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tv   Closing Bell  CNBC  November 23, 2021 3:00pm-5:00pm EST

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>> i thought i knew every indicator. this escaped my attention. >> equipment lease finance business. >> exactly do you think it's a leading indicator for ism? >> might be with the activities that could happen because you don't just buy a bulldozer to use it tomorrow. >> we have a red shoe, rocket pocket square. >> red socks. >> thank you for watching "power lunch." >> "closing bell" starts right now. today. welcome to "closing bell." i'm sara eisen at the new york stock exchange another volatile session on wall street another brutal day for the nasdaq it is deep in the red. the dow is at session highs heading into the final hour of trade. welcome, scott. >> hey i'm scott wapner in for wilfred frost. there's serious pressure again on the nasdaq. tech and consumer discretionary
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the big decliners. seeing the moves on the back dollar tree is higher and energy outperforming as prices climb despite the moves by the white house. coming up on today's show, could the best buying opportunities be abroad? we'll ask mark mobius. plus the ceo of hyatt, the hotel chain, to join us to talk holiday travel. let's focus on the big stories today. mike santoli is looking at the tech tumble and joining us for energy is helena kroft mike >> it is bumpy out there especially below the surface the s&p 500 itself is knocked around a little bit and
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absorbing it okay thapgs to strength in banks and energy stocks 1.5% off the record high it is maybe starting to look like 4700's going to have significance as some kind of a short term ceiling but at the lows today didn't get to last week's lows. until you get there we'll not talk about more than a wobble. there's pain below surface the crowded positions in the market by professionals and active individuals brutalized. take a look at the segments where it's long term circular growth you have fintech as well as cloud and sports betting that's against regular old tech. the blue chips attack are doing fine microsoft, down 3% still up for the month apple, facebook, looks okay. but much more on the concept stocks about next year, broken momentum in there.
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you have a lot of tax law selling i think and exacerbating things some stocks blew up hard and seeing it get to the rest of those groups they're all looking pretty oversold looking at the fintech and the cloud intraday they look like they're trying to get a bottom impossible to see where this is cleaned out. that has to be done on a positioning side but it seems like the process is underway you have to look for clues when they stop going down more and the rotation is running the course you will talk about global investing relative to the u.s. with mark mobius look at the united states market in the last five years compared to everything in the world, aside from the u.s that's the acwx and the s&p tech sector tech and mega cap growth mega cap growth in the u.s. accounts for almost the rest of
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the world. there's nothing comparable to that to rotate into the rest of the world and the valuation and mean reversion stats say it makes sense to do that you are betting against big u.s. growth stocks and the dominance. >> what is a catalyst here if you have exposure to the big and smaller tech stocks, do you have to totally rethink that we have been here before higher rates, inflation concerns, rate hike fears. yields pop and then goes the other way. >> it is difficult to say fit's different. you are right. this is the third or forurth tim of a gut check it's coincided with yields going up it is not explained by the 2-year note yield going up 8 basis points in the last week or the 10-year up to 1.66 that's the incremental move to
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inflation. but to me that's not the explanation. it is about very expensive stocks that didn't necessarily come through fast enough and what people own. you can get a clean slate into year end and change the entire story. the market from momentum to mean reversion and back again there's a too many for all of it like they say in ecclesiates >> there's an effort to bring down prices. >> today we launch a major effort to moderate the price of oil, spanning the globe and reach your corp.er gas station, god willing. i have worked hard with calls and meetings with foreign leaders to put together the building blocks for today's global announcement. while the combined actions will not solve the problem of high
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gas prices overnight it will make a difference. >> helena, thank you for being here. >> of course >> what does it say about the move that oil prices are up on the news >> i think this is already priced in. this is not a particularly well kept secret. the white house has basically socialized the fact to plan to do a release from the start of the month and you could argue that that's signaling contributing the prices falling by $10 i think the market was anticipating this and priced in. there's the caution about the barrels. refiners like light for gasoline that's causing some price action i think. but again this is an expected announcement though i would say it is a larmger announcement, largest release in history. >> jeffrey curry at goldman sachs said it's a minuscule
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impact he see $85 oil in the horizon. >> i think it's a $75 to $85 range. do we break above 85 that would be if opec sides to pause the plan production increase and the focus will focus on the opec response going to be. will they continue to put 400,000 barrels a day on the market or say there's covid cases rising, new lockdown restrictions in austria and potentially germany, we have the spr release, maybe we'll pause the production increases in response that's the one thing to look for and watch potentially new covid restrictions does it spread that would be the real downside pressure on the market. >> yeah. i was going to ask about how opec plus is likely to react to that that's what it seems like it will be a success or failure for the biden administration
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what is the relationship like between biden and the countrys that are doing this and opec what's the president trying to do here? >> that's a great question the laths time we had a big spr release in the obama administration that was seen as done to try to get the saudis to basically back fill the bolivian. will you have opec step up i think the biden white house would like opec to do that so they don't have to go for another release but opec will say, okay, you did your best we'll continue on the current path. >> you have to believe that demand will significantly outstrip supply for the foreseeable future given where the economy is coming out of the pandemic and then on the other side, isn't it
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>> this is the debate. i was just in abu dhabi last week there's opec ministers there and pointed to forecasts by independent data agencies, what you have the iea putting out many people say we're heading into a serious energy crisis in winter this is going to be a very tight market inventories are low. but opec continues to publicly say we're going to be oversupplied and that's a specification for not putting more barrels on the market and point to the covid restrictions >> i think to history when it was used as the reserve. it's supply issues like libya, "dee "desert storm," hurricane katrina. do you expect president biden to get political blowback to this
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they have been squashing oil production which is really what is needed to bring down prices. >> typically the spr is used with a disruption to a u.s. refinery in 2011 in the arab spring there was no disruption and still released barrels to back fill that libyan out and. people say to cap the price upside now the question will be, do republicans say, look, you should have supported domestic energy production? i think the biden administration is in a bind they have ambitious climate targets and dealing with a near term political fallout from prizing gasoline prices. >> it is tricky. thank you for joining us. >> thank you. we are near session highs on the dow. after the break, could your best bets be abroad we'll ask investor mark mobius
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where he is putting money to work right now dow up 175 nasdaq getting hit ♪ ♪ ♪ (sha bop sha bop) ♪ ♪ are the stars out tonight? (sha bop sha bop) ♪ ♪ ♪ alexa, play our favorite song again. ok. ♪ i only have eyes for you ♪
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tech is selling off harder than the rest of the market tesla, zoom, nvidia, the winners, the high priced growth stocks are getting hit facebook, amd at the bottom. there's green on the screen. some of the outliers today amazon is doing well dollar tree continues to go up parent company comcast, starbucks bright spots in the tech selloff s&p positive let's bring in mark mobius of mobius capital partners, known as a top international and emerging markets investor. now there's a wobble in technology and which makes up a big part of the market own these higher rates is it time to go elsewhere >> not really. if you look at where the damage is you will see that's mostly in those companies not making money. companies like gamestop, open
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door, rocket lab companies that are not earning and hit down 11 paterson, 12%. if you look at alphabet and amazon, they're at best moving sideways down a little bit but not much we focus on emerging markets with good cash flow, good margins and still continue to do well there's still a semiconductor shortage so we're really sticking to those and maybe add to those. >> is there a particular market, a country that's appealing or going company and country specific >> two countries are taiwan and india. taiwan is going as gangbusters the companies that support the semiconductor industry are doing very, very well. india, the strange thing is seeing china going down since
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february about, what 32%. whereas india's up something like 17%, 18%. so we've got to different yate where we look. >> i want to make sure that i heard you correctly in the first answer to sara this is scott. >> hi, scott. >> did you say that you still think that the u.s. is the best place to invest? i think what sara asked you, would you go elsewhere you said no. >> no, no. we'll go to emerging markets but the u.s. is the biggest market with great companies and trying to tell people that a lot of these companies, say apple, look at the earnings, the emerge market earnings and where their products are being made. emerging markets emerging markets garner a lot of earnings capacity that the u.s.
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companies are generating so yes u.s. market. you have to be in there. but you should be looking at emerging markets because they ben fete benefit from what's happening in the u.s. >> say interest rate hikes are pulled forward won't that have a negative impact >> it will have a negative impact everywhere. generally it's a feeling that -- but the good news is those companys that are in a very strong earnings position even in a -- will do well. so this is something if you look at the history of earnings and markets you see higher interest rates don't necessarily mean a big downturn in the market. >> i'm dying to ask you about the turkish lira
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this currency that lost almost 40% of the value and can't do anything to do with it could the spread be on turkey? >> it can because with higher interest rates than the u.s. the other companies with debts in dollars will be hit. the good news is that a lot of them learned the lessons in the asian crisis if you remember that a lot of them have been concentrating on local tech. but interesting thing about turkey is that i think they realize that the key is the growth in the economy. and with lower interest rates to make the economy grow then things will be all right in the longer term. also must remember turkey is a big exporter on a weaker turkish lira is greater export capabilities.
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with a lower and weaker lira they do better because the costs are lower. >> mark, i'm also thinking about relating to emerging markets and risky environments i'm thinking about new covid waves, lower vaccination rates, easier lockdowns how do you think about that in investing in the markets >> it's disastrous if you look at south africa, the lockdown was disastrous for the economy. and i think a lot of these companies begin to realize that a total lockdown doesn't mak sense. singapore with tight restrictions are beginning to loosen up because it's disastrous for the economies so many learned a lesson you can see india is very realistic in this regard and the economy is moving ahead.
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>> good to talk to you today thank you for being here. >> thank you. after the break tesla waugt up in the nasdaq selloff the other ev names have surged buckle up for earnings counting down to results from hp, dell, gap, nordstrom and more we'll bring you the analysis when they hit. check out the top searched tickers on cnbc. 10-year yield seeing the most interest and then zoom video on the back of the earnings tesla, best buy and of course apple. $160.75. we're back right after this. your business can unify apps and data across your clouds. so you can address supply chain issues in real time,
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and set aside more for things like healthcare, or whatever comes down the road. this is "the planning effect" from fidelity. tesla, lordstown lower rivian automotive just below the flat line and a big winner let's get to phil lebeau for a look at tesla. >> hey, scott. tesla is a company that people
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are watching not because it's the market leader but the fourth quarter could be record high deliveries topping a quarter million vehicles at least that's the estimate coming in as an estimate of 266,000 vehicles delivered and potentially getting real close to 900,000 893,000 is the delivery estimate for the full year. the model y is a bick part of the success that tesla enjoyed new data out of california shows how strong the model y is. company sales in the state up almost 64% and fifth selling vehicle of any vehicle in the state of california. tesla market share up to 5.5%. all of this comes as we see increasingly optimistic revisions when it comes to ev sales forecast the latest from joe raising the ev penetration forecast
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believing that they will make up 15% of the u.s. market by 2025 and globally will top 50% i think he said by 2050 and much more optimistic than people out there. >> phil, thank you tesla biggest drag on the nasdaq 100 still ahead, higher rates and the impact on banks. we'll talk to the ceo of citizens financial later oppenheimer's head of technical analyst will join us with names in tech here's a check on bonds. another big move higher for yields we are seeing it higher in the 2-year yield as investors process faster tapering from the fed and potentially quicker interest rate kehis next year. we'll be right back.
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just about 30 minutes left of trading let's check individual market movers smuckers higher on the heels of strong earnings. also raising the forecast seeing significant strength in the jif brand, the stock up more than 6% zoom video sinking today with a slowdown in revenue growth, the stock down almost 15%. jim cramer talking about zoom video today. to sign up if you haven't already point the phone at the qr code on the screen. on smuckers, i cover this one. they raised the sales guidance
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and the earnings guidance which the food and staples companies are not doing in this tough environment where input costs, transportation and labor costs hurt the margins and they were able to increase earnings because the sales trend is strong. >> yeah. the ability to raise prices. that's how you win in the environment. time for a news update hey. >> in the last hour, a jury in virginia finding white nationalists liable in four counts of violence at the unite the right rally in 2015 and awaited $25 million in damages but the jury unable to reach a verdict on two claims at the heart of the case. cvs, walgreens and others helped fuel an opioid epidemic in ohio. they didn't stop the suspicious prescriptions, a first trial over the question and
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criticizing the stigs and say they will appeal. brian laundrie committed suicide by shooting himself in the head he returned alone without his fiancee. her body was found in wyoming. you are up to date i'll send it back to you. >> appreciate that thank you. citizens financial ceo weighs in on the impact that the jerome powell renomination could have on the banking sector and the ceo hyatt, covid fears rise in the u.s. and abroad
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financial's one of the best performing sectors today rallies after president biden renominating fed chair powell for a second term. among the names higher is citizens financial group and had a strong year up more than 40% let's bring in citizens financial group chairman and ceo bruce. good to have you on "closing bell." >> my pleasure. >> it is all about rates
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that's what we are certainly focused on you have the 10-year at 1.67 are we at the beginning of a dramatic move higher do you think? >> i think right now we seen a s snap back and the forward curve is pricing in a ib crease in the belly of the curve so we'll see i think over time as the fed starts to reduce the quantitative easing we should start to see the longer end of the curve start to pick up a bit. >> it has to do as we said the renomination of jay powell and the expectation that he may a get faster taper and rate hike is that your anticipation, as well what is your reaction to the renomination >> i think it is a great move and governor powell is certainly battle tested an endid a great job in deploying the tools of the fed to help the economy and the country get through the
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pandemic so i think he has the courage to raise rates when he wants to it is a very nuanced decision about when to move and aggressively to move and don't want to go early and choke off the recovery and don't want to wait so i think he is a good consensus builder and will have the courage to act when it's right and appropriate to act. >> i wanted to ask you about the other issue here in powell's renomination and that is regulation there's still that spot for vice chair of supervision and some discussion that president biden may turn to a tougher on banks type of regulator for that role. what are your expectations >> we'll see i think that under chairman powell and randy quarrels there was a recalibration initially after the great financial recession. the pendulum swung a little too
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far in terms of reforms and helped to bring that back so we had a focus on growth but also keeping the system safe and sound. it doesn't appear to me from where i sit that we need to make drastic changes to that. that overall framework has served us well through that. the banks were part of the solution and banks have capital and focused on doing well by the customers so hopefully when the appointment is made that's taken into account. >> one question out there is m&a and whether they'll continue to green light these deals. you have been on quite a buying spree. i think four deals in 2021 is that window closing >> we'll see how that plays out. look in terms of acquisitions of banks, right now there's
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opportunities to continue to consolidate. the drives of consolidation are still there. smaller banks have to invest in digital and contending with an environment that makes it hard to grow so i think there's still a need for consolidation we'd like to continue to play there. i think at the smaller end of the market you will continue to see deals. the big question is, will a new appointee back away from the bigger deals in terms of moving banks up into the category of 500 billion to a trillion. i don't think we need to get there. we continue to do wealth management and m&a firms maybe the selective bank acquisition for scale and i don't think that introducing any systemic risk into the financial landscape. >> finally since we talked about jay powell and the prospects of
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increased regulation, had brainard been the person that the president nominated what would the reaction be today? there was some suggestion had it be here she would be tougher on your sector. >> yeah. i have a lot of respect for her. she is very sharp and she has taken an opposition view sometimes to some of the consolidation that's taking place but again i think the transactions with banks that are under 250 billion in size that we fall into that category, i'm not sure she would take a different view so again she may have been tougher on some of the larger transactions and has an orientation of climate and views that as a serious risk and some things that she may have done differently than whoever is ultimately appointed but again she is very sharp and a good
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person to work with over time. >> bruce, it is good to get your thoughts on the top of mind issues thank you for joining us. >> thank you. after the break, retail stocks have had a wild session energy surges. chip names out perform the stories and more when we go inside the market zone up 180 on the dow.
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watch with head of technical analyst at oppenheimer the ceo of hite hotels will talk about holiday travel and earnings results from hp, dell, gap, nordstrom and more. but first we have just under 15 minutes left in the trading day. we are in the "closing bell" market zone. mike santoli here to break down the crucial moments of the trading day and short hills capital partners chief investment officer steve weiss back welcome. we'll kick it off with the broader market nasdaq is sinking. the dow is up a half a percent and now at session highs the s&p is pulled by tech. a familiar story. >> yes. >> yields are higher concern of interest rate increases and not like the economic data is better and more concern about covid lockdowns. >> sure.
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economic data is okay. if you look at the general pattern. it is not a reaction to the data it is about kind of unwinding some bets that perhaps a different fed chair would be more dovish. i don't think see that as the chief swing factor on this week. i think it is an exacerbation of the flight away from the busted growth stocks that we have been suffering under for a while. this worked both ways. last week faang type stocks keeping the market afloat. this week financials and energy great. but a lot of the sort of more long term growth stories busted. you see interesting hints that maybe some of that flush has been working the way through small cap index up almost 1% off the morning lows i'm not saying it is over but it
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was a positioning shock and when it ends it is going to end >> apple is bucking the trend. you have interesting outperformers. it is not just all of tech swept up in the selloff. >> that is the epitome of the bifurcated stock that are getting hit, steve it is the apples and the microsofts holding things together is that the way it will be for a while? >> it seems like it. there's a flight to safety and cash the market is kind of brutal when companies miss. we see with zoom and best buy. but even when they don't miss it is brutal. looking for a pop. i think you're absolutely right that there's this bifurcated market people that want to stay invested but invested in safety so that's the apple, that's microsoft and others where they
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did well they look for the exit because they're unsure how the rate cycle plays out we see a large move in 10-year yields and if we see it tomorrow you have to have more essentially stability in the market to rally through the end. right now 10-year wants to go to 1.75 yield and can be problematic. >> that will do no fave. oil prices are higher despite president biden announcing the u.s. will release oil from the strategic petroleum reserve. brian sullivan explaining why. >> the market catalog, saw helena kroft on earlier. basically everyone knew it was coming the price did drop heading into it buy the rumor, sell the fact it just came on the front end. energy is the best per
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fortunatelying stock sector today and this week. because this release while the biggest ever done at one time and also by the way the only one ever turn in a non-emergency or storm type situation smaller than traders thought the draw is about a million barrels a day and kind of trickles out into the market we'll see if opec reacts and saw royal prices rise and gas prices rise and actually i would have a question for you to talk about in the market zone, i think this move in yields and inflation has something to do with the spr release. think about the fact if oil stops going up and caps expectations that could change the real yield situation and saw inflation turn and real yields turn at the same time and i do
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wonder if the interest rate move is related to the spr release. maybe it is a 12-hour day and this isn't milk in my coffee. >> we'll see what happens whether that is the case weiss, brian mentioned the move in energy. whether it is this week or month, energy is best performing this year as far as i remember is that a place you want to bet on >> no. actually i sold my chevron last week but here's where i think it is interesting in energy with russia amassing on the border of ukraine and having large natural gas reserves and the u.s. not being in a position to do anything to stop them. you could see a monster move in nat gas and energy overall i don't think the market is looking at that broadly but that's why there's a bid under
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the commodity. look i think that you rent energy stocks don't own them for long term high prices bring on more supply and do no different this time. >> jennifer granholm made news this hour talking about obviously release. and said that she is encouraging energy companies to boost production with profits and boost supply themselves which a lot of investors will smirk at because the biden administration has put pressure on the energy companies and pressure because of the aggressive energy goals. >> i think energy secretary herself laughed at that notion so yeah. look that is the big missing piece of course is investment in new production you understand why keep in mind we have got excited o where prices are
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we were here and higher eight years ago, 12 years ago. it is not as if we have never seen these levels before why nobody likes to see it it is not something that in a 10% or 12% nominal gdp economy to worry about that much. >> so old school to think of it as a pmajor inflation. >> that's probably why is because one among many things. >> and they think they can control. brian, you have to add >> sorry i had to jump in real quick here listen everything is political these days you beat an industry up and talk about the stuff and then say why aren't you helping us when we need it. if you're a ceo your head is spinning because you don't know what side to play. let's skip politics. any oil company that's popped the head up and raised
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production in the last couple of months, you know what happens? shareholders take a hammer and beat it down less is politics and more the companies making profit and shareholders will destroy the stocks if they get greedy and drilling again. >> good point. thank you. as energy outperforms today. a big -- pair of big retailers i should say despite beats best buy bottom of the s&p today. >> yeah. it did beat on earnings, revenues and comparable sales and raised the wide ranging guidance which does bracket expectations margins fell from higher returns. total comp sales grew. that was better than the forecasted slight decline but digital comp sales fell 10%. here's what the ceo said about inventory in my exclusive
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interview. >> there are always small pockets. we have great deals and we have a lot of supply there for the deals and just trying to move across the country and the customers have equal access. >> dick's sporting goods beating across the board raising guidance and stronger margins than forecast and digital sales up the ceo said she feels dick's will have the merchandise it needs and starting off the quarter very strong. dollar tree is moving forward with price increases most items will be $1.25 and expand assortment and absorb costs and return the company to margin rates back the you. >> just wanted to ask on the crime wave we are seeing across the country hitting the big
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retailers. came up in the best buy report today and some analysts cite it for a worry. i have heard nordstrom talk about this kroger, walgreens. what is happening exactly? >> yeah, absolutely. this was the first question we asked about this there is an increase in organized crime waves in many parts of the country and barry pointed out specifically seeing the west coast and some california areas where people come in with planned missions to steal certain items, some of it is to resell to use that money potentially for drugs or other things i did an investment with home depot before the pandemic and saw a rise in the organized crime in areas with higher rates of opioid overdoses and seems to
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be an issue. and retailers instruct the employees not to interfere when they see something like this happening. they don't want them to be in more danger than they could be in just by frankly being an employee at a store that's a target and stressful and what corey barry tonighted to and worried as a possible reason that some workers don't want to come to work anymore. >> weiss, i look at dick's sporting goods off the worst levels you bought it twice today and apparently enough is enough in the selling. >> yeah. frankly, scott, seeing it down even 1% before the open i said this is crazy. they hit on -- actually cheeded every metric cramer said a perfect quarter. i think that's an understatement
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online up 100% year over year and the inventory's up 7% and preferred relationships with the biggest manufacturers so there's no issues and a great start to the christmas season and i did buy $10 off the low. i think the stock should recover the loss less than nine times earnings. it is crazy. >> just about two minutes to go in the trading day mike, dow up almost 200 points. >> brighter than the indexes looked all day looking at the volume split on the new york stock exchange it is solidly positive for a while. the average stock is doing bet ethan the big cap indexes weighed down by the weakness 5-4 advancing to declining volume net positive equal weighted s&p is up take a look. the smaller names, nobody's wanted to own growth
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it's been a blood bath over the last six months been in parody it goes back and forth with the games so that's positioning shift but not a lot of real style change going on underneath the market just yet. volatility index popped 20 earlier and been a willingness to do with the hedging and could you see the outsized moves and the market holding up fine a percent and a half off record highs. >> as well if you look at it, the 10-year is basically the yield at the highs of the day and the nasdaq at one of the best levels of the day. >> almost as if that's not the thing that matters for the nasdaq. >> not true. >> it does until it doesn't. >> where it was a month ago. not breaking new ground on the upside. >> the naz didn't have back to
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back 1% declines since march certainly not the way things look now down half a percent, better than that dow is basically highs of the day. 204. that's where we go out so an interesting day. messy but we have come a long way back ♪ closing well off the session lows nasdaq down half a percent s&p is positive. welcome back to "closing bell. i'm sara eisen with scott wapner in for wilfred frost and mike santoli, senior markets commentator. we have a huge hour of retail and tech earnings straight ahead. instant analysis autocoming up in moments from now. steve weiss from short hills capital partners with us
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i'll turn to you and what got us here you michb surprised to see energy on a day when the u.s. releases -- decides to release oil. >> it is all about leads and lags everybody said it is not going to make a dent on the supply side crude pulled back quite a back so therefore energy stocks spring forwarded financials never waved so you do have again -- it is about a kind of a high friction rotation going on. out of the kind of glamour growth stocks and into the value stuff. net-net not much change in the overall story and saw once of the forced selling stopping and speculative stuff late morning, market would firm up from there.
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probably don't want to necessarily bette too hard of that going into tomorrow. >> which is why, weiss, some people look at the declines in the highest of high flying tech stocks and down 40% from the highs and some cases more. they just say enough is enough. >> yeah. you know, if you have done the work and like it you can't be dissuaded by the market action you have to look at it as opportunity and that's what i do clearly weaker hands are shaken out and it is painful for anybody's portfolio to see that happen if you own it and longer term you benefit from the dips however some i don't think come back and those are the super highly valued stocks like the snowflakes where there's priced revenue unconscionable and won't make money for quite sometime.
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stay away because they can go lower. no reason to go as high as they did and then you have to wait until they stabilize. >> who else do you put in the category of buying on the dips besides dick's sporting goods? >> i bought some gxo logistics downgraded from a buy to a hold. didn't say sell. price target is 108. think about xpo, when you think about fedex, if you hear them talk saying we can't get the merchandise and the reason is that freight is so full there's no capacity there. guess what if it's full like with space they charge more they're down xpo is down after a mixed quarter at best. being generous but that's when you have to buy it those are in that category. >> inflation is the subject du
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jour for investors janet yellen joining us yesterday and weighed in on rising prices. listen. >> i think we do have to be concerned about inflation. it's reached a level that concerns most americans who are seeing it in the pocketbook when they go to the story to buy food or to fill up the cars at the pump i think it's partly a reflection of the fact that the pandemic has had a severe influence in our economy. >> let's bring in wharton school of business and finance jeremy siegel on the cs in phone line something you have been warning about is rising inflation becoming more per sistent and dangerous. the treasury secretary is saying she is more concerned about it powell and biden is talking about it
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does that mean the fed has to move faster? >> absolutely they're going to have to move faster. there's no question that they're very much behind the curve and what i think is that yellen is -- and the others are softening the market up for an announcement on that december 15 meeting of a speed-up of the taper which means a sooner rise of interest rates. >> so why is - >> how soon? >> i'm sorry professor, why isn't the market then more worried about it if yellen and powell and the president is worried about it, the market doesn't seem to be that worried about it. >> hardly down and rates aren't up that much. >> you saw the -- what happened to technology, especially the high priced technology today you saw the yields at approaching 1.70 the 10-year
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i think the market says with the reappointment of chairman powell gives them more free hand because -- to raise interest rates. [ inaudible >> i think we have audio issues. we'll try to get it fixed. we missed the tail end of what you said i am curious as to when you think would be an appropriate time for rate hikes because the market is now pricing in - >> may. >> 50% chance to go in may they have to start speeding up the taper here. >> i think they have to start raising it in march. >> why what happens if they don't >> well, i think that will make inflation ultimately worse and push down harder later on.
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they have to speed it up by a factor of two. >> they don't want to choke off the growth recovery. we are 4 million plus jobs short of where we were in the pandemic they don't want to choke off the growth to fight inflation that could, a large part of it, go away when the supply chain eases. >> i know. it is not going to ease any time soon and the jobs aren't coming back and we have more openings the market is strong enough. the job market is strong enough. it's more important now to put a stop to inflation than worry about a few more jobs. that i think has to be the primary focus of the fed is fighting inflation right now and soon because they're late. >> what does that mean for the stock market if you think they'll hike in march what does that mean for me
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as an investor between now and then >> i think if he announces a faster taper in -- on december 15 you will see some volatility in the stock market. the path is off because there's money there until the fed i don't think the market right now is ready for a strong powell divot. there's softening up as i said but basically the market is i think unprepared i'd see some volatility to year end and january. >> we'll see thank you for being on "closing bell." jeremy siegel at the wharton school courtney has earnings. hi. >> hi. yeah so nordstrom's earnings looks like a miss.
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nordstrom revenues did beat. gross margins were up year over year about 2.3% they do cite markdowns in the quarter. inventories up 13% versus 2019 note some pull forward receipts to support early holiday sales looks like the expenses is issue for earnings higher expenses than expected with sgna at 34% compared to estimate of 32%. labor cost pressure an issue there and reafoirming the full-year revenue increase of 35%. shares getting hit hard here in the wake of these results down 15% after hours for nordstrom results. we'll see what they have to say on the call to fill in.
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>> this is interesting a metric. inventory up 13% over 2019 that sounds like a surprising number to me relative to expectations were in terms of where we are in retail, supply chain and everything else. >> yeah. it is interesting actually because of the concerns that we have talked about with supply chain and the worries about inventory that many of these big retailers have been able to figure it out and posting increases in inventory levels over 2019 in many cases and they do note the pull forward of receipts to support early holiday sales. because we have heard them say consumers are paying attention to the warnings about the supply chains and worries they won't be able to get the products and shopping early who knows exactly what that means for the fourth quarter here and the revenues stronger
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in this quarter than expected and perhaps some done earlier. >> second tough quarter in a row for nordstrom. down 16% auto desk earnings are out >> much like nordstrom the shares plummeting on the news. earnings per share $1.33, a beat and revenue at 1.13 billion. but the reason you see the shares fall right now is the q4 eps guidance lower we are and the company predicts $1.41 to $1.47 below the estimates and then guidance at 1.149 billion. starting to see a selloff. rev neuse for subscription
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lower. maintenance also slightly higher but we are seeing weakness into q4 from the predictions. >> thank you vm ware, kate rooney >> a slighter bigger beat. $1.72 adjusted revenue coming in at $3.19 billion. for the quarter. that was up 11% from a year ago. subscription and services license revenue up from last year and guidance doesn't look like we have it it was a majority owned subsidiary of dell it happened a month ago. the stock down about 25% from the year and a boost after hours up more than 2%.
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>> thank you we have hp earnings. we'll go back to kristina. >> so substantial beat for hp. earnings per share above estimates. over a billion dollars more than anticipated. the company also bullish for the new year raising guidance to a range of 99 cents to $1.05 versus 94 cents that was expected and the company did warn of a $10 billion backlog due to parts shortages and a spike in demand. i got on a call with the ceo and the cfo an hour ago and asked them about the backlog and told me he expects it to continue with little change until the second half of 2022 and they have quote the ability to manage the mix and interesting nugget through the report is this morning best buy with a report
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on domestic sales and said appliance and home theater offset by a decline in computing and asked the ceo of hp why is best buy seeing a decline in computing and he told me because they focus on b2b and that's what helped them ride the wave you can share 12% higher 13%. back to you guys. >> wow good color thank you. let's start with hp then had a strong run in the last year. >> absolutely. shows you if you trade at nine times earnings like hp does an better than feared numbers you get a response up above the previous high pronounced move. low expectations baked in it would seem there
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autodesk is 45 tichls next year's earnings. slight shadings of downside to forward guidance and the stock is punished. >> weiss, what is your view on this after hours >> well, for nordstrom it says that it is not about getting the merchandise but the right merchandise and apparently made a mistake in what they thought the buying trends would be and while they miss with others blow it out in the department stores, it's start of troubling. the company doesn't seem to get it right for a period of time so that's one i would not own period >> lall right. thank you. coming up, just getting started on the second hour of "closing bell. we'll talk to a top technical analyst. ceo of hyatt hotels weighing in. impacting the company's bottom
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line we'll find out how back in two. hey lily, i need a new wireless plan for my business, but all my employees need something different. 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, like 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 get the best deals on every smart phone.
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gap down sharply on results just out courtney >> so this is a pretty messy quarter for the gap. for gap, inc. 27 cents adjusted well below the 50 cents consensus. revenues missing big, too. putting up 3.49 billion. the street looking for $4.44 billion. gross margin good. 42.1%. actually the highest third quarter rate in over ten years but they talk about the supply chain constraints. factory closures port congestion. impacted the ability to meet demand and quantifying that saying it hurt revenues by 8 percentage points.
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all three of the big brands, old navy, gap, banana republic with sales misses operating expenses also coming in higher than expected and if you look at the full-year adjusted earnings is $1.25 to $1.40. the street looking for $2.20 why that is a very big miss on the range. you can see shares of the gap down 10% they were down 15% so surprisingly faring better than nordstrom on the results. >> still tough sledding. thank you. a mixed session. nasdaq the underperformer lower for a second straight day and finishing off the worst levels joining us is head of technical only sis for oppenheimer is ari wald what do the charts tell you about the nasdaq >> i think to answer they go higher in regards to recent actions,
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you have to ask is it distributive something to be concerned about for rotational really just a shakeout and what could be an ongoing advance. we side with rotational and a shakeout from a position of strength so we think the bull's intact. a tech in position is warranted. cyclicals picking up the slack first with tech the first chart is relative to the s&p 500, the strength that we have seen in recent weeks coming into this week's peak, that was a 15-month breakout go to the summer of 2020 to look at the resistance it got through. a major breakout and trend from our view we think that's a floor. support and expect a low irlow by a higher high i have the chart of apple to show the largest component in
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the xlk also turning higher from a trend of underperformance. a market performer year to date. it speaks to the strength in hardware broadly i heard christina talk about hp doing well after the bell. seeing strength in the likes of ge connectivity and f 5 and it is this rotational aspect in tech and software and semis pause. >> all tech is not created equal. we have to be careful. the high flying, high valuation, high growth tech is not the same as apple as you show in the chart. >> that's right. you have the pockets of froth. pockets of strength. pockets of weakness. even the pockets of froth don't show at the headline nasdaq or
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the xlk that we made the case that the steadiness at the headline level is un underappreciated the nasdaq three, four, five years it is a straight line and well below what we saw in the late 1960s and the comparisons of now and then are very stark how we see it. >> banks -- financials up this 3% this week this is the other side the high yield plays and rates tell us what you see for the bank sector. >> that's right. we updated the s&p target and the banking industry october 2 in expectation that rates s.t.a.r.t. to move high every here and pressured technology and the boon for the banks breaking out with the kbw bank
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index. the strength that we saw off the fourth quarter of last year we think is a meaningful breakout and trend from years ago and the more recent consolidation is a pause. it is allowing them to catch up the price and settings up for a breakout to the upside there is a ceiling given the abundance of negative yielding debt and i don't think this is a call to sell technology even if you do have a little bit and rates move higher why i don't think people give credit technology to do well. think back the 10-year doubled software outperformed. >> you like the pairing of tech and banks in a rising rate kind of environment we are in even though they move in opposite directions? they have all week. >> we do
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they work well together. both sectors we are overweight both leaders of a prior year over a long term they can work together tech is a long term core position and we are at a point where cyclicals are tactically attractive you want beta in the portfolio. >> true. to both the year both up 40% s&p sectors for year to date thank you. good to have you. >> thank you. shares of gap and nordstrom plunging after disappointing earnings a top analyst on whyether it's a buying opportunity
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check out shares of nordstrom and gap. both are plummeting. look at nordstrom down 24% that's the lowest of the after hours for that stock down more than $7. there's gap -- more than 15% let's bring in the ceo from the telsi advisory group you have holds on both give me your view looking at the
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massive declines. >> overall looking at the companies the pressure you have from supply chain constraints working to bring in goods through air freight is pressuring the earnings picture. especially when you have consumer demand. for nordstrom they have been issues for a while there's work to be done to balancing the price points at gap this is a surprise. frankly, the expense pressure from the investment in supply chain i think drove some weakness but -- go on. >> a couple things nordstrom don't seem to be having any supply chain issues the inventories were up and up too much. >> yep the issue with nordstrom is urban areas are more pressured and pressure from nordstrom for a past quarters and choppy at nordstrom and work to do to enhance the assortment and
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manage the cost equation their operating margins are only ones at nordstrom not increasing over 2019 levels. >> how do you explain what happened with macy's with a good quarter and well received by the market they should all be dealing with the issues equally, shouldn't they >> they should one thing to see at macy's is taking a look at the digital business and the contributions worked the other thing about macy's is they brought in goods early. they planned smartly in order to be able to deliver holiday 2021. >> what do you make of the gap guidance that was a blow and a surprise i think to investors used the word transitory i think three or four times in the release. is this a buy off the results if it is just supply chain?
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>> i prefer gap orr nordstrom. there's others that are an opportunity and look at companies with increasing the share of buybacks and helps and shows you confidence of strength going forward. abercrombie's got that. >> i look at as i mentioned you have a hold on gap your price target is $33 can we show the stock again? i think i saw it at 19 what's an investor supposed to do in that scenario where you really don't love the stock but your price tarkt is much higher than where it sits today >> keep in mind as we adjust earnings the price target will adjust the word trancesitory i think i we don't have '22 guidance 2022 will show a framework for gap we have a strong balance
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sheet. it will reach nearly 70% of sales. can it have upward momentum from where it is? reset of 2022 will show a valuation that could be more compelling than what you have at nordstrom. >> it is crazy the divergence. bath & body works up 150%. all over the map. >> right. >> thank you for joining us. >> thank you. >> always good to talk to you. we have more earnings out including dell kate >> dell with a beat on the top and bottom line. start with eps at $2.37. compared to $2.18 for estimates. adjusted revenue 28.4 billion. also better than expected. revenue up 21% year over year. executives saying the best third quarter driven by demand and products being shipped here and record revenue
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no guidance. strong q2. demand for computers picked up in the pandemic. stock up 40% in the year and spin-off of vmware is complete dell is a hardware company navigating supply chain issues keep an eye on that at 5:00 in the earnings call. >> thank you. mike back to look at what recent moves in the bond market say about the economic cycle later the ceo of hyatt hotels whether the travel industry will be hit by the rising covid cases around the world
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time for a cnbc news update with kelly evans >> hi, everybody at this hour, subpoenas have been issued to the proud boys and oath keepers the house committee investigating the january 6 riots on capitol hill seeking information on the involvement in attacks that day. after more than 43 years in
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prison kevin strickland is freed. a missouri judge granted a motion to exonerate him of a 1978 triple murder he said all along he didn't do it he was 18 when he was arrested and now 62. apple is suing israel's nso group over hacking tools apple lawsuit describes employees at amoral mercenaries. whose products were used to target americans, journal itselves nso said the software saved thousands of lives and helps governments monitor terrorists and pedophiles. the giants fired jason garrett after a drubbing head coach joe judge said the team has too many good players not to be scoring. and on the news tonight retired race horses grazing new pastures joining me at 7:00 to see how
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they now enjoy the golden years. sara, back to you. >> sounds good thank you. see you then. let's go back to mike who's been taking a closer look at the bond market which is really the focus for all investors with equities lately. what do you see? >> it has been take a look at the 10-year minus the 2-year some concern about how it's compressing. we never got to this kind of an above 2% point spread that we have gotten after previous recessions i do think a couple things you want to keep in mind one the absolute level of yields than the other cycles and maybe that's too much to ask also we have rolled over a little bit there also happened in previous times after the first burst higher in the yield curve in a recovery. until it's truly flat and inverts you are on a recession
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watch even if the market says the fed can only hike rates a few times before that becomes a concern. credit conditions have been supportive just slight bit of wear and tear on riskier credit spreads. this is the high yield and then government you see high yield has modestly outperformed i would say it's something to watch. it is not yet critical but it is probably telling us that maybe the absolute loosest financial conditions going to see have been seen for the time being, sara. >> there's a way to put it thank you. robinhood shares have fallen around 20% since the major hack revealed and lower today after details emerge about where the stolen data is shopped for sale. plus the ceo of hyatt hotels on whether rising inflation and covid fears could lead consumers
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record shares finishing the day lower. new details on the robinhood hack from this month eamo eamon javers has that for us. >> the hack happened on november 3 and disclosed it november 8 and now we know what's happening with the data according to the
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consultants at q6 and offered for sale on the dark web here's what we know about the hacker his or her name is xak, offering the data stolen earlier this month and the offer is posted on exploit which is a russian language hacker forum. pers the best known. more than 7 million lines of data in the database offered for sale the information includes names and emails the hacker is asking for more than $100,000 in order to sell this information. what we don't know is if this is the hacker that stole the information in the first place because there's a nether world of secondary markets and this could be somebody that bought it and trying to sell the for a profit or somebody who's venue shopping and saw offers to sell the same data in other forums.
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we checked with robinhood. they have no comment other than the initial blogpost on november 8. if you're a robinhood customer you would be concerned that the email address and other personal information are being sold on the dark web. >> what about if you're a robinhood investor how bad is it for robinhood with the hacks? where does that one stack up >> yeah. look you are talking about millions of lines of data right? it's an enormous amount of information but what robinhood said in the post is they don't see something terribly damaging with social security numbers or account information. so presumably this exposes them to phishing attempting and trolling online and email accounts and could be frustrating for them but you
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have to see if the customers hold this against robinhood or say it's part and parcel of doing business in this modern age. >> thank you we are a new days from thanksgiving holiday travel season in full swing. what's at stake as covid concerns rank up we'll discuss next later surprising tax statistics. tax statistics rrndg we down the big miss suouinthe alth tax "closing bell" will be right back tions from fidelity keep you tuned in all day long. so when something happens that could affect your portfolio, you can act quickly. that's decision tech, only from fidelity. ♪♪ care. it has the power to change the way we see things. ♪♪ it inspires us to go further. ♪♪ it has our back.
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small businesses like yours make gift-giving possible. now, comcast business has an exclusive gift for you. introducing the gift of savings sale. for a limited time, ask how to get a great deal for your business. and get up to a $500 prepaid card with select bundles
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when you switch to the network that can deliver gig speeds to the most businesses. or get started with internet and voice for $64.99 per month with a 2-year price guarantee. give your business the gift of savings today. comcast business. powering possibilities. covid cases are on the rise in the u.s. again and europe is seeing a strong wave austria with plans of a vaccine mandate. this of course all comes ahead of the holiday season when many people look to travel. joining us in chicago from the hyatt headquarters is mark koplizan are you see this impact travel plans? >> hi, sara. great to see you thank you for having me. we have not seen a significant impact from any elevated
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concerns we did see, of course, when the delta surge was with us in the united states we saw about a six-week period mostly concentrated in august decline in bookings and also decline in trips because of cancellations but that's it. if you look at the profile of many of the outbreaks that we have seen in this period of delta surges, they have been relatively short lived and so the surge back after the decline in cases was upon us in early september was significant. we saw real significant resurgence of leisure travel especially not just for relative to 2019 in september and october but significantly into the end of the year we have a festive week between christmas and new year's running ahead of 2019 in terms of
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bookings so we haven't seen a big impact with respect to that. >> so demand is super strong especially relative to 2019. are you able to staff the hotels appropriately to offer people the service they expect? isn't labor shortage a huge deal for you industry >> yes the whole industry is facing labor shortages. it's more acute in markets where occupancies have come back more strongly but we are working through it we leveraged many different ways to operate differently, especially in food and beverage areas with the restaurants to be much more focused on a simplified menu and a grab and goal termtive and enlisted the help of area restaurants to be able to provide more variety until we get restaffed and open some venues but i feel like we are in an acute supply and demand shortage at the moment but i think that will alleviate
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over the coming quarters because we haven't quite met a e qi lib rib a yum. i think this will shake out heading into the new year. >> what kind of visibility do you have on business visibilityo you have on travel >> business travel has been a wonderful surprise we keep talking about leisure travel as leading the recovery, which it certainly has significantly, but we've seen business travel, both transient but also meetings and group events increase every week since the beginning of july. it was quite modest in the summer months, but we've seen that grow now and i've been engaged with corporate travel managers and meeting planners through another association and
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it's been remarkable to hear how much energy there is behind people getting back on the road. i think that will get enhanced in 2022 as more companies have set hard deadlines for coming back into the office starting in january. i believe that will spur an increased level of business travel in 2022 >> are you pivoting the company? i know you have a multibillion dollar deal for apple leisure to focus purely on that leisure travel >> no -- well, yes, it's transformational in many ways but not focusing solely on leisure travel we thought this was a great time to do something transformational for hyatt. we're going to be over 50% leisure travel focused we are now going forward because we've doubled our resort representation around the world. we have 100 new open and operating resorts with a large number in the pipeline behind
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it and the all-inclusive format is very compelling. it's a great customer proposition, and it's a great owner proposition. the economics of running these hotels from a hotel ownership perspective, they're very attractive economic models so we believe that the growth that we're seeing now across the amr collection portfolio, brands like secrets and dreams, as an exa example. the economic results have been fantastic. they are tracking well ahead of 2019 as we head into the end of this year and the first quarter of next year they're seeing the same sorts of demands on the leisure side as we've seen on the hyatt resort side but, importantly, they haven't touched big segments of the world, the middle east and asia, australia, many chapters of growth ahead of us.
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>> supply chain issues, are you having any, linens, glassware, furniture, plates, that kind of stuff? >> all of the above. we've had a number of projects that have been pending, containers sitting outside of long beach at the moment we've had a number of delays in completion of hotels and, yes, the kinds of items you mentioned, scott it's definitely impacting our completion rate not by years but certainly by weeks and sometimes months >> best of luck. happy thanksgiving, by the way we'll see you soon. >> thank you very grateful for a lot this year up next, a gift to the wealthy -- that's what some lawmakers are calling the build back better bill saying it will lower taxes for the rich we'll explain when "closing
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bell" comes right back ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq hey lily, i need a new wireless plan for my business,
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but all my employees need something different. 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, like 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 get the best deals on every smart phone. what the world needs now... is people.
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number autodesk under pressure on disappointing guidance hp and pure storage rallying after beating wall street's earnings estimates some crazy, huge moves after hours. the build back better bill has been criticized by some as a geft to the wealthy. robert frank is here bernie sanders calls it more tax breaks for the wealthy he promises to change it nonpartisan studies of the plan show it is, in fact, a $600 billion tax hike on the highest earners. even with the higher cap of $80,000, the 1% face an average tax increase of $55,000 next year the top 1% would pay a half million more in taxes and that's mainly because of the new surtax on income over $10 million
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the joint committee on taxation issuing a new report today showing millionaire earners would see their average tax rate go from 30% to 33% in 2022 by 2027 that would top 38% and their tax bill would go 13% higher if you look at the direct taxes, the house plan cuts taxes in 2022 for every single income group except the top 1%. guys >> so not exactly a gift for the wealthy, robert. thank you. robert frank as we look ahead to tomorrow the market today -- look, this extreme with the nasdaq getting hurt and the dow and the s&p outperforming. we did close off the lows and up said the market might be on to something there. >> i think there was a hesitation to really press the bets once you saw that urgent forced
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selling type activity and the fast moving names ease up. okay, maybe nobody really has to be getting out -- i don't want to make too much and saying it's a decisive turn but makes a lot of sense that we've been seeing a market that coming into the week was wound very tight and it's been the case for a while in the since equity exposures are high the point being it hasn't fealty easy even though the market is up 25% and that's why i think you've had a lot of people moving their feet pretty quickly but still don't want to miss what typically is a good time of year especially even when the market has been up through this period of thanksgiving. >> i wonder how much of that is a statement of you can have a nice comeback like you did, close at the highs across the board, including yields.
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the ten-year closed at the high and stocks were able to eke out 200 points and the nasdaq cut its losses in half >> yields are up from 112 to 165 and still most parts of the market are up. >> and bitcoin was up. that will do it for "closing bell." scott, always good to have you "fast money" begins right now. live from the nasdaq market site in times square this is "fast money. i'm melissa lee. co-founder of market rebellion.com, pete najarian the calls are under way. we'll bring you the very latest from the quarters. plus, break out or break down. apple is on a tear soaring 6% in the last week. is there trouble lurking in the charts where the trade is headed next the smash and grab crime spree

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