tv Worldwide Exchange CNBC January 14, 2021 5:00am-6:01am EST
global headquarters and here are your top five at five. a historic moment as donald trump becomes the first u.s. president to be impeached twice. the latest out of washington on those proceedings, and what happens next amid that political turmoil, the markets, well, they just continue to slowly crawl higher and investors just try to shake off those d.c. tensions. and the white house apparently backtracking on its plan to roll out a crack down on several big chinese companies. and speaking of big, big tech finding it uself under
pressure as the markets favor stocks they seem to be losing momentum, and that ipo parade rolls on and on as poshmark and petco become the latest companies to exceed expectations with their ipos it's thursday, january 14th, 2021, and you are watching "worldwide exchange" right here on cnbc. good morning, i'm frank holland. i'm in for mr. brian sullivan. here's how your money and global markets are setting up your day on this thursday stock futures right now, they are slightly higher with the exception of the nasdaq. the nasdaq actually in the red stocks, they've struggled for direction this week after notching records just last week as stimulus prospects, political turmoil, continue to weigh on investors. the dow, s&p and nasdaq are up roughly between 1 1/2 and 2% this year. we have to talk about the
russell 2000, it continues to outperform, up nearly 7% in the same period. the nasdaq getting a big boost yesterday from shares of intel shares just surging, 7% after the chip giant announced it had ousted ceo bob swan, it urged sweeping kangs changes at the companies. shares are up slightly, more than a percent and a half, and we are watching shares of affirm holdings, the stock initially opening at just under 91 a share, after the ipo priced at $41 apiece right now, the shares, you can see it right here, up almost 7 1/2%, right at 104, almost 50. now time to go overseas as we monitor the political crisis that is taking shape in italy. joumanna bercetche is live in london with the very latest. >> hi, frank, yeah, well i think the important take away for investors here is that even though we are seeing some political turmoil in italy, it
is not necessarily going to lead to snap elections, and that is the key point. one of the keeco liy coalition partners has pulled out of the government, either to couple together another coalition with other parties, small parties, and manage to maintain his position as prime minister or resign in which case the president of the republic would then try to put together a national unity government because really this is a time when italy needs to be focusing on the distribution of their recovery funds coming from the eu it is not a time for snap elections, and that is the reason why we're seeing muted market reaction today. italian btp spreads are 2 basis points wider, not much movement in euro currency as well many are saying, they continue to buy up government bunds in the euro zone, no reason to be short at least while we know there's not going to be a snap election that's the latest from europe. thank. now to the latest, companies that are set to make their
trading debut here in the u.s. in what's shaping up to be a major week for ipos. bertha coombs has more on that and the morning's other top stories. >> good morning, frank it's like they say in "sesame street," you know, today it's brought by the letter p, poshmark, and petco are joining the ipo boom as the two prepare to begin trading poshmark at $42 a share, above the target range of 35 to 39 and that will give the online marketplace for secondhand goods an initial valuation of $3 billion the company will be listed on the nasdaq under the symbol posh meantime, petco also exceeding expectations with the pricing of the ipo, price shares at 18 bucks apiece, raising $864 million with the offering will also trade under the nasdaq under the ticker woof.
appropriately enough cats don't get any representation there the trump administration apparently scraping plans, though, to blacklist several chinese tech giants. according to reuters, the white house had been considering adding alibaba, tencent, and baidu. with less than a week to go, the report adds that the administration may just move forward with a ban on nine other companies. and snapchat has become the latest tech company to permanently ban president trump from its platform. the company citing the interest of public safety and efforts to stop the spread of misinformation and hate speech for its decision snapchat had stopped promoting president trump's content on its discover platform back in june, limiting his reach to users. who knew the white house had a snapchat i don't have one, do you, frank? >> i do not have a snapchat. i don't even understand snapchat it doesn't quite make sense to
me i do like the little videos on instagram and even twitter now i can't connect to it. >> they copied snapchat. >> back to the petco ipo, i don't know anybody who spends on their cat, but i know all kinds of people who spend on their dog. i don't know if you have a pet yourself. >> i don't have a pet. i'm a dog person i think cats are too disdainful to let you dress them. i have friends that spend on their kittens. >> cats have a bit of an attitude bertha ac b bertha coombs, thank you very much. the house voting to impeach president trump. tracie potts joins us with the latest >> good morning, everyone. while we are increasingly on lock down here to prevent further violence, now the big question is what's going to happen with the senate and when might they hold an impeachment trial? that question still unanswered
this morning president trump is waking up this morning as the first and only president to ever be impeached twice. >> today in a bipartisan way, the house demonstrated that no one is above the law not even the president of the united states. >> reporter: house speaker nancy pelosi made it official after ten republicans joined every democrat condemning the president for inciting last week's riot at the capitol. >> i'm not choosing a side, i'm choosing truth. >> if inciting a deadly insurrection is not enough to get a president impeached, then what is. >> reporter: most republicans argued this impeachment was not about last week but the end of a four-year vendetta by democrats. one of the president's staunchest presidents who voted no blamed him for the attack >> the president bears responsibility for wednesday's attack on congress by mob rioters. >> in a video taped speech with no media present, the president never mentioned impeachment, but
urged extremists headed to washington to remain peaceful! there must be no violence, no law break-in, and no vandalism of any kind. everyone must follow our laws and obey the instructions of law enforcement. >> reporter: now, impeachment heads to the senate where majority leader mitch mcconnell says he's undecided on the president's guilt, but there will be no trial before next week's inauguration. president-elect biden is hoping the senate can do double duty. in a statement, he says he's hoping they can hold this impeachment trial while they're dealing with what he calls other urgent business of the nation. frank, that urgent business would include getting his cabinet confirmed. >> yeah, historic days down there in d.c., tracie potts, thank you very much. turning back to the markets, futures in positive territory on the heels of that second impeachment of president trump joining me is liz young, and cnbc contributor thanks for being here.
>> good morning, frank >> so let's get right to it. you're saying that 2021 is a sector and stock picking game. yesterday what we saw was unprecedented, certainly unexpected what do you make of utilities being the best performing sector on wednesday, energy being the best performing sector this year, and russell hitting an all time high intraday before closing in the red how do you pick in this environment? >> first of all, it's only january 14th, and we've got a long way to go to get through the rest of the year i think what investors need to consider is there's the first three-month period where we're going to get a lot of news on the political front, we're going to get a lot of news on the fiscal front, and we still have to look at the second quarter, third quarter, fourth quarter, which is when we expect the recovery to take shape that's when it becomes a sector picking game, a stock picking game, and you have to be careful about what you're exposed to one of the biggest things i want investors to remember is consider what will change permanently post pandemic, and
what was just a temporary phenomenon. >> so what sectors are changed permanently post pandemic, and which ones are just seeing a temporary boost or decline >> we'll start with tech because i think tech gets a lot of air time, but it's worth it, so let's clear some things up first and foremost, you don't go backwards in technology, so the things that got accelerated in this crisis, are here to stay. things like the digitization of society, and what i would call contactless consumerism, all the things that changed about the way we consume goods and services are probably here to stay and then there's the whole trend of what we call dedenseification, the movement out of highly populated areas into spread out areas that drives things like autos, drives things like home building and all the material sectors, and then there's the expectation of infrastructure spending, but it's a blue wave infrastructure spending so that's going to drive clean energy it's going to drive jobs in those sectors and it's going to
drive just the growth overall of different parts of the economy, middle class, lower class, and hopefully the labor market as well. >> i know you say the investing horizon that people should look at is 900 days, as opposed to 90 days we are expecting a lot of big developments, trillions of dollars in fiscal stimulus, and also potentially an infrastructure deal. how do people play the first 90, 100 days. >> yeah, fair question, and the reason i want people to focus on that longer term is because you can get caught up in emotions in the short-term in this shorter term period, that 90 to 100 day period, what it's going to do or what we would expect it to do is just really intensify the trends that were already in place starting back in november and that was the cyclical trade. that was the reopen trade. that was the expectation that the economy at some point in the near future can start to stand on its own 2 feet, and we don't have to rely as much on policy but this first 90 to 100 days is really to make sure that we can still bridge that gap for consumers, keeping consumers sol
vent, keeping small businesses k kol solvent, and making sure the economy can get to the other side of this, particularly in the labor market watching that from a market perspective, we would still expect things like small caps to do well here we expect international equities to do well here, asian em to do well here, and sectors like industrials, materials, consumer discretionary, particularly in the spots that haven't been able to pick up yet, and looking at things like real estate and commodities that would participate in a reinflation trade. >> the performance of the russell 2000 backing up your thesis this year liz young from b and y melon, thanks again. >> scientists arriving in china to investigate the origins of the covid-19 outbreak. eunice yoon is standing by in beijing with the latest. and ceo jack dorsey breaking his silence on the decision to ban donald trump from the
without breaking a sweat. now that's simple, easy, awesome. xfinity makes moving easy. go online to transfer your services in about a minute. get started today. "worldwide exchange. an international team of scientists led by the world health organization is on the ground in china as they work to investigate the origins of the covid-19 outbreak that began in the city of wuhan. eunice yoon joins us now from
beijing with much more on these latest developments. what are you hearing and seeing there? >> reporter: well, finally, after months of negotiations, the team from the w.h.o. has arrived in wuhan so most of the team is currently in quarantine for the next two weeks. two of the members were blocked from getting on the plane in singapore because they failed the covid test it's still unclear as to whether or not they're going to be able to join their 13 other colleagues of epidemiologists, livestock specialists, as well as other biologists, but if they do, then the team's mission is going to be ultimately to try to find out how the virus spread to humans so their plan at this point is once they're out of quarantine, to interview a lot of locals so that could be early victims, people who work at the hospitals, and then also to visit various sites, which would include the wet market, which is ultimately the place in the very
early days where we saw the most cases identified now, the mission has said that they, over the next two weeks, while they're in quarantine, are going to be coordinating with their chinese counter parts and other researchers in order to try to make this plan come into a reality. they have also said that this is not a political mission, that it's based on science, and as you can imagine, frank, it's really quite complicated to be able to toe through all the politics of this since china has said many times that it is not necessarily to blame for the origin of this virus they have been pointing their finger at a lot of other locations around the world as to the start of this virus and the pandemic. >> i think a lot of finger pointing when it comes to this virus period but i want to recall to one of your stories that you did, i believe it was a week ago or maybe earlier this week, the days start to jumble together, a lack of transparency when it comes to the vaccine
rollout, the investigators, how much did they expect to get, and how much do they really expect to learn >> reporter: well, it's really difficult to say ultimately they have to be invited into the country, so there's been a lot of problems with that because, you know, it's already been over a year, so there's been an argument that a lot of evidence would be cold at this point. but yeah, they have to coordinate with their chinese researchers, but the w.h.o. did say that ultimately you shouldn't expect conclusive answers from this one visit, which is only going to be about two weeks at the end of the day. and instead, their hope is to be able to come up with a good plan or a set of guidelines in which the world would be able to follow, ultimately >> let's really hope so. i think we're all hoping for an end to this pandemic permanently, if that's even possible eunice yoon, live in beijing, thank you very much. still on deck, more on the ongoing covid-19 outbreak.
we're talking to one u.k. vaccine recipient about the controversial decision by leaders there to delay that second round of jabs stay with us much more coming up. today's big number, $80 billion. that's how much u.s. companies have already spent bidding on wireless spectrum licenses to build out their 5g networks, according to the fcc peedo and at&t are exct t spend the most during the option ♪♪ hey you, yeah you. i opened a sofi money account and it was the first time that i realized i could be earning interest back on my money. i just discovered sofi, and i'm an investor with a diversified portfolio.
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the united kingdom has seen the most deaths from covid in all of europe, and has decided to take a really controversial approach to it vaccine rollout. rather than giving the second dose of the vaccine to recipients 21 days after the first dose as recommended, the u.k. is delaying it up to 12 weeks while supplies are low, saying that move could reduce hospitalizations and deaths. let's bring in dr., he received his first dose of the pfizer biontech vaccine in december, and. thank for being here. >> good morning, frank, thank you for having me. >> we have to ask you, you have gone through this entire process with the pfizer biontech vaccine. you have gotten your first dose, now you have gotten your second dose how do you feel, and what has the experience been like for you? >> i have had my second dose,
and i have had absolutely no complications at all i have had no adverse effects. i feel very fine some of my friends who got the second dose felt a bit unwell after the second dose, in fact, they had minor adverse effects like headaches, feeling unwell for a day or so, but nothing serious, and i'm feeling fine, absolutely >> we're looking at some pictures of you actually getting your vaccine i believe from your twitter account. it's great that you feel great about it, what do you think about the fact that officials there in the u.k., they're going to actually delay that second dose for many people, instead of doing it in 21 days as recommended, they're going to do it in 12 weeks, how do you -- really quick, how does that impact the efficacy in your mind >> so i think when i first heard about this, the weekend before i was going to receive my second jab, i felt a bit disappointed and on reflection, i felt perhaps it was a good move i actually went for my second appointment half expecting to be
turned away. but they didn't have any other patients booked that day or any other people booked that day, so they gave me the second dose, which is fine but having looked at it in more detail, i think this is a very pragmatic decision, and this is actually, i would say, a very smart move considering the fact that we do not have enough vaccines for everybody at the moment. as you can imagine, everybody in the world wants the vaccine, and there is a limited supply, and the u.k. has a certain number of doses given to them, and to make the best use of that, i think it's a very good move to delay the second dose. also, there's a special situation in the u.k the end of last month, there was a sudden surge in the number of covid cases, and therefore they felt it would be safer to actually delay the second dose for everybody. >> but dr. zanbar, let's jump
into this. you're a medical professional, and basically the u.k. health officials are saying they're not going to follow the directions on the prescription that they have been given. i mean, it's supposed to be a certain amount of days, and they're saying no, it's going to be a different amount of days. i don't think you would recommend that to many of your other patients, but you're saying you think it's okay for an entire country. >> it's okay, because in a pandemic it's not about the individuals, it's about the population, and actually they have looked at the data as well. for example, if you look at the pfizer studies, after the first dose, between the two doses, there was a certain proportion of patients who got covid, but if you look at the data, most of the failures happened in the first one week after the first dose and that is the time when the vaccine is not supposed to be effective, and the immunity is not supposed to kick in. if you look at the number of patients or number of people who got covid between 15 and 21 days or 15 and 28 days after the
first dose, that number is pretty low, so you can actually say that there is a 90% efficacy even after the first dose, and that's what they have done and i think they -- >> wait, 90% efficacy after just one dose. >> 15 days after the first dose. >> okay. if you remove the people who have infections between day one and 15 after the first dose, if you remove those people, yes, there is a 90% efficacy, and the majority of infections that happened immediately after the first dose, they are not -- you wouldn't expect the vaccine to benefit them so that was the logic, and that is a bit reassuring to people who feel they are missing out on the second dose. but at the same time. >> unfortunately we have to wrap it up there, but very interesting numbers from you that after 15 days, the first days has 90% efficacy. very interesting stuff there dr. zanbar, we appreciate your
time thank you for your expertise. the house impeaching president trump for a second tim time. and a pair of high profile, first on cnbc interviews, at 7:00 a.m., blackrock chairman and ceo larry fink, joins us to discuss earnings, and delta air lines ceo, ed bastian, discussing the fourth quarter results and cash burn. we're back in a moment
good morning, it's almost half past the hour wherever in the world you are. president trump impeached for a second time. now, facing a trial in the senate for inciting last week's deadly capitol hill riot johnson & johnson giving a promising update on its one shot vaccine, new numbers showing a surge in new york city rentals as people take advantage of lower prices and some big deals. we have all those stories and much for you it's thursday, january 14th, 2021, you are watching "worldwide exchange" right here on cnbc. ♪ welcome back, i'm frank holland in for big papa, brian sullivan, here is how your money and investments look right now on this thursday only two weeks into january, and we're only halfway through the 5:00 a.m. hour let's take a look at the stocks futures first. stock futures, as you can see right now at this hour, they are up slightly, a little bit mixed
with the nasdaq down slightly. stocks, they have really struggled for direction this week after notching records last week, stimulus prospects, political turmoil, and rising covid cases weigh on investors the dow, s&p, and nasdaq are all up roughly between 1 1/2 and 2%. we have to talk about the russell 2000, it continues to outperform, up nearly 7% in the same period. also we have to check the price on bitcoin, we're always watching those bitcoin prices. right now, bitcoin sits at about $38,000, this after holding in the 34, $35,000 range in recent days and among this morning's stock movers, we want to start off looking at shares of gamestop. they are trading higher again after soaring more than 60% yesterday in an apparent short squeeze. the stock jumped nearly 94% at one point in yesterday's session. two weeks ago, short interest on the video game retailers stock exceeded the number of shares outstanding. a lot of people betting against the video game retailers
and with other top stories, bertha coombs is back with those. good morning again, bertha. >> good morning, frank we have positive news on the fight against coronavirus from johnson & johnson, which says an early study shows its one shot vaccine is safe and generates promising immune response. a lot of folks watching for this it's certainly easier to administer one shot, the company expected to release results from the larger stage three trial later this month and parler heads to court today to try to get amazon to reverse its shutout. a seattle federal court will hear the social media's complaint against amazon which argues that the tech giant's move to cut off its services was a politically motivated act, and violated antitrust rules amazon argues that parler did not honor its contract. >> and also in social media, twitter ceo jack dorsey speaking out about his company's move to ban president trump for life if
a tweet storm of 30 tweets dorsey calling it the right decision but he also acknowledges that the action was divisive and sets a precedent that he calls dangerous to a free and open global internet. dorsey says the internet should not be controlled by any one person or company. boy, that sums up the debate in a nutshell, frank. something people are going to be talking about for a while, and we'll see if regulators really weigh in. >> i think they're also going to be doing it on twitter, so it's probably good for dorsey's business as well bertha, thank you again. now to multiple stories developing out of washington this morning, the house voting late yesterday to impeach president trump for inciting last week's deadly capitol hill riot eamon javers joins us with the very latest in washington. good morning, eamon. >> good morning to you, frank, the president becomes the first president ever to become impeached twice. donald trump going down in the history books in that regard
the vote in the house of representatives was 232 to 197 significant republican support remains for this president even after that violent insurrection we saw the president incite on capitol hill here's the vote break down you take a look, and you see 222 democrats, all of them voting to impeach the president. on the republican side, you see a small break away contingent, 10 republicans voting yes, 197 republicans voting no. take a look at the ten republicans led by congresswoman liz cheney, a member of house republican leadership. these are the republicans who said they simply could not go along with what the president was proposing and vote not to impeach him. so where does it all go from here, well, mitch mcconnell, the senate republican leader and the leader of the senate in the majority for the next couple of days said he's not going to move very quickly in terms of bringing a trial to the floor of the senate his statement is given the rules, procedures, and senate
precedence that govern presidential impeachment trials there is simply no chance that a fair or serious trial can conclude before president-elect biden is sworn in next week. so frank, that gives us the prospect of an impeachment trial happening after an inauguration, president biden trying to get his government up and running as congress is trying to deal with the legacy of donald trump in an impeachment trial. frank. >> point out the ten republicans that broke rank but the majority voting not to impeach the president, what's the mood among republicans amid these proceedings with just days left in the trump administration? >> look, you know, they were torn and the republican conference is really split you saw at least one republican put out a statement saying he's going to vote not to impeach the president of the united states but he worries that his decision could be wrong he worries about new information that could come out in the coming days and weeks that would make his vote clearly on the wrong side of history, so there was some real agonizing among republicans. but there's also some real
defiance among a hard core group of trump supporters within that republican conference who feel the democrats were simply out of control here this was a snap impeachment, they said, and this was not the appropriate way to handle the president in his final days in office interesting that some people are saying it's a snap impeachment, and other republicans are saying democrats have been out for the president since the very first day, so two different takes there. eamon, we want to pifvot to the other story to watch, president-elect biden is expected to outline his covid-19 relief plan. what do we know already? >> what we know is brian dees, the president-elect's pick for national economic council director said yesterday that they're going to focus on the immediate short-term harm first before what he called the rescue package, before they do what he called a broader relief package, and in the rescue package, he's talking about things like the $2,000 checks to support individuals that didn't get passed in the last relief bill, and other short-term assistance,
and then he has in mind, a broader overall package for the economy, so it's not clear what we're going to see the president-elect announcing today in terms of overall stimulus efforts but we do expect to hear from the president-elect joe biden in the 7:00 p.m. hour this evening, laying out his economic and covid vision >> eamon, fwgreat reporting as always i'm a little disappointed your dog didn't chime in today, i'm kind of missing that. >> she's behaving herself this morning. >> eamon javers in d.c., thank you very much. turning back to the markets, eight trading days into the year, we may be seeing the beginning of the rotation, with growth stocks giving away to value names, the s&p value etf, it's up 3%, while the ivw, the growth etf is flat, within growth of tech stocks like the faangs, they're negative for the year let's talk about that and other issues facing the tech sector,
joel, head of media, thanks for being here. >> thanks for having me. >> let's talk about the potential for the great row foun rotation and after we saw from affirm yesterday, square, tesla's market cap now, when you're talking big tech, what stocks are you actually talking about >> yeah, i mean, clearly the narrative has shifted, i mean, you just mentioned some of the faangs are down on the year and pull back the charts farther facebook, the stock has been dead money since early august, and really there's just been a really lack of incremental buying in large cap growth, that have powered the market higher in the past four to five years i think of late, you highlighted the great rotation i think we're in the early innings, just really given the extreme discount of value stocks toward growth. tech is a rate sensitive group of names they benefitted from the plunge in rates over the last kind of decade, and obviously i think they're going to see some
multiple come ppression as we se upward pressure on rates, by a subsiding pandemic in 2021. >> early innings, that's a baseball reference for international viewers. big media names, like facebook and twitter, they are behind in the count. how do you trade those with head winds they are facing, potential for regulation, the idea that people are turned off by the idea of these companies having so much influence over our lives? >> exactly, and i think they're both going to be dead money in the near term. we have seen, you know, a mix of hedge fund clients, constitutional guys, trimming their exposure across social media names. clearly censorship is becoming a bigger issue we know what's going on in the u.s., and clearly something had to be done in the near term to kind of limit the violence that's been going on then, you know, germany's merkel came out earlier in the week and is questioning who are the tech ceos to kind of decide what should be deemed free speech and
what needs to be kind f cof cap but at the end of the day, there's going to be backlash for policies we're seeing, and for a name like twitter, it's going to impact key metrics, monetized daily active use skrs and faceb as well, daily active users are the holy grail, and that's how the stock trades we have been seeing a steady decline in north america from that point of view from facebook, and i think this kind of just leads to another kind of regulatory overhang, censorship debate, and i think there's just better pockets of the market right now than large cap tech, and one group that i love, you mentioned square, i think you want to have exposure to square, p paypal, disruptive tech, and semiconductors, the best group of stocks to own in 2021 >> i was going to ask you about that, i might quit facebook, twitter, but i'm not quitting my cell phone, big tv, chip ndemand is going to stay up. what's your take on chip, and
intel. >> intel is up 2% this morning, and i saw one upgrade from a competitor of ours, and clearly intel is trading at a massive discount to peers, and rightfully so. it's been a train wreck to say the least, and everybody knew that bob swan was the wrong guy at the wrong time. he's a finance guy right at the time they had some missteps on the ten nan meter side, they needed a guy with architecture background, and this is where gelsinger makes sense. time will tell if it's too late. they're already two years plus behind amd i think the move we saw yesterday, today, is a little meaner version between some of the other growth names in the space that have massively outperformed but it's tough to get too excited on a name like intel just because of how far they are behind some of the market leaders, as i said,
nvidia, they're going to have to rely on foundry help as well to boost their performance on leading edge >> before we let you go. i want to ask you one quick question, bullish or bearish on cyber security >> my number one pick for the year, i think with the solar winds attack, we really came to reveal itself in december, biden can come in and change the scope and scale of u.s. cyber security on a massive level. within your portfolio, you want to have exposure to security you have names like telos on the government side. sale point identity and tenable, as a as avulnerability managemet play >> we appreciate it. >> take care. has the death of new york city been greatly exaggerated. "worldwide exchange" is into bk ghin moment.
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. it is 5:45 in the morning on the u.s. east coast. this is a live look at new york city's times square. kind of the heart of manhattan always lit up. and speaking of new york city, it's battered real estate market seeing signs of life, showing big gains last month robert frank, he joins us now with much more on that good morning, robert. >> good morning, frank
good to see you. new rentals in manhattan nearly doubling in december that's the biggest year over year increase in almost a decade the reason is lower rent prices, the median effective rent. that's what people pay after all the discounts. those are down 17%, an average of $2,800 a month. progressing right now, it's a combination of people returning to new york after being away, new renters moving to the city from the suburbs and other places for the first time, and locals who are using all of these lower prices to upgrade and get more space, but this is going to be a very long road to recovery for manhattan real estate there are nearly 14,000 unrented apartments that is close to the record, and since many holdings are holding back listings to make the market look better, the real number of rented apartments, shadow inventory, that total number is still likely over 20,000 now, the high end here really driving much of the growth with rentals of three bedrooms, up
170% while studios and lower priced one bedrooms, those saw the biggest price drops of 19% so that kind of mirrors what's happening in the broader economy, frank, where the high end has been relatively unscathed by this crisis, where the lower entry level has suffered the worst >> robert, i think this is almost unheard of. i mean, it sounds like you're saying it's unheard of more manhattan, prices down by almost 20%. crazy stuff. that's rentals, what's happening in manhattan with the apartment sales? >> yeah, the price action on the apartment sales has not been as dramatic, and therefore we're not seeing the same level of activity, so rentals are 2/3 of the market it's the bulk of the market. sales are a third. and prices on the sales end are only down about 5 to 10% as a result, 4th quarter sales were still down 20% year over year now, one glimmer of hope on the sales side, we did see december
sales contract, the first month of positive sales contract since the pandemic in march, so we could actually get a first quarter of sales either flat or maybe even slightly higher than last year if we get strength again, we've got to see prices on the sales side come down as much as they have on the rental side. >> interesting stuff we talk about doing the frank and frank show this might be the closest we get. i don't know if people are ready for it. >> i love it i'm ready. robert franks with the latest on manhattan. piper sandler's craig johnson lays out why a potential pull back could help fuel the markets further. if you haven't subscribed to our podcast, you should do it, "worldwide exchange" every day in audio form, if you miss brian sullivan, check us out on spotify, and other podcast apps, and we will be right back.
exchange." we're taking a live look at our nation's capitol the white house right here, as we monitor the final days of the trump administration, and the president faces a historic second impeachment all right. welcome back stocks losing just a bit of steam this week after kicking off 2021 by keeping that 2020 rally going. your next guest says while a pull back may be in the cards for the market, it could provide more momentum, and reiterating his price target for the s&p of 4255 craig johnson is the chief market technician for piper sandler, thanks for being here. >> thanks for having me on good morning. >> always a pleasure to have crow on. so technically speaking, what are the charts telling you right now about growth versus value, where should investors put their money? >> you have a changing of the guard happening not only in washington do we have a changing of the guard with president trump leaving and president-elect joe biden going to be taking over here soon but you're also seeing a changing of the guard in the market right now. you're seeing that the value stocks are starting to
outperform growth. you're starting to see that small cap has been outperforming large cap and starting to see merging markets are outperforming the s&p, and also you're continuing to see global equity the outperforming the s&p 500 at this point in time, and i think we've got to pay a lot of attention to this because a lot of investors have been pulling the same play book out when you had this declining interest rate environment, frank, where you can see we can pay whatever multiple we want for the high-tech growth stocks and at that point in time, you could do that, and now rates are starting to rise, and we think rates are going to continue to rise as you go through 2021, and we think you could see rates at the end of the year, go to 150 to 175 o the ten-year, which i think is going to create multiple compression, and lead to a changing of the guard, and lead to a setback and correction. i would add one other thing too, if you go back and look at any sort of first year of a new presidential cycle, you have
typically seen about a 5.8% return in a given year but also see a draw down, a little over 16% sometime during that year. that's the correction that we're looking for that we think ultimately should be bought. >> craig, so the russell so far has been the best performing index out of all of them, way up over the other ones. we showed a chart a second ago showing the russell growth outperforming the russell value stocks how would you explain that if you think that people should rotate their portfolio into value >> yeah, you explain that, i think, this way, you're seeing money coming out of these large cap stocks, they're coming down cap but also if you think about what comprises the russell 2000, it's dominated by the financial stocks, and as we're starting to see a steepening of the curve, the long end is backing up, you're actually seeing that two-to-ten spread widen, which lifts all boats inside the financial sector, and that's really due to the composition of the index driving the small cap stockings at this point in time. >> craig, you sent us a note, and you pointed out that the utilities, communication staples
and communication services are trading below their 50-day average. you mentioned that rising interest rate situation, how are they impacted by this technically? do you see them breaking out or staying below that average >> i think they're going to stay below the average, and you know, we are actually under weight staples, we're under weight, the utility sector, and also energy at this point. and we continue to think that based upon the relative strength work that we do here at piper sandler that we want to stay under weight those areas, and we want to be overweight right now in this order, tech, industrials and the consumer cyclicals financials are pecking up in performance, and i think you're going to get an opportunity to buy some of these names but it's a little early to buy them yet those are the three sectors we're overweight and under weight, and again, i think you're going to get this healthy correction the breadth of us coming off the march lows is nothing but amazing, you're getting to the point in time that you're at historical extremes, sentiment
measures, breath measures and you come back to the warren buffet line, you got to be fearful when people are greedy, and greedy when people are fearful. we're not at the fearful point when i look at sentiment. >> i saw wall street, and i thought greed was good on a serious note, we have to touch on one more sector, energy, what's your take on that, performing very well this year we saw wti hitting a recent high, what's your take >> i got to tell you, i have been doing calls since this publication came out yesterday most investors are not in energy there's nobody there it's a very small part of the overall s&p 500 right now. a lot of investors are just starting to think about rotating, and selling some of the tech win skners and buying e of the names in the industrials but they're not close to the energy names yet i'm seeing a lot of amazing looking bottoms, stocks like denver we have called out in reports and baker hughes, classic double bottoms, higher
lows all over the place, i think people need to put their big toe in the water withenergy names because the charts look amazing and it's not just one stock in there. i've got at least 15 or 16 stocks that look terrific on the chart basis. >> craig, we're going to have to wrap it up there we appreciate your -- actually, i'm doing it too early we've got more time. i'm sorry. i'm doing bad math on my end thanks for your patience there you want to get into more of the energy names >> yeah, so if you look at some of those energy names, you can also look at some of the smaller cap names like helix looks good, and i think what you have to avoid is avoided pipelines if you're going to also look at the rotation happening in the market, in addition to energy, frank, we've also got to talk about basic materials. if you started looking at some of these copper producers, southern copper, freeport, some of these names, they look like growth stocks in tech land just a few years ago, and to me i look at the charts and there's a long way to go, especially on a monthly basis. changing of the guard, rotation,
it's underway, it's happening. in that kind of rotation, you usually get a setback or a stumble that occurs, and that's wr where i think we're going to get a great buying opportunity in the first or second quarter of the year. >> thanks for bringing the a game at 00 a5:.m sorry to cut you off early that does it for us. "squawk box" is coming up next we want both - we want a hybrid. so do banks. that's why they're going hybrid with ibm. a hybrid cloud approach helps them personalize experiences with watson ai while helping keep data secure. ♪ ♪ ♪ from banking to manufacturing, businesses are going with a smarter hybrid cloud, using the tools, platform and expertise of ibm. ♪ ♪ ♪
. good morning, president trump impeached for a second time, now facing a trial in the senate for inciting last week's deadly capitol hill riot we'll tell you what it could mean for president-elect biden's legislative agenda. new data shows that j and j's vaccine candidate is safe and generates a positive immune response now we wait for phrase 3 results. and twitter ceo jack dorsey
breaking his silence about the ban of president trump we'll talk about the future of social media it's thursday, january 14th, 2021, and "squawk box" begins right now. good morning, everybody. welcome to "squawk box." this is cnbc i'm becky quick along with joe kernen and andrew ross sorkin. and we're watching the u.s. equity futures this morning. things are indicated a little higher it was a mixed day yesterday the dow was down but only by about 8 points, and really, the markets have been kind of treading water we hit new highs last week, and we have been treading water, watching all of these events unfold in washington the major averages are a half percent off their all time highs, the dow is a gain of 103 points, and this morning, the futures are indicated up by 94 points, that tells you how closely these markets are kind