tv Worldwide Exchange CNBC November 19, 2019 5:00am-6:00am EST
it is 5:00 a.m. here in new york the dow trying for its 13th record close for the year. one former trump executive says the president's credibility is on the line. unrest continues in hong kong a stand off now in its third day. a university there is surrounded a boost for boeing and maybe this is why markets keep going up.
goldman sack listed the world's most owned stocks. let's say being original not really a thing on wall street right now. "worldwide exchange" begins right now. good morning and welcome wherever in the world you may be watching here is a shot of capitol hill more on what is expected coming up first a look at the markets an your money here are how things are looking the dow coming off its record close of the year. we could be lucky 13 dow futures are up right now
speaking of the number 23. did you know the average gain of a stock on the s&p 500 this year is indeed 23%? that's right and 63 stocks on the s&p 500 have gained more than 50% this year those are some big numbers in the bond market, no real change around the world, a lot of green on the screen. with the early tradein europe, we are seeing higher markets there as wells all the major markets are up the cac and the dax in germany are each up 10%. the german dax is up 13% in 90 days all the major global markets particularly in europe are doing well that carries over to asia as
well markets rising despite the demonstrator situation getting more dire. that's where we begin right now. as many as 500 protesters are believed to be trapped inside a university this is on top of another major development on the ban on wearing masks in hong kong we are live with more. good to see you. after three days of violent clashes, the siege here appears to be withering. earlier today, we saw several students being led away. the tactics of trying to starve the students from food, water or
medical care or the students taking the olive branch extended by carrie lam saying if you surrender peace fully and leave, we will not address you. what we do know is by extending that olive branch, in that strong rhetoric from days ago warning that hong kong may be a crackdown. that harder line saying hong kong's approach may be soft and may need a tougher approach. coming out of its sixth month may still be over. back to you. >> another facet as well about this ban on hong kong masks.
basically facial recognition technology widely used and there is the use of tear gas and many are wearing masks there has been a mask and now beijing is weighing in on that >> the high courtroomed that the masks be banned because it affects the ability to be tracked by the police. officials there have decided that courts in hong kong do not, are not empowered to rule on the constitution at of that ban. we circle back to the question of who is actually in charge the basic law, the miniconstitution suggests that china is in charge of foreign affairs as well as defense but everything else is sort of up in the air.
we come full circle, who is actually in charge here? >> that is a good question be safe. china's ali baba, boeing and air b&b have news today. first off, boeing. sells of the 737 jet accelerating $6 billion in new orders at the dubai air show one company said it will buy 30 max air jets and boeing signing a separate deal of more than 20 maxes to an undisclosed customer >> a report ali baba will stop taking orders early due to strong investor demand saying the share sale is already well oversubscribed and air b&b -- air bnb preparing
for the public market debut. the company cofounder was on mad money last night >> when we provided housing for the olympics in rio. 85,000 people stayed in air bnb home we have a project now through the olympic games where you can stay with a local when you go to the olympics >> getting to the markets and investments. futures are higher the nasdaq happens to be up 28%. a big part of that move has been big tech a key take away from goldman sach's latest hedge fund the funds committed to big tech. the top five stocks, you guessed
it, microsoft, amazon, facebook, ali baba and google. they've been at the top of the vip basket three and a half years. amazon facebook and google are just 5% of holdings on the long side joining us now, founder and president. i'm not going to ask you to comment on that report other than when i see every single hedge fund is buying the same three, four, five stocks that are the top 30 or 40%, i wonder what happens if and when those stocks begin to get sold >> there is a lot of momentum going into the same names. some of that is justified. we've had a lot of good news,
microsoft winning the cloud contract a lot of momentum in facebook. we've been positive on tech. i think we are seeing the underlying and residual effects of that huge tax bill into the economy. the fed has taken itself out of the game this group of events is driving the stock. >> is there any concern that this overcrowding. that is a word goldman sach used if and when they start to get sold it would make sense that people would finally realize these stocks would be overvalued how could the market stay up if those names get sold maybe they
will >> volatility is inrevitiable. we've seen that more and more in the increase in trading. i think investors are a little more optimistic. valuations matter. when we look at that historically, the next five years have muted returns we are only looking at the positive side of the good news investors that otherwise wouldn't be in investor assets or in stocks in large cap names saying i want to get in here and make money when the market has these sharp pull backs, there is a knee jerk reaction >> how likely do you think that is >> i think if the fed stays on the sidelines and we have stability out of washington and we get a trade deal, that is the problem with stocks.
>> it is not really looking good for the policy out of washington they really don't bode well for the president at impeachment hearings we've heard how far stocks could drop if there is a change in administration i'm not sure the trade deal will be robust at all i think investors are closing the eyes to macrorisks you have company specific issues that could surface i think investors could continue to invest. >> you have a great day, mark. we have a developing story potential troubles mounting for wework and its former ceo. >> new york's attorney general is investigating wework. the company confirming it has been contacted by the ag's office and it is now
cooperating. partly focused on the founder and ceo and adam neumann and if he engaged in self-dealing he also planned to charge wework millions to use the word we which he had trademarked this latest news comes as wework is facing a major restructuring. the company plans to cut 4,000 jo jobs to focus more on its core business this is not the first time they've come under scrutiny. rolling back the policy of requiring the company to sign noncompete agreements as part of the settlement >> when we come back, we are live from a major technology conference in china where you've
got to have an invitation to get in somehow dierdra scored an invite we have a major blow to one company operating in the space that stock down again this morning. the name and what happened coming up coming up. and why former trump aid says the president's credibility is on the line as we roll on after this they changed how the world fights cancer. blocking the pd-l1 protein, lets the immune system attack, attack, attack cancer. pd-l1 transformed, revolutionized, immunotherapy. pd-l1 saved my life. saved my life. saved my life. what we do here at dana-faber, changes lives everywhere. everywhere. everywhere. everywhere. everywhere.
>> welcome back. the east tech west conference is a big deal an invitation only event in china bringing together someof the world's most influential tech leaders we'll go now live to the east tech west conference >> brian, i didn't even have to wake up early for you. i just had to stay up a little later. it is around dinner time trade war topic encompasses those topics 5g and ai. we heard from pimco's managing
director he said we could see a phase one deal by christmas. >> if there are issues remaining about agriculture al purchase targets, forced technology and broader enforcement issues i think the view would be to try to resolve something of course we have american thanksgiving coming up but to try to resolve something by the beginning of december and sign it before christmas. >> brian, we also heard from two of the biggest unicorns in the world, both chinese start ups. we heard from that fintech giant. i asked when they were going to pick up on those plants. he said there wasn't a time table. not a lot holding them back.
ali paids the lead in mobil payments that is being challenged we heard from the ride share start up didi saying data would lead them to profitability of course the public market have not been kind to its peers uber and lyft that company in unicorn company as well. the air bnb china president getting ready for a listing next year others have failed in china. air bnb is committed to the market and making further investments. it will be interesting i know you were running sound earlier. it will be interesting what that ipo says next year about the china business where a lot of companies have burned a lot of money here >> we could go into the china
story. lets talk about something else news you broke overnight despite all the unrest the market being affected according to ali baba with the secondary ipo that is a little surprising >> that's right. it was oversubscribed. demand was strong that ali baba is closing the books half a day earlier. we do get pricing after the market closes. what this really tells us is that this could turn out to be a real vote of confidence in the hong kong market at the time when turmoil is getting a lot of attention. ali baba a well-known market actually listed for years before it was taken off that is happening this week. they are not doing it the typical way. it is only 50 miles away from us
here >> i'm realizing east tech west, if it was like wheel of fortune and a clue name a big conference with invitation only, we'd only need like five letters east tech west i'm just going to keep saying it >> you did it perfectly. >> it is 5:20 in the morning here thank you so much. on deck, just one week into its roll out your disney plus account may have already been hacked and rbc's helima croft just back from the middle east we'll talk coming up
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everywhere. everywhere. everywhere. everywhere. everywhere. >> satellites, movies and clouds in focus today shares down. not a lot but got crushed losing investors 40% of their money after fcc announced it would auction off part of the c-band spectrum other satellite operators provide c-band to up to 120
million u.s. households. next up, amc entertainment shares look to move higher today. the justice department looking to scrap the paramount consent degrees. those were enacted in the 1940s and 50s barring movie studios from owning theaters and other anti-distribution practices. the idea that a movie studio could buy a theater operator is the reason the stock is up finally service now, shares are higher as well providing celgene before the s&p 500. bristol meyers a name you might here later is in the process of finalizing a deal to buy celgene being added to the mosted indexed index. straight ahead, we'll take
you live to see what investors need to know plus with all the big hedge funds owning the same four or five stocks is most of the risk for your money now on the down side? our xtne guest says it is. we are back after this and are gluten & dairy free. they're all clean. all the time. even if sometimes we're not. sundown vitamins. all clean. all the time.
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message. and taylor swift unable to shake off bad blood with her old record label you are watching "worldwide exchange" here on cnbc ♪ >> bad blood, shake off. i promise we will never, ever, ever do a taylor swift uppun again. thank you for joining us let's get a check on the big headlines not in the world of money and business phillip mena save us take it away >> well done, brian. good morning busiest day yet in the impeachment inquiry with four witnesses set to testify about president trump's ukraine
scandal. the first two are the vice president advisor and counselor on ukraine both were listening to that pivotal call between president trump and the ukrainian counter part at the center of the investigation. bei bei the panda is headed back to china born at washington's national zoo and was one of the most popular among visitors and south dakota's new campaign to fight drug abuse. the slogan, meth, we're on it. the campaign features people saying meth, i'm on it that price tag for advising also includes the website the whole point is to raise
awareness. i think it is working. here we are talking about it >> all that matters is if it works. >> here is how your money looks right now. stock futures are looking a lot better i say that because it is cold and rainy. dow futures are up 113 points now. yesterday was the 12th record close of the year for the dow. the s&p 500 doing even better. it is on pace for 23rd record close of the year. speaking of the number 23, did you know the average gain of a stock in the s&p 500 is indeed 23%. check this out this could be the rbi. 63 stocks in the s&p 500 have popped they've risen more than 50% this
year 12 record closes 23 there the average is 2%. 63 names are up more than 50% this year. it has looked pretty easy to be a market guru. will it last i'll talk about that in a few minutes. let's look at other top stories. apple has announced it will hold another event focusing on apps the company says the event on december 2 here in new york will honor its favorite apps and games of the year. i guess these are app awards uber's chief officer leaving the company. gupta announced the note to the team he felt now was a good time to take a break adding that he is very bullish about uber's stock now down to 26.5 bucks
the outflow from ken fisher's lewd comments. a chicago firm pulling nearly $4 billion has been divested from the company after it was caught that he made inappropriate remarks. hopes are high in hopes for a trade deal former white house chief economic advisor argues president trump must follow through with the upcoming terrorist threat against china >> i think if there is no deal, he'll go through with them on december 15. he's given them time, got them through the other side of the holiday season december 15 is a long time from
now in terms of terrorist negotiations there is a lot of other things in the united states i think he thinks that is a forcing function and if he keeps blinking, he loses credibility >> bringing in eunice. yesterday, breaking news in the markets. missed you yesterday gary cohn is no longer with the administration i guarantee you those kinds of words from a guy with that kind of access or at least previous access are going to get attention in the halls of beijing, are they not? is. >> absolutely. of the chinese, they don't want to see a december 15 go into effect but there is a calculation here that is that president trump, many believe, won't want to see these new tariffs imposed either
especially right before the christmas holiday and because of the potential negative impact it could have on the u.s. economy i was speaking to more u.s. suppliers who do business in china. they are saying that the christmas sales won't be affected their pricing into 2020 will be. so far in terms of the impact on chinese companies, some manufacturers have already agreed to absorb some of the tariff not all of them. the ones that aren't agreeing are those that have customers in different countries. so suppliers here believe that they have no choice but to push some of that cost on to u.s. retailers and hence on to american consumers one of the ways i'm being told suppliers are being transparent
and fair is the way the contract is being written is different this year. many now because of a tariff charge in that contract so that if president trump does impose a tariff you will see that tariff charge if he decides not to impose the tariff that charge will be lifted >> brian thank you, eunice from beijing there must be some optimism because the markets just keep rising joining us, dave, you heard all the stats. the nasdaq is up 28% 63 stocks up this year in the s&p 500. is anybody surprised by the strength of this market given that by the way, nothing has been done on trade >> that is right we are entering into an air
pocket where we get out of earnings season in a week with the retailers. to your point, we haven't had any progress this phase one deal is being done now markets continue to make new highs. any data that seems to end in a y in the s&p 500 we have an all-time high. we have this fear of missing out behavior taking over >> if you could rearrange the letters of fomo, you can't say that is this market starting in some ways to not make sense when all the bears capitulate and give up and say, i'm going to buy stocks. everybody is piling into the same five or six names as evidenced on that goldman sach data is there any risk here
bu >> bull markets don't just end of old age we lookat forward priced earnings or sales. we are getting to the point where we've seen markets tail off a bit. that being said, we are seeing something interesting. for the prior few months especially in the last three weeks, more money was going into our bear fund. that gives you inverse exposure. >> as of when? how long since this thing started to happen? >> as of this week prior to that in the last month, people are betting in this market now they've piled back in. >> probably because if they were three times negative they got crushed they just said i'm taking my losses, licking my wounds and going home
>> you make a good point when you see that giving up in behavior when people aren't looking like playing that reversion, that plays the pause when people are beginning to pile into same names we are seeing it in all of the cyclical names regional banks, transportation oil and gas. the bullish markets for the people looking for the exposure. >> really interesting stuff. people are starting to come into these long only funds like they've basically given up it is not just here. we pointed out at the top of the show the german dax, the dow is up 13% in 90 days the french market, up 10% in 90 days it is almost like the market -- i'm trying to find the word appropriate for 5:41 on national
television it is moving higher without a lot of meat behind it. as we see with earnings, companies have been beating on a company basis so it has been enough we are getting to the point where if we don't see action on the trade deal i think we'll see investor sentiment weigh in a bit who is always supportive we've had a meeting at the house yesterday. the fed has been the backstop. we've seen it again and again, it is not just the fed it is the ecb and the doj. the central banks went from this time last year towards raising rates and the balance sheet. >> i feel like it is the subway pushers. >> you got to get on >> really interesting day of people capitulating. great stuff. coming up, lawmakers want more
answers from google about a data deal with a hospital network >> you got a disney plus account. somebody else may be using it without your oy.ka that story ahead stick around and are gluten & dairy free. they're all clean. all the time. even if sometimes we're not. sundown vitamins. all clean. all the time. i'm a regular in my neighborhood. i'm a regular at my local coffee shop and my local barber shop. when you shop small you help support your community - from after school programs to the arts! so become a regular, more regularly. because for every dollar you spend at a small business,
that's why i take osteo bi-flex, to keep me moving the way i was made to. it nourishes and strengthens my joints for the long term. osteo bi-flex - now in triple strength plus magnesium. >> welcome back. oil prices are down and stuck in that mid$50 range in the united states investors trying to keep track of the trade talks wti and brent stalled on some signs of progress. the issue is not supply or demand or both with us cnbc contributor just back from a couple of days at one of the biggest or biggest oil meetings in abu dab yu i saw you on the gram. is anybody there talking about
what is happening here. >> they are talking about the slowing story. a year ago, it was a slowing story. he was saying get prices lower this time, the move was very calm pointing to why they may not be as aggressive. roll over the cuts but maybe don't go deeper. >> that is interesting if opec is looking here. i was thinking if opec which has always been a four-letter word in america kind of a negative
maybe the only entity that can save the oil and gas markets if prices don't go up, we are going to have waves of entities. i always get calls going into the meetings they are all watching what opec will do. they are looking at the situation saying, you know what, roll over the 1.2. don't go deeper and see how this plays out. there are stories out of the u.s. much you've got norway coming on and guyana coming on the question is, is it enough? are they being too complacent themselves >> arguably, the swing producer won't be saudi, it is iraq we don't really know they are rioting there >> there and in iran
do you think that what we are seeing in iraq will affect oil output >> what we are seeing now is major protests closing one of the biggest ports for bringing in supplies for the oil sector they haven't closed fields yet these are massive protests 300 people have been killed. the question is are we going to see something like a big oil worker strike? >> iraq is printing money with oil. >> we have almost had a second arab spring. l lebanon has fallen people are saying, look, we have oil but we don't have water or electricity where is this money going. in iran are saying why can't we
have cheaper energy? where is this money going? in the case of iraq, you look at production rising and the revenue, the question is that ordinary citizens aren't seeing this >> the u.s. oil producers may now more than ever need opec they may need the car tell's ability to stay prices >> i think opec believes the better macroout look are a bit higher they don't want to give a huge lifeline to shale either >> will i see you in vienna. >> you will. >> more about what we are talking about today. joining us today mr. frank holland. disney plus already hacked >> subscribers might want to consider changing their pass
words. suggesting thousands were stolen by hackers and put up for sale on the dark web that happened hours after the launch last tuesday, also my birthday. the company says it takes user security very seriously. one says users that use the same pass words on multiple sites may be vulnerable to hacking >> i don't know about you, i use the same pass word >> i signed in to my spotify and there were like three users i didn't know. i like this car. >> motor trend says the chevrolet corvette stingray the
car of the year saying it will actually bring people into dealerships including a lack of road noise and comfortable supportive sleek interior. the exterior got mixed reviews corvette sales are down for the year >> corvette loyalists will hate it because it is a midengine car. corvettes have always been a front engine car you are getting in that car, a ferrari for half the price you get my point gm, if you need somebody, a 30-year experienced race car driver, i might know a guy on deck, the holiday shopping season are you already finished have you gotten started? who is going to win?
they say questions remain about what data is being stored with google carl icahn criticizing proposals from the sec saying the plan would reject firms and could have zas russ repercussions. planning aims to the accountability on the part showing the most widely owned stocks from the smart money like microsoft, amazon, facebook and google the same stocks that control the biggest perra
biggest percentage of the etfs the company they tend to hate the most is bristol meyers squibb bristol meyers is buying celgene. but still there at the top of the most shorted by value missed is a little random but hopefully interesting. there are just 35 days left to christmas. have you crossed everything off your list? here is the thing, six fewer shopping days this year because of calendar a nomlies. jessica is joining us. great to see you you have this thing called pie
plus o what is it and why should we care about it? >> the consumer started changing the way they were shopping the four ps didn't work for us anymore. the other thing making consumer shopping is influencers that changed in social media. that is really the ie. that's really where the consumer learns about a brand digital, do you have the app, those channels start communicating. that is really important last is omni channel are you shipping from store, can you buy online and pick up in store. >> kind of the boring stuff. so jessica who is doing it right? >> target. they have really taken it. you look at walmart and what
they've been doing trying to been amazon. target, you can ship from their stores the small format store is amazing. they tap into the higher income shopper which walmart doesn't have >> it hurts me to say it i'm starting to feel the same way about black friday, i'm sorry. it's becoming irrelevant less relevant. >> a consumer shops. you are talking about six days less in the calendar year. the consumer sees that when they have deadlines for christmas gifts. for us, black friday, cyber monday is another time for more. >> i hate to see these deals coming out
it's november. >> really, wow, it is amazing. for ulta, we saw kylie cosmetics have an skplusive. >> by the way, got a $6 million buy out by coty the other day. that does it for "worldwide exchange" this morning "squawk box" begins right now. futures pointing to a sharply higher open after the record close of the year for the dow yesterday. defaulting to some green this morning. home depot set to report any second now reaction in the stocks straight ahead. the report that thousands of disney plus accounts for hacked and posted for sale on the dark web. it is tuesday, november 19, 2019 "squawk box" begins right now.
>> good morning women come to "squawk box" melissa lee is in for becky quick. we have a big morning and a lot of earnings to talk about. we have some green ar owrows s&p looking to open about 9 points higher, the nasdaq looking to open about 35 points higher the 10-year note right now 1.822. meanwhile, joe, imagine right ab