Skip to main content

tv   Worldwide Exchange  CNBC  October 19, 2020 5:00am-6:00am EDT

5:00 am
it's 5:00 a.m. at cnbc. ready to run stocks set to keep october's win streak going futures are higher >> maybe because in washington optimism around the latest leg of taxpayer spending, even as speaker pelosi sets a hard new deadline. new comments out of the uk about its covid vaccine. bringing boeing back what one airline is saying about the grounded 737 max and its plans for holiday travel have you checked your credit
5:01 am
score lately what one new study is saying about the american household and it may be good news for you on this monday, october 19th. this is "worldwide exchange." good morning, good afternoon, good evening, i'm brian sullivan thanks for joining us to kick off your week. here's how things are looking to start this new week. futures are solidly higher dow futures up about 135 points. it's a big autumn so far the nasdaq and nasdaq 100 coming off the fourth straight winning week both now up around 4% since the beginning of october small caps, they continue to shine. the russell 2000 up more than 8% on optimism for more stimulus as well as hope for a domestic
5:02 am
economy rebound. check this stat of the day out in the s&p 500, 60 stocks are up more than 10% this month the best of the best is tapestry, tpr, the old coach retailer on the more macro front, another huge day for speakers from the federal reserve. chairman jerome powell will make remarks along with three other fed speakers actually five other -- six fed speakers today if that was not enough, a lot of news making events coming up this week including today you have the opec meeting and the nahb housing index, major retail sales data out tuesday, and the fda vaccine panel will meet thursday those are the three big things happening this week. meantime around the world, a mixed picture in asian trading overnight, even as china posts
5:03 am
surprisingly big economic numbers. we'll get more on that in a moment europe is getting their trading day and week started as well france is the big winner there as well. up 0.8%. so now let's get to the big economic news out of china it's economy continues to bounce back from the pandemic faster than many might have thought eunice yoon has the break down and the news you the of china for you. eunice, good to see you. >> great to see you, too china's gdp expanded in the third quarter by 4.9%. this is lower than estimates but still back in the range of where china's economy was growth-wise before the pandemic. so gdp for the third quarter came in at 4.9%. property investment looked vet pi goo pretty good not only for the quarter, but property investment in september was up 12%. this is the fastest pace in 1.5 years. the jobless rate came in also
5:04 am
better, a little bit improved, falling to 5.4%. that doesn't reflect the entire unemployment picture because the jobless rate here only looks at the cities, they don't include the migrant workers, but it did lend support to some consumption we saw retail sales came in at 3.3% industrial production as well as fixed asset investment looked solid for september. that's been indicating to many economists around the world who watch china the momentum for the fourth quarter is looking pretty good >> let's talk about these numbers here and what it's been like there you are a window, sort of, into how things may look coming out the other side we hoped here we were coming out the other side sooner than we have so we asked you are you going to the movies
5:05 am
are you going to restaurants what is eunice yoon's day-to-day life like right now? >> i just came back from a restaurant at lunch where it was pretty packed. over the weekend i did go to the movies so life here is for the most part returned normal as you know we had a huge holiday over the first couple weeks of october there were 640 million people traveling all over the country so, for the most part it is pretty normal. a lot of that is because the country was able to manage the pandemic so we see a lot of that in the state press where the authorities here are proud of the fact that they've been able to get things under control as they like to compare in contrast to many western countries including the united states. that's the main takeaway like when other antidote, last week, we had a bureau lunch but one of our colleagues told us
5:06 am
she wasn't able to come because she had heard that there was somebody in her compound who had a fever who had come back from another place who had an outbreak so what happens here is the whole city and the country tends to go into lockdown to root out those specific outbreaks it turns out the guy actually just had a fever, he didn't have covid, the test came back after a couple hours, she was fine it's that kind of pinpointing that has been helping the authorities here really root out the problem with the pandemic. >> yeah. human beings acting responsibly it sounds like just the seasonal flu perhaps, but otherwise back to normal envious. eunice yoon, thank you very much here at home, nancy pelosi sending a hard message to the white house. you have 48 hours to get something done around taxpayer funded stimulus.
5:07 am
bertha coombs has more on that it sounds nice, go to a restaurant, go to the movies, hop on a plane, see some friends. it all sounds kind of nice, doesn't it >> it does sound nice. i can't quite imagine it just yet, we'll get there we'll get there. good morning, brian. good morning, all. nancy pelosi is calling on the white house to reconcile it's remaining differences on a new coronavirus economic stimulus package giving the trump administration a new 48-hour deadline if it wants a bill by election day she said that in an interview with abc's "this week" saying she is optimistic amid the back and forth. this comes after the speaker spoke with steven mnuchin for more than an hour about the package over the weekend overseas, the sunday times is reporting the uk national health service is preparing to roll out its oxford university astrazeneca joint covid-19 vaccine around christmas time.
5:08 am
the times citing a private meeting between an nhs executive and mps where the executive said a vaccine soon after christmas is not an unrealistic suggestion adding that the nhs is planning to train thousands of vaccine staffers before the end of the year this is the vaccine candidate with trials kurtly on hold in the u.s., though they have resumed in most parts of the world. and ant group won approval for the hong kong leg of its expected ipo the fintech joint is seeking to list in shanghai and hong kong a hearing with the hong kong stock exchange, a key part of the approval process, is also taking place today brian? >> some really good news there around a possible vaccine even by christmas time that would be
5:09 am
huge bertha coombs, see you in a few minutes. thank you very much. now to the markets and your money. get ready to hold on your next guest says the next couple of weeks could be a bumpy ride, with this whole election thing and back and forth headlines around stimulus and the potential vaccine. all keeping the headlines fluid. for more now we're joined by gregory branch, partner at 1847 financial. greg, good to see you. we got the vaccine news. we got the election thing you might have heard about coming up we have the fight over stimulus. in your mind what might be the market mover more than anything else >> the election. that's the market mover, more specifically when we have a resolution to the election because it's not clear that that's going to occur near the november 3rd deadline. we need to remove this uncertainty from the market.
5:10 am
by that time we'll have a better indication of where the increase in cases for covid is going. we'll have a better indication of where we are with the stimulus we need to power our economy we'll have a better indication of whether we can look at 2021 earnings.. we'll be looking for the sectors and companies poised for growth in that year >> who do you think those sectors and those companies are that are poised to growth next year >> i think this is playing out a lot like we saw the last time we went through something like this we saw in 2010 to 2012 that tech and growth actually underperformed as other cyclical and hard sectors in the economy started to rebound off the bottom so just as we saw then, the s&p 500 minus tech is expected to grow around 35% next year. the average growth in tech stock
5:11 am
is expected to grow around 15% in that environment, when you think about the high multiples that some of these names have, having benefited from our current environment, you will want to start to parse what can continue that level of growth next year and warrant that high multiple versus other things that will be growing from basically a negative or no profit and experiencing triple digit earnings growth. for that latter category, i'm looking at financials which are expected to grow about 100% next year in many cases trading at a significant discount price to tangible book as well as offering a hefty dividend and some consumer discretionaries are in the same boat with a hefty dividend, trading at a discounted multiple based on their own history. >> we're supposed to buy low and sell high or buy high and sell higher you talk about the fast growing tech companies we all know those.
5:12 am
you have energy and financials down on the year the both looking pretty grim sounds like you're fairly bullish on some of the final financials are there any banks or financial names that offer you and your client good value? >> yeah. and to some extent it depends on what your timeframe is if you're looking for exposure now, i would look at the more diversified larger name. trading at a significant discount they also have the diversity to continue to deliver earnings growth even in this environment. when you look at the larger banks like jpmorgan and citi that have trading operations, investment banks, they've been able to counter the loan losses we have seen for the next few quarters once we think the provisioning is done, then there's value elsewhere as well based on the
5:13 am
multiple versus history, based on the trajectory we'll see from these banks. >> all right greg branch, 1847 financial naming some seblgte esectors an that may benefit in 2021 see you again. >> take care when we come back, call it the smart city revolutiorevolutn the stock that could make you money as the urban landscape goes high-tech. is there anything opec can do to push oil prices higher helima croft has what you need to know. and why the presidential election is looking more and more like 1932 it's your morning rbi, random but entrustiinteresting. dow futures up 140 we're back on "worldwide exchange" after this
5:14 am
5:15 am
5:16 am
welcome back as more as more cities go high-tech and maybe nose into your privacy a bit, investors may be able to make a lot of money, so says barclays out with a new report that they call the smart city revolution. researchers there saying some 3$3.7 trillion a year is needed globally to fund current urban
5:17 am
expansion trends and it is names t naming the names that could lead the charge pippa stevens wrote about it i loved the article last night i love urban planning and all the stuff around city development. why are we talking about this right now? >> hi, brian smart cities have been promised for years, but there's been really little progress to date however barclays is saying that that could be about to equitabls available for everybody across all our urban cities another key thing is sustainability we have the paris agreement, the european green deal, we have a surge in esg investing people are just a lot more interested in making our cities cleaner, particularly since 70% of global emissions come from cities and 40% of those are from just buildings also funding incentive the government can't do it alone, so the private sector is saying this is a really great opportunity for us to partner with the government.
5:18 am
finally, just the technological development. we had much better sensors, better data collection we are much more able to actually come to conclusions based on all of this data and use ai to make smarter and faster decisions >> all right, pippa. what companies, whatnames are we talking about here? also what will they be doing looking through ou window with their high-tech cameras? what are the companies involved in this new revolution >> barclays looked out ten sectors and said number otrillion annually required just to support the growth of our cities for infrastructure spending and smart infrastructure is a huge push there for instance, in building automation, think about honeywell and johnson controls think about a building that has all of its lights on but nobody is there thatcollected. of course the backbone of all of
5:19 am
this is semiconductors so names like texas instruments and nvidia they're the ones that power the internet of things they're the ones that are everywhere from our traffic lights to smart trash cans that can reduce the number of trash collections. things like software processors. so microsoft and palo alto networks >> i love it smart trash cans i love it. i urge everybody to read your piece on cnbc.com. i thought smart trash cans if we could only get the trash picked up in new york city, that would be the smartest thing we can do. i love the article pippa, thank you very much take care. wonder if we'll have smart rats to go with the smart trash cans on deck, after a spectacular average meal over the weekend. i went on a bit of a twit errant
5:20 am
and asked you for your most xceed the meal casual responded. it's topping this morning's trending stories there's still time to make your voice heard. at cdw we get you want happy, productive employees.
5:21 am
well we've made our office pet friendly. [ bleat ] [ cooing ] maybe a little too pet friendly. well you know cdw can design a mobility solution with light powerful devices from lenovo to make your people more productive in or out of the office. anyone have any questions before we go? that's great cause i really need to get out of here. snake people are freaking me out. hey sheryl, you have a sec? -nuh, uh. for work place productivity you need lenovo, and it orchestration by cdw.
5:22 am
people who get it. shaped by technology chand human ingenuity,s. we can make it work for you and your business. ♪ all right.
5:23 am
welcome back good monday morning here we saw october as a solid month for equities futures now indicating that could continue last week a bit of a bump here, down a bit on most of the major averages overall a solid month. small caps up about 8% the s&p 500 and nasdaq up about 5% and 4%, and it looks like that run could continue today. dow futures up 150, but look at technology the nasdaq up 101 points it could be a big day for big tech and your money. all right. still to come, new developments in what could be a huge deal in the oil patch. we'll give you details next. plus getting a little tired of working from home you're not alone one japanese theme park is looking to shake things up for a few lucky thrill seekers we're back with more on that and your top trending stories right after this in a few moments, rackspace technology will enter a new and exciting chapter.
5:24 am
across muti-cloud, apps, data and security, we focus on solving the business problems of our customers with technology we are a type of company the market has not seen before. going public will further invigorate our mission to embrace technology, empower customers, and deliver the future.
5:25 am
toit's time you make the rules. customers, so join the 2 million people who have switched to xfinity mobile. you can choose from the latest phones or bring your own device and choose the amount of data that's right for you to save even more. and you'll get 5g at no extra cost. all on the most reliable network. so choose a data option that's right for you. get 5g included and save up to $400 dollars a year on the network rated #1 in customer satisfaction. it's your wireless. your rules. only with xfinity mobile.
5:26 am
stocks look set to keep last week's momentum going. dow futures up 142 in focus for you, house speaker nancy pelosi giving the white house a deadline to get a stimulus deal done you have two days to get it done we're going to take you live to washington and the markets also keeping close tabs on the race for a vaccine and some good news on when doses may start to roll out. nice to have some good news on a
5:27 am
monday morning it's october 19th. this is "worldwide exchange. ♪ all right. welcome back good monday morning. hope you had a great weekend i'm brian sullivan, thank you very much for joining us let's get to how your money and investments are shaping up their week coming off we'll call it a decent week for equities, they were flat to slightly down but they held up despite the news. it's been a big october so far the nasdaq and nasdaq 100 coming off their fourth straight week of gains, and both are up about 4% since october 1st but are the small caps that continue to outper foform still going? the russell 2000 is up 8%.
5:28 am
optimism maybe for more stimulus as well as an economic rebound in the middle part of next year. in the s&p 500, 60 stocks are up more than 10% this month the best of the best is the old coach, now goes by the name tapestry with a 17% gain so far in october who would have known you do now on the more macro front, another huge day for fed speak you have chairman -- i think every day every member of the fed just gives a speech somewhere. doesn't it feel like that? we have fed chair jerome powell and all the other fed members speaking rafael bostic speaking yesterday as well on "face the nation" about the u.s. economy if that were not enough, a lot of news making events this week as well. today you have got the opec meeting, you have some key housing numbers coming out of 10:00 a.m. eastern time, you have some big retail sales data coming out tomorrow, and the fda vaccine panel not getting a lot
5:29 am
of attention but that panel will meet on thursday maybe some positive headlines there. something to keep on your radar. staying with that, and on the race for a vaccine, the sunday times of the uk is reporting that england's national health service is preparing to roll out its oxford university astrazeneca joint covid-19 vaccine right around christmastime. "the times" citing a private meeting when an nhs executive and members of parliament and they said a vaccine rolling out soon after christmas is not a totally unrealistic suggestion adding that the national health service is preparing to train thousands of staffers in vaccine administration before the end of the year now, investors should note this is a vaccine candidate with trials currently on hold here in the states, though those trials have resumed in most parts of the world. still, some pretty optimistic
5:30 am
news coming out of the uk around a possible global vaccine. from the uk to d.c. and the continued push to strike a new deal on stimulus house speaker nancy pelosi now giving the trump administration 48 hours to get a deal done, settle any fights, and get an agreement before election day. ylan mui joins us now. the speaker setting a hard deadline do you think this will help get a deal done or is it one of those things where you better get it done and it won't happen so we won't get a deal >> deadline or no, the senate is set to act this week the senate will take two votes on coronavirus relief measures this week. but neither of them are going to go very far. the first vote the senate will hold will be on tuesday, that one will be on a standalone measure to extend the payroll
5:31 am
protection program that helps small businesses that has been a top priority of the trump administration democrats say that they're withholding judgment until they see the substance of that proposal but they already rejected the idea of any piecemeal package in the past. on wednesday, there is a $500 bill that includes not just ppp but for schools, enhanced jobless benefits, and more tracing, testing and vaccine funding. democrats call that a sham and that it doesn't go far enough to help the american people last month democrats voted against one similar. all that political maneuvering in the senate comes as the treasury secretary, steven mnuchin, and nancy pelosi keep trying to hammer out a deal. they were on the phone again this weekend talking about the language around testing.
5:32 am
pelosi said there was encouraging news, but that more work remains to be done particularly on the child tax credit, state and local government funding as well as the census so pelosi said if they reach a deal by the end of today, there could still be time to get something done before the election brian, most people in washington have already given up on that deadline back over to you >> so what happens if nothing happens by the election which i'm told by the way is coming up soon is there a timetable for when relief could arrive for many of these struggling businesses around the country >> so, there are two schools of thought on that. the next legislative deadline for congress will be december 11th that is when the government once again runs out of money. congress will have to pass another bill to keep the government open and the lights on that could be a vehicle for them
5:33 am
to pass some type of relief measure. that's one thought all the political dynamics that exist now will still exist on december 11th. it will be the same players negotiating the deal so the other school of thought is that we don't see anything happen until there is a change in administration or a change in congress, nothing would happen until after january and the inauguration in february is what we're looking at >> wow a lot of businesses may not make it until february. thank you very much. for more on this and the stimulus stalemate we're joined by andy blocker, head of u.s. government affairs in invesco and a special former assistant to the president for legislative affairs in the clinton administration the good to see you again. is it fair to say that -- we did the story about the vaccine just before ylan, not by accident is it fair to say that as we get
5:34 am
closer to good news on a treatment front around covid that the republicans may play hard or harder ball around how much they're willing to spend? >> brian, that's a great point good to be with you again. i think the key here is that we're really in full blown election season. it's hard to get things done where the conservative republicans and the liberal democrats don't see an advantage to getting things done the real thing driving things is the senate republicans in swing states and the house democrats in swing districts are the ones keeping everyone at the table. it's good news that nancy pelosi put out this deadline because washington only really works when there's a deadline. >> is there a chance that you think -- the market is under the assumption that a deal will get done exactly what it looks like we don't know, but there will be a deal is there any chance in your
5:35 am
mind that we won't get a deal? they can't make one? >> well, i think right now at n invesco that we're thinking a deal will be done before the election but i think the fact that so many people are hurting right now, we talk about the gig economy, someone like myself who can work from home, it doesn't impact us as much. but those people who have to get out and go to a job, it's really tough. so i think there's enough pressure right now so that because people are really hurting that there can be a deal but the politics right now are not fully aligned. i'm hopeful, but i'm not optimistic >> you know, i was talking to a friend by phone over the weekend. you know, i don't give stock recommendations at all, but my point in looking at the notes
5:36 am
for this interview and reading other stuff was that if there is no deal done before the election and if the polls are right and if there is a blue wave, whatever you want to call it, democrats win the white house and take back control of the senate, that small caps could benefit in a huge way because there could be a much larger deal come january. how much of a realistic possibility do you believe that may be >> i think that the conventional wisdom right now if biden wins the presidency and democrats have the house and senate, any covid-19 stimulus will be larger and any subsequent infrastructure bill will be larger that's spot on that's why i think the markets now are holding on >> that could benefit the domestic economy, at least in the short-term because of all the things, longer term, goldman
5:37 am
sachs said for a year that could boost equities do you agree with that perspective? >> absolutely. in the short-term it's good. there will be a lot of sensitivity in a biden administration making sure you first get the economy going. if you ignore the economy and you try to put in a bunch of new liberal policies it won't work i think going back to the goldman sachs report, in the short-term i hear you, there may be some anxiety, but the way we're looking at it is any tax increase really won't take effect until 2022. there's time to plan so i really wouldn't take that as too much of a concern right now. >> yeah. andy blocker, need your wisdom here ahead of the election and all the stimulus back and forth. good to see you. thank you very much. >> thank you all right. outside of that, maybe the global oil markets could use a little stimulus as well. key opec ministers are set to meet again today a conference coming amid unnerving trends in the fight against covid-19
5:38 am
you have a global price stuck around 40 bucks in the united states and new supply coming online from libya. no new big change is expected today, leading members are already setting the stage. russian president vladimir putin and mohammed bin salman have spoken twice by phone in a week, the first time those two have done so since the depths of the oil crisis back in april joining us now is helima croft always great to see you. as you lay out -- people say why do you talk about oil? fossil fuels are dead. first off, fossil fuels will not be dead for decades, also it's not about oil. it's about geopolitics, it's about shifting trillions of dollars around the world the saudis have done a great job of keeping oil prices stable,
5:39 am
the problem is they're stable at $40, $45 does anything meaningful happen today that could move that needle >> i think the key thing we're looking for is any signal that they may put on hold plans to actually raise production by 2 million barrels a day at year end. if we think about that historic cut they did in april when they were in the depths of the price collapse that was a 9.7 million barrel a day cut they've been easing off of that. it's about a 7.7 million barrel a day cut. they're anticipating basically putting 2 million barrels additional on the market come january. that's the key thing to watch for. last week you had the russian oil minister basically saying they're going to continue to taper as planned, which is leading to a lot of anxiety. as you mentioned, covid-19 cases are rising especially in europe and the united states. there are concerns that libyan barrels are coming back. so the question is does opec put
5:40 am
on hold plans to raise output. >> how can they not? honestly, they could -- they could do it and have $30 oil, right? how can they do that >> i -- i think the path of least resistance is to not go forward with that planned increase in december, but again that said, you had two important ministers out last week basically saying right now they're still on track for that. the bigger question is what happens in 2021? you talk about the vaccine story. if we did get a working vaccine, that would obviously be supportive particular lly for markets like jet fuel which are in the doldrums. this market is being held up by the strength of the chinese economy. anything important in terms of a vaccine would be constructive for oil markets. stimulus will be constructive for oil markets. the question is if we do not get a working vaccine, what does
5:41 am
opec have to do to try to push prices higher? there's a question about how much more they can do. countries like iraq are on the hook to make additional cuts they're struggling with that the iraqi government has not been able to pay civil servants since september. the question is is saudi arabia going to come in and do more work next year >> well, that is the question. let's, iraq, they have to deal with a population that's just trying to keep the lights on literally and feed itself. they need cash flow. you know, whatever i look at venezuela. you and i talked about this a lot. venezuela is at the lowest oil production since 1928. i mean, it seems impossible to consider that. but it's true. has venezuela you think finally bottomed out do you think there could be a day where literally they don't produce anything >> you talk about a geopolitical story, venezuela is essentially a failed state at this point
5:42 am
when we talk about how does venezuela turn it around they'll need a massive reconstruction program if we did get a change in the house, would you see some efforts to have some type of diplomatic off-ramp with venezuela? another important country to watch is iran. if you get a change in the white house, do you get the u.s. going back into the iranian nuclear deal and are we looking at a million extra iranian barrels back on the market the back half of the year? so there's a lot of geopolitical stories out there that can be impacted by this election. >> i'm hearing you say iran may come back more online, libya may come back more online as demand slows down, that does not bode well for prices. helima croft always great to see you. some day we'll see each other again in that stairwell at opec headquarters you and me and 200 other journalists stuffed into a stairwell. i actually miss it
5:43 am
thank you very much. >> thank you coming up, economic headwinds are no match for credit scores. the new record they're hitting and other top stories that are trending this morning. first, as we head to break, here's some other top headlines on this monday cvs announcing they're planning to hire 15,000 new employees to prepare for a surge in covid-19 and flu cases heading into the winter conoco phillips finalizing a deal to buy concho resources the merger could be announced as soon as today and would create a heavyweight driller in the permian basin. and american airlines planning to return boeing 737 max to service for passenger flights by december. the airline says the timeline is highly dependent on recertification by the faa "worldwide exchange" is back in a moment
5:44 am
5:45 am
5:46 am
welcome back time for your top trending stories, let's start with a beef i had in trying to put the social back in social media. i had a twitter poll over the weekend because i took my kids out to a hotly touted fast casual restaurant and the meal was meh. so i kind of went on a rant. i asked all of you which of these top fast casual restaurants is the most
5:47 am
overrated? and the early results were in. 34% of you said that panera was the most overrated of those names. chick-fil-a came in last in other words, the least overrated. bertha coombs has some reaction to that and more of the top trending stories i didn't pick on those -- i want to be clear, i sort of -- >> i was going to say, why are you picking on panera? if you like baked goods and bread, that's your go-to >> i love all businesses, okay that's what we do. i want to be clear, i asked what's the most overrated, and those are the four restaurants that the majority of the people on social media came back with i said okay, let's have like a winner take all sort of cage match, you know, if you will >> now i want to look at their stocks and see how that relates. >> i'm not going to say which
5:48 am
restaurant it was, it was an average meal panera getting the hard take, you have an opinion there? >> all right well, we've got a couple of things -- a couple takes here. some of these might intrigue you. "wall street journal" reporting that unusually credit scores actually went up in july despite economic headwinds the average fike cocredit score w was 711. that's the highest since fico started keeping track of the average back in 2011 if mask breath has been a concern for you, hormel has you covered. the company has announced a limited edition bacon scented face mask. in addition to giving away masks for every request, hormel will be donating a meal to feeding america. that would be too hard to smell
5:49 am
bacon all day. if you're tired of working from home, maybe you would like to change it up and consider working from a ferris wheel. one japanese theme park has started offering a work-cation package that allows customers to work from the park's pool side booth and a ferris wheel a weekly pass will cost you about $18. no thanks for me at the top of the ferris wheel i find those scary when they stop >> well, just don't stop keep rolling, bertha back to that bacon mask. by the way, i realized i need to brush my teeth a lot more than i do why doesn't wrigleys -- are they missing an opportunity here? make it smell like gum >> gum or maybe rather than food the perfume makers, cologne makers could have a nice one
5:50 am
lavender is nice and calming it would be great. >> jasmine all that ♪ parsley sage, rosemary and thyme ♪ i just dated myself horribly bertha coombs, thank you very much >> keep the day job. >> by the way, just half the listeners shut their radio off, like who's singing thank you. as we head to break, be sure to sign up for the cnbc financial advisers summit bringing together the top advisory firms to explore the state of the markets visit cnbc events.com/fa summit to learn more and register if you are a financial adviser, you get your course credits by attending. that's a big deal. it's october 20th. that's coming up tomorrow.
5:51 am
5:52 am
5:53 am
welcome back investors are grappling are all kinds of stuff going on. stimulus talks, this virus you might have heard about, all while trying to traverse earnings season and two weeks now until election day for more we're joined by valerie grant, senior vp for responsible investing at alliance bernstein. we've been saying since march the only economic data that matters is health data health data is the new economic data get everybody healthy and safe and things will boom how much does the election sort of change the rankings of what's the most important for investors right now? >> i still believe that the trajectory of the virus and our ability to contain the covid-19
5:54 am
pandemic is critical but the election does change things a bit obviously there is a need for fiscal stimulus. i think there's actually broad agreement on the need for it the debate is about the size and the magnitude and also the various buckets where the dollars will be allocated. so i think that whether we have a republican administration or a democratic administration or even perhaps a mixed government in terms of the various branches we will see some level of fiscal stimulus following the elections. >> does it matter to the markets how much if it's 1.5 trillion or 2 trillion, will that move the market either way? >> i think people will breathe a sigh of relief as long as it starts with a "t" for trillions. given the magnitude of unemployment, the challenges small business are facing and given the inability to control
5:55 am
the pandemic, we need at least a trillion dollars of stimulus for investors to be happy. >> i'm old enough to remember when a trillion was a lot of money. i guess we'll have to learn watts ne what's next? is it a zillion? how key is health care health care, where does that rank for you >> health care is a very important part of the economy and it's definitely an important part of any investment portfolio. if you look to some of the health care companies that are really providing i would say life saving or medications, products, services, that's where i would focus. as an example, merck is one of our core holdings, it has been for quite some time. they developed a formidable oncology franchise based on their drug, keytruda and merck
5:56 am
is working on a vaccine. i would be curious to see how that progresses. in addition, there's a company in our portfolio called steris, they provide sterilized equipment and products used in all types of health care services our focus is on those companies providing essential products and services for the health care syste system >> is that the old steris cycle? >> the company of the company is actually steris. >> so they trade in the uk but trade here as well st the ticker. merck as well. valerie, a pleasure to have you on have a spectacular day and a good week. we'll talk to you soon >> great thank you. >> names there from valley grant. it's amazing how fast it goes. we didn't do the rbi today, but we'll do it tomorrow and it's a good one dow futures up 127
5:57 am
nasdaq up 100. a big day. that's it for us "squawk box" is next ♪ you can go your own way ♪ go your own way your wireless. your rules. only xfinity mobile lets you choose shared data, unlimited or a mix of each. and switch anytime so you only pay for the data you need. switch and save up to $400 a year on your wireless bill. with the carrier rated #1 in customer satisfaction.
5:58 am
call, click, or visit your local xfinity store today. there were tsunamis fourtin the world. and once they happened, we were in a major hurry to get to those regions to provide aid and support. it was very humbling to be able to help out all those people. it's my dream now to go into clean energy and whatever the next new fuel source is, that's where i want to be. i want to be on the front lines of implementation.
5:59 am
good morning green arrows to start the week as there there is a fear of another wave of covid-19 fears. sneaker success, we'll talk to a company that wants you to treat footwear in your closet like the ultimate investment it's monday, october 19, 2020. "squawk box" begins right now. good morning, everybody.
6:00 am
welcome to "squawk box" on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. we are seeing green arrows this morning when it comes to the u.s. equity futures. dow futures up by 127 points the nasdaq up by 91. the s&p up by 16 this is a big deal it's been a strong four weeks for the market strong october, but you're looking at four weeks in a row that we've seen gains for the nasdaq even though it was down 4

50 Views

info Stream Only

Uploaded by TV Archive on