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tv   Tech Check  CNBC  April 13, 2022 11:00am-12:00pm EDT

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>> as you point out, the yen, that's a new low, certainly in the last -- more than a decade >> the polar opposite of what we are doing. they are not raising rates, we are raising rates. they are still fighting inflation. >> sara will h will be right he this desk at 4:00. good wednesday morning i'm carl coulantanilla. don't miss our exclusive with microsoft's brad smith talking privacy and a lot more >> we are starting off with the nvidia upgrade the street upgrading it to a buy
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after a crypto downturn. they say it is an opportunity to take a longer position in the company. they cite reasons for secular growth the echos of the metaverse story is in there. but whether you believe metaverse is a place or marketing, it's hard to deny it. >> the note talks about secular shifts when you look at part of crypto, what part was the actual business they noted it boosted gaming revenue by about $2 billion. stock is clearly anticipating
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some disappointment carl, i wonder if this will be a theme ahead. you will have to look at how much disappointment is priced in and those could be the ones to choose >> j.b. hunt this morning basically argued that the street has already discounted a recession in transportation so we are seeing an uptick in value oriented upgrades. >> our next guest is predicting inflation could get worse from supply chains and geo political. great to have you with us. a number of people have come out over the past days and talked about peak inflation you don't think we are there yet, why >> thanks for having me on i don't think we are quite there
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yet. i would like to see the numbers next month this month if you strip out energy and food items, when you get to the consumer index number, you are seeing moderation we saw used car sales dip down ty think we want to see a little bit more in the next couple months to be able to say that we peaked the market with the information that came out yesterday, saw some good things but as the day went on, the market started to pull back. we want more information before we say we are peaking and what the feds may do. >> what is your earnings strategy ahead if we are not at peak inflation, how will factors play out? >> some of my strategy is dollar cost averaging large cap tech, we have seen
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some of the stocks pull back considerably i think there are areas for investors to look at if you are looking at digital revenue, we jumped 35% last year you have googles and facebook and amazon these stocks have sold off a bit, but there could be earnings to prove they could start to have growth headway in the near term if you look at some of the valuations for the companies that have taken a beating over the past six months, there are areas for investors to look at >> speaking of companies whose stock has been beaten down and we gave a nod to metaverse a moment ago what about the idea they and horizon could be taking as large a share of transaction as 47%.
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you think app users are mad about apple's store now, 47% is that huge or is that a sign there will be more of the same >> some of that will be parsed out, the ability to buy on qwest as well as buying together they do think measures about that going down over time. it is an unseen area it is a big push that meta is making, changing the strategy of your company and name. investors have to find a place as they find out what metaverse is what does this mean for the community involved the people that figure that out i think will be the biggest beneficiaries. obviously the companies are planning to take big revenue cuts from that
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if they figure this out correctly, it could be beneficial for shareholders. >> rbc says their channel checks of small and medium sized business raise the thought that meta is likely to see another rocky quarter. some of them are considering new areas for the first time do you think that corner is at risk >> 100%. if you look at facebook, they are showing less as far as user growth, but showing more growth on the reel side where you see reels taking off, tiktok platforms and instagram. add revenue is the biggest form of revenue commerce, there is still 5.5
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million people who registered new businesses i believe some of those companies happen to be amazon and shopify, but there are strategic shifts amazon has most of the market share on ecommerce front, i think new business is being created. >> last season was remarkable when you saw huge moves of mega caps from 10 to 15% in after hours. where do expectations lie, is that a one off thing or could that continue? >> i think a lot of these companies have had strong earnings how the market reacts on that versus inflation and rate hikes which will be the biggest beneficiary on where prices go we are battling some events that
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go into that couldn't predict we will see a huge jump, but i think people holding, like myself, should continue to hold >> thanks for the preview. talk to you soon >> thank you very much thank you. let's turn to twitter this morning. kathy woods has been offloading shares all year slashing further among the elon musk joining the board. but with him no longer joining the board, here is krrccathie w. wit >> with the announcement that jack dorsey was selling, we have
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been selling >> there is a group of users suing musk saying he failed to disclose within the proper timeframe. maybe that's why the stock has gone from 55 back to 46. >> she said we don't know if the advertising model, subscription model or a combination will prevail. what if it's none of those it's hard to know what elon musk will do if he gets a bigge stake. that's the key you don't know she started selling after jack dorsey stepped down, but the future is uncertain and maybe filled are drama >> i used to enjoy seeing cathie wood throw water on anything
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how often do you see that? it just guess to show, while it's hard for twitter to find a friend, let's see if that's the case for our next guest. good morning >> good to see you >> your take on twitter's prospects, its handling of its largest shareholder using its platform against it? >> i'm old-fashioned i think corporate governance matters. what you look for is someone who will keep things running well and stable somebody who has been a poor actor is a poor choice, just for the governance role. maybe somebody in the company should be helping the company succeed, but that's where i
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start. >> when somebody bought a tenth of your company and is a huge actor on your platform, bad or not, that's quite a challenge to navigate, isn't it >> i don't envy them having to navigate that. but what matters hype versus real, whether musk or web 3 or hype it ha it has to be figured out which part is real. >> we are going to be talking to the ceo later on he said it's going to promote innovation, fairness, do you believe that >> we build where developers are. we get a glimpse into what they care about they don't go with the bs.
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they will be critical of what they look at the substance is that they like the open web, whether web 3. metaverse, there is a lot of hype, why do they change their name but if you look what is being built, they are building on the open web on any more than a closed platform, any one of the big venldtors. -- vendors that's where they are saying open web apps may be you listed in their store >> does that mean apple may not be well positioned for the next technological leap the microsoft app store is still very small but who is best positioned is it meta >> i don't think it's a win for meta apple ends up a bit on their heels.
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if you look at the world -- word game, it's just an app they are not paying facebook for distribution that's a change. that's what developers are looking at that has me optimistic in a way i haven't seen for years >> this mistrust of big tech, not just by consumers, but developers as well who is to blame to that? >> there are a lot of fingers to point. just whether i don't like the creepy data or the way the company is run developers are that is a distraction. i want to focus on making something cool this is just a signal of where the whole trend tends to go. everybody is influenced by that. >> but the bottom line is you do
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expect maybe some new entrance in cloud at least, right >> absolutely. these days there are new cloud hosts. i look at some that are interesting and some with the edge stuff with the cloud players of the world i feel like they are aligned with i am going to get something out there. i don't want to give somebody a cut. i don't want to be subject to somebody else's algorithm, i just want to make something cool and maybe you get the next hit >> i want your take on the -- i can make the argument that the story of success in the internet is centralization, when you look at amazon, what it did with supply chain, apple with vertical integration, and
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devices, amazon and the cloud and everyone saying come here and get your computing resources. why is this desc-centralization needed >> how do you separate the interesting technical parts of nfts of web 3 from the hype and from the promises they can't deliver. the key distinction is there has always been -- users love the convenience of centralization. so do i. you had your aols and yahoo!s and second wave facebook i think there will be pushback one is the technology for a
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person to be usable are getting better an example is e-mail e-mail is not very centralized you can run your own e-mail. that took many years for a person to do that, but it's getting there. i think there is a little bit of an impulse on pushing back on the centralization move. >> e-mail is weird i don't know a lot of people writing their own e-mail servers in their basement. if you want to be a presidential candidate, you probably shouldn't do that. >> but you subscribe to e-mails from all kinds of different sorts. when an e-mail goes to your inbox it is not decided by an algorithm. there are a lot of changes it's not perfect i am not ignoring the parts that are broken, but there is good
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potential for a model as imagining the next era of web. >> and a lot to figure out in that space as well thanks for helping us think about it >> good conversation gut check. shares are down 9% of etsy 20,000 showing up to sell objecting to the latest hike fee. a 5% fee had been in place since 2018 and 20,000 stakeholders signed a petition demanding a crackdown on retailers, customer service and an option to opt out of offsite ads. the company boasted a 23% boost in sales since 2019 and an additional 90 million users. this year another story.
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the stock has been slipping long before that february fee announcement many investors have concern over profitability and resistance from unhappy sellers paving a slippery slope etsy shares are down 60% from their all time november high carl, they say they need to compete with amazon. he is not backing away from this fee increase he is saying in the long run sellers will appreciate it >> and just how much is the consumer willing to spend. j.p. morgan has a look at how spending has been able to keep up even though savings have not. once that dries up, what kind of choices do consumers make. >> run me my coins, whether we are talking about apple's app
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store or meta and the 47% cut. people aren't building these for fun. if you are making money, you are going to end up paying up. figure out your contingency plan to not need that particular eco system too much. you don't want your 5% to go to 6.5. >> it's all relative the fee that meta is looking at, 47%! 6.5% doesn't sound too bad but timing and supply chain problems the bear case for meta and roku tech check is just getting started.
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down 70% in the last year. a new report reports the challenges julia has more >> roku shares are up about 3%
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this morning, despite the sell rating on the stock. despite three concerns, slowing revenue growth, plus warning that the warner brothers discovery merger will give more leverage over roku, second is the growing competition in the ad streaming which means it will pressure roku to invest more pressuring margins and third is the box to tvs. the stock is down nearly 70% in the past 12 months on all of the concerns another streaming service that relies on roku launched
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distribution, national geographic with disney-plus, an extra $3 for nat geos app. but it is unclear how much more demand there will be after the cnnn plus has struggled to draw viewers. it is reported fewer than 10,000 viewers are watching cnn plus daily. the app was installed 134,000 in the first two weeks. of the 55 million who already downloaded cnn's app converted to a subscription app. we have to wait to earnings to learn more >> on the other hand, with this note, i have to wonldder if you believe that roku is a real
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power in the streaming land -- and i don't think a lot of people recognize just how many installs they have -- maybe there is potential there also, when it comes to operating systems for streaming, even if connected tvs are taking off, a lot of them have roku in them. i understand nathan pointing them out as downsides, but they could be upsides as well >> and the supported business as an upside. roku has advertising and they have been investing in that. can they take advantage of the fact there is a growing awareness of ad supported streaming. that's why disney plus is getting ready to launch their ad supported version. i do think they have an advantage in that ad-supported business, the fact this they
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have already been there. i am with you on that other hand >> julia, back to the cnn plus piece of this. we just spoke to jason tyler, granted his exit interview, he sounded so enthusiastic about early numbers. what the do you think were the expectations you don't know how many given d downloads were converted what do you think the expectation was? put this in a context for us >> it's hard to know it's a complicated situation you are not just looking to get someone to download a new app, but many already have the cnn app, and to start paying for that app there are viewers versus subscribers. 10,000 viewers doesn't sound like very many maybe they have gotten more
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subscribers. it will be interesting to see what we learn when we get those earnings eventually, but is this something that the new company want to keep as a stand alone product. are they interested in keeping it as part of a bundle how many subscriptions are people really willing to pay for, carl? >> this was a question that mckenzie worked on and we will see. pretty fascinating times in the media world. we are getting breaking news from the cdc on airline mask mandates phil has more. >> as many people have been guessing would happen, the cdc and tsa have decided they will be extending the requirement for people to wear masks like this in airports and airplanes for another 15 days. the current mandate was set to
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expire on monday the 18th. it is our understanding from talking with people in the airline industry that the biden industry worked with the cdc and tsa to extend that another 15 days, to extend it through may 3. not a huge surprise given the fact we have seen a surge in covid cases, particularly within the biden administration and washington, d.c. and as we see upticking cases around the country, many people thought the cdc woulds hold off and let the mask mandate expire. but, again, it has been extended another 15 days. after the break we will dive into paypal. it could get better, but just isn't.
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welcome back i'm courtney regan prices are up 11.2% wholesale. that's the highest on record going back to 2010 energy costs are driving this, up more than 32% jp morgan chase shares are down about 3%. and bed bath & beyond getting hammered the company blaming supply chain issues the ce oo also saying they are
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exposing short-term availability and delta had strong first quarter results saying it has seen record demand they are raising prices to cover rising fuel costs. carl, back to you. >> thanks so much. rbc lowering its estimates and target for meta saying it could get better, but just isn't brad, we were talking about your call in the past half hour it comes down to channel checks you have been doing regarding small and medium sized businesses and their willingnesses to go on the platform >> i missed the end of the question >> talk about your channel checks >> thanks for having me on we call agencies that represent a lot of small and medium sized businesses, companies that don't have the resources or people to
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allocate their dollars themselves so we try and get anni in aggregateion we are seeing about half of our advertisers pull away from facebook, not move back towards facebook >> can this be made up for from other platforms in the group >> we don't think so everybody knows about the transition to short form video with more traffic and the montization on the reel platform this is not happening faster than expected. this, to us, is the core of the business, and and arch /* srch
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src -- smb is as we get into q 3 and the holiday season in q 4, that facebook still has the largest scale and we will see those back to the platform. this is the near and medium view basically as reel pieces come into play, they will be able to transition that over
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and be able to monetize that in a way that reaches parity for what they are doing today. >> interesting target to 240, the stock well above the march 185 or so. brad, good to see you. >> microsoft president brad chhe ismh. te ccks back in a moment er need to miss work for a long time? why would i miss work? you could sprain your ankle... get hit by a school bus. get kicked by a horse. scurvy. plan today. feel comfortable about tomorrow. massmutual. ♪ ♪ feel comfortable about tomorrow. connecting to opportunity is just part of the hustle. ♪ ♪ opportunity is using data to create a competitive advantage. ♪ ♪ it's raising capital that helps companies change the world.
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gut check. a rough ride for peloton shares down 30% year-to-date the company plans to cut 2800 jobs the ceo claimed he was here for the comeback story, but he might have to pedal faster the stock is back to near all time lows and there are calls for blackwell to recognize his own limitations. blackwell is floating other companies as potential buyers. - hiring is step one when it comes to our growth. we can't open a new shop or a new location
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a privacy conference in d.c. this week. we heard from tim cook tough words. it's microsoft's term. we are joined live from the event with an exclusive guest. steve? >> i am here with brad smith, president and vice-chair of microsoft. you just got off the keynote stage. thanks for joining us. i want to talk first about the
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disconnect yesterday we heard from tim cook and today you. tim cook had harsher words about the regulations from eu and across the world you had more of a kumbaya, let's just get together. what is cook and everybody else getting wrong? >> we should recognize apple does great work around privacy, so do we they care about cybersecurity, so do we but there are messages my fundamental message is that tech regulation is coming. it doesn't matter whether you like it or hate it more than anything, we need to lean in and figure out how to make this work it is not going to be a success unless we do that. >> one of the points cook made yesterday was the idea of open app stores, letting you install
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software from the open web or third party app stores you have said we are going to allow any app store on to our platform does this benefit you? you have google and apple dominating the economy >> we have a more open platform. that's what we would say when we look at windows. we all have to comply with security and safety and privacy standards, but it promotes more competition. we have pound a path through that issue we are comfortable with i would look back at the water, the panoply of the regulations unfolding. this is a different decade we can't go back to the 2010s and say don't do this or that. we are going to have this happen whether we work with it or not it will work better if he would
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try to help it succeed >> the fd krc chair was speaking two weeks ago. she's looking at your deal with activision, the $69 billion acquisition. should privacy play a part in these considerations in looking at your deal >> i think the federal trade commission should look at a broad set of issues. they have antitrust law, but it's difficult to say any one of these fields and say this is stand alone by itself. we are seeing a blend. from our perspective, any day we can go to the ftc and make our case for how we think we can promote competition and protect privacy is a good day. i will be enthusiastic about making that case >> good morning.
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good to see you. >> hi, john. >> i have a very about what they are calling the metaverse. how should commerce work are you going to charge as much as 47% in transaction fees on your version >> i would be surprise fd you see something like that at microsoft. our point of view is there is not just one metaverse there are different scenarios that will meet different needs we have a critical contract with the united states department of the army at the same time we are looking at consumer services like gaming and lots of others i think from our perspective it's about building a broad system you have to have a platform that
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makes room for developers. one way to make room is you offer them a good deal i think you can look to microsoft to do that >> i understand the argument you are making for developers. going back to tim cook's argument, at the core of it he is saying you are sacrificing security when you have a more open platform. and your argument is you will have platforms around security so how will that be more secure than a central system? >> the key to protecting people is to have strong and secure standards around issues like privacy and security if you can put standards on a place that has a million apps, you can put them on platforms that have two or three app
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stores you can approach these things and put them into conflict with each other, or you can find a way to reconcile these points. that's the fundamental message the era of we don't like this so stop that worked for a while. but the britons, australians, japanese, they are all moving forwards wii need to be part of this. >> in your keynote, as you said, it's going to be wild. thanks for joining us. i look forward to talking to you more >> back to you >> thanks for that discussion. paypal, is it undervalued or overvalued, it's down 46% since the starts of the year your shipping manager left to “find themself.”
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welcome back got a leadership change at paypal longtime cfo john rainie is leaving for walmart. shares are down 45% yore to date undervalued or still overvalued here on the undervalued side, web bush say the change in management isn't a surprise given multiple resets. mizuho agrees after paypal made
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a, quote, glaring mistake of saying it could reach 750 million accounts by 2025 only to walk it back a few months later. the stock is attractive from a valuation and strong brand presence perspective right now shares trade at 22 times forward p-e. that's below block which traded over a hundred times and paypal has historically traded and sofi and robinhood still not profitable and that's the bullish take firms like btig worrying that a business slowdown pointing to slower user growth, slower revenue growth and overall e-commerce sales which the company says will increase by 10% and that's aggressive and earnings in the last two weeks we'll find out more then jon, this morning cramer goes into a bit of a mea culpa promising for better quarters ahead independent i'm still trying to sort through all of
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the action in fin tech i don't believe that but i do believe that paypal could be more aggressive in solving some of the problems that upstarts like bolt d are going after, like the quicker checkout they made their bones doing that in the beginning, but things are shifting a bit >> that's exactly it, jon. they could be more aggressive and they haven't been over the years. you'd think this company has a huge lead with venmo they have so many young people on to the platform using it so often and they didn't convert them to other products and not only that, they couldn't monetize them, carl, and now you have block, square -- excuse me, formerly square and catching up with venmo and it's hard to see that paypal kind of blew its chance >> remember that day, jon, when the pinterest thing broke and people started asking all hosts of questions of what could they possibly be thinking and what could they portend in the longer term we're in the longer term now
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>> there are always people willing to justify management wanting to spend a few billion dollar, but now they've -- i guess, got to focus on the core a bit more and we'll see how they do, d, thiscoming quarter on the other hand, jon, they do still have the huge numbers and more than 400 million users on p paypal as a whole. they still have the feeds and the sofis and the robinhoods and coinbases of the world and they're still trying to figure out how to convert those users that are more lucrative. >> life comes at you fast. we'll see what you can do. many companies are looking for newer talent new today, lowe's is extending its college benefits program using gild, formerly gild education debt-y from. so i spoke to the company's executive vice president of hr earlier today on fort knox for the full interview head over to our linkoid in page here on
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tech check, stocks are firmly in the green today building on yesterday's gains. the nasdaq up, let's see, about 1.5% we're back in a moment
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hey, good news if you missed part of the show, don't kick yourself. you can listen to podcast. it's available wherever you usually download them. you can subscribe and follow today. that's the "tech check" podcast, d? >> and one more thing, that is google's ramped up investment in real estate announcing another $9.5 billion in u.s. office space and data centers that will lead to the creation of at least 12,000 jobs in 2022. the plan right now is to open a new office in atlanta and expand its data center presence in nevada, nebraska and virginia. the stock is down double digits this year. as we've seen tech increasingly continue to be volatile. guys, this investment in real estate, we've had these headlines come out of google over the last year and even through the pandemic we talk about how tech workers are reluctant to return to offers and how employers need to make it attractive and certainly google is trying to do that.
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>> yeah, carl. talk about hybrid. they're spending on data centers to help people work remote and they're spending on actual office space so this remote thing, we can't overdo it talking about it, and even the companies making that own this previously dark fiber are still investing in good, old deck space >> yeah. i love this line from google and it might seem counterintuitive even as we embrace more flexibility in how we work we believe it is more important than ever to invest in our campuses and i don't know, $9 billion will get you some pretty decent facilities than nebraska, d. this is the way to do it and everyone is trying to figure out the right way. data centers and actual office deck space is a combo to get that shift started. >> microsoft doing the same thing, carl. building out and renovating the new campus
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yeah very good. guy, we've got some decent gains on the nasdaq today. at one point up barely 1.5% and the dow 128 in the s&p is 144, s&p or so. tomorrow is a very big day between retail sales, citi, we'll get taiwan semi there, as well so buckle up for the earnings season. let's get to the half. >> all right, carl thanks so much surging inflation. what all of that means to stocks and your money we'll debate that with the investment committee as a notable investor now says he is bullish. joining me for the hour today courtney gibb sop, rob sechin, and pete najarian co-founder of here in the east, the nasdaq is the big winner 1.5% and a nearly 200-point gain and there is the ten-year note yield and it's u


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