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tv   Squawk on the Street  CNBC  July 19, 2021 9:00am-11:00am EDT

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new worries about the delta variant and every data point we hear coming out of the olympics, too, hard to get excited about the olympics when we're sort of anxious. there's anxiety. >> could be hard >> still trying to look forward to it because it's such a great thing to see and we miss it from last time. >> yep we do. >> i will see you tomorrow, so sorkin. >> i'll see you tomorrow. >> becky should be back. "squawk on the street" is coming up right now good morning, and welcome to "squawk on the street. i'm david faber along with jim cross-cl cramer, and we're live from the new york stock exchange. carl has the morning off let's give you a look at futures as we get ready to start trading here at the nyc 30 minutes from now. we're set up for what will be a sharply lower open that of course is where you'd expect our road map would start. riskoff this morning stocks are going to open lower this of course is the spread and the rapid spread of the delta variant rattles investors.
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>> that's what it is >> we're also preparing for a post-pandemic world, and zoom, well, it's doing the same making its first multibillion dollar acquisition. it is the second largest american technology deal of the year plus, there are a lot of concerns about covid misinformation on social media the president says social media is, quote, killing people. facebook for its part is fighting back. all right, jim, let's talk about the market itself. of course our viewers just saw where we may open just a half hour from now, going to be lower. somewhat substantially lower it does appear because the delta variant is spreading quickly we spent a good amount of time talking about it thankfully hospitalizations and/or deaths have not been following the case count in the same way, but it's of concern it would seem. >> yeah, look, you come in and you see europe down big. europe's in a different position from us. you see the ten-year at some price that makes you think all
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hell's going to break loose. you see that there's whole states that seem to just don't believe, and then you hear that facebook is killing people in the present t. zuckerberg by the way, many things have been said about him, this is the first time i've heard murder. >> he didn't say that. >> i think it's a false charge. >> i think dr. gottlieb is absolutely right that it should be easier to police. there's just a lot of people, david, who genuinely believe it's bad, so what's he policing? if 40% of the people think that it's bad, are you supposed to tell those 40% that they're ignorant >> well, jim, i don't know i think that's not exactly what the president was talking about. >> the president was not clear. >> let's take a quick pause. i want to come back to this facebook versus the biden administration. >> where are you going >> i want to get back to the market for our viewers so we can sort of set things uas we get
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ready to trade 18 minutes or so from now. >> i just think -- >> let it snow >> well, ralook, today's the da. >> you're not going to step in and buy the cruise lines today. >> the cruise lines? did you read the lawsuit -- i mane, there was an overturn the appellate court agreed, did you read the lawsuit frank tolio filed from no rrwegian. what he said is we want to vaccinate everyone from the crew, be sure that everybody in the crew is vaccinated and be sure that all the tourists are vaccinated but the state of florida won't let them. >> right >> the state of florida is basically mandating that there be people on those crews that have covid i think that's a nonstarter. >> it becomes difficult, particularly given the level of infectiousness of the delta variant. >> right >> again, not morbidity thankfully you can get it very easily. >> you're either going to be --
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here's what we'll discover in the next four weeks. you're either vaccinated or you get it there's no middle ground anymore. and the breakthrough is dr. gottlieb suggested, is happening more aggressive than people realize. >> it's not being just practiced is what dr. gottlieb also says, and he'd like to see it. we've had a long time now to listen to a lot of different people in public health tell us things he's the best, i think you and i agree. >> and he's pro-vaccine and he's also -- what i'm waiting to hear is we have all these professional athletes who are getting it they obviously don't know they have it. >> and they get tested all the time, which is why they find out they have it. >> can we get back to the market >> yes >> okay. i am saying that the market rolls over it could roll over 3%, but take a guy like mike wilson who i like >> morgan stanley strategist. >> and he's now saying, listen, we got to get a little more defensive. >> okay. >> well, hello, david, the
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cyclicals have been rolling over for weeks, weeks, and now we get defe defensive? now is the time to locate cleveland-cliffs at 19 because the sells at two times earnings? now is the moment? david, it's -- >> he likes mondelez. >> mondelez has been great for weeks. >> to the extent the market is responding to this perception that economies are going to slow or we're not going to open as quickly. i don't know, we're fully open where we are here in new york. >> california. >> well, the key -- dr. gottlieb saying that's silly, in l.a. by the way, not california. >> he also says the third booster, no evidence we need a third. >> but the uk is fully opening today. >> even though boris johnson who obviously had a very bad bout of covid. >> uk's sending mixed signals. one of the things that's happening in europe is if you get covid they seem to not trust the antibodies and they're giving them another shot >> right, well, again, back to
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our man dr. gottlieb, he says you benefit because there's an enormous immune response if you had covid and get the vaccine, you are really truly protected. >> those are the people that are best off. >> less let me go back to facebook i'm being facetious, they are causing death, but facebook is the beginning of a word named fact, and the one part of this market that has yet to roll over is faang once faang has rolled over then you can buy because then everything will have rolled over that's the last bastian. and david, the reddit people, don't they get blown out the day that robinhood comes public? just because it's a little shakespearean. >> the reddit people meaning you're take ing a look at amc in general? >> amc should be hurt by the delta variant. >> and the big screen tv the big screen tv. >> has been around for a while. >> yes
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>> just letting you know that. >> we got to come back to him. >> i got to wait on that one i kneneed to digest that more. >> i just wanted to see if it's great. >> everything's great. >> a totally gratuitous comment. i do think once again if you look at the stocks that have been strongest, take apple, take nvidia nvidia, david, is down a quick h hondo. >> i see that. >> apple is rolling over being pushed by a subtle -- >> rolling over? it's had this incredible move during the month of let's call it june into mid-july. >> the last bastian this market is facebook, amazon, apple, netflix and yes, google, also known as alphabet. those are the last ones, all right? >> yep. >> and david, the one thing we're not talking about nearly enough. >> tell me. >> is the end of takeovers we haven't even mentioned nigh fie. >> no, which we are going to in the next block of our show, we like to call it the b block. >> exactly
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>> that is what we're going to focus on for this block of our show, we're talking about the markets but also i do want to come back to biden versus zuckerberg no other way to put it. >> that's good >> let's start with the president, this is what he had to say. >> callow youth, the novell la youth by conrad has everything that we need to know about this, pass the bottle. >> i will make sure to read that one when i have some time. take a listen to what the president had to say. >> covid information, what's your message to platforms like facebook >> they're killing people. i mean, they're really -- i mean, look, the only pandemic we have is among the unvaccinated, and that -- and they're killing people >> all right, see, david, that's what i meant about, you think it's more of a justifiable homicide what are you saying when you say that he's -- that he's not
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saying murder? they're killing people, is it vehicular? >> well, facebook for its part says the data shows 85% of facebook users in the u.s. have been or want to be vaccinated. >> oh, it's 85 >> not 84 or 86? >> and a gentleman named guy rosen said president biden's goal for 70% of americans to be vaccinated by july 4th, facebook is not the reason that this -- >> right back in his face. >> -- goal was missed. >> they were afraid of trump, but they were going right after biden. you and i like to come back to our man dr. gottlieb. >> all roads lead to him. >> who is on the board of pfizer. >> he's on the board of pfizer i wish we had had the foresight to make him the regular on our show instead of "squawk box. we always do listen to him be interviewed with becky and joe. >> every time. >> i thought it was interesting. they did ask him on this very subject, is facebook responsible to a certain extent and he had this to say. >> when you have a facebook page with tens of millions of followers or a twitter page where someone's a verified
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twitter user and has hundreds of thousands of followers, the social media platform has handed them a franchise they've basically given them a very big megaphone, and they've supported that megaphone by making them a verified user by promoting the page i think they're not saying they have an obligation for what appears on those pages at that point. >> he said yeah. he says that it's misinformation >> no, i think -- >> simply. saying that the vaccine kills people is not accurate >> no, but what gottlieb said in a further soundbites since i memorize everything, is it's very easy to spot the lies, and that's what zuckerberg should do today, when he does his thursday town hall, which i'm told are very meaningful. he should be saying you know what, we've got this wrong, and we're going to police everybody who says the vaccine, i don't know, creates some horrible disease. he should do that, and you know who he should hire >> who >> gottlieb. >>yeah >> no.
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>> it's not just pfizer and lumina i would put him the head of a facebook advisory committee to spot false things. now, twitter, no i mean -- >> why can't facebook just do that >> well, because -- >> why is it so hard >> they should hire retired federal judge or retired fda that's not gottlieb, gottlieb's got four other guys he talks to. or i don't know, hire fauci -- fauci's already exited, he says it's back, by the way. >> it does go back to the power of this platform, and it's obviously not just facebook but instagram as well, of course. >> you got to let twitter go just let them say it i mean, i thought that i was safe by talking about pickling, right? pickling cucumbers, no, what they want to do with the cucumbers personally with me i found was not about eating them. >> yes >> and then they immediately tag me because i'm pro-vaccine.
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>> how do you get tagged for being pro vaccine and pickling >> a lot of people felt you think you're so rich you can have a garden? >> i don't know what twitter can possibly do. >> twitter you have to let do whatever they want to do because it's anonymous i think that zuckerberg really right now should call us, which he won't do, and say, you know what, we are going to take action we heard gottlieb say it's easy to police, and we're going to name dr. hamburg, margaret hamburg to be in charge of this. peggy hamburg, the best fda person we've had on other than gottlieb. >> got it. >> peggy hamburg will now run the facebook covid analysis. >> it's not a question of whether facebook can adequately police it using its algorithm and actually just being able to fiebd find these things. it's a function of -- >> no one believes ai. you have to hire a person. >> one person? >> yeah. >> and then you had ai do everything. >> i see you make it like an ai call
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center oh, that's the b block. >> yes, we're going to get to that actually, thank you coming up, zoom video is making its largest ever acquisition it's an all stock deal we will give you the details let's give you one more look at futures, of course we get ready start trading in 17 minutes. more "squawk on the street" from the new york stock exchange straight ahead ♪ ♪ experience, hyper performance that takes you further. at the lexus golden opportunity sales event. get 0.9% apr financing on the all 2021 lexus hybrid models. experience amazing. jerry is here! j! mate, how are ya!? it's so good to see you. good to see all of you, yeah! why is jerry so... popular? it's been like this ever since we started using workday. what do you mean? it makes it easier to develop great relationships with our suppliers. now everyone, everywhere loves jerry.
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welcome back to what we like to call the b block of our show, referenced it earlier, a, b, c, d, we get all the way to like g, don't we and then we start again. let's talk about this deal, because it's a fairly large one. zoom doing the by far largest acquisition. let's me go through the particular, buying 59 all stock deal if you're a five nine holder you're going to get 0.5933 shares of zoom at the open or at least prior to what may be a decline in zoom shares that was worth about 200 bucks, about 200 bucks, but we'll see, jim. they're saying it complements their growing offering, of
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course, but it is a different vertical it's always interesting to see a company. there are partners, loose partners but they've been partners for a listeniong time. >> some will view it as a great opportunity for zoom to broaden its business others will say are they running out of growth in their key business and therefore do they need to do that. zoom not going to decline that much premium not as large as some might have anticipated for a high growth company like five9 deal's going to close they can want at least first half of next year. >> zoom is one of those stocks that, again, rolled over a long time ago, and yet they still want to shockingly give out stock, which you could argue the stock was, you know, you wanted to do that when had the stock was at 572. >> true. >> although it's still $106 billion market value company. well down from its highs but where it was prior to the pandemic. >> contact center combination ai
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very, very powerful. i know that rate central is up against them that's another company that people say rate central, what the hell is that it's another big company that has video and also has call center you could argue that what cisco's doing, they could be doing their own call center. i think this is a deal that a lot of people are going to say zoom had to start doing something else other than being zoom it's viewed as a one trick pony. >> use the opportunity that's been afforded you by a stock price that even to your point is down from its highs is up dramatically to broaden your business to acquire something else, conceivably makes sense. at the same time, some of the valuations overall are so high i don't know what zoom's current multiple is, but i'm always reminded of, you know, jds and sdli. >> oh, my god, jds, just don't sell us. >> it was all stock, it was all air.
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that's not saying this is the case here, but it just reminds me of that time, late '90s. >> never trust a ceo who wears a beret. >> you didn't like him come on. >> no, no. so listen to me. listen to me. >> our producer chip knows everybody's name he remembers those days. joseph strauss. >> strauss, all right, all right, let's take a look at this david this is how alien tech has become to people the reason why people like this deal is because of cbccaas people are calling it -- well, it's actually ccca -- it's cloud-based context center as a service. >> cloud based contact center as a service. in other words, it's cloud base native, ask david, the go to market strategy is excellent >> got it. >> over $24 billion tam.
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>> yeah. >> that's how this deal is being sold itto people. i think zoom needed to have another way to attack and they got this i want to see how ryan trollop does as the ceo. >> yes, but he's going to move and run this unit as a unit of zoom. >> he ran the cisco unit, and then he ran to this. eric dewan very similar, by the way. these are very smart guys. >> no relation to the author trollop, right >> i did that the first time he came on. >> did you >> i said are you related to trollop, and he thought it was not funny one bit. it was a real bomb i should have just -- i shuf moved on. >> i think it's always worth going with the literary references. >> people mhate my literary references. >> they don't understand them. >> many of them are ignorant. >> those are the vaxx, anti-vaxx people, the killers. >> up next it's his mad dash his that he was talking there, i was not, okay, on twitter, and
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like you become an agent of innovation with invesco qqq joining us we are going to have a down open it would appear, over 1% at least on the major averages. >> it will be down 2% europe, too. if you want to buy it, just wait until you're closed. i would -- that would be your first chance i want to talk about a very good piece of research. >> yeah. >> goldman is upgrading qualcomm sell to hold now, it turns out that this gentleman added qualcomm to
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america's sell list on 16 april 2020 it's since then up 82% versus the s&p up 55% >> that was suboptimal then. >> yes, because he was saying sell into that. >> yeah. >> so do we now say this is a good time to go to hold? no this is when you say sell qualcomm why? because a lot of things happened last week. people don't even understand there was a conference call, taiwan semi, david, that was the call which just said, you know what there's no more tightness. there's a peck a semihaul. qualcomm's related to apple. there is no fight right now with apple. >> the pieces broken out everywhere with them. >> right, but taiwan semi is no longer tight on everything they've got space. in the meantime, intel data, which did steal a top executive from mellanox by nvidia, over the weekend intel doing something that i think is exactly the opposite of what our regulators want, which is buying global
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>> well, we don't know we don't know. >> we do know. actually, we do know >> we do >> it's one of the most stupid things i've ever heard. >> my point was we don't know that they're going to follow through and do it. >> but think about it, even under anybody's interpretation. >> yeah. >> anybody's, it's wrong so david, the lawyers behind that are shar letons. >> i want to talk more about that you were not here on friday when we discussed that. >> you can't do that, everyone's going to complain. but pat gelsinger continues to take bull action he is, yes, full of sound and fury and signifying -- >> nothing really nothing? >> macbeth holds up like you wouldn't believe you know -- >> we'll see if qualcomm holds up very wives of windsors does not hold up. >> remember, you can always
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. welcome back let's give you a look at what we're expecting about a minute and a half from now when we get ready to open. you've been pointing out, we're going to be down as much as 2% we'll see where we actually bottom, jim. there it is, 51 points in the s&p, and 500 on the dow or so. i'd like to ask you, you know, when our partner's not here, kind of go back to our old days, what the key to this market is i think you already may have referenced it. >> you need to see faang all over, it's the last, it's the best, and that's where it's starting to dawn on a lot of people that the market's heading lower. david, if you own stocks instead of just being an index player, the index being heavily dominated by faang these days, you would realize that we've had a slaughter. a slaughter. >> underneath the surface, i mean, i pointed this out at the end of last week
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health care, biotech index, horrible there have been some real -- as you say by the performance of the stock that you're looking at right there, which by the way are the largest multicap companies in the world. >> i do want to point out the absurdity of what's happened you take a company like clevela cleveland-cliffs, okay, bear with me for a second it sells at three times this year's earnings. that's a sign that people believe their earnings are going to collapse, of course when you see goldman selling at eight times, people believe that's going to be a down year i don't think that i think they had a great quarter. you voted jpmorgan jamie dimon must be astounded that his stock has rolled over so big since they reported it. >> we're going to get back to that in just a second. tell people who did the honors here you can see the realtime exchange as we might expect. a lot of red on that board builder's first source it's transferred to the nyc.
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nasdaq, biopharmaceuticals focusing on rare diseases. jpmorgan reported results almost a week ago and the market did not respond positively. >> no, because the -- >> people just think that with the ten-year where it is it doesn't matter what jamie dimon says or does now it's not like the old days. >> no. >> statistically significant index anyway i do want to see where we are. >> the ten-year is to some people frightening because it's signifying something they don't know >> 1215. >> is it signifying that because we're blocking asmlf from selling big machines to the chinese, machines for semis that therefore they have to take over taiwan semi? do they have to take over taiwan, is that what is being signaled
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or is it that the variant is crashing through, breaking through to so many people, and the tokyo olympics are scaring people. >> but the breakthrough cases if you've been vaccinated, thankfully, you're not going to get -- you're not getting sick 99.5, something along those lines of hospitalizations are people who have been unvaccinated maybe it's 98, 98.5. >> but look, zoom video only down 5 is not bad. >> no, doing all stock deals we just told you the stock is only down 1.6%, which obviously will impact the overall value of the deal, but still let's call it around a $14 billion all stock transaction for 59 not a lot of green on the board as you might expect, but merck is one of the names. i do come back to it so aoften. when we talk about the delta variant, we talk about antivirals, and they have one of the key ones because i followed its progress very closely. >> regeneron has something, too, but regeneron's dropped off the face of the earth.
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>> they're in phase three, they've had good -- you know, they were halfway through a trial in india that has seemed to go very very well they obviously are still enrolling people around the world for the antiviral that really could change the complexion of the virus. for those even who choose not to get vaccinated, who unfortunately get it, this could be something you take if and when it is prapproved if the phs three data is as good as many people expect it to be and sort of done. we don't have to discuss this anymore. >> you get a red sox game canceled, you see a tremendous tennis player not being able to go, you start to think maybe this is worse. but these people are all tested, they're asymptomatic, and they feel good. >> they're not getting sick. >> we'replaying to keep people out of the hospital and from getting really sick or dying let's not forget that's what you're -- >> the death rate has not gone up they are people who feel the death rate is starting to go up. stats don't show that. >> it doesn't show this variant is any more deadly than anything
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we've seen >> i just keep coming back, let's take boeing, which i thin is going to have a terrible quarter. boeing is straight down. is now the time to begin to worry about boeing, do an equity offering, maybe get stock at 200? there are stocks that are leading this market, and they are called the utilities, and david, there's utility that elliott is not happy with. >> i love your segues sometimes. did you see me picking up my duke energy stuff? let's talk about it, jim, i know you know the company fairly well, duke we came back to this a few months ago on the 17th of may. that's when duke a actually put out a response to elliott's announcement as well came out pretty strong, instead of saying, hey, elliott wants us to try to split the company. i think that's a big mistake. >> elliott's waited a while. they tried to have dialogue, my understanding is they haven't really had much. they have engaged with a lot of
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shareholders they came out with a hefty letter and really, you know, again, duke shareholders should read it they basically seem to be saying this board's got to be held accountable. yes, over the short-term the stock has performed well not over the long-term their track record in stock performance, their ability to create value in businesses outside of its core footprint in the interest of duke's leadership and board being in line with shareholders they particularly reserve a lot of enmity if you want to call it that for the lead director of the company at this point. their lead independent director has meaningfully exceeded duke's recommended retirement age and tenure we struggle to understand how the lead independent director role could not be filled by a more qualified candidate that would hold uke's management accountable. not a lot in this letter about any plan of breaking the company into three it's much more simply about their focus on what they say is a lack of execution and they cite a lot of anonymous quotes if other shareholders saying the same and the frustration they've
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had over a long period of time >> well, i know that they've not really gotten away from coal the way that some others have. by the way, if switching to coal is so aggressive that it's going to begin to impact the railroads, and that's because coal is so much cheaper right now than natural gas because we export natural gas. >> you're talking about switching back to coal, use of coal, not good for climate change. >> no, no, if you believe in climate change. >> if you believe in climate change is that the same thing, like the anti-vaxxers. >> i have enough people attacking me i don't want the people who don't believe in climate change. >> you got to just try and speak facts. >> right but i'm just saying -- >> climate change is real. >> people going after people -- >> and they're two of the best performing stocks, so why don't we go after companies that are performing poorly? >> elliott would say that, yes,
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the long-term -- you know, saying that they performed well -- i'm just looking for the actual line, the 3% unaffected outperformance over 12 months after years of sub par returns and self-inflicted setbacks hardly supports the claim that it is performing at a high level. >> maybe it's performing at a high level because people noel y noel know elliott's in there. >> the window for nominating director is a long time away elliott's going to be in there. >> you can expect it would seem to me if they don't get what they're looking for, that a proxy fight might be in the future that is quite some time down the road. >> can i just point out, please, crown castle if you look at crown castle, it's been one of the greatest performers there's a guy jay brown, he should be like a dj, you know, jay brown who basically fought elliott and then quietly gave in and did pretty much everything that elliott wanted, and the stock every since he caved has
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gone from 146 to 203, and he -- it adopted all value, but never embraced elliott. >> right >> i thought it was fantastic. >> elliott's fine with that, by the way. they don't necessarily need -- all theycare about is money. >> that makes them sound so -- that makes them sound like a hedge fund or something. >> yes but i think what they did with crown castle is what they really want they're not saying, listen, we don't -- we want to be told that we deserve the congressional medal of breakups or something when you look at crown castle, they had the read -- on towers i find them dead right on many, many things. >> a good point, and important to point that out. elliott's had some missteps through the years, but that one has certainly been -- >> do you remember -- was an odd -- >> that was so strange, plus the
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letter and his dismissal from the company and that was suboptimal as you like to say. >> it was ill-advised at the same time. >> yes, ill-advised too. >> did you read the taming wall by gary gordon from yale it talks about tether being $62 billion stable coin and saying it's basically unstable crypto goes down a great deal. i think people should be following crypto we should put dick quinn in the lower right-hand corner. bitcoin is another one of these weaknesses here's where i think the peak is going to come, when the robinhood deal. >> actually hits the market, $35 billion market value they filed their amended s 1 we've already read through that. >> where we understand their business, which we already had which is pay for order flow. 85% of revenues. isn't that the number? >> 20 to 35% of the shares, david, will be allocated to
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customers. now, are they being strong handed or weak handed? >> i don't know. there's some of the same customers, amc in particular, jim, has been making that move down to perhaps some would say a more rationale -- >> they did have a nice rally on friday to avoid the july 30 strike. >> they did. >> i wish bed bath went on that list, doing well sometimes we throw things on there. speaking of coming and going, bill ackman spac plan to not be a spac anymore and to buy a significant stake in universal music, which of course is going to be its own public company fairly soon, gets derailed by the s.e.c., at least so he says, that it was their opposition to the structure of the transaction. >> right >> o'yowhy put words in his mouh do we have mr. ackman's comments about what happened? let's take a listen.
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>> before we sign the deal, the s.e.c. came to us and said we have some concern about whether remain co., this entity we were creating was going to become an investment company in order to address the concern we changed the structure of the deal to provide that we were going to contribute the stock that we purchased to a trust, ask we thought that would address the issue. then we signed the deal, and then we pushed forward with the transaction, and then actually in the last -- this week, the last few days, the s.e.c. raised i would say a deal killer, which is they said that in their view the transaction did not meet the new york stock exchange spac rules, and what that meant, i would call that a dagger in the heart of the transaction. >> one of the key questions that i had gotten, and you know, obviously spent a lot of time trying to figure this out when he announced it. it was a -- creating a new entity, a warrant, a spark, mr. ackman doing things that were very creative. one thing that some people
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didn't understand is was he really giving his investors something that they couldn't already do on their own. jim, if you wanted to actually create universal music there was a way to kind of do it you would actually buy -- and sort out a lot of the components remember, they own stakes in a lot of things. and there was a way to kind of short the stub so to speak, and then therefore own what would be universal music. and that was certainly one of the questions. it's over now. he's gotten the largest spac out there trading right around where it was issued, 20 bucks. >> he did basically say can we just -- not that he's elon musk and not that he'll agree with what i'm about to say, what he basically said was the s.e.c. was unsophisticated, did not understand the transaction. >> he did try to imply that. >> basically saying the s.e.c. were frankly over their head, didn't understand the trust. didn't understand how well the deal was thought out and how
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clever it was, and basically said the s.e.c., well, kind of like what musk thinks, without tweeting what musk thinks. david, pepsi is the stock up the most they had a great quarter, and the ones that are down the most are the banks because again, of the ten-year. >> the ten-year's at a level it hasn't seen since february >> mondelez recommended by mike wilson is up and adobe's one to watch, it's a giant company, but it's not down. >> to finish the thoughts on pershing -- >> i'm sorry >> no, there's the ten-year. we'll see what he's able to go after. there's going to always be speculation, don't believe it if it involves bloomberg from everything i hear, that is not going to happen. jim, we had adeal between at&t and dish and mvno. >> how's that going? >> this morning. you know, remember, dish of course was trying to create a nationwide 5g network. don't hear that much from them these days
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they did file an ak discloedsing a new nonexclusive networking services agreement with at&t it's got a ten-year term, and it will be provide dish subscribers, one day they're going to move them on to this 5g network, it doesn't exist yet. they have a deal with t-mobile in place t-mobile's booting a lot of them off. now they're going to be paying half a billion a year over ten years. who's the big loser here citi says we view the deal as a negative headwind on t-mobile wh wholesale revenue. a net positive for dish, while it builds its 5g network ask a mild positive for at&t, but did want to share that. >> yeah. i don't know if you want to talk about -- can i talk positively for a second about this market? >> please. >> i'm going to give -- i hear that i'm not talking positive about at&t, so a lot of people wake up today and say, wow, the market
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is really beginning to rollover. >> the s&p is down 1.1%. >> it's gas. the market is at gas what was the best performing stock this year? >> this year >> yeah. >> was it nvidia at one point? >> yes, nvidia nvidia was at 827 a couple of weeks ago, all right so then it drops to 727. >> right >> now, that's a bit of a rollover, and nvidia is up ten what i'm saying is there are many stocks that were precursors to the so-called, wow, be careful, everything's rolling over, and those have all -- the ones that have already rolled over are starting to do better that is a very good sign for the market. >> okay. speaking of that broader market, let's get to our bob pisani who's got more for us. >> we've got two problems. we're all living in a post-vaccinated world and the vaccine will not go away that's a problem second very high valuations leaving the market vulnerable to a downturn
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those problems are colliding today. look at the sectors, the weakness is in the cyclicals, the stuff that did really well on hopes that the global kpli would be reopening energy is weak, banks are weak, techs in the middle of that, consumer staples, defensive name doing a little bit better. this makes a little sense. the downside leaders, they're all cyclicals. you see the cruise lines, you see airlines you see copper stocks, you see the oil stocks like schlumberger all week generally these are characterized as cyclical names. the market internals we've been talking about this for a couple of weeks traders have had a problem with the way the market's looked. the momentum, the percentage of stocks above their 50-day moving average, momentum indicators have been slowing, breadth has been weaker. the advanced decline line has been weaker. new highs have been kind of crummy in the low single-digits, 10, 20, 30 in the s&p 500, that's not much at all given the fact the s&p is near a new high. the other thing of course we've been talking about, we did this last week, small and medium-sized stocks have been
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underperforming really since april or may look at the russell 2000, it's 10% below its recent 52-week high the s&p mid cap is 8%. the dow transport is 12% this is a little worse today, but this was going on for the last couple of weeks we've been talking about it it wasn't like these weaknesses appeared out of nowhere. active traders, call active traders, they'll tell you this is a really tough market to make any money in they've been saying this for weeks. lowry over the weekend, oldest technical analysis service in the united states has been reading their work for decades they say the body of evidence reflects an investing environment where it's difficult to find attractive stock to buy whether from new money or cash raised from the pruning of weakened stocks. this is an intellectual way of saying boy it's been hard to make money in the last few weeks. the good news is, earnings, which had better be really good had been good. you see what's happened today, look at auto nation. used car sales are crazy same store sales up 54%. that's not a typo for auto nation they've reached huge repurchase
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program, 15% of the stock repurchased year-to-date they're doing more throughout the year so that's going to keep going, and the ceo says demand continues to outpace supply. auto nation, flattish right here, tractor supply had amazing numbers, 8% beat, the comps were up 10% they raised their full-year guidance from 5 to 8% up from 11 to 13% great numbers. wait a minute, the stock's down 16%. why is the stock down? these stocks are expensive this used to be -- tractor supply used to be, you know, 20 times forward earnings, somewhere around there, 18 to 20 now it's 24 to 25 forward earnings david, that's a problem. the multiples, you cannot have high multiples or hope that multiples are going to keep going up when you're at an earnings peak. they might still be going up for earnings, but they're decelerating that means generally lower multiples when they're really high, like way above historic norms like you see with tractor
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supply, you've got a problem even with terrific earnings. those multiples, david, right now even at 20, 21 times for the s&p 500, that multiple is under some risk right now. back to you. >> remember when tractor supply was the key to this market. >> tractor supply is a fantastic company and it's also the key to people who move out, the hybrid people who go to the country, and that was a fantastic quarter. very little volume. >> yeah. >> before we head to break, let's give you another look at a one-week chart of the ten-year note as we pointed out, of course a number of times this morning, the yield is down you can see dramatically, 1.21 this of course also amidst that fall in stock prices by the way, let's finish with a two-month chart of the dollar i think -- index there you see that coming up right there, just down a bit we'll be right back.
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over 1.5%. nasdaq not quite as much, but of course we are down significantly. nvidia perhaps helping as jim pointed out, up 4.5% -- >> a lot of companies have been rolling. moderna didn't but i'm just saying it's late in the game to say, hey, look out, we're about to have a huge fall. 3%, yes, maybe i'm looking at very good stocks. >> we will look at them and get ready for "stop trading" because that's cinupexomg nt. -well, audrey's expecting... -twins! grandparents! we want to put money aside for them, so...change in plans. alright, let's see what we can adjust. ♪♪ we'd be closer to the twins. change in plans. okay. mom, are you painting again? you could sell these. lemme guess, change in plans? at fidelity, a change in plans is always part of the plan.
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welcome back adds promised "stop trading." >> david, a remarkable job at amc. since he declared, said he wasn't going to issue more stock, the shorts have gone after it aggressively because they knew if you issued stocks you would buy back the bonds too much debt. there are a lot of people in wallstreetbets who make fun of me when i say hold when i really mean that's what they require of themselves as braveheart who won in praf heart? exactly. that's why i'm saying amc with this new variant i think you probably want to stay home,
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watch the big screen with your free popcorn, even though you also get free popcorn if you own shares at amc. and "mad," second rate chewy, and first horizon which had a good quarter and did not forecast well, a tennessee bank. look at that will you look at that list >> barkbox coming on >> well, yeah, because i love pets, the humanization of pets is one of the greatest stories ever, particularly my dog nvidia the ii >> i'll see you later. you have a good day. >> yeah. they love me on twitter. so great. >> they do nobody is loved more than you. we are staying on top of this morning's sell-off, by the way, so keep it right here.
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♪ good monday morning and welcome to another hour of "squawk on the street. i'm david faber with leslie picker live from post nine at the new york stock exchange. carl has the morning off morgan brennan is live in van horn, texas. this ahead of tomorrow's blue origins launch, of course, where
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jeff bezos will head into space. we will have more in just a moment first, a check on the markets a half hour into trading we are down on all the -- that's the lows that's the lowest in the first half hour with the s&p down 1.7% you see the dow down almost 2% nahp data out moments ago t diana olick has that for us. >> david, home builder sentiment dropped one point to 80 on the nahb wells fargo housing market index lower than expectations. it was 72 in july last year. it hit a record high of 90 in november of last year. now, the home builders are citing elevated prices, land, labor and materials continue to push home prices higher sidelining some buyers lumber prices have fallen more than 50%, shows savings have not
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trickled down to the builders remodelers or consumers. supply chain issues as well as inventory with suppliers are keeping retail prices elevated of the indexes three components. current sales conditions fell one point to 86, buyer traffic six points to 65 and sales expectations in the sex six months rose two points to 81 sentiment fell everywhere except in the south where it was unchanged. >> remarkable. thank you for that we are 30 minutes into the trading session. here are the three big movers we are watching today starting with zoom video making the large et cetera ever acquisition buying cloud-based operator 59, for $17 million in shock. down 4%. autonation revenue also above consensus with same store new car sales up 42% over a year ago and used car sales up 37%.
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still that stock little changed on that news and we'll end with crude oil below $70 a barrel with opec plus reaching-a deal on sunday to phase out 5.8 million barrels a day of oil production cuts by september 2022 david. >> thank you all right. we have got a big market day here let's turn to that by bringing in our senior markets c commentator mike santoli on a sell-off so far. >> sure is deep one by the standards of this year for sure, david. really a lot of the themes we have been pointing to for a while are sort of reaching the headline indexes mainly it's been a narrow rally this last phase, the average stock underperforming quite substantially. the equal rated russell 1,000 over a couple of months, it's a big performance spread that shows you that there was a lot of culling of the flock happening basically at the average stock level while you had had a few big megacap growth stocks disguising that weakness at the s&p 500 level also cyclical and small cap
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stocks have been registering this concern about global growth for quite some time. talk about-transports, materials stocks, home builders, banks, 10% below the highs for this year that shows you you there have been rolling corrections going on beneath the surface for some time and maybe it's now due to reach the s&p at least in part we also have a plausible growth scare story that's pressuring treasury yields with covid cases going up especially globally so that seems to fit into this idea that we are in this weak seasonal period. taking some off the table. how deal does any pullback have to go? something like nine or ten months since the last 5% pullback in the s&p. 5% pullback, 2% town from the levels we are at now and that would take us to mid-april levels that really did cap the market for a couple of months. in fact, guys, things like small caps, things like energy stocks are already looking oversold
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even though the s&p is only 3 to 4% down, people will say, wow, a lot of damage done already if you are inclined to say we can have, like, a rally later in the year, this is presenting some discounts if nothing else. >> i don't want to make too much of it. to this point of being oversold, the year's best performer nvidia then it sold off it is up over 2% right now, obviously, bucking the broader trend. >> right so the muscle memory is buy the reliable secular growth. i don't know if we want to say nvidia can carry the market but apple has actually had one of these moves to the upside that is giving some back now which is really not about what was going on at apple. they are viewed as massive stable profit pools. we will see if that happens. i think treasury yields are too low for comfort. it's good to have treasury yields down maybe make a good prompt for the growth stocks to work, but you don't want to see a buying panic in treasuries which means global risk aversion. >> you call it muscle memory
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let's bring in nest nation wealth founder michael we have mike square here thank you for being here delta threat, how big of an issue to the market as you see it right now >> i think it's a big threat i think that more so i think there is really a gathering of multiple hends th headwinds there is potential income tax increases, valuations have been stretched and i think there is really just way too much euphoria in my view that the economy is going to open wide open try to book a ticket to asia right now, see what's happening in japan in terms of the olympics so i think the delta variant as well as these other issues will cause problems for the market. that's why we have been concerned and why we've been expecting a 10% correction as mike pointed out some of the markets have corrected 10% >> in terms of more traditional safe havens, the ten-year 1.2%
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we were talking about, would you recommend that investors seek those right now? >> no. i don't think so i think 1.2 is really, first of all, the bond market is saying that the equity market is way too optimistic secondly, it's probably not the thing to do, is to chase down assets that are already in a tremendous buying pressure, such as the ten-year treasury 1.2% think about that instead do to rotation i think it was talked about earlier this morning on cnbc, there has been a rotation from value to growth, growth to value. i think it's a time to reposition the portfolio strategy with some of the areas that have gone down this 10% area, maybe in the banks, maybe in certain technology companies that have lagged i think that's what you want to do, not panic and selling everything out into treasuries because the market, even though slowing, is still fundamentally okay
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>> yeah. michael, we have a -- we saw 1.19 on the ten-year inflation is 5.4%. 5.4% you know, which is not sustainable, i guess, is the question >> well, that's the whole point. is it transitory as janet yellen was pointing out the other day if delta continues to accelerate and you continue to have warnings like they said in los angeles, concerned about people traveling to las vegas, for example, because of the spike in covid, that's going to continue to slow the economy. so i think that inflation, even though it is at 45% right now, look what is happening with oil right now. many of the inflation drivers, lumber down 50% as was just mentioned, i think you will continue to see a push back on that inflation number. wait in three months, david. that's when it will matter we know inflation will be high for the next 60 or 90 days.
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>> mike, you are a student of market history as you look back to 18 months ago, how do you see comparisons to today with fears surrounding the delta variant with what we saw in the early, early stages of the coronavirus pandemic back in, you know, that february/march timeframe >> first of all, i think this is a little bit more of a fear that we're not clear of it as opposed to a return to those exact circumstances. nobody really thinking we are talking about global lockdown. we have been through it. the market is incredibly liquid. we were up 100% on the march 23rd low of last year. it reminds me a lot of the -- reminds a lot of people a lot after the 2009 market low. global financial crisis reaches a crescendo, market is up in 2010 and as we're up there excuses to have a correction oh, european sovereign yields that's a concern, look at greek spreads.
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all these things made it feel li like, oh no, we are back in the financial crisis and we weren't. the market just had to digest that possibility that we got a little too overoptimistic on the front end. >> how long does that take >> it took a few months. you got a 10 or 15% pull back. nothing says it has to be as long or deep as that because of the policy stimulus now and we are dealing with things we can chart well as to back then it was unclear if you had a policy response to some of those issues. >> given some of these dynamics, do you think this is an opportunity to really buy on a dip and if so how should investors be allocating, buying into stocks that are less exposed, say, to a reopening trade or should they kind of take that as a price correction that they can really benefit on, benefit from later >> so, as usual, when economies are basically strong with low interest rates, i think buying in the dip makes sense
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i think what you have to be careful though, the reopening trade is already pretty expensive. even though they have corrected down and stocks down 5, 10%, they still rallied a ton in fact, look at zoom today, they know that that's why they are using their stock to make abacquisition because their stock is up a tremendous amount. i think what you want to do is make a list of the sectors, the names you have been looking at and keep that list handy maybe you have a list of 20 names or so. maybe four or five sectors, whether it's health care, financial services, technology, and then just watch the market and when the market bumps down on these kind of days, a 600-point drop, 1,000-point drop, when the market bumps down you drip into some of these names that have been chiseled out because of some of the delta fear, that's the way you make money in a sideways market by repositioning your portfolio
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when the market isn't sideways anymore. >> now down more than 700 points michael, mike, thank you both so much for joining us. appreciate it. >> let's get out to morgan brennan. she is down in texas ahead of that blue origins launch tomorrow morgan >> hi, david well, the market may be down but one thing is poised to go up and that is blue origins' new shepard capsule. currently a go for launch tomorrow a new chapter for blue origins as jeff bezos gets ready to travel to space. this will kick off commercial service for the suborbital space tourism segment. this is also a lifelong dream for bezos who founded blue origins in 2000. if it goes according to plan it will make history. two crewmates, wally funk and oliver daemen, set to become the oldest and youngest people respectively to ever go to space and because daemen, who took the spot after the winner of that
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$28 million auction postponed is a paying passenger, that, too, will be a first for a u.s. company. so here is how the crew is preparing for this 11-minute autonomous journey on new shepard. two full days of training. they started yesterday more today just north of here at the launch site where they are also bunkering an air stream trailers, which is a nod to the mercury-era astronauts i got to go inside that training facility yesterday where bezos and the crew have their own personalized materials they even have coffee mugs and i climbed inside that simulation capsule to get a sense of what tomorrow's flight will be like >> engine start, one so six seats in reclining position built to evenly disu.s. beaut the force of accelerate to go mack three and the gravity on the way down which is about 5g's
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or equivalent to a really fast roller coaster there are panels that are giving passengers real time data on the flight big windows comprising a third of the capsule three minutes of weightlessness is expected unbuckled from the harness, lots of places to hang on and float as i saw myself yesterday. the trip is expected to exceed the internationally recognized start of space, the karman line, to an altitude to 65 miles higher than richard branson and virgin galactic. launched vertically by reusable rockets. blue origins head of astronaut sales who took me into that simulator telling me the some is autonomous so the passengers can enjoy their time in space but because they believe that computers are ultimately safer than humans when it comes to flying something like this to those altitudes. so new shepard has already flown 15 times this will be the first time with people onboard and, guys, i also
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asked cornell about the com company's future launch plans. what she said about pricing specifically is going to be coming up later in the hour. david. >> okay. i want to hear that because, as you know, morgan, i am thinking about it long and hard i want to know where that price point is great stuff. look forward to a lot more as this hour goes along as well still to come, a closer look at facebook fighting back at the white house over vaccine misinformation and you can take another look at the overall markets right now. the s&p is down almost 1.8%. there's interest you accrue, and interests you pursue. plans for the long term, and plans for a long weekend. assets you allocate, and ones you hold tight. at thrivent, we believe money is a tool, not a goal. and with the right guidance, you can get the financial clarity you need, and live a life rich in meaning, and gratitude. to learn more, text thrive to 444555,
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what's your message to platforms like facebook? >> they're killing people. i mean, they're really -- look, the only pandemic we have is among the unvaccinated and they're killing people >> that was president biden last friday attacking facebook over the social media giant's handling of the vaccine misinformation julia boorstin now with more julia. >> well, leslie, facebook is hitting back and calling on the administration to stop finger-pointing facebook's vp of integrity writing in that blog that facebook is not the reason that the administration missed its goal of vaccinating 70% of americans by july 4th. facebook saying vaccine hesitancy among users ha
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declined with vaccine acceptance among us users the social platform growing from 70% in january to 85% saying they have been vaccinated or want to be vaccinated. facebook explaining how they have been playing defense, pulling down a total of 18 million instances of covid misinformation they have also labeled and reduced the visibility more than 167 pieces of covid content debunked by their fact-checking partners, saying they have been playing offense. providing a vaccine finder tool, which 3.3 million americans have used to find and make an appointment. and theplatform has been directing people to information that more than 2 billion people around the world have viewed about the pandemic as well as the vaccines since the pandemic began. and more than half of the people in the u.s. on facebook have seen someone share that they have been vaccinated in a frame that people can add to their profile picture. facebook developed this with the cdc, department of health and
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hup services this fear pressure is effective in reducing vaccine hesitancy. facebook saying, quote, these and other facts tell a very different story to the one promoted by the administration in recent days guys, back to you. >> julia, is there any sense, at this point is seems like it's a war of words is there any sense that additional regulation is being considered or is facebook preparing for the potential to have additional scrutiny as a result of these war of words, and clearly the administration is unhappy with how things are going despite, you know, what you laid out there in terms of what facebook has been doing >> yeah, you see additional scrutiny, we remember that facebook is already under so much scrutiny. there is the looming threat of privacy regulations, something that has been talked about for a while. there is this question of whether content on the platform is biased. there has been a lot of concern about -- from the -- from one side of the aisle about biased
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information, other side of the aisle about the wrong type of information, this information being spread you have both sides of the aisle concerned about the type of information that can spread vie rally on facebook. and i think that that has been an undercurrent in a lot of the antitrust discussions that have been held as we have those six proposed bills that are under review right now this question is should a company this powerful be able to influence the type of content that people see, especially around the news. so i think that there are so many different layers here, leslie, in which facebook is being scrutinized. and i think that this shows that not only is it a bipartisan push for regulation from an antitrust perspective on capitol hill, but now you are also have the support of the biden administration and it seems to represent a big shift from the early days of the biden administration where there seemed to be more ever a push to cooperate with facebook and now they are taking more of an
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adversarial approach. >> is facebook's decision or failure in the view of the administration to crack down on certain misinformation because of their decision-making about what constitutes misinformation or crosses the line, or because they simple le don't have the ability to fully police the site in the way that perhaps people would like them to >> well, that's a very complicated question, of course, david, right, because, of course, facebook says that they are doing everything in their power to crack down on this, but this is a whack-a-mole situation, right facebook i think is constantly drawing and redrawing the line of what counts as misinformation and what doesn't they have, obviously, tens of thousands of employees focused on this as well as the algorithm. as we have seen in the past, if it's a whack-a-mole situation, you will never be able to eliminate all of it. the question is, are they doing enough facebook says they are the administration says they are not. >> the key word what does enough mean as it pertains to the
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facebook side versus the administration side. as we head to break, the biggest laggards on the nasdaq 100 marriott, down 5.4%. trip.com down 4% you can see a lot of the companies that benefitted from the reopening, selling off today with the rise of the delta variant as an increasing concern among investors. we'll beig bk. ayitus rhtac - [announcer] at southern new hampshire university, we never stop celebrating our students. from day one to graduation to your dream job,
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time now for our "etf spotlight. a guest "etf spotlight." phil lebeau is looking at the airlines under pressure amid today's sell-off phil >> david, the big concern for the airlines and airline investors is what kind of an impact the delta variant as it continues to spread will have on leisure travel here in the u.s. as well as the beginning of the return of corporate travel we heard from a lot of the airline executives look at the airline stocks, by the way, they are down anywhere between 4 and 7% we heard from ed bastion last week saying they expect to see more corporate travel, especially into the fall does that perhaps change if we
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see more outbreaks of the covid variant, the delta variant as you look at the passenger levels, they are down about 21% relative to where the industry was back in 2019 and it's plateauing in that down anywhere from 15 to 25%. it's been like that most of july look at the jets etf and this is a reflection of what we have seen not only with on the jets etf but with the airlines stocks. they have been pulling lower the last month, month and a half don't forget, tomorrow we hear from united airlines after the bell we will get the q2 results and we will be talking about scott kirby late they are week, get some perspective from him in terms of whether or not things change with their expectations as we see more of the delta variant popping up around the country. leslie, back to you. >> yeah, certainly well timed earnings reports this quarter. thank you. as we head to break, amc under pressure, down more than
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7% this meme stock down more than 40% since the start of the month but still well off its lows from a little over a year ago now we are back in two minutes
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welcome back i'm rahel solomon. here is your cnbc news update. a group representing pediatricians in the u.s. is recommending that everyone in the nation's schools wear a mask even if they are vaccinated. that advice from the american academy of pediatrics is stricter than the cdc's guidance that only unvaccinated students and teachers wear face coverings. just three days after leaving san francisco for the olympics, an alternate member of the u.s. women's gymnastics team has tested positive for covid in tokyo. the rest of the team moved to a different location as they continue preparations for the
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games. the biden administration says that china was behind this year's hack of microsoft's email exchange server software officials say that hackers affiliated with the government are behind some ransomware attacks. after spending 20 years at guantanamo, a prisoner has been transferred to his home in morocco. the biden administration is trying to close it down. you are up to date back to you. let's get a check on the markets today, still plenty of red on the screen. we are looking at the dow off of its lows, still down 744 points at this point in time. 790 opponents at this point in time the s&p down 1.8 nasdaq down 1.4. the russell, the real underperformer here, down 2.5% the biggest laggards on the s&p, carnival, occidental, norweigian cruz, tractor supply down 7%
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there, david. >> yeah. as you might expect, of course, oil with the opec deal and some cruise lines as well. let's continue our coverage of the markets whether either the growth or inflation outlooks are what is troubling the markets. steve leishman has a forecast for both in the cnbc rapid update steve. >> good morning, david the cnbc rapid update showing some modest erosion of growth due to inflation but overall the forecast is for strong gdp in the quarters ahead and declining inflation. that is to say, wall street forecasters don't seem to be embracing today's sell-off in stocks or pessimism in ponds having to do with inflation or growth the average forecast we put together over the weekend showing growth peaking in the second quarter above 9%, down from the 10% they forecasted at the beginning. quarter. gdp seen declining but remains above trend into next year
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for the year as a whole, 2021, economist forecast 6.7% growth followed by 3.9 in 2022, double economic potential deutsch says this would be the fastest turnaround for a recession since 1949 rsm explained why he and several other economists didn't bring down their growth forecasts more to account for the higher inflation numbers. he tells me, quote, we expected american household flush with cash and rising wajs to steam right through the rising prices on the back of supply constraints that will soon begin to ease. and we did the pce inflation for the first time inflation forecasts hit 5.7% in the second quarter the highest level since 1990 gradually comes down during the year, this year into next, but end up at 2.2, which is 0.7 higher than the ten-year average. with growth and inflation declining, i would say on th edge of what seems to be acceptable to the powell fed and
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the plans to gradually withdraw stimulus if the outlook starts to trend the other way, if it worsens, that could bring in a policy change. >> right now here we are, steve, as you say, 5.7% is what they are pointing to, biggest since 1990 and the ten-year yield is 1.2% 5.7% inflation possible in a 1.2% ten-year yield. >> right that means it's deeply negative on a real basis, david, as you know so something must be spooking people to say, you know what i would much prefer to own a ten-year beyond and keep it, i don't know, in cash and get a negative return on my money, which they are still getting it in the bond market, getting some return at all. but it must be something like the delta variant or some sense at all that may be the economy can't with understand a second bout of the virus. i would say listen to the doctors. they don't seem quite as
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concerned as the bond market looks to be. >> steve, thank you. >> doctors versus the bond markets. let's get to our morgan brennan for more on tomorrow's big launch hey, morgan. >> hey, thanks blue origins new shepard is set to launch jeff bezos and three other passengers into suborbital space tomorrow morning about 25 miles here in the west texas diversity, liftoff 9:00 a.m. eastern. joining us is dylan taylor as well as the founder of space for humanity, one of the 19 non-profits receiving $1 million for blue origins's club for the future foundation. thanks for joining us today. >> thanks. good to be here. >> so space tourism is certainly in focus right now given the bezos flight scheduled for tomorrow morning or richard branson and virgin galactic just eight days ago given the fact that you have put so much money to work in so many different space startups, do you see this as an investable
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moment >> i do. i do i think the retail investor is yet to participate in space. a lot of this has been early-stage angel investing. as more companies go public and more capital flows to the sector i think more resale investors can get involved i think this is the beginning of space investment, not the end. >> so we talk about the beginning of space investment. where does space tourism fit in the broader spector? >> i think one thing, it excites the retail investor. everyone will know an astronaut two years from now of course, today that's a rare event. in many respects it's inspiration that space tourism is bringing. more and more companies i think will follow the public path. we have seen a lot of spacs recently but i would anticipate traditional s 1 filings as well. >> you know, there are the critics out there. the skeptics will say what we are seeing with these
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spaceflights is billionaire boys with their toys. in terms of the broader impacts on business on society, how do you see it >> i understand that thesis and certainly we have a conversation in this country in the world today about income inequality. i understand the pushback. i would say we need to be hopeful, inspiration and hope is really important to our civilization i think, and i think if you look at branson's flight last week and you look at a 70-year-old man flying around in space with his shades on and living his best life so to speak, i think that's a great example of the human spirit. so i would say the prices will come down. we will democratize space. you mentioned pace for humanity and other organizations looking to spend people at no charge so i think we should all rally behind this new moment for space. i think it's tremendously positive >> so what does this mean for voyager? especially since i know you are focused on things like
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manufacturing in space, which all of this spaceflight right now and the fall prices to launch i would imagine is going to enable? >> we are on a public company path as well we anticipate, hopefully, filing later this year. that's certainly our intention what i would say is at the last ten years, it was about building access to space, you know, elon and spacex and others with building the elevator. the next ten years will be about destinations where can with we go private space stations, the moon, deeper space, including mars of course i think the next ten years will be about destinations. >> dylan taylor, thank you for joining us today. >> thanks, morgan. >> good stuff. still to come, robin hood releasing more details ahead of its upcoming ipo we will discuss and take a look at the vix reaching that 25 threshold of 33% today
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sales event. get 1.9% apr financing on the 2021 rx 350. experience amazing. welcome back robinhood kicking off a road show as they pair to list shares next week. the company and certain shareholders plan to sell 55 million shares between 38 and $42 apiece that according to an amended filing from this morning these terms and offerings $2.3 billion at the high end as well as a $35 billion market cap. the online "bridgerton" that saw tremendous popularity and controversy during the gamestop
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volatility this year updated financials they generated estimated republican as high as $474 million in the second quarter. that would be nearly two and a half times the same period last year net cumulative funded accounts more than doubled year over year to 22.5 million as of june 30th. so, david, road show begins. looking at about a week and a half or so you know, these days everything is virtual but what's interesting about this one, they said they could sell about 30, as much as 35% to retail investors theoretically, their customers, which is a massive retail allocation. it will be interesting to see how that changes the pricing dynamic for this deal as it goes forward. >> right, whether there are true believers and how long they hold the stock. we learned a lot about their business from their original s 1. this is the amended filing in terms of how much revenue is garnered for paying for order flow a lot. >> oh, yeah. almost all of it
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$1 billion and they noted in the filing that they expect revenue to decline, not growth to slow. revenue to decline in the third quarter based on lower trading volumes, particularly as it relates to cryptocurrency. so that again, another interesting thing for a company that, by any stretch of the measure, $35 billion, which is about 35 times last year's sales, valued as a growth company saying in plain ink that - >> growth's not going to be there. >> it's going to decline. >> it will be interesting it watch. buying 10% of a flagship universal music group. he joined "squawk box" earlier today to discuss that about face. >> this one we structured the way we did really to accommodate the ability to acquire universal because we were excited about the business and we wanted it to be owned by our shareholders s.e.c. didn't like it and, therefore, we were going to find -- do more conventional
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merger our intent was a merger all along. it was really, you know, some issues on their side that caused us to structure the deal this way. >> should point out leslie, funds controlled by mr. ackman, are going to be doing the investment in universal music, which will soon become a public entity of its own listing in amsterdam, i believe but the spac won't the spac lives on. that's what he was talking about because this transaction was going to eliminate the spac as it was, create a spark and yet another version, still have a lot of money left to do another deal now he has the largest spac yet again and the real question as to whether there is anything he can find because many people believed he came to this transaction difficult to find a company large enough to do a deal with. >> if you have $5 billion sitting in a trust you are taking a minority tstake in a company, a massive company to do a deal with. the question remains, you have
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done this deal it didn't go through, or at least he says the s.e.c. didn't want it to go through. now you are looking at maybe a plan b of sorts, but clock is ticking. you have already spent a year kind of consummating this transaction. now you have another year to do something. to your point, the supply of companies may be limited he said that -- and i thought this was interesting he said, in am one, he could distribute dividends as a way to minimize the trust that he has and potentially go after a smaller deal and he also said that the potential for capital gains taxes increases could motivate some potential family-owned businesses or other companies to sell sooner than maybe they would have otherwise, and so that may, you know, help him find something. >> right, because, right, the why of a family-owned business in terms of monetize the heirs or next generation maybe not interested there is a name that comes to mind, bloomberg, enormous data
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and news company, based on my reporting, no way. >> no way? >> no way. but we'll see. mr. ackman can be a very convincing fellow. but no way is what i - >> he is persuasive. i don't know if mike would be the ultimate tie-up there, mike bloomberg. seema mody is looking at the travel names taking a hit in today's sell-off what's going on? >> big moves i spoke with the ceo of kayak which is owned by bookings holings who says the spread of the delta variant while concerning hasn't had a material impact on consumers' desire to travel again he is optimistic that more countries will follow the u.k.'s reopening example and even if youlook at hotel occupancy,it is down slightly in the last two weeks from june, but is still averaging around 65% across the nation that data according to sdr the concern is we will see more cancellations as countries reintroduce restrictions there is also the risk of the
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return of international travel getting delayed once again also i want to draw your ascension to the cruise lines. among the worst performing stocks across the s&p 500, no major cancellations at this point. in fact, today royal caribbean's first sailing out of alaska followed by carnival later this week carnival will be launching a bond sale to pay back debt, which is a good sign to see a cruise line looking to pay back some of its debt no major cancellations that's key if we see that, that could change the story here. carnival even with today's losses town about 30% now for the month. >> yeah. not a great month. thank you. coming up on "tech check," don't miss kara swisher talking facebook fighting back against the biden administration that all starts top of the hour. we'll be right back.
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the energy secretarier y er is y over 4%, just alone in today's session, on pace for by the way its worst day since march. crude oil futures are down 6% as opec and its partners prepare to boost production through the course of next year. and energy has now tumbled by 11% in price over the last week. take a look at the s&p oil and gas etf, the ticker here is xo&p, down 4% as well on pace for its sixth straight down day. among the worst performers in the overall ector, matador resources, kalyn petroleum, all down by 6% or more on the session so far it is a huge move to the downside, we'll keep it right here and send it back to you guys and watch the energy markets for sure, leslie back to you. >> huge move to the downside indeed i'm sure you'll be all over it take a look at the biggest laggards on the dow as well as we head to break today you can see boeing down more than 5%, dow 3.5% lower in
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the street." sir richard branson may have beat jeff bezos to space, but blue origin is poised to beat virgin galactic to market. with tomorrow's potentially historic mission, this will also launch commercial service for blue origin with two more flightflight s scheduled to happen in 2021 and ticket sales well under way. we're finally here, the advent of space tourism a little after midnight, that rocket is going to roll out to the launchpad and early tomorrow morning, jeff bezos and his crewmates will strap into the capsule for the flight past the edge of space for blue origin it is worth noting this is one piece of a bigger, longer term vision, one part of what bezos' vision is around building a road to space for future generations to be enable to colonize the final frontier, david. >> colonizing the final
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frontier look forward to it tomorrow, very exciting, morgan brennan. >> all day long. >> all day long. all right. let's bring in our bob pisani, speaking of all day long, a man always looking at the market all day long what do you see so far, bob? >> i said earlier, two problems. we're living in a post vaccinated world but the vaccine won't go away. that's a major problem we had high valuations all year and that's a problem anytime you get some kind of interruption of the narrative, the narrative is we're living in a post vaccinated world but we're not. >> what does that mean post vaccinated world? >> we're walking around, acting like there is no problem with any viruses anymore. and there is a problem with the viruses. so we sort of levitated ourselves mentally into believing this has gone away and we're now living in that post vaccinated world but it hasn't. now the market is saying, we are not going away yet the problem is not going away. the high valuations are an issue. tractor supply, look at tractor
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supply, earnings had to be really good. they were great. they raised their full year guidance the stock is down. it is -- it would be down today regardless, but there is a problem. tractor supply is expensive. it used to trade for 18, 19, 20 times forward earnings it is 25 times forward earnings right now. that multiple is very high and it is -- i'm just citing this as one example, there could be many examples including big cap tech stocks that are suddenly, 30, 35 times forward earnings that used to be 20, 25 and that's a problem multiples cannot stay this high when you have peak earnings. the earnings may still be growing, but they're decelerating and when you get a little bit of a pressure here like today, where the narrative, mental narrative about covid changes, you get a big down day. >> is the idea that the market will ultimately, you know, is kind of a predecessor for behavior, that if people are living like, you know, there is nothing wrong, they're
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vaccinated, no risk to them anymore, the market is saying, maybe hold on, take a pause, and we think there is something wrong, and then that's kind of a -- they're expecting that ultimately people will change their -- >> and we have been talking about it for weeks for example, small cap stocks topped out a couple months ago midcap stocks, transports topped out a while ago. talked to a professional trader, guys in the market every day with money trading their own money and they'll say, it is really hard to make money. i don't know what's going on the professional community has seen this, we have seen transports are 10% off their highs. small caps are 10% off and believe it or not, the market is starting to get oversold this sounds crazy, but if you look at movement of 50-day moving averages, rsi numbers like on small cap stocks, they're already -- the rsis are in the 30s on these. you go 30, you're deeply
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oversold. >> so this is actually very good there is a rolling correction underneath the market that has not been so obvious because big cap techs have been holding up the s&p 500. all this is necessarily good it is a little bit of a reality check for the market, little smack in the face, and ultimately this will help down the road. >> bob, thank you. >> okay. >> bob pisani. that's going to do it for us on "squawk on the street. "techcheck" starts now >> happy monday welcome to "techcheck. today a massive sell-off for

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