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tv   Squawk on the Street  CNBC  November 29, 2021 9:00am-11:00am EST

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both appreciate night thank you. >> thank you. >> what a morning it has been. many big interviews, trying to help us all understand what is happening ahead of the final -- as we kick it over i want to get a check on the markets right now. you are looking at green arrows across the board, guys so we will see whether that holds up pie the end of the day. >> a pick up >> it has. make sure you join us tomorrow, "squawk on the street" begins right now. >> good monday morning, welcome to "squawk on the street," i'm jim lebenthal. david faber and jim cramer >> scientists around the world scrumible for more data about the omicron variant. our road map begins with the omicron volatility investors reassessing risks from
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the new covid variant after friday's selloff >> plus the vaccine boost. pfizer's ceo telling cnbc that its shot should still work against omicron. and moderna saying a reformulated shot could be ready early next year. >> black friday sales come in light, cyber monday too expected to today jim you are saying don't be confused, don't panic? >> yeah, you listen to bourla and mansell, moderna and pfizer and you come back and say, look, these guys are the people you have to bank on. they know the science. they are doctors they say things that frankly are very practical dr. gottlieb who works with pfizer is very fracturecal i come back and i say, if they are all so practical then the thing you can't do is say, i'm going to sell, because, david,
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what that may mean is these people solve it and then you have to buy back much higher >> what would be the key things that you are waiting for along with so many other investors to try the understand the complications of this new variant and whether, in fact, it is something that's going to be a significant threat >> i felt that we were getting toward herd immunity if we hear that somebody who already had it gets it again that's what wim fea-- i'm fearfl of the unvaccinate ready whipping boys i mean, this should just scare everybody who isn't vaccinated of when you hear this kind of thing and you are not vaccinated, is it really because you think it is a political thing, they can't tell me what to do? i would love to see a governor
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from florida for instance say you know what, this is out of control, we have got to get vaccinated, get back to work there can't be any resistance. what happens is if everybody is vaccinated then your country is much less at risk. we have so many outbreaks and disease inside africa that we had beaten in this country over the last couple decades. i feel like -- i am not saying -- obviously, when you get the outbreak in america, which you almost have to, the markets will be down but i am saying if you panic i think you are going to miss the opportunity and end up paying hard. >> they calked to both ceos from moderna and pfizer this morning on squawk. bourla had interesting comments. one, they have done this before a couple of times, reformulated a new vaccine for delta and beta, which ended up not being that necessary because their overall vaccine efficacy held in but he said mutations don't
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target the spike, which is where the mutations are. and he mentioned the pill. >> we have made multiple times clear that we would be able to have a vaccine in less than 100 days in fact we have already two vaccines built in less than 100 years. we built one for delta that we did not use because the current vaccine is very, very effective against della. and we built one for beta. we could build one for omicron and only use it if we see the current one doesn't work. >> jp morgan goes from 42 to 53 on pfizer. >> pfizer should be bought because of something that joe and andrew asked this morning. it is going to be an anewity it is absolutely true. i remember when they first told me there would be a booster there was blowback that they were trying to privateer
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but the booster is obviously incredibly effective >> he was talking about the oral anti-viral. >> there, i was going to say, this is the real hope. >> it showed significant rooks in hospitalizations and deaths we got revised data from merck's, the one i have been following closely, which showed a reduction of about 30, 33% in hospitalizations however, deaths, at least 90%. my understanding is actually in the trial, the person who did die, no in the the placebo group, actually it was not related to covid and so the panel on merck's drug meets tomorrow the advisory pam meets tomorrow. we don't have a date yet on pfizer but these oral anti-virals that we had talked about a very long time here are certainly going to be important to bourla's point they are
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impacted -- they don't go after the spike protein, therefore any of these mutations would seem to impact their efficacy. >> don't you think in that sense we have a very severe flu going on yes. >> many people die of the flu. are we there yet >> i have asked that question. i would love to see data if you have been vaccinated and you get a covid, whatever variant it might be, what is your hadn'tization and death rate look like versus flu because we are living with this forever, it would seem, at this point, aren't we as much as the adjustment will need to be made in some way, and certainly we have to be aware of these potentially viralient variants it is not going away. >> tremendous data out of las vegas which shows a dramatic decline in hospitalizations if you have been vaccinated i think -- our president,at th all want to -- they want to
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could joel dr. fauci wants to cajole. we have got to get away from the cajole no one who has not been cajoled is getting cajoled i think we have to say look, here's the law, we are requiring vaccinations, no more -- >> to do what? to fly to -- >> to live in this country. >> required. >> required. here we go again our country in panic mode, stocks are reflecting the idea that perhaps we have got to go -- people are talking about lockdown you would never think about lockdown if everybody were vaccinated i am beginning to think if you want to preserve our commerce and our greatness as well as the mortality rate going down, then you just do this, and you do what we did with polio in the country. we lined up in high school i had no idea why i was getting a shot >> the pfizer one, an hiv drug
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needs to be taken with it. there are a lot of drug interactions that are there. but jeff all these are going to be significant, the merck and the pfizer drug are pertinent. then do people still need to be vaccinated. >> yeah. i use the nfl. their constantly being tested. the numbers are awful. you wonder how much are those are breakthrough, and then you do the digging into the numbers, it is not vaccinated >> let's go to meg tirrell >> good morning carl a lot of news from the ceos this morning hearing that they do anticipate that, if needed, they could pivot very quickly to these new variant-specific vaccine constructs we heard from albert bourla that they started that work on friday
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on building a omicron-specific vaccine if it is needed. they expect antibody data within a couple weeks to tell us how much of a hit the neutralization takes against omicron versus previous variants. what we have seen before is each with variants like beta which took a hit in terms of variant antibody there was still protection and with the current vaccines and boosters that was enough j&j saying it is developing a omicron specific vaccine if it is needed too, and also locking a the current protection from its vaccine. over the weekend we heard about a dozen more cups reporting cases of omicron that's spreading weave not yet heard about it here in the united states but we know surveillance systems are getting ramped up to look at this through markers on pcr tests and confirmed through genome sequencing. moderna's ceo saying he thinks that any flights that have left
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from south africa to any destination in the world within the last seven to ten days, those destinations probably have this variant circulating at som level. you mentioned the antivirals now they are forecasting 80 million treatment courses of pack low individual available next year that they can make that's up from 50 million previously that was a big point that albert bourla was making the potential availability of these anti-viral drugs being able to keep nine out of ten people out of the hospital or dieing from covid makes a huge difference. even if the vaccines take some hits, having those drugs would be really helpful. >> meg, let me ask you, i don't think anybody the business be that a watcher of both ceos, did you detect business as usual and optimism from these two? again, i relie on you. you dealt with them during the
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height of the pandemic i wanted to know if that was your take. >> there is a sense you get from both of these guys that they are ready for this, that they have been preparing for this, particularly from bourla when i asked him at the end of the interview, how concerned are you personally about this, he said he was on theist innic because they have run through this before with the beta and the delta variants figuring out those vaccines and because of the drugs that they have moderna's ceo also did sound pretty worried about this variant itself because of the characteristics we have heard about it that have not yet been concerned. but from the beginning, in davos in 2020 when he was modelly on a napkin how far the original virus can originally spread. these guys -- it is their personality, but luckily, they are prepared. >> meg great work of course this morning helping us got our arms around this today. that's meg trill. gottlieb was also on this morning saying we would probably
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get our arms around the epidemiology sometime this week. >> right. >> how are we supposed to trade during that time >> there is a cadence. i think the cadence is, we discover someone brought it here after what happened in the netherlands. it is hard to believe that we don't. then we get a big selloff. then you are going to get news this is something we are going to be able to teal with. it is not going to be march of 2020 when it's not, we are going to go -- look, i am not a huge fan of the cruise ships but take royal or for region. royal is down 20 from when they did that giant secondary you have to say to yourself, you maybe bite the bullet and buy some norwegian which has -- i don't think you are going the hear about massive cancellations. >> you don't. >> no, i don't. >> all those stocks were down as we pointed out many times on friday it was a shortened session typically perhaps a lack of liquidity on a di like that after thanksgiving when few
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people are at work or at home working. >> you were at work. >> i was working we saw outside moves in many of these names. the other way as well, moderna shares seemed to be getting ready to advance another 10% were up 20%. it goes both ways, but there are significant moves. >> david, you know, we have to start thinking that maybe the future is our clown show >> the commodities futures now not just equity futures. >> $80, the president coordinates a gigantic worldwide effort to unleash petroleum, and there is nothing then there is a short squeeze, and it goss up, and then we get this and everything they wanted to accomplish has been accomplished now it is $70. most of the major -- yes, it's 7o -- you asked what to buy. it's 70. most of the majors make a ton of money. instead of thinking that was the end of that rally, think again
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they are not done. they are not done, just because they are so lucrative and we are not cheap. >> 72 implies a 2 million barrel a day hit to demand. which they do not see coming >> no. >> if you look at some of the out-month futures covers really they are not counting on that? no the job -- didn't come off the peloton. >> it didn't. >> the job clock being what it was, being my wife using the peloton. >> meaning nobody is going to stay home. >> no, but peloton was up very big. zoom -- i have to tell you, i think zoom is interesting. >> you do? it did advance a great deal. i mean it was a good -- nowhere near where it has been of course, it is still down well over 50% >> look, my stepson works at zoom it is not like zoom is a helpful giant. >> but you could argue return to work is going to get a hiccup.
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>> exactly right back to hybrids. you have to do palo alto networks there is no back to hybrid we are only hybrid we are the only ones come in five days a week. >> what do you want a congressional medal for it >> no, i am telling you, hybrid is -- it is back to fully at home is what you are saying if there is going to be a change. the vast majority of employers who work in offices are coming in three days a week f that. >> over thanksgiving you really started to hear the younger people say, listen, they may ask me but you know what, huh-uh i am thinking when they asked me to stay at goldman six days, that meant seven days. now six days means three days. how about the younger power. >> many of the companies extended their dead lion for having people come back to the office at all. and they may do it again we are looking at january right now. but if this does, the variant proves to be a problem, then one
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conceivably could see them extend further. >> could you sell simon properties. >> no, that's the mall people keep going to the mall they just don't want to go to the office. >> at the mall there is shrinkage, they stole everything out of a nordstrom, i saw a guy at banana republic steal a sweater next he moo. i go, hey, man, how are you doing? >> no. also a really steep change for the retail industry. look at futures here we will talk more about black friday, ib intoer monday, retail as well as what the fed variant might do to fed policy we will hear from jay powell many times this week, including tomorrow "squawk on the street" continues in a moment. feel stuck with student loan debt? move to sofi and feel what it's like to get your money right.
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i don't know much else and so we will see the market react to this potential news unfortunately, at this point it's not clear to me based on my
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reporting whether or not mr. siegel, the longtime cfo, will step in, or whether an outside candidate has been brought in. there has been no shortage of rumors about potentially mr. dorsey who helms two companies, square and twitter, as their ceos would step down from a position he took over six-plus years ago. remember, dorsey of course, one of twitterer's founders. then he was ceo for a period of time then he stepped down then he came back as interim in i think it was october of 2015 and now i'm told again by people familiar with the situation that he is expected to announce that he will be stepping down again as ceo unclear whether that will be immediate once it is announce or perhaps at the end of the year there had been pressure brought to bear on him from elliot for some time, remember when they had some board seats no to longer did
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jesse cohen runs a large hedge fund elliot had potentially indicated he was looking for -- there was reporting to this extent -- a replacement for mr. dorsey, particularly when he announced he will be moving to africa. that did not happen, in part, because of the pandemic. that's where we stand. i know you have a long relationship with ned siegel. >> with him quite a bit? i am trying to get comments from mr. siegel as well. >> let's see if we can't get him. >> and get more on this story. now twitter shares responding positively the stock has not done particular chi well over -- it is hanging in there, jim, but it has not been a star performer. there have been those who say it simply underwell s in terms of what they can do with the platform and the power of the platform. at this point we do know mr. dorsey and square have been nothing but success with that
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company. >> yes you know it quite well, having exceeded $100 billion market value. >> when you have them on -- does it matter much who we have on? if it did, then the cfo, incredible at square, would be an easy replacement. would ned get it ned spends a huge amount of time basically day to day, i think he would be sensational i will say this, the idea that the stock would be up five if jack leaves is seen as bitter. >> i haven't been picking that up. >> that's the reaction. >> to your point, many people believe believe if he would step down it would increase the likelihood that twitter with look for a deal. that's not what i am hearing
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what i am hearing is an expectation that in the near term mr. dorsey will say he is stepping aside the exec chairman is -- and i don't have as much as i would like as we move on today we hope we will be getting more information. >> twitter has the olympics coming up. they are able to monetize better, direct advertising and branding coming on i was with ned on this show and i saw him after, and yes i have gotten to know ned over time, there is a sense of why is our stock down this much i think the reason why is because people think they have not been able to rake the money in that they thought they would at one point but, remember, the group is down -- down substantially. >> yeah. >> and you have metaverse
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changing its stripes but you have pinterest not doing as well as it was. remember, snap had a not great quarter. so i don't think -- maybe twitter could be bought by snap. it is hily unlikely. >> there was data this morning on social media engagement in general having topped out in 2020. >> you think zuckerberg -- people say he is doing this as a dodge. i think he is doing it because he recognizes, he realizes the money is going to be in the metaverse. i am sold on the metaverse because of jenson wong from nvidia, he they had to me things on time travel. >> you think social media is like web 1.0 and we are going to 2. >> i am getting the feel that advertisers have peaked out. ned would tell you, listen you are going to start seeing -- when you get to the olympics you are going the start seeing 80
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billion tweets, and someone is going to advertise there but i do think that there is -- i used the term onwee earlier, there is an on wee here, there is the feeling each reached everybody. >> there is reporting that square engaged in some conversation with paypal it moved quickly, i didn't do much reporting but we never heard anything from paypal on it but there is questions about pinterest and whether in fact that indicated their interest in potentially looking again at opportunities. >> why would you look if you felt the business was exploding? >> right >> by the way, i want to make that clear that is not at all what i am hearing with regard to twitter which is simply frankly not an
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unexpected change in the ceo many people never thought he would be sitting there six years as the khouw-ceo of two companies. >> no. >> we questioned whether that was something that could go on for long time. but it did. >> and salesforce? no, not coming back. >> they have got taylor on the board, right isn't there a salesforce guy am i wrong >> in mark's fabulous book, trail blazer, it talks about how the shareholders were in revolt by even talking to twitter. >> that's not coming back. >> the stock is up 150 points. i don't think he wants another revolley. >> they have been quite resourceful lately in developing new product. twitter blue is the subscription service we long talked about for years. >> i think twitter is making a major series of changes. and they are trying very hard to get rid of the people who would
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savage you and if you do tell them -- typically if you tell them, you know, nothing happens -- if you do tell them, they will get rid of people. i get no special treatment as anyone who reads my column would know but there is a sense they are cleaning the site up it never lost its luster among journalists or people who follow sports they were on real path this was ten days ago. i believe the path and they are only down because they haven't figured out how to monetize the other guys figured it out. >> by the way, jack tweeted yesterday "i love twitter. that's you will. i love twitter. >> concise >> i have met a lot of people from twitter. >> he charts his own path, mr. dorsey. >> people like that. >> they certainly do >> did he wear a suit when he was at square.
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>> philanthropic, one of the wealthiest men in the country. square bag key part of that, given what he has been able to accomplish there. >> square's stock is down big. >> from its highs. >> for the year. from 289 down to -- wow, what a pasting. >> you could say the same for twitter shares, which are back to levels that they were at the week they went public eight years ago in november of 2013. being public at 26. >> you do have pretty taylor, the chief operating officer at salesforce he is very much day to day very much involved, he is on board. how does that cut? he's on the board of twitter. >> of twitter. i don't know >> i think if you buy twitter up five you better have a good reason tomorrow why it is up five because you will come back tomorrow and say why didn't i listen to those guys i mean, there is nothing happening. nothing is happening jack loves twitter >> right
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he loves twitter >> loves twitter what is that, will be your buddy -- salesforce? >> i have a hard time saying i love twitter, but i certainly use twitter. >> yes, yes, i use twitter i posted terrific pictures. >> you have got a lot of people on twitter who don't love you. >> there is no reason to bring that up. >> but that's part of the -- >> i'm allegedly the top ten most hated people in america. >> isn't that amazing, the top ten most hated >> yep. >> that's incredible. >> normally when a cofounder steps down there is a negative reaction jack is cofounder. he wrote the first tweet ever. >> that's a little savage. >> look, you have had williams as ceo you have had another ceo, then
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dorsey again we will have to see. >> we need an acquirer i don't know anything about this, unless you want to merge square with twitter. >> that's not happening. >> that's not going the happen >> no. >> let's get to the opening bell here and the cnbc realtime he can change at the big board it's ubs celebrating the grand opening of the ubs arena, a sports and entertainment venue in new york. how about that. >> and vonnage a cloud communications company >> i knew john in college. bet fence him, that's a mistake. entrepreneurish. >> we will start the day at 2650 given friday's pain, it doesn't seem all that bad. >> no. snowflake a fabulous piece today.
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snowflake is the greatest stock from btig. that is roaring. i like that. i think frank doing a terrific job. how about this piece -- did you read this piece about amazon able to raise price without problem? >> yes >> what did you think? >> there was also a long take out in the journal about their ability to continue to expand and getting closer and closer to cities with massive facilities we know all the people amazon hired over the last two years, they have also done a lot of building, not to mention building out their districts force in terms of trucks and ships and planes >> i like amazon very much part investment club. most do you remember curious note today deutsche bank, younger investors will like this deutsche bank raises its price target for penn nat. the analyst and port now of penn
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nat had conversations. he was furious at this fellow for not understanding the power of nothing other than dave portman himself who apparently does lay down big bets. >> penn national 52-week low as of last week where are we on gaming, specifically macao and vegas names. >> wynn has always been weaning itself away from the junkettes of macao, which is under pressure i come back to macao being a covid play, and where is china can you imagine with a variant shows up in china? their vaccines are not as strong as ours do we get another
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shutdown do we get another semiconductor shortage >> others countered it is taiwan that you need to worry about, and malaysia. >> flyovers, another 27 plane this is weekend. >> i mean from a semiconductor supply standpoint. >> taiwan semi they are building here it takes two years to build these things i think people have to realize that that's a long time and they are not going to go for the full featured, which is what we really need, they want to go for high performance, where the money is david, whenever we hear about full feature -- basically there is 200 chips in a car and there is one that cost $2 that's not there so they can finish the car, the vehicle, the vehicle. >> when is that going to resolve itself, because you have been more positive than the consensus on the ability to get through this more quickly. >> i think wage is a big problem. i think ford, which my trust owns, has been the best at sourcing i think if you don't give mary
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berra some chips at gm you are making a mistake because they are such a big customer. i have said jim farley seems to though how to cajole people get the chips. >> right. >> and remember, farley has got that debt. >> nissan, the latest to announce a fairly significant dollar initiative to go electric $17 billion they are going the spend over the next five years to finally compete >> rnl chaing stocks, just like throwing money away at those. >> is that what you see it as, throwing money a >> whenever there is a commodity aspect you have to real how much money has been lost historically when you buy a commodity stock in any new business. there is nothing priority terry. there was big incentive buying at draftkings. but they are still spending a lot of money to get customers. the customer acquisition is playing havoc.
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that and the fact that some states have as many as 20 different operations to gamble i just think that's a very tough business, right now, until there is a shakeout. there usually are shakeouts, but we didn't know how long that's going the take. >> there are, will there be shackouts amongst the manufacturers as well. rivian down last week, up nicely today, back above a $100 million market value the big leader is up almost 3%, tesla shares >> by the way, twitter has now lost half of that great spike as people realize wow i guess salesforce is not coming back. >> when i comes the twitter i wish i had more to share there. >> what is he doing? he's not coming back to us at all. >> when and who. we will share as soon as we get it >> i am asking for a call-in. >> yeah. i tried that
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didn't work. >> but you are not his friend. >> i am not. >> get beniac to call. >> i don't have your phone we established that. >> we both want to georgetown. not looking good in basketball -- i don't want to devolve into sports. too big a day. >> we are going to hear from salesforce in this before of earnings, along with crowd >> i look forward to hearing from marc benioff in tomorrow's show mark -- i don't want to say he's confident because he's cagey they are doing a lot of business, the business is unabated some businesses have been uniquely discovered they work well on the zoom salesforce has worked well on zoom workday has done well on zoom. >> you surprise me when you say it is time to look at zoom the
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stock at 210. >> so much cash. >> there was an analyst we had on tech talk saying it is trading at something like 35 times which i guess is supposed to be a good thing. >> they can buy someone. that's what i am talking about, they have a lot of cash. you can buy someone. that's your world. but they have a lot of money. >> outyear 35. but not near time. >> five nine is using older technology, the issue with zoom is if they don't do something to onboard customer acquisition they too are in this dogfight. >> against microsoft that's not a great place to be. >> you have got a point there. microsoft is a powerful opponent >> microsoft is a great money on list, everybody loves it they basically can spend as much as they want you can never outspend them. it is like going up against the u.s. government when you are -- >> that's what i was going to
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say. i think zoom has an installed base that is consumer. they need to go up cisco wants to go up, too. but teams is building to -- teams reminds me a lot of when you used -- remember the browser with microsoft, the browser used to pop up and there was nothing you could do. >> yeah, yeah. >> then what happened after that >> there was this answer trust thing. >> david is right. they are so powerful they are like the government. when the government hears that are you trying to get something going against them. >> microsoft no, they are down the list a little bit. >> they have been avoiding any -- >> there are investigations going on, the d.o.j., and alphabet, and the ftc and meta they are trying to come back even though they were shot down. amazon. >> did you ever notice there is a company you would have to pay $200 million to run this business if i was rounding per don'tia, i
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would charge them $200 million really. >> do you know that country? >> i do, groucho marx. >> egg spf legislative responsibilities, the debt limit, fundsing the pentagon, passing build back better f that's possible in the senate. they are back today. it is hard to believe that big tech is high on the radar. >> no. er right they have got a lot of work to do and the usual -- not so good by the way in terms of things that are just not so good, paypal once again getting slammed. a vem of everyone, and everything >> what do you ascribe it to >> i think people decide to buy now and pay later is all that matters and paypal's method is no longer cutting edge i think it's wrong i would love to hear from dan shullman to get a sense. >> visa and mastercard have also
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taken it a bit, haven't they. >> all buy now pay later by the way, a lot of people regret buy now pay later in surveys. a lot of people regret they did buy now pay later. >> instead of paying 17% to their credit card company, they regret it in maybe not using dent at all. >> buying now and paying now buy now, pay now >> debt is an illness. i used to say that when he had a hedge fund, you have to throw a maiden in the volcano. that was not the way, that was a term maiden mader, maiden. >> i understand. >> okay then. >> i can't say you are okay. but you are okay with me. >> fine. >> you are okay. he's okay. >> right. >> merck is not participating in this fondness for big pharma there was a downgrade over at
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citi to neutral. jim, they are looking a the probability of them abandoning some hiv development on some high regulatory concerns >> then he starts -- i mean, that piece that's what i call a -- i'm skeptical about that piece because he starts talking about the loss of exclusivity for key treatment. that occurs in 2028. i would worry about that in 2026 i will not sweat the program merck is a very good company david, you followed the anti-viral i thought the subtext of that was the anti-viral didn't pan out. >> well, i disagree. >> about the piece. >> the piece >> the piece. >> sorry i didn't realize that's what you were referring to. i thought you were actually referring to the -- listen, the numbers candom down from 50% to 30% of hospitalizations. >> merck is below where they were before they came up with this. >> the larger expectation is you were still going the get an
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approval of the anti-viral and it will tell billions of dollars worth because it will keep people from dying. >> regeneron has drip. no one wants a drip but here's the stock coming on. >> regeneron -- it is a five-day course of taking a pill, at home. >> you get the drip. >> it is harder still to get infused and go and do all that. >> no one wants to be infused. >> right. >> no one wants to get sick. there is a smart thing i hope one day i am quoted on that no one wants to get sick i delivered a new low of things i have said. people want to get better. how about that i am coming down on the flu, really bad flu lots of people die were the flu. lots of people get the flu shots. and they tell you you have got 50% chance of not getting the flu. how about the other 50 this is better. >> with efficacy in the 40 to 50 range. you think if we got news in the next couple weeks that vaccine
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has similar efficacy against omicron that would be okay >> yes, i am going to say yes because of what dr. bourla said. and they are cagey at pfizer i mean they may have a pill that makes it so that you get it and you get better look, let's talk about the flu for a second people don't realize there are yours we have terrible flu look now there is nothing hand it to these guys. >> there is tam flu. that's what we early on compared it to, the oral anti-virals are more effective. >> do you want to bring that comparison back and say tam flu is not as good as these? i am being sanguine not today because the market is up if they see someone who landed is in the state of washington they will say i have got to sell we have got to guard ourselves against silly sellers. >> we mentioned powell earlier in the hour. what do you think they say about this do you think these calls for an earlier taper are dead.
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>> no, it's -- yeah, i mean, i think powell has said over and over again, we have got to get through the pandemic and he's been right the whole way. and yet there is all these -- if i were a member the fed i would say, i defer to the chief. i remember the old days you never knew who these people were in in the '80s they were people who put out regional numbers at what point does powell get benefit of the doubt for being right constantly. >> thank. >> do you remember when he was nominated that he thanksed his wife, she's in his corner. >> yes, that's a nice thing when your wife is in your corner. >> i lack that one point no, i want to wish karen
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cramer -- >> the ex. >> i don't want everyone to think my whole life is just a shambles that would be a mistake. how would i have the top ten negative twitter if my life is a shambles do you think they won, they beat me. >> dow up almost 200 vix still around 24.5. let's get to bob pisani. >> good to be back after a week of a we have got a bounce in the dow but not near the bounces we had on friday. bounces in apple, ibm, yes, but that's offset by pharma and consumer staples let's look at the sectors. energy with a bounce in oil strong tech strong because semiconductors are leading it. banks are bouncing back on higher rates consumer discretionary doing well the staples kind of weak here. of course what we have got here is, he in. you have got disney, even walmart if you consider that a staple though it is not really technically, but all of that is weighing on the dow preventing
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it from moving forward here. semiconductors strong. it is a round trip for them here nvidia, it was 326 on thursday it went to 314, now it is close to back to where it was on thursday this is similar to a lot of some of these big high beta tech names that have gone full circle here crude is back at 72. but that's the same story. remember what happened here, we were 78 on thursday in crude we went to 67 on crude then we are back to 72 oil stocks are bouncing back nicely here. but these are all the high beta names. apache, occidental, hess, hall burton and marathon. travel and entertain men carnival was at a 52-week low on friday we saw the airlines drop but you will notice, the companies that take you places are notably underperforming the companies where you can go and stay or be entertained airlineses and cruise lines are
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doing worse than companies that have entertainment like live nation there is a noticeable between those two types of travel and entertainment stocks very wide reaction to a lot of the people over the weekend that i was talking to even on strategists. as i was looking at it last night into this morning about what this omicron variant means for the stock market overall goldman was saying more infections are likely, he had several scenarios but didn't change his forecast. almost no one did on wall street wells fargo not making a change until more is don't. ubs raised the possibility that this could reduce early fed tightening that was a common theme amongst people i talked to rbc said as for what happens in the broader markets the possible
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effect is the hampering of the cyclicals and the recovery stocks overall that makes the most sense to me if you look at omicron and what it could possibly do, slower growth and lower rates benefits tech stocks overall. that was one of the things we saw recently, faster growth and higher rates will benefit cyclical stocks. that's a simple economic fact. to the extent that you can figure out what the effect of omicron is going to be on those two issues you can figure out where the stock market is going. everybody else i called this morning early on said bob, the bottom line is we are still at 1.56% on ten-year yield. that's really what matters we were at 1.56 on thursday. we went to 1.48 on friday. and now we are back to 1.56, essentially, on the ten-year yield. so it has been full cycle around just like it has been full cycle around for some of the tech names. overall, that fact, the fact
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that it is still not going up or dramatically down is what is keeping a lot of people in a very, very quiet state most people, carl, are saying i am not changing my forecast until i know a lot more about what's going on. >> exactly how goldman put it last night bob pisani. coming up in the next hour we will take a closer look at bitcoin, bouncing back after falling below 5k on friday we will take a look at the bonds report as well look at treasuries and how they are faring the ten-year still fairly suppressed, especially at the long end, 30-year well below 2.0. and we will hear from powell and yellen tomorrow in front of the senate banking we'll be right back.
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whatever i can do, whatever my companies can do to make it accessible to everyone is how i'm going to spend the rest of my life. if i were not at square or
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twitter i would be working on bitcoin. if it needed more help than square or twitter i would leave them for bitcoin. >> maybe we'll get more evidence of that following david's report that jack dorsey will step down as the ceo of twitter. we know of his interest in crypto. >> we also know ned siegel, cfo who is very powerful, has no desire to make that be the fund mental thing of their company. >> think it might have been a strategic disagreement at the board level? >> i think there is a love of someone who likes bitcoin but has not been able to say mandate it even when i spoke to the cfo of square, she's much more pro, but they don't have it right now >> a lot of it can be encapsulated in that chart put it up against square over the six years and it's a different look. >> what? there's not been that much 85% is fine. not keeping up with peers and not nearly as successful.
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>> square is more business. >> what we're talking about there. and the question has always been out there as to whether you can do effectively two jobs and mr. dorsey charts his own path, a singular one in many ways. a lot of pushback when he was moving to africa for six months. >> now we have to hold for news on twitter >> okay. >> it's so hard when you're a reporter to say why are you interviewing ned siegel. why are you interviewing cfos? >> proctor's vice chair, cfo comes on. >> that stands for having powerful cfos and the square cfo is so pro bitcoin and when i speak -- i like these cryptos. >> yeah. >> i'm kind of anxious to see what they will do, whether you can have a bank of crypto, they're not there yet but they want to be, but then you speak to the traditional banks an want
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to wire your ethereum into them, you're wiring kryptonite into us i begged jpmorgan, lease, i've been a customer for 30 years, let me send my ethereum to you because i don't like getting 8%. i'm getting 8% and you know that the head of the sec, right, he -- >> perplexed by your 8%. happy to take it but perplexed by it as well. >> yes happy to take it >> yes. >> perplexed by it i shared that with gensler. >> doesn't make any sense. >> what do i do? i go over it and say to myself, this is ridiculous i'll take it i don't want that 8% i just want peace of mind. they said you can have whatever you want but not putting your ethereum with us >> maybe they're short the turkish lira. >> they probably take it >> short it with your money and able to make those returns st >> oh. >> give you 8%. >> i was thinking they were short zoom and long moderna with
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my money. >> no. >> just kidding. >> i have an interesting, squared for you -- >> my crypto was mentioned, was cited by gensler cited them and, you know, david, look, you have twitter hold. thanks for nothing. >> we'll get the news and find out who will replace jack dorsey -- >> i have -- >> not able to find out. wish i had been able to find that out. >> who do you have dorsey >> you mean betting odds >> everything now. we're like britain >> bet on everything >> molly no show 100 to 1. >> who are you laying odds on? >> laying odds on ned. hoya sack sa. >> makes the most sense. >> that's the highest ambition. >> best odds. >> we have great insight here. that's why people watch. incredible insight. >> i'm going to show you,
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because i'm a full disclosure guy, ned, thoughts, call in. nothing. how is that. >> snooze. >> what's that 6 to 1 down to 2 to 1. >> same for me i have nothing zip. >> 5 to 2 odds. >> you will have a lot to chew on tonight, jim. >> oh, my. i have ned segal from twitter. >> not yet. >> i have harley from shopify. we have to get cyber monday numbers, right because those black friday numbers we didn't go over, a lot of people felt were disappointing. we can shop anywhere well -- stew we didn't talk retail at all. >> it's a shame. first drop, at least according to adobe, first drop in black friday ever. >> i know. >> i think a lot of people got it done early. interesting one. doordash down a lot. doordash did great during the pandemic what is that about interesting idea. >> it's up on friday, wasn't it?
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welcome back to "squawk on the street." i'm diana olick with breaking news from the realtors a huge surprise to the upside on october pending home sales these are signed contract on existing homes they jumped 7.5% from september according to the national association of realtors. the street was looking for basically flat sales were 1.4% lower than october of last year, but last fall marked a cyclical high. pending sales are a forward looking indicator of closed sales in one to two months fast rising rents as well as rising mortgage rates and fear among potential buyers the rate wills move higher. take a look the average rate on the popular 30-year year fixed was just below 3% the september, climbed to 3.22% by october. that may have boostds sales. regionally sales strongest in the midwest and south, rising
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11.8% and 8% in the northeast, pending sales rose 6.9% from october in the west, they increased 2.1% a big unexpected fall surge in home sales carl >> fascinating, thank you. diana olick. good monday morning. welcome to another hour of "squawk on the street. i'm carl quintanilla with morgan brennan and david faber. markets trying to get back some of friday's losses but off the opening high dow up 129 a lot going on as we watch the variant and impact on the economy, public health and rates. >> 30 minutes into the trading session. here are three movers zoom video sliding in reversal from friday. it was one of an array of so-called stay-at-home stocks that are moving lower today as the broader market does rebound from friday's sell-off those shares are down about 3.5% right now. wynn resorts, lower along with the gaming sector of the biggest gambling hubs, biggest casino
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junket operator, ceo of sun city was arrested over allegations of illegal gambling and money laundering wynn down 1% twitter now halted after david's reporting that ceo jack dorsey is expected to step down he'll have more on that in just a moment but first, moderna is shooting higher again after a 20% gain on friday meg tirrell spoke with the ceos of moderna and pfizer on how the covid-19 vaccine makers plan to battle the new omicron variant what were the headlines? >> morgan, these companies are getting prepared they say they've run through this before with previous variants and they have their battle plans really laid out here for moderna it's really a three-point plan they are testing a high dose booster, that's the 100 my grow gram dose of the primary series, they use a half dose for the current booster, looking to see if a full dose booster can stand up to the variant and looking at
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two multivaccines they've developed that targets parts of beta and delta and then also working on a new omicron variant specific vaccine here's what stephane bancel said about the strategies and how they'll make the decision. >> the higher dose could be done right away it would be months before the omicron specific variant is ready to ship in massive quantities the vaccine efficacy impact when we learn that in a week or two, depending on how much it dropped we might decided to stop giving the higher dose around the world. >> all of these companies expecting data on at least in lab studies, how well the vaccines hold up against the new variant. pfizer also told us that it started on friday developing a new vaccine construct targeting omicron, and they also, of course, have their anti-viral drug as well, which they don't expect to be affected by this new variant. here's what albert told us about
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that >> when it comes to our treatment, it was designed with that in mind, designed with the fact that most mutations are coming in the spikes, and it's not related to the spike that gives me high level of confidence, that the treatment will not be affected, our treatment will not be affected by this virus. >> so, of course, they've got to verify that. good news there. they told us this morning they vooesed their manufacturing estimates for next year, expecting to make 80 million treatment courses in 2022, up from 50 million. a lot of demand coming in for this drug as it gets through the regulatory process and could provide this great backstop not being affected by the variant. guys >> yeah. i mean such great work, as usual, meg that headline around the possibility of pfizer being able to produce 80 million courses of that covid-19 pill certainly getting a lot of traction this morning. speaks to realize there's still
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a lot of question marks and what data yields over the next couple weeks. what production pace could potentially and buying i guess demand from different countries around the world could look like for these vaccine makers if, for example, you do need a new specially i guess reconstituted booster or vaccine in light of this variant >> yeah. that's going to be a huge question if we need to rejigger these vaccines and get new ones throughout on a timeframe faster perhaps than we were going to be distributing booster doses for the next round of boosters there are going to be a lot of questions about global distribution and access, as there already have been, but there's been calls, of course, if we need the updated vaccines, that places like south african countries where this variant is circulating should get early access and whether that will be feasible, how that will work, all will need to be worked out it's going to be complicated >> meg tirrell, thank you. we're going to go to our next guest on the market's impact on the covid variant.
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joining us is wilmington trust cnbc contributor meghan shoe and adviser's capital management partner joanne funny good morning to you. meghan, it was an ugly day on friday for the markets, just across the board we're starting to see a little bit of a rebound here for the major averages how do you position yourself as an investor, given there are uncertainties around the variant and the market was looking pretty expensive, at least parts, coming into this? >> yeah, absolutely, morgan. you're right we've got clearly much wider range of possible impacts on the economy over the next three months, and i think for equities it really elevates the equity risk premium and investors need to be careful about what they're paying for certain stocks and friday's action was certainly exacerbated by low liquidity and a lot of people not at their
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desks in a post-thanksgiving holiday. but we saw a lot of reopening type of names move markedly lower. the stay-at-home stocks did well, but maybe not as well as you would expect because as you point out, valuations are already quite elevated for a lot of tech names and so going forward, over the next few weeks, i think probably the volatility is not over we are certainly more likely to get more negative news about the o omicron variant spreading before what it means for the vaccines out there. investors should be watching hospitalizations because i think that's indicative of what could happen from a policy perspective and then on the market side of things, credit spreads which are, of course, have elevated quite significantly along with the move lower in equities if those stay elevated, that could signal more turmoil underneath the surface. >> how do you see this market
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right now and how are you advising clients to be positioning themselves is it an excuse to take money off the table or are there areas where you think, despite the fact that major averages are up double digits permissiocentagesr the year, you can ring returns out of here right now? >> i think friday was a reminder that these risks have not abated we've been watching for covid risks all along, along with inflation risks, and have positioned client portfolios to be prepared for this sort of volatility you know, we don't know enough yet about where this virus is going to go, as friday really revealed, and we still don't know really what the omicron variant is going to do what we've done for clients is to make sure they're more long-term focused. we don't think that this is going to fully or even majorly disrupt the recovery in the supply chain there could be bumps along the road and that's what we saw in
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some of the reaction on friday, but ultimately, right for investors to be positioned longer term, you won't both in the portfolio. we think the recovery continues, unless this thing proves to be deadly and the indications are not in that direction, and so you want to have some exposure to recovery and reopening as supply chains and production really starts to come up companies like a williams-sonoma, a t.j. maxx and amazon, for example, but also to stay exposed to those long-term secular technology companies we think qualcomm is particularly inexpensive here and has a lot of room for growth with iot, 5g, and other applications and think a diversified hardware semiconductor company like broadcom is a good place to be for investors the danger is to be too short-term focused. covid remains a threat we don't know exactly how this particular variant is going to play out
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if you hold some of these secular growth names plus recovery names, and then also remain exposed to the broader economic recovery, for example, through owning banks and insurance companies and even energy, we think that those really diversify a portfolio well as you know, we use individual stocks to build our client portfolios and so we can really pick and choose. while the market overall might look a bit expensive, there's still very attractive valuation opportunities out there. >> and that reprising on friday, meghan, drew in some retail buyers 2 billion of retail inflows as the second biggest on record according to some data this morning that buy the dip mentality apparently is there among some >> yeah. i think investors have been looking at the gains so far this year across equity indices and feeling, you know, perhaps they've missed out i don't think investors feel like they need to rush in today.
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let's settle, let things settle, and see where the news pans out. it is giving another bite at the apple at the value trade we've seen massive outperformance over the last few months of the growth factor over value. we are positioned with a slight overweight there financials, energy are good sectors to be involved in. international equities as well u.s. large cap is certainly most protected and we've seen that more resilient profile in light of higher covid cases, higher tech exposure, but i would say the international markets are not to be ignored and they are offering tremendous value relative to the tech heavy u.s. large cap equity index. >> okay. ladies, thanks for kicking off the hour with us, with the s&p up 1% this morning did want to turn back to twitter, and its shares which are halted now, news pending, about an hour ago we reported long time ceo and founder jack
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dorsey was expected to step down from this position as ceo. by the way he still is the ceo of square, a company as well he was instrumental if founding dorsey has been founder and ceo previously of twitter, handed the reigns off to a couple ceos and then came back we can see sort of some of the history there in september-october of 2015. his title briefly was interim and then became permanent ceo and has held that position, along with the position as ceo of square, for these last six plus years and there have been at least noises, let's call it, about certain shareholders who, perhaps, may have thought that his attention was not squarely focused on the company, and, therefore, the company might be better left with a different ceo. but that has not forced him out. elliott kind of came and went. they own the stock, but jesse
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cohn leads the activist practice at the large hedge fund, elliott was on the board and stepped off in june. morgan, my reporting, unfortunately, while i was able to confirm to my satisfaction mr. dorsey would be stepping down, not able to find out who is going to replace him and that's the key question for the market the shares had been up a bit more, perhaps on expectations or at least hopes, i should say, somehow this would spark the possibility of an acquisition. that is not anything that i've been hearing at this point, but we see the stock did end up 3.4% prior to its halt and now we're waiting for news >> it looks like he steps down from twitter, although maybe question marks, at least right now on who takes that title from him, but he remains squarely at square, which is also carrying out a lot of his crypto currency and bitcoin ambitions. >> my understanding. i misspoke when i said who was
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the current exec chair of twitter, he had been, patrick is the independent board chair, former cfo of google some time back but it is this board obviously that is key here in terms of the succession plan and we'll have to wait and see what it is is it ned segal, no stranger to people who watch our network, typically he is the man that communicates earnings and other news for the company we don't know. >> that's it >> that's it. >> that's it news pending. >> let's wait and see what news is >> that's the pending part. >> yeah. >> okay. as we head to a quick break, here is a look at our road map for the rest of the hour the tsa screening nearly 2.5 million passengers yesterday, that is a new pandemic high. it goes back to before the pandemic here in the u.s., which airline stocks are safe to own right now. that's a key question for investors, is the omicron variant looms. >> and then joined by the ceos
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of denny's, will covid fearsed three a slow down in traffic we'll find out. >> we'll have more on mr. dorsey we just talked about it. we are waiting for that news from twitter the stock is halted news pending. more "squawk on the street" straight ahead. esg is responsible investing. who's responsible for building esg into your investments? at pgim, the pursuit is on for outperformance. as active investors, to outdeliver with customized strategies, integrating esg best practices into our investment decisions. as asset managers and fiduciaries, to outserve, with our commitment to better esg outcomes. join the pursuit of outperformance at pgim. the investment management business of prudential.
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pichette. airlines feeling the impact of covid's omicron variant the u.s. barring entry today for travellers from south africa and seven other countries. airlines were hit during friday's sell-off, now bouncing back a bit our next guest says it is a buying opportunity joining us this morning, raymond james airlines analyst, to talk about not just the variant, but the boarder closures we've got in japan and in israel it is going to create some impact on international travel is that where you're looking first to avoid exposure? >> international is where kind of the greatest concern is when you have these travel restrictions those airlines with greater national exposure are at risk. i would say that so far, it's been somewhat measured for the -- relative to the reaction of the stock market. we took some of our numbers down today across the board for our north american and european airlines just because of the covid case rates and not because
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of omicron i think there's going to be a rising cases and travel disruption through early january. the opportunity to buy quality stocks i would say >> where does that lead you? where are your ratings the strongest? >> so we would look to, you know, domestic airline like alaska, we have a strong buyon i think that's a high quality name, not as exposed to some of this international disruption. even, you know, an airline like kopa which has international travel but think about south america, they're heading into their summer season and don't have the same covid case rates increasing that you see in the northern hemisphere as we head into the winter season we would look at delta at this time, even though they have the international exposure, it's a high-quality stock and as far as we can tell, we're keeping an eye on omicron but it seems like it will be manageable and something that passes early next year >> from an investor and stock standpoint, i mean, can we look to something like delta and the
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way that variant has played out in recent months as a playbook for how the airlines and how the stocks will react to this new variant? >> i think so. again, there's a lot to be known. there are reasons to be concerned about the mutations. i look to our health care policy analysts to educate me on that front, but again, i do agree, i think case counts go up and the biggest concern for u.s. airlines here is the pushoff of kind of the recovery in business demand lee sure demand is back. people are visiting friends and relatives and going on leisure trips. it's the business demand recovery we're waiting for and things like this kind of push things off i don't think it's necessarily related to this new variant. this is more related to case counts going up as we head into the winter season, and that's probably going to be with us probably not peak until mid-january. something that will kind of weigh on shares in the near term. >> that's a great point, as
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corporates are very adaptable to changing circumstances thank you so much. >> thank you now to discuss the impact of the variant on his company and the airline industry as a whole we're joined by the ceo of minnesota low-cost carrier sun country. jude bricker the numbers prior to thanksgiving and over thanksgiving looked pretty strong at tsa. do you expect any change, given what we're hearing from this variant? >> since covid began, what we've seen is a suppressed booking curve. people are booking closer to their day of departure than precovid we're watching december, december bookings look really strong right now, and omicron hasn't changed that. we will know more in a week as cyber monday plays itself out in the next several days. right now it looks really strong >> what -- i mean do you -- do you expect that there might be a
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hang obviously we might imagine international flights could be reduced as a result of this, if, in fact, it does fulfill people's fear, but domestically would you expect a reduction in traffic as well? >> we're not expecting that. our network is focused primarily domestically and on lee sure, which i expect to hold up well we have a little bit of international going into mexico and the caribbean and those bookings look pretty good. we're seeing a little bit of an increased cancellation rate on some of our, you know, non-mexican international destinations which is a pretty small part over network, but right now everything is positive we have a cargo business, which is, you know, exceeding all expectations right now, so, you know, our business is really good and we're constrained predominantly how quickly we can hire to staff up to the opportunity. we also out perform the industry through covid andi think if omicron is a big deal, our out performance will -- or margin of
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out performance will increase, you know, obviously we hope we fly through this and get into a more steady state environment quickly, but omicron, you know, we would look at if it does affect demand as an opportunity to make investments for a recovery in airplanes and hiring and network expansion. >> jude, it's morgan i want to get into the cargo piece since it is cyber monday before i do that, given the fact that you are the ceo of a large workforce that is on the frontlines, any time there is any new covid variant or any kind of uptick in cases, how are you navigating that, given the fact that there's still so little we know about omicron and how are you communicating that to your employees? >> we have a vaccine mandate like every airline you know, i think it's just about safety practices we're trying to keep our employees safe and, you know, we have a mask mandate on the aircraft just, you know, do the best practices as we know how to do
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we're not epidemiologists, but we've been dealing with covid for long time and know how to behave ourselves on the airplanes. i've had a remarkably low rate of covid positive cases within my workforce we're just going to keep doing what we've been doing. i don't think omicron changes that >> so from a cargo standpoint, what are you seeing in terms of the flow of goods and all of the packages that are loading in your planes, some of which i know are flying cargo for amazon what are your expectations for these peak shipping season have you seen some of that pulled forward, or do you expect to see gang buster numbers in the coming weeks than jgeneral? >> we're flying more than we've ever done before, and i would expect that to continue right on through to january and it's -- so we can't add incremental aircraft that responsibly, but we can fly the ones we have more and that's what we're doing it's been -- it's just -- i mean
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there's more packages to carry than we got planes to deal with right now. >> all right that's what we call a high-class problem. >> yeah, it is. >> jude, thank you >> good to see you guys again. take care. still to come, meta, amazon, apple, alphabet, all negative last week. we'll dig through the possible buying opportunities in tech when we're back in a couple minutes.
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welcome back to "squawk on the street." it's time for our etf spotlight and first trust nasdaq pharmaceutical etf ticker ftxh. that's about flat on the year under a little bit of pressure this morning it's under performed the s&p by 20% this year. second largest holding is merck. that's where we focus our attention today because those shares are falling after citi downgraded the stock and the hiv drug will hurt merck's long-term potential. a note that's not related to covid-19 stock is now negative on the year down 4% right now. >> dow gain down to 45 points. a news update. rahel solomon has that >> hi, carl, good morning.
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here's what's happening at this hour negotiations over iran's nuclear program have resumed officials from the remaining participants in a 2015 arrived at a hotel in vienna, russia, france, and the uk in 2018 then president trump took the u.s. out of the deal. iran responded by ri assuming its uranium enrichment prompting economic sanctions and iran will not return unless sanctions are lifted jussie smollett's trial begins today. the actor who starred in "empire" told police he was the victim of a hate crime he's now accused of staging the whole thing, which he denies today a jury has been seated and opening arguments will begin in the trial of ghislaine maxwell, accused of recruiting and grooming young girls for he jeffrey epstein to abuse bbh.ell has called the charges ruis "squawk on the street" continues after this.
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the fed closely watching the omicron variant as it weighs an accelerated taper. steve liesman has more for us. steve? >> good morning, david unless convincing evidence emerges before the next fed meeting that new variant is mild an accelerated taper is almost certainly off the table as the fed was not likely going to make the move in the current uncertainty. pantheon writes over the weekend, if a clear and reasonably positive picture has not emerged by the time of the december 14 to 15 meeting, then the fed presumably will delay the decision to accelerate the pace of tapering this turns the new consensus on its head days ago, growth forecasts were rising, the job market looked to be accelerating and growing conviction the fed was worried enough about inflation to speed up the taper three scenarios are being gamed out. obviously there's the base case,
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the new base case, that is, the fed would keep the current taper pace in place as it awaits information. the best case, the variant contained or equal to delta. the fed would revisit a faster taper in january now and pass possible rate hikes in the spring or early summer always the worse case, where the variant requires a re-set of all the immunizations so far and lockdowns and consumers pulling back, the taper would, of course, halt in that case. barclay's write, the risks are clearly tilted to the downside as only in the best medical scenario would the global growth scenario return to where it was. the fed futures 40% on a may rate hike, not completely dying out the possibility of a faster taper. stronger dollar and lower oil prices that gives the fed leeway in dealing with inflation for
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now. turning to tech, twitter halted for pending news after our own david faber reported that ceo jack dorsey will step down joining us tech analyst brant bill and cowan research analyst chris sancar i want to get into the broader moves throughout the tech sect tors but the fact that we have the headlines of a change in the guard. your expectations about what that succession plan could look like and what it means for the company? >> good morning. it's a good thing. obviously twitter has been under performing materially, facebook and snap and a number of other names we cover have had out performance and twitter has had multiple concerns around quality of product, quality of inventory. they certainly had numerous issues this isn't one or two quarters this has been over multiple years. the stock has under performed. this is the need to change
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clearly this is what investors want as you saw in the premarket and currentry in terms of how the stock traded prehalt, so we think this is a step in the right direction. ultimately, they need to fix the product and improve the efficiency for advertisers in the solution that's still, you know, we have that to see what they do on the product side, but clearly this is i think ultimately for investors a step in the right direction. >> okay. and just expand this out, i mean we have seen most semiconductor names performing pretty well in recent weeks, if not in recent months given the fact that we have this new variant and all these question marks around this new variant and you're starting to see, i guess, i don't want to say shutdowns or lockdowns, but some crimping of the flows of people to different parts of the world right now, potentially, if you continue to see rising covid cases, i would imagine goods, what does that do to the supply chain for semiconductors and by the way for apple that's already
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so strained? >> sure, morgan. thanks for having me i would say two things number one, what you saw last year and also as recent as july, late june, early july, a spike in covid cases in malaysia, a lot of the supply chain did get shut down and had an impact on the semiconductor distribution, because there is quite a bit of supply concentration in asia, malaysia, vietnam, philippines i would say any kind of spike in those areas could have a slight negative impact on the supply chain which is already stretched given all the component tight ness and lead times. to apple in the long run might be a challenge, but in the near term to the december quarter, apple probably has enough component supply to meet where the content was forecasting, 20% growth year over year. in the near term the december
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quarter into maybe march numbers are fine, but if this pro longs, i think it's something to worry about, given it could crimp an already stretched supply chain. >> you have a large coverage of universe, and more broadly before the news of this new variant, pretty large down with software and cloud stocks. are there buying opportunities at these levels? >> we think there are. the market condense into a handful of names,, microsoft, we've seen a flight from higher multiple names, names [ inaudible ] i think you're seeing this consolidation to the strongest get stronger. so ultimately, we think that some of these names still represent an opportunity i still like the large caps. we've talked about the four large cap picks we like, adobe, microsoft, crm and intuit.
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great story, they've had multiple years of great out performance and those are the safe names we look at companies like a v vimeo who has seen a high of 16, low 20, that story below 20 is interesting. iron source, a spac below 10 we like the story around the mobile gaming and app ecosystem with tomo bravo involved, one of the best software investors on the planet that's a great story as well we think there's a handful of names that look interesting. you're seeing the consolidation play back to the larger vendors, and it makes sense ultimately the internet, you look at amazon, under performance relative to google going into '22 we like the setup there. >> i'm going to put the same question to you based on your analysis, what's on sale in your coverage >> sure. i think, morgan, look on the semiconductor side, those that i cover, like them
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your classic picks and shovel scenarios, the growing semiconductor ecosystem you have the cyclical buys which are strong, you have the up an shoring or the silicon that are going to help and technology benefits applied materials these are names which have a long and strong buy if you take a long term lens apple, we like it. in the near term there's data point driven investing that impacts the name they have been positive. but from a long-term trend standpoint apple is a cash flow generating machine >> okay. gentlemen, thanks for joining us today. we're going to stay here because we did get that news from twitter we've been waiting for, news release just popping
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up here. let me go through it jack dorsey has decided to step down as chief executive officer. the board has unanimously appointed parag gral dorsey will remain on the board until his term expires at the 2022 meeting of stockholders brett taylor, we were talking about with jim, salesforce executive, has been named new chairman of the board will succeed patrick beau shay. a shakeup on the board beau shay will remain on the board. a quote from dorsey. i decided to leave twitter my trust in twitter ceo is deep. his work has been transformational, and i'm grateful for his skill, heart and soul it's his time to lead and a number of other quotes here as well in terms of agrawal
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he joined twitter in 2011. he served as the company's chief technology officer since october of 2017. he's been the cto and is responsible for technical strategy, leading work they say to improve developmental velocity, while advancing the state of machine learning across the company. and he has been, again, at the company for over or roughly ten years. there had been speculation on this desk, of course, carl, that, you know, long-time cfo ned segal would be in the running. no word on him in this press release. >> they make note of him being the company's first distinguished engineer for his work a couple years ago in accelerating audience growth, 2016 and 2017. no changes to guidance for the quarter or year or its 2023 goals, david that's where it's really interesting. their long-term target on the
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user base is something that the bears have been scrutinizing heavily. clearly they're going in a direction they will lean on technology to get those numbers up. >> this is effective immediately. so jack dorsey is no longer going to be the ceo immediately and has been succeeded by mr. agra wahl. we'll see what the response is the stock once we reported that mr. dorsey was expected to step down, let's tall it, around 9:15, looked up significantly in the premarket. did move as much as 10% higher in the early trading prior to being halted, but then started to come down some of that may have been hope or excitement somehow this would be associated with some sort of transformation or transformational deal of some kind not the case but certainly an important succession for twitter. >> looks like we'll be hearing from parag agrawal joining a previously announced fireside chat with ned segal, the cfo.
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keep an eye on that date as it mate be the first meaningful comments from the new ceo of twitter as well. >> yeah. so dorsey out, agrawal in. brett taylor chairman of the board replacing patrick pichette and dorsey will be leaving the board after his term expires next year at the 2022 meeting of stock holders. twitter still halted but we will wait to see how it opens take a break now i think. does that sound fair yeah let's do that. let's take a break and joint by ayitus awe denny'ss ll st wh .
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what's strong with me? i know when i'm ready for a rest day. i can be ready for anything... tomorrow. find out what's strong with you with fitbit sense and daily readiness. we're waiting for shares twitter to reopen. we got the news. ceo jack dorsey is out and parag agrawal is the new ceo of the
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company. still waiting, though, for a first trade. carl >> in the meantime restaurant stocks are taking a hit in the midst of the covid variant joining us, the president and ceo of denny's, john miller is with us. welcome back great to see you again. >> thank you great to be here appreciate you having me on. >> it's amazing how quickly the conversation changes already we got the new york city health commissioner advising us to all wear masks in grocery stores and offices and lobbies do you expect this to have an impact on consumer mentality when they go to restaurants? >> it's interesting because all of this momentum coming into the holidays, you have got black friday, cyber monday and everybody is excited and ready to go, and then this news comes along and the world health organization is saying this is more virulent, more contagious and more skilled, if the virus can be skilled at evading public health measures, so it does have people talking about it quite a bit.
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i believe the momentum for growing confidence to dine out will continue in the holidays. it's not in the u.s. yet it will be naive to think it's not going to arrive eventually, but it's not here yet. momentum continues for the near term we've become so good at protocols, prioritizing safety, deep cleaning, sanitization, high touch areas, whether flying on the airplane or otherwise, and so as long as those protocols are in place it should be better this time around than what we've experienced over the last couple years where frankly the whole world was not quite as prepared as we are today we do follow these mandates. most, you know, businesses are being very serious about this. mask, temperature monitoring, vaccine validation are all in place and they will play a big role. >> sort of as you make a great point, we've gotten better at this as we've gone from wave to wave to wave how do you avoid see-sawing
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between let's go back to delivery or mobile ordering versus in person and in store dining how do you avoid being caught between that back and forth? >> well, in the restaurant business, because the customer base is so dynamic, what they're coming for, whether convenience meet and gather with friends or whatever those things might be, we're constantly adjusting for realtime and so i wouldn't call this -- we have inside dining efforts always afoot, curb side delivery that's growing and getting good at it. delivery through third party and deliveren on demand platforms. those are in place and getting better by the day with improved technology i would say we'll be good at all channels regardless of the circumstances. >> john, it's morgan i mean, we've been having the conversation for months about staffing challenges and a tight labor market right now how are you bringing workers
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into your stores what is the uncertainty around rising covid cases and a new variant due to that dynamic? >> right there's no question that part of the work force has been reluctant based on concern of front line workers and being exposed. that seems to be abating more and more with every passing month. we announced the effort to help our franchise system by hiring 20,000 employees we made great progress we put this -- a number of different platforms in place to make that easier and we're seeing improvements coming slowly but surely with every passing day. we also see people, you know, basically ready to go back to work and still some part of the work force reluctant. so what role the variant will have is yet to be seen, but again i think as people come into the holidays and want to be able to provide for their families and surprise people with gifts and normal holiday traditions prevail, i think we're headed toward a stronger and stronger employment
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environment than we've had over the summer retention efforts really help a lot, morgan. i think the work force is looking for something different than pre-pandemic. i think that's something employers should focus on. >> yeah. that's exactly where i was going to go with you we had ray washburn on the show last week and also a restaurant tour and he talked about the fact that they've been raising pay for some of their workers from $13 an hour up to $20 an hour what is it taking for the company and for your franchisees to actually be able to serve all the customers that right now are coming into your restaurants >> well, certainly does not start or end with wages. that will vary by market but wage has been a big part of this, getting the wages to a place where people say it's worth it for me. and i deserve, you know, a better starting pay. and certainly denny's has been on the forefront of leading that charge to make sure we had fair wages in all the markets across the country. also people are looking for flexibility. they want more respect in the
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work force, how intentional our leaders are and on boarding people properly, giving them proper training, giving them career opportunities and leading toward these best practices that make a company score higher among their peers in one of the best places to work. denny's was acknowledged as this past year as one of the top restaurant chains in the universe as one of the best places to work in america and we're very proud of that distinction. and we think because we have a very respectful work environment, played a role in our staffing and improving on these conditions for entry-level workers. >> john, appreciate your time. obviously given everything that we don't know, but it's good to see you again. thanks so much. >> great to see you. thanks for having me on. take a look at shares of twitter again. again, we're waiting for the stock to reopen, but we are -- do have a memo that former ceo jack dorsey just sent to his staff. he says that after almost 16
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years of having a role at the company, whether it's co-founder to ceo to chair to exec chair to interim ceo to ceo, he decided it is finally time to leave. and then he goes on to explain why. one of the keys here is that -- the first reason is that the new ceo becoming the ceo, he says the board ran a vigorous process, considered all options and unanimously appointed him. this is mr. dorsy again writing. he's been my choice for some time given how deeply he understands the company and its needs and been behind every critical decision that helped turn this company around somebody he learned from daily he says his trust in him as ceo is bone deep he also goes on to say that he's very happy that brit taylor is taking over as board chair notes that he asked brit to join the company when he became ceo again that is mr. dorsey and says he's been excellent in every way. finally, goes on to answer the question, morgan, as to why am i
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not staying on the board at least in some way or becoming chair because he will step down next year when his term expires from the board he says i believe it's really important to give parog the space he needs to lead and back to my previous point, i believe it's critical a company can stand on its own free of its founders' influence or direction. he says it was his decision and he owns it >> all right we'll see how the stock reacts when it is no longer halted, but certainly starting to flesh out the bigger, broader story and how the succession has taken plan. now it's time to get to dom chu with a sector short. >> morgan, we're watching markets setting the week mostly positive in terms of its positioning after friday's big selloff with energy among the sectors seeing that kind of turn around trade you can see the sector is up half of 1% names like pioneer and hall burton among those stocks leading the sector to the upside the move comes as oil recoops some of those friday losses.
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those big ones after a -- or ahead of a key meeting between opec and its partner countries traders will be watching to see whether the cartel continues its plan production increase or decides to maybe scale it back given the uncertainties around the omicron covid variant. so keep it right here. watch oil prices and the sector. there's more "squawk on the street" coming up right after this keep it here ♪ i'm searching for info on options trading, and look, it feels like i'm just wasting time. that's why td ameritrade designed a first-of-its-kind, personalized education center. oh. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now you're binge learning. see how you can become a smarter investor
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♪ all right. welcome back it's been an eventful morning for shares of twitter. of course, it was 9:15 when we reported that ceo jack dorsey was expected to step down. we have gotten the news since then stock has now reopened you can see let's call it up 4.5, 5% at this point. parog is taking over immediately as the company's ceo it has been the chief technical officer for quite some time. in a memo, mr. dorsey says my trust in him is bone deep and has my full confidence >> look at that, stock is moving higher not as high as when you first reported on this, but it does speak to the fact that at least
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investors after years of some consternation are reacting really well, at least initially to this immediate succession plan but, yeah, it's one of the few names i think within communication services that's higher right now. >> should point out shares of square, which mr. dorsey is still ceo are flat. that will do it for us on "squawk on the street. "techcheck" starts now ♪ ♪ good monday morning. welcome to "techcheck. i'm carl quintanilla with deirdre bosa and jon fortt today, jack steps back shares of twitter surge as jack dorsey steps down from his ceo role we'll talk about what it means for that company and the broader message in tech. then stocks rebounding a bit this morning after that omicron selloff friday the latest on thri


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