tv Squawk on the Street CNBC September 27, 2021 9:00am-11:00am EDT
creating all kinds of problems it's a situation you have to get the truckers to work longer hours, the longshoremen to work longer areas a lot of backups along the way ahem i saw you arguing about other stuff there. >> we were having a little debate >> because we're out of here. >> same debate, 14 years be back here tomorrow, we will continue. >> good morning, final week of q3 futures are mixed. oil is back to three-year highs. a crowded week as we watch for house votes on infrastructure, and three appearances by fed chair powell our road map continues with
volatility as the street looks to close out its week in the low of nearly a year >> pushing paw after the backlash, facebook says it will reevaluate its work on instagram for kids at a later date we are going to close out the month and the quarter this week, jim. it's a lot to watch still. the semiconductors, we are now getting to the point where micron reports this week, where the semiconductor companies have shortages themselves now, the most pertinent one i saw today was in the nikkei publi publication, where key apple suppliers have to cut back
why? because of energy issues in china. i don't think people are really ready for a chinese crackdown, david, on energy consumption >> it's happening. by the way, there's an energy story globally that we kind of touched on here and there, but we're going to continue to have to, because it's not just china, it's obviously energy prices in europe natural gas prices are soaring around the globe, certainly in asia they are very happy, those that have the actual fixed-price contracts to get our exported lng at a fixed price, because it's going crazy in asia your point on china, yeah, coal they're actually trying to take down because of emissions, trying to get better on that side of things they have terps air pollution, of course, carbon overall, and they're starting to have energy issues. >> incredible. i think there's a lot of people
that believe that china is invincible, and yet when i listen and read about china, yes, they have a government that would bail out lots of different people, but i do find the idea that china is all powerful does not jibe with the idea that they have to cut energy, to circumstance board makers, there's a foxconn facility shut down because of electric supply. this is not what we expected. >> no, and it pertains to, in the uk, for example, the number of just drivers getting fuel to pumps. 90% of some of the pumps there dry in the major cities, but nat gas isn't like oil, where it immediately reflects itself in your gas bump. and goldman takes the brent forecast to 90 at year end. >> we're just not produces
devin is saying we're not going to spend -- look, when diamondback nur signaled it would return money to shareholders, i wouldn't call it reckless, but that was the signal, we're not going to produce like we have been producing. in that case, maybe we'll cut production to maybe 9 million barrels. aramco is paying a $75 billion dividend they're not stepping up. we do have the possibility of just all over the place not having enough energy this britain shutdown -- >> and the wind stopped blowing in the north sea, i know that sounds bizarre, but wind -- power production from wind has
declined there's the goldman note you're making the point that these company have typically increased, ramped up shale production in the permian are not doing it, instead they're returning to shareholders. it's not just about opec ramping, but the shale supply response, they say is just starting. and the economy is surviving the delta variant in ways that was not forecast. >> obviously there's a lot of finger pointing about the west coast port, but what's clear is people are shopping like mad when costco limits toilet paper again, people at costco, they're going nuts shopping. then we have an infrastructure bill coming. wouldn't it be interesting, since we have so many jobs -- everywhere you go, help wanted
if you walk into quakertown, you can get $22. i see it manufacturers come in, get $22 an hour. i was going to walk in just for the weekend, versus my wife having me pull weeds from a pond. >> what did you get paid for that >> i offered my stepson a ton of money. it was killing my back i have a picture of the emu we're trying to save a place called last chance ranch, that doesn't sound positive >> goats -- >> i have a cow herder of a dog. i'm looking for something for the dog to do other than buy my ears we're at some sort of moment, where the american people are traveling again. american people are bullish, but very few people than, say, al better at williams sonoma have been able to navigate this the fact that -- we are out of
control in terms of our consumption. we just don't have enough to buy. >> to another goldman note, that's on the supply chain, goldman says that basically the shortage in chips does appear to be worsening with plant shutdowns? southeast asia, leading automakers to cut production they say the vaccination rates are getting better, but nonetheless we push back our assumption for improving supply from the fall. >> jim farley was a panelist -- ceo of ford. a number that stuck out for me is taiwan semi, the largest foundry, only 4% of their product is chips, because you don't make any money nothing has changed. of course, washington, there's been more meetings about having a foundry, but taiwan semi doesn't want to make $2 chips if they can make $20 chips. >> the higher-margin are not tip
wale for the automakers. >> did you see the government subsidy, if it goes through this week, for electric cars? >> in the trillion dollar -- >> in the small -- >> in the infrastructure bill - i don't know what they call the larger bill. isn't there a union provision there? included in that that's why tesla, that's why musk has been fighting it. >> tesla full bore in china. >> saying it could be the most critical week in the company's history. >> i don't know if people have been noticing it, but tesla's stock has been climbing. it's an umbrella for a lot of stocks there's one coming public today, being valued at $20 billion. lucent is $21 billion.
fiskers is only $4.4 why su why is that valued correctly >> ford is perhaps the most iconic -- why not? the one that didn't go bankrupt, let's not forget. >> they have an ev plan. you know, it's having interesting. they have a mistake, this mach-e it's sold out. i bought a maverick, a mini pickup, about five months ago, i haven't seen it. >> still haven't gone it. >> we're talking about inventory levels at the dealers. this gets back to, when is this going to start to have a real impact on the economic growth? the supply-chain issues, the energy issues around the globe, the worker shortages
i mean, add it all up for me, because we talk about it, we will continue to it's now the fourth quarter, you know, just about there, right? >> now, look, i was watching brian sullivan this morning. he started his show by saying, it is amazing that the market could be going up. i am beginning to think, carl, the market has very little to do with the things we are talk about. i think the market, 1.5 for the ten-year, versus just own the s&p, sorry, s&p. i think money comes in every single week and goes into stocks, not bonds, because it would be idiotic to go into bonds. the s&p does not distinguish between buying toll brothers or jpmorgan it just doesn't. it just goes. >> household net worth in this country at record highs, and, yeah, i mean, where else would you go at this point
ether, i suppose you could make the argument, that's before accounting for buy up did backs. >> i did a piece that was really sack sacrilegious. cabot oil and gas. >> enormous amount of natural gas. what about inflation this is going to be a very expensive year to heat your home propane as well? >> look at the nat gas chart >> yeah, look at that. >> he was the guy who built -- that's making an absolute fortune. this is the price they were paying to export -- we are they had $3 nat gas you buy this and sell it at 16. >> right many of them, when they set up the trains, the terminals that export, they do have long-term
contracts with the buyers. >> if we were doing our show from there, which could about cool -- >> yeah, it could be >> i think this country is booming, instead, you know, avery dennison, and the factory i was looking at -- that was an interesting opportunity, r.r. donnelly i use this as like anywhere america. >> yeah. >> it's $22, and yet they still can't find workers truck drivers, because they have cut the number of hours down, they're not ability to drive all night anymore, which i think is good, but i think everybody has to be paid more. >> you have daily cases down almost 20% since the beginning of the month antivirals on the way, if you listen to gottlieb you can't have kids vaccinated
in a matter of days. >> then maybe people come back to work. bus drivers don't want to overif they're over 65, because -- a lot of people don't trust the vaccines, david. >> well, i do. >> that's great. it's not about you. >> it isn't? >> no. that's what my wife says all the time. >> well, you beg to differ with that [ laughter ] >> did you see the picture of the emu i put up >> no. >> it has a great level of intel intelligence pot- pot-bellied pigs understand 34 words. i didn't mean to look at you there. it was just the chair. pausing instagram for kids, and we'll look at the futures, as we do keep an eye on the ten-year above 1.5% and oil above $75.50 back in a minute
on how to move forward. >> they were talking about the pause today. it's not that you obvious see the company in retreat. >> i talked to marc benioff last week, and he has a distinct point of view. it's quite negative when it comes to facebook. >> i don't think he's going to change his view off of this. >> no, but i think this is a very big change, because they have said that they're ahead on child protection they have often said that they're ahead, that they have had millions -- and for them to do this, i credit them i know, if you're a journalist, it is usually that you never credit
facebook with anything i think benioff raises good things it's not a single source of truth, and they're willing to put in a lot of things that are really misinformation about vaccines, about the illness but -- i thought this was good >> do you think it has anything to do with advertisers actually speaking up, saying we have read concerns about placement >> i think they want to eliminate that as on tiff. they want to say, look, we are really in your camp. >> yeah. >> what i want to come back to is the stop price. as important as facebook is, in terms of the social environment of the united states of the world we're here also to talk
about the stock. you're seeing a stock that's up 28% here it has retreated lately it had 'mazingly -- the number of top-line numbers were stunning last quarter, and as you pointed out many times, it trades at a multiple, given that top-line growth that's not expensive by many measures what will this mean for the stock price? >> it means nothing. >> you don't think so? maul and medium-sized businesses will continue to use it as their way to advertise >> you cannot reach people without this if you want to start a business you have to be on instagram, facebook for the major companies. it sells at 25 times edges david, i have to tell you, that's very inexpensive. people are saying why do i have to be in other companies when they're probably going to make their numbers?
david, there is no concerted effort by people to avoid instagram. >> not to mention no supply issues, since the content is free, not if thele physical. do you ever hear there's a chip shortage for facebook or amazon? >> they could continue to increase their costs to do the policing. morgan stanley, that's a they say amazon could be range bound. do you think we'll ever get a call from andy jassy again >> better than the jets -- >> it doesn't really matter. i would rather lose 26-0, at least this was nothing at stake. >> i've never felt that way as an eagles fan. >> even if they make it to -- what's the difference, you lose
in the super bowl, you go 0-16, it's the same. you didn't win. >> you have a very strange fuse. >> it's the only way i can live an a new york sports fan otherwise, it's hopeless, which it is. it's hopeless. >> that's a positive attitude he has. >> he's 's denver, he's happy. keep your eyes on the premarket, as we get the opening bell in nine minutes this is the planning effect. if you ask suzie about the future, she'll say she's got goals. and since she's got goals, she might need help reaching them, and so she'll get some help from fidelity, and at fidelity, someone will help her create a plan for all her goals, which means suzie will be feeling so good about that plan, she can just enjoy right now. that's the planning effect, from fidelity.
go ahead ready for an opening bell, about 6:30. >> micron. >> remember "terminator 2" judgment day >> yes. it's judgment day for micron. >> that's one funny-looking animal. >> we are going to adopt probably a pig or a goat, but this guy is available for anyone who wants -- >> you don't own him yet >> no, but they spit apparently. they eat a lot of -- they are coanchors, and they say nicer things than some other coanchors, friendly, and often agree. >> there's an insurance ad. >> liberty, liberty, liberty. >> we're talking micron, not
liberty. >> dane lee at citi, he says there will be a bottom what matters here is they are d-ram. >> i thought you liked it. >> i do like it. >> i still like it >> not as much as nvidia. >> but you like those the most of anybody >> i would never name my dog micron. >> what do we make of this latest note? >> i feel like this could by phet ex, where everyone will be disappointed and then you have to buy. >> >> do you want to adopt an emu? >> no, but maybe they can pull
i agree that, within a year, i think we'll be able to come back to normal life. i don't think that this means variants will not continue coming, and i don't think this means we should be able to live our lives without having immune -- without having ration nations, basically, but again, that remains to be seen. >> that was albert bourla over the weekend. one thing we talked about a bit on friday, the continued and intensified focus on roche, pfizer and merck. >> dr. gottlieb talked about it this morning as well it's been almost a year and a
half -- which was momentarily, in phase three, which may get, let's hope, all of us, phase three trials will look good, emergency trials by the end of the year >> dr. gottlieb was very positive on the vaccines i have dr. gottlieb on tonight because of hi book, which again i reiterate is a must-rae, if only you looked at the oval out and president trump, president trump was not as much of a visionary, as many think, when it comes to this illness i think he believed there was a level of masculinity to maintain -- dr. gottlieb was talking about a level of life or death, so they're at odds there. >> there's the opening bell, by the way.
real-time exchange at the big board it's jackson. it's progress software set braying the 40th anniversary >> will you be watching financials first today >> absolutely. i want to see goldman go over -- jpmorgan 150e78s to be headed toward 170 i saw stephanie link at a party on friday, she's on a lot, and she was saying, jim u. your channel just doesn't have enough financials it got turned into a financial party because of the vociferous way she thinking we should be buys -- for some reason, when the oils go up, that's a sign of demand, and when interest rates
tough 1.5, people go nuts. >> do you watch your hands of microsoft, which is the worst dow stock at the moment? >> they always come back in the end, when we see the quarter, no one will like -- they they had the most amazing quarters i think we have ever seen, certainly from companies that are mature. microsoft, amazon, facebook, alphabet, the top-line numbers, i don't know that we've ever seen growth like that. >> no, you invent and reinvent, but the response to those quarters was not that great. >> no, it wasn't >> but look at facebook. honestly, you mentioned facebook up 29% if facebook were really troubled -- apple i think is totally a function of not being able to perhaps make the phone but then there's a note today,
which really bothers me. a note about how about what do we look at with apple? do we look at the number of bills, and how many weeks -- that was the typically thing i mean, if you watch football over the weekend, all you eis if you sign up with one of these companies, david, you get the phone. that's what matters. >> yes, that is a very important the subsidies you get from the carriers. >> my wife is 3g you can't use her phone. >> why does she have 3g? that's when you've in a bad area it's buggy. >> but you have to make sure your carrier, particularly in rural areas, because you're talking about the farm. >> yeah, i told my wife, you know what? we'll going to drill for oil we're close enough. >> that's where it all started
>> you have to get a pipeline to get it out of there. that's part of the problem. >> i hadn't thought about it. >> really? you've been talking about that for year all i can tell is i'm 20 piles from nat gas land, and i think it's worth drilling. >> what's that one >> it's an area near -- >> it doesn't have a name, the shale formation there? >> it's cramer >> it's cramer [ laughter ] drilling in the cramer, yes. >> you wouldn't believe didn't. >> no, i wouldn't. you'll find some stuff, but you don't want any of it >> at $5, i can pipe myself
there. >> there's some travel in there as well. some of airlines, the cruise lines hanging in there fid fidelity, timer had a great chart overlaying the number of cases against the reopening index what you saw was a huge -- the lockdown index, i should say, didn't really go anywhere we have found ways to live with it. >> royal caribbean, a lot of people felt completely b bushwhacked. a lot of people i know are back to cruising. so if our norwegian crews, you have to be vaccination nated so watch american express, this
stock at 160, is a total play on -- >> yeah, i know. >> on people going out and spending david, the small bill g move is real >> they're facing the same issues, supply chain issues, that they have to get here and/or need a commodity. they're facing staffing issues, cost issues on all those commodities that they need to buy, if that's part of what they're doing. let me ask you something you have younger kids. >> not so young anymore, but younger than yours. >> yes. >> yeah. >> i was at one of my favorite restaurants, sunday, it was closed how about if you pay people a living wage? will they not show
you don't want to make as much money? you're afraid of how much labor makes versus capital >> you're making a good point that's part of what the overall hope has been, that we would get wage increases >> pay people $25 an hour. now, $22 at the factories, i don't know, but $25, maybe pay them $30 so you don't earn as much. >> you're in the restaurant business, can you afford to charge -- >> no, absolute ly not you can't charge that for food and can't pay above a certain level before it's not worth it that's the problem, is it worth it it's not like, david, people are going out of business. people are going to make a decision they're not going to make a lot of money, stay open and somehow things will get better
what are they waiting for? >> for things to get better. >> no, i mean, for more people coming back to work? >> where are they? >> i flew across the country this weekend, and i think they're in the airports. >> you mean living in the airports no, traveling. they're everywhere but work. as a country, the longshore people, maybe they're not being paid enough to show up you saw the article this weekend. i think this is the wage inflation issues, maybe we all have to recognize that labor is going to win and capital not isn't that what jay powell is about in the end >> i think it's totally about changing that pendulum, which has someone only one way in three decades. >> and you have describing shows that you have to show up they're not remote >> when ceos are making $40, $50
million, and rank and file are making $18 an hour, maybe that's over. >> you're looking more like lenin here >> i know you're -- and i'm not related to lenin. >> more like trotsky >> i loved trotsky. >> it takes us back to the morgan stanley note. they look at the logistics head count at amazon, and looking at cost per unit up 50 year on year >> look, if you want to know a company that will figure out how to work without a lot of people is amazon. i think that note is ill-informed i think it has more people
thinking about not having people than any other firm. i saw people selling amazon. that's crazy amazon has the capability of making it so that the factories of the future will not have many people >> source of ancillary is media, disney, "shang-chi" is top selling, and netflix, that are ta tadum event in which they rolled out, i think, like 70 new series. >> it's a nightmare, there's nothing to watch >> the sums being spent on content continue to astound.
you notice, the question really is not -- are you spending enough which is peacock, which is owned by our parent company comcast. if you're paramount plus or disney plus, how much more can you spend? i derided their content for some time, but things are changing. they are ramping it up, in a big way, so you have to add that in. >> how about go back to disney, faber. bob chapek made some comments, if you're disney, you want growth it's a growth company, and the stock went down to 171. >> because he talked about some moderation in growth in subs
>> you're back in it. >> because i love the dual model. >> adam is very bullish. >> we don't talk about espn too often. sort of how that ends. >> you know what happens tonight. >> tonight the eagles play? >> they play the cowboys. >> yeah. >> how about the reports last week, i think it was 9 athletic, jim, that the nfl prefers apple as the vendor for direct ticket? which is really the last major pac package i were i finally got the dish right
now -- >> i find that if you've got apple, without, do you really need a dish? aren't you on wi-fi? >> what's interesting is. >> does that mean dave pepper makes more money >> yes >> he probably didn't go in expecting to make money. it was just about having fun >> absolutely right. >> spac land, they have been on -- you also have the strc, this robotics company. >> oh, my. >> a pipe -- it looks like they had very high redemptions, but
we don't know. we don't know exactly. there's rotor acquisition. we don't know exactly what it was, we only know the pipe was 220, they raised 260, so you have to imagine redemptions were very high potentially even free cash flow. >> they had really good things about you. we've been talking about that recent phenomenon. >> gary gensler is trying to figure out what to do. >> i would like to know when they immediately close the deal, or as opposed to the name of the spac, what is the redemption rate
you get it in the 8k, but you don't get it right away. >> still with the oils and banks and you don't have to worry. >> oils and banks. >> definitely the story of the morning, at least, because we do have consumer discretionary. energy, financials, industrials. let's get to bob pisani. >> you don't normally see this, carl, because banks and oils are pushing the dow up having a big day that's pushing up the dow. s&p is up, because apple, microsoft, cisco, just the name stocks that are tech are pushing the s&p down, because it's market cap weighted. so industry weighting lesson here here at the sector, you see the
nice move up with the energy stocks banking finally deciding to move materials is part of the global growth story, so this story today is about higher rates and the global recovery. there you see tech lacking that's because of concerns about higher rates higher rates and the global recovery overall there are some vague concerns over the weekend, shades of 2011, when the s&p downgraded the u.s. rating. there were supply chain concerns that were very real. but just take a look here at n nike it's down 70%, is the global bulls are continues to say,
guys, they want business is great, vietnam will come back online, all this is going to go away probably, but it's taking a lot longer than people had thought. the bulls are right. it is going to come back online, but the bears have been right, too. great that it's breaking out you know, $75, that's an important level. we haven't broken out on oil -- this would be a major breakout we haven't been over $65 consistently since 2014, seven years, so this is a very major level. even for energy stocks, they were still negative compared to seveniers. now, energy is having a great year this year, great to see some of these big exploration production companies move up these are great years, even
exxon is up 40%, but it's been a long, long slow road as we keep pointing out nobody owns energy stocks anymore that's why it's not moving the s&p 500. why is it reflected? because it was 2% or 3% of the s&p 500. that's how bad energy got. so we keep reminding everything a what matters is technology so put it together, it's 40% healthcare, which is a growth sector, there's consumer discretionary that's with the really we've had so it's wonderful that energy is breaking out.
>> back to you, carl. >> down up 215, as bottom was just explaining to well, there is some impact to the technology we mentioned, the ten-year yield did hit a three-month high we should also mention that rosengren will retire september 30th he did mention in health issues in his letter. the interim will be the boston bank vp ken montgomery we're back in a minute
new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today. we see smarter software delivering cleaner power. emerson's breakthrough technology enables the power industry to integrate renewable energy sources to modernize and improve the electric grid. emerson. consider it solved.
the dow gainers this morning will tell you all you need to know energy some industrials, definitely financials, and some travel names looking at the gains over the past five days, carnival up 14, delta up 8, live nation up 8. the reopening play appears to be in focus although s&p down 11 on some weakness itenogyn chlo we'll get stop trading with jim in a minute. emerson's energy star™ certified sensi™ smart thermostat uses geofencing to simplify how homeowners manage comfort and costs. emerson. consider it solved.
in business, setbacks change everything. so get comcast business internet and add securityedge. it helps keep your network safe by scanning for threats every 10 minutes. and unlike some cybersecurity options, this helps protect every connected device. yours, your employees' and even your customers'. so you can stay ahead. get started with a great offer and ask how you can add comcast business securityedge. plus for a limited time, ask how to get a $500 prepaid card when you upgrade. call today.
time for jim and top trading. >> we mentioned, i said facebook not a lot of resistance. getting people just e-mailing me, texting me saying be careful, there is resistance and people are cutting back on facebook ads i think you have to watch this closely than i have. i like what piper has to say about best buy they have a number of initiatives that allow you basically to get a guarantee or best buy a person comes to your house. a lot of technology that we have, is too difficult, so i like that stock very much. i met with the ceo, she's really smart. that stock could go places right here, right now. >> piper adds to a top idea. >> so gottlieb tonight.
>> "d" gottlieb and can we figure out the supply chain with lance fritz from union pacific i think we can we mentioned, i think not as complimentary way as he should be this weekend, basically one of the problems, not a solution. i think that's dead wrong. these banks are insane the oils so i am -- cramer, remarkets, my name spelled backwards i am getting a tractor and going to find oil or gas at my place and let you know. >> you say that on tv but you won't. >> true, i won't >> next thing you know jim is a millionaire. >> there you go. >> there you go. yep. the bucks -- >> we'll see you tonight, jim. "mad money" 6:00 p.m. eastern time a lot more "squawk on the street" continues after the break. dow up 230
dow up pretty well, up 220 the s&p negative nasdaq, too, as we are getting the impact of some higher yields on some technology names. >> we're 30 minutes into the trading session. here are three of the big movers we're watching this morning. occidental petroleum higher this morning, one of the top gainers as brent crude hits its highest level since 2018 best buy shares are seeing green after being named a top idea of piper sandler. you can see those shares up 4.5% keep an eye as carl mentioned on treasuries the 10-year yield topping briefly 1.5% this morning. it's back at 1.477 that's as investors continue to weigh inflation fears, potential government shutdown this week, the two-year and five-year at highs we have not seen since early 2020 >> we're going to turn back to the markets starting off mixed as we close out the month and the quarter this week.
let's bring in bob doll, cross market global investment officer. always good to check in with you. good monday morning. >> you too. >> we were talking about sort of the mixed market here and the impact of higher yields. you point out we did get the 5% drop on an intraday basis high to low there's a lot more churn on the individual stock basis >> agreed. i want to point out that differentials you point out between the dow and the nasdaq is 150 basis points, a percent and a half that's a lot for one day as you know that rotation. i think it points to your question, we're going to get some chop here i would be shocked if the market went straight up and made a new high, but perhaps the lows of last monday will hold and we'll kind of bounce around and what happens inside the market will be -- >> yeah. there had been some discussion last week, bob, you look at like some of the consumer comfort indexes, the average of jobless
claims over four weeks, the city surprise index, there's food there, some argue, for a next leg in the bull run going into a seasonally strong part of the year do you have a problem with that? > no, i don't have a problem we have to digest slowing economy and earnings, the fact that interest rates are starting back up, we have to digest that washington has had chaos in terms of fiscal policy and, you know, the interest rate effect is not good for long duration high p/e stocks. i think along with the positives of still a good economy and good earnings, despite its slowing, the fact the fed is still front and center the argument there's no alternative the positives are still there but there's negatives that have crept in that cause me to say i think it's choppier, not straight up. >> the interest rate effect, bob, i mean what is your outlook
going into 2022, for example, for yields >> morgan, i think up. you know, look, markets tend not to move unidimensionally this interest rate picture is two steps forward, onestep back we hit the low, the pandemic of roughly 50 basis points on the 10-year. we moved to 175. we moved back to 125 notice a higher low. and i think this move will take us above 175 toward 2 into next year as the market adjusts to the economy's okay and inflation is not all transitory. >> if inflation is not all transitory, i realize maybe 5% inflation is not sustainable over the longer term but a fed that's poised to begin to taper, with that being said is it still behind the ball as you go into 2022 when you see stocks at valuations like this.
>> i think the fed is going to end up being surprised how sticky inflation is. it's not going to stay at 5 and that's going to be the conundrum next year, the inflation rate falls, people will think, don't worry about inflation, but when the dust settles it's going to be closer to 3 than sub2 where we were for so long. >> bob, is there a period you can look back on that resembles this i ask that because, again, we spent the last hour of our show talking about the supply chain issues, talking about wage pressures, talking about a lack of workers and energy prices going up around the globe, not to mention so many other commodities. is there something else that comes to mind for this sort of combination in your mind that could help investors sort of figure out what might work best? >> you know, my memory doesn't go back far enough to remember even a period where interest rates rose very much, tongue in cheek when i say that, i think we're going to be in a period and look back and say, the 50
basis points 10-year yield was the end of the secular bull market that lasted most of our careers. that doesn't mean interest rates are going up to 10%, but it means they're going to creep higher you already said in your question, what the fodder is for that it's an economy that's okay, it's supply shortages. we're in an environment now where we're not quite sure which is foul because you have all these cross currents and i think the market in jumping on the growth stocks and avoiding the cyclicals until recently was saying the economy is going to slow and uncertainty from all that, but i think that was -- that's been overdone that's why you're seeing some sell-off in high p/e tech and some pick-up in the banks and energy stocks. >> bob, i'm curious how you're thinking about the u.s. versus europe because there was a moment there where their
vaccination rates were better than ours, starting to hear maybe you start favoring europe on a faster than u.s. recovery, and then you start getting this energy crisis creeping into what looks like could be a tough winter for them. where are you on u.s. year allocation >> so i think the economic recovery reopening is going to become more global therefore, if i've been fortunate to ignore outside the u.s. for the last decade, i stand up and start dollar cost averaging. you have to have money in europe you don't have to be a hero but those economies will come back they're in the dog house for the reasons you just suggested but they'll come back. the stocks are a whole lot cheaper. so i begin to dollar cost average some of my u.s. profits in this non-u.s. securities. >> finally, of all the alternative choices you have as
an investor, crypto would be one fw glaring example, are there some creeping into what your largely institutional world view has been >> it's tina, i still have to have money in stocks, not interested in bonds, maybe a little cash, crypto, crypto technology is for real but i still think we don't know who the winners and the losers are. we don't know what the regulatory environment is. if you're playing there, you know, it's still in my mind a bit of a speculation i think you have to have some real estate in your portfolio. if market returns for the conventional asset classes are lower going forward, which i think they will be, having some long short exposure, some covered call, could fit the mix as well in that alternative space. >> yeah. reminds me of the "journal"
piece that options volume giving stock volume a run for its money. yeah great to see you thanks >> all the best. as we head to a quick break, here's a look at our road map for the rest of the hour crypto we were talking about it continuing to come under fire in china. plus, miners getting slammed for their environmental foot print we'll speak with the author and co-author of a new report showing energy usage might not be as bad as you think >> it is a potentially big week in washington. the latest ahead of tonight's senate vote that could see the debt ceiling head higher. >> facebook hits pause on its instagram kids app we're going to talk about what it means for the stock a big hour still ahead on "squawk on the street. stay with us the pursuit is on. the pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients
in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility. join the pursuit of outperformance at pgim. the investment management business of prudential. i promise - as an independent advisor - to put the financial well-being of you and your family first. i promise to serve, not sell. i promise our relationship will be one of partnership and trust. i am a fiduciary, not just some of the time, but all of the time. charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com
in business, setbacks change everything. so get comcast business internet and add securityedge. it helps keep your network safe by scanning for threats every 10 minutes. and unlike some cybersecurity options, this helps protect every connected device. yours, your employees' and even your customers'. so you can stay ahead. get started with a great offer and ask how you can add comcast business securityedge. plus for a limited time, ask how to get a $500 prepaid card when you upgrade. call today.
the street." bitcoin miners facing backlash for their carbon footprint a report suggests that the crypto energy usage is, quote, insignificant in global terms. here to discuss is its co-author nick carter. nick, great to have you here just in terms of this 20 paige report that i went through, i found it to be quite fascinating. based on your research, which you did alongside ross stevens the founder and executive
chairman of nydig, perhaps the mining and usage of bitcoin is not from an electricity and an energy usage standpoint nearly as material as we've been led to believe. >> well, it's just a matter of context and perspective, i think. if you look at the numbers we find it's around 0.4% of global primary energy consumption, which is largely compared to some countries but small if you compare it to certain industries, so it is a matter of simply contextualizing it. we find, for instance, it's similar to the energy consumption associated with zinc extraction, smaller than the energy consumption associated with domestic tumble dryers, for instance, and, you know, ten times smaller than the energy associated with domestic refrigeration. it's just a matter of putting in context and just looking at also the benefits of the system alongside the perceived costs. >> yeah. you're also the co-founder of
coin metrics which aggregates the data around crypto currencies in real-time as well. in general, though, there does seem to be a lot of conflicting numbers and research reports out there where energy usage for something like bitcoin is concerned. for example, i was looking at published this month, a big report from "the new york times" as well that actually put a higher electricity number to it and you just touched on it but also compared that to the smaller countries like finland in terms of the usage. why is there so much conflicting data >> it's likely we have a similar number to "the new york times," the difference between primary energy and electricity consumption. the difficult part is finding the estimated carbon emissions impact in order to do that you have to determine where the miners are and what kind of energy sources they're using. that's not the easiest task because a lot of miners don't really feel like identifying
themselves there's no easy way to determine where they are, whether they're on the grid, grid connected, and what precise energy input they're using. so partly there's a lot of transparency around bitcoin's energy consumption simple back of the envelope math to look at the miners, kinds of miners, the hash rate, but the last mile is going to cover the emissions impact that part is really challenging >> i wonder where you think that leads us in terms of china's policy towards crypto and whether they're comforted by that context or any less resolute in outlawing mining to begin with >> well, china has undertaken an apparent push to render their grid more sustainable and that may have been part of their motivation to push bitcoin mining out of the country, but much of the mining in china was done in the provinces with excesses of hydro power where effectively bitcoin mining was net neutral from a carbon perspective.
it's not 100% clear that it was a climate agenda driving their push, bitcoin miners out of the country, it may have been a desire to eliminate crypto currency to offshore wealth and get around the capital controls they imposed that's probably part of the broader crackdown on crypto in china. i don't see mining coming back there any time soon. >> i want to get back to understanding the differential between your estimates and those of other sources you're saying essentially you were able to identify the energy sources behind the bitcoin miners and those that were obviously not actually emitting carbon because they were using a cleaner energy, that is correct? >> well, with any estimate like that, there's going to be a degree of imprecision. we don't presume to know what energy is going into mining and our estimates are probably more conservative than you will see for a lot of bitcoiners out there. the purpose of the report was to really give people a stable
model to protect the long-term trajectory of energy and emissions impact of the bitcoin network and also identify tools miners can use to decarbonize their operations by no means are we saying bitcoin mining is fully decarbonized today, it's not, but there's a number of interesting pathways to achieving a fully sustainable bitcoin. >> in terms of the pathways you put money to work where blockchain and crypto currencies are concerned, how are you doing that now given the research report and discussion we're having >> well, we're seeing a lot of interesting startups in the renewable energy space, tokenizing credits and offsets, providing transparency around those. a number of startups operational in the pipe to crypto where they take gas that would be flared off at well pads in texas or north dakota or other oil
producing places and put that in the generator and mine bitcoin with it. even though you're combasting natural gas that's gas that would have been flared off, and so we're seeing a huge amount of effort there we're also seeing startups getting active in terms of engaging in these demand response programs where they curtail their usage at times of heavy load on the grid which is a benefit to the grit operators. they ratchet down their consumption when households ratchet up their consumption so we're looking at those spaces and i think it's an incredibly dynamic and exciting time to investing in kind of the mining sector >> nick carter thanks for joining us today >> thank you we've got a big week shaping up on the hill as a possible government showdown looms. we'll look at what's to come when we're back in two minutes don't go anywhere.
what happens when we welcome change? we can make emergency medicine possible at 40,000 feet. instead of burning our past for power, we can harness the energy of the tiny electron. we can create new ways to connect. rethinking how we communicate to be more inclusive than ever. with app, cloud and anywhere workspace solutions, vmware helps companies navigate change. faster. vmware. welcome change. zero-commission trades for online u.s. stocks and etfs. and a commitment to get you the best price on every trade, which saved investors over $1.5 billion last year.
it's now time for our etf spotlight taking a look at the global x infrastructure etf ticker pave it's been under pressure as investors continue to await the house vote on the $1 trillion bipartisan infrastructure bill. a vote according to speaker nancy pelosi over the weekend will happen this thursday. pave as you can see is higher today, up more than 1%, new corps, eaton and lockheed martin struck its deal with the pentagon as well, all trade higher and see a boost in today's session. we'll continue to keep an eye on that. >> all right as we said earlier, a lot ahead in washington with a key senate vote today elon has a look at the landscape. >> good morning, carl. congress is getting ready to take a series of critical votes this week, not just on a government shutdown and the debt
limit but on the future of president biden's entire economic agenda. so let's start with the house. it will begin debate tonight on the bipartisan infrastructure bill but as you mentioned the final vote won't come until thursday democratic leadership is hoping to use the next few days to shore up support among progressives and convince moderates to get behind the bigger $3.5 trillion social spending plan. now california congressman scott peters is one of those moderates over the weekend he voted against advancing that bill in committee. >> i'm concerned this process is being rushed which has not aloud for debate and discussions the consequential bill deserves. i'm optimistic the bill will improve and fix some of my underlying concerns but it needs more work. >> now over on to the senate where there will be a vote today at 5:30 on a bill to fund the government and raise the debt ceiling that will likely fail because republicans are against it and that gives democrats three days to come up with plan
b before the government runs out of money on september 30th treasury has a little more breathing room before it hits the debt limit projects that deadline is between october 15th and november 4th but democrats are taking this down to the wire and the politics have gotten all jumbled together here. back over to you >> all right thank you. shares of china's evergrande are actually in the green this morning while shares of its ev unit plunged due to, quote, what is a serious shortage of funds we're going to break down what it all means and so many other thingsoi o gngn in china as well we got that next [crowd cheering] how's sanchez looking? with your qb's increased spin rate, any pass with a launch angle of at least 43 degrees puts sanchez in the endzone. you a data analyst or something? an investor in invesco qqq. a fund that gives you access to nasdaq-100 innovations
here is your cnbc news update at this hour. in germany the social democrats to succeed angela merkel said this morning that he hopes to form a coalition government quickly before christmas if possible the center left won a narrow victory over merkel's center right coalition but doesn't have enough seats to form a majority in the country's legislature at a news conference scholz promised continuity in relations with the u.s. britain's government urging drivers to remain calm, panic buying has lefts gasoline stations in cities without fuel. refineries have plenty of gasoline but a severe shortage of truck drivers is disrupting deliveries to the pumps and reports that army may be called in to help get gasoline where it's needed. and in the u.s., the average price of gasoline is up 1 cent over the past two weeks to $3.25 a gallon over the last year the average price has soared $1 higher so david, along with pretty much everything else right now.
gas is more expensive. back to you. >> yep thanks, actually because energy is exactly where we want to start our next segment china also in the midst of a growing energy crunch as reports say apple and tesla suppliers have suspended production at some factories to comply with tightened power restrictions overall, spreading to residential homes and highlights global supply chain worry. truck drivers not delivering gasoline in the uk joining us is the former chairman of the american chamber of commerce in china, author of a number of books on the region, james mcgregor so many things to talk about when commit to china, whether it's evergrande or the continuing crackdown on capital if you want to call it that, but let's start with the energy story since that's the newest. what should we make of it? is it something you think perhaps will become a real factor in terms of economic growth in the country? >> i'm not an expert on this, but from what i've seen over the
years this has hap happened periodically when growth out paces the building of power plants and also, you know, they've shut down so many coal plants in china and whethers the new energy can keep up with that i look at this as just a periodic thing i don't think this is any kind of a crisis. >> all right good there's plenty of other things to focus on when it comes to the country including evergrande which we were closely watching last week and continue to watch in terms of this potential default and what, if anything, it will do in terms of the broader sort of financial ramifications. do you have an opinion and think the ch the chinese are handling it well. >> this is a turning point where china has decided it does not want future growth to depend on real estate. it's 15% of output and 80% of chinese's people's wealth and it's all very, very highly leveraged. last year in august, they started a new plan called the three red lines and basically
force de-leveraging to get the high levels of debt away from the real estate companies and meanwhile evergrande is -- was very reckless in its borrowing the thing about evergrande is, it is a unique developer in that it's huge and in third and fourth tier cities it has projects in 1300 projects in 280 cities and the people in the cities buying these are not chinese wooeltsy these are farmers and rural people allowed to move into those third and fourth tier cities and get residency permits. 1.4 million people now waiting for their apartments to be built because the model is in china is you pay for your apartment before the building is built because in the past, when things were rocketing, the value would go up by the time you got your apartment. that's not the case anymore and now they have all these people with money into the apartments and the apartments are frozen or not being built.
the government is expecting significant unrest but telling mayors out there get a handle on it and we're going to get through this they think they can restructure it like hna where the good assets are put into a holding company and other assets sold off to developers. the question is, how are the other developers, can this start a slide if the other developers are in financial situations that are not apparent yet >> given the insights you shared, i mean it speaks to especially when you think about real estate, such a key part of china's economy, it speaks to this slowdown that we're seeing in economic growth there how are you seeing that develop? what could that potentially mean how could that slow down be a economic growth ripple outs to the rest of the world as well? >> the slowdown, of course, rippling to the rest of the world on building materials and commodities and just china's slowing down its consumption and hitting a lot of multinationals
who have big businesses in china. look, xi jinping is changing china's economic model and he's shifting and now talking about common prosperity. there's such a wealth gap in china and it is really hitting people hard. it's 40 times annual earnings to buy an apartment in beijing or shanghai unprecedented in the world the cost of things versus what people are earning has a wide disparity. all the billionaires it's got a lot to do with him going for his third five-year term next november, which is in the cards and going to happen, but he wants to make sure everything is smooth before then so we're in a turning point now with china and we have to pay attention to that. people that are saying oh, we'll get through this, like it was before, they have to wake up things are going to be different and people got to pay attention. >> he's tried to slow down housing, getting a lot more
competition on supply chain manufacturing, he's obviously got billionaires a little skit ir, what's going to replace those lost elements of gdp for him? >> good question i don't know if he's thought that through yet xi jinping is not an economist he comes up with these plans and everybody scrambles to try to fill them in i think on common prosperity he does not have the policies you need behind it he didn't talk about an annual real estate tax, a wealth tax or an inheritance tax or a capital gains tax. instead, he just said this is what we're going to do and so the bureaucracy will be scrambling to see what kind of policies they can put in there's a lot of barriers to those policies happening, especially very badly needed annual real estate tax because so many people have 10, 20, 30 apartments, their wealth tied up in apartments including a lot of officials who don't want people to know about all their apartments >> you seem to be indicating there's a high level of risk in
what he's undertaking, risk to the economy and the major growth engine of the world economy for many years in some ways. >> yes there is, but there was risk in barreling ahead on where they were because the old model was running out. the middle income trap was catching up with china and they really have to widen the prosperity of the country. of it really too imbalanced, way too imbalanced so they've got all kinds of risks about not doing anything or doing something strong like this i tell you, i lived in china 30 years and these are smart people good at managing this stuff. i don't think people should be in a panic but they should pay attention to the changes and have their investments and the way they do business with china adjusted to meet the changes >> yeah. that's something we're trying to help our viewers navigate as well and focused on it appreciate you helping us do that thank you. >> glad to do it.
>> speaking of china, elon musk praising the country again at the world internet conference saying it's a, quote, global leader in digitalization and that tesla would continue to expand its investment there. the comments as tesla officially rolls out its full self-driving beta to any drivers who want it and have a sufficiently high safety score, based on their driving history. as you can see those shares of tesla up about half a percent, guys and, of course, it's interesting to see the move ahead on that self-driving beta giving the fact that it has been under scrutiny and speaks to some of the investigations around accidents and everything else that has taken place stateside. >> we were talking about china risk and tesla having to pull back on reports some production because of the energy. >> that's right. >> crunch. >> yep. >> you have politics in germany. i mean doing business on this planet is like dancing between raindrops right now. >> very difficult. i mean large businesses and
small. it's got to be one of the most challenging periods figuring out how to get your product to market, together, everything you need for it, keep your costs under some element of control and then you can't find chips for what you need. >> and maybe you get your producten to a ship but your ship is stuck out at port in l.a. and it's unclear when it's going to be able to get it unloaded. >> you can see it out there. not getting here. >> meanwhile great when you can do upgrades of an automobile remotely like tesla can. upgrade the software. >> right. >> that's right. speaks to the fact that it is very much a software company and data driven company and not just an automaker and hardware company. the cathie wood thesis. >> don't need to replace your brakes need to fix the algorithm for your brakes. pretty cool. keep an eye on amazon getting a rare price target cut from morgan stanley this morning. the firm forecasts they're going
to be paying more for labor. after the break, netflix shares have been under performing in the market but could a big fall ghate push the stock to new his. we're going to examine that topic next - [narrator] at southern new hampshire university, we're committed to making college more accessible by making it more affordable. that's why we're keeping our tuition the same for all online and campus programs through the year 2022. - i knew snhu was the place for me when i saw how affordable it was, i ran to my husband with my computer and i said, "look, we can do this."
- [narrator] take advantage of some of the lowest online tuition rates in the nation. find your degree at snhu.edu. you founded your kayak company because you love the ocean- not spreadsheets. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire we see access to fresh food being the global norm, not the exception. at emerson, our cold chain software and technology keep perishable food at proper temperatures, to assure its safety and quality. emerson. consider it solved.
we dive into a contrarian playbook designed to help investors grab profits during a period of volatility those details on tradingnation.cnbc.com more "squawk on the street" coming up. hm... i know how difficult these calls can be. not with schwab. nina made it easier to set up our financial plan. we can check in on it anytime. it changes when our goals change. planning can't be that easy. actually, it can be, carl. look forward to planning with schwab. schwab! ♪♪
we want to talk about how we're going to put the work on pause. i firmly believe it's a good thing to build a version of instagram that's designed to be save for tweens, but we want to takes the time to talk to parents and researchers and safety experts and get to more consensus about how to move forward. >> that was adam, the head of instagram on "today" after
backlash, facebook saying it will pause and reevaluate its work on instagram for kids until a later date after an explosive report that shows facebook found its instagram app is harmful to main teenagers this report citing in part a march 2020 facebook slide presentation that showed that instagram made body image issues worse for one in three teenage girls. which makes me sad, guys, but i'm not necessarily surprised given the fact that in some ways it is like an alternate universe and many go on social media and instagram and they show the parts of themselves that they want the world to see or the perception of the parts of themselves they want the world to see. >> we were talking with cramer in the 9 about how advertisers are thinking about this but david brought up the stock and the unbelievable revenue growth in q2. we'll see how much is repeated in q3. >> yeah.
we've had a serious level of criticism of facebook for a long period of time the journal reporting was excellent and that series about not just this but so many other aspects of the platform or platforms was potentially very disturbing it has not really seemed to impact the ability of the company to generate revenue by charging people for advertising, whether small, medium-sized businesses or the biggest companies in the world >> yeah we talk about tina with the markets how we started off with the hour, you can make the argument, there are more social media companies gaining traction, online advertising platforms including tech names starting to gain traction but the idea there is no alternative and if you want the most bang for your buck you're looking at platforms like facebook. >> that's what cramer's point when it comes to small business. netflix trading lower by a percent after its first global fan event, three-hour live stream featuring trailers and clips from movies and tv series.
joining us is stifel's scott who went from 580 to 680 on your target i assume some of that is surrounding this new slate >> yes, good morning, carl it's really an electric content line 50 new ads to existing original series you're going to have all nine seasons of "seinfeld" sitting in october. the comeback of "tiger king" here in the fall of 2021, don't look up in december with leonardo dicaprio and then in 2022 a new "stranger things," strong content slate on the back of an early pandemic pull forward. the setup for netflix is strong. >> not to mention "squid game" number one on the global rankings, the first korean drama to claim the number one spot in the u.s. have we gotten better over time at figuring out when they have a hit, what is applicable?
>> i don't think there's a mathematical equation, but typically subgrowth does help -- is benefitted by strong content and so there is definitely a correlation there and particularly right now, given that you're going into the seasonally stronger winter months and you're on the back end of a pull forward so a netflix unlike all of e-commerce which had strong trends throughout the entire pandemic, netflix had a very strong first two quarters and then really started to lap they borrowed 8 million subs spr 2021 into 2020 and then all in they're probably still on their run rate of mid 20s to upper 20 annual sub ads within this construct or this framework of their being 540 million households globally outside of china that have broadband that's going to go to 640 over the next five years and netflix will just continue to grow within that
market >> so scott, looking at the content slate and i realize hey, "tiger king" we have a high bar to hurdle with season two, side note, but if you look at, you know, what's going to get rolled out so much is geared towards international audiences for a long time we've been talking about the saturation of north america, can they extract as much profit from international subscribers signing on to the platform as they can for north american users >> that's a great point. so there is a lower arc outside of the u.s., but it's grinding higher as it is in the u.s. because of pricing increases of the company incorporates annually in each market effectively. global for netflix is rising the marketing efficiencies the company gets in the u.s. they don't have outside of the u.s. yet, but as they layer in an additional 120 million subs outside the u.s. over the next five years you're going to start seeing marketing efficiencies benefit the business on top of slowing content growth
as the business begins to mature you have an operating margin that in 2021 is 20% that should extend to 35%. on top of that a company that's required capital up until this point given the way that they pay for their original content and that's beginning to flip favorable as well. the company no longer leads external funding and should be generating double digit billions of free cash flow within the next five years. >> we've been waiting for the free cash flow days. talk about content growth spending it isn't here yet is spending more but all the other direct to consumer platforms that continue to try to add subscribers what's it like out there from your opinion you know, is everybody going to meet their subscriber goals or where is it going to come from when they -- the consumer looks at their bill and raelzizes what am i spending on streaming every month? >> the way i think of it is, it's a better experience -- tv
is a better experience than it was when you could not exclude commercials. so what you want, when you want basically expands the size of the market in other words, like consumers are almost willing to pay more for something better than historically where we look at this as a zero sum game between netflix and hulu and disney it's really a transition from linear programming to the new way of watching television and leading into it what we think is a bigger market. so essentially consumers potentially spending more in the future than they did in the past for the better experience. >> so everybody is going to be a winner >> i think that there are i think companies like netflix and disney are clear winners i wouldn't make the case that every single company that's investing in streaming content will win many of the legacy companies in the media industry forced in this direction are offsetting declines in their core business by mbeing here
those investing in pure plays like netflix, netflix is leading the way. >> i want to shift gears you don't discover facebook. we were having a conversation about instagram, the fact that facebook does continue to, you know, grow revenues at a very strong rate. when it comes to online advertising and all of the ongoing scrutiny and criticism of social media right now, is there anything that moves the nooeld i ask this knowing you cover other companies in the space like alphabet and amazon. >> right i think that the environment has been evolving, these are very large companies now. there are perceived, you know, impacts that are happening on society because of the things like social media and because the businesses are so, you know, large now, there's going to be incremental scrutiny there has not been anything that's been particularly damming to the industry quite yet, but we're going to have to continue be to monitor. it's something on our radar.
>> scott, fascinating times, especially coming off of the emmys and everything else. appreciate it. good to see you. >> thank you. >> from stifel speaking of media, do not miss our coverage live from fox media's code conference starting tomorrow it's a star-studded lineup of names including salesforce's marc benioff, chair gensler, tesla's elop musk and many more as we break down the biggest trends in business, live from l.a. tomorrow and weesy.dnda you can get your taste of code in the next hour on "tech check. stay with us
working at recology is more than a job for jesus. it's a family tradition. jesus took over his dad's roue when he retired after 47 year. now he's showing a new generation what recology is all about. as an employee-owned company, recology provides good-paying local jobs for san franciscans. we're proud to have built the city's recycling system from the ground up, helping to make san francisco the greenest big city in america. let's keep making a differene together.
"t welcome back to "squawk," i'm dominic chu, storks are mixed with the tech and health care sectors lagging as you can see here, deeply in the red, while energy and materials and financials are leading the way higher, right here, energy far and away the best performer. within the financials trade in particular, we are seeing notable gains in a range of companies including insurers like lincoln national and met life and custody banks like state street as well, and there is a lot of green on the screen
here as the moves move higher as we watch the trajectory of interest rate, the bench mark yields highest levels since june. meanwhile, you have two and 10-year spread at the highest levels since the first half of 2020 as well so keep an eye on the interest rates, now david, back to you guys at the new york stock exchange >> thank you, dom. well, oil may be up today, but what about companies that are involved in producing energy from solar pippa stevens has a look at that sector. >> it is a tale of two cities here for energy stocks dom was talking about, traditional oil and gas are bouncing, as brent jumps to the highest level in nearly three years, while nat gas is up another 7% today and for the overall market, the energy sector is the top performer, up almost 10% for september. but the same cannot be said for renewable energy stocks. invesco solar fund is getting a boost today but still down more
than 5% this month due to several factors, including a lawsuit filed by an anonymous group of u.s. solar companies asking the department of commerce to implement carrots on solar imports from malaysia, thailand and vietnam this would have huge implications since 80% of imports are from those three countries according to the solar energy association performance today is mixed some movers to the down side, xinyi solar and west holdings corporation. along with flat glass. sunrise, first solar and sunnova trading in the green, all up more than 1% still the investor solar fund is on track for the seventh month in the last eight. while biden and world leaders are talking about rapidly deploying renewable energy, there is a lot of volatility for
investors. back to you. >> those traditional energy sources keep on rising at least for now. pippa stevens, thanks for breaking that down for us. after the break, could a new tax on unrealized capital gains be on the way? we will discuss that but in the meantime, it's hispanic heritage month and all month long we're spotlighting business leaders and our own on air managers and reporters and here is marketing manager katherine guirales. >> if you're a young latino starting out in your career, you better bring your authentic self every day. you may laugh a little louder, you might sing a little louder as well than somebody else, but let that music sing out of your heart in everything you do and make sure you bring your authentic self every day e ppinoucaerl guarantee that you arhay yr re
robert >> good morning, david president biden saying he's on board with the senator's plan to tax the unrealized gains of millionaire, the mini wealth tax and the plan on the list of menus, the democrats are considering right now, to fund the reconciliation package the details are in flux. but earlier proposals from senator widen call for a tax on the annual increase in asset values regardless of whether they are sold. the rate would be the same as ordinary income rather than the lower capital gains rate so for instance, jeff bezos gained $75 billion in wealth last year, we owe $32 billion in taxes. elon musk was up $158 billion last year, his tax bill would have been $69 billion. so what about when stock goes down widen's plan allows for losses one year to offset gains in future years though there would likely be limits to avoid the irs sending multibillion dollar checks to billionaires critics point out that illiquid
assets like private companies or property are difficult for the irs to value and they say corporate founders would have to sell stock every year just to pay the tax now, right now, we don't have any revenue estimate force what this would raise for the government, and of course, that would vary widely by year. morgan >> robert frank, the numbers are astounding thanks for bringing us the latest. that's going to do it for us on "squawk on the street." "tech check" starts now. happy monday welcome to "tech check." we have keentcarl quintanilla ad julia boreson, a rough start to the nasdaq, more than a percent at the open, now