good tuesday morning. welcome to another hour of "squawk on the street." live on the floor of the new york tstock exchange. meredith whitney is back with a brand-new deep dive into the consumer. chipmaker foundry on results and intel leads the race. inside the rise and second fall of wework filing for bankruptcy after once being valued $47 billion.

got some session highs. nasdaq is up about 1% as we got the ten-year back below 4.6. oil below 79. two and a half month low there. >> amazing what the low bond buying relief in rates can do. continuation of last week's bid 6% up in stocks. breaking news from the new york fed. let's get over to steve liesman. >> carl, a report from the new york fed on an issue we're following closely here, which is household debt and credit. it did rise a modest 1.3% in the third quarter. that's the most in three quarters. still below average from before the pandemic. i'm going to be saying that a lot from this report. the current change to before the pandemic. balances did rise for mortgages, credit cards and autos. and here's the important question about delinquency rates. they were up 0.4 percentage points. that's a healthy rise. but to 3%, which is still well below the pandemic -- the pre-pandemic levels which average close to 5%.

so, they're rising but not yet at the prior level. there was an increase in new delinquencies. that's probably the most worrisome part of this report. when we say new, we mean newly 30 plus days delinquent. it rose for all debt types. overall new delinquency rates below the pre-pandemic levels but the surge for autos and for credit cards. rates were rising faster in low income areas and generally younger people than older people. they are rising quickly for those with both autos and student loans, according to the new york fed blog. you can take a look at the balances, the delinquency balances. there's the chart. up a good amount. on the left side of your screen is the delinquency rate before the pandemic. couple of quick comments from fed governor waller, he said the reuters headline has been an earthquake. the labor market is cooler and getting closer to pre-pandemic

levels. i'll leave it there with you guys. >> so, steve, the big question for the markets, does anything throw the soft landing or what austan goolsbee, the weaker economy, not recession, enough to fight inflation? >> if you put that chart up, it's like every chart we're looking at. heading back to normal with the question, for example, do we stop at normal? how worried do we get about the rise to normal? do we plateau there? it doesn't look particularly worrisome. we're going through the period of higher interest rates. i think that explains delinquencies on credit cards. you are seeing bad new numbers on autos we have to watch. i think you have to play it with risk that it could get worse than it was before, but it isn't there right now.

>> we're going to watch it with your help, steve. steve liesman kicking off the hour for us. meantime, amid some weaker consumer data, our next guest says be aware of false rallies. he's staying in the cautious camp and thinks the only way the fed can create a sustainable bull market is by stimulating growth, dropping rates, which may be a ways off. joining us, chief market strategist tony dwyer is with us. i was curious myself as to whether or not last week made you incrementally more bullish. it doesn't sound like it was much. >> well, it was set up that way, carl. thanks for tweeting that out. the stage was set for a pretty sharp rally. you were historically oversold on the s&p, rarely gets oversold as it was coming into last monday. you had three five identitiable catalysts for the bond market. what drove the market down so much, the s&p 500 10%, russell down 30% from peak, the bank

pkx, you know, so all of that movement was created by higher rates. you had the three catalysts last week that got engaged. now that that isn't the case, when you look back it was the best week for the banks and home builders since early april of 2020. so, that brings the question, carl, well, maybe we can have a bottom like we did then. back then on april 9th the fed made the announcement they'll be buying high-yield debt. we're not in that situation. >> right. >> to the degree we get closer to a conversation about cutting rates and kashkari this morning said we're not there yet, what would you be looking to buy first? would you go straight to small caps and reits? >> carl, the time to get really negative. i know we love to cover minute-to-minute on the market but the time to get negative was last summertime when the markets were up high but the fed was

ramping rates, 75 basis points at a clip because inflation was a problem. inflation won't be the problem. at some point in a bear market where you have this -- economically based fair market you go from good news is bad news because it means the fed is going to be tightening more aggressively. we saw that in 2022. bad news is good news because it means the fed isn't going to be raising rates. ultimately you bottom the market, especially in a recession when bad news becomes bad news. and i think that is discounted in a lot of areas. you can't tell me with the bkx down 50% that some recession is discounted in the banks? same with the russell 2000 down 30% from peak. the point is i don't think i'd be negative in those areas. the issues you'll have avoiding the mega cap tech stocks, top ten stocks account for 34% of the market. highest level since 1973 in the nifty 50 and energy, which

became everybody's favorite about a month ago. >> tony, you want to see, what, to make you more bullish? you say in your note the fed needs to begin stimulating future growth with a drop in rates. but isn't that already happening in the market ahead of the fed? >> typically, sara, in the soft landing environments, 1995, 1996, even if you want to play around with 2019, you get multiple hundred basis point drops in u.s. treasury rates, mortgage rates and corporate credit rates. it's not just a little bit of a decline. it's a massive decline. the problem that we have, and you guys have done a great job of covering this today, on mortgage rates, let's talk about that for a second. you have about a 7.5% 30-year conventional mortgage rate. most mortgagerates are below 5%. you have to go down another 100 basis points to think about refi. sure, it's cheaper for those that don't have a mortgage as

they come down 100, 150 basis points. but you need a significant and sustainable drop in the interest rates to quick start that better outlook for money. that, guys, the market bottoms in a recession because -- not because the data is getting better. the data gets worse. it's because the outlook for money improves with significantly lower rates in mortgages, corporate credit and treasuries. right now we've got a hint of that. i think it will be more aggressive into next year. as you guys know, i'm looking to attack weakness, similar to what we did maybe last monday than to try to play big on the downside because that's in a lot of stocks. >> what do you make of some of these calls? big gross is a good example who says we're facing recession in the face. it might be a q4 phenomenon. are you that assured we're heading into weakness? >> that's our base case. that's why i'm going to be pretty darn bullish again, finally after two years, going

into next year. again, if you go into that recessionary environment -- remember, we're up half a percent on the unemployment rate. that's signal we're pretty near recession. when you look at conference board leading economic indicators, the ism employment report, that's all telling us we're seeing some weakening. now you throw in what steve just talked about in the credit card and auto delinquencies. guys, we're getting economically weaker. that's what ultimately provides the opportunity to provide a sustainable low where the fed can make a tone change. it typically comes with a market event coupled with some weaker data. think of orange county end of 1994 they change the the fed. long-term capital, 1998. followed up by weaker data that drove those yields lower, question before. that's your driver for improved outlook for money. therefore, an improved outlook for economic activity and earnings. >> tony, it's a good note. obviously, our eyes are peeled

for any of the signs of stress you are on the lookout for. good to see you. thanks. tony dwyer. >> good to see you. thanks. after the break, meredith whitney famous for predicting the 2008 financial crisis. now with the strength of the consumer. she joins us next. one of barclays' top strategist, the x lo15vibew today. stay with us.

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the big highlights, 50% of participants say they expect inflation to impact t, as well the interest rates. our next guest believes the u.s. consumer will remain strong. joining us is meredith whitney, advisory group herself. thank you for being here. >> thank you for having me. >> i like your data. you look at what the banks are putting out, what everyone puts out. we are always trying to read the tea leaves. what are you seeing? >> that study is interesting because it pinpoints the age group i call the avocado toast generation, which is 18 to 38. they have swrobz. they have money. what they don't have is wealth because they don't own homes. the bulk of -- that group owns less housing than they've owned in the past. new home buyers are getting older. that group, that cohort owns

less housing than they've ever owned. >> 86% do not own homes. that was one of our survey question. >> they like experiences, they like instagram moments, they're not saving. they're spending what they have. as long as they have jobs, they'll keep spending. now, the group that is doing incredibly well and who has so much cushion is the group that over 38 that owns homes. so, that is doing incredible. $21 trillion of equity has been created over the last decade. and home prices have gone up over $23 trillion. so, they have -- they're sitting on a lot of equity. now, here's where things get interesting. over 70% of the housing stock, all u.s. residential housing, is owned by people over 50. and the aarp estimates over 51% downsized to smaller homes. that means -- this is -- i think it's interesting in terms of how

much consensus thought is built around u.s.s housing. people think there's mortgage lock because people don't want to sell their homes to get into another home with a higher mortgage rate. well, older people don't have big mortgage debt outstanding. they can sell and if you look at markets like naples, 58% of home purchases last year in naples were all cash. all cash. so, people are downsizing, taking equity out. taking some of this $21 trillion of equity out and buying all-cash deals. where this gets challenging is where the boomers have to sell their homes to somebody and that becomes an affordability issue. what's even more challenging is the states that have -- i think are going to have the biggest challenges have older populations. so, all the states in the tri-state area, connecticut, new jersey, new york, pennsylvania, ohio, illinois, they all have older demographics. they have much lower job creation.

so, unless they lower their home prices, they're not going to see activity. i think what you've seen is four years where people haven't really sold. the peak in existing home sales was back in 2005. so, people are -- have avoided selling their homes. that doesn't mean they can't. they just have to lower their prices. with higher rates, home values are worth less. i think over the next year, and this is going to be a multiyear phenomenon, you'll see a leg down in housing. that doesn't mean anything horrible for the consumer because, like i said, equity cushions are so big in the folks that own homes. as long as -- home values could go down. i'm not saying they will. home values could go down to pre-covid levels. that's a 40% move nationally. obviously, it varies state to state. everyone will be fine. as long as the avocado toast generation keeps their jobs,

they'll be fine. i think the avocado toast generation could have multiple jobs. so, they're working at home and they can manage having multiple jobs. they're sitting on a lot -- they have a lot of disposable income. if something really changes dramatically with corporations and they fire a bunch of people, which i don't really -- >> which we're not seeing. >> we're not seeing. >> this sets us up for another benign growth year for 2024? >> i think '24 should be fine. but i think what's not expected is i think you're going to see weakness in home prices, higher activity in home sales, and the consumer still spend. the consumer, as long as younger people have jobs and as long as older people tap into their cushion, i think what i would want to know as an older person owning a home, if i'm planning on selling, i want to be ahead of the curve, not behind the curve, because everything i have in terms of the equity in my

homes are paper gains. it's only until you transact that you know where it's going to -- where it's going to trade. so, i think the bid/ask is going to have to contract. >> to what degree do you think they pass on their home? you think the downsizing/selling dynamic is the one that rules? >> you could pass on your home, but you have to have a job to be able to support all the payments associated with it. so, i think there's going to be some of that, but it's not as if everybody's got a rich uncle or everybody's got a rich parent. if you look at some of the housing trends and some of the home price trends, they're so skewed by people who have so much money. for example, if you look at colorado, i mean, colorado home prices are really -- are higher than the national average. that's because you have aspen, you have -- >> vail, yes, of course. >> that skews things. same thing for massachusetts. you have nantucket and martha's vineyard. the average house in plymouth is not going to be -- probably

closer to average. here's one thing, though. the job creation has been, and you know this well because of all the studies cnbc has done. the job creation has been exponential in texas. it's still so much more affordable to live in texas. you see not only state migration but then strength in housing markets in those states that are creating jobs. >> i mean, we don't -- do you think wall street puts too little emphasis on demographic changes when they're doing the forecast? you are bringing this to quarterly gdp growth for the next few quarters and nobody's talking about this. >> i mean, i -- i'm always surprised why i look at things differently than other people but therein lies the opportunity. the numbers are clear as day to me. >> meredith, thank you for coming on and sharing them with our viewers. meredith whitney of meredith whitney advisory group. still to come the ceo of chipmakers global foundries, one of the best gainers on the ndx. we'll get his thoughts that intel may be in line for

billions in secure chip facilities. more from the cnbc generational lab poll, money and youth in the usa. on the subject of student loans, out of more than 1,000 respondents, 20% say they were pretty worried or freaking out about the financial pressure their loans are causing. full results on a wide range of pi le cc.m ght now.

european markets muted, slowing down after last week's big momentum. oil and gas leading the way down after aramco reported steep profit declines. financials in europe seeing a boost after ubs posted results with underlying profits beating expectations. stock is up again. and uk's metro bank moving higher amid a capital injection earlier this month but borrowers are still under pressure. uk housing prices rising by 1.1% in september after six straight monthly declines. so, i think, some evidence it's not a straight line lower, maybe, i guess is the best you can say for the british economy because there are increasing concerns there about a recession while still elevated inflation with the central bank now on pause. >> although uk grocery inflation in single digits for the first time in 16 months. >> good news. >> i mean, nine is better than ten. >> it's been stubbornly high. couple hours into trading, maintaining some highs.

let's get post to post with bob pisani. >> just off the highs for the day. the lower interest rate environment is really helping large parts of the stock market. you just had a discussion on housing. horton had numbers out today. generally very good. they guided full year revenue higher. 121, that's only 6%, 7% from a 52-week high, believe it or not. all the home builders are among the biggest movers. pulte up 4% from a 52-week high. low interest rate is helping the housing market. we've seen some consumer stocks starting to come back. consumer staples had a terrible time in the third quarter. nike had a nice run. their earnings at the end of september was $90. now $108, the highest level since the middle of august. we also see some other consumer staple names doing well. remember what a horrible time they had in the third quarter.

colgate bottomed in mid-october, $69 or so a month ago. they had earnings a few weeks ago and that started moving up. now it's $75. some consumer staple stocks are also coming off their low. not everything is doing particularly great here. let me just show you. oil because of low oil prices, oil stocks have lost their luster. this is sitting at a 52-week low, chevron. most of the oil stocks when oil stalled out moved to the downside. another group not doing anything at all for various reasons are the pharmaceutical names. bristol-myers squib down again today. it was a new low just last week. but pharma in general, whether it's for issues around covid or issues around some other issues including weight loss drugs in general has had a very tough time. i would say oil and pharma definitely not doing well but some consumer staples, consumer discretionary, home building showing some real momentum. >> bob pisani, talk in a bit.

let's get a news update. israel gave civilians a four-hour window to leaf the northern part of gaza in an attempt to escape from israeli bombardment. they say the forces have surrounded gaza city and are poised to attack it soon to target hamas terrorist who launched a surprise attack on israel one month ago today. the supreme court is hearing arguments today in a gun rights case. the high court will decide whether a federal law that prohibits alleged domestic abusers from owning firearms is unconstitutional as a result. this will be the first gun case the supreme court hearing since the court expanded gun rights and a decision last year. five republican presidential hopefuls qualified for wednesday night's debate in miami. chris christie, former president donald trump. the clear front-runner in the race did not participate in the first or second debates and says he won't be there tomorrow. the debate will air on nbc

starting at 8:00 p.m. eastern. sara? >> thank you. it's been one of the most beaten down sectors so far this year. this morning evercore says there are names to buy in solar including inphase and sun power. we'll break down the call after a quick break. when you're looking for answers, it's good to have help. because the right information, at the right time, may make all the difference. at humana, we know that's especially true when you're looking for a medicare supplement insurance plan. that's why we're offering "seven things every medicare supplement should have". it's yours free, just for calling the number on your screen. and when you call,

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getting a market flash on shares of planet fitness. big mover today. let's get over to brandon gomez. >> it was a strong quarter of surge after raising guidance for the year. interim ceo taking the lead on the call this morning. you remember after that abrupt

departure of chris rondo in september, saying the company is focusing on capex by replacing cycle, some gyms testing a price increase in classic memberships, raising those prices to $15 from $10. all to free up capital. carl, i'd also ask g1 drugs, ozempic, not mentioned. the stock regaining momentum after three months. >> what's the feeling on the ozempic drugs, it hurts planet fitness because you don't go to the gym or it helps -- >> it helps. 40% of their members are actually new gym goers. they think these drugs motivate people to go to the gym, which ultimately would boost shares of the stock. >> that's positive, i guess, from a health perspective. better than my first theory. thank you. interesting note from the desk of barclays this morning, saying despite challenging fundamentals there's still more upside to be had in this rally. but as a renter, not a buyer.

saying calls may be on the way to play one of the largest drops in the vix's history. joining us to explain why is barclay's stefano piscali. what do you mean as a renter not a buyer? >> thanks for having me. obviously, we had one of the largest rallies in equities last week, a conference of factor including supply relief from treasuries and a cautious fed, goldilocks report. and it was clearly the market was clearly taken by surprise. so, we actually take into account the volatility environment we are in. equities actually staged the largest rally last week in the past years outside the pfizer vaccine years. i believe this not only speaks of the magnitude of the value but also the shock factor. there's a big factor behind the rally last week by the fact investors were taken by

surprise. i think looking forward, obviously fundamentals remain challenging. and there's a good chance this rally may continue by major of gravity. positions are still not particularly clean. so, if there's no clear catalyst in the near term, investors may choose upside in year-end. so, better way to do so is now that the vix has come down, it's quite cheap to actually rent upside rather than risk it and be low in the market. we've been recommending investors take advantage of the drop in volatility to try to, you know, position for further upside by options, which is a little bit safer than just buying the market. >> in terms of big lines of demarcation on the vix, is 20, 22, is that still an historic

marker? >> yeah. basically the story behind the vix, obviously we had the vix above long-term average in 2022 and 2023 has been the story about the vix normalizing. we kind of saw volatility n norm normalizing. they attached 13, thereabouts, during the summer. and there are a couple of reasons why that's the case. it's come down quite a bit. that's interesting because in the u.s. you have the magnificent seven basically driving the rally. they brought down correlation, another reason volatility has come down. looking forward we do think the vix maybe at 13 is too low. it's probably -- you know, we probably behind -- basically, it's probably likely we'll revisit the highs that we saw in

2022. >> interesting call. thank you very much for joining us from barclays. another call we're watching this morning from the desk of evercore, bullish on the solar sector despite the dramatic pullback in some of those names saying there is opportunity in residential, highlighting sunrun, sunnova and enphase. pippa stevens joins us with the contrarian call on the street. >> saying the long-term potential is still intact. we are talking the stocks declining 50% for names like sunrun, enphase and sunpower. investors can buy them at an attractive valuation. evercore did say the expectation around growth have now come down to about 15% per year. and that's really important because it was way too optimistic growth expectations that started the selloff to begin with. when rates were next to zero,

there was so much momentum behind solar. consumers were going solar and companies were starting from a very low base so it was easy to show doubling of customers, doubling of revenue. now that systems are more expensive to finance, we've seen that growth slow just as manufacturers have increased their production. so, it's basically a perfect storm with what i've heard from executives in terms of a slowdown on the demand side just as there's an oversupply of the product. essentially evercore saying long-term growth is still there but it may take a few quarters for this to correct itself. >> i think we talked to first solar last week. there is some shading within the space, whether it's residential or nonresidential, right? >> that's right. first solar has a big moat around it. they are the only accessible manufacturer that sets them up to get the credit from the inflation reduction act while consumers can get the deduction. they're the only sizeable u.s.

manufacturer, everyone wants their panels. that's why they have a backlog. utility demand is holding up a bit better given there are customers like corporations who want greener energy for things like data centers. that demand is there. they're a little less price sensitive relative to consumers who have to shoulder the higher cost of the financing by themselves. >> i mean, pippa, isn't it sort of like anything else, when rates come down it looks a lot more attractive, the economics of the business and the valuations of the stock? >> yeah, definitely. you have to wonder why higher rates -- ultimately higher rates weren't forecast in some of these business models. but that's what i've heard from both enphase's ceo and solar edge's cfo told me the u.s. solar market won't turn around until we see rates come down. they said what supports solar is utility rates will continue to rise. it's that difference between what you're paying for your system versus what you're paying for your utility bill that influences whether or not customers go solar. so, that's the key difference to

look at. and with higher rates, that difference comes down, meaning the systems look less attractive. >> yeah. changes the whole equation. pippa, thank you. . that stevens. chipmaker global foundry going going public almost exactly two years ago. since then outperforming the s&p by double digits. can that outperformance still continue with revenue down year-on-year? we'll talk to the ceo when "squawk" comes back - ♪ unnecessary action hero! unnecessary. ♪ - was that necessary? - no. neither is a blown weekend. with paycom, employees do their own payroll so you can fix problems before they become problems. - hmm! get paycom and make the unnecessary, unnecessary. - see you down the line.

. welcome back. take a look at global foundries surging. one of the top gainers on the nasdaq on the chipmakers' latest results. pretty upbeat earnings results for q4 helping to offset a miss on the top line guide. joining us at post 9 is global foundries' ceo tom caulfield. great to have you in house. >> great to be here. >> we've gotten so many mixed signals. how does yours fit into the overall narrative?

>> there's certainly a lot of choppiness in the market. even heading into earning seasons, there was a little downward pressure. i think what differentiates is the breadth of the end market. if you're focused on an end market that's been a little more consumer driven, that is more pressure on that and you'll see a different type of earnings performance. but look, i think the other thing is, we did deliver a solid quarter compared to our reset outlook that we reset at the end of q1 of this year. that's a tribute to the resiliency and the dedication of our team. we have an amazing team. i'd be remiss if i didn't give them a shout out for what they delivered this quarter and the previous quarter. >> how are you thinking about growth next year? i think you said it depends on inventory levels, right? >> i think there's two elements to this. we -- but they're all related to demand. we're still in a situation where maybe we're starting to see normalization of the peak of inventories. some have reported coming down,

again, depending on the market and some have talked about it nearing the peak. but we need a catalyst for demand. and if you start to use your crystal ball, and i'm not better than anybody else when you have a lot of macro economic uncertainty and geopolitical issues we're dealing with, we have high inflation that's being beaten down with high interest rates. what does that do to consumers and their ability to spend? we're a consumer-led industry by and large. we need to get that confidence back in consumers who want to spend again and drive a refresh cycle of their electronics. >> where would that happen first? in what kind of silos if we were to be so lucky? >> well, i think it has to start where the market's been down the lowest. for us it would be smart mobile devices, handsets. we get a replenishment cycle. when i think about this, it's not so much what's in store for next year, it's what's going to be the real catalyst for the industry going forward. when you think about a.i., today it's all about a.i. in the

cloud. where we're training the models in the cloud, we're creating the large language models, which is really going to be the driver is to have a.i. at your fingertips, a.i. at the edge. you're going to want that next smart mobile device, your phone, your internet of device to be a.i. identify enabled. once those models go from training in the cloud to inference, which is the action at the edge, that's what i think is really going to drive the replacement cycle for the industry. >> you think the growth in mobile and smartphones comes from a.i.? >> i think a refresh where you want a phone that's a.i.-enabled, it has that capability. then they say, we need a new phone, not maybe i can wait another year. >> how much does that move needle for you at global foundries? >> smart devices is 42% of our revenue. it also hits us in home and industrial iot. any device that has electronic

capability is going to want to be a.i. enabled. >> as we move from picks and shovels to actual service? >> there you go. it's a long run. >> you want to talk about the reshoring efforts and the degree to which this money is being distributed and who wins and who wins less? >> let's go to first principles, why is this happening. for the better part of the last 40 years we've had this huge concentration of supply in one region of the world. you know, independent of geological, geopolitical issues, it's never good to have single points of failure. this idea of resiliency in the supply chain gets tied to the recognition for how important semiconductors are to the world economy and the human life. and so now getting that resiliency is about hedging because we live in uncertain times. even if we didn't, too much concentration is not a good thing. what happens? regions around the world, united states, europe and others are creating co-investments or incentives to make sure some of

that capacity comes back to their regions to create that economic supply chain, in some ways national security for their country. >> that's why the c.h.i.p.s. act was such a big deal. today there's a report that intel is going to get a good chunk of it. how confident are you that you will receive funding? before end of year? >> you're reefferring to an article about dod or -- >> yeah, in the journal. >> for gf, we have been a long-time partner of the u.s. government in dod, we're a trusted foundry. we signed a ten-year extension with them. it makes sense the u.s. government wants to make sure they cover the waterfront in semiconductors. which intel does in high speed single digit complements what we do for the u.s. government. these are not conflicting, these are commenplementary. the other is the c.h.i.p.s. bill that will create broader based

supply. gf, i'm sure, will participate in that in a meaningful way. when that demand is required for us to -- >> but you don't have an update on receiving those funds? >> not an update. >> is commerce over their skis in some of the things they ask for as a condition of these dollars, the degree to which -- where you make your investments, the kinds of disclosures you have to make in the years ahead? >> day care centers. >> so, first of all, i don't think -- good companies don't need rules to have good social programs for their employees. so, that doesn't pay any bearing on what we do. the second thing i would say is the commerce department has been very thoughtful. they're spending $52 billion. you want to make sure you have a very thoughtful and rigorous process in place. that later on you don't create unintended consequences for this funding. i think they're doing the right job because they have an awesome responsibility to make sure $52 billion of taxpayer money is well used to achieve the goals set out by the c.h.i.p.s. office. >> ultimately, you sort of

painted the picture of why countries are doing these initiatives. how do the tensions between the u.s. and china worsening over semiconductors ultimately affect your business in the intermediate to long term? >> i think anything that goes to supply chain resiliency fits into having a global goes into a global network of capacity. when gf was created in 2009, our tag line as a company was the world's first truly global foundry because we believe the world needed a diverse set of capacity, and so we have a head start, more or less, in the industry because we have that global footprint. for us to add capacity in response to customer demand, we can build out the existing campuses we have. and so we have a lot of the rest of the industries going to create over the coming decade. >> that was good stuff. tom, it's great to have you in the building. thanks for joining us. tom caufield of gf.

wework filing for bankruptcy. more details on the collapse next. plus, check out more data from the cnbc generation lab poll, money and youth in the usa. we measure the opinions of 18 to 34-year-olds on the economy a year before the '24 election on the topic of freedom, 52% said res 're still living with their pantor another family member. a lot more results on cnbc.com. or the one made with your drizzly haul? drizly! stock up today, sip well, tomorrow. drizly. (adventurous music) ♪ ♪ ♪

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exactly! don't delay the game with verizon or t-mobile 5g home internet. catch it on the xfinity 10g network. wework filing last night for bankruptcy, chapter 11, announcing a restructuring plan

that includes a $3 billion debt for equity swap. our deirdre bosa here taking a look inside its collapse for today's "tech check" and a little bit of deja vu, deirdre. good morning, sara. in the end no amount of money could make the business model work, holding on to long-term leases and turning them around for flexible, short-term rentals was always a risky proposition, made more so in an era of low interest rates and peak rental prices. it was a wild ride many people with a lot of money and success tried to make work over and over again. this chart tracks the rise and fall of wework's valuation. the founder adam newman sold as a tech startup throughout the mid-2010s. i remember covering the company in the early days. now he was able to create a community and do something novel in the space. what happened next, though, everyone wanted a piece from benchmark to jpmorgan to softbanc. investors were clamoring over each other. mas son encouraged them to grow

the company further and cash burn didn't matter to anyone involved. it was growth at all cost. the disaster side filing, newman's governorance, the pandemic and finally an office market bust that has brought us here today, chapter 11. still, wework was able to go from a less than $3 billion valuation in 2020 to public markets via spac. a year later at $9 billion, and that would eventually lead to the destruction of value not just for its rich institutional or vc investors who were the losers so far in the saga but then left ordinary investors who bought into that spac holding the bag as well. bewr a deal will slash over $3 billion in debt and wipe out most of its shares. the founder adam newman issued a statement yesterday, guys, that i thought was interesting. he said that it's been challenging to watch from the

sidelines. says the product is more relevant today than ever before. with the right strategy and team, he says, a reorganization will enable wework to emerge successfully, which maybe tells me the saga may not be over just yet. >> i mean, yeah, god knows what he has planned for that, deirdre. i was going to ask if it's indicative of a broader trend, right, people didn't fully come back to the office post-covid and rising interest rates or if there's something specific to wework and the way it was run? >> it's not that the model doesn't work. there's a company that operates this way called regus, differently but the same kind of business model, long-term leases, renting them out for shorter-term rentals. wework spent a lot of money redoing the spaces. when the new ceo coming in instead of slashing across-the-board and get out of leases, he tried to make it work, to hold on.

this is an opportunity potentially for whoever comes in to renegotiate, get rid of some of those leases and maybe, just maybe, wework will continue in some form. >> the model might operate well in this new normal. dee, from office sharing to ride sharing, your thoughts on uber's quarter and sort of the misses on the top and bottom line versus the bookings guidance. >> this is also the class of 2010 disruptors. uber has fared much better. today was sort of more of the same. the guidance was a better miss on the top and bottom line. is it still a disruptor or more of a utility? gaap profitability, cash flow, it's positioned well. its competitor lyft is struggling but has renewed strength now and is trying to cut prices, become more

competitive. some of the regulatory stuff has settled. it's less than $5 above the ipo price from 2019 so it continues to chug along. is it as disruptive as a wework? probably not. >> leaning on the eye justed eb ebitda. a lot to work with. watching disney as well, stock is down 3% for the year. hugh johnson will be cfo. iger will join "closing bell overtime" tomorrow directly following those results. you do not want to miss that. a lot of discussion about how some of the operating targets may be a push since hugh is new to the company. >> he has an uphill battle figuring out how to monitor assets and helping bob fulfill his vision, i guess, which

includes a successor. >> we're at seven-week highs for a nasdaq going for eight straight on the nasdaq. >> it helps to have lower rates. it helps to have bond buyers back in the bick tour that continues from last week into this week with the ten year below 4.6. let's get to the judge and "the half." welcome to "the halftime report." i'm scott wapner. front and center this hour, the tech run as the nasdaq goes for its longest winning streak in some two years. the investment committee debating. joining me for the hour today everybody here at post 9, liz young, jason snipe, jim lebenthal and steve weiss. check the markets. the nasdaq is the big winner today, just about 1%. you can see the dow, s&p green. 4.58 is the yield on the ten-year note. the longest winning streak in a couple of years, nasdaq.