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tv   Power Lunch  CNBC  August 1, 2022 2:00pm-3:00pm EDT

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>> absolutely. it's seen as one of the more speculative coins. bitcoin, within cryptocurrency emerged as a little bit of a safe haven and it seems to be more stable and people are more comfortable taking on more risk and consumer sentiment is increasing -- the smaller cryptocurrencies and those rally often means more risk taking. >> thanks, kate. that will do it for the exchange "power lunch" starts right now ♪ ♪ welcome to "power lunch. i'm contessa brewer along with tyler matheson here's what's ahead. how's the economy doing? that depends on who you ask. w we're looking at it from three distinct points of view. could big tech about to go on a big buying vee we'll tell you what is on the shopping list for microsoft, google and amazon as valuations
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drop tyler? >> welcome, contessa, welcome, everybody. >> the percentage terms are still not too bad. these are modest declines considering july was the best month for that index in a year and a half why did it feel that way it didn't, frankly, because june was so bad boeing helped me to keep the dow aloft right now the company avoided a strike with the late-night offer and getting faa approval for delivery of its dreamliner global payments leading the s&p. the company reporting a loss for the quarter, but saying it has agreed to buy the competitor evo payments and that stock up 18% in the past month, and the biggest losers on the day. they are travel stocks royal caribbean hit the hardest as it tries to raise another $900 million every stock in every industry
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dependent one way or another on what happens over the u.s. economy over the next few weeks and months the fed, the inflation factor, consumer spending t all matters greatly to your investments so we have our reporters looking at the economy from all angles to tell us what's really going on steve liesman is listening to ceos and steve kovac from big tech and bob pisani following the money on wall street steve liesman, we begin with you. >> thanks, tyler the message from the c suite is more mixed and nuanced and somewhat upbeat than the predictions of recession that we're getting while walmart and best buy have offered sobering negative use, there were a host of other ceos we've had on our air who have found the consumer spending just fine >> if you look at the business itself it's smoking and it's doing really well. >> we're seeing good activity across both the consumer and commercial portfolios, and i think that bodes well for the
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environment we're in right now >> the summer has been a blockbuster. our forward bookings into the fall looked very strong. we see steady recovery in business travel. >> earnings overall up a decent 7.7% compared with a year ago and all s&p industry sectors are beating on revenue and seven of 11 are beating on earnings goldman sachs, writing in the commentary this morning and management guidance is consistent with continued revenue growth in q3 and full-year capex expectations were slightly higher since the start of earnings season several ceos telling cnbc that the job market remains tight suggesting they're not about to let their workers go and that could help the slowdown. >> as they go back up to the prior quarter, better than, but those ceos that you quoted there, they're pretty bullish looking ahead. others maybe not so much,
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though, i sense. >> i think that's right, tyler it is definitely a mix you have, for example, walmart was out there with a somewhat negative view. costco with a very positive view best buy with a negative view, apple with a positive view there's a mix out there, i think you want to be careful not to exaggerate any single anecdote out there. there are definitely problems with the low-income consumer and then that whole separate travel and entertainment bucket that we've been talking about seems to have a life of its own. >> it has a mixture. you have royal caribbean going way down and not in trouble as a company, but troubled as a stock, and you have marriott's ceo looking at it from the other side all right, steve, thanks a lot >> let's zoom in now on big tech many of the biggest companies reported the biggest results and they paint a picture of the economy and demand that wasn't that pretty. steve kovac joins us with more on that.
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>> hey, contessa not pretty indeed. we heard from apple, alphabet, microsoft, amazon and meta and all of the companies warning on weak spotses and jennifer elias reporting that alpha's ceo told employees to double down on productivity and that's echoing what we've heard from executives in meta and microsoft in recent weeks and i even asked tim cook about this last week and he told me he'll be deliberate in hiring due to inflation the message here, do more with what you already got microsoft told us about cost-cutting in small and medium businesses and assigned more tightening could be to come. also warning of, quote, deteriorating pc market that started in june, but apple told the opposite story saying demand is still strong for the high-end consumer with apple expecting iphone sales to keep, w working despite the soft environment microsoft alone said it took
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$100 million hit last quarter due to the ad market softening and meta continues to struggle competing for ad dollars against tiktok finally, execs from all these companies saying foreign exchange headwinds will continue into next year and this will hurt growth for things like apple services business and microsoft azure cloud and we're seeing price increases from the tech companies and more could be coming >> meta also suffering because when it tries to compete with tiktok some of its best known users aka, the kardashians fight back in a big, big way, but that being said are the big guys saying they're better positioned to weather whatever comes, if the small companies are cutting costs is that looming for the big guys, too? >> no, contessa, i may have painted a dire picture of the company, but the tech companies all say we'll do pretty well and weather the storm pretty well and they'll maybe not grow as much as they would like or as
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anticipated and they'll grow throughout this tough environment and meanwhile, for microsoft, it's the smaller and medium sized businesses and when i look and hear comments from the microsoft execs on cutting back on i.t. spends, you have to start to wonder where else are they back, contessa? >> that's a great point. >> thanks, steve >> what are the big traders betting what's happening next, bob pisani, examining the fund flows. >> july was a very active month for traders. some investors were betting on an economic slowdown and interestingly they were using bonds and we have a fund flow data to indicate some sizeable inflows into bond funds of all types including treasury bond funds, corporate bond funds like lqd, that's the largest corporate bond fund out there for etfs and high yields saw inflows like the yields brought high-yield corporate etf and that's also on the list. equity inflows flattish
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recently, but as technology has rallied in july and there have been notable inflows into growth stocks and the pro shares ultra nasdaq 100 it's a mouthful, but it provides two times the gain so if the qqqs and the nasdaq 100 is up 1%, it's up 2% very popular etf right now there's also been inflows into defensive ways to play the market and the opposite of this and dividend paying etfs like the invesco high-dividend, low volatility and that invests in high dividend payers that have relatively low volatility and finally, there's been a whole spate of single-stock etfs launched in july so, for example, you can now betts against tesla, it just launcheded a while and it provides the inverse of tesla every day. these single-stock etfs will be a big story in the second half of the year and we'll see dozens of them launching in the next
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active. >> i had not heard of these at all. so why would you buy a single stock etf when you could go and simply buy the single stock? >> right these are leveraged generally, so they provide usually what one or two times the upside or one or two times the down side so suppose you want to bet against tesla, for example you think it's going to be going down you can buy the essentially short etfs for a single stock now and rather than dealing with the options market, you can buy it and it's a convenience trade and you can bet against the individual stock and you don't have the issues of going out and buying put or call options and obviously, there are some issues out there about how big these will get and they do reset every single day so that's a major problem for investors to understand and they reset every day and so they only get one or two times leverage or
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inverse on that and that's where i think there will be problems with consumers understanding where they're going on >> i can hear john vogel rolling over in his grave. >> he always said he didn't like that >> thank you, bob. >> thank you so what does all of this mean with your investments our next guest says the markets are finishing a period of short covering and thinks the next few months have buying opportunities and let's bring in jerry castellini president and chief investment officer with castleark. good to see you. >> good afternoon. do you think inflation is peaking and do you think american consumers think it's peaking? so two questions the first question, very much so and it's not an opinion. if you break inflation into services and goods versus food and energy, the service goods side is rolling over, and the forward implied tips number has
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gone from the low threes into the mid-twos for the most part the markets are adjusting to absorbing, if you will, this now deceleration in pricing and to be honest, i think you have separate food and energy simply because it doesn't have the same impact in the financial markets. >> it may not have the same impact in the financial markets, but i'm willing to guarantee you that more americans look at what they're paying at the grocery store and at the pump and use that as the gauge of inflation >> tyler, you're dead right, and i think you've hit on it the investors look at core because we feel more tethered to that there's no question the collapse in consumer sentiment is everybody walking to the grocery store, and think about both of those oil and energy
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for to be accelerating level and wraud have to get to 150 and that's wanting is the prices arity rid now. >> the prices are dropping and they have to readjust. so with that being said, where do you see some opportunities for growth if you're investing right now and if you think inflation has peaked where do you put your money? >> so three basic areas. the first thing is, there's no question you shouldn't hedge the inflation question, right? you shouldn't ignore and believe at all going back to the 2010 decade it's not likely and it's not possible so you should own the stocks that have the highest correlation and the most likely part of the cpi going up which is energy. just own these big, exxons, schlumberger, southwest energy and own the names simply because
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they're the cheapest stocks in the market and if the price of oil stays around here most companies will continue to flood their shareholders with share buybacks and hold that on one side and on the other side i think after nine month of getting obliterated in technology, but when you described this a couple of minutes ago about what the company's reported doesn't that give you more confidence that you're buying the stocks at attractive prices. it gives you the top option. >> you are recommending ulta beauty, nike, and a company that i cover closely las vegas sands which by the way, has just come out of a complete casino shutdown in macao. pre-pandemic got 65% of its revenue. it sold out of las vegas and it's received this massive rebound and pretty much relying solely right now on the rebound in singapore why do you like that stock when it comes to consumer
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investments? >> quite simply because there are two sets of consumers in the world that matters and the chinese consumer if you remember how soon you came out from the stock market perspective in 2020, give china a six, nine-month head start on this ask don't be surprised at how a name like las vegas sands pace because it will front run coming out of the lockdowns and what you said, singapore is already in business and doing fine so you own a great call option there. >> i was on a call with an investor i respect a great deal last week and he described basically a bar bell approach and count it two for the bar bells. he was saying on the one hand, buy the great chevrons, exxons and schlumbergers and on the other hand, leave some room for what could potentially be a ten bagger, something that maybe isn't as common place as an nvidia or a microsoft, but
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something a little more -- a little more roar in the tank >> that's my southwest -- and that could be its impact >> all right fantastic, jerry good to see you, man >> appreciate it >> coming up, tech valuations have come back down to earth could that mean the tech heavy weights could pick up some bargains and we'll tell you where they could look. david einhorn buying shares of twitter and he thinks the company has a good shot in the lawsuit versus elon musk and 'lha tt story and a lot more "power lunch." this... is the planning effect. this is how it feels to know you have a wealth plan that covers everything that's important to you. this is what it's like to have a dedicated fidelity advisor looking at your full financial picture. making sure you have the right balance of risk and reward. and helping you plan for future generations.
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welcome back to "power lunch," everybody. it's no secret that tech valuations have fallen for 2022. can that mean that some companies are ripe for a tickt takeover our next three, amazon, alphabet can go on a shopping spree m mark they bought a health care company last week. they bought a gaming company a few months back. do you continue to think that they are in the market and if so, what for >> it's a great question you're absolutely right. microsoft has been shopping.
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new management a newer management team increased significantly the amount that the company was acquiring. they've been constantly looking at possible acquisitions and they started buying more and more and putting out that they were a successful serial acquirer and then they bought cirna -- i'm sorry, they bought nuance in the health care space. they bought activision in the gaming space and they're likely to continue with more. what are they going to do? first of all, i think that it's going to be a lot more small acquisitions because the company is looking to easily add on the whole build versus buy decision and looking where they can to be able to buy the assets especially at a good price that can accelerate their coming to market you're seeing a lot of that already within the a.i. and cloud space where they're making acquisitions there, and you see them in the gaming space as they're buying game studios. microsoft has aspirations with
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microsoft game pass to be the netflix of gaming in which you'll have a subscription model to multiple devices and so thai need to own a lot more games which will also monetize the game purchases they need to buy a lot more game studios to keep adding and likely they continue to acquire beyond activision, but likely much smaller ones in the space >> so let's move on with amazon which has some restraints around it, i would think, because of concern over government coming in and saying wait a minute, we have an antitrust problem here they've recently bought a health care company and they've been active in buying content for their video service and beefing up amazon prime with sports deals. why do you think they could be active >> so all three, microsoft, amazon and google are being very
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careful about the regulatory issues and the possibility of the regulators getting issues and you see the activision that will likely take a year and a half for that deal to close. amazon and google are even more concerned than microsoft is for a lot of historical reasons. amazon, look, they have a broad base in terms of what they are acquiring and they've been buying a lot on the entertainment side and they want to be adding to prime and they want to make it more powerful and they're spending a lot of money in the space and we've seen microsoft buy it with nuance and oracle with cirna, so health care is a key area for all of these vendors and they'll continue to buy in cloud and probably spend less than microsoft has been, but they, everyone has their eyes open to look, what could be the next adjacent market they can move into so it's within any of these three could be someone we expect or it could be radically
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different as they keep looking for the next pillar of growth for the businesses >> you know, when you're looking at metaverse when you're looking at entertainment and contact creation, you mentioned video gaming i'm curious, gaming meaning gambling and whether these companies, all three and we know that there's some interest in sports, whether that leads them toward this path toward sports gambling as that market explodes in the united states >> it's an interesting question. i suspect i would rather be the let platform that they'd run on than be the sports gambling company and it creates a whole host of issues from an investor point of view, et cetera, et cetera, to the extent that they all want to be the plumbing that everyone else runs on and that's a gray area that everyone goes into it is unlikely that they would make meaningful investments to be able to offer more than the
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technology than you would build some form of a gambling platform. >> and it's interesting. the biden administration's opposition to some of these big mergers in the way that the regulatory overhang has to factor into whatever happens next mark, thank you so much for your perspective. we appreciate it >> up next, what's in the cards for -- i keep bringing it up and i am so interested what's in the cards for casinos and gambling stocks getting good news out of the united states and bad numbers from china details next these names led the bounce back from the market bottom, but should you bet that there's more room to run? we'll trade them in today's three stock lunch. we're back in two. and you get this... you could end up with this... unexpected out-of-pocket costs. so if you're on medicare, or soon to be, consider this. an aarp medicare supplement insurance plan from unitedhealthcare.
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bubbles bubbles bubbles bubbles
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there are bubbles everywhere! as an expedia member you earn points on top of your airline miles. so you can go see even more of all the world's bubbles. >> welcome back to "power lunch. you can add massachusetts to the growing list of u.s. states that will allow mobile sports betting following a late-night deal reached in the legislature and no ban on advertising and so you will see lots of ads around fenway park. draft kings is based in massachusetts already. the stock on the rise today also based in massachusetts, wynn resorts, pen and mgm will all have sports betting businesses
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and we'll keep an eye on them, as well and then, of course, wynn has a big focus in macao. las vegas sands we were talking about they're bouncing off of their session lows and shaking off. when i say weak it is a massive overstatement or understatement. the numbers came in for macao for july they have 1.6% of 2019 gaming revenues quote, we didn't think the market could get any worse we were wrong. it's been really troubling >> yeah. >> all right so what we know now is that the united states has this massive appetite for gambling and the consumers in las vegas are still going there spending gas prices and food prices have not discouraged them at all and they keep setting and we got june gaming revenue numbers and the las vegas strip set another monthly record months in a row, and it's been 16 months where every month they were seeing a new record set for what was
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earned on this trip. >> how about those casinos, the big ones you reported from one, i think it was a -- god, i can't remember it was a wynn in massachusetts, it wasn't a wynn >> encore -- >> they changed the name because of the scandal of steve wynn. >> is it doing well? >> yes it's outperforming every single prop are thor. remember, macao. >> was the cash cow. macao on. >> six to serve times the size of las vegas, but because of the covid restrictions it's really crapped out, so to speak so what you're seeing is the companies are relying on the other companies to keep them afloat in macao. >> let's get to frank holland for a cnbc news update. >> hi there. this is your cnbc news update for this hour.
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president biden will continue with a rebound case seen in a small percentage of patients treated with paxlovid. the president feels well meanwhile, covid continues to complicate vote counting in the senate jon cornyn is doing fine as he isolates cornyn gives some cushion, as they pass a spending bill in the evenly divided senate. he will be back to vote against the measure if the vote is held this weekend, however that is unlikely >> a reamericaable video of beach goers, spotting a shark after being caught in a fishing line and a man used a pair of flyers to get the hook out of the mouth and setting free into the waves. >> want sure if i'd get that close. >> good samaritans on the
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sharks the sharks were coming in close in part because the bait fish are cleaner and the bait fish are coming in close and that's why we're seeing dolphins in new york harbor. frank holland down there in maryland >> the stocks are lower for the year and we'll speak to the che of check point software and what's ahead for the industry. green light capital weighing in with twitter as it takes a big ste takinhe battle and i'll discuss that next. ♪ ♪
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90 minutes left in the trading day and we want to get you caught up on the market, stocks, bonds commodities and the ceo of check point software on the rise in cyber crime let's begin with the markets stocks are lower across the board. you've got the dow off .2% and the s&p off a third of a percent and the nasdaq composite off a quarter percentage point and the worst in the bunch and it's down as you can see here. let's move on to consumer staples, discretionary and industrials, and the only sectors higher and energy
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leading those declines now and within the staple, colgate, procter & gamble and kimberly-clark now are the leaders at this point. you can see the consumer staples are up more than a percent w we're seeing them higher, including burlington, 5 below and big lots the bond market where yields are falling to kick off the new month and rick santelli is tracking the action at the cme opi rick >> if you look at outside the two and three year yields are falling and most associated with the fed looking at the two-day of two year. you can see we're higher in yield by 2.5, 3 basis points and what was the catalyst? construction spending was the weakest in about two and a half years. minus 1.1% and a real shock there and of course, prices paid though on the good news side dropped 18.5 points.
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that's historic in and of itself, and of course, that helped the longer treasury parts of the curve look at the two-day of ten-year and the ten-year down four basis points and 30-year bonds are off eight basis points and the curve is flattening and a stagflation and the flattest in 22 years and you see it, twos versus tens and hovering just around minus 30 basis points and that's not the real recession spread and many like to look at the real recession spread three months to ten-year and there's a ne-chee chart of it and look how it's dropping like a rock and it is the flattest right now in two and a half years where the other spreads the most in 22 years and finally, boom yields overseas and nine out of ten sessions they closed yields lower than the pre-seeding session and they're a 3.5 month low yield under 30 basis points and they're a poster child for all that what seems to be going
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wrong with energy in the economy and europe contessa >> rick, thank you very much appreciate it. seeing big losses today across the board. crude sitting well below 100 bucks a barrel, and pippa stephens has those numbers outside for us >> heavy losses for oil today on the back of weak manufacturing data out of china. this is accelerating demand loss fears and both wti and brent are coming off a second losing month. goldman's jeff curry reiterating his call for brent to hit 130 per barrel by the end of this year he said this morning on squawk box that the market is missing a key point and that's that while demand growth is slowing it's not contracting and supply remains tight, all of this supports prices in the back half of the year. let's check on closing levels. wti down 5% at 93.70 and brent crude at 99.99 for a loss of 3.8% and energy stocks are
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falling lower and the group is the worst performing s&p sector and they'll provide quarterly updates this week including deafon and transocean for today after the market closes. >> pippa, thank you for that. >> checkpoint technologies reported second-quarter results this morning beating estimates with a 2% gain and yet shares of the cybersecurity solutions company are down today almost 5% now. let's bring in gill shaved and with check point software technologies great to see you today here you have earnings coming in with revenues up 9% above the second quarter you have subscriptions up 14% and that's all really good news so where are these headwinds coming in? where are investors not buying into the story that you're telling? >> first, we should continue to analyze the stock market and maybe it will be in your seat and it's great to be here, but i think overall we did very good results and the demand for
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cybersecurity we see it as healthy and continues and unfortunately, the need for cybersecurity is increasing and the number of attacks keep rising in a very alarming pace >> you said on the call that you're seeing a lot of the use of your system coming in through outside of country extortion through other states using ransomware attacks and things of that nature and then this geopolitical threat. so where do you see demand going at a time when we just heard this from microsoft and google that some of the smaller companies are having to cut costs? >> fefirst, the demand is high d every customer large or small is indicating the area and we still want to invest success, my advice to people is not necessarily to spend more money and it's actually to do the right thing, to consolidate solution and it's focused on solutions that are preventing the attacks. a huge parts of our industry is
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about detecting that you've already been reached and that's too late and we need to invest in prevention in stopping the attack before it hits and you can go on and on and not everything is about it anymore. >> where is your growth happening? are you fully exposed in markets like the united states, and are you getting more growth now in emerging marketses >> we are all over the world the first half of the year was very, very good. in the american we to improve the biggest markets are in the u.s., but to think in the last year redid recover and we did invest for a lot in the u.s. in the first half of the year and we saw very healthy growth in the demand for the u.s. for us, but it's u.s., europe and asia and it's the three major markets. it's across all sectors. actually, the last quarter our small business sector grew very,
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very fast and it's still relatively small, but it was the fastest growing sector and also equally speaking in the large business which is the bigger part of our business. >> two quick questions, if i might. one is this, my sense is that the -- that the reported number of attacks is underreported, and that -- and that companies and governments don't want to say how much are being tweaked and attacked am i right or wrong about that >> i don't know if anyone knows about all of the attacks we're stopping most of the attacks. a typical organization is being attacked about a thousand times every week and every certain sectors that are being attacked and more than 200 times a week >> the good puz are news is like the physical world >> here you have to be attacked
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many, many times every single day. >> if you have the banking sector, i've talked to executives there and they said they're testing our defenses every second how have the nature of the attacks changed over the past two years? >> it's definitely becoming -- the attacks are about coming far more sophisticated what we call fifth generation, gen-5 cyber attacks are becoming now a daily thing. we are seeing, i mean, the tools that have been developed by a nation state organization are leaking to the internet and a year or two later there are the tools that every kid or every criminal group is using and total attacks and let me squeeze one more in quickly before i might. when you go to bed at night, who or what do you worry about most? do you worry most about organized criminals and do you worry about russia, iran, china,
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north korea, and who is the biggest spector out there? >> all of them and there's very little distinction and it's the same tool used by everyone in governments and criminal groups to help them and the criminal groups which are the tools developed by governments and we've seen costa rica being extortion by a criminal organization, and it's all over. >> all of the above. >> a, b, c and d thanks very much, gil. we appreciate it >> thank you very much thank you for being here. >> still to come, there's a lot at stake between twitter and elon musk. we wi we will discuss the latest fund to back the social media giant
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you're a cio in 2022. so what's on the agenda? threat briefings, it meetings, and lots of coffee. but with fully integrated security solutions all in one place. you're ready. comcast business. powering possibilities. ™ >> welcome back to "power lunch," everybody. twitter falling despite a big-name investor battling with elon musk. leslie picker with the details. >> david einhorn taking a stake in twitter with the bet that it's takeover by elon musk will
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close. einhorn's green light capital took a stake in the media company during the second quarter in an average price points of 37.24 per share. he didn't disclose the size of the holding and we'll get a better idea when the filings opinion they provide a $17 per share upside if the deal closes and he believes it will trade down $17 if it broke apart einhorn staking his bet in merger arbitrage fashions on the findings of the delaware court he's handicapping the odds of any other buyer wiggling out to be less than 5% joking that it's the same proportion of bots that might be on twitter's platform musk is claiming that he believes that figure is far higher einhorn said that the widely held belief right now is that musk is above the law which explains why twitter shares are trading so far below the deal value of $54.20 per share.
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it would invite many more buyers' remorse suits in the future he said the risk reward as a results is favorable that the chancellor presiding over this case will respect precedent and, quote, protect the sanctity of the court. in other words, he's betting that this deal will close, guys? >> einhorn's letter wasn't just about twitter and he sdus discussed inflation and where did he stand on that issue, leslie when i first started hearing that word pop up several years ago from big investors it was einhorn that really called that attention in a big way as a result of all of the stimulus going into the system both on the fiscal side and monetary policy side so i always like to tune in to see what he has to say on that front. on this one, he did say he believes we are in a bear market and inflation has begun to create an economic slowdown leaving less for discretionary purchases. so all of that, he believes is happening realtime in the
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economy. he did say that falling commodity prices appeared to be leading to an economic consensus that inflation is under control, but he believes that it is a transitory disinflation, that it may not stick just because the markets are saying that commodity prices are lower, there are so many prevalent forces in the economy that were more than that. >> that's fascinating. >> thank you >> ahead, three stock lunch, we'll run through the names that led through the lows and analysts think they might have more room to run bubbles bubbles there are bubbles everywhere! as an expedia member you earn points on top of your airline miles. so you can go see even more of all the world's bubbles. at fidelity, your dedicated advisor will help you create a comprehensive wealth plan for your full financial picture. with the right balance of risk and reward. so you can enjoy more of...this.
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this is the planning effect. our clients come to us with complicated situations that occur in their lives. for them it's the biggest milestone, the biggest accomplishment, the sale of a business, or an important event for their family. for them, it's the first and only time. we have seen this literally thousands of times, in thousands of iterations. ♪ ♪ i am vince lumia, head of field management at morgan stanley. whether that's retirement, paying for their children's college education, or their son or daughter getting married, our financial advisors need to make sure that they are making objective decisions, every step along the way. every time you hit a milestone, an anniversary, a life event, the emotions will run high. making sure that you have somebody, a team of individuals that have seen it before, have seen every circumstance and seen every challenge, and have your back when you need it most, is one of the most valuable things a financial advisor could provide to a family.
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i am vince lumia and we are morgan stanley.
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time for today's restock bunch. we're looking at names that have led all the way down the start of the year to the market bottom on june 16 [ inaudible names like general motors, wells fargo, an% disney could these stocks continue to rise coming off the market since 2020 let's bring in carter worth,
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founder and ceo of worth charting for his trades. hey, it's good to see you, carter let's start with general motors what is this a catch up trade to ford >> yes, that's right if yo think about it, which is how far they come off their lows i mean ford is up 44%. and now while they're no 100% correlated, they do tend to do somewhat of the same thing, so just that simple strength, we think makes a lot of sense and over the pas two years. that's an incredible offer i the s&p down 25. i think it has room to run. >> do i take a sip of well fargo? or do i pass >> yes so wells fargo in my eye any way more of round of twos. [ inaudible
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and now relative the characteristics that are available. there is this -- [ inaudible and it too has ricocheted more than the market so things like this, while they're high risk, they are high reward they're so far below trend and the question is are ther bounces finished where as many stocks, i think, have expended too much energy. something on disney, i don't think so >> why has disney been s punished, carter >> well, this has nothing to d with charts. but two things, one, of course you're not operating the business that you want t
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operate during the pandemic. >> right >> and then they took on a mountain of debt a mountain of debt >> in the fox acquisition? >> and just yes. so that is a retardant of growth, right and so is it always foreve going to have a lower multiple than the great disney of years going by probably >> carter worth, thank you ver much for the full results of th stock screener with all th names that could lead the market rally, head on over to apple's newest bond offering a sign that things might not b as bad as people fear? plus we'll share some energy reopening just now after reporting earnings a couple of beatings on both the top and bottom line raising it 2022 production forecast by 3% we'll talk about the improve outlook. it's due to better than expected well performance year to date. the company scheduletod release results after the close today.
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apple was already one of the best capitalized companies i the world, but tim cook must think now is a good time t raise even more money. >> reporter: the reason why it's interesting is because apple earlier this morning made regulatory filing. basically a place holder one and an initial perspective tha says they're going to offer four-part bond offering. so various maturity worth of
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bonds. they didn't say the number amount they didn't say anything else. but take a look at interes rates over the course of the last several weeks here, right at the cycle high so far, we'r talking about 3.84%. that was the high in terms o where we saw right now now we're closer to 2.6. interest rates have come back good amount. people have been buying up not just government debt, bu corporate bonds as well. if you take a look at what attracts it, this is the eye share corporate bond etf ticke lqd. of course, it's lost 15% of it value over the last year but look at that kind of gradual uptick that we're seeing just in the last maybe couple of month or so since the lows so as people have been returning back to the market buying up some of the appetite for tha high-quality debt, there is an opportunity for some companies who have good balance sheets like apple to perhaps rais money. now this is what's going t happen i mentioned before what's goin on it will be a four-part bon offering it will be 7, 10, 30, an 40-year maturities and the size, pricing has no yet been disclosed
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basically they put a place holder perspective in there. not going to tell you how much they're going to do or what size or rate they're going to do it at it's been run as it has been i the past by goldman sachs, b o a, and jpmorgan. what's interesting about this, tyler, you mentioned the massive amount of money they have an how well capitalized they are. as of their last quarterly report, which we just got abou a week ago, right, this past week we're talking about $179.3 billion. now this is what's traditionally been called cash for apple it includes cash, marketable securities, short-term investments, that sort o thing. but it totals about $179 billion. why would they do this because oftentimes some of tha money is not just liquid cash. in fact out of the $179 billion, guys, this past quarter only about $28 billion of it wa actually cash and short-term investments. so that's an idea for kind o how things are shaping up. >> others are following suit issuing big bonds? >> well this is a big on because apple, they have done it in the past and over the cours of the last several year
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they've been anywhere from $5, $6, to $24 billion i offerings. do they really need the money? no >> is it better to describe that than not as their cash hoard but as their liquidity position? >> or their war chest if you will something like that. but cash and stock buybacks an dividends. >> all right, thank you. and thank you for watching power lunch. >> closing bell starts right now. stocks are mixed as we hea towards the close up and dow session here on wall stree following the market's bes month since 2020 the most important hour of trading starts now welcome everyone to closin bell, i'm sara esen. and we're making a little push right now. the nasdaq is positive right now. a little undecisive trading.


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