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tv   Closing Bell  CNBC  October 6, 2021 3:00pm-5:00pm EDT

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markets. the dow can't hold onto its gains. it was briefly positive. it's down 11 points. nasdaq's up 30 and there you see that was after those debt ceiling breakthrough announcements earlier this hour. >> yeah. so take them for what they're worth. apparently it just kind of kicks the can down december so we have a couple more months to talk about it "power lunch" is over. "closing bell" starts right now. ♪ >> welcome to the "closing bell," everyone. i'm wilfred frost. stocks making a major comeback, climbing all the way back and turning positive as we head into the final hour of trade. >> welcome, everyone, i'm sara eisen. wall street keeping a close eye on developments out of washington president biden meeting with business leaders about the debt ceiling. and there's late-breaking news here that congressional republicans will propose a deal. much more on that in just a moment the energy market also remains top of mind. oil and natural gas pull back from multi-year highs. and crypto has been a steady
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bright spot in this volatile market bitcoin now well above $50,000, adding about 7%. nasdaq is in the lead. >> coming up on the show today, travel stocks pulling back as outlook for that sector remains cloudy the ceo of windham hotels will tell us about it plus, it's pullback in oil that we've seen of late today, quite the opposite move that we've seen of late but today it is pulling back slightly, and gas is pulling back a lot helima croft from rbc will join us to discuss where next for that sector. let's focus in on the big stories this hour. mike santoli tracking the choppy market action. and the debt ceiling drama start us off with another wild session now. we've seen five days in a row of 1% moves in either direction >> and while not a 1% move
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today, we are more than 1% off the morning lows in the s&p 500 even further off the overnight lows it still represents a bit of an indecisive market. we're under some stress. the technical outlook has become just a little bit slippery that far shows you why there's not that much conviction on either side. but those headlines about a potential deal potentially to extend the debt ceiling shows you the removal of one possible negative is enough to kind of relieve the pressure in the short term it doesn't necessarily look like a brilliant uptrend anymore, but it is in the context of a broader reset that's been going on for about five weeks. i wanted to take a look at a slightly long-term view of the s&p to its 100-day average we are right now almost exactly at the 100-day average so, i wanted to bring attention to what happened here last october where we kind of scissored right around it, kind of chopped in that mode, near that level that was after, of course, an early september peak, a decline, a failed bounce, and then we did finally come out of that right
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before the election. so here it's less dramatic but you've had a smaller move to the downside from an early september peak, and also this kind of fleeting bounce. and now we're chopping around the 100-day. we don't have quite the same kind of defined potential trigger as we did with the election last year also we were earlier in the cycle, and arguably sentiment got a lot more nasty in that correction we were down 10% on the s&p briefly. i just want to point out, though, it's not unusual for the market to waffle around even if we haven't yet seen the final downside of this move. take a look at a picture of sentiment, though. it is pretty dramatic. the investment advisers in the weekly poll, this is bulls minus bears. it goes all the way back to something we haven't seen since, you know, right around the correction of last year. in fact, in april of last year was the last time there were as few bulls as there are right now. so we've had the mindset somewhat reset a little bit to the downside
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that's a contrarian positive things moving in that direction of saying people have maybe given up to a degree on the immediate bull case right now, guys >> and if you look at what's working here, it's defensive utilities and staples are still leading the market if you think about the why, there's no shortage of excuses, right? you've now got this energy crunch on top of already supply chain inflation in the economy happening at the same time as potentially fiscal and monetary tightening what's happening to economic and earnings outlooks? are they coming down >> well, the economic outlook has absolutely been racheted down right now the prevailing models are showing less than 2% growth for the third quarter which of course is over and earnings are being trimmed i think you have a much more grounded earnings expectations going into this. there's no doubt it's going to be very noisy. what's interesting is in the morning we also did get a little bit of pressure taken off because that natural gas move that went just completely
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vertical in europe, and also here did reverse a little bit. i'm not going to call the top in these crazy commodity moves. but any time these charts are being shared by absolutely everybody, just like lumber was a few months ago does it seem like we talk enough about lumber or too much or too little that's where we are right now with a lot of these charts >> we did talk a lot about lumber, and then it came crashing down. >> the gas stuff is completely nuts >> what was that like a 40% move overnight? >> it's muted relative to the prices across the pond anyway, let's pivot now and get to the drama in washington surrounding the debt ceiling yun li has the latest for us what can you tell us >> republicans are offering democrats a little breathing room on the debt ceiling but not for long and at a price. senator minority leader mitch mcconnell said that he would support a short-term increase in the debt limit to last into
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december that will give democrats time to pass a longer-term extension through the reconciliation process without gop votes. now, the important thing to pay attention to here is that this plan would require democrats to commit to a specific number for the national debt. the bipartisan policy center estimates it would take about a trillion in additional borrowing to get us through the end of the year and 2.4 trillion to make it into december 2022 in a statement, mcconnell said, this deal would moot democrats' excuses about the time crunch they created by refusing to use the reconciliation process now, it's unclear how democrats feel about this offer. we've seen them huddling on the senate floor, presumably to talk about the deal remember that they want to suspend the debt ceiling, not just raise it. and they are supposed to start voting on a bill soon to do just that >> ylan, obviously this announcement or story had a positive effect on the market. is this a clever bit of game-playing from senator mitch mcconnell to kind of force
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democrats to do something even if it's not all that they had hoped for? >> well, you know what congress is really good at, wolf? it's getting them to kick the can down the road. this just moves all the deadlines really into december where we will be back in the same position of facing another potential debt ceiling drama as well as a government shutdown. we are still going through that process right now. we are now looking forward to another fiscal cliff potentially in december. so we'll see if there's enough in this offer for democrats to sign onto it >> the old kick the can down the road strategy. ylan, thank you. meantime, president biden meeting with big-name business leaders today to discuss just this, what would happen if a deal isn't reached on the debt limit. kayla tausche with the latest on the meeting. >> reporter: importantly that meeting took place before this latest offer from mcconnell surfaced and the optimal path for the administration that they've said for the last several weeks would be a longer-term suspension that wouldn't risk a government shutdown, that are fiscal cliff
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that ylan was just talking about or one that would leave republicans off the hook but that's not part of what mcconnell is offering here and he's putting the ball squarely back in the white house's court to take one of the offers or see how close they want to get to try to secure more gop support for its position, which sources say currently has support from four gop senators, or at least the administration believes that it does now, today, the white house enlisted business leaders to join pentagon and treasury chiefs in its coordinated pressure campaign calling attention to the catastrophic consequences if the u.s. neared defaulting citi group said getting so close to the edge was playing with fire and among the consequences that executives raised, troops wouldn't get paid, social security payments would lapse, borrowing costs for consumers and businesses would rise, and the stock market would fall. administration sources had suggested that a steeper market reaction could bring more republicans to the table for its
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optimal path, noting that 17% stock market drop is what led to a 2011 debt limit compromise we'll hear from press secretary jen psaki later on this hour to see how the white house is posturing in the wake of that news >> kayla, thank you. >> it's kind of an odd setting >> were they raising their hand? >> it was like a tv set for a classroom. it was kind of odd yellen and biden were the teachers and the kids were the ceos >> i did see them on stage after the break, playing the squid game evercore joins us for the latest installment with the word on the street with why netflix's new viral show could drive a lot more for the stock dow negative about seven points coming off the highs we'll be right back.
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did strong job creation kick back into gear in september or did covid and worker shortage depress payroll growth again the numbers and instant reaction fr
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baaam. internet that doesn't miss a beat. that's cute, but my internet streams to my ride. adorable, but does yours block malware? nope. -it crushes it. pshh, mine's so fast, no one can catch me. big whoop! mine gives me a 4k streaming box. -for free! that's because you all have the same internet. xfinity xfi. so powerful, it keeps one-upping itself. can your internet do that? all week long we've been taking a deep dive here on "closing bell" into sectors to find hidden opportunities for your portfolio we'll get the word on the street on the best internet plays just basically to talk about squid games, right, mark i have two episodes left it's totally gruesome and amazing.
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and i get why it's the number one show in, what, 90 different countries right now? netflix is trading at a record high has it seen the upside from this or is there more to go >> it has sucked a lot of people in there's been a lot of writing about this show. it's certainly embraced a lot of people i'm going to stop. i think the bigger point of netflix is that they have like 18 billion shots on goal did you know about "bridgerton" until that splashed across people's screens a year ago? and then there was the chess seers that they had last year. >> i watched all of them >> what netflix has is the ability to take these shows and kind of get them into the zeitgeist across multiple languages. and its content is little on the edgier side. you would not see this on disney plus i think there's a little bit more upside. this is not my top pick, though. it's our number three pick but i think it's got a little
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more upside. and expect more squid games from netflix. next year and the year after that from all different parts of the world, that's the netflix magic. >> when i saw a video of my son at soccer yesterday playing red light green, i was pretty freaked out. wilfred hasn't seen it, i'm not going to give away any spoilers. but that game you'll never look at the same way. the international strategy is what stands out here anybody else doing this? it's a korean show there's a few of those that really have made waves in countries all around the globe >> australian shows, too "secret city." >> is anyone else doing this besides netflix? and what is the financial upside of that model of taking the international show and making it so broad in its appeal >> well, there's a couple of key things here. one is that it tells you that at least some content really is global in nature u.s. content, there's been lots
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of u.s. content that's been that way but not so much international content. but if you sub it and dub it in multiple languages, you can make these things global. and it's wonderful for the p&l because there are fixed costs associated with squid games and money heist and others but it costs x amount to produce it, but if you can show that to hundreds of millions of people, not just in the home country, you're going to get really nice margins off that show. if you can source content globally, and, by the way, this is a great country for producing content. it's also a very expensive country for producing content. so if you can source it from international markets and spread it globally, it does wonders for the business model and allows margins to rise. >> sara's obsession for the squid game goes to your number three pick what's number two? >> number two is amazon. and i say that, i still think we need what i call a clearing event on the stock we've been warning people i think that margins are a little
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too high on the street amazon is in the midst of a very aggressive investment cycle when it comes to logistics fulfillment. they're going one day globally they're going super sameday. five-hour window deliveries. it's going to unlock a lot more consumer retail spend, and it's going to unlock the stock too. i think we're going to get a warning on the september quarter when they print the earnings they are going to warn people about future margins, and then i think the stock will have a real nice clearing and allows the stock to take off. >> and number one? >> uber. uber we just had the unlock moment when they told us that we're finally going to reach profitability a little earlier than expected in the september quarter. demand seems to be coming back, knock on wood that we don't have something beyond worse than delta. if covid fears and, you know, reality start to abate somewhat and we like other people like me start coming back into their offices, commute comes back and
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then eventually business travel, there's no question that demand is starting to build back up to me uber's just starting to break out. i think if you watch it break through 50, i think the stock doesn't go to 60, i think it goes 70 or higher. i think there is a lot of upside to uber shares they are our top pick. >> we can tell you're back in the office because you don't have the lovely rich oak mahogany panelling anymore mark, thank you. good to see you as always. still to come, the energy sector lagging today after a furious rally to start the month. helima croft will join us and tell us where she thinks oil prices could be heading next and after the break signs of strength in manhattan's commercial real estate market. convalesc kristina partsinevelos is live there. >> well, should the high
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occupancy rate of this building be a barometer for all the office market in manhattan i'll have the sw oth aanerf ats well as some wreaths that should be on your radar coming up right after the break. it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. only comcast business' secure network solutions give you the power of sd-wan and advanced security integrated on our activecore platform so you can control your network from anywhere, anytime. it's network management redefined. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities.
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manhattan's commercial real estate market showing signs of life after getting battered during the pandemic. but the city's business buildings aren't out of the woods just yet kristina partsinevelos has that story for us hi, kristina >> hi. well, the real estate market is eagerly welcoming back a burst of activity. it's actually the best quarter since 2019 in new york city, which is why i just happen to be standing 92 floors above manhattan at the summit at one vanderbilt which actually opens on october 21st to the public. but if we break down the numbers, operating volume, or i should say leasing volume is up 51% compared to last year at this time. however, average commercial rent has been dropping. nowhere near the levels that we saw 18 months after the
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recession in 2001 as well as 18 months after the great financial crisis but a major concern in this market behind me is oversupply vacant buildings and a bunch of new buildings set to hit the market soon. listen in. >> 25 million square feet is the largest amount of new construction, slash, major renovations that we've seen in a three-year period since the 1980s. >> because of that oversupply, that's why analysts recently said that they actually prefer property in the west coast as well as in boston. we take a look at boston properties, that read has outperformed the s&p 500 just over the last six months and investors aren't necessarily convinced just yet on the market we take a look at a few of these companies. that owns this building one vanderbilt we can see just over the past
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six months, all are trending downwards and are not outperforming the s&p 500. so, wolf, i leave you with this spectacular view not for the feint of heart, yes, many of the buildings behind me sit vacant, but the data shows that maybe, just maybe the office market over here is slowly turning a corner >> i think i would be feint of heart to be permanently up there. i'm fine with the view via the camera but i'm not sure i'd want to be based up there every day to work but, anyway, kristina, thank you. >> that's a killer view. >> that's central park >> people love that. >> i did spot that kristina, thank you. coming up, we will head out to the active passive investor summit for a rare interview with trian ceo ed garden and how shareholders are pushing for esg change
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10-year hovering around 152. they've generally been marching higher although that's stalled in the last few sessions. 1.52 on the 10-year. we'll be right back. isn't it a paradox? that the love for this world that gets us out in it sometimes leaves behind the things that can harm it? but now, flight by flight, we can make a difference. because delta has committed to becoming the world's first carbon-neutral airline on a global basis. we believe you shouldn't have to choose
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[swords clashing] - had enough? - no... arthritis. here. new aspercreme arthritis. full prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme. 32 minutes left to go in the session. let's check in on some individual market movers for you. shares of moderna are falling hard today after sweden's public health agency said it's pausing moderna vaccines due to increased risks of cardiac
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problem in this age group. they will instead be distributing the pfizer vaccine. moderna stock has been under pressure since merck's antiviral treatment news last week shares of ginko bioworks are shrinking. scorpion calls them, quote, a colossal scam and house of cards, claiming its deferred revenue comes from related party customers that it controls and influences the ceo saying i'd be waiting for gingko to show up. it's also interesting to note that kathy woods has been a buyer of gingko ever since it went public. affirm skyrocketing after target says it's partnering with the
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buy now pay later company. amazon was obviously the huge one, but now target gets another huge boost, 23% higher we're up on all three of the major averages with half an hour left, only slightly. time for a cnbc news update. leslie picker's got it for us. >> police say they have arrested an 18-year-old student suspected of opening fire in his high school west of dallas. timothy has been charged with multiple counts of aggravated assault with a gun authorities say two people were shot, and a total of four were injured. a 15-year-old is in critical condition and has already had surgery. the rest are in good condition or have been released from the hospital the justice department is getting ready to sue government contractors that failed to report data breaches companies that receive federal grants will also be targeted the justice department says it will also protect whistle-blowers to come forward to report breaches and in japan, businesses are
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offering discounts and other perks to people who prove they've gotten their covid shots. a group has launched a smartphone app where users can register their vaccine certificates, and then use the app as a vaccine passport. almost like a groupon for a covid vaccine, guys. >> that would be nice if we had that here. leslie, thank you. i would use it cnbc unveiling the third annual financial adviser 100 list developed a proprietary methodology to rank the nation's top investment advisory firms based on several categories like assets under management, compliance record, and number of years in the business. taking the top spot this year, dana investment advisers $7 billion salem investment counselors falling one spot from last year to second place. don't miss this year's financial advisor summit you can register at
3:32 pm well off the session lows, up by about 0.1% for each of the major averages nasdaq up a fraction more than that when we come back, an exclusive interview with tran's ed garden later we're gearing up for earnings from levi strauss after the bell, we'll break the numbers as soon ashecrs. ty os fa 100 is sponsored by the alliance for lifetime income ” by joe esposito] ♪ try to be best 'cause you're only a man ♪ ♪ and a man's gotta learn to take it ♪ ♪ try to believe though the going gets rough ♪ ♪ that you gotta hang tough to make it ♪ ♪ you're the best! around! ♪ ♪ nothing's gonna ever keep you down ♪ [triumphantly yells] ♪ you're the best! around! ♪ [ding] don't get mad. get e*trade and take charge of your finances today.
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their biggest investment ideas david faber joins us now along with trian founding partner and chief investment officer ed garden >> thank you, wolf that's right, ed garden is my guest. nice to see you in person. >> finally >> we look forward to more of this you gave what we call a fireside chat it's been an important position for trian of late, both invesco kind of been waiting for you guys to push consolidation are you getting anywhere in terms of that conversation >> so you and i have talked about this >> yes >> we have a lot of experience in asset management. nelson and i were on the board last year when it was sold to franklin templeton i was on the board of bank of new york for five years which is the eighth largest asset manager. nelson was on the board for five years, very successful
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so, it was obvious to us last year that there was a lot of value. we ended up becoming the largest, second largest shareholder of invesco and the largest shareholder of janis henderson. we filed a 13d this week >> i saw it this week. >> 14.5% and we actually raised the fund dedicated to asset management to invest along our main funds long lock capital, 10, 11-year capital. and what's amazing, david, is we bought those stocks at about five times ebitda. we invested about a billion-one. it's worth over 2 billion. and what's amazing is today even with that appreciation, those stocks are trading about six and a half times ebitda. >> and there still hasn't been the consolidation that many thought you were ultimately
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going to push for. >> so there will be consolidation, and we look at black rock, which is the leader in scale trades at 15 times ebitda. invesco six and a half times ebitda has $130 billion market cap. invesco has $11 billion market cap. invesco 1.6 trillion of aum. my point is there's a lot of room to continue to scale invesco and create a ton of value. >> and what about these reports of state street perhaps being in the mix in terms of an invesco partner in some way? >> i'm on the board of invesco and can't comment on market rumors but i will say we believe there's going to be consolidation, and it makes sense, david, because you need scale to compete long term you need to invest in people you need to invest in new products you need to invest in technology and distribution and solutions the channel partners, the morgan
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stanleys of the world, they want fewer partners who can do more for them so you're going to see, besides black rock, a handful of scaled players. and our job is to help invesco become one of those. >> in the time that we have left, i'd like to spend it on esg because you talked about it inside, and you've said, and i'm going to quote you that it is -- >> i want a footnote >> i've already quoted you once actually on air and you caught it but you said esg is redefining capitalism i mean, those are some big words there, in fact, two big words. why do you believe that to be the case >> look, it used to be that it was good enough to be best in class operationally, best in class organic revenue growth in margins and return on invested capital. that's not good enough anymore your employees -- >> they always choose to take
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out -- >> on live tv. go ahead, i'm sorry. >> your employees, your customers, your shareholders, your suppliers, regulators demand best-in-class esg and that bar is constantly moving and moving up and so we're spending a lot of time with our companies really talking about what we need to become, how we're going to get there. and, you know, today, my observation is today most of the esg investing is pretty low value. it's money being invested in a fund that implements exclusionary screens >> can only invest in this, we won't invest in that >> or maybe using esg scores and you and i know the problem with esg scores. >> yes, they are not necessarily accurate or representative of what you're looking for. >> there's a hundred different esg rating firms, 600 metrics,
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all sorts of greenwashing happening. so i think you're going to see that evolve. >> well, how is it going to evolve what are we talking about? and how does an activist such as trian use it to your advantage >> esg, to us, is inherently about nature and that's what we are trian is a change agent. we have a long history of facilitating positive changes at large, complex organizations and i think what you're going to see is more money going into esg, companies who have esg issues versus the small number of companies that are perceived to be good esg players and a hugely important nuance to all of this is that in order to become best in class from an esg perspective, management teams are going to need to spend money, and it's going to take time it's going to take money and
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time management teams and boards are under pressure to make quarterly earnings one of the aspects of our business model is that we give management teams cover to make the investments and take the time to be best in class so, i think what you're going to see is an evolution of esg investing to groups that can, you know, help companies make changes, a great example is nelson on the board of proctor & gamble was very much a driver of new technology that they're coming out with to take the water out of a lot of the products, and therefore no need for classic packaging. we all know plastic packaging is a planetary crisis this is an opportunity to mitigate that in a major way it's transformative technology, but it takes time and it takes money to do that
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so, another example is when i was on the board of bank of new york, we really drove diversity and inclusion by making it part of people's compensation and mandating diverse slates so i think you're going to see more high-value add differentiated, hard to replicate, initiatives that lead to authentic change. >> and i'm afraid we're out of time now it's obviously a topic we could go on for some time about, but certainly appreciate you taking some time. >> good to be with you >> back to you guys. >> ed garden, our thanks to you. so good to see that old conference background hotel lobby look it's been a while. >> and the classic people tidying up in the background when the live tv interview is going. when we come back, wall street downgrading airline stocks next in the "market zone."
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plus some of the lowest options and futures contract prices around. don't get mad. get e*trade and start trading today. the "market zone" is sponsored by etrade, trade commission-free today with no account minimums ♪ 13 minutes left in the trading day. we are now in the "closing bell" "market zone." commercial-free coverage action going into the close mike santoli is here to break down these crucial moments of the trading today. and today we've got josh brown with us. let's kick things off with the board of markets the dow, s&p, and nasdaq all modestly high. the russell is the underperformer, down about three-quarters of 1% s&p's up 0.2%. dow's up 60 points or so hugely far from the lows of the
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session. encouraging, but is it resoundingly - >> i would say not resoundingly. market is still sort of obeying the speed limits and the stop signs and all the other things that seem to dictate how one of these mini corrections tend to go we ran right up to kind of yesterday's highs in the indexes and more or less stopped right there. so, again, it's this very kind of back and forth tactical picture. it doesn't feel like a huge rush of money of people who actually want to own things for a long period of time although really pretty good reversals from the lows. if you look at the etf volumes and the idea that people felt like maybe that was enough for now on the down side >> josh, you often look to the charts and the technical analysis how much damage is done, and what does it suggest about where we're going? >> yeah. i think that's like a really key point for people that are paying close attention to this stuff is, like, how much worse can it get or has it gotten bad enough. and the answer right now is not
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marketwide it's segment or sector specific. i'll give an example of what i mean by that you had a very impressive intraday reversal overall for the s&p. that's obvious and you did have a pretty good washout leading up to that even though the s&p really only fell about 5% but internally 75% of the s&p 500 names were below their 50-day so on a short-term basis, that is the highest number of stocks that we've seen below the 50-day since 2020 so, it's decent. the ndx is much worse. nasdaq fell 8.3%, peak to trough mega cap tech is trying to bounce here. apple was 12% off its highs at the worst. it's not up much, but it's way off the lows google and microsoft are bouncing much harder those are the two that look best netflix is acting like it's on another planet new highs again today,
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completely impervious. and then the whole art complex there's really no bottom there so, it's very tough to give you, like, a black and white, yeah, that was the correction and this is the bounce. i don't think it's over yet, and i do think it's going to roll through a variety of industries before we get there. >> nasdaq's about 6% now off the highs. bank of america coming out and reiterating its buy rating on facebook, noting that regulatory risk is already priced into the stock despite this week's whistle-blower testimony on capitol hill meantime, ceo mark zuckerberg coming out and rejecting the whistle-blower's claims that the social media giant prioritizes profits over safety. julia boorstin with the details. how convincing was he? >> mark zuckerberg says he cares deeply about issues like safety, well-being, and mental health, and that haugen's accusations just simply don't make sense he says, quote, the argument that we deliberately push content that makes people angry
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for profit is deeply illogical we make money from ads and advertisers consistently tell us they don't want their ads next to harmful or angry content. zuckerberg warning that criticizing facebook's research sends the message that it's safer not to examine their impact, saying that their rivals don't do as much as they do in this matter. the ceo also defending facebook's work on instagram for kids, saying that tech companies should build safe experience for the young people that are inevitably and already using technology guys >> julia boorstin, thank you josh, i feel like with this whistle-blower testimony, you watch it as a parent, you watch it as a citizen, as someone who believes in democracy, and then as a shareholder are they different right now or do you think this is starting to really have a psychological impact on investors? >> yeah. i made this point on "halftime" yesterday. and i'll repeat it there have been worse moments
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for facebook in the last ten years or almost nine years since they've come public. there have been worse pr crises than this particular one and all of them have resulted in a new record high for the stock eventually and you really didn't even have to wait that long historically it's hard to me to look at this and say, yeah, this is the one that's really going to change anything in the end facebook is the most effective advertising platform in human history it's operating as part of a duopoly with google. fortune 500 companies have learned through research that they can basically throw out every other place they advertise and just use what facebook has to offer and be pretty much okay and they know more about who the advertisers want to reach more than anyone. none of that is changing with the whistle-blower and sentiment very quickly fades away because in the end everybody's trying to keep their job and make as much money as possible, including brands, including the people that run
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brands so i'm not personally invested in facebook, i think they -- personally, my opinion, i think they sell cigarettes, i'm not interested in having an overweight to that i have exposure through indexes and funds. we all know what the fix is. it's not breaking it up because then you'll just have four evil companies instead of one the fix is going back to the chronological time line and stop running experiments with our brains, but they're not going to do that. they broke away from chronological in 2014. they're not going back because that's where the profit is then deciding what we see versus us actually seeing the things that our friends are posting, until they go back to that, i don't see any solution here. >> it is underperforming some of the other big cap tech facebook's down a bit. we are getting some breaking news on plans for a virtual
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meeting between president biden and chinese president xi jinping. >> sara, the u.s. and china have reached an agreement in principle for the two presidents to have a virtual meeting before the end of the year. the details on when and how long are still being worked out according to a senior u.s. official who confirmed the news originally reported by bloomberg. the meeting was brokered by national security adviser jake sullivan who met in zurich this week with his chinese counterpart. and there had been some complications around scheduling because president xi was not planning and still is not planning to travel in person to any of the multilateral events happening this fall, the g20 and others that are happening later in the year, for various reasons, because of the covid-19 pandemic, and also because there is just a feeling within china that he doesn't need to go outside the country and that there are no deliverables that he needs to bring to the table at this time so that had complicated some of the planning around whether
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there was a multilateral event that the two leaders could just have a bilateral meeting on this side, and so that is one of the reasons, according to my sources, why this meeting has become a virtual event simply because president xi is not planning to travel outside of china this fall, but, again, an agreement in principal for the two leaders to have that virtual bilateral meeting before the end of this year wolf and sara? >> kayla, thanks so much for that we've got five minutes left. session high's up 80 points now on the dow affirm shares soaring after announcing a partnership with target >> affirm stock jumping more than 20% on news that target is offering its customers installment loan services through affirm that's for purchases of $100 or more target saying in a blog post that it's partnering with affirm as well as smaller rival sesil the stock reaction is pretty similar to what we saw in late
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august when the company said amazon was offering affirm services for purchases of $50 or more on that ecommerce side. affirm shares at the time spiked more than 47%. and an analyst pointing out today this isn't necessarily new, he calls it sort of an overreaction and says, while target has massive potential, affirm has already been a partner for several years now. so we're surprised at the reaction guys, back to you. >> kate, rooney, thank you so much for that. this segment is so hot and get such good rewards on the slightest of deals >> the segment is hot. there are signs that affirm is becoming close to the industry standard in by now pay later and it has this constituency that seem to be users and enthusiasts of the product and love to bid at this stock. $7,000 per effective user for active customer right now is
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what the valuation is. it's a $36 billion company it's the same size of discover financial. ultimately it's a consumer lender but i think none of that stuff is going to matter right now because it seemed like it's just playing where there's very strong tailwinds for the business >> do you like this one, josh? >> i do. i own plarna, which is not yet public i own it as like a pre-ipo startup. i'm very excited for that one to ultimately and out i actually sold mastercard because i'm so convinced -- and that's a stock i had held for many, many years because i am so convinced that this next generation 21% of credit card rates are going to look like they came from another world like, they're going to be unimaginable and we have evidence of this when we look at places like brazil where bmpl is the standard, and the credit card is the alternative. so, this is coming, it's coming in a big way affirm seems to be wracking up
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massive partnerships i'm bullish on clarna. i think they've done a better job internationally. they're a european company but i think there's a lot of room for multiple players and i think this is going to become a standard for the next generation of ecommerce consumers >> we've got just about two minutes to go in the trading day. i'm just watching bitcoin. i know it's not part of your internals, but 55,000 making a real move higher >> it is i mean, obviously, spent a lot of time under there. not necessarily proving it's an anti-risk asset because it's moving with other stuff. but without a doubt it has a little bit of juice behind it. was going to take a look internally it's gotten better in terms of the breadth of the market over the course of the day. but still pretty decidedly negative here. it's about two to three up to down share volume at this point. take a look at the 10-year treasury note. it's been calm the last couple of days. if you look at a one-year chart,
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it looks like another one of these plateaus, maybe a consolidation hanging around, 1.52 it can only go so far from, say, the german 10-year the volatility index has really been underperforming, you might say, jumpiness of the market itself indexes themselves have not been all correlated at once you see about 21 so still elevated, but given the fact we're not far off the lows, it would seem almost to be underplaying the drama >> intraday a great looking set of index charts. we're now almost half a percent on the s&p 500 a third of a percent over a hundred points on the dow, and half a percent on the nasdaq we were down 460 at the low of the session on the dow we're now up 120 three sectors remain, healthcare, materials, and energy it is pulling back about a
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percent. there's a defensive tilt to what is leading but, nonetheless, a great intraday performance means that at the close we're up 0.5% on the nasdaq, 0.45% on the s&p, and a third of 1% on the dow [ closing bell ringing ] >> nice little recovery for stocks welcome back to "closing bell," everyone i am sara eisen here with wilfred frost and mike santoli, cnbc's senior markets commentator. take a look at how we finished the day on wall street microsoft, salesforce and visa the biggest contributors to the gain really an intraday bounce there. you can see we started the day worrying about inflation and the gas shortage and crisis in europe close the day higher, markets
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seemed to welcome some news that senate minority leader mitch mcconnell is going to offer a short-term fix on the debt ceiling, punt that to december and we've got a little rally for the s&p 500, best sector on the day was utilities. so still a little defensive. worst was energy nasdaq also closing higher by about half a percent got a rebound in bitcoin tech, especially microsoft, amazon, apple, nvidia, google all higher and small caps down 0.6% coming up this hour "mad money's" jim cramer and how investors should be positioning themselves with all this volatility plus, the stocks he has been watching this afternoon for the cnbc investing club. he's got two best of breed names for us first up though on this close, josh brown still with us victor jones from tasty trade joins the conversation first, though, to you, mike, on the recovery and what the market is trying to tell us in terms of pricing in all that bad news about inflation and spiking gas prices and monetary tightening
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and potential slowdown >> you know, in case you got some relief in some of the fronts because you did have the commodity price moves reverse slightly it's a positive that we didn't develop more downside momentum maybe it's a reminder that after you've been kind of with a downside bias for five weeks, you probably need incremental bad news to push it directly lower. but i can't escape the fact that we closed exactly at yesterday's high, which was also friday's high which was also thursday's high in the s&p. show me that it's more than a bounce, it's probably in the process of getting some traction here, but you have to wait and see to say that for sure if you care about, like, the immediate next one or 2% in the indexes. >> victor, what's your take as to whether this is just a brief bounce or whether it's more than that >> i think this feels a lot different. and why does it feel different well, because of most of september we were trading with
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volatility at 7.5% we're now double that at 14%, which still isn't as volatile as it may feel, long-term averages in implied volatility is right around 16% it is volatile the biggest difference this time around is the hallmark of this market has been rotation this time i don't think you've really had a strong, a large sector come up and pick up the slack. you haven't seen rotation, so it feels a little bit more volatile >> energy. >> let's talk about energy it's been strong here, josh. but i think the tough part about that is only, what, 2.5% of the market so energy can be strong and has been strong. financials can be strong but you're looking at a total of 14 or 15% of the overall market. and until you have meaningful participation with technology even healthcare, it's been weak over the last month. those are the top two weighted sectors in the s&p 500 overall both have been weak over the last month and i think until while those
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are underperforming you're going to have sort of a choppy market into the end of october. i don't know, it's a strong close, i don't know that we're out of the woods yet >> and if you look at what led today, josh, utilities, staples, defensive stocks are investors positioning for a slowdown here? should you be thinking about that because it was all about cyclicals for a while. >> yeah, we should have a slowdown nobody's expectation should be 8% gdp growth being the norm the question is to what base rate of economic growth are we going to slow down i do think there's a lot of concern for the first time in a long time we're seeing earnings revisions being lowered a couple weeks in a row for q3. it's almost never happens that in an expansion q3 is a lower earnings number than q2. it's very hard to find an instance of that so that's something that's going on right now a lot of that, though, is still
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this hangover from all these not even a hangover, current supply shocks, and just people trying to recalibrate it's not that businesses aren't doing well it's that they've got this new piece of the puzzle to figure out, which is what their costs are and what they will be going forward. so, that is a trickier environment. i would agree, i don't think anybody's base case should be that growth is like a gimme. it's not going to be a gimme we're going to have to fight it out company by company, sector by sector. the good news is it's not going to take long it's about two and a half week as way we're going to start getting results for this quarter. >> victor, sara mentioned the rally in crypto today 55k or so for bitcoin. how are you playing that sector? >> well, identification, you know, gary gensler and jerome powell over the last couple of weeks have removed a little of tail risk that's been hanging over this market for a long period of time by saying that neither of them have any short-term plans to take the same path that china did with
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regards to crypto assets congress obviously still holds its part there but i think you're seeing a lot of institutional players start to have renewed interest in this space, individual investors are starting to become buyers and holders of the asset class you're continuing to see longer and longer holding duration. and, honestly, that's how you deal with volatility if you have a volatile asset that you believe in, in the long term, and i'm not talking about the doge coins of the world. but if you believe in some of these cryptocurrency protection or sound money currencies, if you believe in ethereum, solana, there's interesting technology downstream technology impacts, there's more people that are starting to understand the technology, the communities, nft adoption, all of that is growing around ethereum. and i think you're seeing more buyers and holders in this asset class that's making it more
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interesting for people looking for volatility this has a 94% volatility index here so, four or five times more volatile than the overall marketplace. but i think when people are looking at -- it's sort of interesting that even though you have high volatility and even with interest rates rising, you have an asset class that many people said, look, this is trading like a high bit of tech stock. in this type of environment where interest rates are rising you're seeing it stronger, moving up to the 55,000. i think that says a lot about the current holders and a lot about institutional participation. >> it does get hit on days where rates do spike sometimes >> it does get hit there's a couple of interesting plays off of this. coinbase, for example, seems to not be able to get out of this range of 220 to 275. it had a couple of good sessions in a row you could use the volatility that we've seen in this marketplace overall to actually sell some of that range. you go down and you sell the
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november 210, 05 and you sell the 300, 305 calls, you can get paid off around $1.50 for every $3.50 of risk. if you're looking to play this in the short term, you can take longer-term investing positions as well. and it's arguably trading at the low end. >> i did want to talk about energy you threw it out there as a market leader even though it doesn't comprise that much of the overall index. what do you do with those stocks we saw a 1% decline. brent's still above 80 we're seeing these multi-year highs in gas prices and energy just how much of that is already in the stocks, and what do you see for the price going forward? >> so i had an interesting conversation with somebody who trades energy stocks exclusively. and one of the things that he was talking about was that we have not yet seen this new
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generation of traders. and we think there's about 30 million of them who have entered the market in the last 18 months we have not -- they have not seen an environment where these stocks have been hot or interesting or even talked about in the media or popping up on screens of momentum or whatever. that process is first starting if the spacs are done and the ipos are now flat on the year and people have lost interest in the growth in any price, tech names, where do they go next well, if the performance in some of these small and mid-cap energy stocks continues, they may get discovered and that's either a good thing or a bad thing depending on where you stand as an investor but these stocks could heat up, and i'm old enough to remember a period of time from '03 to '07 where they were the hottest stocks in the market nobody was talking about tech. they were trading oil shippers, they were trading deep rigs, and
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these stocks were dominating the conversation even on cnbc on the "closing bell. so, i do think the sector's going to be one to watch obviously a lot of it will depend on the price of oil holding up but if that continues, you're going to start seeing a lot of these stocks start popping up on the most active. i know they don't have big market caps. but as a short-term trader that actually works in your favor >> josh brown, thanks so much. and victor jones, thank you also great session in the "market zone." up next "mad money's" jim cramer's here to help us make sense of these wild market swings, and the two stocks he's highlighting this afternoon for the cnbc investment club plus, travel stocks not participating in today's market after several airline downgrades teming up, the ceo of wyndham hols & resorts and the changes they are making amid these headwinds. we're back in two.
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opreza: trabajar en recology es más que un empleo para mí, es una tradición familiar. tomé la ruta de mi padre cuando se retiró despues de 47 años.
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ahora le muestro a la nueva generación lo que es recology como una compañia que pertenece a los empleados. estamos orgullosos de haber creado el sistema de reciclaje. convirtiendo a san francisco, en la ciudad mas verde de america... sigamos haciendo la diferencia juntos. baaam. internet that doesn't miss a beat. that's cute, but my internet streams to my ride. adorable, but does yours block malware? nope. -it crushes it. pshh, mine's so fast, no one can catch me. big whoop! mine gives me a 4k streaming box. -for free! that's because you all have the same internet. xfinity xfi. so powerful, it keeps one-upping itself. can your internet do that? stocks rebounding up the
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lows of the day with the dow closing near session highs jim, great to have you, as always >> thank you >> and what i love particularly about, well, today there's obviously two detailed notes you sent out, the morning one and an update this afternoon with two stock picks. but before we get to the stock picks, you preface it with outlining what it means to be best in class to you and why that's important >> best in breed, correct. i did read it, i just didn't look down at my notes. >> when you look at a company like newcorp and it gets downgraded by goldman down 25 points from where it had gotten, you say to yourself what an opportunity. here is the best-in-class, best in breed in the steel business they've returned a lot of capital to shareholders over time this has been an amazing cycle there's no reason to think that this cycle's going to be over. so what a chance to pick it up
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and what i try to highlight is how hard it is to go for an individual to go in and out and in and out that kind of downgrade i think was something for hedge funds. i am trying to offer something not for hedge funds, but for people at home who are trying to make money over the long term and you don't get to buy newcorps this low very often >> what was the other one you're recommending >> costco. that's the other side. how do you sell a best of breed? this company is now, it is just going up jig antically from when we first bought it own it for the long term the company just keeps doing better and better and better that last conference call was just absolutely terrific, the numbers are amazing, they're going to be opening a bunch of stores in china that i think are going to be continually great. the cfo laid out a depiction of what's going to happen in the
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next couple of years you can't sell it at $4.40 if you're a home gamer or someone who is trying to figure out the philosophy it's not to trade, it's to own and so even though costco's up a great deal, i fear missing the next hundred points more than i fear getting hit by 100-point decline. >> staples actually did well today. w pepsico got a delayed reaction of 2.5%. >> you said yesterday they can take price in a bunch of items that they may even do it in a couple weeks i listened to you and i shouted to the tv, listen to sara, listen to sara, she is telling you what most matters. they can take price. and it was like, no, there's something else on my mind and that's what moved it your comments about what they're going to do that they have pricing. almost no one has pricing, but you said it.
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and i couldn't believe people were still -- you said it it >> no, i'm glad. jim, i live for the day to be mentioned in your investing club newsletter, seriously. you should take up the staple. what about the market turnaround today? we're used to here in the final hour of trade in the last few days being kind of depressing for the bulls. and today felt a little different. we saw a little upswing. but, again, defensive led. >> i love this day for one particular reason because when i got up at 3:30, the futures are down really badly, it's like nothing happens, it's 4:00 other than the fact that natural gas spiked in europe our natural gas went down. i asked the president to release the spr. suddenly someone says maybe we ought to think about that. what i really loved about today was the pepsico because you saw when you saw a second-day move, what that said is, you know what, this market will embrace
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upside surprises it will embrace it it's just we haven't had any earnings look, this market's trying so hard to find a bottom. and everyone's gotten kind of really bitter. mike wilson, once again, he's saying like the worst is coming. i listen to josh josh is a little more flexible he recognizes that, i think that chevron at 5.1%. at one point it was down but for the most part i'm looking for are companies that i don't need to trade, that you get in because wall street is downgrading newcorps from 120. what does goldman want >> i love when you go after the analysts >> well, i didn't mention by name i'm a kind man i'm a good - >> they're analysts. >> i don't think there's anything wrong with downgrading except that it's ill-advised >> it's wrong. >> analysts shouldn't have their
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own qr code either >> the listen to that goldman newcorps call. >> before you came on i checked to make sure the bengals hadn't played since the last time we talked >> a lot of football's playing on sunday, some on monday. and some thursday. it's a pro thing >> jim cramer, thank you always a pleasure. we look forward to the show. jim has the ceo of levi. also you can learn more about cramer's stock picks and sign up for the investing club or just point your phone at that qr code on the screen and it will take you straight there that's what i did. is that what you did >> i did i mean, you do have to zoom in a bit from here but it works and now it's gone. >> we held it up the whole time. don't miss jim on "mad money" tonight 6:00 p.m. eastern time and speaking of levi, we are just getting those earnings out.
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seema mody has the numbers for us seema? >> fun conversation, sara and wolf top and bottom line for levi strauss with adjusted eps coming in at 48 cents a share, versus analyst estimates for 37 cents a share onrevenues of 1.5 billion. that is slightly higher than what analysts were expecting digital sales up 10% year over year making up 20% of total revenues the company also announcing a new $200 million share buyback the cfo of the company saying he believes the company does have pricing power to mitigate inflationary pressures that the company is providing guidance saying eps and revenues slightly below analyst estimates. we are looking at shares here, though, higher in after-hours trade. sara, back to you. >> seema, thank you. as we said, oil and gas have been steadily rallying over the past two months but pulled back big today. helima croft and whether there
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are still more gain as head for energy we'll break down whether consumer spending could be de-energized by the surge in energy prices. cod a t oulbeaxn the consumer we'll be right back. so you don't lose sight of the big picture, even when you're focused on what's happening right now. and thinkorswim trading™ is right there with you. to help you become a smarter investor. with an innovative trading platform full of customizable tools. dedicated trade desk pros and a passionate trader community sharing strategies right on the platform. because we take trading as seriously as you do. thinkorswim trading™ from td ameritrade.
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tonight, battle over the debt limit new pressure from the white house as america's ceos enter the flight and the latest on a texas school shooting "the news" with shepard smith. it would be catastrophic to not pay the government's bills it really undermines confidence in the full faith and credit of the united states. >> the question i've asked repeatedly is, okay, when you got research that said your product was designed to hurt teenage girls, what did you change >> you think about the last 18 months, the only thing that really worked during the lockdowns was technology welcome back oil and natural gas losing steam
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today after seeing their highest prices in years. natural gas plummeting after russian president putin said he would boost supplies to europe to avoid an energy crisis. americans are feeling the pain at the pump. the national average for a gallon of gas hitting $3.22 according to aaa the highest price since 2014 u.s. energy secretary jennifer granholm saying a release from the national strategic petroleum reserve is under consideration joining us now capital market's global head. thanks so much for joining us. let's touch on, first of all, the last 24 hours or even really less than that, 12 hours, and what exactly has gone on there in gas markets, both in europe and here what's your take in terms of whether the worst is behind us on those fronts. >> i mean, we really just have to see what winter has in store for us yes, vladimir putin essentially said we'll put more gas through
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pipelines that go through ukraine. some people thought that was a way that the russians were trying to get quick approval of nord stream 2 which is being held up by the german regulator. i think there is a question mark, however, how much additional gas russia can really bring to the market if it has a cold winter. that is really the question mark about are we going to be so short supplies come winter if it's a warm winter i think we'll have plenty of gas it's really a question about what does winter look like because you've had exceptional demand from asia, real issues with stockpiles in asia, issues with wind, power so i do think we're not out of the woods by any means in terms of the national gas story for europe we just have to wait and see >> is wti being artificially dragged higher by this gas crisis in europe or does it make sense that they would both rise together or should they be really trading separately >> i mean, the real issue, i
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think, for oil markets right now is, is there going to be a significant substitution required from oil for power? the ceo of aramco was saying it already climbed because of gas substitution requirements. and that's why this is a very important issue actually for opec is are they going to potentially have to change their demand outlook if it is a very cold winter. and there is increased demand for oil for gas substitution >> i always like to get your thoughts on the geopolitical story behind what's happening in energy usually it's on the middle east where i know you specialize. but what about this european gas crisis, the fact that there was already concern from the u.s. about the nord stream 2, the pipeline that's going straight to europe and the influence that russia's going to have on europe potentially on ukraine
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how do you see this all in the background bubbling up in terms of geopolitics >> i mean, this was a big issue for congress bipartisan opposition to nord stream 2, which they essentially said was an effort to deepen russia's hold on european gas product market russian inflins project designed to economically hurt ukraine by denying ukraine transit revenue. there were questions on whether russia would trying to hold back supplies a number of senior officials have said we -- if nord stream 2 were approved. there's a real question mark is is there even enough surge capacity in russia to meet demand companies cut their operational budget last year in the down turn they laid off workers. there are real questions about surge capacity again, it will depend on what
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winter looks like. an unseasonably cold winter could mean that they're under pressure in terms of having short supply >> yeah, which would mean prices could go a lot higher. helima, thank you. we've got a news alert on twitter. julia boorstin with the details. >> twitter announcing that it's selling one of its division's mopub to a software company. this deal is valued at $1.05 billion in cash. the company saying that, and jack dorsey twitter ceo saying that the transaction increases our focus just for context here, mopub is more of a side business, it generated 188 million in annual revenue last year and it was really about helping app developers monetize their apps this is about saying we're going to get rid of this thing that's not core to our business, and dorsey saying that this allows us accelerate our ability to invest in the core products that
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position twitter for long-term growth and best serve the public conversation guys, back over to you >> those stocks up after hours still ahead, the ceo of wyndham hotels and resorts and why he's making a big bet on all-inclusive resorts, whether people are still spending on travel right now with so much uncertainty with the pandemic. we'll be right back.
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n from the news on cnbc, here's what's happening. another vaccine breakthrough malaria kills an estimated 500,000 people a year. nearly all of them in sub-saharan africa and more than half of those deaths, children under the age of 5 that's according to the world health organization, which today endorsed a new vaccine made by glaxosmithkline. it's the first step in a process that should lead to vaccine distribution in poor countries the head of the global malaria prom program at the w.h.o. calling it an historic event. an 18-year-old now in custody after police say he ran from the scene happened in timberville high
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school in arlington, texas police say one student is now critical, another in good condition. two other victims escaped with minor injuries police say the suspect turned himself in after hiring a lawyer he had been charged with three counts of aggravated assault of a deadly weapon. and closing arguments today in the first trial of the so-called varsity blues college admissions scandal on trial today two men who prosecutors say paid bribes so that a counselor could get their kids into usc. as athletic recruits even though they didn't play any sports the defendants say they thought that they were making legitimate donations. the operation ensnared dozens of wealthy people, including lori loughlin of "full house" and felicity huffman of "desperate housewives." they both pleaded guilty more on the audiotapes that prosecutors say that caught them red-handed we'll see you tonight right after jim cramer 7:00 eastern
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cnbc meanwhile, some breaking news on gm phil lebeau has it for us. >> the final presentation here at the gm investor day is cfo paul jacobson making some news in of the financial targets that the company has talked about today. here are some of the specifics jacobson is now outlining. the company planning to double its annual revenue to about $280 billion annually by 2030, also targeting margins of 12 to 14%. how are they going to get there? ev revenue of $90 billion a year by 2030 for some context, that would be a nine-fold increase from what the company expects in 2023 so they're not even close to 5 billion or so right now. they expect to get to 90 billion by 2030. gm cruise that is close to launching in california could generate up to $50 billion in
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annual revenue by 2030 and one last note, a big part of today has been pushing services and subscriptions through connective cars, the digital subscription, if you will, for people who are buying gm vehicles, electric and autonomous vehicles. the company says it could generate between 20 and $25 billion a year through those services and subscriptions that would be by 2030. that's how they expect to grow their revenues, double their revenues between now and the end of the decade. guys, back to you. >> phil, what does could generate mean? is that formal guidance and target >> no, that's not formal guidance because we don't know exactly when cruise will launch. does cruise launch next year, as many are expecting is it pushed back a little bit because they're not getting the final certification that they need there's one regulator left in california who can say, yeah, you can charge people for autonomous ridesharing
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most bleebl that autonomous ridesharing has huge potential but we don't know until it's actually here. i would not call that formal guidance i would call that general motors saying here's the potential we believe cruise has >> it's like investor day guidance, which is longer-term phil, thank you. >> you bet >> obviously very ambitious, doubling annual revenue in less than ten years that's a growth company projection the stock isn't moving that much after hours. there's been a lot of hope of in the stock already of this. does that come as a surprise >> i think there's been buildup and assertion that the management team was behind these types of ambitious targets doubling by the end of the decade, it's 8% a year that's your annual revenue growth rate. that's where it translates into. that's not, you know, bad. but it just puts it in context that they're not necessarily saying we're going to reinvent the wheel over time. i do think that it's also encouraging that they feel as if it can be kind of open the --
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very core to the long-term tesla story. so, we'll see. i think the market is actually looked very kindly on their kind of commitment in these areas and that's why it's traded -- it's still super cheap, they're still going to be eating their own demand for a while in other words, they're replacing their combustion engine fleet for some time to come so i think positive but not too different from what the market was already -- i'll make one final point, which is two or three generations ago of gm management in the early 2000s had this big splashy $10 per earning they said they were going to have. it didn't happen and it was seen as maybe the company didn't do everything they should've done long-term health purposes.
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>> it's target as well that will put pressure on management up half a percent for gm gm's cfo is coming up later on "fast money. you don't want to miss that. up next we'll look at whether consumer spending could take a hit because of the recent spike in energy prices and later wyndham hotels & resorts ceo talking about travel demand we'll be back in a couplofmitee nus.
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energy was the worst performing sector today as oil pulls back from its recent rally. let's go to mike now for a broader look at energy mike >> yeah, wolf, pretty long term. it's a 20-year chart of the energy rector relative to the s&p 500 as a whole this really aggressive spike into that '08 high when we had peak oil concerns, $100 plus crude oil prices then a long-term descent part of this is the growth sectors of the index growing much faster. really dramatic low right here that's when we got to below 3% of the s&p 500 so aggressive bounce but looks like if you believe in some form of mean reversion, maybe energy has a little bit of a window for renaissance. this is why you have some bullishness structurally perhaps for energy for a little while. in terms of the impact on consumers, though, i think we have to place that into context as well. this is household spending on
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energy goods and services as a percentage of total personal consumption over time. this goes all the way back to 1960 obviously oil crisis right there '70s into the '80s but right here we got just above 3%, we've bounced to 4%. it shows you we're well below levels that we were in the early part of the prior decade there's a lot of head room for the commodity prices to go up before it pinches to the same degree and also the oil or energy intensity and gdp as a whole is why the effect is will be real but probably muted if prices keep going higher. >> mike, thank you after the break, a pulse check on the travel industry wyndham hotels betting big on a comeback for the sector. we'll discuss the company's latest venture with the ceo. "closing bell" will happy birthday right back. that's why cisco is committed to achieving net zero emissions by 2040.
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called remind wyndham ultra. why launch a new concept, a new brand, all-inclusive, which i don't think is as big as it is for competitors like marriott. what's the opportunity >> the opportunity is huge travel is fully back in the leisure space. the economy and the mid-scale place and we're the world's leading largest hotel franchise. it's been running in the economy in mid-scale space, double digit as head of where it was not in 2020 but in 2019 the first brand dedicated to the fast-growing all-inclusive leisure segment, wyndham ultra was born for all-inclusive travel for all it partnered with playa, the
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leading owner and operator in the caribbean and latin america, two great resorts, cancun and playa del carmen, two stunning award-winning resorts, and the best features in the caribbean that we think leisure travelers are going to want to visit this fall and certainly into 2022 >> so is this a strategy pivot toward leisure at a time where that's where all the growth is and all the return to travel is, and still kind of murky on whether business travel comes back in any big way? >> well, 80% of our business throughout this pandemic has been leisure typically it's 70% and, yeah, we are betting big that leisure travel, which is booming today, will continue to drive the recovery it's good to see travel slowly improving, but certainly for this quarter, next quarter, into 2022 we do believe leisure travel is
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going to continue in the travel sector >> jeff, is there an added thought here with the all-inclusive that you think people are ready to unleash after the pandemic and make the most of freebies on the food and the beverage side? >> absolutely. leisure guests they're seeking stress-free planning, stress-free vacation planning, which is just so important right now in this work-from-anywhere environment in terms of being able to get away for the weekend what we're seeing right now is thursday and sunday and monday growing faster than they were back in 2019, and certainly people are willing to pay for that but the savings that are available here for all-inclusive travel could be upwards of 25% to a family in peak season it could be upwards of 40% in the offseason. and to have everything there
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stress-free in a stunning, beautiful resort like cancun or pl playa del carmen is just one for incentive to plan that getaway >> i love that broadly speaking, what are you seeing in terms of occupancy relative to those 2019 levels you're comparing to? sxlts so the last two months and this past week it was just released a couple of hours ago, the last two months in our industry in the economy in the mid-scale space, revenue for available room in the economy space up 15% to 2019 which is pretty incredible. 10% of that is occupancy, five points of that -- i'm sorry, 10 points -- so people are willing to pay to get away and in the mid-scale space, it's also up. people are planning family vacations -- up roughly 5% over the last two months.
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it's just speaking to that pent-up demand of wanting to get out and travel >> geoff, what about vaccine requirements do you have a companywide policy, and your view on booster shots? or is it kind of more local? >> well, certainly local, i mean, where vaccines are required like of california right now. it is required we are strongly encouraging it for all of our employees where it's not required. and we'll certainly be abiding by the administration as we bring our workers back to work in our corporate offices to be vaccinated >> would you support a mandate where all travelers on airplanes have to be vaccinated? it comes up we're not there. obviously canada is doing something like that. or do you think that ultimately would hurt travel and your business >> boy, we were on a number of industry ceos, we're on a call
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today with u.s. travel, and senators rosen and sinema and moore and manchin today, that issue continues to come up the airline industry, as we know, are not all aligned on that and we'll see what happens as the administration brings out the early re-opening aligned on that. we will see what happens as the administration brings out the early reopening of this international inbound which is so important to the upper upscale and luxury of the business that's what we were pushing for today. an early reopening administration said sometime in november -- administration officials would like that to be november 1 we need support to be on visa restarts the backlog in visa is daunting. we hope for emergency funding there and also on brand usa so we can market the great
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experience like cancun to europeans who might want to come over this winter >> my other question is one we talk about is jobs because we have a jobs report friday. i know your industry did a panel on how tough it was to find workers as we snap back into growth mode. we saw 6 million americans roll off the unemployment claims in november are you having an easier time getting people back to work? >> it was the number one issue coming out of this pandemic, a shortage of workers. it is still the number one issue today. it is something that my colleagues will be discussing. it has been alleviated a bit, but we still have a ways to go in terms of everything this industry could do to make it easier on small business owners
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to be able to operate effectively. >> thanks so much for joining us good to see you. up next, latinos in the workplace, the hispanic population is growing in the u.s. and younger latino are taking a different approach to earning money from their peers >> i grew up knowing the power of savings but the power of investing wasn't something taught at home or school. in today's age it's important to make sure your money is working for you. make sure your meyon is growing
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news alert on a media deal julia?
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>> i see dotdash is acquiring meredith cooperation the company is going to be called dotdash-meredith and they say it will be one of the largest publishers in america. 95% of women read it meredith shares are up in after hours in extended hours trading on this news this shows the next leg of growth for iac it has made acquisitions, grown companies internally and spun them off now it seems as if the company is investing in content, digital advising big event. >> julia, thanks so much
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it's hispanic heritage month it turns out latinos are a decade younger and quickly approaching their prime earning years, but they are taking a different approach to many in their age bracket. hi, bertha >> if the u.s. hispanic population were a country, the gdp would be the largest economy, equal to france but it is growing faster at 62 million people, up 23% in the last decade. and now nearly one in five americans are latinos. for those under 18 it's one in four with a median age of around 30 latinos are almost a decade younger than the overall u.s. population a lot of them, advertisers and retailers have taken note of
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that gen z tend to have less debt because a lot of them don't go to college a lot of reason is they don't get the payoff they have 3 1/2 times less than their peers and 2 1/2 times less than their peers with bachelor degrees. when it comes to entrepreneurial businesses, they are nearly twice as likely to start their own businesses than other groups, according to stanford analysis latino growth was up in the last decade, 2.4 million of them.
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though they were hit hard by the pandemic, latinx businesses saw their sales fall by about 32% in terms of activity, but they are up about 10% from prepandemic levels, more so than with their non-latino-business peers. >> really interesting. especially that 34%. a look to tomorrow we will have consumer krid i, jobless claims and we will be watching the tesla annual meeting kicking off at 5:30 eastern time tesla has been performing well bombed in may and steadily climbing up. >> it had a pretty good correction from the january high of 900
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annual meetings are typically pro forma affairs unless the ceo decides to make it interesting i don't expect anything out of the realm that was expected. >> oil did close lower today by 2.5% we are out of time "fast money" starts now. >> live from the nasdaq market overlooking times square, we are live we will be joined in a few minutes. red alert in energy. natural energy prices going wild key names to trade and tim says this is the one stock that should have every investor concerned later,ie lon musk,


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