you can get the best of "squawk box" in our daily podcast. follow squawk pod on your favorite app and you can listen 'lbeig bk.time wel rhtac thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq,

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welcome back to "squawk box," everybody. you're looking at some festive moves for the market this morning. the dow futures are indicated up by 263 points. s&p 500 futures up by 21 the nasdaq up by 48. this comes on tomp of gains

yesterday. the nfl is finalizing a deal for the rights to its subscription only package of games known as sunday ticket with google's youtube tv it's been held by direct tv which has been paying $1.5 billion annually. the terms of the latest deal aren't clear yet reports say the nfl has been seeking a buyer willing to pay maybe even double what the old one was. this between 2 to $3 billion a year. coming up, dr. scott gottlieb on the surge in flu and rsv cases across the country and why there's a medicine shortage right now in pharmacies to treat them and then in the next hour, we'll talk government spending and the president's handling of the economy with senator john kennedy of louisiana "squawk box" reason right back ♪

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a rise in respiratory illnesses and an early start to the flu season leading it a surge in demand for drugs to treat these illnesses, cvs and walgreen's are limiting the purchases on some fever-reducing, pain-relieving products dr. scott gottlieb, the former fda commissioner and cnbc contributor who serves on the board of pfizer and yesterday in walgreen's not a single bottle of children' tylenol.

>> this should start to abate. this is not baby formula with a dislocation in supply, what happened is they had too low volume years, the manufacturer, and they made predictions what the demand would be this year and the predictions weren't sufficient and the deal was not just a surge in demand but also this early demand. so things were pulled forward, and this should get, this should be depleted over the course of the season and you should start to see shore stefls st-- store shelves get restocked. there are spot shortages because there's a lot of advanced purchasing by consumers. and there is some of that going on >> and it is frustrating that is less concerning than the prescription drugs that you can't get. some of the antibiotics in particular, because those, you really need, if it is an ear infection, strep throat, something going on, what happened there >> right, so same thing. manufacturers didn't make accurate predictions about how much demand there would be

so oral suspensions of amoxicillin, tamiflu in short supplyand shifting from amoxicillin and now starting to see some shortages of those drugs and things like tamiflu, there are directions to compound from the capsules to get liquid formulation and states are dipping into the stockpiles, i think that will start to abate, there is a lot of sophisticated manufacturers in the supply chain and they ramped up production, the fda has ramped up imports and stockpiles are there and i think it will be abating but the manufacturers need to make different predictions next year and early demand they made predictions that it would go up but not this early in the season. a lot of the oral suspensions don't have long shelf lives so they are made early and used up. >> so this is just what happens when you have kids who weren't exposed to these things when they're 2, 3, 4 years old and

all of a sudden everyone is living lives as normal and not building up their immune systems. >> we have adeno viruses, and influenza, and respiratory viruss in the winter time, and we don't track that, a lot of seasonal coronaviruses, so people going to the doctor, probably some people getting prescriptions for antibiotics maybe a lot thatthey don't need. >> i don't know what has been coming through our house, it is not covid, but it is wave after wave. >> the only time you get, you might get a test for an adeno virus or a para influenza, if you go in the hospital and sick with a respiratory pathogen, they might do a bio fire test which is a broad respiratory test panel that will pick these infections up but most people don't get that unless they're very sick and most people who are very sick have either covid or flu so we're not picking up, we don't know how much adeno virus there is, it is a lot.

and more than upper respiratory type of infection, conjunctivitis, that could be a rhino virus. >> do you have a mask with you >> i do. i wear it in airports. >> is that the new norm kwl. >> so you're wearing these things and maybe due get it but if you wear it for three months and get that mask on, and you are wearing it for three months is, that worse than getting whatever it is that you get and dealing with it for three or four days? is it the new normal that we would wear these masks all the time, scott? if you want to try to avoid, i know people who wear them, now trying to avoid anything, i don't want a cold, i don't want a flu, i don't want this, i don't want this, and you just mentioned like 20 mention, i wouldn't leave my house. i wouldn't leave my house. >> i think some people, it is a new normal >> if you have immune problems or chemotherapy, or 80 years old. >> but you don't want to get covid or flu from a crowded setting.

if i get sick, i want to get it from someone i grow covid was an airborne pathogen. we didn't recognize that early on so a mask, especially a low quality mask is going to be less effective against airborne viruses, and flu, the mask is more effective. >> we've lived through flu seasons for many years without masks. >> i don't want to walk around and see masks for the rest of my life. >> why does that bother you? >> it just does. you could go crazy and it is a flew normal. you can't see people you can't hear what they're saying >> why do you care what somebody else is doing? >> do you stop in the airport anyway people won't recognize you that way. >> i can't believe that's where we're headed what about china >> i think china is in trouble two things they haven't lifted all

mitigation, and they're still implementing some mitigation and i think that will slow the spread but not prevent it. >> how many people are dying you? >> much more than what they're reporting. >> much more. >> they have different strains circulating, and in beijing, ba.7 and other parts of the country bq.1 and ba.5 and other immuno-based variants so they have the ways to reinfect themselves they have multiple variants simultaneously so they could have beijing has ba.7 and then the north has another one and swap places. >> what does this mean for the rest of us are we all getting these variants >> these are already here. >> it is not an incubator over there. >> i don't think so. i don't think that's the problem. we have to make a decision with a meeting of the fda after the new year whether they will decide to formulate a new vaccine based on these variants to have in the back pocket just

in case. >> because of china -- >> because it is already here. >> i don't think we'll ever know for sure about wuhan but there is a lot of scircumstantial evidence >> do we know some of that stuff went around, did it look like he had a invested interest in making sure it didn't come out was there data function research going around >> you get into semantics about what data function research is that lab was clearly doing data function research. >> it was. and the nih gave them -- >> and we don't know if the nih money went toward that research. it is unclear. >> thank you >> that covered it all. >> wear a mask when you go out. >> i asked you you said you got one with you. >> i'll give you a mask during the break. >> thanks. >> it's clean. >> i don't care whether it's clean. i like dirty. we are going to talk three dogs, fourth one coming up, and

coming up, a check of the markets.

a strong open on wall street pointing to a strong open. the dow futures higher, with nike, among other things elon musk says he will step down as head of twitter but not yet after getting proverbially voted off the island by his followers the other day. musk outlines his next step at

the social media company. and f-t-xtradition sam bankman-fried expected back in the u.s. facing charges of the collapse of ftx. "squawk box" continues right now. good morning, everybody. welcome to "squawk box" here on cnbc, live from the nasdaq market site in times square. i'm becky along with joe kernen, andrew is off. u.s. equities futures pretty strong the dow up by 300 points we have seen increasing gains, a lot of this is because of very strong earnings, companies like fedex and nike in particular helping to fuel the dow.

the s&p up 26 and the nasdaq up 61 and the treasury yields higher as well, a move because of the bank of japan and the 10-year now at 3.658%. >> two of elon musk's companies in the news. first, twitter musk says he will resign from the top position of the company as soon as i find someone foolish enough to take the job two days after a majority of users that were polled, told musk she step down and musk says once he did, he will run twitter's software and servers teams. >> and no one wants the job who can actually keep twitter alive. there is no successor. meanwhile, ev news site electric reporting tesla has told employees it will freeze hiring and planning another round of layoffs next quarter according to the sources that spoke with the website tesla shares lost more than 8% in the last trading session that we saw falling to a more than two-year

low. musk spent some time yesterday and this morning replying to twitter users complaining about the stock price. and ftx founder sax bankman-fried will be returning to the united states today after he signed extradition papers in the bahamas. that's according to an official there who spoke with cnbc this follows confusion over the last two days over whether bankman-fried would in fact be extradited i faces eight federal charge in connection with the collapse of ftx including wires fraud and securities fraud. we'll move over to the broader markets right now. with stocks having just broken four-day losing streaks. mike santoli joins us with more. is it too late for a santa claus rally? >> no, in fact the santa claus rally doesn't start until the final five trading days of the year and the next one. we have that trading window in the second half of december. typically strong but not yet, it is firmed up, the s&p 500 chart stabilizing around the 3800 level, getting a boost today it is looking like there is a

chance we have of a trading range developing, the lucky outcome here, basically going back to the november cpi number and held on to those gains we're really looking range-bound for six or seven months. stock versus bonds globally, we sorbed that bank of japan yesterday. and take a look at the all country world index relative to government bonds globally. the price of the bonds has been in lock-step all year and not staying this way, if you do a broader longer-term chart, it doesn't fit so well. so far this year, it is a re-pricing of bonds causing the re-pricing of stocks and now the growth story today, two-year anniversary of tesla entering the s&p 500, and take a look at tesla versus the s&p 500, from the day it was announced that tesla would go in, that is november 16th of 2020, and here you see that huge surge, once people got excited about the fact that tesla was going innen and most stocks

don't really surge that much when they go in. obviously it was a mania under way, and now, it's slightly underperformed from that moment, the s&p said tesla would go in. >> elon himself making some commentary about why he thinks the stock is down, just pointing out that with those higher interest rates, it has been a big part of that, and with the fed making other places look more attractive to put your money instead of equities, obviously it has particularly hit the high growth stocks, and it makes sense >> it srt paf the story, it's not $700 billion worth of lost market cap of the story. that's the way i would put it. and that's what you've got. >> if you look at it, it is not down as much as a company like meta but i guess if you look at it more recently with the stock sales, it has a bigger impact. >> depends where you're measuring it from. it is down 65% it had a massive run over the prior year before this, it is still up a few hundred percent

over three years you can talk about what drove that but not interest rates on the way up or on the way down. >> mike, thank you see you later. rick joins us now from a focus on rates at home and around the world as the bond yield control program, it kind of made a difference, it kind of yawned with the ecb, but that got everyone's attention did that make sense, rick? was it justified >> you know, i think it makes sense and i think it made sense in a variety of ways the head of the bank of japan will be leaving in the first quarter of next year after completing the 10-year term. abe is gone. and i think there is a shift going on but i think even more than that, you know, in 2012, 2013, i talked about all stimulus is fungible so when one central bank starts quantitative easing, all that

money, water basically travels around the globe and satisfy any drought condition, and the same is true in reverse, joe, okay? when we start to see rates going up by central banks, we start to see quantitative tightening by central banks, the fact is that the removal of stimulus is also a fungible issue, meaning that it affects everything globally and i think we need to look at this from a number of vantage points, and i think, a, japan's the number one holder of treasuries, although they've been buying less, my guess is they will be buying much less. the arbitration of rates, with their rates being higher, means they probably won't export capital via savings and purchase some of the high quality securities around the globe like the u.s. and i think the other thing is, you know, we had, i forget it was, i think it was october, we hit 150, yes, it was october 20th, the close of the dollar and yen was 150, that was the lowest close for the yen versus the dollar since 1990

and questions as to what will happen with the yen now, it will start to firm up and when it firms up, it's going to change all of the dynamics, because japan has no commodities to speak of, they import all of their energy, and they import all of the raw materials for the most part, and their costs are going to be going up, their inflation level is just shy of 4%, and things are changing in japan. i think the biggest issue is how lucky they've been for over three decades considering that the nikkei was just a whisper under 40,000 in 1989, and it's under 27,000 today, and people say the japanese have gotten away with it, well, if you bought their stock market before my first daughter was born, you're still losing a boat load of money who's winning and who's losing here, joe? >> good point, rick. do you think this is a multi-process to work off the

excesses i was asking that earlier of peter. because if not, it seems like we can get away with what we needed to do for 13, 14 years, no price discovering, staying at zero, being very accommodative, if we can work this off in a year or two, with a mild recession or even a, you know, just slower growth, i don't know, that brings a lot of moral hazard into it, because we'll do it all the time then. >> yeah, no, i think it's got to get messy. it's got to get messy, joe it's just a question of who has the messier field in their backyard is it going to be us is it going to be the japanese is it going to be the chinese? >> the zero covid policy, i know you're discussing it, i do not want to get into it, and all i want to say is itis a strategy that i don't think anybody wants to use in the future again, but there's a lot of issues, not the least of which 1.7 trillion omnibus package, over 4,000 pages, anybody read it

no, we just passed it. and we consider republicans, and this isn't political, to be more fiscally conservative, that doesn't sound fiscally conservative to me, that sounds insane and we all worry about the stock market maybe there's bigger things to worry about than the stock market when i look at all of the countries and all of the these countries and what they're doing, whether the handoff to evs, whether it is the omnibus bill we just spent, talking about inflation but not being cognizant that we're spending money, it is not even like drunken sailors anymore, it's like sailors that have had so much to drink, they're most likely never going to wake up again. this is horrible and okay, the piece deresistance, joe, all of the fed activity that you are so unhappy with, because they want to squash every aspect of the economy, because they screwed up, not us, and the fed says that all of that, all of the fed policy's built on the foundation of sand, because for a fourth

month period of job creation where the bls shows 33 states plus dc creating 10.5 million jobs, they only show 10,500. so many people emailed me about this, because the story is a week old but we won't know until march, or at least the february jobs report, which shows all of the benchmark revisions, and trust me, the philly is right, and no reason to think they're not on the right track, we're going to see one heck of a move the first week in march. >> all right, rick santelli, thank you, we'll see you hopefully before the end of the week, and i wish you a happy holidays, and merry christmas then, but thanks for all of that we will see you. when we come back, president biden is set to host ukrainian president volodymyr zelenskyy at the white house today. we'll get you up to speed on this important story. and then we will speak with

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welcome back to "squawk box. a couple of movers, nike the big gainer this morning after a better than expected fiscal results and fedex moving higher on mixed kwaquarterly numbers. investors encouraged by a vow from fedex to continue some aggressive cost cuts. ukrainian president volodymyr zelenskyy planning to visit the white house today. it is believed to be his first trip outside of ukraine since the war there began more than 300 days ago kayla, there is a reason he is in the united states, right? >> becky, the surprise visit by ukraine's president days ago and kept under wraps for security reasons, arriving on the white house south lawn and visit with the president in personfor the first time since 2021 and meet with the national security team and cabinet and hold a press conference and deliver a speech

to a joint session of congress this evening house speaker nancy pelosi officially inviting president zelenskyy in a letter overnight, praising his leadership that has rallied the world and writing, quote, america and our allies have proudly answered your call, imposing devastating sanctions on putin and ensuring ukraine has the resources it needs to win this war the visit comes as congress is set to greenlight $45 billion in new aid to ukraine, between now and september. bringing the total to more than $100 billion and raising new questions about the viability of future aid under a new congress a senior administration official says future funding is expected to remain bipartisan and so the shared message today is targeted toward russia, not republicans the u.s. today will also unveil plans to send $2 billion in patriot missile defense systems, providing ukraine with a new capability to defend against russian missiles and drones. russia's foreign ministry has said such a move would represent

an escalation. the kremlin has described the next phase of the war as complicated and u.s. officials suggested that president zelenskyy's travel outside his home country should not be seen as a sign the end of war is near becky? >> when they're looking at republicans coming in, and mitch mcconnell has said that he supports ukraine, would like to give them more money, i think kevin mccarthy has a tougher hand with all of this, dealing with some of his house members who don't want to do that, and having a pretty tight number in terms of how many people he has to count on for that what happens, if you're going to get it passed in the house, is he going to have to look for additional support coming from democrats next year? >> well, i think, becky, it is important to note that actions speak louder than words and even though kevin mccarthy, the top republican in the house, has said that congress won't be giving the administration a blank check when it comes to

ukraine, he also followed that up by moving behind the scenes to try to assuage his colleagues that he would not be an obstacle to such aid and senator lindsey graham, a republican from south carolina, has also said that if there are any republican skeptics about future aid to ukraine, that he will sit down with them personally and promise to put mechanisms in some of this aid to ensure that it is accounted for going forward. so there's still a lot of republican support even though, you know, publicly, some of the rhetoric is starting to shift, and a little bit of the public opinion here, at home, for the war overseas, it is starting to shift, but we'll see what the new year brings becky? >> thanks. joining us now to talk about the aid for ukraine inside that big funding bill, just unveiled in congress, as well as all of the other spending, senator john kennedy of louisiana, he is a member of the appropriations committee. senator, not all republicans are created equally here this is going to probably pass, isn't it each though it could be done

next year, and some republicans would like to do it that way what's going to happen >> i think senator mcconnell has his votes. since the 1950s, you don't, we've had about 10 periods of disinflation in america, we have never achieved disinflation, without the federal reserve working with congress, demonstrating fiscal restraint so my objective in this budget, in addition to not shutting down government, is to try to reduce the rate of growth and spending, of spending and debt accumulation, as much as i possibly can, to help the federal reserve. i've been given two choices. door number one is the current budget proposals put together by senator mcconnell, senator schumer, speaker pelosi, it's about 133%, no, strike that. it's about a 33% increase over

pre-pandemic spending, the three people who put it together, say it is the best they can do but there is a door number two door number two is to wait for a republican house of representatives and allow the house republicans to put together a bill as a starting point. now, you don't -- basically, that would substitute mccarthy for pelosi, in terms of putting together a budget bill you don't have to be a senior at cal tech to figure out if your objective is fiscal restraint, you're better off with mccarthy than pelosi, but a lot of senators have argued that, well, the house will never put together a budget, we look at it over, there i'm not saying i agree with this, but they say we look at the house right now, the house republicans, it looks like the fire drill, they can't even elect a speaker, they will never put together a budget, we need

to go with the budget that mcconnell and schumer and pelosi put together to me, that is a very cynical point of view. i'm going to vote to wait and give the house republicans a crack at it. and of course, there are a lot of -- i'm sorry, go ahead. >> i was just going to say, i guess you might have expect it from "the wall street journal" but the ugliest omnibus bill ever the republicans are pointing to what is in there, they like that, and the discretionary amount, but there are arguments, do we know what is in the bill, it is 4,200 pages give or take is this another instance that we find out after we pass it? that is no way to do things. how does it keep happening >> yes, we don't know, we don't know what's in it, and yes, we'll have to find out later my staff, we're going through it right now, but it is 4,000 pages.

there was reporting last night, for example, that the bill contains i think $400 million to help jordan, the country of jordan secure its border one could bring together a pretty persuasive argument that that is a pretty dumb thing to do but look, i have colleagues, on the republican side, as well as the democratic side, in the senate, that they don't think the spending makes any difference in terms of inflation. it makes them happy to spend money. if they ran out of money, they would be happy to slap a second mortgage, or a reverse mortgage and keep spending. they think that the fiscal side has nothing to do with inflation. and i just don't agree with them i think to put out this fire of inflation, we're going to have to attack it on the monetary

side, which they're doing a pretty good job of and we're going to have to reduce the rate of spending and debt accumulation by congress. but i think i'm in the minority on that. >> let me ask you, senator, you saw when the u.k., the very short-lived prime minister tried to do some supply side issues. do republicans still think the supply side can be helpful here, less regulation? there's probably no stomach for cutting taxes anywhere everyone wants to raise taxes on corporation. but do you add, it's not spending but it adds to the deficit theoretically when you cut taxes, should we do those things, or shouldn't do anything no spending and raise taxes? >> i think we have to look at

the supply side. you have to be reasonable about it what happened in the u.k. is not demonstrative in my opinion of supply side economics. they never gave their new prime minister a chance and the establishment, particularly the financial establishment, the federal reserve, and the u.k., sort of torpedoed her plans. i'm not saying they would have worked but the point is we'll never know we do need to look at the supply side, particularly we're headed into a deeper recession, we need to look at curbing regulation, and looking at selectively extending some of the provisions of the tax cuts and the jobs act of 2017. but in doing that, i don't want to mislead your viewers, joe, we're swimming upstream, because i would say, i don't want to be critical, too critical, but we have a lot of big government republicans, and we have a lot

of ritz carlton democrats in this congress, and most of them don't believe that the spending makes any difference in terms of america's economy and our attempt to reduce inflation. now, i don't agree with them i think those who believe that were probably in the quad playing frisbee during econ 101, but we're going to find out, because i think this budget that they put together is going to pass >> so if you can actually point to the last two years, let's say, where before the fed, when the fed thought inflation was transitory, they kind of enabled all of the fiscal spending is it fair to say that, that they were kind of partners in crime with congress, in terms of enabling, because you got to keep rates low if you're going to service the debt, but that comes home to roost, and i don't

know, what does that do as far as crowding out, in terms of future growth, over the next three, four, five years, when we have $31 trillion with interest rates going up i mean now, it's coming home to roost. >> well, it's true, that we had there for a while a team transitory inflation and it's true that chairman powell remains silent, when congress spent all of this money, particularly president biden's american rescue plan i understand the position chairman powell was in he was up for reappointment. i wanted him to be reappointed because i'm through first, i think powell did a pretty good job of getting us through the meltdown, from the pandemic, and particularly with his currency swap line. but also, because i wanted powell reappointed because i knew the alternative would be worse. but i will give this to the chairman, now that he's in,

permanently, he's doing what he has to do to curb inflation. but what's he doing, joe he's raising interests he's trying to slow the economy? what does that mean? how do you measure that? you measure that in unemployment basically, what chairman powell is doing is trying to put people out of work. that's his job i'm not being critical and in order to get control of this inflation, he's going to have to put maybe six million to 10 million or more americans out of work. particularly if congress doesn't help him if congress doesn't curb the stimulus of our spending, he's got to raise rates that much higher and put more people out of work and that's the sad circumstance we find ourselves in it can be fixed. but you're going to have to, we're going to have to have some people be born again in terms of how much money we can spend. >> senator, they tell me we got to go. i don't know whether you got a postmortem on this, this most

recent election, and how to avoid, with everything that the republicans had going in terms of, take your pick, whether it is inflation, or crime, or the border, take your pick, and still, snatched defeat from the jaws of victory, and not a red wave, and not even a red trickle, how do republicans avoid that in 2024 what have we learned and what have the republicans learned? >> here is what i've learned the american people looked at all of us in washington and set a pox on both of your houses they took the house of representatives away of president biden, certainly not an endorsement of biden and didn't give republicans any more power, and in fact, they gave us less in the senate and the american people right now want divided government, they don't have a lot of confidence in either side. i learned that, plus i also learned that you can't poll the

american people right now. there's substantial number of americans who are just not going to answer a poll truthfully. this is like the third election cycle where the polls have been wrong. >> all right, senator, hope to see you again. have a great holiday break, and merry christmas. happy holidays >> thank you >> and happy new year, also. >> you too. >> it's coming it's going to be better. that's a song. >> something about elon musk says, no one, in his words, can actually keep twitter alive wants the ceo drive. we will talk about whether where that is true and a conversation dot nt to miss stay tuned you're watching "squawk box" on cnbc vo: palantir software. empowers scuderia ferrari

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up next, elon musk may have lost a big percentage of twitter's employees and advertisers, but he has managed to keep it in the news is it enough to tie the business over until it can get back on solid financial footing? we will talk about it next when "squawk box" returns even if you got ppp and it only takes eight minutes to qualify. i went on their website, uploaded everything, and i was blown away by what they could do. getrefunds.com has helped businesses get over a billion dollars and we can help your business too. qualify your business for a big refund in eight minutes. go to getrefunds.com to get started. powered by innovation refunds.

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welcome back to "squawk box" on cnbc, futures right now, have been dipping higher, about 333 points now, nike helping out quite a bit, but like some of the other dow components, now chipping in and turning out for a good session as we told you at the top of the hour, elon musk says that he will step down as the ceo of twitter once he finds someone who in his words is foolish enough to take the job but whoever it is, is likely to have a tough road ahead. musk has slashed twitter's head count and alienated many of his top advisers, just in a matter of weeks joining us right now to talk about musk's moves and his leadership style is jeffrey sonnenfeld, yale university

dean and shelly archambault, a board member, and lef, jets start with you, with a ceo summit, you polled the ceos, what they thought about his leadership style. what were the results? >> the results were pretty devastating. we had 79% of the ceos said elon musk has become a detriment to the value of his business, 69% said twitter's best days are already behind him, and only a quarter of them felt that twitter will be more valuable in five years 98% believe that musk overpaid for twitter and 56% think the company should stop advertising on company, and 41% said people should stop using twitter. and sure enough, as you just mentioned in your opening, it is more than half of their major advertisers have left already, and they have lost more than a million users since he stepped in to control it. >> he definitely is doing things in an unorthodox manner. is it all bad? >> well, when you look at the current results, you have to say

yes, and any metric from a shareholder's perspective, and he is not creating value the ceo's job is to create a business that actually delivers profits and operates, right, to achieve the overall growth and objectives and it's not clear what elon's vision actually is, his strategy itself and even the next steps by the way, a ceo's job is not to upset and alienate their primary-paying customers, which are advertisers. >> when it comes from the silicon valley culture, where it is move fast and break things, the idea of laying off 50% of our staff pretty willy-nilly definitely has people concerned about things, but he is a bit of a hero when it comes to a large part of the silicon valley culture, jeff and if you were talk together ceos, talking to the silicon valley types, they might look at things a little

differently? >> you're exactly right. any second now, i will be getting a nasty gram from larry ellison or somebody and when is the last time i sent a mittle 350 miles into the -- missile 350 miles into the sky and brought it back down to a one mile square section of the ocean. he is a genius and at least for now, the world is better off having elon musk in it than not but still, you got to ask, and shellye is on a dazzling array of boards and you wouldn't find those boards with style and substance and strategy, and succession, and this is where many great tech heroes, and i have a book behind me, the book starts out as great heroes for the ceos and dragon slayers, they reveal the dragon slayers themselves and he is becoming the biggest detriment to his own

companies. and if he works the 12-hour days that he says he works despite clowning around and an hour and 10 minutes per company and that is not enough to stay on top of the fluid markets and dynamic technologies >> to jeff's point, each company, and any situation that a company is in, it is quite a different management style he is outstanding when it comes to building a company from scratch and audacious goals and make them happen 30, 40, 50 years in advance. and walk you through the space, electric cars, starlink, elon is terrific that style of leadership and management, that entrepreneurial, great things move quickly, it is what you do when you're building a business, you're creating something, and when you're actually getting an existing business that already exists and is already operating, that needs to transform, it's a different set of leadership

skills, and very few leaders, i don't care who you are, can actually be excellent at multiple types of styles and multiple types of traditions, for elon to be in this situation, this is something different. >> elon is looking for someone to take over the ceo job at twitter and as soon as he finds somebody who is capable of doing that, he will hand over the reins, what should that type of person should that person be >> you need a leader who is good at transforming. they need to take the core capabilities and develop and find the value propositions, and define the value propositions and determine what they will be and how they will get there and set a clear vision the right management team. and also, be clear, have a lot of clarity we are going to transform and change, we need to show it with clarity. to look at the stakeholders, the

customers, what are we trying to do and how we r-we -- how are we going to do it. >> he has a clock ticking because of debt coming due on twitter. what is the best way to do that? is there a path you see for trying to make this a success? >> i think you and shellye are right, he has to find a success ner. there he's lost his credibility to lead. he's alienated, there is certainly no trust in the system there and he has driven out both his, his users and his advertisers, he is driving up -- >> that's starlink for you shellye, i'll ask you, what do you think along these lines, if you're going about building this business, or rebuilding this business, and putting it back, into something different and something new, what would you suggest? this is somebody who is on so many boards yourself, how would you go about doing this?

>> you start with your customers, who you are targeting, and your advertisers, as well as the users, but it is understanding what their pain points are and what they require, and making a clear value proposition, and here is what we're going to do, and here is how we're going to execute, and putting in place the strategies to go after it. you have to start making sure that you are actually providing a service. looking at customers, and advertisers, as well as your existing users, all of that. >> jeff, you're good again jeff, when we thought that he would be stepping down soon, it was based on what he said on this poll that the pollster, the people polled said that yes, she step down as the ceo of twitter and that was good news for tesla shares those shareholders want his full attention back in a big way. that stock is up pretty significantly on monday. >> yes, you're exactly right the saudis are the second biggest shareholder, of course,

after himself, and then the strong suspicion is that poll is a canard that he is forced out by his co-owners. he is trying to make it look like it is volitional like many of his sham polls. there are successors out there he's defining this in a way that it is hard to fill, but john ledger of t-mobile fame, jeff zucker of cnn/nbc fame, you need somebody who understands technology and a media tie tan this is far from cutting edge technology twitter is number 15 and falling in social media. and there's nothing cutting edge that they're providing there and you know, they're in the shadows of the major social media companies. they're not looking for a tech titan here, but they do have, you know, big governance problems it is hard to imagine what they have, there's nobody brain storming with them, it is sort of like sam bankman-fried having no board he needs somebody.

there and the same with the other six companies. he's in trouble in all of these fronts, and his explanations of the new shiny object about what is going on, on the tesla side, it doesn't explain the massive losses there either. he is now 39%, the ford is only down 11%, gm is only down 7, and byb, and he competes with in china, it is up 10%, and xpan is up 38% in china. so his explanations about the macro economy are a diversionary tool it is really not making any sense. he is all about self-promotion what pt barnham said is that promotion is the game. he said when promotion, when you don't have any promotion, something terrible happens nothing. no, you need more than self promotion here the great leaders really can be humble and this guy is hardly a team-oriented humble leader. but he defies the critics and you got to give him credit for that sometimes you have to look at

that. >> the legacy automakers haven't moved in 15 years, they've just been money, dead money, and that is such a, that is such a ridiculous comparisonin the last six months, they're down less than tesla, you know, they barely have market caps, they had to have a bailout, they barely had any equity left whatsoever so they're down, they're down less than tesla, which had a thousand percent return over, a trillion dollar car company that came out of nowhere? that's a ridiculous comparison >> it is incredible. and if you go to space-x - >> that's what i mean >> you got to know your limits. >> the point is the other automakers aren't down >> and enough to manage a business - >> i can give you ten other tech stocks that are down more than tesla. you can't compare it to the legacy automakers that are a $30 billion market cap, for the past ten years and haven't budged >> 75% of his businesses, 75% of

the business is in china 75%. and you had this discussion with the great expert on this yesterday. >> everybody is looking at - >> everybody's got their limits. even geniuses. >> do you think cnn needs fixing >> you could put jeff zucker after what they're trying to dig themselves out of that, would be a good idea? >> they would be on steroids >> the warner merger that was a disaster, the at&t warner merger, they got a lot out of it, cnn and the rest, i don't know if you want to get into a media discussion about it. >> that used to be a great - >> you got to admit that john

ledger revived that as he has revived many businesses from circling the drain as this one is so joe, you don't think that he's a little too distracted every genius's got his limits and he's got his >> i like twitter the way it is more than i liked it the way it was before, jeff. >> it is not - >> we got to run we got to run. thank you. thank you. >> coming up, we'll get jim cramer's first take on the trading day ahead and a reminder as we head to break, you can get the best of "squawk box" on your podcast, follow on your podcast app and listen any time. we'll be right back.

let's get down to the new york stock exchange. looks nike, jim. then i realized it was 170 at some point is it back clear sailing do you think? >> i think nike is an inventory story and uniqueness story whether it be the lebron shoe that's selling well or whether it's the fact that china's found a coming back a 6% growth. i think up 12, what happens you

buy it, but the trajectory is correct and the inventory has been miserable and now they're in line. now they know how to handle the situation. the other companies are being left behind. >> for some reason, i was thinking about disney. what happened? new lows the job he did before, can he bring that expertise, is that the right expertise now to bring disney all the way back or is the macro just too difficult is. >> it's a great question the talent can come back chapek and the talent. we know that monday night football had the best numbers since 2011 so, therefore, if you want to do something with espn, it's the right time to do it i think they'll be buyers. i think iger had the touch, was able to make it so that you buy fox search life or something

there. chapek did not have the touch. the company said chapek had the touch for two years, misled people now that iger's back, the better. >> i know you're an eagle guy. franco, immaculate reception the greatest play. >> i got to meet him and he was -- the guy is just a serious guy. it's a big loss because there are very few icons that we think of for a 20, 30-year period. >> i shouldn't have called pittsburgh title town. i'm sorry. green bay is having been around with the bengals in the '70s, i think of pittsburgh as having won a lot of titles. green bay is truly title town. maybe the eagles event be actually. >> we don't know we have to see wth wheere have minchu in this weekend. >> thanks, jim we'll be right back.

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well, a little more than a half hour to go until the opening bell on wall street. the dow futures up by 371 points we continue to climb here. joining us to talk markets is kevin mann who is president and chief investment officer kevin, i know we talked to you last night before we were looking at the futures up 375 points you were saying you're not holding out hope for a santa claus rally. why is that? >> well, i think we learned from nike's earnings last night,

becky, that the consumer continues to spend, at least on sneakers that's good for the u.s. economy as consumer spending accounts f for 70% of gdp growth. the personal savings rate in our country is the lowest it's been since 2005 and roughly half of what it was prior to the start of the pandemic. americans continue to put more on their credit cards to keep up the inflated prices. i believe what's being taking place is americans are starting to sell off their positions that have lost in 2022 and starting to reposition for 2023 and in an environment where the economy will continue to slow albeit there are better days though for stocks and for bonds the. >> better days just a long time down the road, is that what you're saying? >> i think for the first half of the year, becky, you want to position more defensively. areas such as consumer staples, utilities and either health care and then during the second half

of the year after the fed finally pivots and actually pauses with respect to rate hikes, they're going to sense assess the total amount of damage to the economy. at that time you dip back into the areas that have gotten beat up in 2022 including consumer discretionary and information technology. >> kevin, want to thank you. good to see you this morning. >> my pleasure happy olidays. >> you, too. let's take a final check on the market the dow futures up by 350 points nasdaq indicated up by 59 points the s&p up by 30 remember, we did see gains across the board yesterday as well but that came after four days of losses if you've been watching the treasury market, you're going to see right now it looks like the 10-year note is up by -- or the yield is down 3.634% still elevated levels from where we were 30 hours ago oil prices, last i looked, were up a little bit, too up by 1%

wti is up 2.1% >> final jeopardy, in 1947, what kids were at a parade chanting something that became a perennial song and maybe we're seeing it in the dow today here comes santa claus, here comes santa claus. >> right down santa claus lane. >> we're seeing in the markets maybe it's a santa claus rally. >> we'll see right now it it's time for "squawk on the street. bye-bye. juror good wednesday morning welcome to "squawk on the street." i'm carl quintanilla nike and fed ex will help. micron tonight packed agenda in washington today. our roadmap begins with better than feared. reports from fed ex and nike giving stocks