it's friday, december 30th, 2022 "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm rebecca quick along with andrew ross sorkin joe is off this is the last trading day of the year and if you look around us, there is not much happening in times square here in new york there will be tomorrow >> it is getting going we wering driving through 7th avenue and a lot of barriers i don't know what this truck is. the set up is coming >> no people yet there will be. this is the scene tomorrow if you are not here by this time tomorrow, you are not getting in here you will not get here unless you walk get ready to find your spot and

make sure you have your depends on you will not leave. >> will you watch? >> yeah. >> will you watch miley cyrus on cnbc >> i'm watching whatever is on nbc. i do channel surfing i do flip around a little. >> do you watch ryan seacrest? >> i'm channel flipping. i'd rather watch from home. >> it is a nice week i always wanted to come. i have never come because it is usually so cold. >> i have never come because there are so many people here. >> that, too. >> once you are out there, they tell you plan on being there -- this is nice we have our times square debut we'll do it from here. they tell you once you're here, there's no bathroom. nowhere to go. you are stuck and you can't move for hours at a time which doesn't sound pleasant

dina showed us around upstairs you are trapped. you can't leave. you are stuck until 3:00 a.m you can come, but it is the roach motel. you can't get out. that's the issue >> i might have to do it >> something i would watch on nbc. i watch every year it is the last trading day of the year. we are ready to see what is happening with u.s. equities red arrows nothing too terrible after yesterday. yesterday, gains across the board for strong gains nasdaq up 2% this morning looks like the dow futures are off 90 s&p down 12. nasdaq down by 30. the year to date and this is one year to put in the books if you are active in the markets. dow down 8.6%. s&p down 19.2% the nasdaq down 33%. these are the worst declines we have seen for major averages since 2008 you remember 2008.

we are hoping for better returns next year. for this year, the drag on the dow for the year is intel down 49%. followed by salesforce down 48%. you have disney down 4%. 3m off 32% nike down 30%. there were bright spots. chevron up 52% because of higher oil prices that sparked record profits for the major oil companies. other big dow gainers are merck and caterpillar. in europe, stoxx 600 is down 12% since the turn of the year chinese stocks have been hit hard hang seng and shanghai composite down each 15%. the qi zhen ashenzhen is down 2% if you look at treasury yields, the 10-year treasury picked up

from where we were at the beginning of the year. 3.85%. 2-year treasury at 4.4%. southwest airlines now saying it expects to operate normal schedule starting today it canceled 39 flights this morning which is down from 2,300 flights yesterday. bob jordan saying the airline has all hands on deck and tested solutions in place to restore the operations executives saying the holiday meltdown would hit the fourth quarter results. he said it would take several weeks to work through reimbursement requests d.o.t. secretary pete buttigieg it will put southwest under the microscope over what went wrong. we will see how it transpires over the weekend and several weeks as wpeople await reimbursements >> and pete buttigieg talking

bengal about how they are looking at tens of thousands of dollars of fines. cra still has a buy rating on southwest. they took down the buy from 42 unbelievable when you think about the long lasting impact of these issues >> and if they really are going to fine them $10,000 for every affected person, i didn't want to say it would bankrupt the company. >> it could. >> there will be an interesting public policy question of want to help the customer and then the other side is you don't want to kill the company. you want a healthy airline that exists how do you balance those will be in conflict. >> you are right ultimately, they may require they do something in terms of what they are allowed to pay back to shareholders over reinvesting in the company part of it is the software that will costs billions to fix and

upg upgrade. the unions have been warning the company of the software issues for a long time. they would like to see more investment in the people of the com company. the company with a sterling reputation such an incredible competitor and so great at keeping employees happy and customers happy. that's why it is a shame to see this >> i go back to the same thing i have said all week i say this is a function of lack of competition that i f fundamentally look at southwest as an example of an airline that's culture was built on the back of the competitive marketplace and when they got to the place where they were the only low-cost carrier on most routes in america, they stopped doing it and stopped investing in the systems and people and culture which changed. part of it was size and scale. >> also a lack of leadership i think herb was an incredible

competitor and never allowed the systems to get so far out of date you have to be careful because you should buy a company p that can eventually be run by a ham sandwich because some day it will it is a lack of leadership >> ham sandwich? >> bill gates. >> buffett says he wants it to be run by idiots >> not exactly >> as long as it works >> those are issues like that. you can say that leadership doesn't matter you see a situation like this and clearly it does. that is something that built up over years of not having the investments in the systems. in the meantime, president biden signed $1.65 trillion spending bill to fund the federal government for the next fiscal year. the signature ensures the government avoids a shutdown the white house flew the bill to

st. croix so he can sign it it widens a ban on tiktok on government issued devices among the revistrictionrestrictions. the cdc is considering sampling wastewater from incoming aircraft from china tracking the wastewater would offer a better solution to track the virus and slow entry into the united states than the new requirement for mandatory tests for arrivals from china wastewater detected covid. sam blipling the community wastewater found up to four different variants four days before they were detected in nasal swabs. before we head to break, one stock to watch this morning.

apple. take a look at this news production of the iphone in china beginning to catch up for demanded for the pro model according toy an report from jpmorgan chase the analysts saying the manufacturing situation is better now than the zero covid the policy had been lifted despite the outbreak in infection, supplies are inching slowly to parity demand. shares of apple rebounded yesterday after the decline of 3% on wednesday. we will talk more about china with former u.s. ambassador to china gary locke later this hour. coming up on "squawk box," we will talk about stocks for the year as we go to break, check out platinum the best quarter since 2008. the gains thanks to high demand from the auto industry which uses platinum to neutralize

exhaust emissions in cars. you are watching ""squawk" and this is cnbc sorry. nope. okay. fresh donuts - hot coffee! they deliver real time data and business forecasts when you need it. i think it was fine how it was. (air tool sound) to help you stay ahead of the curve... or you could use workday. the finance, hr and planning system that helps cfos make better decisions faster. on the other hand, we had a great fourth quarter. for a accelerate your decision-making world. workday. for a changing world.

welcome back to "squawk box. it is the final trading day of the year futures in the red this morning. dow jones industrial average will open off 106 points it will be a light day nasdaq off 45. s&p off 15 points. hard to know how much to take from that with the light last

trading day of the year. rebecca is with us i'm curious what you want to do on the final trading day, if anything ann berry is here. founder of thread needle ventures rebecca, what's the move if there is one >> good morning. thank you for having me. we're sort of stuck in neutral right now because there are more unanswered questions than there are known entities with inflation moving to recession and think about the focus shifting from pandemic to g geopo geopolitical we have a lot of riding on the coming earnings season we think about the pressures we know will exist on margins because of the inflation issues. there are a lot of questions as we head into the new year. we will be happy to see 2022 over >> ann, will you give us more hope >> i think there are some sectors that have potential. one of the things we have seen

in past recessions is the acceleration of outsourcing. one area i'm looking at in particular is in the outsource business areas with cintas whereas wage inflation drops off, the necessary services and demand for end services with uniform rental pick up and that is recession resilient those sectors are attractive as you see the selloff the last couple weeks >> ann, my question is i get of attr attractiveness is that something that is a trend that lasts is that a play that works for all of 2023? >> i think we see the action with increasing in the first half of 2023 we are seeing that now andrew, if you look at the earnings transcripts and the message across the board, it is aggressive focus on cost cutting. a lot of the headlines are count reduction. it will shift to productivity,

investment and get rid of anything that sits in terms of cash flow for companies and asset solutions. it starts to kick in first half and we see the volume pick up for the providers to the end of the year >> rebecca, if we look at the s&p and i see you in a year from now, is it higher or lower than it is today? >> we believe it could be marginally higher. probably 3% to 5% from the total return basis think of how much of that is yield with yield of 1.5% we believe it will be neutral. it will be difficult >> if you think it is 3% to 5%, you may as well buy a two-year note and take the year off. >> we have been adding back for fixed income we believe yields are going to be important it is additive to portfolios rather than protection it is hard to envision, andrew,

a higher multiple with earnings likely flat at best in 2023 when you think single digit growth. >> there iss nothing that will have an outsized return? >> we are overweight technology and large cap software we added back to cyclicals, energy and financials and small cap back we added back international. we are below neutral there is certainly opportunity there as economies improve if they do next year. >> ann, same view? >> a different view. i'm more optimistic where we end with up next year, andrew. once we're through the issues with china reopening, i think the snap-back makes me realistic. in terms of riding that out

withhw with holding on the stocks and where there is a dividend yield and the up side to the end of the year >> you threaded the needle p perf perfectly. thank you. when we come back, florida residents are bracing for insurance rate shock contessa brewer will bring us that story next. as we head to break, check out the rough year for crypto. bitcoin has tumbled by 64% and ethereum is down 67% that matches some of the declines in the tech names tesla down equally and in some cases you have tech stocks down more 81% of investors in the delivering alpha survey said they won't touch crypto right now. "squawk box" will be right back. f trips every year?

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florida's governor signed a new law to tackle insurance crisis in florida with soaring prices contessa brewer is joining us now. is it enough to give business and homeowners a break at this point, contescontessa >> not in 2023, becky. look, everybody is likely going to see insurance rates rise across the united states iii estimates the premium growth is 9%. in florida, 33%. homeowners are already paying three times the national average. i surers have not been able to

charge enough with the rate hike before hurricane ian with more than a dozen insurers have folded or fled the state sixth year alone two dozen more are on a financial watch list it's a problem state lawmakers banned one-way attorney fees. a big reason the state accounted for almost 80% of property insurance lawsuits in the nation and only 8% of claims. the new law also prohibits the assignment of benefits which allowed a homeowner to sign over the claim rights to a contractor and the industry says that fueled fraudulent claims and lawsuits when the homeowners have not consented to sue. because options for coverage is expensive and limited, floridians find the option is insurance through citizens, the

state-backed insurer of last resort the new law requires homeowners to get private flood insurance if it is no more than 20% more expensive than citizens. the law creates $1 billion reinsurance fund to put that in perspective, insurance losses from hurricane ian up to $65 billion. becky. >> contessa, i have talked to insurers over the years who basically said in florida they don't allow to charge enough money to write insurance with the profit you are there hoping a storm doesn't hit. if it does, you will lose your shirt and all of the business you written will not be profitable that is the problem when you have so much development right on the water like that people building in places where you know it will not be safe the state not allowing insurance companies to charge the proper amount for the risk/reward

return do we actually think insurance premiums will come down under this or is this a new reality that if you are going to live on the waterfront and build a hugely expensive home, you need to be prepared for hugely expensive insurance? >> i mean, that's a great point about how coastal development keeps happening. that is not the whole story. people who live away from water are paying outrageous premiums and not able to get insurance. part of it is the overall cost is driven up by the litigation it is such a litigious environment there and fraud and labor costs when you recover from a storm like ian. this is not retroactive. the lawsuits are still moving ahead. you have the inflation which is a hurdle and the reinsurance renewals are up in january

reinsurance, insurance for insurers, i hope i laid out a picture why it is difficult to operate in florida and insurers cannot get reasonable prices for reinsurance. the reinsurers don't want to take the risk in florida you've got this really complicated problem. it is not going to be fixed in 2023 this is the start. the insurance institute says it is the best reform they have seen in terms of insurance in florida. >> that is great you hope it sticks i think part of the problem when you are dealing with the complicated issue like this is state lawmakers want to be responsive to the citizens who are just mad their rates are going up they are looking for quick fixes. as you pointed out, something this p complicated will take yer to correct do they have the strength to

withstand the costs? >> the other thing is this is already killing real estate development deals. when you go in and the largest brokerage told me it is killing $100 million real estate developments you go in and look at the price of the insurance and trying to figure out the bottom line and you can't make a profit. the other question is will it k discourage business in florida when they see costs forrocketing >> this is important we have talked about this off air. it is increcredibly interesting thank you. >> sure. we will talk strategy for 2023 investors in the survey expect

s&p returns of 6% next year. what that could mean for the dogs of the dow for investment strategy. as we head to break, a look at the nasdaq winners and losers for the year three of the top five are energy companies. as for the losers? three of the top five are electric vehicle makers. including tesla. "squawk box" is coming right back >> announcer: executive edge is sponsored by at&t business at&t 5g is fast, reliable and secure

good morning welcome back to "squawk box. we're live from the nasdaq market site in times square. the last trading day for a horrible year in the markets worst since 2008 red arrows again after gains yesterday. dow indicated off over 100 points nasdaq down 46 s&p down by 14 let's get to frank holland and turn attention to investing in 2023.

31% of investors in the de delivering alpha s frank is here to talk about the dogs of the dow. >> dogs of the dow is the retail strategy here are the top five with verizon is the number one dividend at 6.8% the next five right now include ibm, cisco and big bank jpmorgan chase with the dif vidend over % today is focuses on the tech sector with verizon and cisco. all under performing we will look at fundamentals and technicals the top pick for 2023 for the

dog of the dow is verizon. making higher lows as you see here higher lows into the new year. verizon also getting all grade from morgan stanley for the recap generation and ramping up for 5g which is expecting to wind down. to the next dog, cisco strong holding for the new year. you see a trend here stock iss moving up the purple line you see here cisco entering 2023 with momentum shares up 18% in q4. next is intel. you see here which peaked in november and back down to lows from earlier in the year back in october. the company lowering the current quarter revenue guidance by $1 billion or 6% from the top end of the range this is a strategy nothing is foolproof back to you.

>> frank, thank you. >> works half the time. >> 25% of the time it works 75% of the time. >> bji don't know it is like take it or leave it >> people are looking for yields >> was there a period of time where the strategy did work routinely? >> i think there was a time where it was more foolproof. >> it started in 1991. we don't have a huge sample size think about the people we have on with the forecast predictions. it's hard to time the market to pick stocks. >> 50% of the time in other words, flip a coin. it is fun talking about who has come down. frank, it brought us to the discussions about whether there is enough air let out or if the fed policy will mean more pain if the technology stocks were starting at heightened levels

which was nowhere near fair ral y -- fair the value that is the question that has thrown off the dogs of the doug w with the strategy. the fed inflating to levels we have not seen before it raises a ton of questions it has been what we have been trying to get at for weeks or months at this point should the stocks have been there and how far will they fall these are questions we keep having no coincidence these are technology names across the board. >> i wanted to focus on the tech names. they have been hit by industry pressures and impacts. i wanted to focus on them. i cover two of them. great being with you in 2022 becky, i'm glad you are back yesterday, andrew was trying to get momentum for a tiktok dance. >> what did i miss >> we had a tiktok conversation.

frank was going to do a little jig for us he didn't want to do the dance >> it is not fun if i do it. should do a challenge and post it >> i want to see it. make a move. i'll do it if you do start us off, frank. >> me? >> andrew, show some leadership. >> come on, guys >> what's the thing? >> the dab >> the dab is old. it's old >> i'll see you in a half hour you can talk about it a little bit. last morning >> i'll do the floss >> i'll do the twist >> go on instagram cup it challenge it's like a beyonce dance. make a video it goes viral. everybody gets paid more it's a cycle >> frank holland >> happy new year. >> i'll see you. >> see you in a bit. when we come back, we will

talk about the fallout from the china surge in covid cases former ambassador to china gary locke will join us next on what it means for the economy "squawk box" will be right back. >> announcer: ring in the new year by bringing in cnbc pro invest like a pro in 2023 with a special year-end offer by going to cnbc.com/pronewyear or scan the code

welcome back. more countries are requiring more tests for travelers with china's reopening plans. will this wave lead to fallout and economic supply chain issues joining us with gary locke, the former ambassador to china ambassador locke, thank you for being here let's talk about the requirement from so many countries china is acting if they have no cases and flights are showing up in milan where half of the travelers are testing positive what's going on? >> thanks for having me, becky it is a smart move by countries around the world china is imposing restrictions on some travelers entering china given the surge of covid cases

after almost years of isolation and lockdowns where cities and neighborhoods have been precluded from going to the grocery store or work or doctors office or visiting folks, it is not surprising there is a huge surge in china in which it is basically a case of tight controls to no control almost a free-for-all. it is not unreasonable for countries, including the united states, to insist travelers coming into the countries with travelers who must be tested >> why is china not being more open with th faci facing we can clearly see they are lying about the cases they have. >> that is the common soucase w china for decades. the lack of transparency and the

first covid case unfolded and virus unfolded years ago lack of transparency and lack of consultation with health authorities. china has a great deal of pride. they want to say they contained it they are now loose ening up the controls we are seeing because of the lack of vaccination, they are not very effective and they are seeing this huge surge in cases. it is probably going to get worse over the next few weeks because of the lunar new year. it is a seven-to-ten day holiday. people will be traveling to reunite with family members and parents and children they will flood the airports and buses and railroad stations. it will be a huge surge of cases. it will take a while for things to return to normal. >> what does this mean in terms

of the global supply chains? we thought china reopening was going to lead to more demand and return to lifting of the problems with the supply chain if you get shutdown by covid, that has its own impact, too what do you think happens? >> i think the disruption to the supply chain worldwide emanating from china will continue for a few more months. like i said, starting in a few days, all of china will be on holiday for seven-to-ten days. mass traveling with the surge, that will lead to more infections companies large and small from merchants to manufacturers are on their own to how they respond to the surge there is no more government control. it will take a while for individual companies with the lack of guidance from the government on how they are going to proceed and obviously it means that many of the businesses will not be in full

operation up to par or up to speed and full strength for some time >> you were the ambassador to china when xi jinping came into power a decade ago, gary you had a front row seat seeing the arc of his reign what do you think about what's happened someone who started out with grand ambitions. obviously he has been there a long time and secured an extension of his reign there watching what's happened lately with covid and mismanagement of it and anger with the people what do you think? >> well, the people were angry at the policies of completely locking down whole cities or large sections of cities when you have a city of 20 million people and half the city is locked down or entire city is locked down and you cannot travel or go to the grocery

store or work, there is a lot of frustration. that was manifested in protests across china one thing that the communist party does not want ever to happen is another tiananmen squares. -- square. i think china has moved to communities and cities and provinces and individual businesses so, he has a firm, firm grip and people are very afraid of him. they follow whatever they think beijing wants. in some cases, the lockdown of entire cities were because of the lack of guidance and also doing what they felt beijing wanted them to do and now they're on their own. >> does it impact xi's grip on power in any way >> i don't think so. he was just reaffirmed for a third term unprecedented third term he basically is ruler for life they changed the constitution.

there are no more term limits. he very much wants to be remembered and go down in ch china's history as the modern mao. >> relationships with the united states quickly. what will it look like >> i think you will see reswarm of relations and diplomatic issues especially over climate we need each other china needs the united states. the united states needs china to work on such issues ofs of haltg the proliferation of nuclear weapons and trying to find cures for the dreaded diseases the world is demanding joint cooperation and partnerships with china and the united states given the frosty economic relations starting with the fallout over the tariffs imposed

by president trump and continuation of the tariffs by president biden, american consumers are feeling the impact of higher prices of everything they buy from costco to target to walmart and home depot and we don't see a relaxation of the tariffs any time soon. the united states and china must figure out a way in which they can manage these economic differences while respecting the political, geopolitical differences. >> ambassador locke, thank you >> thank you. coming up when we return, we talk about the great spac meltdown of 2022 as more blank check companies return cash after failing to find investment. you can get the best of "squawk box" on your favorite podcast app. you can listen any time. we're coming right back.

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welcome back to "squawk box. shares of microstrategy higher today after touching their lowest levels since 2020 yesterday. the stock is down roughly 15% for the week and down about 75% for the year i want to talk spacs 2022 comes to a close, so does the spac boom.

joining us right now with more on the flameout of the investment vehicle i know, i know, it's the last day of the year. spac-tacular how bad is it and what does '23 look like? >> 2021 was the year of the spac you had 150 spacs raising $130 billion and unfortunately it was just this chaotic effort to get all of these deals done in that process, there were a lot of companies that went public that really had no business being public. i mean, you had companies with basically a powerpoint pitch and a dream getting listed on the public market. and unfortunately that dream has turned into kind of a nightmare for investors. you have a lot of high-profile spacs that after getting that

deal done, it dropped 90% in some cases even deals that seem to be promising, draftkings, those have not faired well that's why we're seeing in december alone, we've had 70 spacs liquidated and i think people realize, it's to give people their money back rather than trying to ram through a deal the spac king himself recognized you know what, the last couple spacs i'm doing, don't make a lot of sense i'm going to give people their money back there are a couple things that precipitated that change this year alone the macro environment has changed tremendously stocks are going down, interest rates are going up that's not a great combination for a company to go public -- >> how much money have people lost doing this? people who invested in the spac typically are supposed to get their money back basically at par. i'm talking about the sponsors those are the ones who were supposed to be at risk in all of this. >> yeah, well, you know, i saw a

figure that those sponsors have lost about a billion dollars this month alone i think -- maybe it was 600 million and maybe a billion this year so it was not a good -- >> is that billion dollars, is that all the legal fees that they ended up having to pay out as a result -- >> according to "the wall street journal," that seems to be -- yeah, that seems to be -- what is reflected in that number. a couple other things, though, why we're seeing this crunch at the end of the year is that the inflation reduction act has implemented a 1% tax on share buybacks a lot of tax experts think if a spac is liquidated, there may be sort of that 1% tax that applying i think a lot of people are having to look at themselves in the mirror, be realistic about whether or not they can get a deal done. if not, give people their money back now instead of waiting a couple weeks and paying really an unnecessary tax there's still about 400 spacs

out there looking for a deal, just kind of milling around -- >> that's what i was going to ask. two questions, one about the spacs that are still, quote, open for business, if you will, what happens to them, and, two, do we think there will be a return to spacs? do you think anyone can bring a new spac to market >> to answer the first question, yeah, i think there were so many deals in the pipeline. we're seeing sort of some deals just from the past few months that i don't think anybody now is really going to try and get into that space. these legacy deals typically have two years to find a target. you really have two options, either you liquidate, give people their money back, which seems to be the best option in a lot of cases because a lot of the companies that were going public were high growth, oftentimes riskier companies that don't fair well in this sort of environment. and the other option is you keep just putting money in and that's what we've seen notably with the

spac that sponsor has put in millions he hasn't been able to get the deal through because of an s.e.c. issue with him being probed but they're obviously optimistic that they can eventually down the road get something done. those are the two options. liquidate or keep putting money in and hopefully you get it together that latter option is expensive and for sponsors who have already lost close to a billion dollar-plus dollars, putting more money is not a good idea. >> any chance the spacs come back in any way in the future? they have lived -- spacs did exist before 2020 and 2021 but the question is, is there some new formulation that will come back in a different way >> yeah, i think there's been spac booms and busts before, obviously, this was a boom like we've never seen before. and i think it did -- it's a useful vehicle for companies to go public. it's cheaper it's simpler

one piece, of course, is that this year during the spac boom, gary gensler made it his mission to make it as difficult as possible to take a company public that, i think, has removed some of the incentive to use spac as a vehicle for taking companies public but i think it still will be a useful vehiclein the future. just not to the extent we saw i think in the short term. you're seeing a lot of sponsors back up their toys and go home but i think it did take some companies public, but just right now in this moment, it seems like any company that went public through a spac is painted with a scarlet letter because so many companies that should not have gone public did every company is being lumped into that. >> lydia, happy new year it's great to see you. >> great to see you. >> thank you when we come back, we're going to show you the stocks to watch on the final trading day of the year. morning movers are up next later, our annual visit in

the wall street mentalist, always astounding, oz pearlman here. you don't want to miss it. "squawk box" will be right back. what's up, peyton? good morning, peyton. hold for peyton. they'd huddle.... welcome to the peytonverse. such a visionary. game plan... you go. no, you go! and call audibles... double our investment in omaha! omaha! omaha! omaha! or you could use workday. omaha. the finance, hr and planning system used by over half of the fortune 500. for a be-agile-like-an-mvp world. workday. for a changing world.

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it is the final countdown, just one trading day left in 2022 good riddance at this point. meantime, is southwest finally waking up from its holiday nightmare? the carrier says it expects to operate fairly normally today and cancellations are way down and an end of the year special treat. we will be joined by oz pearlman, the wall street mentalist. stay tuned for something truly mind-blowing as the second hour of "squawk box" begins right now. ♪

good morning welcome back to "squawk box" here on cnbc we're live from the nasdaq market site in times square which is getting ready for the big evening tomorrow night today, things are a little quiet. but you are starting to see the roadblocks go up and things get ready for new year's eve here. i'm becky quick along with andrew ross sorkin joe is off today let's take a look at the u.s. equity futures the dow futures off by 106 points of course, there were big gains yesterday across all three of the major averages this morning, the nasdaq is indicated off by 50 points the s&p is down by 15. and a measure of just how tough this year has been for equity traders, the dow and the s&p 500 are each negative for every quarter of the year so far they're currently up for the fourth quarter, but all of the major indices are negative for 2022 overall and on pace to break a three-year winning streak also post their worst years that we've seen since 2008. the nasdaq is on pace to be negative all four quarters of this year

down by 33% for the year treasury market, we have seen treasury yields continue to build. the ten year is yielding 3.854%. and wti crude holding on to a 4% gain for the year. check it out right now it's down by 10 cents. $78.32 is the last tick. but the s&p energy sector is the only positive sector for the year it is up by close to 60% as the big oil companies have seen better profits than they've seen recently we want to get back over to frank holland. what are you watching this morning? >> we got to talk about southwest airlines those shares are down again after warning that travel chaos we've seen in recent days will certainly negatively impact its next earnings. you can see shares are down here for the week down about 7.5%. of course, the airline canceled thousands of flights due to a strong winter storm. cfra has a strong by for the

stock. mesa airlines down this morning. you can see up for the week after reporting a bigger profit loss than expected during its earnings yesterday we are also watching chinese tech, we're looking at li auto you can see shares are off fractionally this morning. a chance to look at chinese tech in general a bit of a roller coaster ride you can see pinduoduo down the hardest, down 3.5%. we could be seeing the last big deal of 2022 canadian telecom rogers communication buying shaw communications for $26 billion you see shaw communication shares up 10%. rogers not moving now. this deal got pushback from canada's competition watchdog but will go through. shares of shaw up more than 10%. and a quick check on crypto. this is since andrew's interview

with sbf you can see bitcoin outperforming the s&p during that time. of course, maybe some guilt by association here. >> wow thank you. we'll see you a little bit later. the outlooks for stocks, bonds and the economy next year are tied closely to the outlook for the federal reserve. steve liesman joins us with a preview of jay powell and the fed come 2023. what do you think, steve >> becky, it's going to be a year of hiking and then holding while the fed cuts its balance sheet deeply with the questions of when and how much rates rise and hold, a matter of strong debate, the only certainty is the fed going to be a source of ongoing volatility in these markets. the markets so far has priced the fed to hit its peak rate in june but gradually easing back

towards 4.60 in february and march, it was upwards of 60% probability the fed does 25 basis points at each meeting. it would bring the funds rate to 4.88 here's where the disagreement begins follow me on this. the market trades with a 9% chance of a 25 basis point cut in may 33% chance of no change, and a 38% chance of a 25-basis point hike and a 10% chance of a 50 basis point hike that pricing reflects a broad set of views out there among forest forecasters for 2023 on growth goldman sachs writing, we're skeptical they will cut the funds rate until the economy is threatening to enter recession and we do not expect that to happen this year but mfug writing, by mid to late summer, fear of an economic downturn triggers a shift in

monetary policy. what's least likely to be the subject of debate, the feds plan to bring down the balance sheet. plans to bring it down by another 1.1 trillion next year to around 7 1/2 trillion i think that process is going to have more impact as the year goes by. it's a reason in my mind for the fed good slower and stop hiking maybe just a bit sooner. becky? >> steve, we were having a conversation last night just around how tight the labor market still is. i have a daughter who is working in a retail store. she was one of three people in this huge store there for the entire day two of them were just summer workers who came back in over the holidays it was a lot to try to get through. we have a car that we can't get back from the shop because they don't have any mechanics the labor market is still incredibly tight i don't know how much of that is an issue because of the holidays and people on vacation i don't know how much of that is

an issue because of covid or other illnesses. there's so many things that are going around right now or how much of that is just this incredibly tight labor market. as long as that exists, those -- that persist that economic situation of this type labor market, i don't know how you're going to be able to conquer inflation or get to the point where the fed feels like it can cut rates again. not that higher rates fix labor shortages, that's, again, the blunt instruments that the fed is dealing with. but it's just a persistent situation where so many businesses and so many industries can't find enough workers. >> that is definitely the jay powell attitude that he's had out there which is that you cannot think about having vanquished inflation until you get demand in the economy e kwifk -- equal with the amount of supply

out there. that's why he wants to slow the economy and bring it back in all of the things that you said that are the reasons for this are true there's certainly a holiday element to it. there's a lingering pandemic element to it. but i think i would get ready for a long-term issue here with the u.s. labor market. if we're not going to solve the immigration problem, not going to figure out a way to keep retirees from leaving the job market early and not figure out a way to give birth to 25-year-old people who are ready to come into the workforce, i think there's going to be an issue. i think that, you know, a person like myself who is the last year of the baby boom, i'll probably have a job for the rest of my life, but never be able to retire so i think that's really the story because of what happens with stocks here so i think that's an interesting issue that's out there and i think one thing we can start to think about, it's another story i'm working on down the road is, if we do have this permanent labor problem, what does that mean for growth?

and i think what that means is, we can think about a permanently lower growth rate or growth potential in this country if we do not have the workers, essentially, over time to fuel that growth. >> that is a lot to think about. steve, cheers. >> you got a whole new year to do it. >> good. we'll have you dig into these stories again and again. this is a constant theme we'll be discussing. >> becky, before we go, it's been a pleasure to spend the year with you, andrew, joe and i want to say a hearty and tearful good-bye to tom and of course peter >> four of our best are going to be leaving, some as early as today. others in the new year four people who we rely on on a regular basis and we will talk

more about these four. but they are people who are the best -- >> long timers. >> who have kept us on our toes and i honestly don't know what we'd do without them. >> good friends and vital -- good friends and vital colleagues that have allowed us to do the work we do at the level we do it at. >> i agree steve, thank you that's very well said. happy new year we're going to talk a lot more about this later, though, too. thank you. let's get back to the broader markets. some new data today from our delivering alpha investor survey which brings together the market intention of the nation's leading institutional investors. 73% of respondents say their biggest market concern right now is fed policy. that's followed by a potential chinese invasion of taiwan and labor and supply line problems nobody seemed concerned about a european energy shortage which is interesting for more on the markets, let's bring in kevin simpson

he's the founder and chief investment officer at capital wealth planning. so many people are glad to be saying good-bye to 2022, especially if you've been an investor this year you're a little concerned that it's not going so easy to say good-bye to this bear market just because we're turning the calendar page. >> unfortunately, becky, i wish we could turn the page and say good-bye to the bear market. i can't give a thesis in which we're going to be able to do that i'm not confident that the bottoms are in i don't think volatility is going to disappear and i think the setup for 2023 is very similar to what we had to endure in 2022. the economy is slowing a little bit. inflation is coming down it's just not coming down fast enough and as you were just talking about with steve, the labor market is just stubbornly strong and the fed is going to continue to raise rates and none of those things create a good recipe for stocks to move higher.

as much as how we're thinking about the year, we need to think a little bit more time thinking about how we position for 2023 >> and how would you do that is this a situation where the same themes that we saw last year continue, things like energy, things like value? >> yeah, i think it has to be, your point is spot on. we manage an etf and we're hovering right around a break even it doesn't look like the futures are cooperating today. but it's a value trade we tend to look at value over growth and value grossly massively outperformed growth this year. i would expect that trend to continue next year now it doesn't mean i'm antigrowth we own microsoft we own visa, some apple. but it's easy to own growth stocks when you have a zero interest rates environment clearly we don't have that anymore. you need three things to happen, you need a strong economy, low interest rates, and you need

geopolitical tranquility as we enter 2023, becky, we have high rates, a slowing economy, and we certainly don't have a tranquil global macro environment. so i think the trades from 2022 and that value theme continues into 2023 for sure >> devo is the name? like divo. >> breaking even is great for 2022. >> breaking even would be something a lot of people would sign on the dotted line for right now. let's talk a little bit about momentum and some of the -- you know, the momentum stocks, some of the technology stocks you're not staying away from all of them, though, right >> well, you know, no one likes buying the dips more than me but i think for the next few months, we're going to have opportunities where you want to be frugal doing that i mention today you microsoft,

apple, visa. they're names that we own. but our whole thesis is predicated on companies that generate cash flow and distribute it to shareholders. we don't look at the faang names. we look for dividend companies think of the conversation you had with frank earlier on the dogs of the dow. that strategy, it worked, right? >> right and you like that strategy, would you buy into it for next year >> well, i don't really subscribe to my type of passive investing, but we did have five of the names in last year's list and we have five names in the 2023 list. so, you know, to andrew's point earlier, some of these stocks have flees, but it's a great place to look for opportunities. jessie pound has an article today that has the list in its entirely but straight up, we own five of those names heading into 2023 and we do like that value theme for the foreseeable future >> so whip it, whip it real good now you got that song stuck in my head. >> there's your tiktok.

>> there you go. >> there it is. >> thank you for the time. it's great to see you. coming up, ftx sam bankman-fried expected in court early next week. what can we expect from prosecutors as that case moves forward? we're going to talk about it a reminder to tune into a cnbc special tonight, taking stock. it's about what is ahead for the u.s. economy in '23. stay tuned, "squawk box" returns after this

coming up, the wall street mentalist oz pearlman himself is here and ready to below your minds. stay tuned, you're watching "squawk box" and this is cnbc. >> announcer: time now for today's aflac trivia question. where in the world is the first to ring in the new year? the sw wanerhen cnbc "squawk box" continues what do you... got there? a hospital bill for me? mm-hmm. for $1,200? ga-a-a-ap! did you say "gap"? yeah, he did. he's talking about expenses that health insurance doesn't cover. ga-a-a-ap! uh-uh. aflac! that's why there's aflac. it pays you money to help close that gap. aflac, huh? don't tell me he high stepping. af-lac, af-lac! he stole my move! get help with expenses health insurance doesn't cover at... aflac! ...dot com.

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>> announcer: now the answer to today's aflac trivia question. where in the world is first to ring in the new year the answer, oceania's small pacific island nation of kiribati welcome back to "squawk box. it is that time of year, it has turned into a "squawk box" tradition. i'm thrilled about it. the wall street mentalist is here this is my favorite thing every year oz pearlman, wall streeter turned market mind reader is in the house to blow our minds. >> let's do this what a tradition

happy new year. >> happy new year. >> in person. >> in person. >> the last time -- we did this remotely for a period of time. >> you tested my knowledge can you read minds through a camera. >> and you did. >> let's do it. >> i'm here as a skeptic >> i'm a skeptic too i love it when it works. >> here's what i do, as i go across the deck, i want you to stop me. >> stop. i'm going to take -- i try to do a laser pointer down if i turn this card over, your viewers don't care they're here for financial marketing reporting and they don't want a common thing. what's been in the news nonstop? give me a stock that's been in the news nonstop. >> tesla. >> we want to hear about tesla, but we want stuff that's in depth. i want you to close your eyes and see yourself making a list for 2023 i don't know if it's the best of, the worst of, the things

that's going to be in the news a stock that you can visualize in 2023, can you picture that stock right now? don't say it just think of it can you see it again, whenever you want -- >> stop. >> where >> now i want to make sure. were you imagining this card right here that i'm touching or the one to the left or right you said you're a skeptic. >> no, the other one. >> this direction? >> yeah. >> are you sure? >> yeah. >> you could have named any stock that's been in the news. you named tesla and you stopped me right at tesla. expect, expect -- >> what if they all say tesla >> what if every single card in here says tesla? becky, i love the way you think. but what was your stock? say it. >> it's an ev space and we just

did a segment on spacs, i was thinking of lucid. >> you were thinking of lucid, i was thinking of lucid too, andrew >> people hear about financial markets. monetary policy is key to that andrew is about to faint did you know that only 8% of money exists as real, as actual cash 92% of money is ones and zeros on a computer screen there's a four-digit number between our money. and your four-digit atm code your atm pin code, did you make it up yourself or did the bank give it to you >> i think they made it up >> make up a fake code right now. i want you to be spontaneous make up a random four-digit

code don't write anything make it up right this second that pops -- don't do one, two, three, four, say it. look at me, say it not your real bank pin code. >> 3031. >> 3031? >> yeah. >> i want you to understand that you felt pressured i made you do this quickly on purpose and you made that up right this second, right this is not set up what you did is i mention a bank pin code you tried to avoid that. human mind, psychologist, you would have never used the same first number her real bank pin code does not start with a three, am i right what i think you try to do is avoid all the numbers, but you failed at one. one of these numbers i bet is in your real bank pin code. i bet the three you undershot. i think the first number of your bank pin code, based on this is actually a five. am i right >> yes i'm not telling you the rest. >> you don't want the viewers to

know >> i don't know how you did that. >> i hope not. hear me out, you don't want anyone else to know at home, because i can just show you. i think you undershot it i think that might have been there. i'm going to -- you did the same on both threes i crossed this out i'm going to pass this just to you, becky you don't have to show anybody else how did i do >> are you kidding me? i have never believed anything you've done until now. >> she's hiding it change it at this point. if i know, it's worse than them knowing. quick shout-out -- >> how did you know that how could you possibly do that >> folks, if you have not read andrew ross sorkin's too big to fail -- >> my husband doesn't know my pin number. >> change it. >> you wrote this book in what

year 2010 >> i wrote it in -- it came out in 2009 and i think the paper back came out in 2010 or 2011. >> this is why i'm fascinated. i'm writing my own book. let me ask you, do you remember writing this book or is it kind of like a whirlwind. >> whirlwind. >> let's test his knowledge. >> how did you do this >> i want to test him on his own book. >> okay. i'm still -- >> you're flummoxed. in the center, we have photos. it doesn't matter which one. let's test him on a page yell out stop. >> stop. >> what do we got? can you tell us what page did you stop me on what was it? >> i can't read that 153. you tell me. can we see it on camera -- >> it's really small print

he wrote it. do you remember what was on page 153. >> i have no idea. >> let's get rid of this stuff i want you to imagine, i always think about this in the movies where they show you, you have this writers block moment. i don't know what to do right here and i want you to see this and i want you to close your eyes. you're going to have to take my word on this i want you to imagine yourself typing on the keyboard >> i was on a laptop, back then it was a -- >> we have to go fast. you get to this one word and it's the perfect word for this place. close your eyes and see that word in neon lights in front of you. can you see it right there behind your eyelids. >> not really -- i'm trying it shall. >> here's what i learned from your book. it takes money to make money. >> yeah. >> we can talk about small change i got a quarter. i got a dollar takes money to make money. leverage is what got us into that mess. if i put this quarter -- how do i describe this. kind of inside of the dollar

becky, you're going to like this we fold this up, my money combined, okay, here we go what i want to do here is you need that ignition, that in a moment when the creativity hits. i want to put this right on top is the best way to describe it nice in tight. that spark hits you. can we see this. i want you to see it close. >> he's burning your book. >> wow >> andrew, if you can come over -- if you can see that we've defaced your book. can you tell us, what has happened here? >> there's a whole in the whole thing. the coin has gone down. >> can you see this? >> 153. >> what page did you pick?

>> 153 feel this, is this hot what page did this stop on 153. >> and tell us all what was the word that you were picturing say it, what is it >> underscore. lift up that quarter yourself. i don't want to touch anything >> lift up the quarter i have no idea if it's in the book look right -- can you tell them what word -- i'm going to flip this up. >> enough, enough. get this man out of here this is black magic. this is back magic >> the word is underscore right there. >> not planned this is black magic what you're doing. i don't know what this is -- >> i want you out of here. you know my bank number. >> you need to year to recover from this segment. >> i don't understand. >> give me that lighter. >> feel how hot this thing still

is. >> i can't even fathom what's going on here. >> wow >> that's -- i need your lighter. burn it, becky thanks, gang. >> you're going to start a fire. better than you having my pin code >> he's got some kind of special paper or something how did you do that. >> you're autographing this book for me, andrew too big to fail. >> that's insane. >> thanks. love it. thank you so much. always a pleasure. >> i don't know how you did that >> i can't -- i can't even believe it >> change my pin we'll be right back. >> happy new year. >> happy new year. >> thank you

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♪ welcome back to "squawk. with covid spreading quickly in china, but official numbers thin, they're reporting that the u.s. cdc is considering sampling waste water from air traffic here to talk about what it means, dr. kavita patel. she served on the obama administration how concerned do you think we should be and what do you think is right answer is in terms of

how the cdc should be approaching this >> i'm incredibly concerned not about what is happening in terms of china, it's something that we should be empathetic towards but we have our own problem domestically we're seeing a new variant emerging from the northeast. first in new york. and that's significantly evading immunity and demonstrating that it can outperform the other variants that are domestic right now. waste water sampling on airlines makes a lot of sense especially with travelers surveillance is volu voluntary. pretesting, it sounds like it will make you safer and some people comment, that's great that we're doing that. first of all, that testing doesn't start until january 5th and number two, testing in the

past 48 hours and really, what that does is maybe hold off a small percentage of infections, but the truth is that exponential growth will happen domestically with our own variants here. >> so your expectation going into this winter, walking into january, is what what's it going to look like around the country >> right if we see this proliferation of what we're seeing in the northeast, which we fully expect to there's no reason to think that we don't see a fitter variant around the country, as we walk into january, we will likely continue to see hospitalizations in the over 70 age population, which is what we're seeing in new york, a sharp increase in that population's hospitalization group, especially because only about in in three of those people are vaccinated with an updated booster, we will see those hospitalizations continue to grow as a result deaths will continue to increase. it will not be as severe as previous surges where me saw hospitalizations in younger age groups and that's likely because

we do have some of that immunity that's holding from either vaccines, updated boosters, or infection-induced immunity. >> you said one in three will have not been vaccinated or one in three will -- >> one in three have been boosted. >> so what does that say to those about getting boosted, though >> yeah, so this is -- it's hard to kind of pound this even further. but getting boosted matters. we now have multiple real-world studies. we don't need lab hypotheticals which is what we rested on before we have real world evidence that demonstrates that an updated variant, even in light of some of these variants that are new to the united states and new to the world, that we would be able to have better antibody performance with an updated booster, plain and simple. there's no question anymore and i think that the world is fatigue of hearing this, but as you see the numbers going up, there's a reason -- >> one of the things that you hear from some people, i've heard folks old and young say

i'm not going to get boosted if i get it, i'll get paxlovid. >> right i will say that i've had a number of patients who have thought that myself and they either have not been able to get the paxlovid in time, so we do recommend that that gets started in the initial some days of the infection, and, number two, andrew, a lot of people are not counting on whether they have normal kidney function, a lot of medications that some doctors are overinterpreting the contraindications, you can't get it if you're on certain medications. there's an art to this, and doing that during the holiday season when most people are traveling, why is that a chance anybody wants to take? it's not worth it. >> when you think about the variants that are coming out of china and elsewhere relative to the variants here, more contagious more dangerous less dangerous long term, what does this look like >> yeah, the long term is that this virus isn't done with us.

if we continue to be complacent in 2023, that in the long term this will come back to bite us it may be sooner than 2023, but it could as soon as 2023 in terms of what's happening in china, a way to think about this, that is a population that is naive that is just an incredible wonderful petri dish for any virus. the virus doesn't need to get fitter or smarter to perform well in a population like china. the united states is the kind of environment where you'll see more of these immune-evading var variants developing. it speaks to i think what you pointed out earlier, the cdc, better waste water surveillance and doing this on a global scale. we can't keep doing this in a patc patchwork fashion. >> have you changed your life or lifestyle? i think most people have pretty much gone back to the old. i mean, i wear a mask on the subways still.

i wear sometimes in an uber or taxi i'll go to a restaurant, be inside with people, and i think a lot of people have gone back to that. but when you get into these moments or periods of time where you feel like there's a surge, are you changing your behavior are you canceling dinner with people what are you doing >> i'm modifying my behavior i'm like you, probably, andrew i keep my mask in -- it's a high quality. n-95 with me at all times. it's in my bag, in my pocket if i go into a situation where i'm in any kind of -- not even close spaces, just indoors, i put that on as almost a reflex i traveled with my family to florida. you can imagine, i was probably one -- my family was the only masked people on a plane when we landed i think we literally were the only people wearing masks. what i did, though, i did advance testing so the modifications i made, i made sure we tested before we left, tested for several days, when we arrived and had my family do

that. >> you're serious about this my wife, she looks at me because i put the mask on, she goes, you think you're that important. you're the only person in here you think you're that important. what's wrong with you? this is like the debate. and everybody is having it >> yeah, well, first of all, number one, andrew, i bet that you've just like i have, i have managed to not -- i have not been able to keep -- i have not gotten covid, rsv, or the flu. there you go i will just say that i know it's my behaviors that have supported it i'm around sick people coughing in my face all the time. my precautions have worked doing this with my family has worked is it foolproof? my husband got covid from a conference of doctors. it's possible. >> i've changed my behavior -- >> yeah. masks and handwashing, handwashing has always been part of my behavior

carrying that mask will always be part of what i do. >> one last one. because my kids go to school every day and they have to -- they don't wear masks at school. it's the way it is i work here on a set no masks i sometimes will wear one in the hallway if there's a million people in there. but -- and then this is the conversation i have with my wife, what are you doing putting the mask on? if the kids come home -- >> if the kids get it, you're going to get it anyway. >> they play sports and -- >> not necessarily true. we know that this turnaround, especially with all of the variants we're seeing, symptoms, even though you can get positives before symptoms and be, you know, kind of a silent carrier, if you will, you know that if your children have a case at school, especially with some regular surveillance and making sure kids don't come to school sick, then you can try to do what you can. i put a mask on my children when i know that there are other kids that are sick at school. they don't wear one every day. with this recent rsv surge, they've been wearing one.

>> i'm going to have you come to my house to talk to my kids about that. >> they were masked for a long time one more question, would you go to an international gathering with people from all over the place in two weeks in davos. >> asking for a friend. >> i just canceled a number of conferences internationally in the next two months for that exact reason not because i think that somebody bad is coming from some other country, i don't want to risk the exposure. i also don't want to get sick while i'm globally away and have a chance of not being able to come back domestically it's not worth it. >> that is the worst. >> a message for -- >> i'm going to be very popular with all the conference -- coming up -- happy new year. stay healthy. when we come back, a lot more on "squawk box" ahead the first time your sales reached 100k was also the first time you hit this note... ( screams in joy) save 20% with the lowest transaction fees and keep more of what you make. with a partner that always puts you first.

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coming up, what should we expect in the next case against sam bankman-fried? well, we're going to speak live with a former federal prosecutor when "squawk box" comes right back. lock in your membership now. joining jim cramer and the cnbc investing club with the special year-end discount. go to cnbc.com/clubnewyear

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welcome back, everybody. right now, we want to get to the latest on the collapse of ftx. ceo sam bankman-fried is expected to enter a plea early next week. two close associates have already pleaded guilty to federal charges.

we want to know what that means for sam bankman-fried himself. what is happening and how are things stacking up against sam bankman-fried when they already have two people who worked for him pled guilty. >> i expect that the proceedings next week will be pretty routine, i wouldn't expect a lot of fireworks there, just mr. bankman-fried's arraignment and it will be setting the schedule primarily, we may hear something -- we should hear something about the government proof and what type of discovery it has so that judge kaplan, the presiding judge will able to set

schedule for motion and ultimately for trial i don't think much will come out of the hearing or conference next week, but negotiations we can expect are going on behind the scenes we know they began when sbf was in the bahamas in connection with his extradition and whether or not he waived ultimately he made the gambit to do so, so there are discussions going on so his legal team is assessing right now what the prospects are and whether or not to take a quick plea a risky move but what his lawyers are thinking through right now. >> i'm still a little surprised he was given bail here when the bahamas was so adamantly denied it was this is a ploy

>> exactly right that's pretty standard often the country that aprehends the defendant will hold that defendant and view him or her as a flight risk, in this case the negotiations between sbf's lawyers and the government here was, okay, we'll waive a lengthy extradition proceedings in exchange you the government agree to a bail package here the largest ever granted, and allow him to remain free relatively free pending trial, otherwise i'm certain that he would not have been granted bail before the judge when he appeared for his initial appearance >> you think that this is something that lasts, though, how long does this kind of play out and what would you be thinking in the mind of the prosecutor what you do next. >> it's highly variably, the

prosecutors i think are in a good position they already have the quick, lightning quick pleas of the top two, they have no doubt other would-be cooperating witnesses lining up at the door, they were invited to do by the u.s. attorney williams and they are and they have a mountain of paper evidence and in fact admission by the defendant himself, so they're not going to be in any particular rush and they're not going to be particularly welcoming of any sweetheart plea deal so the defendant and his team are going to have to decide, does he take a quick plea, which is known as an open plea, no doubt which means it would not be pursuant to any kind of agreement and take a chance in front of this judge that hasn't worked particularly well in the past in front of judge kaplan

and many other judges, we know what happened with bernie mad madoff given what they already appear to have, you know, they're only going to be digging in deeper they say they're really looking under every stone here, and there's going to be a lot more there, to hear them tell it, that might not be his best move, either, so he's in a tough position here. >> he is thank you for your time. we'll have your back we appreciate it >> thank you. right now, a moment to recognize someone who has been a part of the cnbc family and the squawk team for more than years i can remember and i can't imagine cnbc without us. our breaking news -- >> there he is

>> he's hanging up the head set. he's off to retirement >> over his 27 years his network, he said our butts on a daily basis. peter, i have to tell you, i'm so excited for you and for your wife and for the adventures that you're going to be off on and i'm devastated for us. i don't know we're going to get through day-to-day >> i met peter when i was in college. >> really? >> 1997. both of our professors at cornell, i met him he was at bloomberg. remember that, peter >> yes, i do remember that. >> i'll never forget it. thank you for everything

>> you guys are a pleasure to work for and i'll miss you so much time to see what sleeping past 3:00 a.m. is like. >> how do i do this again, because all the things i ask him in the morning he's now having to teach me after years and years of doing this. you know, peter's not only a great colleague he's great friend peter we're so happy for you but again, i don't know we're going to do this without you you're the best. >> i'm sure you'll be fine and i did leave my contact information if there are any problems. >> we need a bat phone that we can directly connect to you. he does squawk box and works here all through the morning and into the afternoon doing breaking news with things. i remember when we kind of stole you for "squawk box" because we just needed you generously

jumped in and have been with us for so many years. peter, we can't thank you enough, you're an amazing professional and an amazing guy. and we love you. >> thank you so much, guys, i love you guys, love working for you, and this is the fun part of the day when i get to be in here with you and make a small contribution to what you do every day. >> it's a large contribution. >> thank you, peter. >> appreciate it peter, thank you "squawk box" will be back with our final hour of the year. ? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme.

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good morning and welcome to the final trading day of the year, we're now just 90 minutes away from final opening bell of 2022, stock futures pointing to a lower open right now. and southwest airlines planning to resume a normal schedule today after scrapping 2,000 flights per day since christmas. the potential impact on the company's bottom line. plus, gas price relief after new highs over the summer, where prices are headed in 2023, the final hour of "squawk box" begins right now

good morning long back to "squawk box." this is cnbc we're live from the nasdaq marketsite in times square joe is off today we want to start like we always do on this last trading day of the year, if you're checking things out par for the course for what we've seen for this year, good riddance to 2022. s&p futures down by about 26 it matches up with what we've seen all year. snapshot of the markets the year to date. s&p is down by 19.2% at least it's not 20%. it's not a bear market officially the nasdaq is down 23%

10-year is yielding 8.62%. let's talk about travel, it's been in the news the last week and half. southwest airlines saying it expects to operate a normal schedule starting today. it cancelled 39 flights as of tomorrow, good news on relative basis, down from about 2300 yesterday. the company's ceo said it has all hands on deck. the executive said yesterday the holiday meltdown would hit its fourth quarter results and several weeks to work through reimbursement requests also, a story, pete beauty butt buttigieg, there's like this intramural battle among government officials about who's

holding who accountable. >> but i think there's a question weather was a serious issue for all of these airlines and for so many other places, you look at buffalo, new york, and the problems there but why was so southwest so much more impacted than other places? people say it's point to point system but the airline itself has admitted they had to go back to manual working out of these schedules because their software was completely inaid kuwait. they haven't spent enough money over the years again the stock price, dropped its price target down to he $2 from $47 but these are the questions that will be asked, how big will the fines be? reputational damage that will last more than a few weeks

then how much it's going to cost them to pay off the fines, rebuild the software, make good with their employee unions who have rightful causes for complaint. as china drops travel restrictions the united states cdc is considering sampling wastewater to track any new emerging variants. tracking the wastewater would offer a better solution to track the virus and to try to slow its entry into the united states than this new requirement for mandatory tests for arrivals from china >> cities have tried to do it. >> who wants that job? >> that's true >> meanwhile, time trading day of the year, want to get to mike santolo for what investors

should be watching today mike, happy new year. >> coming off a pretty strong day yesterday which has been rare, we had about 95% of all stocks higher on the day, lot of the most beaten up names for the year were the leaders, a reflex bounce of the mechanical selling of the losers has eased up no use of the traditional season al second half of december still higher than we were on december 22nd, when the really official santa claus rally period started the story here is, above the low, halfway between the late summer's highs and where we hit in october, we finally did get good inflation data that's keeping us supported take a look here at stocks versus bonds, the dominant theme

of 2022 which is the loss in bonds basically on a price basis because yields went up and you see that they kind of tracked one another, the price level of basically the total u.s. bond market and they detached once in a while, you see right here bonds have stabilize to some degree over the last couple of months, yields meaning they're below their highs for a year, mostly because of the very low growth stocks, kind of bit a stair step, for now this is what we have. take a look at energy, cut two ways, the crude oil relative to the xle energy stock sector, two-year chart, they tracked really well until a few months ago when there was outperformance by the equities over crude oil worth noting over a five-year basis they're much more intuned.

natural gas prices were strong, they're not anymore. it's worth watching this divergence oil prices are high enough, staying above that $60, $70 level. worth keeping an eye on to see if there's any kind of disagreement between equity investors and what the commodities are telling us >> mike santoli with advice. happy new year, mike. there's some more fallout from the collapse of ftx, authorities revealing they took control of $3.5 billion worth of digital assets that ftx markets shortly after it filed for chapter 11 bankruptcy in november, they did so based on information provided by founder sam bankman-fried and concerns

he raised about potential cybersecurity attacks against the exchange they're suing cryptogemini offered customers up to 7.4% interest rate. partner genesis global is a crypto lender. genesis was unable to return crypto assets that it returned effectively wiping out anyone who still had holdings in that program. failed to register those assets as securities in accordance with law. coming up, we'll talk to arkansas governor hutchinson, to ban tiktok from government's devices.

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welcome back to "squawk box" sorry we're having too much fun. final day of the trading year. i'm trying to do magic for becky and failing quite miserably. we have the goff arkansas is joining the growing list of states banning the controversial app tiktok joining us right now is asa hutchinson outgoing on governor of arkansas we've been doing magic trick alt the table all morning, the disappearing imamagic of tiktok. >> i made that decision in reference to tiktok on our state platform to make sure that the data of our citizens is not

compromised, that we can protect our platform, we have intelligence information from the fbi, other intelligence agencies concerned about tiktok and its security, and really illustrates the challenge that when you have a centralized controlled government that can step in in china and direct businesses or seize data, then that compromises the security of a platform like tiktok and so absolutely, we wanted it off of our state network, we wanted to make sure it was secure, private citizens' decisions are different. but that's a government's decision we made. >> what the information you saw that led you to that >> the data is stored and even if it's stored in a cloud and they have security arrangements around that it's the fact that china as they have done in other instances they could interfere in a business and say we want

that data, obviously we don't want the communist chinese government to have access to the state data, the platform and have it compromised through an application like tiktok and so that's the basis for the decision, and we understand that the risk is minimal and i don't expect our state employees to be utilizing tiktok on a regular basis, but the fact is, it was an important step to take that to make sure that we're not compromising the state data and its security. >> that leads to the next question, state works and the broader citizens of arkansas and the rest of the u.s., what do you think should happen to tiktok >> well, i think you have to be careful, first of all, any time a government would ban or take restrictive actions against a business you better make sure you're clear on this and the

intelligence requires that and so i think it's appropriate for the intelligence community to warn citizens about concerns over security, i think we need to continue to look at this, i know that tiktok will want to satisfy the security concerns of the united states, so let's see where that develops. but if i were a parent i wouldn't want my children on tiktok i am a parent, but they're grown, legitimate concerns about what's going to happen to that data, if there are dance moves and things are harmless that's one thing but you got to be careful about the potential for access to data in a greater extent that's the concern for the future. >> i want to pivot the conversation to inflation, the scrooge of 2022, the question in my mind, is it the scrooge of '23? how do you think about the responsibility, i know there's been a big blame game going on

in government for it, but the relative issue of how the u.s. is handling it compared to other parts of the world >> well, it's absolutely essential that we get a control over the inflation and the raising of the interest rates by the fed is starting to accomplish that, it's slowing it down, my goodness i hope they don't have to continue to raise rates in 2023 because there's consequences to our economy because of that, so we want that inflationary pressure to decrease very quickly, i'd expect in 2023 it will be reduced, it will be brought under control and then the concern of course is the consequences of the interest rate hikes and whether that's going to put us into a recession, right now in arkansas our economy continues to be strong, although there's a lot

more caution in the decisions being made by industry and businesses as a result of what they see might happen in 2023 with a slowdown. >> i got a hard question for you, as a result of what the fed is doing, what do you think a politically platable unemployment rate both in your own state and in america should be because as the fed increases rates, one thing that's going to happen unemployment is going to go up, where does that level need to be or should be? >> right now, we're at 3.7% the same as the national average i'd like to see it at no higher than 4%, that's historically equivalent to a full employment rate, and so we're watching that, i'd like to see it stay below that the other thing you've got to

watch, though, of course, is the workforce and whether people withdrawing from the workforce or entering the workforce and that's what i watch every month and right now we've increased our employment, our workers, over 100,000 over the last 8 years and that's slowed down >> one of the things you talked a lot about is border security and immigration. where do you think this discussion goes politically at least over the next two years? >> when you see the supreme court of the united states giving more attention to border security than our president, then that's a signal that congress needs to take action. and right now, we need to have a specific border security bill that addresses the future lifting of title 42. i'm hopeful that the supreme

court keeps it in place, they probably have until the spring of next year, but we've got to take the steps now to replace title 42 with something that will give us the same levels of security and the ability to quickly remove those who are coming across our border, that's what congress has to act on and that does impact the economy, because when you see insecurity at the border that leads to insecurity in the economy, it gives you worry about what's going to cost in terms of federal spending >> then finally, dare i ask, 2024, are you going to run >> well, there's going to be somebody on the ticket besides donald trump, i'm certainly in the mix on that, very serious about my decisionmaking process, and so the key is, there's going to be alternatives on the republican side. >> what's the decisionmaking

process looks like >> measuring the level of support which includes financial support if you take that kind of jump, where is that jump going to lead you? i believe we need a monsense conservative message that's out there, the leadership that i provided through eight years as governor and you want to test that, you want to see if that's what the nation needs at this time what potential candidates look at i think we got to probably in the first quarter or second quarter of next year, it's going to fill out who's going to be there on the republican side stay tuned to my decision. >> happy new year. >> happy new year to you. when we come back, enjoy your champagne for new year's this year because the bubbly is about to get more expensive. we'll tell you why, right after this. reminder, go et the best of

"squawk box" in our daily podcast. you can listen any time. we'll be right back. hello, world. or is it goodbye? you know, it seems like hope and trust are in short supply. [clap] now, as businesses we can blame and shame. or... [whistles] we can make a change. [clap] we can make work, work for our communities. create more equal opportunities. [clap] it's time for business to show its true worth. because it's not goodbye, world. it's hello, team earth. [clap]

welcome back getting ready to pop the bubbly last night, enjoy it now, though, the new year's eve staple increasingly at risk at least price-wise and more. what's going on?

>> well, andrew, it's not for new year's eve anymore, champagne prices have been soaring all year, exports to the u.s. last year jumped 64% from the year before and this year may be even stronger but a new report shows champagne is increasingly at risk due to climate change exposure to physical risk caused by drought will triple by 2050 it will then more than double again by the 2090s we saw record drought and heat last year to cause the harvest to move up a month the grapes have been maturing faster due to heat and drought drought is the primarily challenge. but the rick of extreme heat and fire will double from now until the 2050s according to that report france's famous wine regions saw

unprecedented wildfires. no surprise champagne prices are rising along with the bubbles. andrew. >> it gets more expensive. like inflation diane, thank you what are you going to be drinking then? >> i'm not drinking anything right now, i might be getting over a little something, but next year for sure >> hot tea happy new year. drivers getting some relief at the gas pump after record highs this summer. where prices are headed next year tune into a cnbc special tonight at 6:00 p.m.asrn ete time taking stock, all about what's ahead for the u.s. economy in 2023 stay tuned "squawk" returns after this. so you'll never sit this one out. icy hot pro with 2 max-strength pain relievers.

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welcome back to "squawk box" right here on cnbc take a look at futures ahead of this final trading day of the year the dow open down. s&p 500 off about 28 points.

there's some relief at the pump at least for now. gas prices are expected to drop another 50 cents according to gas buddy forecast for 2023 but the price per gallon could jump ahead of the summer driving season the head of the petroleum analysis for gasbuddy. i paid 2.99 for a gallon of regular unleaded and i couldn't believe my luck, should people expect to see a lot more of that as we head into 2023 >> the window may be closing on those ultra low window china has reopened and cold weather we did some refineries impacted which impacts gasoline prices overall we expect the yearly national average to be 50 cents lower than it was in 2022 dropping to about $3.49 a higher

price than today and we do project prices this spring could surpass $4, that could mean the west coast again touches $5 but we're hope that we won't be seeing a record-setting year this year like in 2022. >> the idea of getting back to $4 based on what, china reopens successfully, covid dies down, you're not going to get more supply, it's demand that's the big question. >> it's really china's reopening, there probably will be a surge in covid cases, it will hit more in march and april as long as china continues the trajectory it's on today coincide with the ride in the united states, where we switches to more expensive summer

gasoline, that could create a little bit of surge in the springtime and send those average prices back over $4 for most of the country. $5, but still on the whole, 10% compared to what consumers this year >> refining is a big issue, as you get into the higher grade summer refining, that's when you really had issues, anything that can be done on the refining side, take years to fix and try to improve >> expansions have been under way, exxon mobile in texas has been undergoing an expansion since 2019, that project will likely come online this year, the u.s. isn't going to see much in terms of refinery capacity.

we'll see an increase in refining capacity in areas overseas, in africa, nigeria, in the middle east and asia, a lot of major refining projects coming online. it will help alleviate some of where the u.s. is shipping its product exports, that will certainly help increase the apartment of global refining capacity and they could help put downward pressure on prices. >> patrick what's the pressure point that consumers say, hold on, this is a serious problem, and then put pressure on administration or elected leaders, is it $4 per gallon. >> i think we've pushed past it, it depends on the situation, with prices going back to $2.99, $4 some friction there but i think with many americans having

seen the $5 in the last year that probably raises the bar, the $5 a gallon is where americans really become sensitive because many areas, some dabbled with $5, barely over $5, that's the point of contention again this year for americans and keep in mind, in california it's probably going to be higher than that, $6 or $7 because of the higher price that californians have faced. >> how long do you predict this? i'm sure you put some thought into it. >> well, you know, as long as we're continuing the imbalances brought on by covid u.s. oil companies have seen only a slow increase in domestic oil production, the latest figures probably weather impacted. oil companies are taking their time, we could be sticking with higher prices for a little bit longer this cycle and a lot of that is simply due to lower

investment, oil companies concentrating on dividends and buybacks that could keep pricess elevated >> have you seen any changes >> massi ive change in consumer behavior areas they know are known for having lower prices. there's a lot of shift when prices do go up. an app like gas buddy becomes more popular the big chains that have lower prices, loyalty programs are distinguishing themselves as low price leaders. >> patrick, thank you for your time today happy new year. >> thanks, becky you too.

meantime a new report from house democrats says the us fda improperly collaborated with biogen for an alzheimer's drug the investigation by two house committees found that the fda and biogen had more meetings than usual biogen was planning to seek approval for the drug but they found they worked so closely on a document for outside advisers one paragraph was written by the fda official meantime republicans didn't contribute to the investigation report, democrat carolyn maloney slamming the pharmaceutical industry for putting profits over patients.

biogen expected pushback from payers and patients but we'll dig more into this story throughout the day. coming up, inflation nation. we're still in the thick what investors and economists see in 2023? we'll talk aut ibot.

welcome back to "squawk box" the futures right now are in the red on this final trading day of the year s&p 500 off about 30 points. becky. inflation fears may be easing in the new year, at least we hope. 79% of market participants in our stock survey say they expect inflation to continue to fall in 2023, but our economists on -- but are economists on the same page let's run through some of the questions that we've been thinking about here, andrew, i'll start with you, do you think inflation comes down and if it does are we going to be

back at the levels that if fed is looking at, 2% or so. >> we have to receive positive news in the last couple of months that shows potentially inflation is peaking, it's unclear whether or not this really is the peak, i think it's going to take some additional data points to confirm that and the fed's going to have to be individual lant on making sure it stays focused on bringing that inflation rate back down. the fed said very clearly they want inflation back down to 2%, i think we should believe them on that. this fight is not over yet. >> what's the stickiest point? getting into the wages at this point, andrew. >> a lot of uncertainty, first of all the geopolitical uncertainty makes monetary po popoll and going forward could suddenly change, you know, your last

guest said we've seen some positive changes in energy prices but that could quickly reverse. uncertainty facing the u.s. economy. the forecast for on the future path of inflation, again, i think we've seen some positive data recently but i don't think we're out of the woods yet >> stephanie, how concerned are you about inflation and declining economy and job losses >> that's the primary concern, you know for me, becky, inflation has always been the relevant risk, so i'm always concerned about inflation, i think you know we're in a sense shifting gears right now and i think markets have shifted and i think the consensus is more or less that inflation has peaked that's a mostly a rearview mirror problem not to say as andrew just laid out that there's not a lot of uncertainty and some volatility and anything could happen, but all signs

point to decelerating inflation in 2023 and i think the relevant risk has become recession risk and that's what markets are mostly concerned about >> let me ask you, stephanie, we've been tossing it around the last week or two, the idea of inflation working its way into wages and because the labor market is so tight, employers not having much choice, it's such a weird position to be in where you're trying to fix the strength and demand of breaking the market but also faced with a tight labor market, what do you think? >> i think you used the right word, becky, when you said it's weird it is weird. when we talk about a tight labor market, a labor market in which real wages are increasing that's what usually happens in a tight labor market but of course that's not what's been happening

so things are very strange and it's in some sense a bit weird to describe the labor market as tight but yet we know that employers are still having some trouble finding workers, the number of openings far exceed the number of workers -- >> that's right the numbers are decelerating contract put in place for the next three, four, five years, that have been built increases, a question whether that makes the inflation kind of run rampant and work its way into the wage inflation spiral. >> there's some of that, the exception to the rule, most workers aren't negotiating long-term contracts with those kind of wage increases built in. when layoffs begin, all bets are off. companies will be hiring back

workers at a lower wages >> andrew, where do you stand on the risk of a recession and how deep one would be if we do get one next year. >> a recession, it's hard to bring inflation down from these levels without it, it's not impossible, a soft landing but again history doesn't suggest that, particularly with all these other risks, geopolitical, the resurgence of covid and the continued disruptions, a lot weights on the economy making it more difficult for that soft landing to happen. it's still possible. but it's a real risk some of factors we've been talking about already, on the negative making a more severe recession. a challenging year for the economy. if inflation is brought under control and we see this some stability geopolitically and in

covid you could see in the second half of the year the economy start to get back to normal and start to see growth return to kind of its post-pandemic levels but right now, there are pretty significant weights weighing on the economy and creating additional recession zbrisk >> federal reserve, people are concerned they're going to raise interest rates and that's going to cause the recession. >> that's always a risk, i'm of the view that we need to get inflation under control and the best thing for the fed to do now is to be vigilant and not take its foot off the brakes so to speak on the economy, because if the fed has another resurgence of inflation because they pull back too fast and too early then you're going to have a difficult time getting inflation under

control, they seem to be in good position now going into this year, inflation is going in the right direction, they'll have to be vigilant in making sure they're confident that inflation isheading back down to their 2 target before doing so we got some work to do before the fed gets there >> stephanie, you think the fed's gone too far already or they should continue this path >> i think they've done more than enough tightening already what andrew is saying about energy and so forth the fed will tell you over and over again, interest rates are very blunt instrument and they're not going to do a whole lot if anything to help you get at the drivers of the remaining inflationary pressure, coming from geopolitical the war in ukraine, energy prices and some of those things, so, yeah, i think, you know, the fed is trying to wanl

war against inflation with a weapon that's not well suited to the remaining recessionary instruments in the system. >> see what happens with the labor market and we'll have you both back to talk about it >> thank you as china drops travel restrictions the u.s. cdc is considering samp ling wastewater taken from international aircraft infectious disease experts said tracking the wastewater than the new requirement for mandatory test for arrival from china and andrew, we talked about this earlier, it shows up in the wastewater first long before it dozen the nasal swab okay, the requirements for doing some of these things, there's no

way, you can't get people to bag groceries or repair cars at this point, i don't know how much you would pay. the sample has to be collected where the wastewater is well mixed so it should be collected near the center of the flow channel about 40 to 60% of the water depth where the turbulent is at maximum -- >> people are eating breakfast during this program. la la la stop okay, during the commercial break you can tell me, but people are waking up in the morning, people are on holiday when we come back, disney ending the year on a high note with the latest avatar what is bob iger going to do

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welcome back to "squawk box. blockbuster sequel "avatar: the way of water" crossing a billion dollars in ticket sales worldwide. the film, a win for disney, but newly reinstated ceo bob iger still has a long road ahead. the stock is down 40% for the year, investorswondering if he will be able to turn things around joining us now is matt, puck's founding partner and a newsletter that i read religiously, matt. it's nice too see you, sir >> good to see you too >> what do you think the prospects are? i think there are a lot of people very, very excited, obviously internally and externally around hollywood when it comes to bob iger's return, but at the same time, a lot of the strategy that is sort of put the company into this situation was some of the stuff that he started with >> absolutely. and the honeymoon period is pretty much over the stock did not maintain that little bit of a pop it got when he came back, and there are

going to be some very big decisions that have to happen in 2023, mainly, i think the first thing he's going to do, he's going to rip up the changes to the structure of disney that bob chapek instituted, putting all the creative decisions under this distribution arm that kind of took power away from the creative people. that's going to be gone. he's going to thhave to probably do some significant cost-cutting and reorient this company around building revenue from the streaming services, not just subscribers. that's a big issue throughout hollywood right now, but especially at disney, because iger priced disney plus so low to generate subscribers at the beginning. now, they've got to get revenue. >> matt, the two big chess pieces that i think are on the board here are espn on one end and hulu on the other. the buyout of hulu or perhaps the sale of hulu how do you think those things

play out and are interrelated, given the amount of money it may take to buy out hulu if you therefore then don't want espn, for example? >> right and these are philosophical questions, because if you sell or spin off espn or even abc is the rest of the linear television channels, you are making a bet that streaming is the future, and the walt disney company should not be in the traditional television business any longer, and that's a big decision, because those networks throw off tons of cash that disney is using to fund its streaming endeavors, and if you get rid of that, eventually that revenue will go away now, some would argue the revenue is going to go away anyway because of cord-cutting, and that's going to accelerate, most people think now, so that is a big decision he's going to have to make and then the hulu issue is a little bit, i think, less pressing, because they have this option to buy out comcast's 30% share in 2024, so he could just

simply wait on that. but that has really hindered their strategy in how to approach overall streaming are they going to consolidate it around one service, perhaps disney plus worldwide? or are they going to go with this bundling strategy they've within going with, where it's disney plus, including hulu, including espn+, and that has been good for overall subscribers, but many people think they should kind of consolidate the whole thing into one service to really take on netflix. >> okay. so, if you're going to look at the -- through your crystal ball, 2023, if we had this conversation a year from now, what does disney actually do we've now laid the pieces on the table, but what else happens around the hoop? which is to say, i think there's lots of questions about the future, for example, of warner bros. discovery, what that looks like obviously, whether nbc universal or comcast parent company,

trying to buy that stake in hulu or trying to buy another company, including, like, a warner bros. discovery or paramount. what happens >> well, from disney's perspective, i don't see disney doing a transformative deal. i mean, iger has essentially said that in his comments to his staff when he took the job i don't see that in the cards this year. i think he wants to get the house in order, but i would not be surprised if there is some movement on the hulu front, because that's something he could do right away to kind of put his stamp on things, okay, we're doubling down on our streaming endeavors. i don't see iger spinning off or selling espn right away. i think that he believes in the sports business and thinks long-term that disney should be in the sports business now, a lot of people disagree with me on that and say that he would be stupid to keep running up all of these sports rights and getting -- staying in this

very expensive business at a time when streamers like apple and amazon have decided that they want to be in the sports business, and they have a lot more money to play with. but iger is a sports guy he's also a linear television guy, came up through abc, so for him to sell that division would be a big statement >> okay. here's the biggie. bob iger, famous for massive transactions, do you believe that he is no longer the ceo in two years, as has been stated, and if he's no longer the ceo, is the company an independent company or not meaning, does he try to sell the company? >> i don't believe he will try to sell the company. there is widespread speculation that that's why he came back, that he came back to do one last big deal i don't think that is the reason he came back i think the reason he came back is because he felt the company was not being run properly under chapek, and he felt that from the very beginning, and he's a

guy that wants to be in the mix, and he missed it i don't think that he will step down in two years. the succession issue is a big one for him, and i think what's a more likely scenario is that he takes a little time to identify someone that he believes could take over the company eventually, and then in a year, year and a half, we get an announcement saying this person has been elevated to a c.o.o. position or a quasi-number two position, and then there's going to be a, you know, transition period for a couple years, and then iger plans to step down >> you got a name for us >> i don't but i actually -- i don't believe right now that that person works at disney there are a number of candidates, you know, everybody from dana walden, who runs their television division, to christine mccarthy, the cfo, to josh, who runs the parks division there are a number of people there, but if igerme wanted to

that, i think we would have seen it already it could be someone from outside the company. >> we will see matt, always good to see you love and enjoy reading your newsletter, and look forward to seeing you in the new year happy new year >> you too all right, folks, that does it for us. you can see dow is down by about 150, the nasdaq off by 111, the s&p down by 25, but happy new year, everybody. we look forward to seeing you back here on tuesday >> happy new year. >> happy new year, health and wellness to everybody, good-bye. good friday morning, and welcome to "squawk on the street," i'm morgan brennan with scott wapner and mike santoli live from the new york stock exchange we're going to take a look at futures. this friday morning, this last day, this last trading day of 2022, we're poised to open lower. so much for that, i guess, early