we'll talk to him tomorrow. that's going to happen at 8:10 e eastern time tomorrow. let's take a kwek check on the markets. dow up 175 points, s&p 50025 points. bitcoin at 34,000, maybe $35,000, still moving. make sure you join us tomorrow. "squawk on the street" begins right now. ♪ good tuesday morning. welcome to "squawk on the street." i'm carl quintailla with jim cramer and david faber. the bulls trying to put an end to five straight days of s&p losses. yields are stabilizing, which helps along with solid earnings and raised guidance from 3m, coke, verizon and ge. our roadmap begins with the slew of corporate results. gm, 3m among the names crossing the tape. microsoft and alphabet tonight.

>> plus we're also watching jamie dimon. he called out central banks saying they've been, quote, 100% dead wrong. we're keeping an eye on chip stocks, nvidia and amd planning to launch an armed pc chip in 2025. let's begin with the markets and the industrial earnings parade. jim, i was trying to think which one of these would interest you the most. i'm guessing ge. >> and it is. what happens is larry culp finished the wind and let's say power business much better than i thought. therefore, the spinoff will look good. there's always been concern that that business would be a dud. there was never, ever going to be a growth business. instead, it seems like it will be the esg business of choice for people. david, anyone who thought let's say the long on money short on time travel situation is over and thinks there is a great

aircraft demand, wrong. ge and rtx proved that the demand for planes is probably as great a secular story out there. >> free cash flow as well, they say is going to tend. this is the quote, even better, year over year. company wide you get a low teens growth of revenue which is not bad and you've got a lot of estimates moving up here. >> the journey is over in terms of a company that is what it looks like. it's just earnings per share. it's orders. it's terrific. it took culp a long time, by his own admission. but it's clean. the stock deserve to be higher. let's throw in rtx as part of the aerospace trade. it turns out rtx does have a pulse. it is alive and thriving. that's aerospace and industrial defense business. aerospace is the star of the day, not just ge.

>> accelerated buyback over there, 10% game. i think we're going to hear from hayes this morning. >> one of the things that's great about greg is he puts his money where his mouth is. he thought it was a travesty the stock lost $30 billion in the $3 billion charge. he's taking advantage of it. there's an element of candor to greg hayes that i think other companies, even in aerospace, david, don't really have. >> we've always admired or appreciated his candor. looking forward to speaking to him a bit later in the show as well. it's not as though they still don't have that engine issue. they do. >> they do. >> they're moving through it. the stock, as you see, got crushed in part on that, but it is now making up for some of that, not quite back to where it was prior, but certainly a good day seems to be in hand for rtx. >> verizon was a little better. we're talking about. >> verizon, ge, rtx, coca-cola. all these stocks will be up this

morning. >> i don't know, 2006. when is the last time you saw that stock up? >> verizon, i thought there was a lull in the market, price not allowed to go up. >> reverse camelot. >> 8.7% yield. down a little bit today. >> i have to tell you, carl, these companies are not enterprise software. they are companies that in many cases -- we'll get to 3m. into know you've got 3m. i'm not in that hour with mike roman, because i think 3m put together a terrific quarter. some of these companies we're actually cheering for. did you not want mike roman to do well? i think jim fitterly in the end, dow chemical is not going to be as bad as the headlines were. these companies generate a huge amount of cast. what's amazing is none of them are falling in the trap, will the fed do this? i'm covering my bond short. no, they're just making money

like they used to. proud of these companies. >> interesting. is it filling the gap x thing for the market? >> i think it is. they're selling at radical low multiples. you speak to james quincey. coca-cola is one of those companies, how did it get to that low? the answer is there's been multiple shrinkage every day. it may not end but because we have a bond day that's tame, you see how companies can do. >> we're going to hear from james quincey also in the 10. >> he's a delight. >> we finally got volume, up two, even with pricing up nine. >> he's also got shared take and they still have some supply issues. david, when you make a diet drink and ask james quincey, how is glp one? he reminds you they make a diet drink. >> some of the question is people's capacity to drink as much as they had previously or

im imbibe. >> people drink. >> agree. they're not necessarily fattening, so maybe people will continue to drink them and/or people who are not having glp ones are not going to be drinking. >> katry human beingity, morgan stanley said -- for glp. >> i missed that. >> you people people weren't storming the wegovy truck? >> no. there's still no lilly truck. >> man jarreau isn't approved for weight loss. >> i think this is a day where you don't have to talk about glp-1s even though someone did come out and say the hundred billion market. nvidia and glp, they trade together. >> given what bitcoin is doing today, the desks are talking about looking for movement in high momentum lanes like nvidia, like tesla, even coin and

bitcoin itself. >> that would mean everything is going to do well today except for intel. i'm not so sure that we should -- we are oversold. there's a palpable level of gloom. i think mark mahaney gives you that triple trough amazon story, greatest story ever told kind of thing. i like amazon very much. i like alphabet very much. other than new core, new core is the only company that didn't do well today. >> gm, also, let's not forget. what's the problem? >> this giuy shawn fain is in charge. does he get up and say let's take that one out. >> gm does pull their guide. cfo was on "squawk" today. barra says they will delay the evs in the chevy equinox and gmc

sierra. >> these companies are hostage. no one wants to admit they're hostage because it makes it, if you're on wall street, you say now i know why they sell at five times earnings. there's this guy named fain and he's more powerful than they are. >> losing 200 million in the third quarter, 600 million in the fourth quarter so far. >> they keep saying we're close. maybe they are closer. >> you'd hope they'd be getting closer. that said, in and of itself it was a pretty strong quarter from gm. >> yes, yes. i'm saying, when you speak to a lot of these companies -- i don't know if we're speaking of fitterling today -- they build a lot of inventory, selling a lot of inventory. what happens when they're done? >> you mentioned mentioned yesterday in the conversation we had with mike worth that perhaps there's a diminution in the demand for evs. they still think -- they have a

plan to sell a million beginning in 2025, but they pulled back a bit in terms of timing in ramping to that level. >> i think it's going to take california, carl, to say, all right, we're going to make it so there can only be evs in 2032 because right now the ev momentum is definitely stalled, and what's interesting is we always felt it would stall if gasoline -- if gasoline went up a lot, it would reignite. this is the time when gasoline has gone up and it's not reigniting. i don't know. i keep going back to musk's call. there was a bit of a cyanide tablet. >> it was definitely -- yesterday tesla was down, but it's looking up. gm said it's moderating the pace of ev production in north america to in part protect pricing, adjust to slower near

term growth in demand. they expect to exit 2025 with annual ev capacity of a million units. you just heard it. demand apparently is perhaps slowing a bit. >> if i were running ford, which i'm not, i would make it so that it's time to go hybrid and say, listen, we're making a huge commitment to the environment, putting our money toward hybrid. when the battery money comes totally from the government and we know we're in charge of batteries, not shawn fain, until then we're going to go all in hybrid which is incredibly lucrative. that would be my my travel tuft owns ford and i'm not going to be boeing in this one. >> some of the wires suggested gm was moving toward a tentative agreement with the union. mary barra did talk about the most recent offer on the conference call. >> the current offer is the most significant gm has ever proposed to the uaw. they demanded a record traffic. that's exactly what we've

offered for weeks now, a historic contract with record wages that have increases that are ub stanl, record job security and world-class health care. it's an offer that rewards our team members but does not put the company and their jobs at risk. accepting unsustainably high costs would put our future and the gm team job member's job at risk is something i will not do. >> by the end of the contract offer the majority would make $40.39 an hour, roughly 84 grand a year. >> ford's proposal, i can see it adds up to 100,000 a year. $100,000 -- should everybody make a lot of money? absolutely. shawn fain, some news reports say he's making up to $400,000. that's okay, too. given the fact, david, ceos -- this is where ronald reagan was unbelievably good. he also said the issue in the american corporate background is

that the workers make so much less than the ceos. in that sense i don't want to be too hard on feign. >> he did famously -- the air traffic controllers strike, remember? >> that was a moment. >> he also was the voice over for 20 mule team borax. i'm just saying irrelevant facts. if you go over and speak to senator warren of massachusetts, she will remind you and read you a speech that sounds like senator warren but was ronald reagan the gap between ceo pay and worker pay is not talked about enough. >> given this parade of earnings today as the shares of gm perhaps turning down, nonetheless, robert humm. >> he's good. >> yeah, he is good. >> he's citing coca-cola,

sherwin williams, kimberly clark, all in part benefiting from price hikes that seem to be sticking, even 3m said higher selling prices were a factor in that strong performs. >> coca-cola the most. >> is there going to be any sort of a reevaluation in terms of the broader market given the earnings we're getting. >> i think procter & gamble is the only company that says our brand is powerful enough. today we didn't get that. we have a lot of companies saying we can put through inflationary. in the end, the raw costs aren't going up. it's more individual different -- some labor situations and fuel. fuel is a bummer. >> that's an impressive premarket chart there. >> look at those companies. my father loved those companies, except for rtx. >> statistically irrelevant index. >> collins. remember he said beach front property? his is very quotable.

>> plenty more where that came from. first let's get to the meefrt this morning. hamas, as you may know, has released two more hostages and the u.s. is advising israel to delay a ground invasion of gaza. nbc's jay gray is live this morning once again from tel aviv. good morning, jay. >> good morning, carl. we heard from one of the hostages, an 85-year-old grandmother 24 hours after she was released. we saw her shaking hands with her captors before being turned over to israeli soldiers. when she talked about her time in captivity, here is what she said. she said she was treated well, given food, water and medicine. she did say she saw the network of tunnels in gaza, described them as spider webs and then questioned why the israeli defense forces didn't take more seriously warnings three weeks before the attacks. she said there was evidence and there was talk about these attacks and she doesn't

understand why there weren't israeli defense teams in place and ready for what happened. so like a lot of people in israel, they're asking how and why october 7th happened. we know that as far as the hostages are concerned right now, the idf is, we are told, working through multiple channels of communication right now. that means whatsapp, telegram, signally encrypted message services and sending messages to residents in gaza saying they will provide compensation for information about the hostages, how they are doing, what's going on in gaza. they are clearly reaching out to those inside gaza saying they'll protect them, they'll pay them for any key information there. let's talk a little bit about aid. the ministry of health in gaza saying, and i'm quoting here, there's a complete collapse of health systems in hospital of the gaza strip. they're saying the hospitals are

falling apart. they're saying there is no fuel and no fuel has been brought in. we know to this point 54 trucks of aid in the last three days have crossed the border crossing. the concern is that's not nearly enough according to the u.n. about 4% of what they normally see daily moving into gaza before the war. as for those hospitals, the ones that are still open, maybe a day of fuel left, carl. >> jay, we'll come back to you obviously often this morning and try to get a sense of what's happening there on this tuesday. jay gray in tell veitch. when we come back, jamie dimon's harsh words forcentral banks. we'll get to dana her, pulte, draftkings when we come back. at pgim we can help you rise to the challenges of today,

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and duckduckgo lets you browse like chrome, but it blocks cooi and creepy ads that follow youa from google and other companie. and there's no catch. it's fre. we make money from ads, but they don't follow you aroud join the millions of people taking back their privacy by downloading duckduckgo on all your devices today. i'm cautious. i don't think it makes a piece of difference where rates go up 25 basis points or more. zero, none, nada. i think if the whole curve goes up -- i want to point out the central banks 18 months ago were 100% dead wrong. maybe there's humility about

financial forecast. i would be quite cautious about what might happen next year. >> that's jamie dimon speaking out about the fed and central banks during a panel discussion in riyadh earlier today where we heard from david solomon and others. >> i don't think there's anything wrong with jamie calling the central banks out, but i do think the yield curve he could have called out. the yield curve is wrong. jamie speaks his mind and it's refreshing. i think a lot of people in the central bank business looked at the yield curve and made some decisions based on it. the yield curve has barely been as dead wrong as it is. short rates much higher than long rates, so let's be careful. i don't understand the callout as much as, well, look at the bank's balance sheets. look at bank of america. they're going to be fine. a lot of guys got it wrong. >> people want to talk about

bank of america a lot for a lot of reasons. >> -- >> -- >> nobody thinks bank of america is in any danger of any kind. although their net interest margin could get pressure -- >> yes. >> -- so much of a longer end they put on -- so much lower interest rates. >> you think jay powell is not a humble guy? everyone has humility. a lot of guys got it wrong. i'm just saying whether you got it wrong -- us and ford. done with criticism. >> okay. do you agree with the possibility that we could be 100 basis points higher across the curve? >> i do. i think the 30-year, unless they cut rates, the 30-year should go to 6%. i still don't understand given the risk of 30-year -- the risk of 30 days. the risk of 30-year is still not reflected in the 5015.

the 20-year is one nobody ever quotes. i know i called out jamie where this is one of the most perilous times in decades. i'm not calling him out on the idea that rates go higher. he was a gloomster. he's a roll up your sleeves guy. >> since hurricane has been in the mix. >> i think he also believes he may be underestimating geopolitical risk. he said that a number of times as well. >> he can decide that by deciding to run for president. >> see if that happens. >> he's said previously while he would like the job, he would never run for it. >> well, is it jamie morgan or is it jamie dimon? >> at this point it's kind of merged. >> the third. jamie morgan iii. >> we'll get cramer's mad dash, countdown to the opening bell, take a look at the premarket.

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rtx up almost 25%. accelerated buyback and, of course, greg hayes coming up in a few minutes here on cnbc. futures ilsostl lid on this tuesday. we're just getting started. don't go away.

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let's get to "mad dash" and then we have opening bell. >> what the great conundrum, we have great housing demand. it's secular. you can add any letter to it. pulte homes this morning comes

out, pulte group now, talks about how they have unit backlog at the end of the third quarter was 13,000 homes. david, you're talking about a gigantic increase in demand. 43% net new order increase, and yet they're not building more homes. when you talk to dow chemical, sherwin williams, you've got this weird conundrum. the fed raised rates to the point that you would think the price of housing would go down, the demand would go down which it's not. it means it's an intractable industry. they're not meeting demand, and at the same time they've made it so the customer doesn't have as much money because of -- >> monthly costs has gone up dramatically in the last year. >> it's not helping. what would have helped is if pulte would -- [ cheers and applause ]

-- housing is up 40% since 2019. that's the biggest pull, other than the supply chain problems that we've seen that are ratcheting up the cost [ bell ringing ]. >> it's a little loud. let's get the opening bell at the cnbc realtime exchange. at the big board, mcr celebrating the recent spinoff at the nasdaq global mow phi med verse, a china-based -- >> i can't think of something we want more than that. >> fx igin and headlines about xi meeting with the pboc and the unprecedented visit. >> a lot of things going on in

china. one thing not going on is a lot of business in the industrial sector. you'll hear that from dow chemical. look, they've got a problem in industrial construction. until they solve that, i'm not sure what they can do. i don't think i want to make a bet with china yet. it's not good enough. there's no turn in sight, and i think a lot of it has to do with the fact that, not the people, but the government seems to be uncertain about how to be able to do keynesian economics. they don't know how to do it and i think it's hurting their whole country. they've got 400 people in the middle class. it's not like they don't know how to handle the economy. >> on that note of china and the back and forth between our countries, nvidia is out with an 8k moments ago specifically discussing that late es est ban from the u.s. government.

october 18th applicable to processing of 4800 or more and designed or marketed for data centers is impacted immediately. a100, h 800 and l 40s products. these licensing requirements were originally to be effective after a 30-day period. now they say given the strength of demand for these products worldwide, does not anticipate the accelerated licensing requirements will have -- >> we came out last week -- we came out last week for the travel trust from my investment club and said, look, this is a problem. look, china is important for the long-term prospects, but i would say the stock was overly bullish this morning on the story about how arm and nvidia are making pc chips. that's not what we want. nvidia has always been at the forefront of let's try to figure out how this can be fixed while

evading the issues. when you're sending things over to china and suddenly you can't, you're obviously going to have to reconfigure where things are going. there's tremendous demand. i want to go back to what i said from the club. there has to be some resolution to china to make it so longer term there is a return to normal see for semiconductors in order for nvidia to make -- >> we know the foreign minister is coming to d.c., going to have a bunch of high-profile meetings. the sense is that's paving the way for a potential summit for the president and xi in san francisco in november. we'll see. >> i also think sullivan has to get involved. i think they've got to have real talks, the way kissinger would have talked. >> jay sullivan has plenty on his plate right now. >> you have to make it so it's three-front issue. you can't have it be ukraine, the middle east and china.

i think china, i'm no fan of the government there. i also recognize not everything is military. obviously they mill tir rise a lot of what we do. >> just to reiterate that, 8k that just came out from nvidia, they're saying no financial impact. however, china restrictions immediately as opposed to the 30 days originally. >> what's really clear is our government thinks this stuff goes right to the prc and to the pla most importantly. there's no denying you need these high-end chips to be able to have a strong military industrial complex. we can talk about that with greg hayes. i know people are very excited this morning about nvidia teaming up with arm. i'm excited about what david just mentioned. people are gaga that nvidia war wants to be in the pc business. we always knew that arm, their partner, was going to go into this.

there was no revelation. i thought people would be more excited about not giving a strong forecast. it was up nine, now it's up three as people understand the demand for data center, the demand for a.i. is as strong as ever. a.i. and glp -- gtp, glc, sold. >> you're past that already? >> i am. i'm talking about the old days. metal bending, the factories. >> soda. >> more than ever soda. supply chain going back to our friend phil lebeau, i'm still hearing supply chain. i thought we saw supply chain. >> i thought it was in our past. >> we'd be safe in supply chain. you were wrong. >> maybe if you want to come up with something, you still can. supply chain. >> james quincey is talking about supply chain. >> he is. i didn't know that. >> coke shares up 3%. listen, we've got a lot of the old names up, old, so to speak.

been around a long time verizon shares up over 6% on a better-than-expected quarter. revenue up -- >> is that blind squirrel. >> 100,000 phone net ads were better than anticipated. i think it was 17 billion. on the call, jim, there wasn't much one way or the other in terms of iphone 15 demand to pick up on as a read. >> are you ruining my narrative? are you letting the facts get in the way of my positive apple story? >> i checked the call -- i checked the transcript and there was not a lot -- >> i was surprised -- >> not a lot of color -- >> t-mobile, don't go there. >> let's not forget at&t last week very strong quarter as well and raised free cash flow

guidance. we'll see how t-mobile does. t-mobile did implement the significant lay aufs not that long ago. fixed wireless continues to be an area of growth for verizon. that's a limited market. it's where you're underutilizing your capacity in a certain area, your towers and things. but eventually you want to replace -- you want to have more capacity for people using their cell phones and new subscribers. so fixed wireless has a cap on it. they did add a lot. >> you take this one off the table in terms of -- it was worn down by the story about what could happen -- the forever chemicals. >> the lead cables. >> at&t was hit more than that. that story seems to have disappeared because it doesn't seem to have actually been a story. >> not all the guidance today is good, jim. hca, a lot of staffing expenses is going to be the s&p 500 laggardment danaher is lower.

glow worm not so great. >> it's funny. i was hoping for a thesis about health care that would be good that hca could turn around. it's been an abysmal stock. obviously not trading with una which did have a good quarter. >> danaher was the greatest stock for so long. what's happened? >> my travel trust just bought some. >> in this case it was an adjusted free cash flow miss. >> thank you. >> things are troughing. >> you can go back 20 years. danaher is one of the great -- >> i think danaher will be great again. they had some problems with diagnostics. i think they'll work through that. again, they did not fall off the turnip truck. that's a good chart. >> that's a really good chart. the last few years have not been particularly good. >> danaher, disney. a couple of bad ones for the trust. i like to talk about the bad

ones. >> you don't own spotify in the trust. >> no. >> i bet you wish you did. to day /* day it's up 7%. subscriber growth was very strong. you can see the rebound in spotify shares. >> do you want other good ones that the trust doesn't own? it doesn't own rtx. that's a mistake. what do you want from me? >> spotify, that's the first quarterly profit in -- since 2021. gross margins beat up almost 200 basis points. >> i think a lot of us are trying to figure out why that wasn't taken off. they're not reporting the way other companies report. they're not making money -- another company that's about to have an earnings breakout is draftkings. morgan stanley comes out and says -- it's the first time ever draftkings took market share over fanduel at 31% of overall

gross revenue, fanduel had 30%. even though fantasy is miserable because of all the injuries. >> an upgrade from moffitt today. >> that's an inexpensive stock. >> the other interesting upgrade was piper on amex. they say it's trading below the xlf on a 24 multiple which is very rare for axp. >> the stock was up 3 yesterday after having a bad week last week. carl, the spending numbers for younger people are insane given the fact we thought they were worried about student loans. the student loan demand -- student loan payment issue, i'm not calling it a kinard, what we were talking about with the wires problem. i am saying that the american express, the younger people are going out more than ever, charging more than ever. i'm wondering whether it is they're working from home and

when they're done working from home, they go out to splurge. they work from home, those people. >> hikes the target one buck from 150 to 151. >> they can cut it that close? that's great work at piper. thank you for that. >> very high quality. >> i'm sure many people were not thinking of owning it. >> the extra dollar, maybe. as we mentioned, rtx among the top gainers on the s&p after the quarterly beat. our morgan brennan joins us with a special guest. good morning, morgan. >> good morning. joining me is greg hayes, ceo and chairman of rtx on the heels of earnings. greg, it's good to speak with you. a lot to get to. i do want to start first with the geopolitical landscape. we've seen the war in israel erupt in the last couple weeks. already had seen strong demand for defense. what are you seeing now? >> morgan, first of all, thanks

for having us on the show today. look, the geopolitical landscape is as muddled as i can remember in the last 30 years. the fact is there is unprecedented demand for munitions and for defense spending just generally speaking. we've seen that already in our business as we ended the quarter with a backlog in our defense business of about $75 billion. we know there's more to come. the fact is, there is a lot of work to do in terms of ramping up the industrial base to meet this unprecedented demand. again, the war in ukraine does not end soon. it's unfortunate it continues. there's going to be a significant need not just for munitions for the battlefield but also to replenish the war stocks we have been providing ukraine. the war in gaza or in israel, again, a tragic situation. it will eventually lead to additional orders most likely. our focus right now is how do we support the israeli defense force.

how do we make sure they have what they need to be able to defend their country. >> you are one of the co-developers -- raytheon is one of the co-developers of iron dome with raphael and israel. there's been a lot of focus on it with thousands of rockets being fired into the country in the last couple weeks. is it working as intended? >> i think the iron dome system is an incredibly effective system for intercepting and destroying incoming artillery rounds. we're just breaking ground in camden, arkansas, of a new facility so we can double the production of the tamir intercepter missiles. it will take unfortunately about two years to bring production online. we see demand not just from israel, but the dod and other partners around the world. it's an incredible system for intercepting short range munitions. >> greg, jim cramer, good to have you back on the show. this was an extraordinary quarter. >> thanks, jim. >> the thing that most intrigued

me. you had a $3 billion charge for a particular problem in an engine, and then the stock drops $30 billion, ten times the charge. is that one of the reasons why you're buying your stock apparently hand over fist with this morning's buyback announcement? >> jim, there was a lot of uncertainty when we announced back in july that we had to have an enhanced inspection for the gtf engine because of what turned out to be a very rare condition where we had some cracks in some turbine disks. that uncertainty drove what was a huge reaction in the stock price, wiping out roughly $35 billion of market cap. i think with today's announcement and earnings release, we think we have refenced the cost associated with that. it will in total be about $6 billion, our half of it. with our partners, it's $3 billion. i think the uncertainty around

that whole issue is now behind us. when we sat and looked at the stock price, it was a no-brainer to go off and do a $10 billion asr. we'll retire 10% of our outstanding shares with this asr. >> it did seem to me to be, because of the problems that boeing had, at least giving optimism, optimism, opt mitch. you're a former ceo. how do you arrive at the $3 billion number. are we certain we won't come up with another billion or two problem with this engine? >> jim, that's a great question. the 3 billion, again it was a 6 billion gross charge. our partners pick up 49% of that. what we have done is we have looked to each of the airlines that will be impacted. there's about 42 airlines that are impacted. we've estimated what the cost is going to be to compensate them for the time their airplanes are on the ground. we've estimated what the cost is

to do each of these repairs and we've estimated all of the additional capital that we're going to need to make sure we've got the capacity to do all these inspections. i think we've had a rigorous, rigorous examination of the cost. one of the gomes we had in coming out with these numbers earlier is we didn't want to surprise people quarter after quarter. we wanted to be transparent. we wanted to make sure people understood what the issue was, and to get it behind us. i think, again, with today's announcement, we hope we have answered all those questions and we do not expect surprises. there's still a lot of work to do. we've got to inspect a bunch of engines. we'll be disrupting airline operations for the next couple years. so much work to do. financially we think we do have it fixed. >> whether on the commercial side or on the defense side, you were talking about replenishing stockpiles and the increased demand you're seeing there across different countries and

different requirements for aid right now, what does this mean in terms of supply chain? are you seeing an easing of that which has been an issue across the industry for the last couple years? >> morgan, that's a great question. i would tell you that the electronics shortages we saw over the last couple years have for the most part been abated. we don't really see a big challenge for electronics. the challenge remains in some of the more complex machine parts that we have specifically around some casting parts. again, with the unprecedented growth that we have seen in terms of the recovery and commercial aftermarket as well as the military, our suppliers have to be investing along with us to meet this demand. some of them have, but not all of them. again, there's still bottlenecks out there. we've got about 14,000 suppliers. we probably have 600 teams out today working with those suppliers to make sure they have the capacity to meet this

demand. it's a battle every day. >> greg, it's david. i want to come back to iron dome and maybe patriot as well. does israel have enough missiles? are they going to run out? you mention, obviously, the new manufacturing you're trying to do, but that's a ways away. they're firing an awful lot of these things given how many rockets are coming in. >> they are indeed, they're going through these tamir intercept task force at an unprecedented pace. i know the pentagon has been working closely with the israelis to make sure they have the stocks they need. a lot of that coming out of u.s. inventory today. same with the gem ts on the patriot system. the gem t is a million dollar missile. yet you're using them up every single day, whether it's in ukraine or israel. dod is on top of it. the folks understand the need to make sure our allies have what

they need. it's going to be a challenge if this continues. >> any idea when it really becomes a challenge? i know that's probably a hard question to answer. but at the same time you kind of know what's capable in terms of manufacturing and/or what i assume are stockpiles here in the u.s. >> david, i can't really get into the stockpile numbers. i will just tell you that the folks whether centcom or with joint chiefs of staff, they're monitoring this daily. we're in constant contact with them. again, we will see more orders for this. it's just going to take us some time to fulfill them all. >> greg, i want to go back to something that's pretty philosophic about your comments. in 1961 president eisenhower warned us in his farewell address about the military industrial complex and that's the biggest fear, we had this situation where we were going to build and build. this is it. we have gotten to the nay dear

since the 1961 speech. i wonder how the hell did that happen. >> jim, it's pretty simple. if you think about the last 20 years, dodd and the american government has been focused on fighting terrorism. the thought of fighting a ground war in europe was far from anyone's how will we deter them and not prosecute a war? >> keeping the u.s. government open and passing policy for the next fiscal year, we do not have a speaker of the house.

how are you preparing for that? what does that mean with our ability to meet demand going forward? >> that is a tough question to answer. the good news is, espite the divisions we see every day in congress, there are strong bipartisan support for dispense -- defense spending. the government shuts down, that's not great. it will not impact rtx. will continue to support airline customers. even if we get to december 31st and do not have a budget deal, the sequestration murtaugh is 1%, not 10% we saw decade ago. it's not a great situation. but it will not impact us that

much. >> thank you for joining us today, stocks are up 7%. we lost a little bit of ground in the last couple of minutes. gains of about half a percent. two-year, 513. we will get a motion today. back in a moment.

it is time for jim to stop treating. >> completion in production.

the market is not that good. what happened here. you heard what you said yesterday. the company is not drilling like they used to. i want to come back from the other side, you will see a lot more drilling. this company will do fine if oil prices stay where they are. they are being conservative now. >> crude is below 85 today. >> this is a great quarter. everything is good. these are coming after amazon. that has been the star of this year. i'm not backing away from it. i think it's doing okay. >> energy is the only sector in the red. >> that is an opportunity. >> i have to tell you, when you

look at what is really moving. when it is a bull market, it is breaking out. offering gold, you can buy some. no markup. people don't remember this. has written a book by the way. i read the book. revelations on every page. i can't wait to talk about it. >> he's good. we will get to poland on thursday. >> pinero was really good. >> jim, we will see you at 6:00. when we come back, a ceo double on earnings. when we come back.

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nine for you as always from the stock exchange. take a look at stocks higher here in the early action. of recorders, 1%. every sector higher except for energy. big names in groups like utilities, up 2%, communication services, consumer discretionary. up more than 1%. industrial is up two. look at the treasury. yields are mixed. off the highs. 5% overnight. we are at 485%. yields are below 5%. 30 minutes into the trading session. coca-cola shares. james quincy joins us this hour to break down those numbers.

we will check in with the ceo, mike roman. rtx is surging after beating profit estimates. greg hayes without his lost hours saying that issues surrounding the 18 gin inspections. a host of other movers to get into this morning. john, good morning. >> little bit of pressure after pulling the guidance for 2023. understandable, given the fact that the uaw strike has already been costly and who knows how long this will go? how long it will cost the company. here is the tab so far. it has cost the company $800 million since september 15. the expectation is it will cost them 200 per week going forward provided that the strike has not expanded. the price tag will go up.

2023 guidance pulled due to the unknown cost. that is the bottom line year. here is paul jacobson talking with us on squawk box. >> i would rather leave those in the room. we are trying to meet the uaw where they are asking and where people can do that. >> that includes offering a 23 percent rate. since the beginning of the strike, to plans are down. that is taken out 22% of u.s. production. the ceo that we talked about sees the dealers impact. the parts and distribution centers are on strike right now. that inventory is a little bit lower. let's shift gears, let's talk about ge. better than expected earnings as a wide margin. shares are moving higher.

they beat the top of the bottom line. orders are up 18% compared to a year ago. raising the guidance and free cash flow. we talked with larry earlier today. what we are noticing is the strength and demand are there. the challenge, the supply chain. they are noticing delays in terms of shipments from suppliers and they would be much stronger if they could get all the business that they were expecting. also the spinoff in renewable business, the energy business, that will happen in the second quarter of next year. david? maybe a few other earnings names. what are we looking at? >> it is the heart of earnings season right now. let's talk about verizon. coca-cola earlier. though shares are higher by 7.5% this year.

thanks in part to growth and the wireless phone subscribers. verizon, raising the full three year forecast. that is leaving some optimism and is part of the 8% dividend. also the sherwin williams paint maker. the forecast is well raised its full-year earnings guidance. sherwin williams said that it will help with pricing discipline. and moderating raw material costs there. ventures of logitech, higher this morning. keyboards, headphones, mice, things like that. better-than-expected orderly result. the full-year profit and sales guidance. the board is moving closer to her finalizing who will be the next ceo. up 12.5%. one of the more volatile early trades is spotify. the podcast company, now

solidly higher. after reporting the earnings beat with revenue that was in line with expectations. 574 monthly active users. forecasting that number to be 60 1 million in the current period and by the way, check the spotify chief financial officer coming up next on squawk on the street. the homebuilder up after profits beat estimates. narrowly missed. helped along by robust demand despite higher mortgage rates. by the way, it grew 43% over this time last year. it has been volatile. i will send it back over. >> thank you very much. i look at these earnings reports and i try and take away the macro themes.

i went to the consumer names this morning. kimberly-clark. they have staples like diapers and toilet paper. a quote that i pulled out of the call there on north american demand. it is robust. that does reflect the essential nature of our categories. category specific. if you're selling toilet paper in diapers, in a recession, people trade down to private labels. there is robust demand. the cfo talking about strong demand as well. dealing with the supply side and the uaw strike. while we hear reports in the macro that consumer sentiment might be weakening, we have not seen that in demand for our vehicles. we have been consistent about that on the retail side as well. cars, also point of demand. the consumer remains weak.

and has muted back-to-school season. depends on where you sit, it is not a disaster. >> not at all. obviously, the performance of many of these companies is contributing to a positive day on the broader market as well. verizon from dom, spotify, things turned around after the call. we talked about gross margins being better than anticipated going forward. the take away has to be a pretty good one given some of these large older companies. >> for sure. >> the dana backed it up too. the global numbers came out. a snapshot on manufacturing and services. they were both strong. it went up to the breakeven on the s&p 500 at 50. services also defied economist

calls for a slump and was around 50 as well. the best part of this report on pmi is that the service sector cost input is the slowest pace in three years. that is what the fed is looking for. even the strong services sector for cross prices to come down. >> it is worth going through. going through cost savings through consumers to drive sales. that is the relationship to pricing we've been waiting for two look at for two or three years. >> an inflection point where there will be tailwind from commodities versus the headwind that it has been dealing with. coca-cola, james quincy we will have on the show told me earlier that it is moderating in the u.s. and not existing in

china. what we do with all of this information? everyone is expecting the economy does low. i pulled out this chart of what recession is being priced into various markets like equities, high-grade bonds, high-yield bonds, the five-year period if we have a bar chart, i can show you. not a lot of recession odds are being priced in. 42% with the s&p 500. the only market pricing in the recession is base metals. gold prices are rallying on the geopolitical concerns. all of the bars are low and they are lower than they were this time last year when people were expecting it. if we do get one, it will take the markets by surprise. >> five-year treasury. >> you know what is happening with treasuries? they are going the other way.

clearly there is caution out there. ceos are cautious. it is not filtering through in the earnings and the data just yet. we continue to monitor the israel and hamas war. life for us from tel aviv tonight. j. >> we were just pulled from our area with the air raid sirens sounding. the iron dome is doing its job. jet fighters, drones, helicopters, moving out towards gaza. a whole skill operation. that is their words. more than 400 targets hit in the last 24 hours. tunnels, staging areas, command centers, the israeli defense minister is still pushing that they are going to do more. saying that this is working towards a multilateral operation from the air, ground,

and see. hamas telling us that they lost 700 people. the most in a 24 hour period and that is according to matt hamas. 20 more trucks moved in across the border across egypt today. none of those trucks had any fuel. the food, water, medicine. desperately needed, obviously. the u.n. is saying that fuel might be more necessary than any of the food and water. it is very scarce. hospitals have reached way over capacity and they have about one day of fuel left. the palestinian authority ministry of health has said that they are at a point where the hospital system is crumbling. they will be coming very close

here. two hostages were released. one of them was an 85-year-old grandmother and after 24 hours after leaving her captor she spoke publicly and said that she was treated well and few -- fed. why the idf did not take information provided three weeks before the attacks and did not take it more seriously. the question that many across israel are asking right now. as for the remaining hostages, 220 or so, what the idf says is that they are using multiple channels of communication. including encrypted message apps, and sending messages to the residents of gaza right now asking them for any information about the hostages were any information about hamas staging near the border. they will provide protection and compensation for anyone who

may be willing to share that information. >> the picture you painted of gaza with the hospitals on the fuel. rockets are still coming over the border? >> nonstop and that continues as well. nonstop airstrikes from the israel side as well. the war continues in a humanitarian disaster that is only getting worse. >> this is amazing that they cannot stop the rockets. thank you very much, jay gray. here is the road map for the rest of the hour. joining us exclusively to talk about the road ahead. >> shares are up this morning. mike roman will join us.

>> changing his ratings and targets aumon nber of retail stocks. j.p. morgan's boss will join us with his topics when we return.

welcome back to squawk on the street. wall street estimates on top and bottom lines. consumers withstand higher prices. our exclusive interview with

coca-cola chairman and ceo, james quincy. good to see you. >> good to see you. >> everyone expected pricing to be strong and volumes rose 2%. that sets you apart from some of the other consumer package goods companies. how did that happen? >> a decision to make sure that inflation came through to make sure that we can keep the consumer franchise and grow the number of the people. a very deliberate focus. the innovation in the pricing strategies. it has all been about earning the price but delivering on the volume. >> figuring out just how much consumers will pay? as inflation comes down, will the volumes go up?

>> if you look up the long period of time you'll take a long time. we are seeing a very consistent trend a good set of volume growth. that is coming from the emerging markets. in his cultivated by pricing everywhere. it is about finding value from consumers. they are attracted to the franchise with the level pricing that is appropriate. >> you raised your guidance despite the bigger affects hit from the weaker dollar. what gives you confidence do that? >> robust trends around the world outside the u.s. internal revenue growth, the last few years waiting for the opportunity to grow. reinvesting ahead of the marketing on reinvesting the

growth packaging. it gives us confidence for the rest of the year. it is upgraded and increase the top line and bottom line. that is going into 2024. clouds are on the rise. the momentum is there in business. >> wears a coming from? it was half the portfolio at home. people are buying and staying at home. coming out of it, everyone is going out again to restaurants and stadiums. what does that look like at this point? >> it depends which country you are in and if you take the u.s. for example these resources and stronger growth from these channels. people spending on hospitality and travel, amusement, restaurants. stronger than the at-home channels. that trend is still playing out in the u.s.

>> hey, james, we'll take a quick pause here, we have a update on the uaw strike. we'll go with phil. >> announcing a new strike location. general motors, the most popular plant. this is where they build all of the full-size suvs. the escalade to the tahoe. you mentioned it, large suvs from gm. coming through the arlington plant. gm posted a profit of $3.5 billion in the third quarter. they should have more money to spend on uaw members. after they posted better-than- expected earnings in the third quarter, it is adding a third final assembly plant. out of these three plans now including arlington, that is 32%

of the u.s. production that has now been shut down by the uaw. sarah, back to you. >> thank you. 42% shutdown in the u.s. we will continue that conversation, we want to continue with james quincy. you are talking about consumer headwinds on the horizon. i'm concerned about what is happening in the u.s. companies have been talking about pressure on the low-end consumer for a few quarters now. is it getting worse? is it expanding? what can you tell us? it is not changing radically from what we have been talking about with lower income consumers. when they are vying for the at- home occasions on this pressure. when people are out and about, the spending is still there. it is robust still in the u.s. it will be moderated slightly as inflation comes down. that will come with demand. it is pretty stable.

>> what about china? talking about how the announcement came out and it has been disappointing to see the combat there compared to the u.s. and europe. any changes in chinese consumers mark >> clearly they open from covid later than everyone else. that is all we saw in the u.s. or europe and it is not going through. they're looking at stimulating the market. all kinds of macros are not there yet. we have to put it on what we can do. assuming the environment is relatively low and focus on the opportunities. with those consumers as we see that going ahead. upping our investments and looking for strong chinese media. >> not much improvement there. i'm looking at your stock, down 12.5% this year.

package food companies are down worse than that. the other story that everyone is focused on is the obesity drums and the impact that it can have on sugar food, package food, sugary beverages, you said you do not see this as a disaster, how are you thinking about any potential impact? >> firstly, it is very little date on what's actually happening. all of this and it took total stuff. a lot of predictions out there. it is really fundamental change. for the structure of the beverage industry. one thing about the coca-cola company in the beverage industry in general, we have been on a journey, those who want to pursue less calories to provide zero calorie drinks and

innovation with those calories and other drinks and have smaller packing size. the environment where people are looking to consume less calories, we have a portfolio fit for that and that sort of environment. you can eat less food but from a hydration point, you should have more liquid. we can provide low-calorie options for those people who are looking for that. it is a structural issue on large-scale for the beverage industry. >> i mentioned that earlier, the point has been made that you can switch what you drink and you can switch to water and plain water. in your portfolio, is that as successful as a business as people are ditching brand coke and sprite. >> coke zero and sprite zero so they can have zero calories in their beverage. we have great sparkling water

brands from a number of other sparkling brands around the world. almost every beverage we sell has a zero calorie option. for that section of consumers i want to consume less calories we have the option and we can create a beverage portfolio that will be adequate for the future. ill be profitable for coca- cola. >> alcohol consumption is down. they are increasing health studies about how it is bad for you. you have been leaning in more to alcoholic beverages. and other canned or bottled cocktails. are you thinking of that strategy at all? >> firstly, the approach is where we are experimenting with a number of ideas.

we are wanting to see responsible consumption of alcohol and the highest level of standards in that regard. there are certain aspects. below out for ready to drink space is one of the fastest- growing bits in the beverage industry. there is a way to do it in a responsible fashion and growth opportunity for us if we can find the right portfolio. we will see how material it is for the company. >> i have to ask you about ai. you have been talking about more than other consumer companies. there was a drink created by ai. it was good, it tasted a little like candy. what are you learning from experiencing with ai? and what will it take to do that? >> people have come up and we

have tried to experiment and be on the front end on the next wave of ai. there is a law in the supply chain and functionality of a lot of companies. it protects the image and it will move towards that. it is a very exciting space for the consumer industry we have done. there are 3000 drinks covered by ai. it is to take it from innovative and disruptive ideas to scale. how can generative ai really help engage with consumers and do things at a scale of the coca-cola company where we sell over 2000 things of our products every day. that is the fun thing here, how do we turn into something for every day use.

instead of a niche and not interesting scalable kind of idea. >> let us know. keep us posted. james, thank you for the time today on earnings. >> thank you. still to come, the ceo of 3m will join us for his outlook on the company. the dow, 300.

they demanded a record contract. those are record wages. it is substantial. when it comes to world-class healthcare. it rewards team members but it puts the company and their jobs at risk. will put our future in the gm team members at risk. >> mary bar this morning with the conference call. expanding the strike to the largest plans from arlington, texas. the day after they expanded the strike. we will watch that closely.

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by downloading duckduckgo on all your devices today. welcome back, i am pippa stevens. former president bonnell drum coming face-to-face with his former lawyer, michael cohen. the civil flawed trial. the anticipated testimony came after he was supposed to take the stand next week but he had to postpone because of medical issues. another one of trump's co- defendants in his election interference case. the campaign lawyer pleaded guilty in the case. one count of aiding and embedding false statements. will cooperate with prosecutors as part of the deal. five years of probation plus fines and community service. house republicans are meeting behind closed doors to put

behind another candidate for the speaker position. as we hit the three week mark since the ousted kevin mccarthy from the job. seven candidates are still in the boat. a new boat could go from the floor later today. >> thank you. shares from 3m are up this morning. after estimates from he house. raising the for-profit forecast to cut costs which are working. joining us now. the chairman and ceo, mike roman. good to see you, it has been a while. >> good morning, david, thank you for having me on. >> let's get inside the quarter year, margins are better. better than what the company anticipated for the third quarter. what is driving that? can we maintain it into 2024?

>> david, as you said, it has been a solid quarter for us. executing our priorities well, we are developing results. we have adjusted earnings and better expectations. updating margins year-over- year, behind that, we grew sequentially and all four businesses are adjusting well. delivering another third consecutive quarter of strong double-digit growth and cash flow. behind that operating margin is the first priority where we are driving performance throughout 3m. it starts with strong operational execution. in the company. we are seeing that drive results. following through on the restructuring actions that we announced in our earnings: we are making progress there. in the face of uncertainty, --

>> would you expect it to continue into 24? >> i would say, as we go into q4, 24 is a little ways off. we are focused on delivering in q4. and improving and continuing to drive strong operational execution. driving that performance into q4, that is the expectation. that is all we are trying to focus on. >> you kind of alluded to this. you and the cfo were appealing to some of the end markets and what you are seeing for certain regions. give me a sense there, does it continue to be a challenge? >> i mentioned on the call, they are done slightly from us in the third order. that is showing the uncertainty and the impact on the markets and the geopolitical things that are going on. it was helped by automotive. surprising strength in europe. it is up 60% in the third quarter.

showing that europe is also an example of that. asia is where we are seeing softness and that is driven a big part by china. china is the mid-teams for us for the quarter. we talked about the damage behind them. a challenging comparison from the snapback from covid that we sign q3 last year. it is the alignment of the business there. electronic spacing in china. we could see soft demand in consumer electronics. globally and in china. we are up 16% globally. that is the broader automotive business. electrification now projected

to be a $600 million business. there are some important and strong dynamics in the auto business. the u.s. is also strong. some impact from the strike. not a significant impact at this point. we are watching it closely. we stay connected to the large oem customers. we focus on the potential impact of the strike and that is something we will take into q4. >> mike, we focused a great deal on pending litigation. much of that seems to be resolved. combat arms, the settlement with the public water suppliers, are you done there? have you taken the necessary charges? to reached settlement so you feel comfortable with this? is there possible other litigation from litigants that are not covered in the settlement? >> the priorities that i talked about we are executing, the first is driving the performance we have talked

about. we are progressing the healthcare spend. we are going to spend the healthcare business. and then the third one, reducing risk and uncertainty related to litigation. the two settlements that we announced, the public water supply or settlement that we announced in the second quarter, they are important agreements to move forward, we are working with the parties on the courts to complete and finalize those agreements, they are very important, we will continue, as we have been saying all along, proactively managing our litigation, and resolved through settlement where it is appropriate. >> do you think that most of it is behind you? >> these are two very important agreements, when we look at what is ahead of us, we will continue to proactively manage

it. we will continue to defend ourselves, we will look for ways to resolve it that are appropriate. >> you mentioned the healthcare spend. it will take place in 2024. new set on the call, it is about getting ready to stand up 3m as a standalone company. being able to stand up 3m as a standalone company. >> they stand as a public company today. as i talked about the spend of healthcare, big focus is successfully spending on healthcare. that is where a lot of the work is focused. that is where the separation teams are focused. we are also thinking about the future of 3m and how do we look at the future of 3m and it is

back to taking advantage and leveraging what we are driving. it is also where we go with growth. we see tremendous opportunities going forward in a high growth market spaces where that differentiates us. in the emerging megatrends we have been talking about. climate technology and industrial automation. when i was talking about focusing on 3m going forward, driving that performance across the company. and where we taken we invest growth in the future. that is the future growth of the 3m success. >> we will watch for that as it gets closer. i will leave it there, thank you. the number one retail analyst upgrading this name to

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our next guest is a retail analyst. upgrading pbh to overweight and bath and body works to underweight. the retail analyst, what a pleasure to talk to you again, good morning. >> thanks, carl. >> we show the mystery chart before the break. >> okay. our focus right now is on self- help and value convenience. that is the playbook for 2024. it will continue to be valuable. both calvin and tommy brands are set for a foundational change. they have been in place for the last three years.

operational improvement. the supply chain is intact. material new hires on the supply chain. the risk and reward in our opinion, given that it is trading at a trough multiple, including those saves in the fourth quarter and causing opportunity as you move into the spring. 200 basis points of margin upside relative to consensus. that is hard to come by in the retail space right now. >> in terms of global brands, you are still overweight, ralph and and nike. you do remove lulu from the focus list, are you more focused on the margin at the high end as well? >> the way we are thinking about that self-help theme, some of the issues that they have gone through over the last three years become opportunity on the other side. the total addressable market is nike as well as lulu as we are coming out of the pandemic

where the brand awareness and health awareness coming out of the pandemic is stronger. as well as the casuals asian trend. in my opinion not as a megatrend post-pandemic. they both set up well with that. more self-help and nike. it is still an earnings growth on lulu. it is at the top of the list. it is the best ideas list and we focus on self-help. upgrading pbh with nike and ralph both being self-help opportunities as we move into next year, the trend with a macro backdrop. it is about low and middle income consumers where the real exposure is. >> you do not think that full locker is a self-help story, you downgraded the name. >> is a big move lower. everyone was so excited for mary dylan to fix the relationship centering around the stock, why the downgrade?

>> breaking down the is model, we are breaking this down for next year. we are trying to do think it points to sequential improvement, but with same store sales down nearly 10 at foot locker, there's a number of issues that, look, the new team is working to fix, but the partnership reset with nike, as well as competition in the space, i think right now is very fierce, as well as an extremely high concentration of low to middle income shoppers, which i think into next year, that is not the concentration you're looking for. that's also part of our downgrade of bath & body as well. i think the reality is it comes down to pricing power. it's differentiation, innovation and taking market share. that's where our overweight ratings as we move into '24 are paramount versus others that i think need a level of macro.

that's where, in my opinion, a foot locker and bath & body works fit in, which is the premise on our downgrade on those two today. >> i notice you're underweight dg and big. we talked about this before. why in an environment where there's macro pressure, especially at the low end, does the dollar concept not work as well? >> that's a great question, carl. you would say historically with economic disruption, you would see the tradedown opportunity and the two sectors would be off price, which would be tjx, ralph stories, and the dollar stores, dollar general and dollar tree. it's two-fold. you're battling the pressures. the pressure on the low to middle income consumer. the biggest is convenience. i've been a broken record on this show talking about value and convenience. that's what matters to that low and middle income consumer. walmart, target, the discounters, the grocers, they invested a tremendous amount of

money or the last five years to be more convenient, technology battling up against the e-commerce retailers. i think that the small box retailers, the dollar stores have lost a step on this convenience element, which means there's an increased battle on value, which translates to margin compression. so, our view is for value and convenience it's off price. i love tjx and ross stores. i think they're bringing top known brands to the consumer at great values. and i think that's the way to win in '24 and '25. >> it's cool to see you shake things up, matt. obviously the street is taking notice. appreciate the time. >> coming up in the next hour, the ceo of payments company fiserv raising guidance for the second quarter in a row amid strength in their merchant business. what it says about the consumer. the move in bitcoin hitting its highest level in more than a year and a number of crypto-related stocks soaring. we'll talk about what's driving that energy next.

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bitcoin having quite a day, hitting fresh highs. now up triple digits on the year. the move also helping to boost microstrategy, which owns a lot of bitcoin. coinbase also.

let's get to kate rooney. she has more on what's driving this latest action, kate. >> good morning. bitcoin's rally was first sparked by the excitement we've seen for a bitcoin etf but also action going on in derivatives markets that's having an impact. the cryptocurrency popped above $35,000 this week. that was for the first time since the industry saw a meltdown last summer. it has been climbing past that $30,000 level in the past couple of weeks thanks to hope that a bitcoin etf would be approved. the s.e.c. declined to challenge a court decision against gray scale investments. they are trying to convert publicly traded trust into an etf. you have blackrock and fidelity with a bitcoin application out there. investors say the abrupt spike higher this week is likely due to action going on in the options market. short covering by traders who bet against bitcoin, they have to buy back that cryptocurrency. that's sparking the rally. bitcoin has seen $250 million in

short liquidations in the past day or so. crypto stocks getting that boost. coinbase is listed as a partner in a lot of these etf applications. back to you. >> microstrategy, absolutely. of course, we haven't talked to michael sailor in a little bit. thanks, kate. that does it for this hour of "squawk on the street." don't go anywhere, though. a big hour coming your way right after this.

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we just got an order from dinosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first. start for free at godaddy.com welcome back to "squawk on the street." i'm sara eisen with carl quintanilla live from post 9 of the new york stock exchange. wall street's great rate debate. was the move in bond yields the start of a market comeback? spotify with first quarterly profit in more than a year. stock adding to its big yearly gain. up more than 100%. the cfo will join us in a first on cnbc interview. the tech earnings train kicking off with alphabet an