drop those numbers down like everyone expects either way, the fed is going to be more restrictive than equity investors think right now. >> okay, jonathan, thanks a lot. it's been awhile. >> the dow is down by 107 now. that does it for us today. buckle up, we've got some breaking news. we're going to get right over to steve liesman. he has the latest comments from jay powell >> fed chair jay powell in a speech largely focused on central banking independence and less so on the economy and monetary policies. he'll say it provides the public with immeasurable pechbts. he says restoring price stability can require unpopular policies in the short term and the fed must earn its independence and do so by delivering on its mandates of

maximum employment and price stability. it means that powell says we should stick to our -- they should resist the temptation to broaden our scope and then he goes on to say that new goals for the fed, without a statutory mandate from congress, can end up threatening the fed's independence specifically he talks a bit about climate change here saying climate change policies should be left to elected officials the fed responsibilities on climate change should be limited to the narrow area of assessing potential financial risk through its bank supervision responsibilities it is inappropriate, powell says, for the fed to use its tools to promote a greener economy. he said we will not be, quote, a climate change policymaker so that's pretty much it from a short speech that powell is delivering in stockholm. not much on the economy there,

carl, but maybe he's happen to let the comments of other fed officials, which have been on the hawkish side, kind of ride and doesn't have much to add to them we'll see when and if he decides to give a more definitive statement on economic policy and monetary policy. my guess would be it would not come until after the thursday cpi report carl >> steve, thank you for that futures coming off the lows as the market had been a little bit nervous going into those remarks and we'll watch for q&a with steve. welcome to "squawk on the street." thoughts on what we just heard >> i think it's pretty much par for the course i don't think there's any direction that we're going to get as steve said until after thursday we're kind of stuck in a world where the instant reaction was, here we go it's finally going to get better and then we had a couple fed heads say yesterday, please, don't get too bullish. david, one of the things that i

think that we're in the throes of, the cusp of when you think that the tightening cycle is going to end, you've been through a number of tightening cycles, there's gun-jumping every single time. and i thought friday was gun-jumping. >> you did based on the number? >> they're telling you over and over again one number does not make it. the pmi was weaker those do matter. but i keep finding when i listen to businesses, we do not have that weakness that you expect. >> no, and we've got a market and a lot of participants who are anxious for -- they think there's going to be a turn coming at the same time i will say that amongst the chorus of those who continue to believe that we're headed for a significant slowdown and don't want to own equities even at this point, even with what have obviously been discounted valuations versus a year ago, they're not budging. i haven't heard that group and i go back to the same people who smartly got very negative to

neutral, let's call it last june they are still there >> i listened to fisher this morning, this is a man who has really been around a true veteran of the fed. remember, we're starting this from an amazing position of employment which really is a good thing that we forget that when we have this kind of employment, we can suffer some unemployment against inflation and it's fun i was listening to him by saying, wow, that's the kind of -- kind of a logical, rational view. the train doesn't have to be wrecked in order to stop inflation. carl, i come back and say, look, go gun-jump if you want to gun-jump with industrials which have reasonable valuations don't gun-jump with these high growth but very high multiple technology stocks where i think they're going to be battlegrounds. just in terms of news, microsoft, $10 billion into this

ai thing which is a lot of money. you can write a poem about yourself with ai but we've got questions about whether azure is strong and we sit here and those of us who watch cnbc asia, which we haven't. >> we're going to talk more about that report. core pc the last two months, analyzed, two six. that's half the pace a lot of wood is getting chopped. >> i think things are going the right way. people are saying, you know, it's like a -- just a cheerleader for powell and i know david -- because you are skeptical and wry have given me -- powell is pretty good. you do not give me the high side -- >> let you pass judgment on the fed chair one way or another will be, you believe that he is on the right path and has been

that said, you and i went back and forth a lot during let's call it the '21 period where there was the question as to whether it was transitory or not. inflation and many -- >> and i thought -- >> the fed moved way too late. >> and i thought it was -- that when they want commodity inflation, that would be the clarion call and it wasn't it was wage inflation. and i did not get that right as much as at my birthday party you said that cramer is talking about this strange pandemic and everyone is -- >> are we going to go back and forth now about all the things we got wrong i can't wait until your next big birthday so i can make fun of myself >> we're talking about the -- >> at his 65th which is amazingly going to be coming up three years soon you are making a lot of crazy comments and all of them ended up being right about covid. >> i think one of the things we do on this show that i wish --

that is a little refreshing, you have to own the fact that i thought the commodity inflation was being targeted once we saw aluminum or copper come down, oil come down in particular, that would be a sense that they're winning and they turned out to not think that that mattered that they're worried about wage and it was difficult to see what they were targeting. once they saw it, every little thing about wage like friday is a sign that maybe you should jump in. but people are jumping in to things where the numbers are going to be cut in the next five weeks and i think that's not a great thing. >> you mean from an earnings standpoint. >> we have this vacuum where it's easy to say good things and then when the numbers come out, we sold some microsoft yesterday. i swore that we would never sell for the travel trust microsoft is the ultimate buy and hold stock but i listened to nadella talk about how it's going to be two tough years. i said, is he really saying buy

the stock? i think he's saying hunker down. if i'm going to hunker down, i'm not going to hunker down in the stock of microsoft that's not where you hunker. >> where are we on a multiple of microsoft? >> 25, 26. we're at a lower multiple than what we've seen in quite some time. >> very true. >> but your opinion would be that the numbers have not yet come threw. >> when someone cuts numbers, the stock goes down, unless it's a situation like a nucor which sells at four or five times earnings even after the cut, stocks remain cheap look, i'm not bear or bull i'm just saying that on friday, for instance, we get the -- we get the bank numbers i think they're going to be okay because the banks have not seen these distielinquencies that pee keep talking about. >> we did get jeffries after the bell last night.

i think carl was going to go there too which sometimes can be a bit of a road map. capital markets activity was muted. that stock looks to be down as much as 3%. >> i think that's an overreaction i thought the quarter was okay >> annual return on adjusted equity, 7.2% and, again, they did repurchase almost four million shares of stock, but, again, down 38%, investment banking revenues from what was an incredible '21 for so many of these banks when it came to capital markets. >> and jeffries cut ally and capital one today. >> they're out for those companies. we have jp morgan saying -- these are people who believe that the recession is going to be a tougher one i'm coming back and saying i'm not even seeing recession yet.

>> goldman pulled their recession call for europe. >> that was incredible. >> that was based on energy costs coming down? >> they're full -- i have coterra ontonight. one of the reasons -- natural gas has been plummeting because of this warm weather, but also because, sorry, russians, they figured out a way to get natural gas. putin -- another misjudgment by putin. i don't want to be too international in terms -- >> it's important. >> major misjudgment. >> the warm weather throwing a wrench into the macro playbook to a large degree. it's going to make seasonal activity stronger than you would have thought he talked about the fed's approach to battling inflation here's what he said. >> i kind of think that they'll stop short breaking the economy, a lot of it depends on how inflation plays out. i think the inflation that we have right now is because

primarily because of extraordinary fiscal stimulus and extraordinary monetary stimulus not because of the fact that workers are getting a fair share for a change >> not tepperesque, would you say? >> he can change his mind. can say, look, i think things have gotten a little bit better. friday, he said you got to have a little bit -- more of a flat book i think people at home are owed a particular explanation on things you get a guy like david tepper, okay, and he may see a different setup on a different day and try to flatten his book or not be as big short. same thing when we get these at the end. they're snapshots of a moment -- >> 13 "g"s >> i want people to like what they own, not listen and then like what they own because people change their

minds. and i find that if we report on something that is static, then we end up reporting on something that you might take action on, like dave tepper -- i speak to dave a lot you know, dave changes his mind. he's a very good manager who is not dogmatic you mentioned those dogmatic managers who are not going to budge -- >> they haven't yet. it doesn't mean they won't. >> but david does not play that way. i've known david since he trashed me in front of probably a hundred people when i was at gold man when i asked him if i could buy something and screamed my name and said he wanted to know my name who he could show everyone who not to emulate. that's how we became friends we became friends because i was mortified, i wanted to cry, my

mom was still alive then and independei wanted to call her. >> the beginning of a beautiful friendship. >> not all friendships start the same way. >> no, they don't. we're watching coinbase today announcing layoffs as part of its restructuring plan. the company plans to cut 20% of workforce, almost 1,000 jobs brian armstrong saying with perfect hindsight, looking back, we should have done more the best you can do is react quickly once information becomes available. he says dark times weed out bad companies. i wonder who he's referring to there? >> well, we had mike on, talked about certain weaker companies coinbase was down at one point it was up big yesterday. i find -- look, i know it's always very difficult to campaign with a broad brush. but i continue to rely on john stark who i know from s.e.c. enforcement, he's in there for

18 years he's saying, listen, it's just beginning. the ben of thieves is being revealed david, you see every day a new person be able to say, listen, i've got something to say to the u.s. attorney. and that means that you have to give up someone. at a certain point, as we know from reporting on this, they all say, you know what, sam bankman-fried, we got -- we got a lot on him who else >> right and at that point, you have to say, well, i don't want to go to jail i've got some information about such and such a company. you know the way it works. >> it does work that way, if they can, if they can build a case that goes beyond, sure. or there's something else of great interest we don't know that, though, jim. we have no sense for that right now. the case that's been built is certainly against sam bankman-fried. it does appear the government has a number of key witnesses that are going to bolster its --

>> the government plays with unlimited firepower which a lot of people dismisses because they think they're smarter than the government i went to harvard law, i had to mention that, the class all went to the southern district they didn't go there to pick the names out of the out of the phonebook. >> the people they focus on have almost unlimited resources themselves and certain ones have been able to fend off the feds to some extent. >> but not if they have a web of people who are squawking in order to say -- >> no, no. >> that's a very powerful -- let's say you've got some really fabulous snitches. >> you expect there's going to be more uncovered beyond ftx >> absolutely. when i look -- i look at these

prices today ethereum is running. oh, please ethereum is running. there you go gamestop let me get in that one before it really -- at $4.50 that thing is about to break out. amc, david, 60 you never -- people are going to go to the movies again the ceo finally sold some. isn't this the moment? >> your point is, they're not dissimilar from those meme stocks of two years ago? >> i don't think they are at all. not one bit. the meme stocks may have had a greater degree of honesty. stupidity, but honesty i don't care bring it on. i'm thrilled waste your whole day just do nothing but attack me. you'll have a really productive day. and i'll be laughing my head off because i'm not even reading you. >> amc is still around 2

billion. >> how is the balance sheet at amc? >> not very good. >> carl, i think when i look at the -- when ilooked at crypto and i look at what's going on and i'm thinking, you know, we've got some pretty good situations, no no just no. >> yeah, i think your patience is long gone regarding some of these -- >> i made a lot of money in it because i made a bet with a fellow where he said, listen, you put "x" in ethereum, you're going to make a ton of money and i forget about it. the best thing i ever done you know, it was also the most -- lisa saw it. my wife saw it and said why are you in that? >> i said because it's going higher she said, oh that's a time-honored reason to stay in. going higher >> take a look at the premarket as we get set for the opening bell we've come off the session lows.

we'll get to apple and some of this new about chip suppliers, bed, bath, a lot of calls on delta, the cruise lines, at&t when we come back.

yields, of course, remain one of the stories of the week got tantalizingly close to 3 1/2 yesterday. bouncing a little bit today as we get closer and closer to that important print of cpi on thursday we'll get cramer's "mad dash"

and the opening bell in less than ten minutes

let's get to a mad dash. we have seven minutes before we get started with trading here at the new york stock exchange. we want to venture into my territory a little bit, warner brothers discovery. >> we had bank of america, warner brothers. this morning, goldman sachs comes out and says favorite media stock, warner brothers discovery. they had the merger phase behind us we have command and control of the business warner brothers is covering diversified assets, and the

largest tv and motion picture library, our global footprint positions us for long-term sustainable growth, a company that has meaningful cash flow. i believe we have the best hand in media and our best days are ahead. >> look at this move end the year right now for them. >> i know people are saying, you know what, i got to get out. i don't know it's very hard to find a stock -- >> it's true obviously, a terrible year last year but there's a belief that they're going to return on those synergies and the new strategy the overall streaming product that combines everything, we're still waiting for that to see how that hits the market. >> cnn is for sale, 800 million -- >> 800 million instead of a billion. what kind of multiple would you get? i've heard plenty of things out there about it >> and we see, obviously, it's

not been -- >> not at all. >> david, how much -- >> by hearing you get a little positive on it too >> okay, i think here -- no, it made no sense. here there's some optionality. i'm worried about live sports because it's so compelling and they don't have enough but i will say that he's an incredibly competent -- i think it's a smart guy. >> dealing with the slow and steady disillusion of the cable ecosystem. >> absolutely. >> got plenty of those that derive a lot of the cash flow from the company from that. >> i respect goldman and jessica from bank of america >> we've got more stocks we're going to keep you up on them you can catch us any time, anywhere, remember, you can listen to and follow the "squawk on the street" opening bell pod k cast we have an opening bell coming up

i screwed up. mhm. i got us t-mobile home internet. now cell phone users have priority over us. and your marriage survived that? you can almost feel the drag when people walk by with their phones. oh i can't hear you... you're froze-- ladies, please! you put it on airplane mode when you pass our house. i was trying to work. we're workin' it too. yeah! work it girl! woo! i want to hear you say it out loud. well, i could switch us to xfinity. those smiles. that's why i do what i do. that and the paycheck.

the opening bell is brought to you by nuveen a leader in responsible investing. >> this is an inflation supercycle what i've been saying is good

consumer packaged goods companies can navigate these supercycles if you have three things in place, great brands, processes and people we've got all three. it's a process it's not going to fix itself overtime you announce your pricing, you wait 90 days until that pricing goes into effect while that happens, you got some margin compression once you get on the other side of that 90 days, you start to see margin recovery and that's what's happening for us. and the good news throughout all of that, demand for your products has been resilient and our products are strong. >> some of these companies wouldn't mind if inflation stuck around for awhile. >> it is very interesting, and he's a delightful man. he's got some just tremendous brands that we all know. every single popcorn seems to be his. i had some slim jims last night. he's got a lot of brands that you're able to put through a

price increase and they're holding. >> who wouldn't, che you work fm home [ bell ringing ] >> here's a look at the opening bell at the big board, the new york city department of buildings and milrose consultants, john gallin & sons, inc. celebrating the podium accessibility project at the nasdaq, you got to eat something, jim, popcorn, while you're watching netflix. >> one of the things that went their way, we talked at that people like to binge with snacks and work from home they had this unique cache of brands that tended to work well

from home. i happen to like the guy sean is terrific i keep trying to get him to do new things they sent me a duncan hines candle when i light it, i feel like i'm back in my mom's kitchen back in 1962 the nostalgia for the brands that matter too. they're in your refrigerator and your pantry and they made a very big comeback there was a time when we thought pantry wasn't great. the frozen food aisle, millennials love frozen food >> they don't love high social media -- higher sodium and all that stuff. >> why do you crush his dreams >> throwing out stuff here -- everybody is back to eating the most unhealthy foods you could imagine from when i was growing up and everything was made of chemicals in a can. >> my son is in college and i can't believe how much -- he eats birds-eye and he absolutely

loves it jim, you're onto something. >> premarket was nervous ahead of powell. it appears to be a bit of a push today, right >> that close yesterday, the sickening dow jones close really is a sign that we just don't have a lot of new money coming in the mighty dow collapse yesterday and there were a few semiconductors that stayed up. i want to watch on semi today. it's involved with autos and people are -- there's the long guys are out for autos too. >> either that or some of the apple suppliers, broadcom and qualcomm both in the cross hairs. >> when you see qualcomm out to 2025, that's actually slower than people thought. broadcom is someone -- they're talking about losing

1.5 billion. i never find it's been a great idea to bet against broadcom. >> take a look at a longer-term chart there. obviously very inquisitive another very large deal. vmware but that would seem to be a blow, potentially, if this report is correct. >> absolutely. and i don't know that it is. >> it could include dropping a key part by 2025 >> now the question is, is that a difficult product for apple to build? a lot of people feel that these are things that they can say that they're going to do my experience with apple, you're not allowed to talk if you're one of their suppliers you're not supposed to talk about it apple doesn't like you to do that i wouldn't bet against apple but hawk tan is going to need

the vmware acquisition to come through. >> without a doubt he's buying things and cutting costs significantly. if apple is really moving out more towards its own they're one of the largest single customers this company has. >> broadcom's biggest customer 20%. >> you have on semi, it's down 2 1/2 bucks. that is auto at the same time you have nxpi and that got an upgrade today and that one is auto and it's up 3.2. so we start thinking -- this is for typical so far of this short year, not many days, but there's something that says buy and something that says sell and it's whoever spoke last. we're seeing the stocks go down today. those are good companies if you want -- >> that's a comment on economic activity, right?

>> exactly i don't like the fact that people have so little conviction there's just no conviction david, you come in and people say, well you know what, that number on friday was good. but this number is bad mary daly did this, but fisher did that have some conviction before you buy warner brothers discovery. >> well, as you point out, now you're just buying it on momentum -- that stock has gained a quarter of its market value in the last six trading days. >> was the only thing exciting about that championship last night that there was -- that bob iger was there >> bob iger was there. looking well as always >> hands on. four days a week >> yesterday reports mr. iger sent out a memo saying we expect to see you at disney if you're here four days a week in person because we're a collaborative company and a creative company and that requires collaboration. >> i agree with that personally, as you know.

i'm not one of those who believes we're doing well by being home or working remotely there are a great many of employees out there who would disagree with that statement, jim, and you know that and they still have a lot of weightin the marketplace. mr. iger is telling them, hey, we expect you to be in four days a week because there's tremendous value there, being together with the people you work with i think many ceos feel similarly -- >> there are ample places for these people to work. >> they don't feel they have the leverage yet to do that. >> this is it. this is the first one i've seen who says, look, here's the deal, four days. >> well, i mean, david solomon has done it. a number of other ceos have done it financial services, the culture will -- you do still top down, okay, we'll be in. but many of the technology companies have been slower, they tried, maybe they got people back two days. they've said three, but people aren't showing up three. and everybody is -- friday is no

longer a -- i don't know, is it really a workday >> is it really a workday? >> even iger is talking monday to thursday. >> i can't believe how -- >> you're a guy who wears a tie after 6:00 at night -- >> i wear a tie gardening. that's how i have some of the best tomatoes. >> you're the definition of an immackism. >> okay. it means us to other names barclays today, netflix, a function of positioning. we believe maybe a crowded long, we reiterate neutral. >> when you look at your icon, who are you? i'm chill. you put -- who is watching, chill. >> okay.

>> i have never seen -- when i press chill because i am chill, i have never seen so much new programming. and yet they come out and say -- this is about programming. and i say that because when you're on their conference call, he's like, what are you watching remember during that period when there was not much it was like, hey, we got -- now, i mean i'm watching -- there isn't a day that goes by and i say, can you believe that? >> and they continue to pump it out. >> what are you watching >> we're finishing something on paramount. >> 1923? >> "the offer" which has been really fun and probably going to dive into "yellowstone" way late >> jim stewart's new book. it doesn't present it in the light i would -- >> you're the only person that

has read the book. >> les moonves doesn't fair as well. >> it's shocking to me guys, i do want to talk about deals, a prospective deal in health cvs. this is a bloomberg story from late yesterday it's following through with an almost 29% gain. i'm talking about oak street health this is a company that runs primary care centers for medicare patients and this is a bloomberg story. i have nothing to share on it. but i will share some analysis and a couple of investors who have said, well, listen, it makes sense, potentially, and with know cvs has been looking in this area the potential deal didn't end up happening. that stock sank to new lows. but this one is larger it would be delieutive and it would be in the intermediate

term and it would mean that they would not be able to complete the $15 in buybacks that are currently modeled by many analysts, that's for cvs >> that's pretty significant. >> we'll see they lost that -- some of their star ratings on medicare that was back in october the impact on their buyback, that's a question mark here. and so don't have much to share in terms of any of my own reporting, sorry to say. i know there's been an interest from cvs acquiring these potential assets some of their shareholders may be a bit disappointed -- >> if you go read about it from medicare, it reminds me of the model for santeen and it does -- it dovetails but, carl, the reason why we like cvs versus walgreens, they bought aetna everybody knows it's the better of the two it's interesting, these are

companies that are presenting at jp morgan. >> i think cvs is presenting at 11:15 eastern today. very much unclear whether they'll share thoughts at all about this story or anything else but just in case people should know that they're presenting -- >> they are breaking a lot of news at that conference. i want to see what regeneron has to say they have a new product but it was slowed by -- there's new things about covid but, carl, covid just doesn't -- it's kind of like people say, it's the flu, i still test periodically i come home and test it's like i'm not bingeing, i'm testing. >> i haven't tested in so long, thankfully i don't even think about it. >> i've got some great tests. >> why would i want one?

i was early with don't test, don't tell but now i justdon't test. >> why >> i was in a room with a lot of people i thought that was aerosol. >> it's a far cry from where we were 12 months ago omicron was raising all kinds of questions about china, about our country, about vaccines and treatments and about travel, jim. morgan stanley today since the beginning -- since october 3rd, boeing up 65 versus 7. >> just when you have momentum, they come in and just slash it i happen to think that boeing is one -- it could be a big year because of the orders, because delta is recommended as an -- in a stock of the year by bank of america. >> bank of america, reiterate

buy, 43. they've added so many -- the industries have hired 11,000 pilot and is that's going to allow the industry to start -- >> and there's so few pilots it's interesting look, i think people at home have -- what we see, we look at all the research and the research is heavily skewed towards stay away from the credit companies because they are going to be hurt in recession. it's not all positive. there is just a -- wow, i guess when you see american express, people think it's going to be a messy quarter. i think they could do well there are a lot of people who think, david, that it's just a matter of time and anybody who has credit risk, which is -- the stakes are going to be very high. >> well, there's continued questions in terms of the consumer, right? >> right. >> and weather they're going to be to withstand what may be job losses and/or -- again, that goesto the heart of the question overall are we really going to see significant job losses yes. we see cutbacks at certain

companies, technology-focused companies that bulked up enormously over the last year or two years. are wages going to come down in a way that's going to hurt the credit quality -- >> conagra's prices have fallen. wages are up but that number on friday did indicate that you could have a level off. look, i mean, there's some hawks in the fed that want to wreak a little havoc but i think that jay powell has got a good command of things and there's room i don't know how to get conagra's prices down, other than someone else come in underneath them and just say, listen, ours is every bit as good the ultimate one that has been able to do that is costco. their kirkland brand is a trade-up, and costco stock is starting to make a move. that chart does not reflect the move in the last three months, it's starting to come back

carl, i think i look at all of these companies and it's just a question of, you got this -- you've got people who say, listen, you got to buy free port because after we're through with the recession you buy copper no, you can't do that. no one can see through a recession. you can't say this is the time to by tech, because all the -- no people don't have that patience. they don't say something. it's a podcast, darn it. >> if you look at, say, s&p discretionary versus staples, you're not seeing some kind of run to scyclical it's not happening yet. >> i saw caterpillar number cut -- i didn't mean to hit you with a pen >> unlike that poor guy -- you threw the phone at him 25 years ago. >> he had it coming. >> i'm sure he did. >> i only threw phones --

>> this was before cell phones. >> a room full of spare phones. >> this was a big rotary phone. >> those go flying and that's a terrible waste of a keyboard look, you have -- citi raising -- there again, that's someone who says the fed is going to take rates up, sales are going to go down and then sales are going to go up and you have to anticipate that. my experience is being that -- you anticipate, you're basically going to lose a lot of money you can't anticipate particularly in tech i see people buying microsoft today. they think it's the -- it's over well, if microsoft was going to say something negative, it's not over. >> let's get to bob pisani this morning. >> we were up fractionally on the s&p. we're flattish now the s&p is up 1.4% to start the

year that is not bad and better than a lot of people predicted. and the sector that is were laggards last year are tending to do a little bit better this year not right across the board, so, for example, look at the sectors here consumer discretionaries is tending to do a little bit before, technology doing a little bit better, health care which was a comparative winner last year is lagging a little bit this year. it's not perfect, but, you know, the inverse usually works here take a look at where we're at. there's a lot of traders who don't want to believe the fed and a lot of conflict in the first half of 2023 because their soft landing is starting to gain some adherence lower rates and lower dollar and then you have people like bostic yesterday saying we're going to raise rates above 5% and stay there for a long time you expect them to come out and say until hell freezes over. they want to get this point across, we're not going anywhere for a long, long time.

the market wants to believe that the fed is using steale or old data and that eventually sometime down the road is fed is going to blink if the cpi is benign, we'll get another move up in the market. it's hard to find the leadership, a little bit of what -- wondering around in the wilderness the recent market leaders here, the cruise lines did well, alphabet was $90 yesterday, i was doing something on that, and, look, it's just back down here, 3 or $4. hard to get leadership in. but there is some general patterns here. the comparative gainers of the 2022, they're tending to be the ca comparative laggards of 2023 chevron was a big outperformer, johnson & johnson, merck, exxon.

they tend to be trading to the downside and stuff that was the other way around, the comparative laggards of 2022 are the gainers of 2023. you see nvidia amazon, terrible 2022, all trading to the upside. when people are confused, they turn to the old saws the s&p is up 1.4% that santa claus rally, that was positive that's a good sign and then we had the first five days barometers. when the first five days are up, january and the rest of the year tend to be up. that was positive. now we get the january barometer. as goes january, so goes the year we don't have that one yet but two out of three ain't bad back to you. >> let's get a look at the bond report today powell under our belt this morning and we await cpi on thursday got yields up across the curve two-year back to almost 4.25 and

the ten-year, 3.58 or so we'll be right back. ♪ 92% still active? seems high. seriously? it's just a bike.

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watch oil today hovering just below 75. we've been watching for that potential bid, as jim said last week in the high 60s, low 70s. ft with a piece today arguing that analysts see $100 a barrel looming again. we will watch it acy at meantime, dow almost extlfl we're back after a break home mo. (laughs) spare bedroom. why not both? use the u.s. bank mobile app to apply for a home improvement loan. it's easy! wonderful alex! hey, that's what u.s. bank is for. anything else? how about a loan for a bigger car? our family is growing. awe. yeah, my brother's moving in with his five dogs. oh... heyo! and we're expecting. ahh! (dog sound) expecting what?

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jim, what's "mad" tonight? >> we have coterra, and nat gas is down very, very badly this has been, let's say, a bit of a torture merger, because natural gas is down a lot and because maybe caba wasn't as good as we thought but symerx is great. >> amazing story not at all what we thought going into the winter. >> nat gas is a great deflationary issue, and people don't talk about it, other than negatively, which i don't get at all. >> we'll see you tonight at "mad

money," 6:00 p.m. eastern time. we'll keep an eye on coinbase after announcing an extra round of layoffs stock at almost 3%. also, regeneron, live from jpmorgan health care, with the dow up 70. this is ge aerospace, advancing flight for future generations. ♪ welcome to a new era of flight.

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good tuesday morning welcome to another hour of "squawk on the street. i'm carl quintanilla with morgan brennan and david faber live at the new york stock exchange. we got through powell this morning at 9:00 a.m. without major waves. futures recovered, dow up 50 as we try to get back to 3900 getting some economic data across the tape and for that we turn to rick santelli. >> wholesale inventories, our final mid-month read is replaced by up 1% remains up 1%, which is the best level, meaning the biggest month-over-month change in august in terms of inventories we know inventories have taken a bit of a hit as many entities, of course, were over

inventoried, letting them dwindle a bit. wholesale trades for november down 0.6%. we were expecting a positive number there down 0.6%. actually is the weakest level going back to july when it was minus 1.5% definitely a disappointment there. we see that yields are close to challenging yesterday's 3.60 high yields and tens backed away a bit. below the market, good support, around yesterday's lows, around 3.50%. morgan, back to you. >> thank you. we are 30 minutes into the trading session. here are three big movers we're watching oak street health, surging after reports said cvs is exploring options to buy the medicare focused company for upwards of $10 billion. you can see oak street up almost 27% right now. cvs is down 2.50%. norwegian cruise line with

overcapacity the cruise liner's stock is down 2% down nearly 40% over the last year and finally, warner bros. discovery, goldman named the company its favorite media stock this year. bank of america also bullish, reiterating its buy rating on the stock, saying 2023 will be the beginning of a growth and deleveraging story for the content creating company you can see those shares up 4.50%. >> having a good year so far fed chair powell participating in an international symposium focusing on central bank independence our steve liesman joins us now to tell us what he said. steve? >> fed chair jay powell making a strong case to stick to the dual mandate. the fed's independence depends on it. speaking of stock, made limited comments on the economy, saying that price stability is the

bedrock of the economy and offers the measure of benefits over the long term he went on to say that restoring price stability with high inflation can require unpopular policies, at least in the short term but the fed must continuously earn its independence by delivering on those mandates of maximum employment and price stability. preserving fed independence, he says, means we should, quote, stick to knitting our resist the temptation to, quote, broaden our scope. he did make some comments on climate change, saying that policy should be left to elected officials. among his other comments on this, he also said that the fed should limit any issues on financial stability -- on climate change to just financial risk or assessing financial risk and it's inappropriate for the fed to use its tools to promote a greener economy. he said very pointedly, we are not and will not be a climate policymaker. one quick things amid a downbeat

report, the mifb survey showed good news on inflation with one of the biggest declines on record on plans of small business this tracks with the cpi report. just some good news ahead of the thursday report. there's the data those raising their sell prices fell 8% but those planned to raise prices is the third largest drop in the 50-year history. >> definitely worth noting speaks to what we've been seeing, emerging trend around the data in general, steve, and yet fed officials, a steady drum beat that they're going higher for longer that has not changed and yet financial conditions have continued to ease a little bit with the expectation, the equity market in particular, that the inflation data is turning and, therefore, at some point the fed's going to turn, or at least pause. we talk about it every day, but

why still this disconnect? what does it mean for the fed in terms of having to tamp down what stock investors are doing >> you know, it's interesting. powell did not use this opportunity, morgan, i think you're kind of alluding to that in your question, he did not use this opportunity to redirect the market i don't think it means he's happy with what's been happening with financial conditions. but he obviously wasn't exercised about it enough to make any comments on it. you're right, the two-year yield, for example, has come down quite a bit it came down with the data as you note, fed officials did not change their comment tear on it it's interesting to me that this nfib report came in in the way it did it's indicative of reducing price pressures in the economy, though in some cases those price pressures remain elevated. somebody yesterday, morgan, wrote that investors may just be bored with this commentary from the fed. it doesn't seem to be having the effect it had previously

you know, maybe it's one of those things where you get -- you gain an immunity to the medicine remember the fed did a whole thing in june and july, and then of course with the chairman's speech in august at jackson hole that really got the market's attention. it did tighten financial conditions but now we're not seeing that result comments by bostic yesterday did turn around the stock market, but not much of a move, if at all, in the bond market. >> interesting yeah i saw hatzius argued if fed and inflation slow, the fed may be more tolerant to raising. steve liesman, thanks. let's turn to coinbase, cutting 20% of its workforce in second round of layoffs. the stock has performed well today, up 4% kate rooney has details. good morning, kate. >> good morning, carl. that's right coinbase is blaming the crypto market downturn and broader macro environment for the latest round of layoffs cutting about 950 positions. it's the second major round of

layoffs for coinbase back in june the company let go around 1,000 people, 18% of its workforce at the time and cited a need to manage costs and said it grew too quickly during the bull market. ceo brian armstrong telling me, looking back, he says, we should have done more when it came to layoffs, but he says the best you can do is react quickly once information becomes available. that's what we're doing in this case armstrong also underlined the company's shifting focus to operating efficiency and doing more with less, as he put it the move will add new restructuring costs in the first quarter. overall, should bring operating expenses down by 25% coinbase also expects ebitda to stay within $500 million and pointed to renewed cost discipline across silicon valley and tech we've seen a handful of tech companies, including amazon and salesforce, rein in spending through similar job cuts he talked about some of the recent damage in crypto markets

that's been a drag on coinbase's business and investor confidence he called ftx's downfall a black eye on the industry, adding there's probably more contagion onout there. he said scrutiny on crypto is a good thing, but now there's a lot of fear. market shares are up this morning but down 80% or so in the past 12 months back to you. >> kate rooney, thank you. looks like they're up 4% right now. let's do a deeper dive into the name with oppenheimer. owen, thanks for being with us today. why are you bullish on this name if there's more contagion to be had and in the near term it seems coinbase has not been immune to the pain of withdrawals and less activity and everything else we're seeing play out in the cryptocurrency space? >> yes first of all, thank you for having me. i agree in the nearterm the whole industry is going through

a crisis of confidence when we look at the trading volume, it remains very weak, especially after the fall of ftx. longer term, if you believe in this technology, if you believe in this industry, even though there are a few survivors, given the strong balance sheet of coinbase, i think coinbase can be one of the few remaining survivors. so, at that point, if they can make it to the other side, that can become a very big company in this space that's why we remain bullish longer term on coinbase. >> when is the other side? >> that's a good question. so, going back to the$500 million lost guardrail, given the -- whatever -- 1,000 job cuts, we estimate coinbase can cut $1 billion core expense in 2023 even though we assume they burn $1 billion every year, coinbase is about $6 billion of liquid assets they can still maintain the

operation for six more years -- for six-plus years a normal crypto cycle is six years, but based on our math we think we can get through this period >> you know, for a big part of last year, owen, the big talker was how these firms were going to diversify revenue streams is that still intact and what kind of head count do you need to do it? are the areas in which you would diversify changing this year >> that's a good question. i think that's one area undercover back in 2020, second quarter of 2020, trading revenue was 20%. in fourth quarter of 2022, we expect -- we estimated it would go up to 40% in 2023, we think it will even exceed 50% of total coinbase revenue. so, if you cover the name of their stock, you just look at the net income, you realize, oh, you may feel like this is a

brokerage firm instead of an exchange so, it has been going through -- coinbase is diversifying away from trading revenue. >> in the case of coinbase, as you see this evolution, you see this diversification take hold where revenue is concerned, you cover the more traigsal, dare i say. how does coinbase and other potentially remaining players in this market, once the dust settles, how do they look compared to those more traditional exchanges? do those regulations start to, i guess, become more similar >> yeah, i think the regulation would become more similar. and i think the one big question in the industry right now is, are these tokens securities or commodities? that's a big debate. we'll let the regulators go through that back to your original question, how would they make it through to the other end

i think diversification into nontrading revenue will be the key. they can increase interest revenue, they can go into stablecoin model, they can also become a technology provider but going back to the traditional exchange model, one thing they would do is to not rely on trading revenue. and expanding to other is services like maybe data or payments and some other services that can help the business model longer term. >> okay. we'll see how it plays out owen, thanks for joining us. >> thank you. as we head to break, here's our road map for the rest of the hour shares of virgin orbit are getting hammered after the first ever rocket launch from british soil from the uk failed. we'll tell you what went wrong the irs is back in the cross hairs, at least one of the first legislative moves for house republicans was to cut funding for the agency what could that mean for your money? and we're live from jpmorgan health care, a conversation with

the chooef of regeneron is coming up. all that and more after the eak.

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that and the paycheck. health care conference in san francisco. that's where we find meg alongside another special guest. >> dr. len schleifer joining us. good to see you. >> good to see you.

>> it seemed to be over the miss with your big eye drug what were the dynamics there some folks said you said it was temporary but they said maybe increasing competition >> have in mind that sometimes the situation like this where warren buffett would say, occasionally they would put a company on sale. i think that's a little bit of what happened yesterday. we had a quarter negatively impacted by some transient activity related to complex co-pay situation it's been remedied i don't think that has -- should have any impact at all on the long-term trajectory of eylea and high dose. >> eyelea is a drug you get injected in your eyeball you have a high dose version so people wouldn't have to do that so frequently. >> yes. >> what are the prospects for that drug? >> we're very excited.

we've given maybe 60 million injections in people's eyes, 60 million. that's a lot it says a lot about the product's use and its safety but even sew, poking the eye is still something you'd rather have less of, less frequent, if you could get the same benefit with the same safety that's sort of what our data suggests so, we've submitted our application to the fda we're hoping that we can get that approved, launched and out to patients in the second half of the year. >> another part of your pipeline you highlighted is next generation covid antibody drug of course, with all of the new iterations of omicron, we don't have any antibody drugs left in our arsenal. tell us about why this one's different and why it could work better. >> yeah, it turns out there's a battle going on, okay, between the virus and humanity and occasionally the virus was really ahead humanity's getting a little better with vaccines and therapies and so on. but the virus is now trying to catch up by basically it's

mutated and now resistant to antibodies most antibodies that even you make in response to a vaccine or what -- you still take your vaccine because there are really good benefits to that. but also antibodies that you might get from actually being infected with covid or that you might be given therapeutically with antibodies like the type that regeneron makes, so-called m monoclonals. we've been searching, ourteam has been searching, and they found a one in a million antibody, a very, very rare antibody that seems to have -- take care of this virus, neutralize it in a very potent way in every known variant t date because of some of the technical aspects where it works, we're pretty excited we're going to work quickly, get itit into patients as fast as we can later this year and hopefully make it available. unfortunately, we actually believe that covid is going to be around for a long time.

so, we actually are thinking this is a long-term ability to help patients. of course, that's really other focus. >> one thing we saw at the height of the emergency stage of the pandemic was unprecedented regulatory speed, fda working with companies to get vaccines out there faster than we've ever seen how is that now that the urgency seems to have come out of our urgency to covid >> i think the fda will adjust the urgency based on what they're seeing in the real world. how sick are people? how are the hospitals filling up or not i don't think the fda is going to be a barrier here we have to work with them. occasionally they can have a little hesitancy we've had some -- we've had some clashes with them. at the end of the day, i think we're all trying to do the same thing. make sure we get safe and effective products out there as quickly as possible. but the race in this one, we think, is a little different we want to get it out as quickly

as possible, but we're really in this for the long haul because we think the virus is here for the long haul. >> we will ask the doctor about those clashes and timeline i want to ask you a question we're talking to business leaders about is the chaos we saw over the weekend in the house of representatives, choosing the speaker what precedent that might set going forward how you think washington affects your industry >> you know, i watched all that. it's sort of -- sort of the theater aspect was interesting to me, being a kid that grew up in queens, i spent a lot of time in schoolyards and it looked like there was going to be a school yard brawl there for a while. at the end of the day, one can talk a lot about the regulatory environment, the political environment and so forth for our industry and it does matter but it really matters more in the margins than people think. what we all will agree on, republicans,democrats, independents, is that people need good drugs, they need

access to these drugs. we need to support an innovative industry and that's the bottom line so, we can operate in any environment. i must say that it is a little disappointing to me that despite the great things that the industry did, based on decades of biomedical research, to produce diagnostics, therapeutics, vaccines, literally you could argue miraculously saving the world, yet there are still people who say we're terrible, we're evil and all that that's a little frustrating to me and i wish we could get over some of the rhetoric that goes on but it really doesn't matter who's in charge in washington. we can work with them because they know we can deliver important things for americans. >> do you think that response to the industry is completely unearned i mean, some companies have different pricing policies than you do >> yeah, i mean, our biggest drug eylea, we've never raised the price for over a decade

since we launched it we're proud of that. we try and price according to the value we deliver but, of course, this is a very hard business. it isn't like we just open up the refrigerator when we need a new drug this takes decades regeneron has been around -- it's almost our birthday this week is our 35th irthday. it took 25 years, 25 years in existence, and before we actually turned a profit that's -- that's a hard business model. >> right speaking of that milestone, i think you are among the longest-serving ceos of publicly traded company. >> that's true. >> 32 years. >> i think i'm third in the s&p 500. warren buffett, i'll never catch up to him. he'll be around forever. and maybe the ceo of blackstone. >> i want to ask you also about the inflation reduction act. washington's focus on your industry a lot of companies are suggesting that will actually change the way they think about developing drugs maybe shifting their focus for pills for cancer to biologics.

does that make sense to do >> no. it's nonsense. i think that's a lot of talking points and i just -- i'm sorry to say, i'm a bit of a maverick on this. it's not how you develop drugs you can't worry about what the pricing environment's going to be, what the inflation reduction act, the negotiations. this is a hard business. it's not like we have a choice of ten things and we can work on five here, five there. there are a few nuggets you get every couple of years. and you got to follow the science. and i get insulted when people say we're not going to work on a cure for cancer because of the inflation reduction act. that's pretty ridiculous that doesn't mean the act is good for the industry. it doesn't mean it won't put some pressure on research and development, but that's the tail wagging the dog if you say you're not going to cure cancer because of this act. that's just ridiculous. >> in the short amount of time left, i'm going to ask you a hard question to answer briefly, but most exciting science going on right now in drug development? >> you know, i think it's some

of the stuff that george presented yesterday. he was able to show that you can take a cold tumor, a tumor that's not immunologic responsive or active we did this with late-stage prostate cancer patients who were destined to die you can give this incredible drug that he came up with, this novel costimulaty and turning a cold turm into a hot tumor, allowing your immune system to take it on to me, that's the biggest news i've heard at the conference. >> not biased at all. >> not at all. >> great seeing you. >> happy birthday to your dad. >> my dad is 70 years old. if he's watching, happy birthday, dad. we have a lot more coming up from jpmorgan next hour, including novartis. >> thank you and happy birthday to your dad.

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some decent breadth in the markets today, alaggered we're above 3900 and the dow is up 100 stay with us

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welcome back to "squawk on the street." i'm contessa brewer. here's your cnbc news update thousands of people in california are fleeing their homes as the storm battered the state. intense flooding left at least once dead. crews made dozens of water rescues overnight. more rain is forecast for california as tens of thousands of people remain without power. the justice department is

examining a small number of classified documents found at president biden's former private office those documents from the obama administration were discovered in november in a locked closet of an office that biden used after he'd left the vice presidency the white house says it's cooperating with the doj and returned those documents the day after they were found. thousands of protesters marched through the streets of brazil demanding the prosecution of rioters who stormed government buildings meanwhile, the status of former brazilian president jair bolsonaro faces growing scrutiny with the former right-wing leader saying he was admitted to a hospital in florida. the situation we're monitoring carl >> contessa, thank you checking on the market about an hour into trading, quite a whipsaw, 100-point range dow back into the red. we've been within 10 points or so of 3900 paul tudor jones on "squawk" this morning and he weighed in

on the fed policy and fed chair. >> trying to land a capsule on the moon as perfectly as you can in what is obviously the most challenging economic environment we've had in 40 years. >> joining us this morning, rbc capital markets laura and bar cli's investment bank, who has the lowest price on the street laura, i want to give with you i'm looking over your outlook for the year, preferred small caps, stocks caught in a tug of war, 4100. sounds like you're looking for a bit of chop. >> we are. look, i think that is emerging as the consensus views whatever people's price targets are for the end of the year, i think more strategists say we're going to start out with a negative market, volatility to start the year and, perhaps, have a better second half. and there's risk in that consensus. it is how i see things playing out. we've been choppy the last few days we've been choppy today.

i think investors are going to have a tough time digesting the onset of a more challenging economy. historically markets do encounter choppiness and declines, if you go back to the '70s ahead of final fed hikes. we also have to work through earnings revisions that are way too high i think those are all headwinds. i think we'll ultimately move into recovery but we have some work before we get there. >> you seem to be a little more convicted about the potential for getting caught offsides. is this year-to-date at least optimism and this oxygen that the soft landing thesis is getting, is that overblown >> yeah, that's our core view, carl our opinion is that the market has been clinging onto this hope for the past few months of finding some way to get past the two months of last year and find path to recovery our views that we are mispricing, especially recession risks which are significantly higher today than they were, let's say, six months ago.

so, different elements you can look at in the market to come to conclusions. for example, if we look at the spread between equity risk premium in the market compared to where the ism is, which is continuing to fall, that is an unprecedented wide levels, which means they're not being compensated for risk if youlook at, for example, we have optimized baskets expects to perform well over business cycles we see a very interesting divergence the last cycle basket has done well but the early session basket has done nothing in the last 10, 12 months divergence is extremely wide the takeaway is that equity markets remains very optimistic. we are underpricing the risk of a recession. that shows up in earnings. for example, we have earnings, which are lower than what consensus estimate is. that number has continued to come down systematically over the last three months. just from december to january

it's down another three to 228 so, we are optimistic, but in either scenario, the bull case, bear case or best case, we see earnings declining compared to '22. >> lori, you have s&p price target for year-end of 4100. what gives you conviction that we're going to be ending the year higher given the fact that we're sitting here having this conversation about all of the uncertainties and earnings revisions and chop and economic question marks and everything else >> well, it's a great question, morgan i would say two things in terms of earnings, i'm actually -- i've been meaningfully below consensus for quite some time. my number is 199 we were at 208 for most of last year, at least the second half one of the things we think the bears are really missing is that you tend to see the equity market itself in items of pricing bottom about three to six months before earnings forecasts stop going down. that's work we've seen as well

received by investors. i would also say -- my colleague mentioned the consensus number is around 228. i think the buy side consensus has been more around 210 that's what i've been picking up in my conversation i think there's wood to chop in markets as numbers come in below expectations but whose expectations are you talking about? the buy side hasn't believed the sell side's numbers for six months i don't think you necessarily have to look at the 228. the last thing i would say is the conversation about multiples is really, really interesting. our economists think we're going to get a couple of fed cuts in the back half of the year. not a ton but a little bit after we move up to about 5.25 in the first half if you get a little bit of relief in terms of interest rates and if we see inflation come down a little bit, the historical playbook tells us we should get a little bit of multiple expansion nothing heroic but a little bit to offset decline in earnings. i think the combination of markets bottoming before the earnings and also getting a little bit of that expansion can help us get higher by year end >> so, you know, it's

interesting. if i hear you correctly, though, those who were saying we're only going to have 200 in s&p earnings this year, who have been negative as a result, you would disagree with them being particularly negative on the market at this point >> i think that we always in markets have to talk about what's priced in and one of the things we've seen, if you look at equities' performance on a year-over-year performance it's baking in a precipitous drop on earnings on a year-over-year basis i can't tell you how many conversations i've had where they say the sell side is out to lunch and their numbers are way too high and they don't know why they haven't come down that's not a conversation i had yesterday. that's a conversation i had back in july and august so, i think the buy side has already baked a lot of that into their stock prices probably not all of it, but i think a fair amount of it at this point >> yeah, i think adam parker's note last week was titled, watch

the sell side and then do the opposite i'm wondering if year-end is in the 3700 range, do you expect some very dark moment where, as others argue, you do get down to 3k, let's say, on the s&p? >> carl, we don't think -- the problem going down to 3k is relatively low, but to assume it's want a linear path. in fact, our view is we have to test the 3400, 3500 range over the coming months, which is a level the market has shown it's willing to defend, which translates into roughly 15, 15.5 in terms of multiple on earnings that's where we think -- by which time we will have earnings also come down substantially and the fed, hopefully, pauses and we start going from there. going back again, the interesting thing is multiples is a question on which least amount time is spent the way we frame it is that multiples are really a function

of growth, inflation and rates, depending on what kind of environment you are in you can also look at rate equity correlation sometimes. right now we think those are the three variables which matter and fair value at this point is 15 times what we know today in terms of where we are. and the market is trading at 17 times. a few weeks ago it was 18 times. our view is that we need to test that low of 15 times before we ultimately expand to 18 by year end. that's assuming a fairly aggressive drop in inflation and rates for ten-year staying at 3.50 and growth coming down to what we think is a shallow recession. a lot of things to come together even to get to that 18 multiple. so, we are tasked with a zero interest rate environment. you cannot use multiples which were pre-covid or in the older regime. >> a lot of those analogs just don't make sense in this new

chapter. we'll see what happens the picture will start filling in on friday thank you. >> thank you coming up, virgin orbit shares are plummeting following the failure of first launch from the uk we'll break down that breakdown. a quick programming note later today on "closing bell," world bank president david malpass has the latest forecast on the global economy. press downbeat that's at 3:00 p.m. eaerstn. ? should we go check it out? yeah. we get to stay here all weekend! when you stay at a vrbo... i call doing the door code! ...the host doesn't stay with you. it looks exactly like the picture. because without privacy in your vacation home... it's a full log cabin guys. ...it isn't really a vacation... we can snuggle up by the fire. ...is it? wow, oh my- [birds chirping]

the street." shares of sir richard branson's virgin air is falling after virgin orbit's first launch failed to reach orbit. if successful, it would have been the first orbital launch from the uk and first commercial orbital launch from western

europe they say at some point during the firing of the second stage engine with the rocket traveling at more than 11,000 miles an hour, they experienced an anomaly. amid higher interest rates and a number of missed milestones and delays for certain companies, virgin orbit, virgin galactic's sister company, conducted just two launches last year shy of its initial forecast at the beginning of last year of up to six it had just over $71 million of cash on hand at the end of q3 with branson's virgin injecting another $25 million in the company in november. since going public on the nasdaq back in december of 2021, vorb is now down more than 80%. it's down 16.5% right now. as a reminder for all things space, can you check out my podcast "manifest space" where you'll find a treasure trove of information, including an

interview with the ceo of virgin orbit, dan hart, where he talks about how crucial expansion is to virgin orbit business model long term and conversations just recently, guys, with ula's tory bruno where he talks about launch market and capacity versus -- or capacity versus demand and the fact that somebody like tory bruno, who has been doing this for a number of decades, he doesn't see a future for so many of these small launch companies over the longer term, says he expects there's going to be two. virgin orbit has already had a number of launches, by the way, they have reached orbit successfully this will ground them for some time as they review what went wrong. >> what are the cash needs of the company? you mentioned they've already gotten a bit of an infusion. i would think this doesn't help. >> this is not going to help this has been the concern for all of these newer space stocks that have gone public in the last couple of years,

particularly the rocket makers in general there is now such an increased focus, especially as the stocks have sold off so dramatically, on cash on hand. virgin orbit has been generating revenue up until this point. they did get that infusion it's going to depend on how quickly they can figure out what went wrong here and how quickly they can sort of instill confidence to go back and try a launch again we'll see. it's been interesting for virgin galactic, which is a different business model doing different business things but this has been the focus for investors. >> that stock down 80% since it went public. let's check out shares of charter, cable giant goldman is naming it a top pick for 2023 saying it expects the company's broadband net adds to show improvement in the new year. stock up a bit. first, though, our brandon gomez has a look at what is still ahead on today's show.

>> hey, david. our cnbc partners at just capital asking america, what exactly is it that makes a company just is it pay transparency, job creations, sustainability? rfmi cpaesal the top five best peorngomni on the just 100 on "squawk on the street" after this break what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay.

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welcome back to "squawk on the street." i'm dominic chu. stocks have been moving between gains and losses, but we are now drifting down about a quarter percent on the s&p towards the lows of the session this morning. but now the tech sector is what we'll sector is what we're going to focus on. we're tracking some notable laggers, especially when it comes to computer chip stocks. on the semi front, one of the worst performers, at blare downgraded that to a market perform. also, broadcom is coming to late monday declines, while apple aims to replace some of the bluetooth chips with some of its in-house designs semi last some steam late in the day. back over to you guys just capital announcing its

100 most just companies. cnbc is just capital's media partner. brandon gomez has the top five >> that's right. this year, just capital are recognizing companies that are doing right by five key stake holder groups. workers, communities, shareholders, customers and the environment. just capital collected or sourced nearly 250 raw data points around 20 key issues, identified by the american public as priorities in assessing just business behavior of the companies that just capital came from the 1,000, these are the just most companies. ticking off the significant jump 99 to fifth overall, is truist financial. the company propelled higher by its commitment to pay fair wages and work with a group source of suppliers.

contributing over $1.4 billion to the u.s. economy. four, accenture. offering disclosures of its own security protocols and limiting retention of users' personal information. coming in third, microsoft the software company formerly held the top spot from 2019 to 2021 microsoft is one of only 10% of the russell 1,000 companies to offer 12 weeks of paid leave for primary and secondary care givers they maintain ambitious climate targets. number two, nvidia the chipmaker leading on issues that matter to workers performing detail analysis by gender and race and ethnicity. it's one of a few companies that

report demographic data. that and 22 weeks of paid parental lead, shows why nvidia has been in the top ten of the just 100 the number one company is bank of america it's risen from 104 in 2018 to number 5 in 2022, to the top spot this year leading on worker issues, bank of america has committed to raise its current minimum wage of $22 an hour to $25 by the year 2025. the company has developed sustainable financing products and eliminated barriers for hiring and prioritized an independent board of directors for the full 100 list and video featuring the top ten, you can head to cnbc.com/just-100. >> pretty interesting. when they talk about the top issues to americans talk about, is he talking about?

>> the top to just is the workers. worker issues making up 44% of the just 100 score the number one issue is paying a fair and living wage just beyond that, we're talking about creating jobs here in the u.s. and then, beyond that, acts ethically at the leadership level. how do you define ethical leadership i think we're going to have that information in the months that following, given a new cycle of layoffs and cutbacks how companies conduct the layoffs. how they play that out long-term, is how we measure whether a company has acted ethically or not things that were talked about this morning and just capital is doing the work to measure here >> fascinating to hear how they are trying to be as transparent as possible in setting the metrics and judging the companies against them brandon, thank you coming up on "tech check" we'll have more from the jpmorgan health care conference,

including news from the ceos of medtronic and novartis lily! welcome to our third bark-ery.

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welcome back who cometh for the tax man the first bill to pass under the republican majority, set to strip the irs of $72 million why the irs is in the crosshairs of a funding fuse. >> there's one thing that republicans can rally around, that's reigning in the irs the new gop majority passed its first bill last night, that would slash about $70 billion for the agency republicans said they are committed to delivering on the campaign promises. >> there's bipartisan agreement that there's problems at the irs. the first step is to draw back the dollars that were randomly placed and start over. democrats vow to defend those dollars. janet yellen said enforcement would be at high-income

households it has 80 less millionaires than it did a decade ago. rescinding the funding for the irs would add $114 billion to the deficit over the next decade now, this bill is dead on arrival in the senate where the democrats are in control and president biden warned he would veto it if it did land on his desk the money for the irs, is part of the inflation reduction act the irs is supposed to outline the plan for the funds and the priorities are customer service, i.t. modernization and enforcement exactly what republicans are worried about. >> thank you before we let you go on "squawk on the street," instead of checking a stock, let's look at natural gas it is down it was down 6% early in the session. o down over 8% we know about the warmer

weather in europe. and the gulf line pipeline may be contributing to what is an increase in the supply curve that's going to do it for us on "squawk on the street. "tech check" starts now. good tuesday morning, welcome to "tech check." coin workforce. and a media stock resurgence we will break down calls on warner brothers, at&t and disney later, we are live at the jpmorgan health care conference. the ceos of medtronic and novartis are joining us this hour after a muted start, we're seeing the major indexes mov