tv Worldwide Exchange CNBC June 3, 2022 5:00am-6:00am EDT
it is 5:00 a.m. at cnbc global headquarters. here is your top five at 5:00. investors bracing for the latest read on the u.s. employment picture with the may jobs report due out at 8:30 a.m. eastern time looking for any signs of slowdown as inflation continues to burn white hot. president biden in a primetime address to the country calling on congress to act in the face of the string of mass shootings in the country one state is not waiting for federal action in new york, albany passing
new restrictions on crypto and crypto mining. it is all about the carbon footprint. with gasoline at all-time highs, we explore the actual breaking point when demand destruction is reality and later on, it is not just jamie dimon, elon musk has a very bad feeling about the u.s. economy. it's friday, june 3rd, 2022, jobs friday. you are watching "worldwide exchange" on cnbc. good morning welcome to the show. i'm dominic chu in for brian sullivan let's kickoff the hour with the check on the markets and your money. stock futures in the red modestly so. dow implied lower by 72. nasdaq by 12
59 point declines for the s&p. this is after the averages ended the day modestly higher. the dow, nasdaq and s&p are now on track for back-to-back weekly gains. also now checking what is happening with the bond market a driver of the action these days right now, ticking higher is the 10-year treasury is 2.92%. the 2-year note is 2.64% in the crude oil market, crude oil prices are under a bit of pressure u.s. benchmark west texas intermediate is off .75% ice brent crude is $116.73 off .75% as well this comes as nbc news confirms
president biden will head to saudi arabia this month and hopefully find a way to bring more oil on to the market here a busy morning for cryptocurrency bitcoin and ethereum at least mixed in trading bitcoin prices are $30,392 continuing to move above and below the 30,000 mark. we have .50 losses for ethereum. we will get to the latest o what is happening, but a check on the top stories outside the markets. silvana henao is here with those. good friday morning. >> good morning, dom the actix is e is coming down o tesla. the electric carmaker needs to reduce staff 10% in the email, pause all hiring worldwide. having super bad feeling about the economy.
tesla not immediately available for comment. shares of tesla are down more than 26% this year the fascinating of unionization efforts, apple is agrees to make work schedules at retail stores more flexible. according to bloomberg, the company says the changes will take effect in the coming months and include such things as minimum of 12 hours between shifts an increase between the current 10 and maximum of three days a week when employees can choose to work late shifts and won't be scheduled to work five days in a row. a change from six. new york state passing a bill to ban bitcoin mining for two years. it heads to the governor's desk. once signed into law, it will ban blockchain infrastructure.
lawmakers say they are looking to curb the state's carbon footprint by cracking down on mines that use electricity from power plants that burn fossil fuels. the early morning vote comes as the attorney general letitia james says crypto currency investors have lost hundreds of billions of crypto in the market turmoil last month and virtual currency assets are subject to bubbles and security issues, dom. thank you. let's get back to the comments from elon musk that silvana henao highlighted. on wednesday, we heard from jamie dimon at jpmorgan chase who is warning to prepare for an economic hurricane those are his words. saying, quote, we don't know if it is a minor one or super storm sandy. you better brace yourself.
this morning, elon musk says he has a quote super bad feeling about the economy and is pausing all hiring at tesla and slashing staff by 10% let's discuss this with josh wein at hennessy funds josh, this is something we have talked about for several months now. the market is tight and the economy is well and we have policymakers saying we obtained full maximum employment. does it worry you to see the tiny cracks evolving at this stage of our market cycle? >> good morning, dom yeah it doesn't seem terribly surprising we're near peak employment we are getting tough numbers from retailers target, walmart recently what used to be called restoration hardware issuing poor died guidance
that says a lot about where we are in the economy how far can it get i don't think any of this is surprising i think these comments about the economy taking a turn just reflects how good things were, not how bad we're going to be. >> josh, many times traders and investors and viewers of our network tend to look toward the technology sector or parts of the media sector as one of the leaders. the leadership group and overall market or the economy. it has been certainly that way since the emergence of the great financial crisis does it bother you that some of the big tech companies, the ones initially starting to pause hiring or cut jobs outright? >> i don't think it bothers me it makes sense we saw yesterday some guidance from microsoft that was at least for a couple of hours worrisome.
the stock ultimately rallied into the close it makes sense these things go in cycles. tech certainly led the wayfor better part of two or so years i think the next leadership is value and perhaps utilities which are represented in an i incredible value and strength. it is the way the market works >> if that's the case, the value trade has been leadership now for what you can argue as maybe a year or more at this stage since the emergence of the depth of the pandemic and whatnot. if you look at that, does it give you some pause, this idea, that value and maybe utilities and staples like energy has run as much as it has already? is it still a buy all though we have seen the moves higher with the utilities and staples names?
>> sure. energy is dependent on the price of crude and natural gas to some degree i think utilities have a lot of legs in them i think that story is a lot more stable inherently more stable than classic production company utilities and in an environment where growth is slowing and we're looking at 2.5% on gdp this year which is ratcheted down from the mid 3 and 2% next year and lower the following year in that environment, growing the bottom line from 5% to 6% a year is consistent which is a compel compelling story that visit is something investors will appreciate more and more >> do you have a favorite stock pick you manage money for a living, j josh >> the in utility fund, we focus
on transmission of natural gas utilities and pipelines and lng. i would point out natural fuel gas. integrated company with upstream assets in the utica and marcellas and gas utilities serving pennsylvania and new york 51 consecutive years of dividend increases of the prolific free cash flow generator and looking to take the cash and build up the utility side of the business and chesapeake utilities 19 years of growth dividend and strong rate of change in the dividend just traditional gas utilities serving the mid-atlantic and sout southeast. >> josh, before we let you go, we add your voice to the mix you heard the comments as we introduced you
jamie dimon says an economic hurricane is coming and elon musk with his outlook. what about you >> you can't have it both ways you can't say it is going to be bad or really bad. i would say it is a rain storm after the rain, the sun rises. the market is different. the market looks much farther ahead than we talk about the economy. i think the market will wait it out. there is sunshine as far as the eye can see. we are set up for a didgood ral >> thank you, josh when we come back on the show, big money movers including kohl's back on the auction block. shares are soaring.
exchange." time for the big money movers. shares of kohl's higher ahead of the opening bell retailer receiving competing takeover bids from sycamore partners and franchise group sycamore is looking for the department store chain in the mid-50s range a share. franchise offered $60 a share. pinning the value at $7.5 billion. the kohl's board is expected to meet to review the bids in the coming days. shares are up in the pre-market trade. frontier will pay spirit $250 million breakup fee if regulators block a merger between the carriers the move comes as spirit tries to win investor support for the merger and fend off a hostile bid from jetblue it raises concerns over iss
which cited the lack of a breakup fee for the reason for the recommendation that spirit investors vote against the deal. spirit ceo ted christie will join phil lebeau on "squawk box" at 7:20 a.m. eastern time. and two weeks after an announcing plans to stop hiring, coinbase will extend into the foreseeable future they will pull job offers from the blog post yesterday. after assessing business priorities and current head count and open roles, we decided to pause hiring as long as the macro environment requires coinbase it lost 70% of the value this year in the selloff of cryptocurrency is the driver behind that. shares down 1.5% in the pre-market trade let's get to a bonus big money mover. shares of lululemon higher this
morning. the company outperforming e expectations on the profit and revenue side the company also raising full year outlook expecting the momentum in the business to continue despite broader economic headwinds including head hot inflation and, of course, supply chain concerns shares are up in the pre-market. joining me now is jessica ramirez at jane hall and associates jessica, this story about lululemon has been ebbing and flowing for a while. the agthleisure trends has been continuing for the pandemic and does it continue >> good morning. with lulu, it is interesting they have been able to continue their momentum and the consumer has been responding to them because they are following what the consumer is interested in. they have talked about going
into tennis and golf and hiking collection that is coming up as well i think there are hobbies that the consumer adapted quicker than expected during the pandemic and they kept the activities going a particular consumer despite headwinds, that is not affected at this moment we are hearing a lot of consumer going back out there is a priority for going out and occasion wear and return to office. for the consumer that lulu is speaking to, it still has longevity. i don't think comfort is going to go away there is a balance between the two. again, in some occasions for some retailers, there is a priority that the consumer is seeking to spend their dollars for lulu, it is not much of an issue. >> jessica, it is rare these days to talk about consumer retail brand that is as optimistic and we'll say that on
the relative basis as lululemon was during its report. what is the main driver for the coming quarters and years about lulu we heard about the expansion of the men's line and do they want to doing something different with the product mix and attack different markets? what is that thing that gets lulu inn investors excited >> i think we have admired and continue to see them work on it. it is a lifestyle. the category and they look to the experience is you can go in and purchase something for footwear there are beauty products. a lot of accessories that are complimented to the lifestyle. the membership program you can buy online and pick up in store you have the events.
it tapped into the consumer in almost every single way and the way they carry their life. that has longevity as soon as they understand more and more where the consumer issing is going and consumer is interested in, that is future proof for the brand. >> the brand is key here that's what separates lulu and lifestyle side of things what about the competitive environment? the brand has to hold up there are a lot of competitors out there. i own lulu products and own others from smaller competitors that are encroaching on products that lulu makes. how do you extend that brand and power over the competitive environment that we see develop inathleisure >> it is not just smaller brands and bigger brands, but retailers bringing out the private label
lulu has proven it has loyalty once you have that and once you become that, you might dabble into another brand try it out this is something you can mix and match. there is that brand that is sticking when you look to men's, it is growing and growing. there is something to speak to when you look to the fabrication and lulu for men, that product is product to take to the office you know how the consumer sweats they fully understands how the material works it is smart fabric a lot of athleisure companies h that have come up lack that material or strength in that material lulu becomes another winner. >> lulu trade. positive by 2% jessica ramirez, thank you >> thank you
good to see you. still on deck for the show no sale sign no problem for nike co- founder phil knight in the pursuit to buy an nba franchise that story is coming up when we return on "worldwide exchange" after this >> announcer: today's big number $646 million that's how much north american companies spend on 12,000 robots during the first quarter of 2022 according to the association for at tnced automation. th'she most ever purchased in a single quarter. thier lo lik? cvs can help you support your nutrition, sleep, immune system, energy ...even skin. so healthier can look a lot like...you. cvs. healthier happens together. want more from your vitamins? get more with nature's bounty. from the first-ever triple action sleep supplement. to daily digestive support.
all right. markets now implied fractionally, i'll call it lower at the open. dow jones industrial average down by 85 points. 14-point losses for the s&p. tesla is a big part of the nasdaq weakness. dow gainers in the pre-market. dow, mcdonald's, cisco, walgreens up fractionally in the pre-market trade so far. as for the laggards, boeing, apple and microsoft. down between .50% and 1% let's get a check on the other top phillip mena has more. >> president biden is focusing on the wave of mass shootings in
america. he outlined proposals he wants congress to act on he wants to raise the purchase r age from 18 to 21. on the state level, there has been movement. new york lawmakers passed legislation to ban anyone under the age of 21 from owning a semiautomatic rifle. the bill is headed to the governor's desk for signature. after three-week search, an escaped texas inmate was captured and killed by police. it happened 250 miles from where he fled last month gonzalo lopez killed a father after stealing a truck the lawmakers spotted the chevy silverado. he shot at officers who returned fire we have a new scripps
spelling bee p cchampion the first time it was decided by a spell-off. >> p n-a-n-u-d-i >> moorhen >> m-o-o-r-h-e-n >> that was quick. that was harini logan. the 14-year-old from san antonio, texas she spelled 21of 26 words correctly in 90 seconds. it was her fourth time competing. this time she goes home with a check for $50,000. the crowds came out in droves to celebrate the queen's 70 years on the throne she marked the lighting of the jubilee chain across the uk and commonwealth earlier in the day from the buckingham palace balcony, the queen enjoyed the majestic flyover from the royal air
force. someone who was not impressed or perturbed was prince alou louis. he did not appreciate all that noise. i don't know why they didn't get him earplugs >> when i was that age and later into it, i loved going to air shows. i loved the noise. i will say this, it was one heck of a party congratulations to the queen phillip, what a way to go off into the weekend >> yeah. day two of the jubilee is today. >> multiple days of the party. phillip mena, thank you. straight ahead on the show, on this jobs friday, a look at the balance of power between the employee and employer and if the scales are about to tip in a different direction. if you have not done so, follow our podcast
check us out on apple or spotify or podcast app of choice we'll be right back. think he's posting about all ncient roman coinage? no, he's seizing the moment with merrill. moving his money into his investment account in real time and that's... how you collect coins. your money never stops working for you with merrill, a bank of america company.
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destruction with the summer driving season as gasoline prices hit another record high when do we hit a breaking point for all of us consumers of fuel? and later on, the weekly exclusive insider buying segment with the massive purchase from the founder of one major retailer it's friday, june 3rd, 2022. jobs friday. you are watching "worldwide exchange" here on cnbc well witcome back. i'm dominic chu in for brian sullivan it is 5:32 eastern time on the east coast here is how your money and markets are shaping up with futures indicating modest losses at opening bell. dow implied lower by 84. the s&p lower by 15. 80-point losses for nasdaq
markets are trying to hold on to yesterday's gains. they are trying to extend the weekly win streak to two at this point. a closer look at the nasdaq futures trade over the past six hours or so. you will notice it took a sharp turn lower around the 2:30 a.m. eastern time area there. it was when we saw the headlines of tesla pausing hiring and maybe cut 10% of the work force. with regard to the nasdaq trade right now, from the lagging side of things, at least in the nasdaq 100, you see crowdstrike is down 4% micron and tesla in the mix. lucid group and advanced micro some of the losers early on in the pre-market trade with the bond yields, it is part of the narrative especially with technology trades as interest rates go higher, the shine comes off the growth stocks in tech and communications
the 10-year treasury is higher above 2.92%. the 2-year note is 2.64% the 30-year long bond is 3.08% oil prices is a key focus for investors and consumers. anybody who drives and uses fuel wti crude is $115.86 that is down .9% ice brent crude is sitting at $116.69. off .75% and then let's check on the shares of tesla. as we mentioned, lower in the pre-market trade to the tune of 3.5% ceo elon musk reportedly telling executives via email that the electric carmaker needs to reduce staff by roughly 10%. in the email titled pause all hiring worldwide, which has been
seen by reuters, musk says, i have a super bad feeling about the economy. tesla itself was not immediately available for comment. let's get to the other top business stories silvana henao is back with those. >> good morning, dom mcdonald's says it is tapping a third party to assess efforts of diversity and inclusion. this after the company's investors requested a civil rights audit among criticism over the handling of racial matters. tesla's 2017 fight against unionization according to dock uments review by cnbc, some workers looked to file for a union and the company was paying a consulting firm to monitor employees in a facebook group for discussions alleging unfair labor practices and sexual harassment lawsuit.
tesla surveillance is old news, but it is seeking greater understanding of ceo elon musk priorities where social media is concerned as he looks to buy twitter. the trailblazers received an offer from phil knight although the team is not for sale paul allen, the long teime owne of the team, died in 2019. espn reported yesterday that knight and dodgers co- owner made a more than $2 billion offer to buy the blazers and had been engaged in discussions with the allen trust. >> silvana henao with the headlines. thank you. american workers have leverage over employers right now. it's a tight labor market with unemployment near a record low people are able to push companies to offer better pay
and better benefits. they can jump ship to greener pastures the latest statement shows two jobs for every unemployment worker in america right now. as economic storm clouds gather, will workers maintain the leverage a seennior economist is with us. rucha vankudre we heard the great resignation and people leaving saying i'll find something i love. is this an environment where this thing can last for the worker are the greener pastures going to be there for the months and years to come? >> sure. when we looked at the data that came out on wednesday, we haven't seen any indication that things are changing. labor market is still extremely
tight. openings came down slightly from the previous month partially because march was revised to 11.9 million which is a record high. we are still really, really high at 4 million puts are still really high we haven't seen anything just yet indicating the labor market is losing tightness. >> rucha, when do you make that call the knock on that is by the time you see enough data points to say something is happening, it is already happened. when you look at the tea leaves right now and i'm not saying at all that coinbase anddicative oy they are not when you have the tech companies pausing or putting jobs or we have the most valuable bank in america had and ceo saying the economic hurricane is coming
how long can workers count on the greener pasture >> something for us which is a clear indication that things are changing is layoffs. we have been hearing about how tech is having increased layoffs of t layoffs. it is true this data is from april. we are not seeing that in other industries tech had a slight increase in layoffs in our data. overall, layoffs are really at a 20-year low. 1.2 million. a lot of this places the great resignation and great reshuffle has been in some of the more traditionally lower paid industries we are still seeing the puts high there and places like manufacturing and openings are still really high. while it is true things might change slightly in the tech sector, we are not at a point to say the whole economy will
follow. >> i'm not implying the economy will fall off a cliff here before we let you go, we focus on the number of jobs created out there. we know this is a high inflationary environment if workers have that much leverage, why aren't rwages goin up >> we are taking more time to adjust in general. we are hoping inflation will come down as the fed changes rates. i think as we wait for that, we keep going up at the same rate and that is unlikely employers will do other things to find ways to keep pace. >> all right rucha vankudre, thank you. >> thank you. coming up on the show. record high gasoline prices and if they are likely to head lower any time soon fr.
as we head to break, the big money movers shares of okta moving higher the maker posting better than expected quarterly results shares are still down and moving higher here. crowdstrike shares under pressure despite beating the street the stock rallied nearly 8% already during yesterday 's session. and shares of asana is lower the company is warning of a wider than forecast loss in the current quarter. shares also on the move. oil prices as well down. you arwahie tcng "worldwide exchange" here on cnbc
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welcome back to "worldwide exchange." brian is not here this morning, but we will still bring you the weekly insider buying segment. the top five stocks bought the most by the executives with their own money. the information comes with thanks to verity data. we are counting down from five to one stock five is fresh del monte produce. $505,000 for roughly 20,000 shares the ceo is a seller of stock usually. stock four is tradedesk.
the ceo buying $801,000 in shares the stock down 40% this year and number three is rivian a board member there buying nearly $1.2 million of the pete e beaten up ev maker the stock was $172 a share last year the second most insider buy was carnival cruise lines. a long-time board member buying almost $1.2 million of the travel company he was a seller of the stock last year. this is an interesting reversal. and the most insider buying this week is a very big buy and very big name it is best buy the chairman and founder of best buy, richard schultz making a $19 million pbuy. that's his first buy since 2008. he has been a long-time seller of the stock
this is a very big reversal and a name to watch. this is a segment that you will only see here on "worldwide exchange" or cnbc pro subsc subscribers. go to cnbc.com/pro you will see what happens there. subscribers get access to the data oil prices are etching lower today. the market is largely shrugging off the decision by opec plus to boost production targets questioning the move which can make up lost supply from russia and meet the growing worldwide demand it is also doing nothing to slow the rise in u.s. gas prices. the national average for regular unleaded fuel is now $4.76 a gallon with gas above $5 a gallon in seven states and $6 a gallon in california consumers are starting to have to decide whether to cut back on
driving or even other aspects of spending or extending credit and put pting on and taking on debtt pay for rising costs let's bring in kevin book at clearview energy partners. kevin, i wondered whether or not i would see at least anecdotally any demand destruction at my local filling stations i have to tell you with the summer season here, all i see is people lining up to fill up their tanks. it is not affecting anyone's spending it is more subtle and nuance than that. take us through what is happening. >> it is, dom. thank you for having me. good morning the loneliest number in math is the num rater without the denom denominator. the share of disposable income eroded by the rise in price.
we will see deliver demand response it is not something formulaic. we are now rising above 3% gas share per capita when you get 3% to 3.5%, we started to see demand year to year and monthly data. if we keep rising the way we are going, we will get there not right away it is probably the next vacation that gets canceled not this one >> it is interesting you bring that up. many of the surveys that we have been seeing and surveys tell us something. sampling error with the data collected. it indicates people are not really willing to give up that vacation or travel plans or that road trip right now. so what exactly would they spend less on in your mind if they were going to continue to spend on things like driving and
travel and everything else especially in the next two to three months >> we don't know for sure. we can expect probably a ramp in credit card debt which we are starting to see. it starts to show they are not making the compromises yet they will make them eventually also part of the lagging dynamics here. we saw the energy prices run when the prices were flat. we see energy a big component and many months which is significant. other parts of the basket are going up at the same time. the competition may be a bit more fierce for the other consumer spending areas. debt racks and capitulation comes. not right away >> kevin, the biden administration is feeling the heat from this this is one of the biggest topics of discussion right now among the american public about our economy and where it is headed what exactly can the administration do, if anything, to bring down the gasoline
prices i know in my state, the state suspended gas taxes at the statstat level. what else can be done? >> when you suspend taxes or give subsidies, you prevent the market from balancing and you prevent the voters from freaking out. a lot of what makes the most economic sense is tone deaf politics of t politics politics is leading the charge a lot of blaming and blame shifting is the easiest response the white house can give address the fundamentals exstrategic reserve drop we have risen nonetheless. you can see -- let's call it and this is an informal term mojo play date the crown prince and president
biden meeting will reflect a fundamental change in politics that can filter back to energy and maybe the gallon at the pump. >> that is a big topic k kevin book, thank you. coming up on the show, a top fina fina financial advisor telling clients where to put their money to work. we're back right after this.
over the american economy and if it can sustain the narrative >> thanks, dom, for having me. yes, we had a nice rebound in the markets since the lows of may 2020 we had a calmer environment and a positive job market will do a long way in keeping this bounce from moving forward. >> so if that's the case, what exactly, then is the market telling you about what will happen in the coming months given the fact we have seen the pull back we have seen and the kind of consolidation we are witnessing right now >> the volatility, the vix, has really dropped it really dropped below 50 it's dropped about 50% since the may 2020 lows. we had the good run. we need for this to continue we need to see some positive
feedback from the economy with the job numbers today and earnings coming up and the fed the fed meeting is important we know they will raise rates half a percent if they have some other language or give indications of more hawkish fed action, that could drive the markets back down. >> if this is the case, the market volatility right ennow is not the economy and vice versa take into account the comments jamie dimon saying the economic hurricane is upon us the question is if it will be super storm sandy or something a bit smaller. brace yourself elon musk says he has a super bad feeling about the economy and they will pause all hiring worldwide. what does that do for the overall sentiment for investors right now? >> those are two icons in our economy.
one in finance and one in industry when they make comments like that, you have to take that seriously. however, with jamie dimon's comments, the markets have gone up yesterday showed that with the strong rally again, this bounce has legs. we have seen that here clearly, i think there are headwinds facing the market. we need good earnings in july and economic activity to show some progress like we have seen. >> eric, where are you putting money to work given the back drop you laid out and your opinion of what will happen? >> clearly staying on the caution side with the headwinds we're seeing in equities, we're sticking with lower volatility and strong balance sheets and dividend paying stocks. fixed income, tax-free bonds and high grade credit.
shorter term cash instruments like t-bills. >> safe trade. eric, have a nice weekend, sir. >> thanks, dom that's does it for us on "worldwide exchange. we will see if the opening bell changes as "squawk box" picking up the coverage. have a great weekend only at vanguard, you're more than just an investor you're an owner. that means that your goals are ours too. and vanguard retirement tools and advice can help you get there. that's the value of ownership.
the big employment numbers due out at 8:30 a.m. it is national doughnut day and "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm rebecca quick along with brian sullivan joe and andrew are out today things turned around yesterday a major move the dow was up 1.3%. s&p up 1.8%. it was the nasdaq that was the big winner up 2.7% yesterday. by the way, that put all three of the averages on pace for a positive week for the second week in a row. there will would be big news
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