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tv   The Exchange  CNBC  January 5, 2022 1:00pm-2:00pm EST

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gaming, ces. look, if you think they're going to turn, nvidia is going to turn big. >> good stuff. steph quick, then joe and john >> cigna, a laggard in the hmo space. >> intel, small position, tight stop >> star wood, stwd, 7% dividend yield. >> good stuff. thanks for watching. the stock summit continues tomorrow "the exchange" begins right now. ♪ yes, it does thank you, scott hi, everyone i'm kelly evans. ahead today, the great dispersion continues into the third trading session of the year high p/e stocks suffering. low p/e stocks, outperforming. value over growth. materials over tech. should you chase these moves or fade them? we will discuss. the last remaining blackberry phone stopped working yesterday, but the company moved on long ago. it is now focused on software for cybersecurity and for evs. we will talk to the ceo about
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the company's next chapters. and the afternoon action, we have the story and the trades on intel, at&t and beyond meat. but first, way over there to dom chu with the market numbers. >> i can see you way over there. i can see jim cramer way over there. i can see scott wapner waving to me over there, but, yes, we are socially distanced in the new wave of omicron at cnbc global headquarters with the markets overall we are seeing a bit more of mixed action here. we have the march towards record highs taking a bit of a pause but the nasdaq underperforming down 1.5% for the composite. 4776, that's about 16 handles lower. one-third of a percent decline for the s&p 500. meanwhile, the dow continues the outperformance it has had, up about 95 points, 36,892, up one quarter of 1%. if you look at the picture overall, look at interest rates. the ten-year treasury note yield currently ticking a hair higher, 1.68%. the reason it is important, you can see on the right-hand side
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of the screen this is the upper end of a trading range we have seen over the course of the last three to four months about 169, 170 has been the high end of that range. so as you are starting to see some of that interest rate move top-out, maybe at necessary levels, we are keeping a close eye on financials, especially because of the fed minutes coming out speaking of financials, check out what is happening with some of the big bank names out there. they've had a big run as of late but a bit of a pause for jpmorgan today, flat on the session. bank of america, flat as women citigroup has been an under performer over the last few months, up one-quarter of 1% but the regional banks have seen outperformance in recent weeks watch those regional banks i will tend things, kelly, back over to you way over there >> thank you, dom, very much if you are pondering like many how much longer the rotation into value and out of growth can last, my next guest says high-quality stocks are still trading at the largest discount to low-quality ones in more than a decade joining me is mike list, senior
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portfolio manager at america century investments. mike, is this still true after the last three days? >> yes, kelly. i think it really is still true. look, if you look at the context of the current environment where you have had tech stocks outperform tremendously and the valuations become very elevated, it has been aided by a very loose monetary policy which has allowed a lot of speculation now you have rates starting to move back up, which means the tech earnings should start to be discounted at high levels and start to underperform. in the meantime you have had areas like health care and consumer staples really be ignored over the last couple of years. all the while they've grown their earnings and their valuations have improved more and more so they're looking like much more attractive areas to us. >> so health care and consumer staples, which are not necessarily the names that are screening strong right now the first couple of days of the year it has been all about financials and energy. today the materials are the leading sector why do health care and consumer
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staples look interesting to you? is this kind of a defensive position against market underperformance or do you think they could turn in double-digit strong performance this year >> it is not -- kelly, it is not really defensive there's a lot of high-quality companies in those sectors those two sectors have really lagged look, we are seeing our spots in energy and banks as well they're looking on a relative basis more attractive as well. but health care and consumer staples specifically, they look good because there's some really good high-quality companies here that have lagged >> let's give some examples. you like zimmer biomed you like heartland, express. that's -- yeah, the trucking company. you also like general motors, so you have names in the traditional industrial space what along with zimmer would be names you like in health care and consumer staples >> zimmer is certainly one we like the pharma sector has underperformed so companies like merck and bristol meyers, for
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example. zimmer, they make artificial hips and knees, and there's steady demand, stable demand for their products they've been out of favor for what we believe are transitory reasons, and that's mostly related to covid-19, elective procedures have been under pressure at hospitals. we think that as the current wave of covid-19 starts to ebb, we think that procedures will pick back up again here is a company that has high returns on capital they can move up even more because they've had some elevated spending, especially on a recent products like -- that product cycle is going to start to pay up for them and they're going to start to grab a little bit of share back. >> yeah. >> so we have a company with a strong balance sheet and a modest valuation we think it is a good risk/reward here >> a final question on general motors we are speaking with mara barra next hour and the stock is up 60% over the past year what upside do you see >> so we're not going to give a specific price target, but we do
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see quite a bit of upside here and the company has done a really good job of moving out of unprofitable geographies and vehicle segments into higher margin areas like suvs and pickup trucks. the company is really using that strong free cash flow from the legacy internal combustion engine business to fund their transition to electric vehicles and autonomous vehicles. what we really think they're leaders in aweutonomous vehicles with their majority owned cruz business they are making a good transition we like that plan, strong balance sheet, and still a very cheap stock. we think it is a good risk/reward here >> there you go, everybody, if you are looking at new names to look at for 2022 mike liss, thank you for joining me, with american century investments. >> thank you good to be here. let's get to capitol hill where lawmakers are discussing
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another round of help for businesses ylan muiie is here. >> reporter: kelly, i can confirm reporting from "the washington post" there are early discussions between republicans and democrats about ways to provide more aid for businesses hit by omicron according to a source, democratic senator ben carden, the chairman of the small business committee, and republican roger wicker, ranking member of the commerce committee, have been in talks about a package based on their bills to provide another $50 billion for restaurants. the "post" reported the total price tag could be about $68 billion. meanwhile, there's an ongoing push from the house from about 60 lawmakers from both sides of the aisle to help not just restaurants but also gyms and hotels as well minnesota democratic representative dean phillips is spearheading that effort, and in a letter to leadership he rote tens of thousands of small businesses across the country are faced with the possibility of lay-offs, reduced service or hours or outright closure, barring additional federal relief but already key republicans are
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throwing cold water on this idea gop senator john barra sent us this statement we need to fully open our economy instead of passing the buck and calling for more taxpayer bailouts. some lawmakers originally hoped they could attach this aid to the bigger social spending package, kelly, but now that is going nowhere so they're looking for other ways to keep this alive. back to you. >> which is interesting because, number one, i don't know if restaurants got the direct aid they've been pushing for number two, this is more of a casualty of the build back better plan dying than it is the spread of omicron. number three, is any other industry currently being targeted for relief at this point? >> these the only ones we've heard of so far, kelly the idea around this package, if it were to come to fruition, was that it would have to be pretty narrow in order to get both democrats and republicans on board. you heard the argument from a member of gop leadership saying, you know, this could contribute to increased inflation
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so i think that they have to keep it pretty targeted and not include some of the other measures like the child tax credit or stimulus checks that have been the hallmark of previous covid relief packages >> have restaurants or gyms received direct relief up until this point of the pandemic >> the best that i understand, kelly, is that some of them have, but not all of them either qualify. some of the money dried up very quickly, especially for the restaurants, i believe, and for some of the live entertainment venues so the funding maybe didn't quite trickle down to all of the folks who needed it, and so there's been this effort to re-up some of the programs certainly some of the funding could be unused covid relief money that was dedicated to other sectors that they might be able to repurpose. some of it might be new funding all together >> interesting just as kate rogers was reporting about some of the problems with the aid for live events as well ylan, thank you very much. keep us posted watching the state of play on capitol hill today coming up, from smartphones to smart cars, blackberry is
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bidding an official farewell to its classic phone and setting its sights on evs and cyber. blackberry ceo john chen joins us live after this bullish on pfizer but bearish on moderna one declaring pfizer the clear winner in the covid race, upgrading the stock to a buy and seeing it rally more than 25% from here. he joins us to explain why moderna isn't as well positioned salesforce and microsoft are the biggest laggards in the dow as tech continues to trade heavy. we are back in a moment. this is "the exchange" on cnbc 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!
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or visit an xfinity store to learn how our switch squad makes it easy to switch and save hundreds. well come back to "the exchange". one day after ending service to its iconic phone, blackberry making splashie announcements at ces completely unrelated to phones they're unveiling a slew of technologies like digital fingerprinting for cars. i'm pleased to be joined by ceo of blackberry, john chen >> thank you for having me >> tell me about the digital fingerprinting >> it is actually part of the whole -- in vehicle data platform, we want to turn the car into a wallet or an extension of your wallet. we want to make sure all of the
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intelligence data being accumulated, shared with a smart city environment, pushing everything from the edge computing to the cloud kpcomputn and so forth it is a really small -- one of the pieces of a very big picture. >> what do i think investors are missing about this picture with the shares under $10, and i think their meme high about a year around was around $25 >> well, i mean, obviously we -- in running our company we obviously feel we are under valued there's a lot of potential in our stock. we need to show some of the revenue growth, but what we're positioning ourselves, especially with the cybersecurity as well as the auto industry, with better software, with intelligent software, i think we are in the right place, in the right market, and hoping this is a long-term rewarding stock to shareholders >> do you think there would be a benefit from splitting out the cybersecurity business with the car business
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>> well, maybe in early conversation, but this is still too early for it i think i split the two organization to generate a couple of things, focus, transparency in the execution and the results. so as soon as both of them were able to demonstrate that growth, that consistent growth and the market share winning and the execution, i think it is too early to tell. however, there's one other aspect to it it may be that the market demanded for it to more come together, especially when it comes to smart city, you know, how a car and cybersecurity protection in a car is all part and parcel of the same architecture, so to speak. so we'll see we will see how the world evolves. >> if the world goes your way this year, should we expect a lot of announcements from big automakers about partnering or using blackberry technology? >> they already do they already do. i have 45oems as our customers,
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o e oem meaning people like gm and ford around the world. we have 24, 25 electric vehicle platforms out there that is using our software already today. we have over 195 million cars as of june of last year using our software, running around, you know, on the roads around the world today. so we are already quite big in the footprint. >> and you do have a new investor base who is excited about the potential here let's talk about some of the old blackberry users have you gotten any feedback over the past 24 hours since you pulled the plug? >> yeah. well, first of all, pull the plug sounds so final we made a decision on 2016 to pivot away from the hardware, but preserve the software technology and the security. so we feel like we have, you know, five years was a very long time for our loyal customers to be able to move to a different
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platform, a hardware platform. many of them still use our software platform in managing the devices and managing the applications but one thing i normally don't use social media, networking, but last night i have to -- because there were so many well wishers and great memories people send me literally, i can't keep up with it i felt quite moved and, you know, very appreciative of that. so i sent a little tweet last night. i haven't really seen the results, because i know once i engage in it i won't ever stop >> well, if you are -- if the twitter army that is now part of your retail base realizes that, it will be lighting up your twitter feed for sure. how many phones do you think were affected yesterday? how many were still active >> a little over 300,000 >> wow do you have any regrets about the move, especially after seeing those tributes pour in? >> well, it is always regretful.
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i mean it is -- you know, every one of us uses us, every one of us love it we have great memory, great pride. but you never -- you know, we are on to bigger and better things so, you know, we think protecting all of the end points in the world, not only the phones, collecting, you know, analytics for all of the phones in the world and all of the devices and iot devices including cars are a much bigger market, and it will be better for the company on the long term >> very well said. still, a tough day for those 300,000 users. >> i know, i know. >> john, thanks very much for your time today. >> thank you >> john chen is the executive chairman and ceo of blackberry coming up, this energy stock is up 34% in just the past month. can its run continue we'll talk to the ceo about what he sees in store for 2022. plus, mortgage rates just hit a nine-month high and loan demand keeps dropping.
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♪ welcome back, everybody. let's get a quick check on markets. the dow is positive by 65 points again, we are continuing the trend of the last three days s&p, negative by 17. tech weighing on that. real estate down today as well nasdaq down 216 for another day of big declines. to illustrate this we are seeing all-time highs for the s&p dividend etf, the s&p value etf and the russell 1000etf. all of the emblematic tickers of the day gains to 1.5%. on the flip side, salesforce ended lower after ubs downgraded
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them, warning business software spending was pulled forward in the pandemic both stocks on modest gains last year about 14%, already their worst year since 2016. stocks down 5% for adobe today and 6.5% for salesforce, worst on the dow right now you can head over to cnbc.com/pro for more. estee lauder getting a downgrade to hold at bank of america citing valuation concerns, down 3.5% jim cramer writing in his newsletter he agrees with the call but would look to get back in at 340. for more of his insights scan the qr code on the screen or go to cnbc.com/investment club. now to rahel solomon here is what is happening at this hour. the committee holding the hearing on the january 6th riot on capitol hill. captain explained how he has
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improved the police force and said staffing is down by almost 450 officers on the news tonight, lessons learned and changes made since an angry crowd stormed congress. tonight at 7:00 eastern. the white house supply chain czar says the holiday shipping season was a success despite significant challenges however, officials are watching the impact of rising omicron cases. the administration is seeking to prioritize the transportation of medical supply equipment the governor of louisiana has given a posthumous pardonner to homer plussy. his refusing to leave a train car in 1892. the governor held a ceremony near the spot where he was arrested you're up to date. back to you. >> thank you still ahead, intel goes from chaos to coherent. trump tower wants investors the buy into its vision. beyond meat is putting muscle into fake chicken. your afternoon action is next.
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♪ welcome back it is time for a read on the afternoon action we have the story and the trades on some big movers and shakers in the market right now, and we'll begin with intel, jumping today on an upgrade to outperform at northland capital. the shares are up still almost 3% the firm saying intel has gone from chaos to a cohieerent strategy they're noting it is a bargain compared to other high-multiple names, and the shares only gained 3% last year. here with more of the story is john ford and danielle shay is here with our trade today. she is vice president of options at simple trading. welcome to you both. john, we have at least one believe. >> i guess we will hear -- oh, you mean the person that wrote this note. >> yeah. >> kind of, kind of. what fascinates me about this note is it is to out perform but he doesn't really fully believed
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that the intel ceo can pull off the strategy as viewers know, two months ago i went out to california, sat down with pat for half an hour or longer, really drilling down on the strategy. in this note he is saying, i don't think foundry is going to work, i think intel is pretty far behind product wise amd. pat gelsinger telling a different story how quickly he thinks intel can close the performance gap. he has products out this year at cse he would argue are on par with amd we will see how the benchmarks around power and power consumption play out also they have graphics chip they're launching, brand new business, plus the foundry stuff this analyst is skeptical of, gelsinger tells me is happening on schedule. so it will be really interesting in that. it is like betting against "the fellowship of the ring." at some point maybe we get to two towers, return of the king, and you have to shift the odds, even though it makes sense to
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bet on soren >> that's what i was going to ask, danielle. as the stock has done so poorly, is it starting to get interesting to you >> you know, i think it is interesting here outperform is a bit of a stretch, but looking at the charts we're starting to see upwards price action they've beat earnings the last eight quarterness a row and they historically trade higher in that time frame preearnings. however, i would argue a lot of that move has already been had they historically trade higher by about 10% and in 21 bar time pre-earnings, we have seen that move and we are trading into resistance i can't say i would love to buy intel here, however, if intel could break up above the 56 price point, hold up above there and we could potentially see some follow-through up into about, you know, 60, 65, i think there's a trade here, but i don't think it is the best semiconductor stock on the planet right now >> john, is there anything else the ceo might have up his sleeve
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or are all of the cards on the table now? >> he laid pretty much everything out, which is unusual. oftentimes they're going to hold something back he laid out the entire, implausible some would argue, turn-around strategy and how he plans to do it now it is a matter of the benchmarks can they actually execute? this is reminiscent of five, five-and-a-half years ago when investors were betting against qualcomm qualcomm managed to pull that out and it went from around 50 up to, what, it is 180 now we will see if intel can pull off a similar trade. >> very well said. as we -- before we leave the topic, danielle, the rest of the chip space, how do you feel about it right now smh was still up around 314 yesterday. >> you know, i love the chip space. the chip space is always going to be one of my favorite areas to trade, especially because of the outperformance i typically stick with amd and nvidia now that being said, because they did have such a strong year last year, i highly doubt they're going to match the
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performance that we saw. but i still think continuing to average in to both stocks, especially on pull backs like we are seeing right now, i really like to buy at key areas on the daily chart. if we can get down to the 50 simple or the 200 simple on the daily charts in those names, those are typically places where i'm always adding in >> all right i am watching the etf which is down around 310, about a 1% dip today. those stocks also in the red we will move along thank you very much, jon fortt today. we will talk at&t, which is also on the rise after saying it added 1.3 million phone subscribers in the fourth quarter, nearly 400,000 more than expected. shares did drop 14% last year, amid what the "wall street journal" calls a gut remodel to its strategy it is spinning off its tv and media business into the joint venture with discovery in order to focus on its core wireless and broadband segments julia boorstin here with the story. julia, i thought on the broadband side it was maybe less good news. >> yeah, the broadband numbers
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were both slightly lower than expected and also the fourth quarter was slightly lower than the third quarter, but i think that the reason the stock is up today and you now see it up 4%, kelly, really comes down to the growth of those wireless numbers. not only were they more than 300,000 better than expected for those wireless additions, but also if you look at the full year, this was the best year for at&t in terms of those post-paid additions in about a decade. we are talking about a meaningful year if you look at all of 2021. also, i would just point out, kelly, the company reported better-than-expected growth in its hbo subscriber numbers than anticipated, above the range they had given analysts. that is key because even though they're going to be completing the spin-off of warner media, at&t is still going to be owning 71% of that company. so there is exposure there, and the better hbo and hbo max do the better that is for that parent company of at&t >> how much of a headwind, julia, is this 5g delay?
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two weeks now as we understand, but it sounds like a lot of the disagreements here haven't been resolved >> well, kelly, i don't have a crystal ball to tell you what is going to happen in two weeks, but i do believe they are planning to roll this out in two weeks, and at&t and verizon, together they control over 50% of the mobile phone subscribers in the u.s so this is a really big deal for them to get 5g out there, and they do seem to be on track to have it all happen in two weeks. so it has been a headache. they've been working on 5g for a long time now, but it seems to be moving forward. >> danielle, what would you do with the stock >> you know, i just -- i don't like the stock here for a buy. i just think that there's way too much overhead resistance if you look at the charts, i mean they've really been in a down trend for the past several years, despite what they've been doing with the business. you have to have quite a bit of investors in there that want to get out of this stock on any kind of rally, especially because they've cut the dividends. so for me when i look at this stock, i see all of the overhead
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resistance around the $30 price mount. while i do believe it could rally another few dollars into that area, i would sell it at that level because i just think at this point the stock is dead money. >> what about verizon and what about t-mobile >> i do like the relative strength with verizon and t-mobile, but, honestly, when you are looking at the communication stock, i would much prefer to stick with something like facebook or netflix. i just think that with social media, with the creator economy, yes, of course, we do have 5g coming out, but i would prefer to either stick with t-mobile, verizon, facebook or netflix anything in the social media space rather than something like at&t i just think that over the course of the past several years it just has not made any progress and it just doesn't really make sense to have dead money in that stock. >> tough talk from shay. you're going to maybe light a fire under them. jul
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julia, we will leave it there. take a look at beyond meat, getting a nice boost actually it is down 1% kfc is getting a boost yum is up a quarter of a%. anyway, this is after years of successful tests between the two brands beyond share spiked in early trading before falling back as you see now, and it is coming off a year where it dropped about 50%. kate rogers has all of the details. it sound like we can get this fried chicken on monday, kate. >> yes so this will be next week, kelly, on monday, and about 4,000kfc locations across the united states. as you mentioned, the two have worked together for a few years with several successful partnerships one sold out about in five ours in an atlanta store a few byear back this is a kfc specific recipe and i spoke to spokesperson for beyond meat and kfc yesterday, and they're confident about two things supply, number one and, number two, the beyond meat
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fried chicken has more of a muscle experience when you bite into it than a chicken nugget, so were able to mimic that and get the texture right. they said it is the great time to do it because people are making resolutions, switch over to plant-based and all of those things on the horizon. this could be a big year with beyond meat. it has a partnership with yum to do meat alternatives with kfc, taco bell. it has an upcoming partnership with pepsi this year a lot to prove and a lot on the line >> i'm almost afraid to ask, danielle what would you do with beyond meat >> so looking at beyond meat, beyond meat has been in a down trend for quite a while, right i mean i think that the partnership with kfc is a great -- it is great for beyond meat, but i just can't get my head wrapped around the fact people who are going to kfc want to actually have a meat alternative. so to me it seems to me that
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this isn't going to have a huge impact on beyond meat stock. when you are looking at beyond meat, because of the down trend that it is in, i think that we could reasonably see an oversold bounce i think it would make sense for it to trade higher into, you know, $75, $80 for me the primary thing i do with this stock is i look for any kind of catalyst for a potential short squeeze. because there's so much high short interest in this stock, right around 37%, for me i just keep it on my radar. if there is a positive news event and it does gap up, it can make for a really good momentum trade. but as you can see today, we're not seeing that kind of price action with the news >> yeah. >> so for that reason, i just have to leave it alone >> it is trading down near 60. danielle, on that note i actually want to ask you, we are about 20 minutes away from the med minutes. in some ways beyond meat and other stocks like that have had a hard year and people are wondering, you know, what happens next, do high interest
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rates make it worse or are we starting to find names in the wreckage so to speak do you have a macro comment on the first couple of trading days of the year where we're seeing an even bigger divergence? >> yes, i think we are seeing a huge divergence right now because i think that investors are concerned with what is going to happen with the fed i mean right now we don't know what the market reaction is going to be. i think in some respects it has been priced in we are expecting rising interest rates, and yesterday especially we saw the ten-year rising substantially and tech stocks getting hit. so i do think that there's going to be more volatility with the fed. i do think that the market is going to react, probably in a negative way initially, but what i also think is going to happen is that we have an earnings season coming up here very soon. what i am looking forward to is i want to see stocks like microsoft, apple, google, facebook, netflix, come out and say, hey, guess what we're doing great, we are growing. i think that that should put a little bit of a damper on the inflationary fears and the fed
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fears in the market right now. >> all right there's the playbook danielle, thank you so much for your time today. danielle share kate rogers reporting on beyond meat as always, a big thank you up next, 25% that's how much shares of liberty oil field services have climbed in just the first three trading days of this year. we're going to dig into these outsized moves and look at how much gas is left in the tank with the ceo right after this. your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire - super excited to open up my diploma matchinfrom southern newption. hampshire university.
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and a “did you see my email?” text. orrrr... you could see her status in slack. and give lisa a break while you find someone online who can help. slack. where the future works. ♪ welcome back to "the exchange". oil rallying to start the year, adding to 2021's monster gains. crude is up more than 18% in the last month alone and closing in on the $80 a barrel. liberty oil services is up 30% in a month chris wright is the ceo of liberty oil field services and he joins me fresh off his virtual session at the goldman energy conference.
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what is that behind you, chris welcome. >> yeah, they've made the conference virtual so i'm up in montana at a ski house >> wow >> a different setting than i'm usually. >> it is very nice what do you tell attendees you know, i think the stock story is kind of speaking for itself right now >> i mean this sector obviously was hit hard by covid, and then the returns for our customers responded quickly. oil and gas prices came up, but the returns in profitability in the service sector, it is only more recently risen. so i think it is exciting times now. we are starting to get pricing, and i think we will see a pretty good year ahead for the oil field service sector, and likely several good years ahead >> what is the sweet spot for you for the price of crude oil >> you know, probably around where it is now. you know, right now you have very strong dwririlling economi for all of our customers but it is not a meaningful economic headwind for the population of the world, and certainly in the united states. >> so the reason i ask is
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because i have seen comments from diamondback and others. they're concerned if energy spikes to 90, definitely over $100 a barrel you start to get demand destruction, you start to invite a political response. do you think we can rule out a spike like that now or could it still happen >> oh, it could certainly still happen i certainly agree with travis's comments from diamondback that too-high oil prices aren't good for anyone most importantly, they aren't good for the citizens of the world. we are seeing in europe right now with misinvestment in energy and a poor evolution of their energy system, natural gas prices in europe on an oil equivalent basis are over $200 this is disastrous factories are being shut in. people can't afford to heat their homes. no one wants that. no one wants that. >> yeah, no, we've certainly gotten more use, unfortunately, to power interruptions and sort of the need for reliable energy. but obviously people still want renewables it is ever more important. what is the esg trend having on
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your company in term of an impact either on the stock price or in the choices you are making about where to invest? >> you know, certainly with our customers, the oil and gas producers, a huge interest of theirs is to lower their emissions. liberty has been a leader in that from the start. very early on we were building dual fuel fleets that could burn diesel or natural gas. now we have better technologies of dual fuel fleet we have an electric fleet we are rolling out this year. it is not only electric but has the perfect way to take natural gas to make electricity at the highest possible thermal efficiency so very low emissions. i would say the industry wide interest in that is tremendous >> your shares are trading around the $12 mark right now, about midway between the 52-week range. latest data,six analysts have buy, 11 have a hold. what would you tell those who are still on the sidelines about what you think the stock could do and where it should be valued >> i am not going to comment on the stock price, but i will say
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our business is rapidly improving right now. we should have a good year this year and probably some tremendous years coming up mainly because of our technical advantages versus our competitors. our partnerships with our customers. it is sort of a global misunderstanding that somehow oil and gas are going away and they're only going to be around for five or ten or twenty years. that's simply not true so i think what we're seeing is a world with underinvestment in oil and gas. again, we are seeing that in europe right now but in the next few years we are going to see an increased appreciation and an increased need for investment in growing oil and gas production we still have a third of humanity cooking their daily meals, burning wood, dung or agricultural waste they need oil and gas to live better, cleaner, longer, healthier lives. >> all right we will leave it there, chris. thanks for your time today >> thanks, kelly happy new year >> chris wright is ceo of liberty oil field services
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what a run that stock has had. the biden administration increasing its order of pfizer's covid therapeutic, but it is not the only reason to be bullish on pfizer this year according to one analyst. we will dig into that next remember, you can catch this show any time, anywhere by listening to the "the exchange" podcast. you want to hear from an ceo on how to lower bills we've got you covered. you can find it wherever y gouet your podcasts. just look for cnbc "the exchange." no one knows better than we do. but without gravity, you can't have lift. the very thing that holds you down is the very thing that helps you rise above. thanks to gravity, the real force to be reckoned with just might be you. ♪♪
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♪ welcome back up 63%, that's the spike we've seen in the seven-day daily average of covid hospitalizations over the past week according to the cdc. meg tirrell is here with the latest on covid, on the omicron variant and the guidance on what to do about everything meg. >> reporter: hey, kelly. while these numbers are ricing incredibly quickly, case numbers now averaging more than 500,000 per day on the seven-day average. as you said, hospitalizations are now showing that upward spike as well, growing pretty quickly and approaching the 100,000 people currently in the hospital with covid, although anecdotally we are hearing generally the cases in the
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hospital are less severe deaths have not increased. we are seeing around 1,300 per day, and there's a hope, of course, that will remain the same dr. anthony fauci addressed this question today in the white house covid briefing, and in particular spoke about what we've been seeing in children. here is what he hadto seeing inn here's what he had to say. >> in general, omicron appears to be a less severe disease across the board but the sheer volume of infections because of its profound transmissibility mean that many more children will get infected and as many more children will get infected, a certain proportion of them, usually children that have underlying comorbidities, are going to winds up in the hospital that is just an inevitability. >> and that is something we have been seeing. dr. fauci emphasizing vaccines are available for kids down to age 5. of course the cdc right now is meeting with its advisory committee to discuss boosters
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for the pfizer vaccine for kids ages 5 to 15 the concern is the issue of mi crow cardites, seen after the second dose of an mrna data out of israel shows after a third dose it appears to be a very rare occurrence >> thank you very much meg. the biden administration is doubling its order of pfizer's covid drug although it won't be available in bulk to june. bank of america hiking pfizer's price target to $70. it is not just covid-related tharps they are bullish on jeff meacham is senior analyst at bank of america welcome. >> thanks for having me. happy new year. >> to you as well. what do you think is still to come for pfizer when it feels like so much should be in their
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recent past? >> good question i think the oral covid pill is going to have a robust launch provided they can scale it up. there is a lot of other goings on in pfizer's pipeline. we evaluated their cash flow they can generate more than $100 billion in cash in the next four years. m & a could be a big part of the story this year and next >> could you describe a little bit what we see maybe anticipate on that front? >> you know, what they have said is they want to go after companies in similar therapeutic areas. so probably not going to buy technologies or things like that so i would say larger scale deals that -- you know, not mega pharma deals but let's call it ms.-sized biotechs that could solve the l.o.e. problem that they have starting in 2025, 2026. >> what's loe? >> patent expirations. >> got it. why thung they are more well positioned as moderna?
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you have moderna as an underperform why? >> we are not negative on moderna from a technology perspective. we think they have invested properly in the business it's just the assumptions that one needs for boosters to get to consensus forecasts. we are talking $5 billion, $8 billion $10 billion in 2023 and beyond i think that is less likely. most folks wouldn't want to get boosted and quarantined and tin this cycle for the foreseeable future at least you can say, well, pfizer has a pill which i think practically and conveniencewise will be more exciting to folks in the covid portland versus this perpetual cycle of boosters. >> what would change your mind about moderna? >> you know a lot of investors believe the flu and snv and other things they have in the 350i7line are going to be super fast and developed as fast as
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spike vax or covid therapy the reality is it is going to take a few more years. but if they can show progress in non-covid line assets and get it on the market and to a derisking point faster then i would change my outlook. >> turning back to pfizer, your price target is $70. don't anti-virals eat away at their vaccine market share how much does covid, if you can break it down this way, factor into your price target covid is a big part of the cash flow in the next four years or so it's more than half that we assume but i would say in general, though, we don't even for visor have boosters have long lasting p & l impact really, it is the oral that could. i think in three to five years it is probably best to stockpile
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the oral in the case of having outbreaks in certain neighborhoods or cities or even countries versus trying to reracks nate and reboost, to do that cycle every single year to us, the oral has a lot more durability whereas we are less 079 mystics that the vaccine boosters are going to be burible. >> let me emphasize there is a lot of people thinking the boosters are about pharmaceutical companies wanting profits. and you think their anti-viral pill treatment is going to be more lucrative than broosers >> i think so. the margins on the oral are much higher than the booster given their shared economics with biontech from a stock buying perspective, to me it makes more sense for the oral because it reduces the risk of hospitalization, severe infections and those are things that can really tax health care systems having that around i think is a
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little bit more rapid to beyond to an outbreak should a new strain emerge. >> jeff, thaenk thank you for your time. >> thank you. >> jeff meacham with bank of america. a ushoing health check is due. we will have it next for you here on "the exchange. you downloaded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪♪
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mortgage rates have jumped to a nine-month high diana olick is here with the impact. >> the surge this week continues after slow rate rise over the last two weeks yesterday, the average rate on the 30-year fixed hit 3.35%. that according to mortgage news daily. that's the highest level since the start of last april. rates are now 58 basis points higher than they were a year ago. higher rates are causing mortgage demand, both refinances and purchase loans, to pull back mortgage applications fell over the last two weeks with refis down 40% from a year ago
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what is most interesting in the rate watch is the home builder stocks lock at what happened two days ago when bond yields and interest rates popped higher the building bond rate dropped it recovered slightly, but affordability is a rising concern with rising rates. sharp swings in rates like we saw monday probably amplified those fears but so far biers seem to be shrugging rates off and focusing on the other positive housing date points we are watching it closely thank you, diana olick that does it for "the exchange," everybody. tyler and "power lunch" pick things up right now? we will see you in just a few minutes. welcome, everybody, to "power lunch. we begin with breaking news on the fed. minutes from the central bank's last meeting, one of the most consequently in years, are being released at this hour. investors will look for details on how policy makers plan to pull back on pandemic er

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