tv Squawk Box CNBC July 23, 2021 6:00am-9:00am EDT
good morning welcome to "squawk box" here on cnbc i'm becky quick along with andrew ross sorkin joe is out today it is friday we thought it was yesterday. it is today. happy friday, everybody. let's look at the u.s. equity futures this hour. they are celebrating green arrows across the board. dow futures indicated up by 143 points s&p futures indicated up by 20 nasdaq up 77 all three averages are inches from all-time highs. they closed up yesterday we are looking for gains despite the drop of 700 points from the dow on monday this week. different week at the end of the week than beginning.
s&p 500 is 23 points away from the all-time high. that number puts it at spitting distance from the open look across the board. new highs set everywhere if you looked yesterday, there were a number, something like six s&p components sitting at all-time highs yesterday three were dow. mcdonald's closed back to the highest since the ipo in 1965. nike, highest since 1980 honeywell. highest since the company changed the name in 1963 you also had costco closing at all-time high. it ipos in 19815 eli lilly. the other s&p 500 that closed at that level is moody's since it spun off dunn & brad street.
looking at the treasury market the 10-year is yielding 1.29%. still below 1.3% for the 10-year. the 2-year is 0.2% andrew. the new warning from the cdc director she said the covid delta variant is one of the most infectious d respiratory disease seen by scientists it can carry up to 1,000 times more virus in the nasal passages than the original strain the delta variant accounts for more than 83% of cases in the united states right now. up from 50% from the week of july 3rd the seven day average of new cases is up 53% of last week hospitalizations are up 32%. three states with low vaccination rates, florida, texas and missouri, accounted for 40% of all new cases
nationwide lots of questions about even the breakthrough cases and vaccinated and unvaccinated. people who are vaccinated are carrying it and spreading it to other people. >> i think the viral load, the 1,000 times more powerful and comes early before somebody has the warning signs or symptoms. even if you don't get really sick or symptoms of a cold you could carry the viral load that is concerning because of the breakthrough on the points we talked about it yesterday it may have been off the air a regular mask will not protect you. you need to wear an n-95 mask to get the protection. >> i don't know about you, we stopped ordering masks we still have masks. >> we have leftover ones. >> i wear kids masks when i go into places. we have to rethink this. >> i think so, too we spoken with dr. scott gottlieb he told us he thinks this will peak hopefully in august or
early september. it snuck up quickly on us. you are starting to hear more arm and more cases where vaccinated people are testing positive. whether it is the olympics or the front page of "the times" this morning at a wedding with 15 cases come through. you are seeing it pop up in more places. >> we will talk about the situation in breakthrough cases. 1,000 times having more in your system when you are vaccinated. because 1,000 times more in the system, it takes a moment before the actual vaccine effectively kicks in it is kicking in. the people vaccinated are not ending up in the icu. >> can you transmit to others? >> that question is still unresolved. >> we have kids who are not vaccinated you have people who are with immune compromised systems. >> that's raising lots of
questions for employers in terms of what to do next we will talk about the nfl and what they will do about in a moment it is an interesting one to try to incentivize those players. a panel advising the cdc expressing preliminary support for covid booster shots for people with compromised immune systems. this goes to the issue that becky mentioned. the panel cannot make a formal wrrecommendation until full fda approval >> this is such a kick the can down the road. this was a duck and cover. there has to be a situation. the fda is reviewing the emergency use authorization changed to regular authorization. they have have the data from pfizer, at least this is a sticky thing not my problem you have to figure it out first. >> it gets to the other moral or
philosophical question what do you do with the people who are unvaccinated around the world? they are in the terrible conundrum. >> may be pressure to figure it out quickly. andrew mentioned the nfl is out with a warning it will hold teams accountable if teams have outbreaks with unvaccinated players the head coaches and executives will not reschedule games during the 2020 outbreaks instead, a team with an outbreak of unvaccinated players could be forced to forfeit and take a loss and pay the opposing team's expenses the players association urged players to get vaccinated and reminded them if games are missed, nobody gets paid at least one nfl player is speaking out about the rules in a tweet which has since been del deleted. deandre hopkins said never thought i would say this being put in a position to hurt
my team is making me question my future in the nfl. elliott from dallas says he doesn't think the decision should be forced on others he wanted to be in the best situation for his team week in and week out >> see, you put money inn centi and it gets interesting quickly. it is getting complicated, i think, down the line, especially to a point where you have vaccinated players getting breakthrough infections. the nfl said in the cases, there would be dispensation for the teams. >> you have to have 100% of the roster >> i don't know. if there were teams that were vaccinated who ran into the problems, they would work with them >> that makes sense. >> if teams had -- what is the percentage of unvaccinated
players they won't work with you and nobody gets paid we'll see if teams, but employers do this, too >> i do think it is key to what the cdc is saying. while this is still an emergency use authorization vaccine program, it is tougher for employers to make the situations you have seen it in hospitals where they say because we're on the frontlines >> we'll talk to dr. scott gottlieb about this later. what the nfl is doing got me thinking you know what? you can't use a sick day if you get covid if you are unvaccinated sorry. if you are vaccinated. if you are unvaccinated, you cannot use a sick day. >> that's a bad idea if the employer says if you are unvaccinated and you can't use a sick day goes who shows up for work >> bingo there are things people may do i know we will get tweets about this. coming up when we return,
some big earnings moevers in th pre-market twitter and snapchat and intel we will dig into those reports when we come back. and we will talk to anthony scaramucci and twitter ceo ned segal this morning all when we come back. ♪ but entrepreneurs never stopped. ♪ and found solutions that kept them going. ♪ at u.s. bank, we can help you adapt and evolve your business, no matter what you're facing. because when you close the gap, a world of possibility opens. ♪ u.s. bank. we'll get there together. ♪ ♪
welcome back, everybody. shares of twitter jumping this morning up 5.5%. second quarter earns of 20 cents a share beat expectations. revenue growth year over year. the company cited a broad increase of advertiser demand. the daily active users grew by 7% much of that came international. twitter ceo ned segal will be with us at 8:35 a.m. and at 9:00, ned will join us on the twitter audio chat feature you can see more on twitter afterwards. shares of snap are up this morning, too snapchat parent posted earnings up 10 cents a share. revenue beat expectations and daily users of 290 million
average revenue per user was higher snap says it wasn't impacted by apple's privacy changes as ain adve anticipated it would be. more users opted in to add tracking than across the industry that stock this morning up by 16%. intel shares are under pressure earnings and revenue beat estimates and company raising guidance by $1 billion the company said a boom in computer sales that started during the pandemic may continue as people return to schools and offices. it is the current quarter guidance with concerns the company pointed to a drop in gross margins from 59% in q2 to q3 relating to costs and building chips the ceo pat gelsinger said the shortage could start showing signs of easing later this year.
he said it could take one or two years to get back to reasonable supply and demand balance in the chip sector. broader markets are setting to close out in positive territory despite the monday sell off we will get information from google and amazon and microsoft. joining us right now is kari firestone from asset management and mark smith, portfolio manager at wells fargo advisers. kari, i'll start with you. it has been a wild week. now it seems like a head fake on monday which way the market was going to go. what are you expecting to hear next week and how are you positions yourself >> well, it was weak ending better than started. it has calmed down with the delta variant and the inflation
pressures on the stocks last week consumer products like food and chemicals. you see today the intel pressure is because of the supply chain and costs and technology companies don't seem to have those pressures. they pay high wages and high profit margins and users engagement continued during the pandemic and post pandemic this market is one we are seeing changes week to week and day-to-day whether we are falling -- we believe p tthings are okay with covid. we are calming down and feeling the big cap tech names and growing companies are going to produce the earnings we expect they will pass on inflation. it is not a problem. i think we still have a lot of concern about what happens with those that have these inflationary pressures we are bias to growth companies. we own tech names. we think those will weather this
inflation period better than those that have a lot of concerns our style is more growth, technology and consumer discretionary amazon type names. paypal, visa, american express we own the faang stocks. >> mark, we thought there was a pull back on monday. some thought that pull back would continue >> yeah, i think there were people that thought it would continue here we are. you know, for those who are concerned about the delta variant, seems to be just the media. i'm in vegas you can't get a hotel to stay in you can't get a reservation at a restaurant everything's sold out. it costs 1,500 $1,500 to get heo new york and that was coach. you can't get a layover. when i look outside, everyone is acting like it is normal with
the delta variant. >> as a result, does that mean pedal to the metal >> pedal to the metal. folks are back to normal the fed continuing to have great policy which is great for spending and folks buying real estate you have another potential infrastructure deal down the pike of another $1 trillion or $1.5 trillion. money is flowing and rates are low. i don't see how you have a pull back with the cash sloshing in the system you have to look at the earnings companies are doing well you see the earnings season. none of the major companies, tech or anything else, having earnings surprises of the down side i am telling my clients to stay in the feds are making it impossible >> kari, if mark is right covid
and not changing behavior, tech is a fine place to be, but you could argue other places are completely under valued. >> well w, i don't entirely agre with covid i believe the growth we're experiencing right now is 9% gdp growth will show in the second quarter is unsustainable you can't assume there will be 5% plus growth if we have to have some types of restrictions because of schools or businesses closing more supply chain problems there are shipping issue ys. i think we had a huge rally in the cyclicals and value. those stocks are not cheap
anymore. we reopened. the market is enthusiastic i think mark may be seeing what is going on in las vegas nevada may be a state with a high infection rate right now because so many people are gathering and there may be more unvaccinated i don't dismiss that as a problem. i think we have to watch the types of responses that companies make to the future of the year what they will see with the guidance and we know we saw campbell's soup and ppg and conagra. intel is feeling the pressure. i don't think it is something to just say this is no problem. i would stick with what we know is the sustainable growth right now and watch as the rolling corrections go on. pick up names that are inexpensive the way they bought peloton a month or two ago make sure you don't over stay
your welcome. >> we will leave it there. kari and mark, have a great weekend. mark, in vegas, have fun out there. stay safe. >> i'll try. >> what happens in vegas, you know thanks >> what happens in vegas stays in vegas unless you get on a plane and take it back with you. when we come back, if you live in a high tax state, the cap may have raised your tax bill significantly several states passed a new work around robert frank has details he joins us next. we are awaiting earnings this morning from honeywell and american express we will have the reactn ioon wall street. "squawk box" will be right back. >> announcer: what's works is sponsored by comcast business. bounce forward at comcastbusiness.com. we want both - we want a hybrid. so do banks. that's why they're going hybrid with ibm.
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well, california and new york are the latest states to pass laws allowing a creative way to avoid the s.a.l.t. cap. robert frank has more right now on that front. robert, this would not be the first time these states tried to come up with a creative way. none has worked in the past. they have all got shot down. >> reporter: that's right. the charity deduction they tried a year ago was shutdown by the tre treasury this has been allowed. at least 16 states passed laws allowing for the work around from the s.a.l.t. tax. california and massachusetts and new jersey approved. georgia and arizona and the carolinas about to approve it. it allows high earners to avoid the $10,000 s.a.l.t. cap by
routing that through pass throughs s.a.l.t. taxpplies to busowners they give it a full amount on the personal taxes the state wins since it collects the revenue. the pass through owner wins because they avoid the s.a.l.t. cap. the loser, of course, is the federal government they stand to lose tens of billions of pass throughs that now take the larger deductions and it helps pass through owners and investors, it doesn't help salaried employees since most super high earners get some portion of their income from pass throughs, like hedge funds or private equity, it could reduce pressure to repeal the s.a.l.t. cap in washington we know this is all part of the
reconciliation discussion pushed by chuck schumer and nancy pelosi and others in the high tax states we will see as this kicks in in all these states, if that pressure is reduced and if they can get it done. >> robert, this seems like the stupidest of all work around actually somebody to benefit from the position like this. this is the worst of all possible worlds. this sounds like it only helps the wealthy who can only set up the pass throughs. it will not help the middle class. $10,000. that is not enough in our area where the real estate taxes are very high and we're middle class family can have taxes to surpass $10,000 with the state and local taxes. if they get around it by allowing the most wealthy to do that, this is a rip off. it is stupid >> it is like the rest of the
tax code basically the whole tax code >> oppose the people who are salaried employees and pay their fair share to make sure the wealthy people to find the work around get what they always wanted >> you are right it is not about the wealthy not paying their fair share. it is about a tax system that rewards those who make their income from wealth or pass throughs and private companies as you point out, punishes those who make their wealth and income from wages this is just absolutely right. it is another continuation of the policies that hurt especially the affluent wage earners in the high tax states these are the big donors that donate to the politicians. they will be helped by this. that is why it is unlikely the whole s.a.l.t. cap will be removed. >> this is crazy i like to talk to some of them we have had congress member josh
gottheimer he has come in and said no s.a.l.t., no dice. he will not go along with these unless they lift it. if you are lifting it for the wealth wealthiest people, that is a crazy scenario you can sway me either way that the s.a.l.t. cap shouldn't be lifted or it should. you can't sway me it should only be lifted for those who create the pass throughs and find a work around around the system. >> yeah. on a federal level, it makes sense. what they said when they passed the legislation in 2017 was individuals will be capped at $10,000, but this would not apply to companies they were trying to do all of these things to stimulate growth with private businesses and companies by lowering the corporate rate it makes sense they only applied it to individuals. the states were clever enough to find the work around. >> the pass through s are not
corporations a lot of time it is is wealthy individuals. did they sign off on this? the trump treasury department tried to find early ways to get around it. did the biden administration sign off on this or is that to be determined? >> it was the trump administration because it was last november. everyone was quite surprised that treasury allowed this treasury looked at the legislation. it doesn't apply to companies. we cannot forbid this from happening. they forbid the efforts to gift to a local school charity and deduct that from the charitiable deductions because the legislation was so clear, it did not apply to companies. treasury had to accept it and i don't think it will be easy for the biden treasury to knock it
down the legislation was so clear how it treated companies and individuals. >> robert, thank you i'm sure we will hear more about this thank you for bringing it to our attention. by the way, earnings in from honeywell. the company out with the second quarter results. f adjusted profit was 2.2% a share. that was better than refer revenue. honeywell says results were helped by a turn around in the markets hardest hit by the pandemic commercial aerospace for instance reaction up 26 cents it was lower before the results came out looking for the kmecomments fro the ceo. the strong performance in the second quarter took place in what he called the recovering, but challenging global environment. as you mentioned, it was very
happy about the key end markets hardest hit by the pandemic and performance and turn around there. they are positioned to capitalize on improving positions around the world and ready to execute on near-term growth opportunities we will continue to watch the stock. it is up 26 cents. coming up when when return, the outbreak of the delta variant is complicating the concern to the office for companies. and as we head to break, a look at the s&p 500 winners and losers >> announcer: executive edge is sponsored by at&t business our people and network will help keep you connected let's take care of business. elp. okay, imagine this... your mover, rob, he's on the scene
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meantime, two recent reports on rising covid cases are roiling the return to the office now october at the earliest. federal agencies say the return to work plans in place last monday people representing unions are raising concerns about the timeline as cases surge. that is according to "the washington post. joining us on this and more is shelly archambeau. board member of verizon and nordstrom and ceo of metrick stream what do you think is the answer? so many companies were planning a return to work as a post-labor day ambition, if not earlier now real questions >> there are companies are watching the data very carefully what i'm seeing is they are trying to remain flexible.
creating the optionality to come back to work 51% of the new cases are the delta variant which is more contagious >> what do you think the right answer is insofar as mandating vaccines one reason you wait is the idea you might not have an office that is fully vaccinated i think there's real questions as to whether you can either incentivize or pressure or mandate vaccination. now we are seeing cases with breakthrough cases and what that ultimately means. >> very few companies are mandating vaccines there's a variety of reasons they are strongly encouraging and trying to make it easy for employees to get vaccinated. many of the companies with return to work plans are offering flexibility in that case they are making it voluntary to
start. if not, wearing masks and keeping distance you will see peer pressure start to play a big role here. >> are you a believer of the long-term hybrid workplace or will we all be back in the offers > office? >> i believe there will be a hybrid office. there are studies to show that is the preferred mode. citrix showed over 90% of people wanted the flexibility to come to the office and also to work from home. over 80% of companies are showing they will offer some flexibility. i think flexibility is here to stay especially if you want to be competitive for talent. >> what do you think whabout mandates i ask because of what the nfl just did i would say they are mandating it they are saying, i don't know if you saw the news, if your team
isn't vaccinated, and you have to forfeit the game because the team has a covid outbreak, not only will we not help you, you will not get paid. >> you know, i think there are different wayss to incent. mandating it across the board is difficult to do. there are corner cases for sure where people cannot get because of their immune systems, et cetera we need to create an environment to welcome all people. >> i know i get blasted about saying this. that's the thing i don't understand i recognize there are people that for medical reasons or religious reasons or other reasons may not be able to be vaccinated i appreciate that. i don't understand why there isn't a bigger case to be made that otherwise corporations are saying we are mandating it if you want to come to us and
say you can't do it, we can have that conversation. let's do it like that as opposed to saying this is a voluntary operation. >> an opt out versus opt in, right? >> i hear you. i think as time goes through, companies are encouraging employees to be vaccinated the way they will work and the roles they play. i think in time will be effected not so much in the nfl people vaccinated to do well for the company. >> as a board member, i imagine is having the conversations, is there a lawyer telling you that you will get sued and your employees will sue you and you will lose the case i don't think that is true >> actually there are lawyers telling us here is how you have to do it lawyers are providing advice, always at the end of the day, it is a business decision of how you want to run your company and welcome employees back
you have large companies that serve on boards of fortune 500 with thousands of employees. you have to create an environment which will work across the spectrum and all geographies. our companies are global they have to follow global and local rules and laws that exist. >> and in terms of how quickly you think things return, if you will, how much of this has to do with kids? which is to say kids under the age of 12, are not vaccinated yet. that represents its own challenge. once they are vaccinated, you think the dynamic changes? >> i think the more vaccinations we see across the board, but with kids as well. it creates better scenarios where kids are able to continually go to school and participate in activities and parents can and be where they need to be >> shellye, thank you.
>> thank you for having me when we come back, shares of boston beer are getting crushed this morning the company blaming poor performance in the hard seltzer cat category. don't miss our interview with twitter ceo ned segal after the big beat in the second quarter. you can watch or listen to us live anytime on the cnbc app. there's interest you accrue,
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welcome back to "squawk b box. a take a look at futures dow opening 166 points higher. nasdaq 77 points higher. s&p is 27 appointmpoints higher. chinese media reporting a crackdown on education technology by the chinese government it would ban foreign capital from buying stakes in chinese tutoring institutions and ban from public lifting. you may say what is going on the ed-tech is a hot play in china with $10 billion in venture capital pouring in the sector alibaba and tencent and bytedance. that sector is down across the
board. this is unrelated, i think didi global, becky, is down 10% this morning we should take a look at uber in the united states. uber has a stake in didi alibaba. >> is didi bigger? >> i did not think so. hard to know exactly what has pushed that. >> uber hasn't figured it out yet. >> potentially not maybe there is something at play there. >> it is interesting to see didi down so much more than the rest of them. in the meantime, if you are a beer fan, sam adams. boston beer shares are tanking sam adams reporting $4.73 a share. $2 short of estimates. revenue of $603 million. missing estimates by $5 million. on the call, executives had high hopes for the truly hard seltzer
brand that did not materialize blaming several factors. a maturing market and a crowded market of new brands in the category tough comps compared to last year when people stocked pantry. and slashing target from $1,550 to $875 per share. it downgraded the stock from k neutral to buy >> i wonder the switch interest buying and stocking at home and being out. maybe the grand brand doesn't he same relationship. a lot of them. high noon. what is the one that joe kept talking about last year? so many seltzer brands there are a million of these. >> they are everywhere >> if you can get to the right
outlet or in the places where people are now buying alcohol because they are not buying it and taking it home as they were in the pandemic. >> they may have been late on the hard seltzer push. >> white fang? white claw thank you. that was the one joe was obsessed with. when we come back, we'll talk to the ceo of an industrial company of this mystery chart. as you can see, the stock is up more than 120% in the last year. the ceo says he expects the company to set a new record for quarterly earnings next quarter. 'soi tjo unext
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welcome back, everybody. shares of nucor have been on a tear this year expecting $5.04. the highest in the company's history. the ceo expects to set a new record for earnings this year. so far, the stock has soared more than 75%. for more insights and the road ahead with the possibility increase of corporate taxes and infrastructure deal, we are joined by leon great to have you today. >> great to be on with you, becky. >> let's talk about the earnings reported and you are looking for the high rest earnings in history because of the improved pricing. >> at the end of the day, when you have the right strategy and
the greatest team assembled, the results we are seeing are possible with the demand we are seeing across most sectors, automotive, agriculture, even rebound creating a strong demand situation, you mentioned infrastructure, nucor is posed to capitalize on those markets as we line up, nucor is in position to move forward >> the biggest reason is the new command. we've got all kinds of manufacturers working on this deal >> certainly, the supply chains are incredibly tight looking at inventory
auto was about 27 on hand and how we look at service centers across the steel industry are at historic lows. there is some tightness and supply, u.s. producers have the capacity to meet the demands of today's market >> are you having trouble shipping the steel to the places you need to get and having trouble getting the things you need to get your essentials into your plant or the finished product back out >> the challenge is still there but we are mostly domestic, so we are able to control that but whether it is delivery side with
ocean fraet, we are able to meet the demands with more products on our customer base >> i know you have pushed on to pass the infrastructure bill, what would that mean the culture is the safety and greatest of our team is the greatest responsibility of our company. the safety and infrastructure is incredibly important we are driving on roads and bridges designed in the eisenhour administration
i believe we are as close as we have seen in my career to see something incredible pass. >> thank you for your time watching the stock today, 94.02. we appreciate you being here >> thank you for having me appreciate it. as we head to a break, a check on futures ahead of the trading day on this friday morning. the monday selloff is a distant memory nasdaq up about 72, s&p 500 looking up about 21 points a huge lineup coming your way including josh bolton, anthony
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earnings season rolls on we'll break down some of the big names reporting overnight. and the new obstical emerging. business round table ceo will join us to talk about his meeting with the president on the issue as the second hour of "squawk box" begins right now. >> good morning. welcome back to "squawk box. joe is off today, things are powering higher. we are in the green across the board with the dow opening up about 160 points higher. nasdaq up higher s&p 500 up about 21 points higher earnings crossing. quarterly profit coming in at
$2.80 a share up from $1.66. revenue from analyst seeing strong demand for fee-based products such as its platinum card which reached record membership surprising. maybe this is a reopening trade with people planning to travel >> must be because american express is more tightly tied to travel let's get to dom chu looking at what else is up in the pre-market a lot to choose from not just about the travel side but business spending, you could see amex become a proxy of that reopening trade. speaking of the markets so far this week, there has been an
interesting move so far with what's led to the overall move off the lows the s&p 500 discretionary sector has done a lot of heavy lifting. utilities is the worst performing sector giving you the idea of that move. the reopening growth and a little less away from the defensive paying those utilities. looking at one hot part of the market with that sector, it has been cloud commuting the ticker clou this move higher with stocks and z scaler goes to show you when
there has been a discount, they've stepped in on those plays to see if that theme continues as well. some of those stocks that came out after those earnings we are talking snap, parent company of snap chat and twitter. driving big gains in snap, up 17%. it is having a carryover effect. looking at pintrest. facebook and pintrest going along for the ride this morning too. >> we just spoke with the ceo of nucor talking about the higher pricing for steel coming through
doesn't see demand for that. coffee is skyrocketing part of that is because of the freeze taking place in brazil where they grow the coffee it has been damaging to the crops there we haven't seen damage or freezes like this since 1994 working into much higher prices we still see the inflation out there. >> when it comes to weather like that, almost the definition of transitory i watch the price. arabaca surging to levels we haven't seen we look at things like lumber. corn prices are the same
the issue is whether or not if you have a reset lower, if that lower level is where it was before if you have that step-up trade over time, that's the definition of inflation the issue is whether those step ups or step downs keep it on a level higher we didn't see that with lumber, hopefully. with coffee, i kind of feel like i'm waiting for like the next year when we'll hear about bumper crops of certain types of soft commodities out there it is the definition of volatility and commodity markets. probably one of the reasons we do see them strip out the cost of food and energy >> steel has to do with whether or not you see infrastructure bill passed. >> yes, i've seen that play out in commodity producers
not just steel, metal and copper caterpillar, rentals, heavy equipment makers have been in the construction play for some time as well >> thank you meantime, intel second quarter results beating the forecast the company's third quarter sales outlook is just above sales estimates and revenue guidance company ceo and chip maker still supply constrained will take the industry two more years to catch up with demand. there is a great growth opportunity for the company ahead. >> for the industry and for us we are working to build more product. >> first half to second half, we have more expense as we start bringing on more 10 nanometer, 7
nanometer costs. we move to the next process. we expect asps to be fairly stable we have a unique one-time charge in the fourth quarter associated with the high performance computing business you might have noticed john, i did a big reorg, well put a new emphasis overall, i think it is a pretty positive story for intel >> catch more of john's interview with pat gelsinger later this morning on tech check. we are watching a move in chinese stocks chinese media reporting a crackdown on education technology by chinese government they would ban such chinese institutions from public listings you might say what is the
connection here. the ed tech market in china has been a hot play with $10 billion pouring into the sector in the last year alone. alibaba, tencent and bitdance are names we have seen in the education sector across the board. >> in theory, those companies have a stake in education, you wouldn't allow american investors to buy into them, i guess the question is how big are those stakes it is not something i thought about with any of those. just to say for get about it, the other aspect of it >> this is all happening real time so we have a lot of questions here you are really seeing the chinese government crack down on so many components
what that ultimately means we saw didi down, i don't know how much didi has at stake in the education world. >> for years, it has seemed like china would promote the technology and seen global leaders and investors. lately, it has seemed like it is more interested in maintaining control. >> other issues like facebook, apple, google. saying, look, stay away from us. we need to compete against these big guys that argument becomes more complicated. maybe we should ask our next guest about that he has some views. business round table ceo josh bolton will be with us after the break sharing details of the
meeting with president biden and business leaders on the bipartisan infrastructure framework. let's check on the markets we are in the green on this friday morning dow up about 163, naaqp sd u65 and s&p 500 looking to open about 20 points higher we'll return after this. and extra time needed to help you avoid an overdraft fee. it's one way we're making a difference. low cash mode on virtual wallet from pnc bank. low cash mode on virtual wallet ♪ ♪ ♪ digital transformation has failed to take off. because it hasn't removed the endless mundane work we all hate. ♪ ♪ ♪ automation can solve that by taking on repetitive tasks for us. unleash your potential. uipath. reboot work.
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together with president biden and vice president harris in an effort to push for a bipartisan infrastructure deal. negotiating that package say there on the brink of finalizing a deal but a major dispute on how much money to spend on public transit is holding things up democrats want 80% of the funds allocated on the project on highways with 20% on mass transit. republicans want less than 20% to go to transit this latest snag sounds perfect e -- pretty minor compared to the other issues we've seen. >> thank you for having me the meeting went well. the snag you are talking about
is a real snag but there are dozens of those when you are doing a bill of this size. they can get past it there ought to be a compromise there they can arrive at most importantly, the business and labor communities are united in very strong support in pushing this infrastructure, this bipartisan infrastructure deal across the finish line. that was the focus of the meeting. it was about half dozen business leaders. labor leaders together with the president, vice president, the overwhelming mood was, hey not take care of this little thing the overwhelming sentiment in the room both to the president and from the president was, we can get this done, let's get it
done then is the bigger issue here, josh we've talked about this. the idea we have business and labor unions working together to get this done. you still have the question even if you can reach an agreement with all these senators, whether this entire thing will get passed because of the administration not just president biden but nancy pelosi saying she's not going to pass it even if the senate agrees unless she first can get the other part of the infrastructure bill, the softer part, the people, human side that democrats only want passed first. that would threaten to blow up the entire bipartisan deal the bigger question is, is this administration going to let the good go for the sake of the purchase what's your answer after meeting with the president on all of this
if they could work on a bipartisan deal would it be passed through the house and would the president sign off on it >> i'm optimistic they will. that was certainly the message don't let all of your aspirations prevent getting some of all of our aspirations across the finish line. the president responded favorably to that. what he said to us was, he did not want this infrastructure bill to turn into a big clash. we are going to have a clash on issues like taxation and a lot of other kinds of spending outside the infrastructure area. but overwhelmingly, there is strong business labor and bipartisan support for the kind of infrastructure spending contained in this network. the strong mood in the room
there was let's harvest what we can get bipartisan agreement on, which is no small thing. this bill would be a very large investment in restoring the very important infrastructure in the united states. roads, bridges, all of which are critical you didn't have the aggressive voices to say for get about it you can't give them this to give them all that you want pushing through. how does that play out everybody is feeling that from the caucus and you didn't have any of those voices in the room,
read a room. we don't care about how to get a sausage made from your read around the room, that matters it is super important that white house while harvesting what they can with the infrastructure package. there are the republicans. senators portman, collins and others who have beenworking really hard to make sure this package has what they need and hopefully to get a lot more. they've all been working hard to keep it together it would be really bad not just for infrastructure and in a rea
place no doubt where they can come together on infrastructure where there is broad bipartisan agreement the democrats passed this bill and they do it with reconciliation and higher taxes for the businesses they represent. what would that mean >> i believe they can pass it with democrats only. there are a number of democrats who have resisted the notion that they have to jam everything
on a bipartisan basis supportive of the posture they were taking. to be successful, then a lot of the benefit that comes from moving our infrastructure up to a globally competitive level would be offset by higher taxes on the u.s. businesses on whom our economy is dependent for creating jobs and prosperity and remaining competitive. >> let me ask the devil's advocate question. that nothing gets done or something gets done and it costs a lot more >> wow, firing squad or hanging?
yeah, i don't particularly want to choose between those two this infrastructure framework is carefully crafted and i believe that can get done on a bipartisan basis and then go ahead and fight over the reconciliation bill and see what all democrats can agree to that i think most of the business community to go back to where we started and letting the full set
of desires >> how long will this take i think we'll know by the time senate goes on recess. we are scheduled to go on the first week of augusts that fine. this is worth giving up some vacation days for. >> thank you when we come back, sky bridge capital founder anthony scaramucci will talk bitcoin and much more. we head to break and look at this morning's winners and losers in the s&p 500. we'll be right back.
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now the answer to today's aflac trivia question. which president is said to have discovered vanilla flavor while visiting france? the answer, thomas jefferson delivered a hand written copy of vanilla recipe the library of congress houses a copy with a cookie recipe on the flip side. still to come, we are live on the nasdaq terrace. anthony scaramucci is here live with us in person to talk china's big crack down and the big swings in crypto
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welcome back we are on the nasdaq terrace can we call it the squawk terrace. take a look at some chinese stocks down today. down even further, chinese education sector cut in half how should chinese investors think about what is going on and more we have to talk crypto and covid and where the markets are headed anthony scaramucci is here
sky founder cofounder. it is great to see you here. >> great to see you finally. 18 months later, the 10 pounds you lost, i gained >> you are looking good, my friend let's talk about what's happening in china we have seen headlines like this now for several months in terms of what seems to be a crackdown of technology there. what is happening for the government >> it's a tiananmen square moment starting to act in what the communist party thought was a
rogue-ish kind of way. remember, because of the lack of freedom in china, they don't have the iconic personalities they can export. no madonna, no cher because of this level of repression i'm optimistic for the united states for those reasons >> for the last burchl of years, we've looked at china as a major competitor if you were a large tech company you may even feel better about that or it may take your argument away. >> i think it does take the argument away. as the world is changing looking
at 200, 300 patents we need more innovation in society. >> we've never had this conversation before. >> what do you think of these big tech companies i think they've been staggeringly successful. like everything, likeyour landscape, it needs a little pruning if you are sitting on large scale duopoly, we are learning that in
telecommunications 35 years ago. this doesn't mean you have to break them up but you have to start sharing them with innovation in younger generations. >> does that mean you would regulate apple amazon? >> they are already regulated. it is a better eco system. you don't want these large companies stifling innovation. >> what are you doing? is. >> i would mandate more patent sharing and innovation sharing the gerry yangs, the bezos of
the future, you don't want them stifled out. >> the nfl trying to incentivize their teams saying, look, you have to get the vaccine. >> people distrust the system. the establishment haslett down a lot of blue collar people. i grew up in an aspirationsal situation. i wish they would express more education. i'm fully vaccinated you are. we are safe. there is going to be a brother on brother fight breaking out on this stuff because people are scared but they've also stopped trusting the establishment
it is a combination of things. better communication and letting people know, you are going to be safe i don't have a microchip in my body it didn't aggenetically alter my cells. it is allowing the system to open up. if you have young children, protect them >> would you mandate >> i mandated for my office. we are a private company if someone wants to fight me, that's fine. >> i'm also mandating at the conference at the javitz center we mandated it there to keep people safe. you've been to conferences
recently where they've mandated it >> yep >> a lot of leaders who say i can't mandate it either my lawyers say i can't or -- >> they are being soft we are in a society now where people are so politically correct. we have this woke and me too, she too culture. get vaccinated if you don't want to, leave. that should be the message >> one of my buddies told me if they make it mandatory for city field, he'll get vaxed this is not total tar yan. this is once in a while, we have to team up for society >> we've asked airline ceos if they should mandate for everybody getting on a plane
or if you are walmart, say you can't come into my store they think that's bad for business >> become a lightening rod for controversy and it politic sizes the thing. fur a private company, building your own company, you feel more comfortable. it is the right thing to do. what i don't like going on, we have left leaning policies and right leaning policies how about right or wrong those will fix the situation and get us out of the pandemic all of the hysterical nonsense, likely foreign influences affecting the eco system >> you think there is foreign interference around this is. >> i do. i think there is likely foreign
influences trying to split the country from the inside. smart people, empathetic people, we need to talk and explain the risks and the safety and the greater good theory if we all get vaccinated, we'll be out in society and economy faster there will be more jobs and income >> give me your take on monday, it was a bit of a head fake. there was a real sense, i think. there could be a pull back in the markets. we haven't seen it compared to where they were. >> there would be a natural pull back but this water wall of liquidity will keep the markets rising making a presentation in the southamptons over the weekend.
i want to applaud kathy wood getting musk and dorsey together is letting people know that the people's biggest influences are going to be involved in bitcoin and scaling bitcoin. if this is amazon 1997 to 2000, which i believe it is. i don't want to get juked out. >> is bitcoin apex or is etherium >> we have a lot of folks saying the thing i really want to hold is etherium? >> we started an etherium fund those are the big ones
yes, i like those two. i think there's room for coke and pepsi and i think there is room for etherium and bitcoin. >> we are having a happy hour here at 9:01 >> we can organize that. coming up. thank you, anthony kkr will give us his midyear outlook for the markets. the inflation and state of the economy. that is straight ahead and twitter cfo ned segal will be our guest we return after this
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you'd be talking a new level of closing highs. treasuries, the 10-year note now. yields are up but not back yet intel, the company raising full year revenue may continue even as people return to schools and offices. pointing to a drop to 59% citing supply constraints the stock off by 2.5%. semiconductor supply shortages
could show signs of easing later this year but could take one or two years to get back to reasonable supply. that's a long time frame now hear more later this morning coming up on tech check. boston beer shares down sharply. maker of sam adams reported $2 short. revenue of $306 million missed estimates by $305 million. they had high hopes for the truly hard zeltzer brand a maturing market with less new trial. tough comps kpired to the pandemic when people were restocking their pantries. when we come back, kkr chief investment officer will join us.
big thoughts for his second half of the year update more after the break names coming up in the next hour dr. gottlieb on the delta variant. watch us live op the go onhe t app. we'll be right back. ave a better finance system than we do. workday. how do they make better decisions faster? workday. it's got to be something workday. i think i got something. work... hey, rob, you're on mute. hello! hey, rob, there he is. workday. the finance, hr and planning system for a changing world. as i observe investors balance risk and reward,
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as we hit the half way point of 2021, investors are asking he answers that question and lays out why this cycle will be different than before. talking about this and proposing an alternate name for your report basically this time is different. not same as it ever was with a question mark, right raising rates. talking about debt which didn't balloon. extraordinary on a balance sheet that is up
that's 21% of gdp. looking at the fiscal stimulus happening at a time when a lot of companies haven't invested in cap ex we have a huge surge in demand we are watching a massive global energy transition. thisreminds us a lot when you had demand for commodities it is not going to be a great moderation of cycle. we have prepared as a firm for more of a reflationary. running about 8% below average
that is worth highlighting ultimately, it will lead to a more sustained and sticky situation. thus far, a lot of the pick up has been around used car prices. around 30 to 40% of the inflation increase housing will remain tight. i think we'll see continued increases in health care education. those three elements are over 50% of the core cpi. we are not in the run away inflation camp there is a stickier element. we've been focusing on pricing power. we've been doing a lot more in areas such as real estate, infrastructure and asset based finance. >> reading through your report you said, austerity is out maybe
saying this time is different from the last cycle and maybe it looks more like the roaring 20s. >> ultimately when you get something like the pandemic, what do you do you can deflate on your wages or hold mom mall gdp and try to grow your way out? what is the most powerful? that fourth option ultimately, the biden administration and asia, they are looking at low rates to spend on things like infrastructure through more spending and bigger deficits one of the reasons in the inflationary environment
from that win today, you want that collateral because ultimately, they are not reigned in clearly, as the government has been spending more, i do think you'll get a snap back in demand that will lead to taxed revenues we will lead this under control. that's not the focus now people are really worried. money supply is going from 20% to 5% in our earnings model that shows growth going from 40 to 5. s that got people nervous. >> we are almost out of time how long do you think this market will last >> midcycle. we are still confident the cycle
is going to continue >> henry, it is great to see you. thank you for your time and this report >> thank you have a great weekend coming up, what you need to know from last night's big tech earnings twitter and snap both topping and we'll talk to twitter ceo. we return with another big hour ahead. plans for the long term, and plans for a long weekend. assets you allocate, and ones you hold tight. at thrivent, we believe money is a tool, not a goal. and with the right guidance, you can get the financial clarity you need, and live a life rich in meaning, and gratitude. to learn more, text thrive to 444555, or visit thrivent.com. hey, it's good to see you. the company we've trusted to keep us working remotely,
good morning futures point to a higher open honeywell and american express both beating on the top lines. twitter shares soaring as well you've got the latest on user numbers. first on cnbc interview and spanning the globe taking you off to beijing for the latest crack down and to tokyo for a live update from the olympics final hour of "squawk box" begins right now
good morning we are live from time square we started out the week with the dow down about 700 points. big gains tuesday, wednesday, thursday to the point where you are already looking at week to date gains you had the s&p up by almost 1% and the nasdaq up also, the nasdaq up about 52 the yields have picked up.
10-year hit 1.3% 30 year is 1.941%. two year at 0.02%. >> let's get to dom with a look at the big market movers >> from an earnings perspective, we are seeing bigger moves commenting that some of their bigger drivers have been with genz and millennial drivers. honeywell up as well kimberly clark came out with earnings that disappointed revenues did cut their forecast with uncertainty around the
pandemic as well also keeping an eye on what's happening with other key areas specifically with regard to coffee becky mentioned it. starbucks shares up about 15% year to date analysts have updated this stock to outperform. they put $142 price target on the stock. this company has improving fundamentals better demand and a good loyalty program they think hopefully will power the gains 10-year note always comes in at 1.3% dominos on the heels of that about big report apple and intel with a look.
on those searches. i'll send those back over to you. >> dom and looking at dominos pizza. have a fabulous weekend. >> thanks. i appreciate that. snap and twitter both soaring after reporting better than expected results. julia with more on that front. these are some strong numbers? >> what's key, becky, it wasn't just snap and twitter passing expectations their third quarter guidance was better than expected up nearly 70%. with that user growth with
advertisers pending and engaging daily. saying that snap map will be the next tool for business the operating system limiting the ability and still isn't clear what that impact will be twitter call is focused on the trends of ai, decent ralization and global currency in bitcoin he says they also intend to lead the way in those >> we are so much faster with products such as super follow, subscription we can reach every single person on the planet instead of going on a market by market approach i think this is a big part of
our future they will diversify beyond advertising. >> this will be happening soon the subscription service twitter blue will expand beyond the initial test they'll be able to sell products beyond that. >> so sell products like what? >> like i could start macramae >> if you have a j. crew business profile retailers and consumer products company like harrys saying we are not just going to advertise, we are going to make it easy to buy even on twitter. so they can easily get into this
e commerce game. commerce is key in a lot of ways not just as an additional are revenue piece. >> right so they would show you a dress and you could click on it and buy it instantly >> you are right they've had it on instagram for a while. >> and they want to use bitcoin for all of this. they think all of these would be easier with the global currency jack dorsey is such a fan of >> i get that on one level but using it as a currency when it is so volatile and swings so much, that seems crazytoo.
>> they want to be in this transitional business. so far, twitter has just been an ad supported business. so it would be such a leap to having all of these different ways people and brandts could make money this is the first time i've heard him share his passion. >> dorsey is like the yen and ned is like the yang we are looking forward to that thank you joining us on a first on cnbc interview and more on a
twitter live chat feature, spaces this drop comes after some reports that the chinese government is tightening control of education and tutorring companies. maybe more importantly, we are looking at drops in other companies. this is the crack down when it comes to beijing and technology we'll take to you beijing for a live report after this break
we are seeing a broad move slower after tech reports that the government is cracking down on education and tutorring eunice yoon joins us with more these are some steep declines. what happened? >> it seems like a rumored clamp down on education here has come into effect. they've started to implement a policy that targets after school tutorring firms. the document circulating states
all private tutorring firms must register at ngos they are bands from raising funds on the stock market and foreign investments. the document states those who have violated the regulations will be cleaned up and rectified. those lists companies, education companies in the u.s. are soon or not already in beijing's crosshairs several big tech companies alibaba and fintech have funded ed tech firms. this comes when china is looking to bring down costs for parents and encourage them to have more babies as part of the now three-chiel policy it mandates that private classrooms on the weekends, public holidays, school
vacations and after 9:00 p.m so that's the stated goal. because the document focuses on bringing back more to the public schools and bringing about the governmental control >> we know the direction things are headed we don't know the extremes we know how it plays out with investors. >> because it is unknown, people are worried about the worst cased scenario you would see quite a bit of control with the public school system as well as private education. not really being entertained as much some of the international schools have been saying they are being instructed if they have chinese nationals in their
classes that they need to adhere to the public school curriculum. >> i don't know if you heard this earlier described as a tiananmen square style crack down on capitalism the idea that up until the past 6 or 8 months, we thought china wanted to sort of build these national champions i think there is questions about what that looks like and how foreign private rivals should look like inside china >> we keep hearing, the country wants to have global champions and wants to compete on the global stage usually in private circles as to whether or not it is really
possible to have both. >> it is very difficult right now in the current environment when it is so uncertain as to the goal posts and what they think is right and wrong and a lot of the companies cannot operate in a way that they feel comfortable. even getting people to talk on camera or privately is really a struggle because people don't know what to think about all of these clashing policies. >> eunice yoon in beijing, thank you. i'm sure we'll be talking more in the coming days a look at the growing economy. managing director and former house director from virginia before we get into the markets, i would love for you to weigh in on what you are seeing.
>> it is clear the communist party in china is increasing its grip on all things, when you have online education and the information in the flow of that as a part to exercise its control it is clear what we are seeing in the cross border transaction in china is the decoupling in the u.s. and china is resulting in more business between china and europe something we'll have to get ahold of herein this country i don't think any of the
policymakers here in washington will want to tolerate some of these actions. frankly at 20% of the population in china these are things that will need to be worked out >> does this change the dynamic in washington and how they are thinking about big technology companies and banks in the united states. one of the big arguments around the corporate side is that we need to be big to be able to compete with china if there is a crackdown, that might change the dynamic, no >> i do think if the communist party decides that they want a global champion, they know that. they don't have a switch can you turn on in washington, thank goodness, which would create something controlled by
washington i think there are other forces frankly at work in washington on the antitrust and regulatory side becoming clear on the part of the biden administration where there is a big part to go after big. it is worry some to me i do think we need competitive global champions coming from america. we'll continue to have that. it is a struggle and we are in unchartered territories when it comes to those proposals out there by the biden administration a great baro meter of confidence and where we are with the economy and the delta variant and raising new questions about bringing people back to the office and how that confidence may or may not be shaken
in general, i think there does exist a lot of optimism. a lot of excitement about the reopening and a discussion as you suggest. we are seeing an increased momentum around m&a. historically low borrowing costs and prices there's another trend we are seeing these are becoming increasingly more and the consistency of m&a and what we are calling the
growth sector. all of these seem to be in place for the tale winds who knows what washington will handout in terms of head winds >> how much do you think taxes will play a role in businesses that may seek to sell in this calendar year? >> andrew, i tell you in several conversations i'm having with clients, there is a real sense that something may not be in line with the outlook. that is proofing to be an 5:0 sell 5 5:0 accellerant to get something
done in the public setting, you've got something providing the uncertainty and they may already be beginning to impact people's thinking. >> great to see you this morning. hope to see you in person soon >> i saw anthony on the roof it looked like a good time. >> come on over. we are having a party. when we come back, dr. gottlieb will join us to talk about the rise of the delta variant and new numbers out of israel on infections on vaccinated people there. we'll take you live to the olympics in tokyo. "squawk box" will be right back.
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people outside sitting there waiting to see fire works, hoping take in the music and feel the pride of their country kicking off these games. it will launch a very unusual olympics a lot of restrictions. athletes that have gone from being prepared last year and suddenly put on ice and retrain and get ready for this one a nod towards the efforts they've had to go through to get ready for these games. >> stephanie, hope and looking forward to talking to you a lot moreover the next two weeks to get a view from the ground there. we appreciate it >> we'll be joined now to talk a little more about the impact of covid on the games with dr. gottlieb he serves on the board of pfizer and illumina
we are watching the olympics open up. there are questions and concerns of what this means, especially what this means with the delta variant increase >> the testing is important. they have a turnover of cases buts that the system working and not failing. hopefully they identify before they become an outbreak. different from what the nba did, they won't be able to deploy testing. unfortunate to see only 80% of the us athletes vaccinated the fact we couldn't achieve a higher rate of vaccination to protect our athletes and people,
also to set an example is unfortunate. these games will come off and with the testing and procedure to move their athletes around and control the outbreaks. >> can you weigh in on what we are hearing from the nfl effectively to incentivize people who don't take the vaccine and to get the entire team and clubs to be vaccinated. they are saying, look, if you are not vaccinated and something happens and you have to forfeit, it is going to cost you. >> it is like mandating without mandating. as we head to the fall and winter and vaccines will achieve full approval. business wants to restart and people want to restart
activities to the extent that vaccines will bring an added measure, i think you'll see more sports teams and business ven use start to mandate vaccination. >> doctor, you are on the board of pfizer, original creator of this vaccine study in israel suggests a drop in protection. where do you stand >> there seems to be an efficacy and this debate around boosters. in particular to frail elderly people it doesn't look that discouraging
overall, with a decline against any infection and leaks on top of that. those leaks from the data set showing the declining in the severe disease and cohort when you age stratify it, you see the older population in the older population, you see a more pronounced decline. that wouldn't be inconsistent with the data sets we've seen and seeing an older population with a weaker immune system and response we started talking about the possibility there may need to be boosters at around this time this may become an annual
injection. there may be a population that does need to be boosted. we need to be looking more closely around the u.s particularly nursing homes we mandated the nursing homes back in december they are entering the 2021, 2022 covid season delta wave with a vaccine that is quite old. we should be looking at protecting that population and whether they need a booster. they are behind the ball there we believe this data may be correct. it is unclear what is happening
there. >> making me feel like the cdc doesn't have any idea where they are headed >> i think they are having a very hard time modelling this. it reflects the fact we are having a difficult time doing ascertainment. we are measure how much infection is under way in the u.s. and where we are in this wave i think we have a hard time measuring how durabled immunity is going into the final week of august 14. measuring 10,000 to 100,000 infections a day >> going to the idea of a booster shot why do you think it has been as resist tent as they are that a booster could even be necessary.
you are getting the ideas pfizer is pushing this because they want to do this for profit as opposed to what you are saying and maybe some of these studies are saying that they actually maybe needed >> if we require boosters in the u.s. it would be the older population anyone vaccinated now wouldn't need a booster we are talking 30 or 40 million injections out of 4 billion delivered by pfizer next year. this is not a big component of what they'll be delivered to the world. i reject the motion that this is somehow an effort to get more vaccine out there. we have legitimate public health concerns we don't want to see vulnerable people at risk >> why is the cdc resistant to having this conference in public >> from what i'm hearing, the
cdc believes there are some problems with the israeli data they feel they are oversampling the covid population by oversampling or overtesting and undersampling the general population the cdc isn't seeing it in their own data set they are only looking at people become vaccinated become hospitalized they are not seeing the decline in the general population. the uk also isn't seeing this in their data set the uk spaced apart their vaccines more. it could be spacing apart, could you get a more durable response where we tried get the vaccine out as quickly as possible because it was a setting of a raging epidemic. going forward, you could get a
boost with a third dose, we may space these apart more we are learning as we go we are seeing declining efficacy in the older population. we need to make sure they are protected because they are also the most vulnerable. >> talking about the ability to spread even if you are vaccinated in los angeles, the number that 20% of the cases were breakthrough cases the question now being asked of those who have children who are unv unvaccinated whether those folks can be spreaders >> we don't know the answer to that question. sharply reducing with that old strain, it is possible where you have higher tiders, you could be shedding more virus.
my advice to people who are vaccinated if you think you could be symptom magnetic even in a setting where you are vaccinated, take appropriate measures if you are around a new-born baby in a very big wave of infection. >> if you are in connecticut or an area of vermont, your behavior can be different in missouri, texas or florida, those are areas where there is such a high prevalence, anyone could be a carrier of this infection. >> thank you, as always. we look forward to talking to you again. twitter cfo ned segal will join becky live on the squawk terrace. that interview straight ahead after this have a black owner.
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more positions in the next five to seven years to try to expand wealth management. that would more than double the 450 working at the firm. still lagging behind morgan stanley with 15,000 wealth advisors looking for a gig in the wealth advisory business, may be a place to look. >> shares are jumping after very big earnings the biggest pre-market gainer now. becky is live with their cfo ned segal right after this break, first on cnbc. that's great, carl. but we need something better. that's easily adjustable has no penalties or advisory fee. and we can monitor to see that we're on track. like schwab intelligent income. schwab! introducing schwab intelligent income. a simple, modern way to pay yourself from your portfolio.
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welcome back shares on the rise social media giant posting its fastest revenue growth in seven years. twitter citing a broad increase in user demand joining us live twitter cfo ned segal. vi to say there was a headline this morning that said twitter is having an inex policicly awesome 2021 explain to us. >> we grew our audience by 20 million people we are delivering better ad, more relevance through age-based
targeting, location targeting against a really strong macro back drop. events are going on. advertisers are launching to connect with users >> i thinks that probably the big question a great eqinoxic background. we saw the numbers from snap too. how much of it is a strong background and new ways of advertising showing up on the site and new ways of doing it and what investors are really trying to do. >> our own strategy and execution. if we weren't delivering ad formats you could swipe and go to different destinations and piloting for game advertisers so you could play a game inside of the ad and download the app, if you like it. delivering on better age based
and macro targeting. the audience is so important as well we are making it easier and easier for people to find what they are looking for >> what happens, do advertisers pay more for that targeted spot. is there just more landscape >> really all of those more landscape because we are doing a better job growing the audience and more relevant ads there's a lot of shift towards digital ads from tv and other places where advertisers are showing up before. >> what do the olympics mean for you and how much it may not be great for japan. some advertisers in japan aren't bothering showing up and others are. what does this mean as an opportunity for twitter.
the olympics are a great audience and advertiser for us people come to twitter when they can't be in the stands to see the roar of the crowd. we'll have all of the medal moments, so advertisers right before from all around the world waiting for this global moment to connect around the world. we've been preparing for two years and we are excited to deliver for audience and advertisers. >> jack dorsey commented last night, he has these big thoughts i don't always follow what he was talking about. i was looking forward to talking to you maybe can you explain it stuff on ai, bitcoin how does this play out what is the big grand theory on how it plays out and explain it on the bottom line and what does this mean with numbers >> we are leveraging machine learning and ai to deliver
better outcomes. that means showing the right ads, the right notifications to bring you back to twitter in a moment you really care about that's an important part of our work it means from a health perspective, now 60% of the tweets we are finding through machine learning as opposed to a human needing to be involved jack talked about bitcoin. if you sit back and think about de decent ralization. tweets, we want them to be through bits we want to higher people around the world and to help people find their customers on twitter whether selling something or doing a premium subscription called super follows, that's tweets >> how do you do that, with a credit card, apple bay or
paypal if you start using bitcoin, it is pretty volatile i'm not sure it is to the point can you do that for every day transactions >> there is a good amount of friction taxes, currency, different systems at work. what jack was talking about is the opportunity to use a decentrali decen decentralize currency to overcome those right nourks you can't buy something on twitter but coming up, you'll see a buy button. you'll be able to subscribe to becky's best tweets. now they'll pay to see your premium content. >> not sure people will pay to see my tweets but i get what you are talking about. let's talk about what is happening in terms of push back from washington and making sure
they are policing what is being said on twitter. we heard brooind say they were killing people before he walks it back with misinformation and amy klobuchar put forth a viola misinformation that's been spread when it comes to health concerns that are out there. what do you say to something like that? >> we work so hard to make sure that twitter can be a trusted source of information around covid. we've had over 200 million people come to our covid resources about 3 billion times. that means they're coming on average 15 times each. that means that they're finding trusted information, and they keep coming back to learn more we've removed over 11,000 accounts for violating our policies around covid, and we've removed over 40,000 pieces of information around covid we have to keep being vigilant about this work to make sure that twitter can be a trusted source of information.
we're >> if this bill went through, would it be a problem? you're always going to have somebody who's table to post something that says, okay, here's this quack theory that's completely untrue? >> i'll have to look more closely at the bill. when we step back from any one piece of legislation, when we think globally about the challenge of getting people the facts around covid, around vaccines, around anything else, it's so important that we move as quickly as we can to remove the information so that people can come to twitter and continue to trust what they find when they come there. >> i know you all addressed the issue partially last night, just in terms of apple and the new privacy restrictions they have on their new operating system, whether that's going to be a problem. what about the longer term ramification will it be something that affects how you can advertise and how much money you can raise through advertising? >> this is an incredibly dynamic time in the advertising industry every couple of years something happens, whether it's gdpr in
europe or ccpa in california and now ivfa on apple devices. it's our job to adapt and continue to build trust with the people who use twitter if we build trust with them, they're more likely to give us access to more signal so we can show them relevant tweets and relevant ads so far we're really pleased with how that's gone for us i think this dynamic industry is going to continue to evolve. advertisers have to decide what platforms they want to advertise on we're more brand than we are dr today, and we have pretty unique signal relative to others, and we feel like so far that's positioned us really well with these changes. >> in terms of things opening up, would it be a problem for you all if the delta variant turns out to be a problem and the economies in some parts of the world shut down a bit? >> well, there are lots of puts and takes to consider around covid. we saw our audience grow massively last year when everybody around the world went into shelter in place. advertisers in many ways paused
and had to decide how they wanted to show up. i'm not sure how this is going to play out around the world, but what we can tell is when people want to find out what's happening in the world and what people are talking about, whether they can go to the game or they have to watch from home, when advertisers have products they want to launch and they want to connect with their customers, twitter is becoming a better and better place for them to do that. >> it's really great having you here, and having you here in person good to see you again. >> thanks for having me again. >> ned and i are going to be on twitter spaces today at 9:00 a.m. eastern time we'll be joined by a few other folks from the company as well for a live audio conversation for spaces we're going to be starting right off "squawk box" ends at 9:00 a.m thank you. >> great conversation with ned, really terrific. it explains so much. i want to get down to the new york stock exchange. jim cramer joins us now. as we head into the weekend, you want to own twitter?
you wanted to own twitter yesterday. >> oh, yes, absolutely absolutely snap and twitter are terrific, and what's happening, obviously, is like you listen to steve squeer ri from american express. this is how you reach the younger people one of the things -- sometimes i have to help ned he should have mentioned that the streamers spent over 40% year-over-year i'm sorry, quarter of a quarter to get their stuff watched, and that's an incredible spend i think ned has got a lot of things excited about transactions i've been after him to be able to transact on twitter forever he's starting to get there it is a joy to listen to him everyone in the media knows ned tells them as it is. i have heard ned say, hey, we didn't do a good job he gets money in the bank, he can say they did a good job. i think the stock's great. i'm not close to the guys from snap i don't know why they don't like me i feel like i'm kindred to them. holy cow did that i deliver. that's another way to get younger people
my friend andrew, you usually say my friend jim, and you didn't do that, my feelings are a little hurt. >> of course you're my friend, jim. what do you make of what's going on in china this morning the china stocks are just getting whacked and what that really means is china going after companies that have too much power by the way, people have questions about some of the accounting of these companies in china. is that what's happening >> they are killing us i mean, they know that we own these stocks, and they have -- they're showing no mercy it does seem like when you turn a profit company into a nonprofit company, what you're trying to do is make it so that there are rich people just stripped of their wealth it's very maliced. it's stalstalinist, we tend not see that i think these are very serious violations that make us realize that capitalism is not alive in china. we kidded ourselves that we thought that the party was going to somehow want to join the rest of the world in being
capitalistic they're not. this is a dictatorship i question every one of those companies that's on that list. any one of them could be vulnerable you got to go. you can't own these stocks the party may decide tomorrow that alibaba is charging people too much so i don't know. andrew, i think we're discovering that they were communists, but they were communists all along. >> jim cramer, always with a hot take. >> that's it that's it? how about upstairs i know the wind's bad, but becky looks frgreat, you look great. >> when are you coming to the squawk terrace to hang out with? >> jim, we will see you in just a couple of minutes. have a great weekend, my friend. coming up, a final check on the markets this morning as the final trading day of the week is upon us. we're back after this. ... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events
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this guy here is busy working on our state's recovery. you see he lives in california and by vacationing in california he's supporting our businesses and communities. which means every fruity skewer is like another sweet nail in the rebuilding of our economy. hammer away craftsman. calling all californians. keep your vacation here and help our state get back to work. and please travel responsibly. check things out time for a final check on the markets this friday morning. you can see right now that even after the games we've seen the last three days, there is still some enthusiasm out there for stocks the dow futures this morning are indicated up by 172. the nasdaq indicated up by 44. the s&p indicated up by 18
should point out that all three of the major averages are, i think, less than half a percent or right around half a percent from their all-time highs. s&p would only need a gain of about 23 points to be sitting at a new closing high today 1.3% for the treasury. that does it for us today. we will see you back here on monday have a great weekend, everybody. >> have a great weekend, everybody. >> right now it's time for "squawk on the street. >> bye bye good friday morning, welcome to "squawk on the street." i'm scott wapner with jim cramer who is at the new york stock exchange this morning. carl and david have the morning off. jim, it's good to see you as always let's take a look at futures we're going to have a strong finish to this crazy week. right now the futures would be higher across the board. dow jones industrial average opening higher by about 170. nasdaq strong earnings from some tech companies we'll talk about that in a