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tv   Closing Bell  CNBC  May 19, 2021 3:00pm-5:00pm EDT

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addressable market -- you will hear that a lot with this plant based dairy as well. >> tyler is your question answered >> i like it in latte. >> you have had oatly. >> i think it is good. >> i used it in a shake this morning. >> okay. >> i liked it in a whole milk latte. whole milk, agreed welcome to "closing bell." what a day i'm sara eisen at the new york stocks investors are grappling with another volatile session crypto seeing the most carnage. >> i'm wilfred frost let's look at what's driving the action bitcoin plunging to its lowest level since january. at one point down more than 50% from its peak. we will have much more on the crypto crash throughout the show stocks dipped following the release of the fed minutes some saying if the economy takes
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rapid progress it might be appropriate to discuss a plan to discuss adjusting the pace of purchases. once again, target saying standout results we have 59 minutes left. we are down 400 points, just selling off a bit this the last 20 minutes or so. >> session low was down 585. coming up in today's show, mark mahaney, tom lee, dan niles, and josh brown, and xi qiau from ubs. plus, we will speak with ceo robin hayes about the launch of flights to the uk. >> we have been pushing them for a while. they have come through looking forward to it. let's get straight to the big stories we are watching. mike santoli is tracking the market action.
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steve liesman has a look inside today's fed minutes. mike, let's start with you a crazy day. a couple of significant bounces but softening in the final hour? >> the market has been put through its paces having to ab soared the downside shock in bitcoin, fed minutes, also a retest of last week's lows i think that might be the most relevant thing so far inconclusive but holding above the lows from last week. saw 4060 right after the open this morning bounced, kind of turn around a little bit and had a recovery attempt. we are still talking about this area from the april highs that has not been breached again. sort of flattened out. maybe it is going to look similar to that range-bound period if i guess the bulls are lucky right here the other thing i would point out, we are going back to that june peak, early june of last year that was that interim reopening kind of enthusiasm peak for a little while there we have gone through this before but the story line has changed the nasdaq 100
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look at the qqqs, they bounced more they have been laggards. definitely not a leadership group. i have the one year for a reason letter the september peak was at 305. it is still close to the low from march valuation it has been adjusted down because earnings have been so good. still inconclusive but it seems like there is an effort here to find out if as the cyclicals get tired and come off and testimonies and industrials and that if the growth stocks with maybe take up a little bit of the slack. that to me was the push/pull under the surface today. look at the more risk appetite tells related to crypto and other sectors of the market. gbp, sometimes the trust trades at a discount for the underlying value. the cloud stocks, tesla, spacs,
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they all peaked in february. crypto had held up and had not had this reckoning until recently you see it is kind of roughly sagging toward what those other kinds of very active retail big growth big-picture story areas of the market have done. we will see if this is maybe closer to the end of that corrective process or just something that's ongoing guys >> mike, interesting, to our point there whether the qqq can continue its bounce. because for a session that was so heavily influenced by bitcoin overnight, it has been the cyclicals, even before the fed minutes, that led the selling today. >> yeah. >> not the more correlated tech names. >> exactly sort of an unwinds of the predominant retoegs we have had for a file toward cyclicals. you look at the bounce from march, you have had these periods where people return to the faang type stocks, their quality, their defense, their value. but it is conspeck use
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it is another way that the market is i think keeping people off balance doing the counter-intuitive thing. on a day when crypto was the big story in the morning and the gut check, you did have big company finding a bit. >> treasury yields are moving to the high of the session. so is the u.s. dollar after the fed released minutes from its april meeting in the last hour steve liesman with a look at the highlights steve. >> one highlight, as you know, minutes to the fed's april meeting show a number of fed officials are thinking about discussing tapering. let's brexit down word by word figure out how worried to be about it here's the phrase everybody is talking about, at the top. a number of participants suggested if the economy continued to make rapid progress towards the committee's goal it might be appropriate at some point in upcoming meeting to begin discussing a plan for adjusting the plan for adjusting
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the pace of asset purchases. the comment is qualified by saying if the economy continues to make rapid progress the growth data has been below expectations here's the official time line if the fed starts talking about a taper, given they say they will give markets plenty of warning june, july, they would discuss taper at those meetings. september, october, maybe announce a taper december, january, begin the actually taper today's comment raised the stakes on the time line. that doesn't seem drastic from what was already priced in i spoke to one who said her time line is confirmed. most fed officials think inflation is going to be transitory unlikely to be change in policy as officials embrace those outlooks. >> so the fed isn't --
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essentially, it sounds like what you are saying isn't saying anything new here. we have had how many fed speakers over the last, i don't know, week -- tons and yet treasury yields continue to march higher. it is a creep. it's not a spike but they are moving higher what does that tell you? does the market not believe the fed? >> i think, you know, as long as it remains within that kind of range, sara -- and if the folks -- by the way your comment is spot on if the folks wouldn't mind putting up that taper time line again, i put up this chart before, maybe a month ago, maybe a mont and a half ago. i don't see how the idea of talking about discussing taper at upcoming meet something different were this time line here it's may the upcoming meetings is june and or july. sent tween september and november they announce a taper maybe they announce a taper in
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november that would be a three-month change but i think it is still something they wouldn't start doing until december or january. and other folks already are saying you know, all this does is confirm what we already thought. >> the minutes mean they are discussing it already. >> they are talking about talking about it. >> yeah. but some people brought it up. i get your point, steve. and we thank you for -- >> good will it real estate analysis, wilf. >> interesting the dollar certainly interpretationed a change today the most pronounced move, up 6% and staying there. after years of planning and countless questions on this show, jetblue is finally to make a big leap across the atlantic we will speak with ceo robin hayes about jetblue's first plan for its flights to lon don next you are watching "closing bell" on cnbc.
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felix at the finish! you can even watch your dvr from anywhere. okay, that's just showing off. you get all of this on x1. so go on, get really into your shows. you need a breath mint. xfinity. it's a way better way to watch. welcome back starting today, you can book a jetblue flight to london
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the carrier adding for the first time transatlantic transfers from jfk to heathrow in august gatwick has been added in september. here's a chart shares trading close to prepandemic levels joining us, jetblue's ceo robin hayes. also with us, phil lebeau. good afternoon to you both in particular, welcome to you, robin. great news on this announcement. i am biased on this, another route home potentially but interesting analysis on the pricing. looks like you are squarely and fairly aggressively trying to undercut, particularly when it comes to the business class travel market, your main rivals like delta, american, united, virgin, and british airways. is that fair >> good afternoon, wilf. and we are very happy to have you a cheaper ride home when you need it. yeah no, no, we are very excited.
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jetblue is doing what jetblue does we come into markets that suffered for a long time with very high fairsz and we change it we saw it in 2014. fares to london as you know were even higher. the other thing about business class fares to europe, it is not a level playing field. if you work for a large company, a big corporate, you get a special deal, everyone else has to spend thousands we are stepping up and we are going to level the playing field. >> the opening price, i was looking around booking, kinds of what would be busy weekend later in the year as opposed to mid-week flights, $2,000 or so return for business class. is that our opening salvo just to grab attention? or are you committing to that sort of pricing for the next three years or more? >> we can't talk about future pricing, obvious lesion but we are very committed to keeping
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fares low. what we did in los angeles, when we launched mint back in 2014, we had many of those low fares still in the market years later. this isn't is a publicity it stunt. everyone knows when we come into the market, boston/los angeles, boston la guardia, we do it permanently. and we don't just lower the fare we offer customers a great experience we created 24 individual suites on this airplane it is going to be like flying on a private jet. you are going to get all of that and you are going to pay a lot less for it. >> the timing is interesting because phil and i and sara in all of our recent interviews push as to when this announcement coming. you have gone down the line of saying you needed more guidance from authorities, given pandemic and given the question of reopening. can we draw from this august launch that you have been led to believe at least by authorities that that uk/u.s. corridor is
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due to be reopened fairly soon >> so, we haven't had any specific assurances more than anyone else has. but you know, i will point to the news out of the eu today around their desire the welcome u.s. travelers for the summer. we look at the covid case count in both the uk and u.s both countries are doing a terrific job in bringing covid rates down the uk has launched its green, amber, red system. i fully expect, based on how we understand it to work at least, anyway, the uk -- or the u.s. will move to the green list well before we launch service and we know, wilf, there is so much pent up demand. we look at what's happened in the domestic market. jetblue will be flying as much capacity this summer as we were two years ago in the domestic market we see, once these international markets open up, the pent up
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demand is there and it comes very, very quickly. >> that's what i was going to ask, robin clearly the domestic market is booming right now. but it's an interesting time given interinternational has been hardest hit and slow to recover. so has business. when you think about london/new york trips you have to think some of the demand comes from business travel. how long is the going to take to see those areas recovering >> we are seeing our caribbean network performing as well as our domestic network we are confident once the restrictions come off or once it becomes easier to travel, the pent up demand is there. and then people will fly in terms of corporate travel, again we are starting to see that come back i get the train into new york every morning. it has gotten busier over the
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last four or five weeks. i think things are coming back things are going to -- i don't know if business travel will come back to what it was when i do know is when we cut fares 50%, we will create demand that wasn't able to fly it before. >> what is happening on pricing? are you able to pass higher prices onto the consumer because demand is so strong? along with that, what happens to all of the waifrsz that you and some of the other competitors did like free cancellation policies during the pandemic is that all gone. >> no, jetblue is still offering that, at least through the end of may i think we are one of the few airlines f not the only airline, that's still doing that. and so, you know, i think that's been very important to people, to give people reassurance in terms of fares, you know, it's really -- you really have to compare fares to 2019 and the average fares are still
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slightly down from where they were in 2019 >> robin, this is phil. >> hi, phil. >> you have an interesting position being based in the northeast. as you know, the vaccination levels in the northeast, higher than anywhere else in the country. you also have exposure to florida, which has been red hot in terms of demand are you noticing any difference regionally within the united states in terms of people booking trips? is it greater for these people in the northeast going down to florida than you see perhaps on the cross-country routes are you seeing any regional differences? >> no. if you think about what we do it really breaks down into three main groups. our northeast business to florida, to the caribbean and our transcon business. all of those are performing really in a very similar way i think what we have seen so far is a lot of people from the northeast traveling. what i am looking forward to and what i am excited about is at
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new york and boston and some of these other cities open up, there are things to do again, and people might be travel into the region we have seen the outbound traffic but i think there is plenty of inbound pent up demand to come. i am very bullish and excited about the months ahead >> as you know, robin, there have been a number of cases, a spike, if you will, in cases of unruly passengers not just for jetblue but many of the airlines in the u.s basically they are tied to the mask mandates. we don't see those going away any time soon. when they do go away do you expect behavior on the planes to improve? >> my thoughts always about in-flight crew members who have to deal with this. when you are up at 39,000 feet you can't call 911 you are 911.
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also for the other customers who get disrupted and get nervous. we have to accept we are in unprecedented times. we are coming out of it. we are learning a lot more about what works and what doesn't work i think it is all better if we just continue the work together on this and have some patience with each other as we come out of this pandemic >> robin, my final question, we mentioned the share price being back to kinds of prepandemic levels i wanted to ask whether you think -- it seems odd to be asking, whether in the medium or long term whether jetblue will be a winner in relative sense rather than a absolute sense and whether the new route to the uk is an example of that, given the landing slot, the airports you have been able to secure and perhaps the capacity that has come out from some of your rivals >> i think we are excited. obviously, the pandemic has been challenging for all airlines we are very grateful for the
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support we got from the u.s. government we also do a lot of things ourselves to make sure we are able to survive this we have a strong balance sheet we managed to grow newark. lax, we have airbus 220s, which was a game changer in terms of operating capacity and now u.s. to london i am happy with how we are positions. and i am very grateful for the 20,000 crew members we have that truly make the biggest difference every day >> just as we go, robin, photograph got to ask, of those 20,000 crew members what is your latest stance on whether you require them to get vaccinated or not. >> we are strongly encouraging it i am pleased with the takeup that we have had we are still -- we are still at that point, though, i think it is difficult to force people to get a vaccine. so we are in the business of
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strongly encourage i also think that while some people made a choice to go and get a vaccine as quickly as they can. i think we have to recognize some people are on the fence i think it is about just making them, giving them more time, giving them as much information, and hopefully over the course of time we will see more and more people vaccinated. >> robin hayes, thank you for joining us we appreciate it thanks to phil lebeau as well. >> thanks. we have got just under 40 minutes left to go before the bell look at the markets. the dow is down about 215 points session low earlier was down more than 500. coming back a little bit still a lot of pain out there. goldman sachs home depot and caterpillar taking the most off dow. s&p is down .75% the nasdaq down less than half a percent. after the break, we will speak with the chamber of commerce ceo about the state of business, the recovery and the cdc's new mask policy
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plus, how businesses view the biden administration's economic agenda as we head to break, top searched tickers on cnbc.com surprise, surprise, bitcoin, coinbase, ether, all drawing plenty of interest today the ten-year yield continues to be right up there in the top five 1.67 is your yield right now slightly higher. we'll be right back. cal: our confident forever plan is possible with a cfp® professional. a cfp® professional can help you build a complete financial plan. visit letsmakeaplan.org to find your cfp® professional.
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sfoi april federal reserve minutes out today, some officials noting it might be
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appropriate to start talking about tapering in upcoming meetings they also highlighted business optimism and expect labor market conditions to improve over the medium term. joining us now, suzanne clark, ceo of the chamber of commerce, biggest business lobby in the country. welcome. it is great to see you. >> thank you great to be here >> clearly, businesses are in good shape right now we just got through a stellar earnings period. but you guys have been warn being potential impact of higher corporate taxes and the biden administration's latest plans. did you get anywhere with secretary yellen when you hosted her yesterday for a meeting? >> we are right on the verge of the great economic resurgence and businesses are poised and ready to go to lift up families unts kmoo. they are worried about three things, one is the worker shortage two, our job-killing tax hikes and three, the risk of inflation brought on my massive government spending if we are ward those three things off, we are ready to take
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off. >> but specifically with treasury secretary yellen and the by den agenda, i know you have come out against the tax hikes which you just called job killers. yellen is not as popular on wall street as she was as fed chair now that she is pushing things like higher corporate taxes, wealth taxes, higher inflation distribution and other measures. whether is the business community on biden and the agenda >> we were thrilled to have the great forum on the global recovery it is always great to hear from the treasury secretary even when we disagree with her the idea is great. but the way they want to pay for it is not. getting infrastructure down without making the united states have the highest corporate tax rate in the industrialized world is doable. that's where we should be focused. we disagree on the tax hikes because we think they are job killers and we are in this
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uncertain fragile economic recovery this just isn't the time to put wind at the base of business. >> if it was an either/or, either you get the infrastructure, but it comes with corporate tax hike or neither, what would you go for >> the great news is that it is not. there is bipartisan compromise on the table that could take care of the critical physical infrastructure it would do it with user fees over an extended investment horizon. we could have shovels in the ground by the fourth of july let's get 'er done they have to figure out how to pay for it you mentioned another concern among business was the labor shortage you have been leading the lobbying effort against the $300 bump up in unemployment benefits to try to incentivize people to go out and look for work what about the flip side shouldn't employers be playing their employees more and boost
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the talent. >> we just came out with a survey 90% of them are saying what is holding the mick recovery back is the worker shortage you are right, big priority to get the workers back to work we like what is happening in arizona and connecticut where the governs are creating work incentive bonuses and child care credits and taking care of the problems that are holding people back we have 8.1 million unfilled jobs in this country getting people back there is going to be important to getting goods and services really flowing again. >> where are you on mask mandates would you like see them removed? is that a concern for the safety of workers we had the texas governor on yesterday. i am sure you saw his announcement on the topic yesterday? >> i think where we are it is great so many americans are getting vaccinated so we can get back to work and so we can think about not wearing masks anymore. but our concern is we don't want
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businesses to become the mask for vaccination police clarity will be our friend we get this is unprecedented, there is no playbook for this, we are going to come out of this gradually but clarity is going to be important if we don't want businesses in an uncomfortable position of telling their customers what they can and cannot wear. >> that about the chamber itself what are you doing to combat some of the criticism you have gotten from members of the republican party, like leader mcconnell, who said that the chamber was confused like leader mccarthy saying he wasn't a fan of having support from the chamber because of our chamber for 23 house democrats how are you going to balance these concerns you know, we just had our 109th birthday for 109 years, we sat at the same table of job creation and economic growth. there is in the a single member of congress that doesn't want more jobs in their district. we will work with any one of them at the ends of the day business puts on a team u.s.a. jersey
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we want to get back to thinking about american competitiveness, growing the economy for the american family and american workers. we will stay headed toward that true north and have another 109th birthday at some date. >> very diplomatic thank you for joining us still to come, investor dan niles says there is one thing that institutes the man worry for the market right now he will tell us what it is and the names he like at current levels following the pullback. two stocks that outperformed this year are gearing up to report results after the bill. we will bring you the numbers from cisco and l brands. >> a check on bonds. we are at 1.68 or so on the ten-year we are back in a couple.
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dow now down just less than 300 points a market flash on solar stocks let's get to christina parts
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nerve lass welcome, christina to cnbc and to "closing bell." this is my first ever hit. we know going green has never been so popular. request that comes inveterinariansing in green energy today stocks in the solar sector are shining. the invesco solar is up. if we look at individual stocks, array, enphase and solar edge are tracking -- you can see it on your screen around 5% still off their earlier 2021 all-time highs i want to focus own enphase. it is one of the best performers on the st. patrick's day today but also one on the worst on the year to day basis. they are continued optimism over president biden's clean energy plan the clean energy sector has taken a beating over fears over supply chain issues.
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so investors may be on the hunt for cheaper deals. >> christina, thank you for that echoing sara's welcome as well to control. >> thank you will. >> and cnbc as a whole. time now for a cnbc news update rahel solomon has that. >> here's what is happening at this hour. flash floods putting parts of south texas under water. customers lost power 30,000 remain in the dark. flood warnings in effect through tomorrow. in paris a rare demonstration by thunder showers of police officers they gathered outside of the french parliament in support of a bill that would guarantee jail time for those who assault officers. and spanish police firing tear gas at a group of people approaching the border between more rocco and a small spanish city more than 8,000 people have crossed the border in recent days the border crossing come after
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morocco protested spain giving -- in the disputed southern region. here's where we stand in the markets. coming back a little here. down 276 on the dow, which looking better than it was at the top of the hour. s&p 500 down .6% the nasdaq down only down .33% the russell 2000 down more than 1% bitcoin seemed to spark a lot of the slg. straight ahead, mark ma mainy will tell us his new top stock in the mega cap tech space. kbael we'll be right back. yeah...uh... doug? sorry about that. umm... what...its...um... you alright? [sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools
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welcome back tech stocks off their earlier lows nasdaq now down only .4% let's bring in mark mahanay from ever corps isi thank you for joining us, as always why don't we kick off with the broader index pullback and the kind of derating that we have seen earnings of course have been strong in some of the big cap
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tech names what sort of level in pullback vauls valuation have we seen do you think it is done? >> you threw a lot in that question i am not sure it is done we refer it as the great derating a lot of tech stocks rerated in the back half of last year 30 stocks from were trait trading at a price to sales ratio in excess of 20 times. it has now down from 30 stocks down to ten stocks we have gone through a great derate we can still see more movement in the sector i look at we are still a few turns above the precovid level the multiples still need the come down probably a little bit. then you are going to be looking at the names that are stronger fundamentally post covid than precovid >> on that note you kind of changed your order of
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preference. >> yes. >> let's start with the mega cap names. what's your new number one pick? and why? >> that setup i just gave you wilfred is what i was trying to get at this is a company that is growing faster post covid than covid than precovid. it has had an acceleration in retail yet it is at a discount of where it was trading precovid. it is dysfunctional in my book that's our number one pick number pick for us was our number three wick before, uber our top pick before was facebook nothing wrong with facebook. it has very nicely outperformed. the risk reward is just a little bit less attractive. we still like the asset long term. >> is there any other sector growing earnings as fast as these companies? >> there would be some software. sas would be
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then after that i am not sure. it is unusual. i look for these names that can generate 20% plus sustainable earnings what i really look for is 25% earnings that's the stock that can double in three years that's the benchmark i try to use when i pick stocks if i can find those kinds of growth rates it is rare, for companies to be able to do that multiple years that's something like 5x the rate of a normal s&p stock but they are great buy and hold stocks if you can find them. >> does spotify fall into that category >> spotify is our top pick in the large cap space. we look at mega caps and large caps differently spotify, i refer to it as one of our dislocated high quality assets they are rolling out a price increase, an 86-country market expansion and series of good product innovations both on the consumer and the advertiser side we think that combination will
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create a quarter where you get an inflection point and you will see acceleration in wretch growth and subscriber ads. you want to own the stock prior to that quarter. i think we are close enough to it that you start coming in and start ticking large cap. >> talking about growth rates within tech, there is so many, now not that every one is going u. there is software, hardware, semis, old tech, new tech, search, commerce which of those do you like or do you have to be stock specific >> most times we are going to be stock specific but i am going the look at the fundamental trends that we have seen over the last 12 months there is couple of sectors we think have seen a permanent pull forward of demand. for good or for bad thanks to covid but it has happened. online retail. i think web presence companies, online food delivery is one. and online advertising falls
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into this odd bucket it was negatively impacted by covid but it has had a super checkmarked recovery super checkmarked. and i think you can find good assets in there. find your high quality names that you liked precovid and then look at ones that have come in and are trading at reasonable multiples similar to where they were precovid but their fundamentals are stronger. you want to be long. facebook, amazon google -- it is not one of our top three picks but it fits that thesis very well. >> mark, thank you for joining us good to see you. >> thank you, wilfred. the major averages are pulling back shares of target hitting an all-time high in today's session. we will veew cmeha nomnts from ceo brian cornell next, in the "market zone."
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welcome back 11 minutes left in the trading day. we are now in the closing bell "market zone." commercial free action going into the close mike santoli, cnbc senior markets commentator here the break down the trades for the day. and josh brown is with us as well off the session lows all 11 s&p sectors are trading lower. the dow there down 315 points. it was down well over 500 at low of the session so we are off the lows but certainly a negative day as shown by the sectors all 11 being lower mike, interesting, the lows that we bounced off were similar to the lows of last week? >> almost the same
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that was the low for the day, which was about five hours ago it is a small victory. i think there was a lot of focus on that general area last week we got a three-day 4% pullback then a late-week rebound the question being, is it somehow going object just a v, is that it, was it a small knick? we still don't know. but there was interest, surges of programmatic buying after the fed minutes. so it seems like there is plenty of two-sided action around these levels where it is still kind of caught in a bit of a range. >> josh, how have you been viewing the weakness off of the back of higher rates, off of some of the frothier parts of the market like bitcoin and spaks and high growth technology coming off and now today spreading more broadly, energy the worst performing sector? >> i actually think if you can -- let's say you were colorblind and you didn't see the bowe red by 300 points, i
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actually think that this is one of the most bullish days in terms of price action that we have seen in a while i am going to tell you why beneath the surface. i know you guys on tv can't do candlestick charts everywhere i look there are hammers. when i look at japanese candlestick charts i am looking at important stocks that had been leading the raleigh the last couple of weeks the cyclicals. home builders are hammering out bottoms. you are seeing the hammers everywhere i think that's what you need to see. there has to be a dramatic event in some of these stocks that have very quickly been ripped lower. but more important than that is the high growth, high multiple tech names are bottoming what is different -- santoli will tell you this what is different between the way individual stocks bottom versus indexes bottoming, right, or index etfs. you don't get these v bottoms in individual stocks if there is no
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specific news. bottoming in individual stocks is more of a process you tend to see those v bottoms happen more typically in index etfs let me give you examples snowflake opened down big, now it is up nicely. shopify, down big opening, up nicely bitcoin got as low as 30,000, which i consider a stock by the way. bitcoin was in a 53% draw down it is all the way back at $37,000. you are seeing the high growth high multiple areas trying to form bottoms you shouldn't expect most of those to look like vs but the process is happening so i am looking at -- what was another one i wanted to give you guys, very quickly snowflake, down 4% at the open, up 1.8 i think that's important the home builders i mentioned. there were in a 12% drawdown in the hxb.
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that one, the buyers coming in exactly when they should it gives me the sense that we night have seens the worst of the volatility for the week and i wouldn't be shocked if tomorrow is a big green day. >> paypal, up a third of a percent with its ties to bitcoin. >> i am in that. >> josh you don't even need a candlestick to talk about those charts kate rooney has the details on the bitcoin wild day. >> bitcoin lost a third of its value in a matter of a couple of hours. it dropped to around $30,000 it is now back around $40,000, $39,000. showing its volatility today despite being talked about as a safe haven asset i am fold that selloff was sparked by headlines out of china and regulators there reiterating their stance on a crypto ban bitcoin started its slide last week after a series of tweets from elon musk
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it also hit crypto brokerage firms, too, coinbase, and others seeing volatility. and investors rotating back into gold citing cme futures. >> gold having a nice day today. mike, what was different about this selloff in bitcoin is that it seemed the move other markets in a way we haven't seen not just stocks. but there was a move -- tightening in credit, money markets. a lot of the tape says this was not a systemic move. maybe isn't but there was a ripple effect. >> it is big enough in terms of the gross dollar values involved, the leveraged on top of it, how active it is and the accumulated house money that's in that area sure, if it starts to rush for the exits it is going to cause other markets to brace for blowback it didn't really seem to create
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any sort of contagion effect in fact you had a crescendo. then it burned out the selling energy for the short-term. i don't think what has gone on today is going to change anyone's opinion of what bitcoin is, whether it is real, whether it is ready for primetime, whether it is a collective delusion if it goes down by a third in a way and everybody who owned it before said, yeah, that's what bitcoin does. >> let's get to -- >> i -- >> sorry, josh we will head in a about it later. target, one of the winners today after a big earnings beat. courtney reagan has it for news a beat on all metrics for target that's lapping the big stockup pandemic quarter of last year, which makes it more impressive earn, revenue, comparable sables well beyond analysts estimates
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comps grew 23% with growth at both stores and on line. digital comp stales alone grew 50%. and target stores fulfilled 95% of online orders many of those through its various same-day option. all together those same-day options grew 90% in the quarter compared to the same time last year the ceo credits both macro economic influences as well as the company's own strategy to combine digital and physical for another strong quarter. >> i think the confluence of a stronger economy, a consumer who has been vaccinated who is more confident, who is excited about getting back to their normal life, all of those thing are benefiting us right now. i think we are seeing a much more optimistic consumer who is excited about getting back to the life that they haven't lived for the last year. >> like its competitor walmart he says shoppers are interested
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in apparel again particularly new apparel the cat grower grew 60% compared to last year's same quarter comp when food and consumer stockups and the lockdown quarter was really in full swing back over to you >> courtney reagan, thank you. let's hit amd. staging a midday comeback as well after announcing a big stock buyback. josh lipton with the details. >> here are the details of that news amd announcing a $4 billion stock buyback plan its first repurchase authorization by the way, since 2001 the company says the buyback will be funded by cash from operations amd's ceo lisa sui saying today's announcement reflects our -- >> the stock has been under pressure this year, down about 15%. pulling back that chart, it rallied 100% in 2020 and up some
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2200% since lisa su became ceo in 2014. >> thanks for that 2.3% bounce there. two minutes left in the trading day. just over that mike, more details on what the internals are telling us. >> still skewed to the negative side, wilf definitely improved over the course of the day. even though the indexes have had a relatively dramatic run off the lows still lopsided to the negative advances versus decliners on the new york stock exchange four to one to the negative. a lot of times, breadth, if we open down big it doesn't have really the capacity to sort of make that up look over the last week. financials versus tech a. little bit of the opposite ends of the see saw usually in this space. running pretty much in parallel right now. that tells you tech has been presold, underperforming for months and now it is getting a little bit of attention on the buy side just because of those excesses perhaps that have been squeezed out of it for the time being. the volatility index was an
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interesting signal in the morning. as we hit the lows from last week in the s&p 500, the vix did not get anywhere near last week's highs that shows you there is less intense knit the selling, less alarm. that's a net positive even though we are 30e tensionally going to close up marginally positive in the vix it is at the lower end of the week's range. >> quite a comeback in the final moments of trade we are only down 184 points as we head into the close one minute left. look at the markets. as far as what is hitting the dow. goldman sachs is the biggers drag boeing, chevron, caterpillar also lower we were down as much as 585 points at the session lows a comeback for the s&p 500 as well looks lick we are going to close near the highs of the session. the josh's earlier point arc lot of buying the dip action today the nasdaq is almost going to go positive it is actually flat on the day no thanks to tesla, custom is the biggest drag
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the russell 2000 index of small caps faring the worst of the bunch, down .8%. that's thanks to weakness in groups like energy, materials, and financials it looks like technology closing green. info tech, and communication services helping propel the s&p 500 to down only a third of 1% and wilfred, the nasdaq closing flat >> just negative, by three basis points close to being positive. welcome to the "closing bell," everyone, i'm wilfred frost along with sara eisen and mike santoli. as sara said a great final 15 minutes of trade took the nasdaq composite to just frangs trackally negative the s&p and dow down less than 1% two sectors going positive, tech and communication services the other nine negative. bitcoin staged a bit of a rally as well towards the close,
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ending at 39,600 but still below that 40k level what a day for bitcoin more discussions on that coming. also coming up, sar tory fund founder dan niles on this massive selloff that we have seen of late, and the intraday rally. plus, bitcoin as we just mentioned plunging again. crypto master don kelly will join us to discuss and investors are awaiting earnings from cisco and l brands we will break down the numbers as soon as they are out. josh brown still with us and xi qiao and tom lee join the conversation tom lee, i will come to you first of all what do you make of today's bounce and the intraday buying following the massive gut check this morning i guess whether we talk about ekts equities or bitcoin. your pick? >> i think both markets were watching the vix carefully
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the vix peaked out last week at 30 -- or under 30. that wasn't much of a move today there was some attempt to sort of see volatility increase but the vix could only get to 26 and i think pretty much finished the day flat so i think there is a shakeout happening the last couple of days a lot of deleveraging, which is healthy. one way to see it is that institutional cash is at $3.065 trillion hedge funds and institutional investors raised so much cash in the last few months that we are pretty much -- the dry powder on sidlines is where it was last year. >> what, you think that will spark a leg higher here? do you think the market bottomed, even the tech stocks >> that's a great question it will reserve one of two ways. either the market will suddenly lose all underlying buying because all the money is on the
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sidelines so we could have a down draft but i think the odds are favoring a melt up as long as the economic news continues, vaccination, consumer confidence, i think we could have a melt up i think there is a lot of consolidation the last couple of days, but i think it is a precursor to a big move higher in connects. >> xi, what's your take on that? >> well, we are still certainly very positive on the equity markets. at this point, we see the inflation concerns but that's not news anymore. we feel like, you know, the inflation is certainly going to cause a lot of volatility in the markets as we see today, but is still going to turn out not so bad at the ends of the day and it is not going to drive a sustained selloff. so you know, we still, you know, despite where you go in the market, i think staying invested is important at this point, especially with inflation and there is not much value to holding on to a lot of cash. >> mike, if you look at the u.s.
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dollar for instance there was a move off the fed minutes when the fed mentioned that it was talking about talking -- thinking about talking about tapering, that's if economic conditions continue to improve not signaling any major change in the time line but that did seem to spark a move in the dollar and also treasury yields. is there anything to think that the fundamental concern there of higher rates and more inflation has changed enough so that the market would melt up, as tom lee said >> nothing really to think that much has changed you have to squint to see the changes at the margin. even in the dollar it was stretched so far to the downside near the lows. i think maybe the fact that there was slightly more of a nod by the fed in the direction of multiple voices on the committee talking about having to start talking about talking about tapering it's absurd. but yes, i think there was enough of a little signal that we are on this track where we are going to have to monitor this and it is when, not if
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maybe that was a little bit of it the rest of the market -- no and yields range bound, credit markets as i keep pointing to, perfectly if i were. they can't get a lot better from here but they are certainly holding up fine. that tells you this hasn't really been a broad asset class rebellion about the outlook. it really hasn't been about the macro this little pullback in stocks. >> tom i wanted to return to what you were saying moments ago. i think last time you were on you said the nasdaq 100 had 5 to 7% downside before it would rally. now you are saying you are favoring the likelihood of a meltup what size of upside of a meltup? and how do you balance out those two possibilities? >> wilfred, we still think investors need to take down their technology overweights it is a consensus in crowded trade. so we do think the nasdaq 100, or the qqqs, need to get around 300. i might even say bitcoin's
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action might be sort of a precursor to what the nasdaq has to do. but the rest of the market can rally. if the s&p rallies 10%, i don't think tech goes down i just think it doesn't rally nearly 10% but, you know, the reason it's sort of crowded is ultimately consumer dollars and interest is going to be focused on things where there is pent up demand. and that's -- you know, we will see it if the cdc eases guidance on other activities, including cruiselines, i think investors, who have been avoiding a lot of those stocks are going to rotate i think there is mechanical reasons why investors need to lighten up on technology >> josh, what do you think of tom's call >> i mean, i don't know which direction the next 5 to 7% is. but, again, when i was looking a of the the price action today, understanding that on a headline basis we were red. just looking at some large important individual names like
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square for example, staying where it had to stay to maintain an uptrend after a pretty serious selloff. like that's the kinds of thing that i am just looking for even if you say that's anecdotal. anecdotes matter when are talking about the most widely held names tom could be right that tech underperforms for a period of time but i believe when we lap the pandemic so to speak and we are finished with these really easy comps and comps get tougher i believe that investors are going to go back to the game of looking for the companies that have the highest secular growth and are thely reliant on overall growth and they will find -- you know, they will find the companies that got us here, quite frankly. so i don't think that i want to throw something out just because it's tech because i think a lot of the earnings growth is still going to come from that part of the market. >> xi, what is the ubs view on
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gold at the moment with all the bitcoin volatility and crypto volatility, do you think it might get a new lease at life? >> we are not too focused on gold or even commodities or metals at this point we are still very much focused on equity markets and the rotation and just in general, our investors are now looking at, you know, focusing on the earnings growth, and also the recovery and the reopening of the economy. so we are still looking at this rotation from growth to value. >> cisco's numbers are out let's get to josh lipton with those. josh >> wilf, cisco reporting q 3 results here 83 cents on the bottom versus expectations of 82 cents revenue up 7% to $12.8 billion that's versus expectations of $12.6 billion. looking at the q4. they are calling for between 81 and 83 cents versus expectations
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of 85 cents. and revenue they say has grown between 6 and 8% s that versus expectations of 5.5% heading into this print the stock rallied 15% over the past three months giving back some of that initially here in the after-hours. back to you, wilf. >> josh, 10% growth in product orders looks like the highest growth rate in almost a decade. is that the macro environment that's helping cisco or is it something specifically they are doing to cater to this new hybrid work environment? >> no. there is a -- from the ceo saying he calls this a great quarter with strong demand across the business. he said he's confident in their strategy, their ability, he says, to lead the next phase the recovery as our customers accelerate their adoption of hybrid work, digital transf transformation, cloud, and continuing trong uptation in our subscription-based offerings when you talk to bulls on this stock they are going to point
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out the reason they tell clients to commit capital to this business because they like the management team, they are offering critical tech, they see attractive valuation i think on the call you are obviously going to have questions about the guidance, it starts at 4:po eastern. >> also don't miss james cramer's interview with cisco's ceo tonight on mad monday coming up at 6:00 p.m. as always. josh, quick word on cisco and that type of old tech? >> my favorite old tech name right now is not cisco i think oracle is a lot more exciting and they further along on the recurring revenue business model transformation than cisco is. so if i have to own a low growth '90s era tech giant that hasn't done a lot lately, oracle over cisco. >> i wonder if they are going to get questions on the guidance of
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whether the supply component shortages played a role. xi, i wanted to give you the final word we didn't get to talk a lot about target but an important barometer and consumer spending. that stock did well but the xr retail etf dropped we saw stellar results from macy's and walmart, and home depot and the retail etf was lower. what does that tell you? a a lot of that good news been priced in already? >> i think -- certainly going to take retail higher it is just -- you know, in the beginning. so there is more opportunities there. and i think a lot of the investors who were previously focused on technology are now seeing underperformance this year and going into these other sectors. >> we will leave that conversation there still like the retail. it was down 2.3% josh, xi, tom thank you for joining us.
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tech stocks staging a late day comeback nasdaq closing almost fat. up next, dan niles, on whether he thinks the turnaround is a head fake. and mike santoli on whether he thinks the decline in the economic surprise index is a red flag oh, i am glad he did this. i was going to mention it. we are back in just 90 seconds with one companion that hedges the risks you choose and those that choose you. the physical seam of a digital world, traded with a touch. my strongest and closest asset. the gold standard, so to speak ;) people call my future uncertain. but there's one thing i am sure of... 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
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out some gains in the close. let's bring in dan niles great to see you again. >> good to see you, too, wilfred. >> general market questions to begin with and i guess the fed minutes today might be added interest for your view on this. but the biggest risk to markets is what? and what sort of time frame are we talking about in terms of when it might lead to a bigger pullback >> i mean, i think the number one, two, and three concerns on the market are inflation, inflag infl inflation, and inflation that's pretty much what you have to be focused on, because with valuations sitting at record levels, you know, if the fed is forced to do something it doesn't want to do, like taper before the end of this year, that's going to have a really big impact on equity market multiples. we tweeted out something on that this morning whether we were looking at the 1970s we said you know, history may not repeat, but it often rhymes,
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which is a famous mark twain quote. if you look at that chart, which you hopefully have, what you can see is that even though you had 50% earnings growth between 1972 and 1974, because inflation was really picking up, you had the stock market from peak to trough drop close to 50%, quite 50% earnings growth. and that was driven by inflation. today you are starting with trailing p/e multiples sitting at 30 times, not 20 times. so the risk to the downside if something goes wrong and they are wrong and it is not transitory, which i don't believe it is, that's going to cause a much bigger issue given the levels we are starting at for valuations >> but i guess the pushback on that, dan, would be to what extent is some tapering by the end of the year, already basically expected by investors? we are not talking about three rate hikes by the fall >> well, you don't have any idea i mean, right now, you have got
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cpi -- the month-to-month increase in cpi was the fastest since 1982 that number is sitting 359% year over year. we haven't even fully reopened yet. i haven't been on an airplane since january of last year i just got my vaccine two weeks ago. my kids last week. now we are sitting where are we going to go? it is going to increase demand for oil as factories open back up as well as start going places you are going see demand surge at the same time you have had an underinvestment in capacity arguably for the last decade because it has been the slowest recovery since a recession since world war ii we averaged 2.3% gdp growth from 2010 to 2019 so all of those things come together into whether you think inflation is transitory or it is going to be more persistent. for those reasons of
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underinvestment combined with the best gdp growth, the global economy this year at 6% since the 1970s, i think you are going to see a much bigger inflation problem than the fed is counting. >> why in everything you just said would actually also be an argument for why it's transitory and that is we are seeing some extreme circumstances coming from some extremelydeflationar and economic shock circumstances of the pandemic, and this great reopening and this surge in demand and your family wanting to go out and travel -- it is not going to be permanent, right it is not going to lead to multiple increases for years of dangerous style inflation that the fed might have to get out in front of a lot of it is distorted >> remember, we haven't started traveling yet. we have already got very high inflation. the question is what happens when not just us but everybody around the globe -- >> many people have. >> but a lot of countries have not, right you look at the emerging markets
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who are really still fighting with this. my point being is that some of what we are going to experience is because of what happened over the last decade, which is very, very slow growth companies also, if you look at their balance sheets, they have levered up with a lot of debt because interest rates kept dropping, dropping, dropping because the fed has artificially repressed dates. companies have done what's rational buy back shares, take on a lot of debt. make acquisitions, put out dividends that may or may not make sense that's what you do in an environment where rates are artificially low and you are getting rewarded for excessive risk taking. i think that environment is going to change. we are seeing signs of it. everybody says it is temporary, et cetera. but if you look back at the 1970s, nobody thought that was going to be as bad aeeing
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is not just because of the pandemic this is because of what happened over the past decade that is going to start to catch up with you finally. th analogy, you smoke three packs of cigarettes a daly that's goih up to you. i think that's where we are right now. 12 years of easy money policy and it is starting to catch up the problem is, it's inflation that's your red flag. >> let's talk about the at&t/discovery merger. th merger it was announced only a couple days ago tells like it was last week but it was only a couple days ago. what have you done off the back of that? you tweeted out some things? you are warming up to buying discovery, but not yet >> for us, stepping back for a second -- what we like in this tape, there is a lot of stuff we do lik but we are trying to stay with
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value names. for a lot of the quote, unquote, sexy themes as sara puts it along with when we were talking about oracle a few interviews back we like oracle for cloud at 17 times. we like magna international for electric vehicle play at 1 times. for your question on at&t and discovery, you know, we like streaming but we are playing that through viacom, that's trading at ten times you know, i think what you are going to see is what at&t did with discovery -- our issue with at&t and why we blew out of it and why we put out that tweet is because they are cutting their dividend by 45%. increasing their capex by $2 billion. that's not good by that k. i am rarely seen companies cutting dividend that much and it going well we look at cnbc, amazon is out there, it is out there ther mgm studios. i think you are going to see
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more consolidation as companies like apple, koms cops like comcast, potentially facebook, they all go wait a minute, all the content creators are getting taken off the board. we need it either for our streaming ambitions or engagement with customers. we should look at some of that, too. for a company like apple that honestly has a pretty pathetic library of content for their streaming service, you know, this would make a lot of sense for them i think that's why we like streaming, but we like it at ten times. discovery, the problem i have with that one, as i put out in my tweet under @danielt files is at 5 times net eedit about, that's better than 2.1 times way less levered i like less risk if i can get reward. >> nothing sexier that are than
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erickson and nokia i made fun of you for oracle last year. it has been a big hit. a big win. we always appreciate night thanks, sara. to mike santoli now for a look at the economic surprise index, mike, which i was watching it is hitting multimonth lows. how worrisome is that? >> interesting the historical context marrieds. you know i always try to anticipate exactly what you are looking at this is the longest streak ever that this surprise index, which means that basically economic data is coming in ahead of expectations, when you are above this line. the longest time ever it has actually been in positive territory. we are on the verge of kind of going back to zero or maybe negative all that really means is that the forecasts casualty up to the reality of what the economy is doing in the data. the prior time that was the longest streak, which was not nearly as long ended herein sort of mid 2018 now in itself you would say that wasn't a really bad time for the
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economy but the markets were getting nervous about getting late in the cycle. the fed was in in the auto pilot tightening mode. i don't want you want to generalize from that because look at the shape this chart relative to everything that came before we might be in a stutter system for economic growth. maybe don't anticipate that the economic numbers are always going to be shiny from here on out, sara. >> or the economy just bot overly bulled up and the economy has caught up. >> yes, could be. >> mike, thank you you nailed what i was expecting from you good job l brands earnings are out. let's get to courtney reagan with the numbers >> hi, sara. it is a beat for l brands. when we are look at the earnings per share coming in at 1.25. the street was looking for 1.21. revenues in line at $3.02 billion. the street's consensus was $3
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billion. and the company did preannounce preliminary results on may 11th. the second quarter earnings range of 80 cents to $1 is above the street's expectation at 76 cents. if you look at the comparable sales number, this is both for stars and on line in total for both brands, grew 21% in the first quarter. victoria secret leading the way with 25% comparable sales growth remember, we are comparing it to a quarter where most stores were closed last year and you could only order on line bath and body works first quarter comps up 16% and last quarter -- last year this quarter, the comp sales were up 41%. they were able to stay open because they sold hand sanitizer and soaps. the company also talking about the new cfos that will take over each of the brands upon the completion of the spinout of vic victoria's skpret. wendy articlin will be the bath and body works ceo and jim johnson will take over
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as victoria's secret ceo when that spin out is completed target, august 2021. shares of l brands now down over 2% in after-hours. back to you. >> courtney reagan, thanks. up next, bitcoin investor brian kelly buying more of the kk during today's selloff. why weez not worried about the outlook. plus, glenn young kin on how president biden's proposed corporate tax hike could hit the etndthe economy. much more to come on "closing bell" today.
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a roller coaster 24 hours for bitcoin w the crypto plunging as leez $30,000 this morning. the move comes as china bans financial institutions and payment companies from providing crypto-related services. bitcoin-related names finishing the day lower including micro strategy, coinbase and tesla which last week announced it would suspend cryptocurrency purchases. brian, i know you are a long time bitcoin bull. did this feel normal for you? it
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did not feel normal for a lot of people new in the currency and trading bitcoin to have a 30% move lower >> even for a so-called grizzled veteran like myself, a 30% move in aasset class certainly wakes you up in the morning when you see it there is a couple of things that happened here. primarily the biggest parts this selloff was due to margin calls and liquidation. and the exchanges couldn't handle the volume. they effectively stopped trading and it cascaded down on days like today i always ask myself has my thesis broken? for me what is driving this market is institutional adaption and a hedge against currency debasing none of those things changed at all. i have to say, no, my thesis isn't broken this is just a mechanical selloff that goss exesser baited and i want to be a buyer >> governments and central banks
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may not like the currency debasement argument for bitcoin. and overnight, the ecb came out with its financial stability report, brutal assessment of bitcoin, saying it is worse than tulip mania. doesn't it show how vulnerable bitcoin and others are to governments and central banks making comments and potentially taking snooks forgive me if i cast a side eye towards central banks saying that a currency other than theirs is not great that's like asking a border, do i need a haircut of course you do what i would say about that is absolutely, you know, it is -- there is a threat to central banks. they can stop debasing their current see any time they want bitcoin doesn't have to be a threat it can be embraced just like gold was what china is probably is more predicated on the fact that they
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are launching their central bank digital current lee, the rmb and they wanted to make sure everybody is going to use the digital rmb. once they have that, there is no reason why they couldn't turn these things back on it happens to be the ramp into it is the digital rmb as opposed to something like tether. >> what is your take on the level of influence that elon musk clearly still has over bitcoin and other cryptocurrencies does it not make the price of bitcoin very vulnerable in the short-term at least even if your thesis is on point for the long term >> yeah. i mean, market action would tell you absolutely and i think, you know, bitcoin has to survive this. the entire point of the creator, is a attorneyy knack moto getting out of the way is that there would be no single person that has control over it, either
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the protocol, the code, to the price. now we have elon musk who voiced some concerns. it did move the market but bitcoin has to get over it if in the long run it is going to fulfill that promise of becoming a global currency i happen to think that it will i happen to think we have seen this multiple times through multiple cycles. and every time bitcoin has just come right back. as they say in the bitcoin world, the honey badger don't care that's kinds of how bitcoin has been that's why i felt comfortable today stepping in and buying it. for this thesis to play out it has to get over what elon musk has to say. >> quickly w that in mind, if it is vulnerable in the short-term, how worried are you by the look of the chart because this asset more than many others does get influenced by technicals, all the bulls and the bears look at the tech knickcals of bitcoin, not necessarily the fundamentals in the short term if there is
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vulnerable are you worried about the massive ramp unraveling and quite a loss potential for the short-term >> look at price action. bounce offed $29,000 it was massive support area. and bounced off that with big buyers fundamentally this selloff at $29,000 created a huge buying opportunity for the fundamentals side the market is pricing in a 30% decline in addresses one way to think about that is like maus for facebook they are -- the market is implying a 30% decline in that yet addresses are growing or flat to me, fundamentally, we haven't seen a opportunity like that since march of 2020. that's what today reminded me very much of i look at both the chart and the fundamentals and this actually looks like a pretty decent buying opportunity. >> for all of them bitcoin, ether, doge did you buy them all today >> doge, probably not.
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doesn't mean that i don't like doge it can got to moon literally or not. i bought bitcoin today ehere up why i bought a couple of the other smart contract platforms because there was all a marginal liquidation that has gone crazy, which is normal in bitcoin it has to mature it will mature but that's part of the thesis. brian kelly, good to talk to you. nice the see you it has been a while. >> always good to chat with you. still ahead on the show, oatly could price its highly anticipated ipo at any time now. weill in wbrg you that as soon as it is announced we'll be right back on "closing bell."
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welcome back stocks pulled back for a third day in a row time now for a cnbc news update with shepard smith. >> here's what's happening at this hour from cnbc. financial reform may finally be coming to pestal office. there is bipartisan support for a bill this the senate leaders say it could save the post office $30 billion over the next decade and improve accountability standards for delivering the mail. tens of thousands of people with little or no water pressure in jackson, mississippi, where two water wells stopped working. there is a boil water advisory for more than 2,000 people residents can pick up drinking water from the local middle school theological public works director says the problems could go on for days with some fixes possible by friday.
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a huge day in new york city and the surrounding tri-state area new yorkers and their neighbors ditching their masks with new state rules. no distancing, no capacity limits, no restrictions. but some businesses are still asking customers to mask up. tonight getting facebook normal, mostly we will hear reaction on the streets of manhattan right after jim cramer on the news, 7:00 eastern, cnbc. >> thank you very much we look forward to that. up next on "closing bell," glenn young kin, on whether he thinks extended unemployment benefits are hurting the labor market atnducmo uneth a mh rep xt [wrestling bell rings] [music: “you're the best” by joe esposito] ♪ try to be best 'cause you're only a man ♪ ♪ and a man's gotta learn to take it ♪ ♪ try to believe though the going gets rough ♪ ♪ that you gotta hang tough to make it ♪ ♪ you're the best! around! ♪ ♪ nothing's gonna ever keep you down ♪
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a well-known name on wall street is making a play at politics formercal carlyle group co-ceo glenn yunk young kin who stepped down last year is currently running for governor of virginia as a republican. good the see you now why? a republican has not won since 2012, 2009, maybe? and the economy of virginia is starting to boom the unemployment rate is lower than the national average. the government has given $4
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billion of aid revenues are improving why do you think you have a shot >> well, first of all, thank you for having me. and why is because i don't think that virginia is in fact booming. as of last summer, i was so frustrated with what i saw the leadership in virginia, the mccollough northam back to back administrations leading virginia into a big ditch one of the challenges we have is right now while most of the country is seeing job recovery, virginiament is. we only recovered 45% of the jobs were lost during the pandemic texas is at 80% of the jobs that were lost. over the last eight years our competitive states, tennessee, south carolina, and west virginia and particularly the ones to the south of us created
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many more jobs than in virginia. i was frustrated with what i saw happening in virginia, and frustrated that the republican party has indeed not won since 2009 i thought there was a different way to do this i am a different kinds of candidate. i am a business guy. i am not a politician. i have a different view of what good or great looks like i think virginia is neither right now. it should be i also have a different view how to run we had a great campaign for the nomination, which we won last week now we are winning statewide we hope to win and expect to win statewide against really career politicians that are going to bring the same kinds of answers that failed virginia historically that's why i am running. >> let's talk jobs for a moment. that is part of our platform and clearly you are a business guy. a number of states, texas, oklahoma, indiana are now withdrawing from the bump up in unemployment benefits, the extra
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$300 people get. also they are withdrawing from giving it to freelancers, part-timers, the pandemic related unemployment because they say there are enough openings and want to incentivize people to get back to work is that something you would do as well? >> i am traveling around virginia right now and speaking to employers what i am finding is that the jobs have not come back as fast in virginia because of our democrat leadership. sadly, our state has continued to be closed much longer than it ever needed to be. let's just remind everybody that in march virginia was ranked 50th in freedom. i am going to say that again we were ranked 50th. our schools continue to have limited in-classroom education florida has been teaching five days a week in the classroom since last august. and as of a few weeks ago, virginia was still 70%partiall or fully closed to classroomed a indication businesses continue to be restricted we have restrictions on
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gatherings the challenges we have in virginia right now is that our democrat leadership has continued to restrict the opening up of our economy. i wouldn't want to pull the rug out from under anybody but i also think we should incentiviz people to go back to work. i am talking with employers and talking with employees the number one thing is to get virginia open and the economy moving so that the jobs will in fact come back so people have a chance to take them. >> glenn, a lot of president biden's tax plan is rather framed as being redistributive as opposed to just raising money to pay for infrastructure. what do you think about that mentality? clearly, you are incredibly successful, do you think the rich should pay more because
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they are well off or do you think any tax rise at the moment is no right? >> any tax increase right now is not right. i think it is a sure-fire way to dampen if not smoother or economic recovery. you know, i think the economic plan that has been put forth out of washington in fact is a flash in the pan economy what we are seeing is false demand we are not seeing a durable economy. we are seeing inflation. and this is not -- this is not a long term economic plan. what we absolutely need to do is make sure that we have successful companies that can hire people for the long term. we need to get our -- i am looking at virginia today, as i said, we absolutely have slower job recovery with fewer of the jobs come back than went away relative to all of our competitive states and this is the challenge that we've got. you can't have a covid spending bill that actually has so little
quote quote quote
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covid on it and is focused on so many other things. you can't have an infrastructure bill that has little infrastructure and is focused on other thing. the focus for us is that fiscal discipline has been totally lost we are ending up with inflation and permanent long term debt as a result we are going to struggle economically long term. >> glenn, quickly, while we have you, i do want to get your thoughts on cannabis virginia is the first southern state to legalize cannabis starting july 1st virginiians can hold fall amounts and cultivate four plants at home are you on board with this if you were governor would you open up the state toward legalization >> it is been passed it is going to be another problem that's going to be dumped at my feet.
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i would tell children, don't use it but the reality is that the industry that everyone used as the rationale for legalizing it has not performed in other states they have already predicated a bunch of spending on it. the reality is i am going to have to deal with this when i am governor it has been passed i am going to have to deal with it and i think it is going to be a mess my 30 years of business experience has prepared me to clean up messes. this is why i am running because i think there is a lot of them that need to be addressed in virginia and that's why virginians are excited about me running. i have a ground swell of support, republicans, democrats, and independents who say we are ready for an outsider, somebody who is not a politician, somebody who can get things done. >> you ined a vert ntly framed your group as cleaning up messes rather than investing in well
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run businesses. >> i said i can clean things up and deliver results. and i have a lot of messes in virginia that i am prepared to clean. my experience in carlyle was based on building business and growing. that's what virginia needs as well we end up with recognition from virginiians that they want a real leader, somebody who can deliver results and who otherwise -- we are out of time got it it was a very different interview than we are used to with you, glenn young kin, somebody who ran one of the biggest private equity giants and has been groomed for that job a long time. thank you for joining us keep us posted on the race. >> thank you for having me i look forward to seeing you again. another plant based company bracing to go public oatly. we will bring you a preview next
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that building you're trying to buy, - you should ten-x it. - ten-x it? ten-x is the world's largest online commercial real estate exchange. you see it. you want it. you ten-x it. it's that fast. if i could, i'd ten-x everything. like... uh... these salads. or these sandwiches... ten-x does the same thing, but with buildings. sweet. oh no, he wasn't... oh, actually... that looks pretty good. see it. want it. ten-x it. yum!
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we are awaiting oatly's pricing due out any minute leslie with what to watch out on that one, leslie >> that's right the oat meal maker seeking $10 billion value asia comes tomorrow, tailwinds such as backing with oprah and new partnership with starbucks and prospect of expanding to asia. it also has head winds as well as current market environment punitive to riskier pockets in
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recent days and weeks, of course the major joor thing it has going for it is esg. we found the 12 ipo's in the last year with a clear esg bend jumped 45% on average in their debut more than 8% higher than their non-esg counterparts guys >> leslie picker keep us posted. thank you. up next investors will eye jobless claims tomorrow morning, key number to watch. and biggest after-hours mover, shares of cisco and l brandeds falling, despite both companies beating the top and bottom lines. question about cisco guidance down 6.3%. "closing bell" will be right "closing bell" will be right backet events before they happen... and insights on every buy and sell decision.
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up next, the key earnings to watch tomorrow morning back in a couple
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no, i would miss them too much. whatever you business is facing... let's workflow it. servicenow. to our wall street look ahead, tomorrow, jobless claims, looking for 452,000 versus last week 473,000 first time below 500 since the pandemic we will hear from kohl's, ross stores and paloalto. the retail earnings are interesting, mike, because they are very, very strong and stock price reactions have been mixed. >> yeah. >> it does feed into this debate about is as good as it gets.
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an what did happens when the fiscal stimulus wear off. >> markets are except incomp skeptical. yeah, everyone's asking did we just see the peak of the good stuff getting bet er. >> we're out of time on "closing bell." "fast money" starts now. i mean, melissa lee and this is "fast money", tonight's trader lineup, karen finerman and steve will join us shortly. in chartmaster will break down what to watch, s&p now down every day this week. plus earnings alert on cisco, shares lower after-hours, the company's call now under way, and later a trade alert in the medals market, one hitting buy button on this key commodity id and we'll bring the name and trade. starting with crypto market it was gut check for bitcoin, ether,

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