Skip to main content

tv   Squawk Box  CNBC  July 1, 2021 6:00am-9:00am EDT

6:00 am
breaking overnight xi jinping said anyone attempting to bully china, in his words, would find themselves on a collision course with the great wall of steel. we go live to beijing. cue the doughnut counter sorkin, we have the first interview with the ceo before the first trade. a record nine it needs to be ten >> i don't think he has ever done double digits. >> guy who eats hot dogs joey chestnut? >> yes very good. >> it is july 1st, 2021. "squawk box" begins right now. good morning welcome to "squawk box" here on
6:01 am
cnbc i'm becky quick along with joe kernen and andrew ross sorkin. these are the doughnuts you can eat. >> glazed doughnuts. >> double digits >> not national doughnut day, but close. >> all right let's take a look at the stocks this morning it is the first day of the third quarter. before we focus on that. a market recap of the second quarter. dow was up 4.6% for the quarter. 12.7% for the first half s&p was up by 8% in the second quarter. more than 14% now year to date the nasdaq was up 5.5% for the quarter and 12.5% for the first quarter. what do things look like after the gains? lots more green arrows u.s. equity futures at this hour dow up 80. they were up triple digits this morning. s&p futures are up 5.5%.
6:02 am
nasdaq actually turned negative. down 6 points right now. look at the treasury market. if you are watching the 10-year which we watch every morning right now, the yield is 1.481.4% the big winner is leading the "squawk stack" which is the russell 2000 this is the first ever winning streak for the russell dow picked up ground 2.6% on pace for the six-day winning streak right now that is the reason we have seen the collapse with the commodities. lumber popped this month down 40% for the month of june worst month back to 1978 gold saw the worst month since 2017 then wti that has been defeating gravity.
6:03 am
defying gravity at this point. best quarter since the second quarter of 2020. joe, for the first half, wti, up by 51% keeps climbing as we get into driving season. >> transitory. not to worry. >> maybe it is a pig the snake is eating. a pig or a mouse >> they eat a lot bigger things than that. >> a cow >> i heard yeah scary. has china been bullying lately if you are thinking about it, don't. china went be bullied. that was xi jinping's message in a speech overnight eunice yoon joins us now with more fill us in, eunice good day >> reporter: joe, today was an important day for china. xi jinping was projecting
6:04 am
strength on this 100th anniversary of the founding of the chinese communist party. xi jinping warned in the speech that any foreign force attempting to bully china would quote find themselves on the collision course with a great wall of steel forged by china's 1.4 billion people his tough talk matched the show of force we saw today. a lot of military hardware at this event which featured a flyover of military choppers and stealth fighter the j20 xi jinping pledged china would build up the military. he reiterated the unification of taiwan and stability of hong kong he hailed a new world order. security in hong kong is very tight. the city has an anniversary of its own. the 24th anniversary of the hong kong handover.
6:05 am
normally on july 1st, every year, the city holds a peaceful demonstration to mark the occasion authorities are not allowing this year citing pandemic restrictions activists believe the authorities want to clamp down on protesters. for the past year, the national security law in place and the city rounded up a lot of opposition and critical voices of journalists as well as you know, the pro democracy paper "the apple daily" was dismantled some executives released on bail and others still detained. since then, "the apple daily's" parent will stop operations today. there has been a chill cast on a lot of the other press some of the smaller independent papers have been taken
6:06 am
precautionary measures saying they will relocate servers and suspend donations until they can figure out what to do next guys >> a lot of interesting things and thoughts as you were speaking, eunice in the old days, the cold war, it was all soviet union. trying to limit nuclear weapons. china was in the background with the super powers where do you get power you get it from economic strength and soviet union, russia, the former soviet union. the big shortfall there with the world stage. the opposite of china. economic power that you can't possibly minimize or not understand how great that is and where does it come from? 1.4 billion people to work in a single-minded way and it will happen i hear him
6:07 am
we do respect him, but a problem with a lot of things china is doing. this is setting up some interesting years ahead. >> reporter: and joe, i think a lot of people here are worried about where president xi jinping is taking the communist party. it has evolved a lot since it was founded in 1921. he started with a bunch of revolutionary folks and then eventually had to make some changes after chairman mao with his one-man rule created a lot of the disasters here like fam famine lots of people got rich quickly with the economic power. then now president xi jinping is moving the party back into one-man rule with his personality cult around him. there's been so much propaganda
6:08 am
about mao and how similar president xi is with mao a lot of questions here as to whether or not one-man rule will be good for the country. it wasn't so good in the past. >> eunice, a lot of written in the journal. milton freeman said this is a great power. china the company is more capitalistic human rights, by definition, will flourish. the point of the piece in the journal, that has not happened the country has flourished, but not at the same time with opening up the west in terms of human rights and freedom and privacy and everything else. it's an enigma actually smart calling it an enigma enigma wrapped in a riddle, right? >> reporter: a lot of folks
6:09 am
overseas and within the united states or west at large who would say that it was kind of a mistake on the part of the west. they miscalculated they thought that china would eventually be more open politically as it became open economically as you noted, that hasn't happened we saw some of it in terms of the internet opening things up a lot of people here do want to have more and more rights. if you talked to people privately, they want to have more open discussions. you know, in terms of what president xi thinks is the best to make china great again, that he apparently does not believe that is the best way forward for the country. >> that's interesting. >> eunice, what do you hear from u.s. business leaders or at least leaders of businesses that
6:10 am
are headquartered in the u.s., but do a lot of business if wh in china? do you hear anything that they will leave or they are trying to have conversations with the government is that even on the table? >> reporter: they are always having conversations with the government i don't know of many companies or business people who believe that the chinese consumer is their future actually thinking of leaving the strategy has been changing where maybe they're trying to buttress their business better to have more operations here and instead, setting up manufacturing facilities where they will sell into the chinese market and having their china business which is hyped open
6:11 am
f off from the rest of the world it is a delicate dance you see foreign companies and chinese companies really looking closely with government policy i think you saw that with didi it was interesting they said they will push ev. >> you see it? you see what john donahue said this week? we are a brand of china and for china. that's your businesses taking the moral stand against it can you say nba? how does the nba think about china? >> we had that interview with joe a week and a half ago where we he put the question to him. clearly, he supported the chinese government as i think we all imagined he probably would the question is can you -- is there some kind of constructive engagement going on behind the scenes clearly if you come out publicly
6:12 am
and say something negative, you can't have that engagement behind the scenes. i don't know there is that engagement behind the scenes >> after looking at the last couple decades, it doesn't seem like there is a lot of conversation behind the scenes taking place >> money money. money. thanks, eunice we will talk more with kyle bass in the 8:30 hour he will talk about his views on what china is up to. up next, a lighter story, andrew >> up next, i promise you. nothing will glaze over. if you get the pun there krispy kreme returning to the public markets today after five years in private hands we will get you ready for the ipo and maybe eat glazed doughnuts as well. ipos check out didi speaking of ipos.
6:13 am
they closed yesterday. $14 per share and they closed at $14.14 the market cap of $67.8 billion. we areig bk teth rhtacafr is >> announcer: this cnbc program is sponsored by truist wealth. we focus on person to person connections so you can focus on what matters most. designed a first-of-its-kind, personalized education center. oh. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now you're binge learning. see how you can become a smarter investor with a personalized education from td ameritrade. visit tdameritrade.com/learn ♪ visit tdameritrade.com/learn ♪ ♪ ♪ digital transformation has failed to take off.
6:14 am
because it hasn't removed the endless mundane work we all hate. ♪ ♪ ♪ automation can solve that by taking on repetitive tasks for us. unleash your potential. uipath. reboot work. keeping your oysters business growing has you swamped. you need to hire. i need indeed indeed you do. the moment you sponsor a job on indeed you get a shortlist of quality candidates from a resume data base claim your seventy-five-dollar credit when you post your first job at indeed.com/promo - grammarly business turned my marketing team into rock stars. (diana strums guitar) maya swears by gramrly business because it keeps her work on brand and error-free. fast and easy. - [announcer] learn more at grammarly.com/business. ♪ when i was young ♪ no-no-no-no-no please please no. ♪ i never needed anyone. ♪
6:15 am
front desk. yes, hello... i'm so... please hold. ♪ those days are done. ♪ i got you. ♪ all by yourself. ♪ go with us and find millions of flexible options. all in our app. expedia. it matters who you travel with. talk to me. what do we got? when you have xfinity xfi, with blazing speed... expedia. [ screaming ] a powerful connection. that's another level.
6:16 am
and ultimate control. power us up. you can do more than you ever thought possible. yes! hold on. get a powerful and secure connection you can count on. only with xfinity xfi. and see f9 only in theaters. ♪ ♪
6:17 am
welcome back the company ceo will join us in the next hour from krispy kreme. we have leslie picker with us to talk about the doughnut pick these doughnuts have a special place in my heart and stomach. maybe not in the eyes of investors, oddly enough, right >> yeah. you can't always square your appetite with what is going to happen in the markets. krispy kreme returning to the public market today after five years in private hands the 84-year-old doughnutmaker surprised shares below the market value at $17 each they sold more stock than expected for an offering of $500 million. the price implies a market cap of $2.7 billion. that is double what the investment firm paid when taking krispy kreme private in 2016
6:18 am
to some, lower than expected pricing may not come as a surprise here. the company managed to grow the top line 15% last year evolving the business to focus on hot theater shops and delivery its net losses widening and consumer taste shifting to healthy options in recent years. krispy kreme is debuting in the market that is as open as it has been in the ipo world. on the heels of the hottest quarter for ipos in two decades. krispy kreme set to trade on the nasdaq under the symbol dnut andrew >> leslie, we will talk to the ceo in a bit in terms of the growth story, how much of it is u.s. versus international at this point? >> it is mostly u.s. at this point for them i'm under the impression you will be at one of the new experience shops
6:19 am
delivery has been primarily u.s. focused venture for them they tend to be more focused on the u.s. >> and is the free doughnut for your vaccine card. is that deal still open for business >> that is a good question i did not see that mentioned in the first report you have to go and ask them today. something tells me you get free doughnuts regardless of vaccination. >> leslie, thank you great to see you our interview with the ceo coming up in the 7:00 hour new this morning, capital is out with insight on board diversity. it is part of the racial equity tracker. the largest 100 u.s. companies
6:20 am
have 30% on the board. we have allison here with us allison, this is a fascinating report if you are a business leader today and you are thinking about diversity and diversity goals, if that is something that you are pursuing, what are you trying to match? are you trying to match national average for diversity in the cou country? to your local region local city how should they think about this >> thanks for having me. it should be a goal. as we know a lot of work has been done that shows diversity from the board level to the work force is a critical part of the business strategy. in terms of what we should be matching to, i think the picture, overall, is important to be looking at with the complex world. diversity is a critical part of this the demographic make yup is non
6:21 am
white. when we think about diversity, we should think about racial and ethnic diversity and gender diversity. all of the ways we understand diversity to be advanced value the critical part here is americans really believe in divers diversity. we have seen from extensive polling from the american people there is a real expectation of companies taking these questions into account as they are making decisions about directors or work force composition all of the elements that make up the equipment to equity. diversity is an important place to start >> alison, i know your study looked at boards of directors. other studies that show boards of directors that are diverse doesn't necessarily reflect what
6:22 am
is happening at the management level or within the company. >> yeah. it's true. what we're looking at in this case is both transparency as well as diversity composition. the transparency of companies at the board of directors level is 83 of the 100 largest publicly traded companies in the u.s. the transparency number is 20 points higher than where companies are in terms of transparency on the work force demographics board of director is higher than the composition overall. i think that is an important point. we can't be separating these issues saying that only having a board of drdirectors whic diverse is enough. one of the leadership examples is starbucks under the leadership of mellod hobson here. in addition to that, starbucks
6:23 am
is a leader on equity overall. they have tuition reimbursement policies they have pay equity policies. they have community investment the point is this is not one separate issue, but the sum of the parts. that is what just capital is trying to do understand across dimensions what performance looks like right now and how in the future what that should be and what companies should be striving for. >> final question on disclosure. obviously a decent percentage not disclosing when you call those companies, what do they say >> you know, there's a range of things i want to say that 883 companies today. two years ago it was 45. it doubled nasdaq announced expectation for new listing. state street goldman. the trend is very much moving
6:24 am
toward disclosure. i expect that number to increase not enough among the 100 largest publicly traded employers, but the russell, which is another universe we're tracking in the future i think this is at the beginning of the story and the expectations from workers, consumers and investors will increase >> alison, i appreciate it thanks so much >> thank you when we come back, exxon's ceo apologizing after who lo lobbyists were caught on tape dismissing the climate change. and speaking of oil companies. four of the five s&p gainers are energy names not surprising given that wti was up 51% in the first half marathon oil, the biggest of the gaer up ins,by more than 100%. "squawk box" will be right back. ♪
6:25 am
when technology is easier to use... ♪ barriers don't stand a chance. ♪ that's why we'll stop at nothing to deliver our technology as-a-service. ♪ frank doesn't need a posh virtual receptionist, to deliver our technology because he cloned himself. while his clone does reception work, frank can go to meetings. visit a job site. and even finish work early. you look really lovely. frank? frank...i trusted you! but if cloning isn't right for you, just get posh. virtual receptionists who can answer and transfer your calls, because you can't be in two places at once.
6:26 am
salute to veterans independence day terry bradshaw: hi, i'm terry bradshaw rocky bleier: and i'm rocky bleier. col. greg gadson: and i'm col. greg gadson. terry bradshaw: on this independence day, our heartfelt thanks, to all of our military veterans for their service. col. greg gadson: we honor our veterans, and those who are no longer with us. rocky bleier: to all of our military serving around the world, thank you for defending the many freedoms we enjoy. terry bradshaw: tune in to salute to veterans for discussions about the issues our military veterans face daily. salute to veterans presented by sap, navy federal credit union, verizon visit us online at www.salutetoveterans.org
6:27 am
6:28 am
exxon mobil ceo apologized yesterday after comments from two loblo lobbyists in the videos, the lobbyists dismissed the company position on climate change. called it an easy talking point because it is unlikely to be implemented. exxon did not do anything illegal. exxon's ceo said the views expressed by the lobbyists were not the views of the company and were not part of the issues they discussed. it puts the company in a tricky position given the latest routing they took at the shareholder meeting.
6:29 am
they lost three seats. >> one side stick tod your guns you are an oil and gas company the other said you willingly damaged the earth for the past 30 years they can't win i'm not shocked at the story, to be honest. coming up, 58% of the respondents in the cnbc quarterly stock report said oil is the favorite inflation trade. dirty oil. we'll talk crudely no, we'll talk crude next. not crudely. here is a look at the s&p 500 winners and losers as we head to break. >> announcer: executive edge is
6:30 am
sponsored by at&t business our people and network will help keep you connected let's take care of business. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, asap! so basically i can pick the right plan for each employee... yeah i should've just led with that... with at&t business... you can pick the best plan for each employee and only pay for the features they need.
6:31 am
girls... the chess club has gained an edge on our bake sales. we need more ways of connecting with customers, fast. i know some consultants with great ideas. can they help us improve our digital experience? absolutely. they've invested over $2 billion in tech. that could really help us manage inventory. and save us a ton of dough. then let's take back our market share. checkmate, chess heads. girls, i said “bedtime”!
6:32 am
welcome back to "squawk
6:33 am
box. let's talk oil opec is meeting virtually today along with russia and a few other producers. they will address the surging price of crude which doubled in a year they will talk about adding more to the market and if so, how much brian sullivan is back with more brian, you don't think there will be a huge amount of oil added. this is going to be a little bit even in the face of the surging prices >> that's right, becky it is funny to think 500,000 barrels a day is a little bit. given surging prices and demand goes hand-in-hand. we have the opec meeting starting now the opec plus russia and others starting later on today. here are the themes as becky noted. 500,000 barrel a day increase starting in august that is what they are looking to
6:34 am
do that's the expectation of goldman sachs. you heard that in wex earlier. what are they seeing from global demand you have covid the delta variant in latin america and lockdowns in australia. they are watching u.s. demand. we continue to soar. 2 million people a day ygetting on airplanes gasoline demand is key watch the estimates. in the past year, opec has done something it has never been able to do. that is under the leadership under salman that is the cheaters prevented to pump too much we are looking at you, iraq and nigeria. the countries above quotas they have been held and constrained. then the iran factor
6:35 am
will iran come back to the market if so, how much can iran put on the market you heard goldman sachs say they could throw 1 million barrels a day, but it won't matter we have a 2.2 million deficit. citigroup coming out we believe global oil fundamentals should be robust enough to justify an owe peek plus outputin crease in august and to account for the summer driving crude prices from here d becky, prices doubled in a year. you may not care about oil, but gasoline and gas prices. i hear $4 and change in certain parts of the country again, we are looking at you, california >> highest national average we have seen in seven years above $3 on national average brian, yesterday, we spoke with john kildoff
6:36 am
he said it was 1.5 million to 2 million shortage before anything reopens. that 500,000 barrels a day is not going to do anything to satiate this need. the bigger question is what happens with the shale producers in the united states you could turn the spigot back on that is not the case so many got crushed over the last year and a half >> that's right. there's no indication that demand and production is coming back online, becky you noted we are up 300,000 barrels a day in the permian basin. guys go out and start drilling wells. production was 13 million per day. we are still below opposite has happened. a story last night on reuters. i can confirm the details.
6:37 am
chevron is looking to sell shell is selling out of the permian basin. bigger players, becky, not reinvesting in all of the permian assets some are looking to sell off and take advantage of the high prices as well we will see if they can. just because you want to sell something, doesn't mean you will confirming the report on ch chevron. the idea, becky, they are not going to increase production if anything, they are going to start return cash to shareholders that is the hit on the oil industry for ten years outside of the climate stuff from the shareholder sper perspective. you have given us all this money for decades and you literally drilled holes in the ground and i got nothing for my money that era, not over, but over in the short-term, becky.
6:38 am
if they want to invest, they want cash back with a little something on top otherwise, they will never come back to invest in oil and gas assets again >> we will say over for now. we have seen this play out before brian, thank you grat great to see you let's talk about the broader markets and inflation as a broader level and what we have been watching. joining us for that is joe teranova senior partner and cnbc contributor. jonathan gollabb at credit situ swiss. joe, what impact does this have on the broader market? >> becky, it is problematic. opec plus is comfortable and helps
6:39 am
hesitant to increase production. biden administration has not extended iencouragement to increase production. moving to the high of $75. it is a difficult environment because the equity investor in energy stocks really has not been able to capture the correlating performance. if you invested in chevron the last quarter, you are flat for the quarter. this is a challenging environment and beginning to grow problematic >> we showed four of the top five performers the first half of the year were related oil companies. marathon was the best performer. it depends where you go and when you got into the trades. >> the beginning of the year, becky. a lot of the companies that are actually seeing the strong performance and did so in the first quarter. those companies are not qualitative. they are debt laden energy
6:40 am
companies and not comfortable allocati allocating i want to have a strong balance sheet with the energy investments. you have to ask the question why are they not selling shares? do what gamestop or amc is doing. take advantage of the price. pay down debt. do a secondary offering at this point. >> do you have any energy names in your portfolio, joe >> i do. i have sun corp. a canadian producer. i also have lng. you are seeing a significant price spike in natural gas, becky. a significant demand for lng a lot of the vessels going out and delivering the lng are going to asia and south america. that is a longer journey than previously to europe you are taking the vessels off sdls offline. you are seeing not just natural
6:41 am
gas, but oil move higher. >> john, what does this mean for the market we were talking this morning is inflation transitory as the fed says what does transitory look like you think of it as something moving through the snake is it a mouse or a pig moving through the snake? >> i think, becky, the problems with transitory is a month or is that a year and a half i do agree with the fed that all of this inflation that we're seeing is because of disruption in reopening the economy if you can't get lumber and you can't get a car and you can't get labor for your restaurant, this is not going to resolve itself in the very near term some of the pressures may start to alleviate over the next few months i think it will be a year or longer before we work through the supply chain problems. until you do, we're going to have higher inflation.
6:42 am
i think the story here is tr transitory for longer. the economy will feel very, very overheated that ends up being very good for stocks because companies and we're seeing this in every sector, they are able to get pricing power and able to increase prices to pass on their additional input i don't think this is a squeeze on company profitability in the near term. exactly the opposite this oil story may be about opec, but part of the larger picture. >> when you say transitory and you agree with the fed these things will come back. i understand that. once the supply comes back on a lot of different things except the labor aspect if you have to pay more to get workers in at this point, i'm not sure that goes away in three months or six months or a year it is harder to roll back once you give people raises >> i'm not sure that is the
6:43 am
right way to look at it, becky if you have my wage from $10 an hour to $11 an hour. that's inflation now in order for this to be an inflationary trend forward, that means next year it has to go 1$1 to $12 and the next year to $13. that is sticky that will not come back once you raise the wage the question is is this part of a trend and expect higher inflation. i go to the employer and demanded it. they pass the extra cost on to customers. you get the wage price spiral. that is what will not happen the one thing about something like oil really girates. it could be down $10 or up $10 they ratchet up higher the question is will we see a sequence increase
6:44 am
i see no indication that will happen >> joe, jonathan, i want to thank you guys, both good to see you. >> okay. coming up, a lot more on "squawk. a giant considering going public with spac. check this out 79% said it would not buy a pre-deal spac. i have more stats this morning reminder, you can watch or listen to us live anytime on the cnbc app a shot of times square we're back after this. >> announcer: currency check is sponsored by interactive brokers. the professionals' gateway to international markets.
6:45 am
6:46 am
6:47 am
welcome back to "squawk box. tpg evaluating a public listing according to "the wall street journal. the company could be valued at $10 billion. founded in 1992 by jim coulter made a big name with investments in uber and airbnb it will be interesting to see
6:48 am
what happens they sold before to private pension funds, but not in the public markets joe. thank you, andrew. tesla is due to report the second quarter delivery numbers. does that mean it is time to buy the stock? we'll talk about that next and check out these stocks that are on the move this morning the second day of trading for some high-profile companies that went public yesterday. clear, didi global and legalzoom. we'll be right back. >> announcer: don't forget to subscribe to our podcast you get interviews, original content and behind the scenes access look for us on apple podcasts or your favorite podcast app. subscribe to squawk pod today.
6:49 am
6:50 am
- i'm sure you've heard how grammarly improves your writing, but let me tell you how grammarly business helped my sales team. look at simon. since simon's team started using grammarly business, we've closed more deals. with suggestions to sharpen his writing clarity and overall confidence, simon's pitches always stick the landing, which leads to more of these and these. learn more at grammerly.com/business.
6:51 am
6:52 am
joining us to discuss is dannidan. the whisper numbers. you think minimum you'd like to see 200,000 but you think 205 to 2101 possible. is that about right, dan >> yeah. i think whisper numbers have moved up significantly they are now 180, 185, close to 200 k. i think 205, 2101 possible given what we've seen in china in may and june it is a pivotal quarter. a lot of head winds with chip issues this is a start of a strong second half of tesla >> a lot out of control with the supply and the chip issues
6:53 am
april was not near typical numbers in june. >> the month of april was a disaster for tesla, especially in china there are pr issues, safety, some of those things coming out of beijing ultimately may and june, i think strong months in china and europe this is supply chain issues that could get pushed to 2 q and 3 q. you could start to see 900,000 units for the year taken a step back in front of the quarter. that's bullish the best way to play the green tidal wave is tesla. >> do you think we can gauge
6:54 am
global ev demand from this number too so 900 would be a home run for the company and make you very confident about your thousand-dollar target or do other things come into play like margin issues instead of top line, maybe bottom line concerns is. >> yeah. there is a range of things they need to prove to the street. there is a range of tactics and noise. it comes down to this story on deliveries could they do $1.3 million next year they start to get profit next year china, despite all the noise, that's 40% deliveries. i do believe that is a bareometer of what we are seeing globally the u.s., which has lagged, now you are seeing a lot more
6:55 am
initiatives and the supply chain that is being built. tesla and the ev market. >> dan, i loathe to ask you any questions that might be construed as negative. i just don't need it i was in a good mood the fun tweets i'm going to get by instilling the fear, uncertainty and doubt from asking a certain question. i can get it from both ends. the bitcoins will be mad and the teslarians will be mad at me is that one of the reasons you are not looking at the price target >> a lot is self-inflicted you look at bitcoin, that u turn that musk took has added to the
6:56 am
volatility and the noise is there going to be a write down on tangibles three to five cents going back and that's added investors want to trust on those and it is an overload of stock. >> i'm looking at the new audis, i saw a mercedes that is self-charging. is there something on the horizon that would disturb your bull case on well healed competition? >> this is a $5 trillion market over the decade. so far, it has been tesla's
6:57 am
world and everyone else is just paying rent. you've got gm. this is a big enough ocean for more than one boat >> the 5, 10% next two to three years. >> thank you as soon as those numbers hit, when they do, we'll get them out as quick as we can when we come back, an interview, you don't want to glaze over krispy kreme is going public, again. share prices at $17 last night and with us for his first big interview ahead of the first strad. when traders tell us how to make thinkorswim even better, we listen. like jack. he wanted a streamlined version he could access anywhere, no download necessary. and kim. she wanted to execute
6:58 am
a pre-set trade strategy in seconds. so we gave 'em thinkorswim web. because platforms this innovative, aren't just made for traders - they're made by them. thinkorswim trading. from td ameritrade. this is hannah, she's a posh virtual receptionist at the ready 24-7 to answer your calls and assist your clients. you can't be in two places at once. let posh answer. posh virtual receptionists. this is cynthia suarez, cfo of go-go foodco., an online food delivery service. business was steady, until... gogo-foodco. go check it out. whaatt?! overnight, users tripled. which meant hiring 20 new employees and buying 20 new laptops. so she used her american express business card, which gives her more membership rewards points on her business purchases. somebody ordered some laptops? cynthia suarez. cfo. mvp. get the card built for business. by american express.
6:59 am
7:00 am
. set to kick off the second half of the year in the green. the competition between di di and uber heating up on wall street who will win the local delivery market and krispy kreme's debut on the nasdaq, we've got doughnuts. the ceo will join us first on cnbc the second hour of "squawk box" begins right now
7:01 am
>> good morning. welcome back to "squawk box. let's show you u.s. equity futures at this hour the dow looks like it would open hire nasdaq down about 30 points. s&p 500 up marginally. there has been a bit of pressure on bitcoin down about $33,000. news out of india. other big headlines. china's president xi has taken a hard line and said china, quote, won't allow any foreign force to bully oro press the country and that china wants to be a contributor on the global stage.
7:02 am
we'll talk about that a little later. krispy kreme returning to the markets after a five-year absence. below the expected range of $21 to $24, valued the chain at $2.7 billion the ceo will join us just a little bit later maybe we'll have some doughnuts. travel for the holiday weekend expected to reach numbers not seen forecasting that 47 million people will travel throughout today and monday rental car prices with the daily rate now averaging $166 which is 140% increase. i suspect it is like $166 for like a yugo, that little car i don't even know what a
7:03 am
full-sized car would cost. >> i haven't heard that in a while, the yugo. >> you remember? >> i do. >> i don't know. i feel like you are going to get a toyota controla for $166 a minivan or suv, for get about it it's $400 a day. >> right you will let us know when you ev yourself right? >> i have a lease going. during the pandemic, i switched out cars because we wanted the three rows, we have a volkswagen atlas now. i think there is about two years left on the lease, so call me in two years. >> call you what
7:04 am
>> about the ev. then i'll switch out the car >> it is harder if you live in the city because you don't necessarily have a place to charge it every night. if you are parking on the street >> right we spend a fortune and park in a parking lot in the city and at our parking lot, there are some tesla charges. i don't know if there are charges for other brands yet and i don't know if you have to pay extra for those spots. >> that's going to be, yeah, we have spaces here for a month but if you want to be near a charger, that's coming >> i never asked >> it is trickier for people who live in the city >> from walgreens, $1.51 a share. beating the wall street
7:05 am
forecast s&p climbed to a record high on the last day of the quarter, closing out a strong first half of 2021. technical. the charts clearly show the breakout of the s&p 500 and the nasdaq cnbc's quarterly stock report, the biggest risk to the market reportedly remains inflation covid resurgence, fed tapering and rampant retail joining us now, founder and managing partner at fair lead strategies a lot of times, katie, we look at when an average does 14% s&p in the first half of the year. there is a lot of historians that would says that a good thing. for the second half of the year, you can't help but be struck by others that talk about a yearly return averaging 7% or 8%, what
7:06 am
do the momentum indicators that you follow indicate right now. >> the nasdaq 100. it a really been consolidated for a few months here. >> that can help refresh up trend. we have positive short-term momentum improved immediate term momentum these are measurable things from a technical perspective. we want to be respectful of the momentum by what we've seen with the s&p 500 and the nasdaq >> we talk a lot i'm trying to think about how to ask this question. with the fed so involved in our
7:07 am
lives, we talk about not having price discovery with the 10-year and with bonds we are not really sure where anything would be in a normal world. do your technical indicators, do you ever think that they are not maybe showing you normal signs based on the fed being so active in the marketplace do you think that could sku indicators >> i don't think it could sku the indicators everything boils down to price i think it is a great case in point. we've seen that act in support five times over the past few months it is really amazing that just
7:08 am
keeps grinding higher. to get more from the outside and we have break downs that are a few and far between right now. the targets you can get from the break down are higher by the level of 2 to 3% for those waiting to add exposure and coming from higher levels, you wait for that or not i really think that exposure folks have right now is for the dp growth complex we did see a real reversal now that's solar and biotech that growth to rally is here to stay >> katie, you made an initial
7:09 am
call on crypto and bitcoin and followed it up after bitcoin was already down 20% to 30%. you said there is that will be down more than 50% from the highs. what is the latest on that is it still in a weak position or are you seeing some positive signs yet. >> those signs lean more positive the peeks are often like upside down vs, when you get the bottoms, they do seem more long. i think bitcoin is in the bottoming process. there is support you cited that 28,000 level. there is an important level around 20,000.
7:10 am
buyers seem to be stepping in around 30,000. we have an intermediate oversole condition that has given way i think it is trying to find its footing but hasn't proven itself in any kind of breakout yet. >> that's different for you. when did you decide that y >> i would say the last month or so, i got more constructive on it since it found its footing and became oversold. we are starting to see some signs of down set exhaustion you are probably familiar with the did he mark indicators we start to talk about maybe a return to the 50-day moving average and that would be where people would get more confidence in getting back in >> so obviously, you said 28,
7:11 am
27,000 below that, i guess all bets are off. at this point, you don't see a 10,000 or 12,000 future in bitcoin ever again or you never say never, would you >> i never say never i am definitely reactive and adaptive when it comes to markets. >> 27, 28 looks some what important. >> i think so. i don't want to see that broken because that would reverse the up trend >> all good. all things technical, katie. >> thank you all right, coming up got to check this out -- >> you are missing out >> here. here hold on. i'm here i got my own >> you don't have this take a shot of this. >> there are a lot lots and lots and lots of doughnuts. >> i have even more. >> more than this?
7:12 am
>> you got one crappy box. >> no, no. i'll show you. i'm all set up here. i'm ready to go. when you come back after the commercial break, i'll show you the boxes. >> even you couldn't get through all of these >> they are here they are missing one here. >> you took it >> i only ate half
7:13 am
go left! i'm gonna go where navigation says. ah! [ navigation ]- turn left. thank you navigation. the difference in try and triumph is just a little "umph". upsies! i need upsies! another day, another chance. it could be the day you break the sales record, or the day there's appointments nonstop.
7:14 am
with comcast business, you get the network that can deliver gig speeds to the most businesses, and you can get the advanced cybersecurity solutions you need with comcast business securityedge. every day in business is a big day. we'll keep you ready for what's next. get started with a great offer and ask how you can add comcast business securityedge. plus, for a limited time, ask how to get a $500 prepaid card when you upgrade. call today.
7:15 am
welcome back to "squawk box. the trump organization cfo has surrendered to authorities in new york this morning. he was charged and the company was charged as well. they were expected to be unsealed later today this according to sources that spoke to nbc news. he would be the first person to be charged in the long investigation conducted by the manhattan attorney's office. a lot of questions about what that means for president trump and the trump organization we'll hear more about that throughout the day and when those tax charges relate to. coming up, chinese ride hailing company didi shares up 1% after expected 29%. market company of about
7:16 am
$67.8 billion. a sweet treat for wall street. krispy kreme returning to the markets. and the company's ceo will join us all of that after this >> announcer: time now for today's aflac trivia question, george clooney's casamigos at the brand purchased. e time. ♪ ♪ (bleep) (wincing) oooh, right in the wallet! ouch! aflac! aflac would have paid jill cash directly to help with expenses health insurance doesn't cover. hold on, i think she's trying to give us a side-eye... because she can't turn her head! (laugh) get help with expenses health insurance doesn't cover. get to know us at aflac.com
7:17 am
some say this is my greatest challenge. governments in record debt; inflation rising, currencies falling. but i've seen centuries of this. 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...
7:18 am
7:19 am
>> announcer: now the answer to today's aflac question drink brand purchased by diagio. >> to didi global that went public yesterday that raises a big question for investors will uber and others win out.
7:20 am
this week's edition of on the other hand >> didi is in the best position because they are doing what other ride hailing companies said they would do a growing middle class that will need their services. they've still gotten that buzz while uber and lyft battle those out. financial services and food buying it is clear local delivery is a scale game didi is scale like no one else that is important that expanded to g mail, maps, youtube bringing it to where it is now at $1.5 trillion of market cap with didi, one day of trade and
7:21 am
it is worth $70 billion about blending physical and online interaction. >> but, investors are still valuing uber at more than $90,000. you think the market is missing something? >> on the other hand, didi is maybe not so impressive. yes, it has a big business in china. china is huge but that doesn't make didi a local delivery play. that isn't what it needs to compete with others. not really, uber has a big investment in driving and helicopter business and got outside investment to lower the risk let's address the risk here i'm not sures that true.
7:22 am
didi has the local business and food hailing in local delivery that hasn't been hard at a time when interest rates are low. take doordash, it mostly delivers food and not people it is adding grocery delivery. that comes with focus. trying not to do everything. companies with more focus will probably pull ahead of didi. >> how will we know if didi's model is really working? >> i don't know but i think it comes down to that investment question, are they going to be able able to invest in all of these core businesses outside of core china particularly as capital gets a little harder to come by. compare that to see from other giants compared to taking their
7:23 am
foot off the peddle. >> even if they are mostly china, that's a pretty great climate and one that others are envious of >> lower revenue per ride and different needs in markets outside of china you don't have the same demographics and you don't build the same maintenance network you don't necessarily build ev's outside of china they'll build an investment model. always great to see you. okay when we come back. you asked me how many i have i've got a lot a lot. when we come back. this is number two krispy kreme's return to the public market. doughnut chain pricing at $17 a share. joining us after the break and
7:24 am
later a break down of apple's performance and what investors can expect in the second half. squawk returns after this. bake. we need more ways of connecting with customers, fast. i know some consultants with great ideas. can they help us improve our digital experience? absolutely. they've invested over $2 billion in tech. that could really help us manage inventory. and save us a ton of dough. then let's take back our market share. checkmate, chess heads. girls, i said “bedtime”!
7:25 am
7:26 am
7:27 am
this is the first day of july first day of the quarter dow futures indicated up by 45 earlier this morning, they were up by 130 points s&p 500 indicated up by one. nasdaq down by 20. the 10-year note below 1.5%. oil has picked up the slack. up again today by 2.25 all the way to $75 wti for the first half of the year up by, what was it 51% since the beginning of the year also take a look at crypto today, there has been a crackdown in india
7:28 am
indian crypto exchanges are struggling as a lot of the banks there cut ties because of the royal reserve bank saying it doesn't favor digital currencies you can see koun i do .08% the outlier is dogecoin. random doge thoughts from elon musk krispy kreme is here joe had a half of one. >> half a doughnut >> i've got a lot here you've got some ground to pick up this is what i can keep on my lap. i think i've got maybe double this all to myself. >> that's so nice. >> you've got some eating to do.
7:29 am
>> they did their market research for who would be able to get the job done. we already talked about it it was kind of gross if i was in anent rome i'd eat all of these and then go and do it again. since we are not >> he did say. i understand why andrew can eat nine of these. >> they are light. they are tasty they are great >> we had a couple of pieces of bacon from the nasdaq too. in my sick mind, i thought about layering it on top of a glazed doughnut and eating it but i didn't do it i'm being good it is a tasty thing to do. >> we've had some great tasting
7:30 am
bacon doughnuts. we are going to talk about the ipo right now. we have a special guest going public went public back in 2000 >> years later, it went public and in 2016, went private. today, listing dnut after the ipo priced at $17 per share. should say it is below the expected range now first on cnbc from its time square location, krispy kreme ceo mike tattersfield. it is a big day for you. let's talk about the offering and the business go ahead >> yeah, no. it is a great day for us it is an 84-year-old brand as you think about it, we are
7:31 am
always trying to build the most love sweet treat in the world. the transformation this company has done in the last five years is incredible. we've worked on our brand and culture and changed the business model and created an omni channel approach where we leave wrath these incredible doughnut shops like where i am today and get doughnuts to where you are >> i want to talk about the valuation. it did come in lower than expected because of where you thought investors would be what happened? >> five years ago, we came in and bought the business a little north of a billion the value today is 2.5 times of the value when we purchased the company. we talked to investors and doubled the ebita.
7:32 am
the journey ahead both in the united states market and global. it is about this shared locations. we sell in dozens. we deliver doughnuts and built in gifting andrew, you've got a lot of dozens in your house right now can you share them >> trust me, i'm going to have to gift a lot of these i can't eat all of this. in terms of expansion. you've been greing and growing past >> when you think about it doubled the revenue and ebita. one of the things we did in the transformation on the brand. we used to be a franchisee where we bought back the system. a controlled system of 85% where we make our doughnuts.
7:33 am
we then use our 400 doughnut shops. i love that. the aspect of keeping the doughnuts special. we actually use an omni channel approach we leverage these theater shops that are amazing i'm sure you've been in it seeing the hot line. take the journey whether it is a fresh shop in new york where we produce. an e commerce model where the consumer can order gifting or in the wholesale space where we deliver fresh doughnuts to convenience shops or groeshers around the globe >> i don't know if this is a hard question or not in a day and age where people are supposed to be moving away from carbs carbs and sugar. this is 190-calorie treat.
7:34 am
you typically eat more than one. what do you think trend wise and the movement away from treats and what that may mean or not for your business long term? >> i love the indulgence space and krispy kreme works incredibly well within it. our customers engage us about 2.5 times a year it is about shared dozens we focus on celebration, gifting. the customer is always looking for a tweet treat. i know the wrld is not a really good place, a brand place if you don't have a sweet treat so it is really an opportunity to build on that you think about gifting. motherer's day that came by. you could have a little kid basically send their mom a dozen
7:35 am
doughnuts. we compete against flowers those theater shops that are so special but doing fresh doughnuts everywhere i'll give you a snap shot. last year, we sold 1.3 billion doughnuts. i love that. it is great. >> do you imagine you'll get pressure from investors or esg coca-cola has taken a ribbing because of the sugar in their drinks, do you think you'll have to come up with other products or just lean into the doughnut >> think about it, doing that 1.3 billion doughnuts. we lean into the doughnuts this shared occasions. we are in the normal tweet treat space is an individual location. these are designed for sharing and gifting. one-third of our doughnuts are actually gifted to others. in that space, we grew 20% even
7:36 am
with that low incident rate because of the occasion of the doughnuts. >> can you speak a lit about the inflation pressures you may or may not be feeling right now in terms of wages and feud increed gents and the like. >> i'll tell you, we can always face head winds. 2020 is the year that krispy kreme really braced itself if you can do that in the year of covid and really start to transform your business, we will always be able to manage these types of costs you think about that shared occasion on an accessible price point will give us ability to move >> what is a company's position on wages and minimum wage right
7:37 am
now? >> we are always competitive in the marketplace. we'll always continue to do that one thing i always focus on for every krispy kremer can reach their dreams and goals wherever they'd like to go and grow with the company. i'd love one of them to be the ceo of the company one day >> two final quick questions one of the things that hurt the company years ago was overexpansion. i know you are trying to avoid that but to grow, you have to expand how do you see that working? >> again, i talked about those hot light shops. there's just 400 of these around the globe. we want to keep them special we'll keep them special. it is building access points if we build an access point inside of a freshco or walmart
7:38 am
those are done daily building these big theater shops is a past but today we focus on how to get access to customers and keep our doughnut shops special. >> we've got to run. you've gotten away 2 million doughnuts to those who have a vaccine and a vaccine card how many are you expecting to give away by the end of the year and when people come in for the free doughnut, do they end up buying more? >> yes, they do. we gave away 30 million doughnuts. this year, we did the cdc doughnut we are past 2 million doughnuts. people because of the distance, when they come visit the shop tend to pick up a dozen and they share the doughnuts. make sure you spread them around the building or your family.
7:39 am
>> mike, we wish you a lot of luck i promise to share these doughnuts. we look forward to following your progress. i look forward to seeing you thank all the krispy kremers around the globe a great day for krispy kreme take care. you guys eating any of these >> joe has eaten half. we are eyeing them they are tempting. i've managed to maintain so far. they are tempting. they are all sitting here and looking back at us >> we have so many different kinds. the stuffed ones look the best when we come back. apple's announcement that it will spend $1 billion to build a new campus in north carolina what does a major corporate expansion look like in our world? ina nd later kyle bass will talk
7:40 am
chand markets and more "squawk box" will be right back. s at once, let posh answer. posh virtual receptionists.
7:41 am
hey frank, our worker's comp insurance is expiring, should we just renew it? yeah, sure. hey there, small business owner. pie insurance here with some sweet advice to stop you from overpaying on worker's comp. try pie instead
7:42 am
and save up to 30%. thirty percent? really? get a quote in 3 minutes at easyaspie.com. wow, that is easy. so, need another reminder? no, no no, i'm good. uh, yes please. oh. ho ho ho, yeah! need worker's comp insurance? get a quote in 3 minutes at easyaspie.com. sofi is a one-stop shop for your finances designed to work better together. save, spend, borrow, invest, and earn cash back rewards, all in one app. that's how you get your money right with sofi. welcome back, reportedly considering going public
7:43 am
one of the few big private equity players not public. black stone apollo group i don't know if you've been watching this but leslie picker talked about how maybe it should be taken with a grain of salt. >> i made some calls on this and i think leslie and i are in agreement. it is possible that it would go public but we are not there just yet. did i catch you eating doughnuts? >> i was trying to move the doughnuts around because there was a lot of them.
7:44 am
>> tempting. tempting how much are you up to now we've gotten calls on twitter for a counter. four you are picking up steam >> this may be the end >> do you feel okay? >> maybe one more. one more >> he only had four. he can handle four >> that is a lot of sweetness. >> a lot of sugar. >> a big come down >> we also decided, andrew, you know how you go to a wine tasting, you can taste like 30 different but you didn't really drink the wine think about that buts that gross. >> that's nasty. >> we can't think of a way to do which is really to taste all of the doughnuts. >> and apple coming up and a check on bit county, this
7:45 am
time out of india. uno, dos, tres, cuatro! [sfx]: typing [music starts] [sfx]: happy screaming [music ends] woo! you are busy... working, parenting, problem solving. at new chapter vitamins we've been busy too... innovating, sourcing organic ingredients, testing them and fermenting. fermenting? yeah like kombucha or yogurt. and we formulate everything so your body can really truly absorb the natural goodness. that's what we do, so you can do you.
7:46 am
new chapter wellness, well done. [ "me and you" by barry louis polisar ] ♪ me and you just singing on the train ♪ ♪ me and you listening to the rain ♪ ♪ me and you we are the same ♪ ♪ me and you have all the fame we need ♪ ♪ indeed, you and me are we ♪
7:47 am
♪ me and you singing in the park ♪ ♪ me and you, we're waiting for the dark ♪ we are less than two weeks away from the run of america's return of business which we are
7:48 am
week as way from the battle for today's business and jobs never led away but it definitely changed he is in rally north carolina it never let up it will be fascinating to watch. might be we'll find that out again on tuesday the 13th we'll highlight that big deal. apple will build a huge corporate campus not far from where i am the company's first campus like this on the east coast
7:49 am
things like machine learning software and more. $2 bill none in structure education. close to the deal saying they really swung it was the talent and the quality of life. >> we are seeing people, i believe, as a result of the pandemic really look at what matters most to them really look at where is it you would want to be located where is it you would want to have your company grow and blossom. where is it that you can go and be celebrated. >> north carolina is one of five
7:50 am
states with no anti-discrimination law. we are told those issues did come up with the talks with apple but the state has taken some is actions to get past that local jurisdictions did help to put that into perspective. apple is really beefing up investment across the country. something like $430 billion. >> more broadly about the competition among the states that didn't let up did it look like there were clear winners? just consumers and average individuals. did companies do that on a bigger scale too >> they did to an extent the priorities changed work force is always important
7:51 am
the economy is rebuilding and states are pushing the cost of doing business which is always an important category. things like incentives, wage cost utility costs. we surmiez that is what the company is looking for as well this quality of life issue, we've taken that category that has expanded here. we call it life, health and inclusion. it looks like some of these laws and voting rights. also health care we all learned what matters. what mattered in a place to do business and a place to live >> i'm looking forward to it the top states and guessing who made the top cut this year we'll see you a weekfrom tuesday. probably before that to talk about it we get to see the states
7:52 am
themselves a week from tuesday thank you. let's take a closer look at apple's stock. the nasdaq, up by 12.5% for the first year, apple only up by 3%. shares of apple have done better this spring. up 14% over the last three months joining us now, senior analyst at cowan what has been holding apple shares back and why do you think they will pick up in the second half of the year >> i think the combination of things what we saw earlier this year was kind of a rotation from growth value cyclicals i think that was in the battle that was one
7:53 am
and second we've seen a bit of out performance and people taking money off the table it was a little lower. the combination there. the rotation fromgrowth to value moves. one of the keeps of the year >> this is contingent of the federal reserve's action if the fed is a little more active saying it will crack down on things, will it hurt apple's chances? >> i think it is a difficult one. i would say in general, i think the deal is as of now, it is a little more anti-big tech. the stock-related performance, i think fundamentals will matter the last earnings growth, apple
7:54 am
will have those numbers and the move in terms of the code and business in the northeast businesses >> part of the concern about apple is what will happen with china. >> part of the other big business like nike or starbucks has been better than anticipated. a big sell off there with consumers trying to buy. do you think that kind of factors in here as well? >> for sure. china bodes from that standpoint on the hardware side one of the things we have noticed is the last few months when you track the old
7:55 am
smartphone trend you have seen the slow down and demand from some of the chinese smartphones with the combination of from india. you don't see any of that in the iphone eco system yet. the doe emand for iphone in chi continues to be robust i would say the overall eco system for apple in china is still pretty healthy >> want to thank you for your time appreciate seeing you today. >> thank you for having me coming up. remember when porsche fans requested how much demand there would be for an e porsche.
7:56 am
not really i like this car. i i'll let it go a couple more years. you can't even get a 911 you can't even get a standard transmission you have to get an s you can't get it in a standard or 911 >> really? >> the taycan. now saying the taycan is now as popular as the 911 and joining us to talk about china and whether corporate america is doing enough to speak out on the violations of just simple doccyemra check out the futures. we'll be right back. a fund that invests in the innovators of the nasdaq-100
7:57 am
like you become an agent of innovation with invesco qqq
7:58 am
like you this is dr. arnold t. petsworth, he's the owner of petsworth vetworld. business was steady, but then an influx of new four-legged friends changed everything. dr. petsworth welcomed these new patients. the only problem? more appointments meant he needed more space. that's when dr. petsworth turned to his american express business card, which offers spending potential that's built for his changing business needs. he used his card to furnish a new exam room and everyone was happy. get the card built for business. by american express.
7:59 am
. good morning the second half of 21 starts today. the dow and nasdaq all posted double digit gains we'll see a repeat in the third and fourth quarters.
8:00 am
or are we? the communist part reaches its 100th anniversary. discussing the response or lack thereof on this case human rights and the crack down in hong kong don't look now or doughnut look now. we'll bring you the details and tell you what happened with a slew of other big ipos yesterday. the final hour of "squawk box" begins right now. good morning and welcome to "squawk box" here on cnbc. u.s. equity futures this hour up
8:01 am
higher on the dow, up 110 points pretty good recent sessions. obvious buy is higher for the first half of 2021 treasury yields. kind of lower in terms of yields we are down around 1.482 this morning. the trump organization ceo has surrendered to authorizes. th charges against him and the company are expected to be revealed today he'll be the first person to be charged in the long-running investigation conducted by manhattan district attorney's office it is said that he's being used by the district attorney as a pawn in a scorched earth attempt to harm former president trump
8:02 am
and the doughnuts are gone from the set but the memories linger. i will say i feel like i really didn't take full advantage of it but it is okay >> doughnut king krispy kreme to take share of the price. 10 minutes of brisk walk a half doughnut 20 minutes for the entire doughnut to jog or walk. >> seriously >> i wear a heart rate monitor usually if i go running. even if just a two-mile run, i can burn about 200 calories in maybe 18 minutes if each one is 190 calories. or a brisk walk. >> those are horrible facts. a bag of potato chips, you've got to run for 20 minutes.
8:03 am
if you are looking at things that way, you'll never eat anything again that price was below expectations of 21 or 24 krispy kreme used to be public was it kk? krem it was taken private in 2016 the company ceo joined us here on "squawk box" last hour. >> five years ago, we came in and bought the business a little north of $1 billion. the value today is two and a half times of the value when we purchased the company. when we talk to investors sand they saw we doubled the revenue and doubled the ebita, they really love the traction we are doing. >> a few other stocks to show you, they all began trading
8:04 am
yesterday. sentinel, legal zoom kkd was the old symbol better one now dnut and chinese ride hailing giant didi global up 1% yesterday. and clear closed up nearly 30% a developing story, china's president is warning any country thinking about trying to bully it that if they do, they'll find himselves in his words on a collision course with a great wall of streel forged by 1.4 billion people a translation of the president xi's mandarin remarks. xi said china won't except
8:05 am
santimomious preaching from other countries apart from building a prosperous country that is strong, culturally advanced and harmonious. also the anniversary of the handing over of hong kong. we'll talk about all of this as well as the business climate a little later this hour with hedge fund manager kyle bass the first trading day of the second half of the year. according to the latest quarterly stocks confident financials will out perform by 2021 followed by technology and energy. i wonder if cnbc mark santoli will hit us with a snap shot and mike agrees with that? people are having muscle memory
8:06 am
from the start of this year. encapsulating the huge economic come back. it has wavered a little bit. one of those things about the s&p coasting into midyear and one of those overall returns on the upside 15.1%. only 2.5% where it has become a little more flattened out. we saw inflation expectations surge. we saw those come back those financial stocks really carry the market and they've come in for a little bit of a pull back. that is a little indecision. good shape in terms of five straight quarters. and by the way, usually that is decent things for the next couple of quarters take a lookat the equally
8:07 am
waited one difference in the change of characters the equal weight you see the actual market cap and equal weighted version is not at a new high. some people are saying this is a crucial divergence or that this is a difference and the market is protecting itself in the megacap needs. valuation has been the shadow since the march 2020 low that the market was very expensive and holding back returns this is over five years. yet this huge function as earnings collapse. we almost got that high on the earnings previous high was about 19 times. it has been going down earnings are surging so much, it's normal to have this
8:08 am
valuation compression in the second year. we'll see how much we go down to live up to that has now become pretty highexpectations. >> fabulous analysis of what may or may not happen. we'll see. you know that double digit market gain for the first half of the year has some investors wondering if there is anything ahead. in fact the medium return is nearly 10% also historically what happens in the next couple of days
8:09 am
>> right before july 4 is like the most bullish week of the year everyone is ready to throw those fire works i'm jealous you got those doughnuts. what tends to happen when you have this start of the year. the second half is strong also the last six times the s&p 500 gained 12.5%, the rest of the year was higher with the worst return of 8.5% 98, 97, 95, those years might ring a bell. this he were good starts but continued to move. whether you look at history used
8:10 am
in the opportunity where the upward bias is well. >> thinking you would expect it to be up and up and no pull backs on the year. >> we have had a 5% correction we are in july now july is the best month of the year we may think more choppiness on the quarter. maybe it would be perfectly normal the whole scope of things. monetary and economy coming back that's our big call.
8:11 am
one of the really interesting things with new retail investors it may be part of the thing. every time there is a pull back people love. is this a pull back? >> we've seen periods where markets may go if you look at the number of stocks making new 50-week highs. there aren't as many stocks participating. there is some worry some signs that listen, this consolidation put in a look at the scenario or appreciation taking place which
8:12 am
side do you take >> we are still on value >> those growths will go higher. >> that should be a tail wind for those value names. financials are one of the most popular groups we camp with financials or materials. when all is said and done, those are still where the leadership is coming from >> does that mean you don't like the big tech names >> we are neutral tech not saying we don't like tech but we are not overweight or under weight we are just think there are better opportunities in other areas. >> we'll watch and see how it plays out through the rest of this thank you for walking us through all of this. good to see you.
8:13 am
>> thank you coming up, we'll go inside the ev drive at porsche. the carmaker's north american ceo. and how american views about going business in hong kong have and haven't changed in the year since the china national security law went into effect. we'll speak to hedge fund nar leass. digital transformation has failed to take off. because it hasn't removed the endless mundane work we all hate. ♪ ♪ ♪ automation can solve that by taking on repetitive tasks for us. unleash your potential. uipath. reboot work.
8:14 am
this is lisa. she's a posh virtual receptionist. when you're busy, she'll answer your calls and assist your clients. you can't be in two places at once, let posh answer. posh virtual receptionists.
8:15 am
here are the two battling to the line and allyson felix... simone manuel's above her trying to fight on, and above simone... getting an opportunity to show her stuff. nonstop, displayed at the highest performance level... finding something and the us takes gold! ♪ dream on ♪ ♪ dream on ♪ ♪ dream on ♪ ♪ dream on ♪ - yes! ♪ ahhhhhhh ♪ ♪ dream until your dreams come true ♪
8:16 am
welcome back, we are watching oil prices this morning that are up again. wti up again to 75.71 a barrel opec meeting beginning a short while ago. breaking above $75 a barrel now trading near a three-year high demand has seen jumping as economies keep opening they are not expected to hype production chevron, con con owe co-and bp
8:17 am
all trading higher drillers have been benefitting from this as well. transocean up nearly 5%. check it out schlumberge and others up about 2% >> the ev road map for porch we'll hear from the company's north american ceo kmek out the price of gold just had its worst month since 2016 stay tuned to "squawk box" on cnbc
8:18 am
8:19 am
8:20 am
news on the car front. after the all electric taycan. got to figure out. phil lebeau is with us you can't get the regular model. eight months and i still don't have it. >> joe, instead of you and i discussing this, let's bring the question to cal
8:21 am
the north american ceo we'll get to joe's question in a little tell me about the second quarter. >> yes good morning thank you for having me. figures are just out q 2 for us was 18,958 units that's a plus 55% from last year we tend to not compare from last year because that was covid time in the first half year of 2021, we delivered more cost in the entire year of 2012.
8:22 am
>> the taycan, you saw sales there surge. now eclipsing what you did for the 9/11 people have said, joe, look, if i'm going to get the porsche and i want the driving experience, i want the 911 are we starting to see the conversion there but they are saying i want to go electric >> that's an excellent question. at the end of the day, we are seeing more from all of our lines. a very high demand gt 3 is a high demand and the taycan as well
8:23 am
the demand for the taycan is approximately 15% of all volume. the brand is strong. >> where are the taycan buyers coming from? are they current or previous porsche owners or are you bringing this in from people who might have been looking to buy tesla that say, instead of going at the tesla, i'm going to go taycan wasn't a picture for me. >> that's a very good question we want both current and former owners of the taycan to consider this part. >> this is a clean sheet of
8:24 am
paper. if we do something electric, we do it right. is people are coming from the porsche brand that say, hey, i'm only a 911 obviously, we as a brand want to grow we are bringing new people to our brand. we are conquering from other brands what we see is that people are buying on top of the vehicle those three sources from the current owners where we accept the taycan and people say i need this car on top of what i already have in my garage. >> it is a beautiful car there's one in my neighborhood i've seen that is a beautiful blue it looks half way between a 911 and a panamera to me
8:25 am
you did a great job on that. you will acknowledge it is hard to get one or is my dealer lying to me. it is taken nine months to have one built. >> our philosophy is always to make the customer happy. we want to sell one car less than the market demands. >> that's me you picked me. >> at the moment, it is one less because we have such a high demand we are working hard anyway to bring the cars to the customers
8:26 am
at the moment, you might have to wait and dream about your car a bit longer the dream phase is a lit longer than the enjoyment >> i'm happy for the one i have. it is weird. it is hard to get a standard now? i had to go up to an s just to get a standard seven-speed, are those going to be gone eventually and have those flapper things >> panel shifters? >> that brings us what you are mentioning is our power train
8:27 am
strategy we are fully hearted into electric vehicles. we have three pillars. fully electric cars and hybrids. we added the 4 se hybrid just as we saw with the gt 3 if we do something, we do it right. those cars have a manual transmission this physical experience of being able to shift yourself it is something that our fans just enjoy and is very much porsche. especially in a 911. yes, it is something we believe is important and we will have in the future >> one last question
8:28 am
>> what is the future of that given everything where he went through in covid-19. >> that has always been something special for our fans it is so big we would love to do it every year we would do it approximately every five years we'll send out the date as soon as we had it in september this year, we have a sports car together fest that's not only the porsche community, it is everybody who loves sports cars. everybody who comes to indianapolis, there is a lot of
8:29 am
racing cars. a lot of action there. you would enjoy. i'm going to be there. >> we've got to ask you this porsche readies a global taycan recall to fix a software issue due to a loss of power is that going to happen? you'll have a global recall for this software fix? developing in 911 and put millions into four cars. it is a rare case where the engine could stop. the good news, we have a fix for
8:30 am
it we have a fix for that that will be rolled out real soon. >> joining us for news on the recall and the sale in the future including when joe might possibly get his 911 i'll send it back to you you gonna join me in indianapolis >> i'd like to you know, he's right absence makes the heart grow fonder i think he's on to something there. >> the fourth anchor thank you. good to have you all week long andrew we are getting jobless claims coming in right now
8:31 am
rick santelli is standing by in chicago. what are the numbers >> yes a post pandemic low for initial clai dropping 47,000 to 364,000 from 411,000 usurping the first week in june, 274,000 as the new post pandemic low i'm continuing claims. not quite. our last look at $390,000 does get revised a bit. the current read is still a bit higher 3,469,000 is the current continuing claims read, so it isn't at the post pandemic low last month's 411,000 now moves to 415,000 you look at early june on all
8:32 am
the pandemic related came a bit less than 15 million we have 22 states in the month we just closed out june. we are stopping the 300 kra a week bringing that total and we'll monitor them the note finished last month at 174 back to you. >> i'll pick it up when we come back, heyman capital management founder and cio. stay tuned
8:33 am
8:34 am
8:35 am
>> you remember when we talked
8:36 am
about the eco. the first thing about wheres my car. we are back to that. 1%er problems. china's communist party turns 100. talking about america's business should us executives be speaking out about human rights there as much as we've seen them do it here ray conversation we don't want to miss. kyle bass will tell us what he really thinks. you don't want to miss it. you are watching cnbc.
8:37 am
8:38 am
welcome back china won't be bullied and it won't be lectured. that was china's president xi jinping's message. eunice is with us with more. >> good to see you
8:39 am
no santimonious lectures or bullying any force would find themselves on a collision force of a great wall of steel forged by china's 1.4 billion people they matched the strength of the celebrations of the communist party's 100th birthday and the stealth fighter through over head pledging that china would continue to build up the military and the commitment to the reunification of taiwan was a priority there would be a new world order and the antidote to security would be upheld. hong kong was on lockdown as it marked the 24th anniversary of
8:40 am
its return from british to chinese rule the city traditionally holds a peaceful march on july 1 authorities there didn't allow it citing pandemic restrictions. activists believe it was a way to silence beijing critics as you know for the past year because of the national security law, several journalists and other critics have been rounded up >> eunice, thank you we got to go we have to talk to kyle bass i know you you are interested too. talking about american companies doing business in china and whether ceos should be speaking out more about human rights issues with us now, kyle bass what a speech, kyle. and delivered in full mao garb
8:41 am
that looks right out of the pictures in mao garb talking about democracy. what i also didn't hear is that if china has any -- i don't want to say resource but second thoughts about any of the stuff they've been doing you didn't hear any source of remorse. >> good to be here, joe. i think xi is the master as playing the victim while being the aggressor. his rhetoric has turned more and more nationalistic you heard what eunice said and in the interest of the national security law in hong kong and j j jack law had a story about the
8:42 am
national security that has a list of people they are watching no real country has to wall their people in. they've erased democracy in one year's time. yet xi plays the victim. >> are we going to hear u.s. companies or american companies speak out about some of the things happening in china that aren't very good, to be honest just as a fellow citizen of the world? they are not >> not only are we not going to hear them speak out about it -- actually, i think we are going to toss to the side. kyle, let's do it. we'll play something nike ceo said talking about growth and efforts here it is
8:43 am
>> we are confident about what we are seeing in china as we drive long-term growth we have a long-term view of china. we've been in china over 40 years. phil invested significant time in china in the early days we are a brand of china and for china. >> well, that's nice i didn't hear anything about the uighurs there. i heard we are for china i saw the nba and what happened. what did that guy say? he barely said anything. the players across the board, coaches all found the need to sue china's dealings because of 600 million fans >> if u.s. national security was left up to corporate america, we'll all be speaking chinese quickly. i think nike's comments were
8:44 am
pretty unbelievable to say nike is of china for china. they do about $6.5 billion in china and $14 billion in united states they are social justice warriors where they see fit until if affects their wallet lebron james, nike or disney they will be social justice warriors here in the united states because it is fashionable to do so when it comes to a regime the u.s. state department has labele labeled genocidal, committing crimes against humanity, they are silent >> it seems the more successful china becomes, the more freedoms the chinese will enjoy they said this past week that is dead wrong that's not happening
8:45 am
so much for opening open because of the internet and coming in to some of the human rights freedoms and such that we have in the west. that's not coming anytime soon, it doesn't appear. >> no. i see the early view all the way back was let's hug the panda and invite it in and show it how western capitalism works and they'll open up once they see the positive attributes and benefits in the end, the panda bit us and it is only becoming more closed and more authoritative look what they've done they've snufed out democracy in hong kong in a little more than a year it is shocking it is the 24th anniversary of the hand over of hong kong from the british to the chinese the chinese signed an agreement
8:46 am
that said they would leave hong kong alone for 50 years. that was supposed to expire in 2047 they went 26 years early and against an agreement filed at the un and tore it up and said it doesn't suit them anymore an agreement is only the beginning of a negotiation for them >> i keep thinking about what an american company should do i completely agree with you in terms of the ideas if i were ceo of a starbucks, coca-cola. should i get out of china? or do i have some leverage i think the answer is no or am i better off staying there to the
8:47 am
extend that our company can make some money and it will flow back to the united states or employees and investors a like life is relative and by the way, i recognize the hypocrisy of the other point, which is, if you are going to make social justice points in the u.s., you should be making those same points in china i completely understand that i don't know if the answer is don't make social justice an important thing in the united states or the issue is get out of china >> right being duplicitous is a difficult position to take i agree, left to corporate america, theirjob is to maximize profits and they are going to do so it requires leadership in d.c. it requires the state department, commerce, national security to get together and actually make some difficult decisions.
8:48 am
don't just lead with rhetoric and do nothing on the other side corporate america will never stop chasing the profits and the pot of gold of the 1.4 billion chinese. this has got to come from the u.s. administration of whoever is running the country and whoever is labeling china as the regime and labeling them as committing crimes against humanity someone has to take the next step >> if the signal is free, which it is in this country and costly there. we know which way they'll come down with he know how sincere their motivations really are >> they are talking about unifying taiwan. the taiwan eese surely don't wa
8:49 am
to be reunified and we support them >> what is this setting us up for. we remember the cold war and salt talks we don't even think about that anymore. economic power is global power and russia doesn't have that anymore and china has rhythmically more than in the past what are we setting ourselves up for in the future? hopefully not something where it is an arm conflict i guess it is an economic war. they keep building up their military as well is it frightening to you >> yes there are four wars we could be fighting we are fighting three of them. the economic war we've been fighting since we allowed them to ascend the wto in 2001. the cyber war where we have one of the best war departments in the world. we've been fighting the cyber
8:50 am
war with china for 20 years. the propaganda or data war we've been fighting with them as well. the only war we are not fighting with china currently is the kinnetic war if china moves on taiwan, national security is at risk we have a lot of our semiconductor chips made at taiwan semi. we are as fast as we can to move our alliance, let's say, further than 100 miles from the chinese border you know, xi's most recent rhetoric and military moves are really worrying taiwan and really worrying the u.s. national security complex. the question is when does china move on taiwan, and the biggest question is what do we do about it >> since we are a business network, i guess we'll get back to that. all these things are frightening, but what -- do you see anything that could cause an
8:51 am
inflection point in how u.s. business approaches china? what would have to happen before you'd really see american businesses make difficult decisions? and do you expect that to happen, or is china smart enough we're important to them, too, so i'm not sure that in the back of their mind they don't realize they need to tread somewhat lightly on some of these issues. >> yeah, look, when i think about the moves on the global chess board, you know, today china is almost completely reliant on their access to u.s. dollars. you know, their own currency only settles 1.8% of global cross border transactions, and when you peel that onion back, you see that 1.8% is almost entirely with hong kong. nobody accepts the chinese currency as legal tender for anything as they roll out their central bank digital currency sometime in 2022, the balance of power will shift it's not going to be the reserve
8:52 am
currency anytime soon, but they could go from call it 0% to 15% where their gdp supposedly is, and that would change the balance of power around the world. today the united states holds all the cards because we control china's access to dollars, and i think in the next 12 months you're going to see tectonic moves in geopolitics from china because they're taking that next step by issuing a central bank digital currency and forcing its use around the world >> right and you know, you're not here to talk about bitcoin obviously, but it can be -- you know, only so much can be mined at any time, so it doesn't matter will china, the chinese people love to use it, and they use it peer to peer, they use it in ways that the government can't control. is that going to be their oversight somehow, they're going to even take another step, you know, what would stop them you're not free in china anyway.
8:53 am
are they going to take it even further to prevent that? >> yeah, look, when you look at private crypto you just said that chinese government can't control it. i think you think about matter and anti-matter, and they're about to issue their own matter next year and private crypto is anti anti-matter. i think the private crypto market in 2022 is going to have some difficult moments, and the question is does the chinese government ban it outright when they release their own cddc. the next 12 to 18 months is going to be -- it's going to be tectonic as far as private crypto, new central bank digital currency issuance, and the assertiveness or the belligerence of the chinese communist party. i'm really worried about the next 18 months >> kyle bass, good having you on, and we always look forward
8:54 am
to having you on we'll have you on again soon thank you, kyle bass, and you're going to a guy, he's got a lot of thoughts about china and crypto and china's effect on crypto and everything else, perfect time to talk to our buddy. >> perfect let's get jim cramer involved in this conversation down at the new york stock exchange. jim, i don't know if you've been listening to what kyle's been saying, but i'd love you to weigh in on both the china piece and the crypto piece >> look, i think that when xi says he wants taiwan, that's a direct threat to the united states' interests, and i think that the united states has to answer that immediately and say, listen, we think that the sovereignty of taiwan is very important. obviously we've always engaged in a subtle two china philosophy but this is -- it'd be terrible for the united states and terrible breinterests, and i do believe they can keep ratcheting up the pressure and maybe taiwan
8:55 am
caves. look what happened in hong kong. it's necessary we come up with a response, not just because we have a tremendous actually national interest because of the semiconductors but because this is a country that wants to remain independent the chinese are i think going to to say that we're not friendly, that we're not helpful to the asian-americans. >> jim, what's the american business leader or even american investor supposed to do or not in this circumstance i mean, if you're a blackrock or a dan lobe that owns a big stake in disney, do you say i don't want to own disney because they're in china or in apple the one thing we've seen -- >> but we've seen a bunch of companies. we've seen nike and starbucks the last few weeks no impact whatsoever if you make it in china, and you're not a -- let's say a carpet bagger, then the chinese have been backing you, so, no, i would not say that you would need to sell if you're disney, not at all but i do think, by the way,
8:56 am
these guys have been one of the reasons why -- i don't know if you know it but crypto's not doing anything people want to know about what tether invests in, tether is kind of the oil that makes crypto work, and i think that the chinese very much do not want the united states oligarchs to control a currency that is arrival to the chinese that was such a belligerent speech by xi the united states has to respond. if they just ignore, then that's the chinese just saying, you know what? we've got the run of the joint it's only 100 miles away, and it's choppy seas, but it's only 100 miles away. >> we'll see you in just a couple of minutes. i'd love maybe tomorrow we can do a whole segment on tether, what you're talking about is so important. >> remember, taiwan is just a krispy kreme throwaway, right? from china. >> and i want to hear your views on krispy kreme, i'll be watching that at 9:00. when we come back, what to watch
8:57 am
for in the first trading day of the second half of 2021. we're back after this. frank can go to meetings. visit a job site. and even finish work early. you look really lovely. frank? frank...i trusted you! but if cloning isn't right for you, just get posh. virtual receptionists who can answer and transfer your calls, because you can't be in two places at once.
8:58 am
8:59 am
all morning we've been bringing you statistics from cnbc's latest quarterly stock survey here's one about retail that may make you think as we kick off the second half of the year. when asked which stock they would rather own for the remainder of 2021, more than half of the respondents said amazon about a third said target. 12% said walmart and nobody said gamestop, which was perhaps the most talked about stock for the
9:00 am
i first six months of the year i'm confused by this that would make a big difference if you were asking retail investors on analysts this same question. >> meme stocks. >> that does it for us today join us tomorrow, we will be here before the 4th of july weekend. we hope to see you then. for now, though, we're going to hand it over to "squawk on the street." bye, guys. good thursday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david favor at the new york stock exchange. welcome to q3, futures begin the second half coming off five straight record s&p closes jobless claims a post-covid low, 364,000, ahead of the jobs number tomorrow. a road map begins with the record rally rolling into the second half. the s&p as we said, the second best first half since '98.

68 Views

info Stream Only

Uploaded by TV Archive on