Back down immediately after the jobs number was stronger than anticipated. Tenyear closed at 4. 79 . Crude oil is picking up. Joe mentioned the spike, but below the levels from recent weeks. Gain of 3. 5 to 85. 69 for wti. Brent is 87 a barrel. The dollar has strengstrengthen. Euro the euro dollar is down a bit. Lelts get to the latest on the breaking news. Israeli declares war after the hamas strikes over the weekend. We have Kelly Cobiella with more from the ground in tel aviv. Reporter good morning. A rapidly changing situation and we are getting information by the minute. You hear the air sirens in tel aviv. We have heard three rokckets fallen on three sites in the south and in the grader tel aviv area as well. We have not been able to confirm that. There are casualties involved in the strikes in the south. Israeli Defense Forces say they hit hundreds of hamas targets overnight in gaza. A difficult situation for civilians. Gaza Health Officials are saying they are struggling to reach the wounded. 2,700 wounded there. Nearly 500 killed and power has been cut to that area since the weekend. Israel has warned civilians to get out of the way of any possible hamas targets. It is difficult in that area. It is a small area. 25mile long strip with 2 Million People packed in. A very urban environment and no borders are open in and out of gaza. Here in israel, we are hearing this morning from the defense min minister. You can hear the anger in israeli officials in the statement. He said, i ordered a full siege on the gaza strip. No power, no gas, everything is cl closed. We are fighting human animals. The idf called up 3,000 reservists. What is next for the territory in the south and as a side note, we heard of gun battles overnight between the idf and gaza militants in that area. The idf spokesperson saying the military is prepared to deploy Disruptive SolutionsGoing Forward to address the situation. Not elaborating and not talking about any possible details about a Ground Invasion. Of course, there is this very weighty and difficult issue of potential hostages held in gaza. Maybe as many as 130 if you believe the reports coming from militants inside gaza. Some of them are soldiers. Many are civilians. The question is how to get them out and what to do next. Im not sure that we are hearing a cleara answer from the is rae government. Kelly, what is it like on the ground in tel aviv right now . Maybe can provide the answer here with what comes next in how long this plays out given the density of gaza which makes it seem impossible this could end any time soon . Reporter ill take the first one the second one first. This has the potential to last a very long time. That issue of hostages within gaza is an extremely delicate one. Especially when you talk about civilians. We know that women and children, we believe, are being held there. One man traced his wifes phone into gaza. There are militants inside gaza which have been sharing videos purportedly showing women and children inside gaza. For a point of reference, in 2006, israeli soldier was held in gaza for Something Like five years before finally being released in a Prisoner Exchange involving 1,000 palestinian prisoners. These things can last an extremely long time. On top of that, you have the tremendous number of killed. Something like this hasnt happened in israel it is simply unprecedented. Predicting how long this can now last and what the government does next is next to impossible. A Ground Invasion would be incredibly difficult. That is urban fighting in a dense area with more than 2 million civilians. Lots of young people inside gaza as well. Hundreds of thousands of young people there. To answer your first question, i think people here in israel are still in shock, frankly. The streets are very quiet. You would normally see traffic jams here in tel aviv on a monday morning. We saw none of that today. I think people are trying to just reset and figure out whats next. Not to mention the people who are still unsure how their loved ones are doing. There is a lot of that as well. Still unsure about how this could happen in the first place. This is a government led by Benjamin Netanyahu who famously has said he is the one who should be the Prime Minister because he is the one who can keep israeli people safe. The israeli people have now been attacked from militants from gaza. That has really changed the equation on so many levels in this country. Its hard to predict even the next few hours, let alone the next few days and weeks. Kelly, i want to thank you for that report. We want you to stay safe and im sure well talk to you very soon. Later this hour, we will hear from former u. S. Intelligence official sue gordan and later the columnist tom friedman. We will talk about what it means for the saudi relationship and the is reraeli relationship. This is a tragedy on so many levels. When you think of the saudi relationship, based on the strength of israel and now israel looks weak. Now they have to come back. What does it mean to the United States and that relationship . What does it mean to our own Government Shutdown . Do things change here because of what is happening there in terms of funding israel . We had issues with funding ukraine. And iran looms large. Overa all of it. Theyre not friends. I dont know if you call it an enemy of my enemy in that regard. It is ais a complex place. Hezbollah is supported by iran. Thats part of the reason we sent a war sship to the Eastern Mediterranean. There are 150 missiles aimed at israel from lebanon. The concern would would be if israel goes all out and you hear of them talk about not ending in gaza, how does that spread in the region and beyond . Iran. We know it is a terrorist state. Hence the horror at the possibility of nuclear iran. They get closer and closer. Are they capable of that . Are they capable of anything . That is the most horrifying thought. Maybe in this day and age, they are capable. I dont know. They had 6 billion that had been frozen. This planning supposedly started in august. The worlds a dangerous place. You point out the house and the house could probably be doing something. Funding or otherwise. Israel has been a bipartisan issue for the u. S. You need to have you need a speaker. There are pockets in the house where they did not want to help. We are almost antiisrael in the house. Some factions. I think there are several. Some of the demonstrations around the world and in this country are beyond the pale of us being able to understand what is happening and how you could possibly be demonstrating on the side. I understand disenfranchised. I dont know if that issue ever goes away. There are clashes of the demonstrations. Its shocking. Its a disgrace. Its around the world. These are the same emotions for everyone. Horror and sadness and anger over what is happening and shock. Just watching the stories. I know. How many . Thousands and thousands of stories of the guy talking to his daughter. She says were on the way out and the last message he got was were going to die and hasnt heard from her since. Frightening. Grandmothers and hostages and children . Thats not a normal war. This is a terroristic act. I have cousins and family there. The thing about it is it is like a 9 11, but almost five or ten times more intense insofar as it is a country of 8 Million People and now were talking about 1,000 people who have already died. Do you remember when 9 11 happened in new york, so many people here knew somebody. Family member. It is like that there, but everywhere. It is at an intensity that is deeper. This is one of the watershed moments, unfortunately. We know the retaliation will be swift and probably significant. Civilians in a place like gaza . That is the situation that complicates. The hostage situation and the sheer density of gaza. Exactly. They will be caught up in this. Civilians on both sides. You cant identify. Hamas is hiding in schools and mosques. And hospitals. Markets. It is what they have done for years. We will talk to tom friedman about this. We have a lot of folks who will help us sort this out. Lets talk about the markets. Thats the juxtapose all that. Were cnbc. It is necessary. It just seems difficult to do. Get ready for the busy week in the market. Get ready for inflation data and the kickoff of earnings season. Osawbo oxtn quk xn cnbc. Announcer this cnbc program is sponsored by baird. Visit bairddifference. Power e trades awardwinning trading app makes trading easier. With its customizable options chain, easytouse tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. E trade from morgan stanley. Power e trades easytouse tools make complex trading less complicated. 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Now you can stay reliably connected through Power Outages with unlimited cellular data and up to 4 hours of battery backup to keep you online. Only from xfinity. Home of the xfinity 10g network. On the squawk planner this week, it is busy for economic data. We get Producer Prices for september and then on thursday, consumer inflation data and jobless claims. On friday, the latest read on import export prices. We also will slowly tread into earnings season. We hear from pepsi and then Delta Airlines as well as walgreens and dominos. Then friday is the banks with Jpmorgan Chase and citigroup and wells fargo and united health. Joining us is strategist anastasia omarosa. Both of you have a feel for equities although we are talking fixed income at this point. Anastasia, ill start with you. This is unsettling for investors. In the past, things have caused a correction. This could be an indication of something worse in your view . The stock market will focus on israel over the weekend. It is sad to see the human toll. From the perspective of the stock market, it is a geopolitical flashpoint to process how this might escalate and how it might be contained. What is already playing out is what is happening in israel could fracture the fractured world we have. A lot of countries dont see eyetoeye on this. By the way, of course, iran and what happens to the uranium barrels and if the oil is the bargaining chip is at stake here. We dont know how it will shake out. Joe, you are right. It adds to the unscertainty of the market. If i get to the other side and look at the pullback, one area that is not tied to oil is technology. That is why investors have been stepping in and trying to buy the pullback in technology. You dont have the oil sensitivity or geopolitics in there. I suspect that is where investors will look for opportunities. Adudra, we will have higher for longer. They must have said it a lot more convincingly. Suddenly we believe it and i think it is happening. You think we could get a pause in the upward move in rates right now . Absolutely. With the environment where geopolitics takes over, Higher Oil Prices is a concern. My concern is if this persists and the Political Risks start to weigh on the could be looking at stagflation. U. S. As we will see if gas prices start to go up and you will see consumers come under pressure. This may dampen higher yields. The flight to safety, if you will, will bring investors to treasuries. We may not see 5 any time soon on the tenyear bond . We may not see 5. 5 or the worstcase scenario. It seems that way given the fact we have moved a lot already. To me, a lot of that move is not fundamental, but technical. Under the circumstances, i think you will perhaps see a little bit of a slowdown in the momentum to higher yields. It depends on how quickly the issue gets resolved. Broadly speaking, the economy is on a strong footing coming out of the third quarter. The jobs report we got on fridy was strong. The labor markets are tight. I think that could, perhaps, keep yields around 4. 5 to 5 . I think you will see a break in the yields if you see a slowdown in the economy. Anastasia, you think people will use weakness as a way to add to positions . I do think so. Case in point, joe, the tenyear yield breaking out last week at 4. 5 . It seems people are using the spikes to buy the dips in technology. Im sympathetic to the point that it can pause at current levels because we are coming out of a strong third quarter. We will not have strong gdp growth in the fourth quarter. Not with the auto strikes and with the issues in israel. That could dampen the yields moving higher. Oil prices are rising this morning. At the same time, energy is 7 of the cpi basket. I dont think the fed will react to that. We have cpi on deck for this week which maybe rises a bit p month over month, but not as much last month. That is constructive as well. The fed looks at core. Eventually eventually, Energy Prices takes a hit on everything. Eventually they do because it is a feed stock to the products. If you look at the numbers like a 10 move higher in oil price, we expect a 2 move higher in headline inflation and. 1 in core inflation. It does feed through. Not to the extent that would derail. Looking to later this week with inflation that we are expecting to come in at 4. 2 on the core number is a step down and that should be favorable for the fed. I think pause in yields as we talked about would bring some of the investors back to the technology stocks. Subadra, i guess the world is being brought back to reality and how dangerous it can be. Then with ukraine and as time goes by, it goes into i assume something will happen here and people get back to business which is difficult, but it will impact Economic Activity in yields and oil. You cannot ignore any of these things. Absolutely not. Thats why were paying attention. A lot of data is more essential at the end of the market where it is sensitive to the moves in the bond market. This has been building for a long time. Fed policy works with lag. You are starting to see the lags feed into the economy. You get the geoPolitical Risks. If anything, that could hasten the time going of timing of recession. The rise of prices has impact o. Thank you. We will get an update on the strike by healthcare workers at Kaiser Permanente. We will have a that story next. We will talk to esther geo george, the former Kansas City Fed president. Squawk box will be right back. Mlb chooses tmobile for business for 5g solutions. To not only enhance the fan experience, but to advance how the game is played. Nows the time to see what americas largest 5g network can do for your business. Since my citi custom cash® card automatically adjusts to earn me more cash back in my top eligible category. Suddenly lifes feeling a little more automatic. Like doors opening wherever i go. [sound of airplane overhead] even the ground is moving for me yall seeing this . Wild and i dont even have to activate anything. Oooooohhh. Automatic sashimi earn cash back that automatically adjusts to how you spend with the citi custom cash® card. [mind blown explosion noise] the lor barista coffee and espresso system. Now brewing peets coffee. Pharmacy employees at Walgreens Stores are planning a walkout today that could last until wednesday. Pharmacists and support staff are calling burdensome expectations. Walgreens was engaged in listening to concerns of team members and making investments in pharmacists wages and hiring bonuses. This is a big issue back to the pandemic with walgreens and cvs pha pharmacies. You see the pressure to get the prescriptions delivered and especially during vaccine season with lines of people waiting for these things. You can understand how they got to the breaking point. Cvs stores and some in kansas city have walked out and the Ohio Attorney general is looking into whether some practices at cvs have been under staffing pharmacies. It is an usual h issue across t nation. In the meantime, voluvo ownd mack trucks will go on strike today. It would improve Retirement Benefits and added Vacation Time for workers. Uaw said 73 of the workers voted against the deal. Meantime, the strike by workers at Kaiser Permanente is over for now. The work stoppage ending saturday morning without a deal. Kaiser permanente scheduled bargaining sessions for the end of the week, but the union could strike again if they bargain in bad faith. When we come back, more on squawk box, with the law make ma makers with the response to what is happening in israel. As we head to break, a look at the dow and s p and nasdaq. All down at this hour. Were coming right back. Announcer executive edge is sponsored by at t business. Next level moments need the next level network. 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