tv Worldwide Exchange CNBC August 5, 2022 5:00am-6:00am EDT
it is 5:00 a.m. in boston. here is the "five@5. as the red hot jobs market about to slow down the payroll number hits the tape. the path secured big win for energy and private equity billionaires as democrats look to pass a new version of the build back better bill little report from washington ahead. elon musk teasing very ambitious plans for thaesla in h months and years ahead he is also splitting the stock taking a page from disney. warner bros. hitting the reset
button on the ten-year game plan and hopes to restart the streaming video. and tensions simmering in taiwan war games for a second straight day. nancy pelosi still in the region it is friday, august 5th and this is "worldwide exchange. well, good morning, good afternoon or good evening. always, welcome from wherever in the world you may be watching. happy friday i'm brian sullivan thanks for joining us. let's kickoff the hour with the check on the markets and your money.mildly up higher dow up 22 points after a mixed day for stocks kind of a quiet day actually overall, a very good run lately. the nasdaq yesterday with the highest close since all the way back on may 4th. little nice run recently
we'll have more random, but interesting stats. bonds have been acting differently. bought lately and yields keep coming down. bond yields on the 10-year treasury are 2.7%. mortgage rates, if you include points, i know, are below 5% for the 30-year for the first time in months. maybe good news for the housing market in the oil and energy markets, crude oil slightly higher right now. still only above $88 after it closed below $90 a barrel for the first time since february. crude down nearly 20% in one month. it should be good news for gas prices which keep moving lower natural gas prices remain above $8 remember, they were under $3 just below the pandemic and lockdowns hit. that is a big deal for utility bill check on europe. they continue to deal with sky high energy costs as well as sky high temperatures.
no relief in sight at least from energy natural gas prices equal to $70 as electric costs continue to hit record highs there around the world, asia ending the week in the green we saw gains across the board there. look at that all green. europe is just getting the trading day started as well. again, the markets holding up well pretty much everywhere in the world. europe down a little bit overall, a decent run for them energy crisis is job number one. that is going to be the big story from europe for the year let's get the top stories stateside with kristina partsinevelos who is here with those. good morning happy friday >> yeah. happy friday arizona senator krysten sinema announcing late last night she will vote in favor of the inflation reduction act.
one that will provide spending and mitigate climate change and extend health care acts. without sinema's support, they would not have the votes to push the bill over the finish line. sinema said she agreed after the provision closing the carry interest tax loophole. it enables investment managers to pay lower taxes. 40 companies releasing a statement this morning on support of the proposed legislation. you have tesla shareholders approving a 3 for 1 stock split to attract a larger number of investors. it brings the shares into the $300 range no word when the split takes effect tesla announced the split back in march. and facebook parent company meta closing on the first corporate bond sale worth $10
billion. according to reports, the bond deal sold in four parts with the offering at 40-year note above the benchmark 10-year treasury orders reached more than $30 billion of the peak during the offering proceeds from the sale will be used for expense difs or acquisitions this could be a sign that facebook was the first drop in quarterly revenue because of ad sales. the bond sale maybe helping? >> kristina partsinevelos. big bond sale there by the company formerly known as facebook it will always be known as facebook. to a serious developing story on friday morning. the latest on the tensions surrounding taiwan china continuing the military drills in response to house speaker nancy pelosi's visit to the island this week
beijing carrying out precision missile strikes yesterday on the waters off taiwan's coast. japan calling on china to end the exercises after five of the missiles fired by beijing landed in waters near its own borders a short time ago, china announcing sanctions all on nancy pelosi speaking in japan overnight, pelosi said the u.s. would not allow tie aiwan to be isolated d not prevent american officials from traveling there it is jobs friday. the first friday of every month. non-farm payroll out at 8:30 a.m. job growth expected to slow a bit as the fed hikes rates in the effort to reduce inflation however, it is unclear if the labor market will slow enough to tip the economy into recession this is the first of jobs numbers the fed will see before the next policy meeting in september. let's us bring in lee baker.
president of apex financial. lee, happy friday. good morning good to have you back on how closely are you watching the jobs numbers how closely are you watching and listening to the fed >> watching the jobs numbers closely, brian i think things are slowing down like you said. it is still going to be job growth and in my opinion, i think the recession is still some time off in the future. perhaps not as far off into the future as previously believed. i'm one of those who says we're not in a recession right now the economy is still growing, it's simply slowing down we have gotten to the point where the economy is truly contracting when you look at all factors. >> yeah. we can argue over the technical definition of recession and technically we are in one. others argue we're not i think we lose the plot if we get into that. it may be the weirdest economy,
lee, that i've seen and steve liesman has seen in decades. some are posting guidance and others not to much how do you see it right now? it is hard to figure out on my end. >> it is extremely hard to figure out to your point, if we sat here and tried to go into it, it would be a bowl of noodles to try to see what is happening in the future it is a complicated brew that we have going on here you have different sectors of the economy that's doing well. you have different people that are doing well now we are here in georgia i was delighted yesterday. i filled up my car with gas and it only cost me $60. that is better than $80. we are getting some relief on that end when we talk about what's going on with the fed, we have to figure out andlisten as you
mentioned at the top of the show interest rates on mortgages have come down. not back to where they were. back below 5% for the first time that has actually going to have impact of increasing activity in the housing market you are going to have those things combine and i think that is going to push the fed to keep their foot on the gas longer the economy is not going to slow down the way they like it is not going to bring down inflation enough >> here's what is bizarre. the stock market is having a nice run nasdaq is up 15% in 30 days, lee, but at the same time, the 10-year treasury is back under 2.7% and the bond market indicating a major slowdown is coming i'm not sure which one to listen to >> i think it is a function of listening to both. what we are talking about here is a matter of timing.
things aren't bad all over, right? so, what we're seeing in the stock market in my opinion is listen, things really aren't so bad. the markets oversold and gained back the overselling in my opinion. the bond market says we're not out of the woods and recession may be yet to come >> yeah. what do you advise your clients to do with equities right now, lee? >> it depends on the stage i had conversations recently with clients that have new money, so to speak, and over the past month, i absolutely thought this was a good time to get into the equity markets you are sitting at the time of the conversations and depending what you are looking at with s&p down 20% and nasdaq down 30%, it's a great time. for those with a long enough time horizon, i think it is a good time for equities
be comfortable with the fact or cognizant that things may be choppy through the remainder of the year i do not believe we will test the lows back in june. this run-up, i don't think, is really the beginning of the complete up cycle. come september, i would not be surprised if we get a bit of a pull back. >> a lot of low quality stocks leading the market here as well. well said. lee baker, apex financial. thanks for getting up early. >> thank you, brian. i'll sleep we have more to do on this friday when we come back leslie picker is here with the big hedge funds and what they are doing in the board rroom paypal has something to do with it. and many of the world's biggest tech stocks up 10% or more in one month. more crazy market stats for you. later on, incredible friday
rbi on just how much money fast moving electric car owners are making and it is not on the stocks dow futures up 17. we're back right after this. another busy day? of course - you're a cio in 2022. but you're ready. because you've got the next generation in global secure networking from comcast business. with fully integrated security solutions all in one place. so you're covered. on-premise and in the cloud. you can run things the way you want - your team, ours or a mix of both. with the nation's largest ip converged network. from the most innovative company. bring on today with comcast business. powering possibilities. [zoom call] ...pivot... work bye. vacation hi!
book with priceline. 'cause when you save more, you can “no way!” more. no wayyyy. no waaayyy! no way! [phone ringing] hm. no way! no way! priceline. every trip is a big deal. in order for small businesses to thrive, they need to be smart. efficient. agile. and that's never been more important than it is right now. so for a limited time, comcast business is introducing small business savings. call now to get powerful internet for just 39 dollars a month. with no contract. and a money back guarantee.
all on the largest, fastest reliable network. from the company that powers more businesses than anyone else. call and start saving today. comcast business. powering possibilities. welcome back time for the big money movers. three key stock stories happening right now. stock number one warner bros. discovery
shares slammed after the second quarter loss on charges related to the combination of discovery and warner media sales missing forecast by $2 billion. they cited canceled contracts and slowing of streaming growth. stock hammered down 10%. stock number two is doordash up 11% sales topping forecast and the company which stock has lost half the value in a year it is well positioned to deal with softer beconsumer spending. time will tell stock number three amc. up 517 million new shares under the ticker symbol ape. that's a nod to the investors who call themselves apes the stock down 9% right now in earnings we watch the second class of shares which will roll out at
amc. still on deck on "worldwide exchange." more on the big win for the senate democrats and what support from krysten sinema can mean for the future of the now scaled back build back better agenda and big win for private equity billionaires. stick around >> announcer: today's big number 95%. that's the year over year decrease in u.s. ipo issuance through july to $4.9 billion according to sitma total equity issuance is down 80%. e fees.. it was just take, take, take. so i broke up with bad banking and moved to sofi checking and savings. now i get higher interest, pay no account fees, and get my paycheck two days early. break up with bad banking. get 1.80% interest, pay no account fees, and get your paycheck up to two days early. download the sofi app and earn up to $300
(vo) the network you want. the price you love. only from verizon. welcome or welcome back. no insider buying today. it will be back next week. let's give a bonus friday rbi. random but interesting thing you will hear cnbc style let's talk about electric cars they are as hot as the temperatures across america. ford is saying ev sales jumping 169% are y you are coming off zero. you will have high percentages ford lightning pickup truck and tesla and hyundai and kia. i like it. my prediction was a boom for electric car sales in the u.s. market one of the hardest things to do is not buy an electric car, but
get the electric car that you bu buy. many are back ordered with long wait lists what will happen capitalism will take over. a secondary market is created. look at the rivian an auction market created because people are paying to jump the wait list a friend scrolling through auctions the other day and sent six rivian electric trucks resold to new buyers i want to you look at the prices on july 20th truck sold for $97,500 there it is. 142 miles on it and the badge on the steering wheel the launch edition quad rivian went for $10,000 more. it sold for $107,500 in
california it had just 75 miles on it the other auctions were just as big with prices in some cases nearing $120,000 keep in mind these rivians retail for $75,000 while we don't know what the final price paid for each of them was, it seems likely that the buyers could have made something like $40,000 per truck just by flipping the rivians or maybe something like a 40% profit not including taxes or fees when you consider that rivian stock is down 80% from the post ipo high, it looks like the rivian auto is way better than the rivian equity. you might actually say that the market for rivian has been electric we would never say that. that's a dad joke.
hopefully it is random, but interesting. profitable to the flippers. on deck, we will switch gears. more on the payroll numbers set to roll out this morning and whether this technical recession will show up in the jobs numbers. as we head to break, reminder nudge. if you haven't already, follow our podcast on the podcasting platforms. hosted by that guy dow futures up a little bit. 10-year treasury under 2.7 we're back right after this.
stocks looking to cap what has been a choppy week with a win. futures are pointing higher. we are digging in giving you the rail. sinema signs off senator from arizona getting on board with the party's help in the climate plan we are live in washington with what is next with the massive spending bill. a growing number of high profile companies putting the brakes on adding and cutting jobs what it may signal of the health of the broader american economy. it is friday, august 5th you are watching "worldwide exchange" here on cnbc welcome or welcome back. good friday morning. thanks for joining us.
i'm brian sullivan let's kickoff the half hour with the check on the markets and money. stock futures are mixed. dow up a touch yesterday was one of the na narrowest trading range we had all year i won't say it is boring it was boring yesterday. dow futures up 37. nasdaq down. it is august a lot of people, of course, taking off for the man shonmans the hamptons yesterday, oil closed for the first time below $90 for the first time in a month. one thing i will add is oil, the physical market, what actual oil is selling opec and saudi arabia. saudi arabia raising selling prices we're showing the paper price. that is the contract future and there is a disconnect.
i warrnt to point that out gas prices are coming down wholesale gas prices are down 24% in a month that is 6% more than the price of oil remember the talk of gouging gas stations mom and pop were lining their pockets with rolls royces? gas prices are actually down more than the price of oil i guess they sold their rolls royce. insider buying segment should return next friday. right now, let's dive deeper into a nice rally for the markets lately and bring out stock stats. "worldwide exchange" style here we go 26 names in the s&p 500 risen over 25% in the past month a few of those have jumped over 40% in that time
who is winning here is the best of the best of the s&p 500 one month ago. enphase energy and monolithic power company and on semiconductor up 45% that hasn't been the top index s&p 500. in fact, the nasdaq 100 is up 15% in 23 trading days a remarkable run small caps are the next best performer. nasdaq 100 in a month. russell 2000 up 10%. what about traders top favorites across all the major indexes you don't have time to do the work we do. we dug them out for you. the best of the best of small cap to midcap to big cap are
these. axcelis tech celsius. up 60% a drinks company getting an investment from pepsi. calix. the company that helps smaller br broadband players compete. and then diebold nixdorf stock has been a disaster in the last 12 months down 58% shares are popping lately. more than doubling in just 23 trading days as good as it has been, it is not all wine and roses there are stocks that have been down in the rally and the womp-womp award. in the s&p, it has to go to newmont corporation. shares down in 23 days
all an the glitter in the market may not be gold. still good run over the last month. we have developing news from washington democratic senator krysten sinema on board with her party's big spending package paving the way for the passage in the senate ylan mui has more with what we know and what may be, ylan, from what i understand, the changes with the weird bird bath named after senator bird and parl parliamentarian rules this weekend. >> reporter: that is right, brian. they struck a deal with krysten sinema that could cement the 50 votes needed to pass the tax and spending bill. sinema got democrats to drop any changes to carried interest in exchange for support instead, two sources say the democrats plan to impose a new 1% excise tax to make up the lost revenue
carried interest provision would have raised $14 billion. the joint committee on taxation projected the previous version passed gby the house would raze $104 billion over the next decade this would allow companies to take advantage of the depreciation and it would add billions for drought mitigation. chuck schumer said he believed every democrat would support this compromise. he said, quote, the agreement previous serves the major components of the inflation reduction act. reducing prescription drugs and fighting climate change and fighting tax loopholes exploited by the wealthy and reducing the definite by $300 million the senate will meet on saturday to discuss the bill. final passage is not expected until monday
back to you. >> so let's talk more about what is in this krysten sinema saying she wanted out with the carried interest tax provision. i guess that has to be viewed as a win for billionaires i tweeted last night private equity wins again. seen as a clean energy renewable energy win as well also, maybe a win for oil and gas stocks because if there is an excise tax on buybacks, investors may look with dividend payers because of less tax implications what do we know that may get through the final bill >> reporter: to your point, brian, a lot of questions about what will be in the final text of the legislation sinema chose her words carefully and her statement saying she is ready to move forward. not exactly she would vote for the final bill and her support is contingent on the bird bath
des scrub. there is a question of cap on insulin prices which would make it into the bill some ev tax credits and whether or not those the way structured are allowable under the senate rules. there is still some question marks here it does look like democrats are coalescing around the compromise and certainly with sinema's statement, they are getting closer to that day of final passage. >> ylan, how much is this just build back better got politicized like everything does that was the president's plan. is this pretty much just build back better under a different name or pretty much an entirel different package? how similar are they >> reporter: i would say they are pretty different, brian.
this does leave out a lot of what democrats said were major priorities the whole child care and care economy of build back better is left out of the package. it is really just focused on health care and on climate democrats would say those are sk still two big priorities the price tag is smaller $740 billion as total revenue raised spending in the bill is $430 billion. build back better was closer to $2 trillion. the size is smaller. priorities slimmed down. democrats are certainly hoping to cast this as a win heading into the midterms. >> although the study says it increases in 2024. it is marketing. we get it. ylan mui, thank you very much. all right. cuts, freezes, slowdowns, re-evaluations whatever you want to call them
some of the words that executives in technology have been using recently to describe their game plan for hiring for the rest of the year and into next year. among the companies tapping the brakes on hiring is robinhood. it has its own problems. oracle, google, aemazon, apple, spotify and more the economic headwinds and straight cost cutting. are technologies cutting an isolate anned thing or bigger sign of things to come joining us now is economist julia pollak julia, welcome back to the program. how do you read the jobs market right now? >> we just got the job option and labor turnover survey data this week. that showed a slowdown in hiring in a couple of industries taken place in june. 18% drop in real estate. 8% decline in professional business 10% drop in wholesale trade.
drops that hint at further declines at hiring in coming months 29% drop in retail another big drop in construction as well. there are warning signs that hiring may be cooling down in a broader set of industries. >> i sent my team a quote from the great julia pollak yesterday. you were talking to steve liesman. i'll quote you back to you julia, you talked about what you call a dramatic reallocation of capital. i hope i'm quoting you correctly. meaning the job market -- let's be honest. it's screwy. it's weird it's hard to figure out. people vanished from the work force. you can't find enough people here, but 11 million open jobs it's a weird time. >> you have strange conditions prevailing during the pandemic
record low mortgage rates. record fast growth in house prices you have the very, very low interest rates that, you know, meant the only place you could get a return is the stock market tech companies were seeing investors throw money at them and relaxed conditions on funding. that has now changed because interest rates are rising. so investors can get a return somewhere else they don't need to accept the huge risk. of course, the housing market has cooled dramatically with the increase in interest rates you are not seeing every american try to refinance their mortgage at once in that report, we saw that the biggest decline in hiring took place not of any particular industry, but in one business size class that is large companies with 1,000 to 5,000 employees why? that's the companies that publicly traded and issued stock
and face pressures from investors. we are seeing a rebound there in tech stocks. we are seeing a couple of the things that really are dark in june and turn around now we are very much at a saddle point in the economy it is unclear whether gas prices will fall again or mortgage rates will fall or the stock market will rebound or whether there is bad news or more bad news ahead >> the unemployment rate is low, primarily, in part, because over 1 million people vanished from the work force it measures only people looking for jobs every business owner you talk to says i can't find workers. you wonder, julia, where they went a lot of people reevaluated their lives. i want to do this. i want to do something else or not do anything. i wonder how they are paying
their bills. how do you see the job market -- the jobs number hasn't mattered for two years because of the pandemic it may matter again. how do you see the macro framework right now? >> i think the jobs report is the most important one of all. there is such enormous uncertainty. the best case scenario is that the fed can raise rates a little bit and inflation is responsive. inflation will come down by itself for other reasons like decline in shipping and trucking costs and gasoline prices and the stock market, the price of the risk of inflation. it will rebound. companies weathered the storm with the double digit profit margins and sitting on trillions of dollars these the best the worst-case scenario, the fed raises rates a lot to get ahead of inflation past inflation episodes, fed had
to raise rarttes above inflatio to bring inflation down. larry summers scenario the companies see a large decline in consumer spending and revenue. that is a painful scenario which the unemployment rate rises to 6% as larry summers has been warning. it is unclear where we are whatever you have that uncertainty, you see companies pull back. hold on investments and wait it out. that's another factor at play here >> well said the only thing that does seem clear is the unemployment is not a measure. they cannot find people. julia pollak, thank you very much have a good one. all right. big buys from out spoken investors and hedge funds are not new. carl icahn and the list goes on.
with imagine other deals on the rise and two high profile investments from elliott management this week alone, are we on the head of the hedge fund boom leslie picker is joining us. >> reporter: brian, yes. we saw an up tick in the first half of the year, but off the highs of the pre-pandemic era. 390 companies targeted 7% above the first six months of 2021 the second half is ripe with activity elliott confirming stakes in pinterest and paypal this week alone. the ecosystem is buzzing with bankers and advisers to companies and telling me they are expecting an unprecedented second half of the year. >> we are setting up for a good year if it continues at this pace, it is likely to be a record year
for activism unless there is something major, there is something that disrupts the markets, there should be activity in the back end of the year. >> markets, of course, are a key driver with valuations stabilizing for many companies at lower levels. that is true of growth tech which has been forbidden fruit among activists because of the dual class share trucstructures i'm told that activists like elliott are not dissuade there is also a rule change and this is important to know now because it is coming down the pike in september that may favor activists as it pertains to something called the universal proxy. allowing shareholders to vote on
directors as to management or the dissident. experts believe this could allow activists to get one or two board seats where prior they may not have gotten any. they are saying give it a shot that is what experts are expecting, brian >> i think you and i are good friends. we high five in the hallway when we see each other. we see the same way. you know me, i won't call them the a word i call them corporate raiders. i'm old enough to remember they used to be called corporate raiders. now activists. i wish i had that platform i said i would not say it, but i did. what kinds of demands are these kinds of investors making from boardrooms right now, leslie what do they want? >> i will add to that, brian, a period of time where they also
rebranded from activist to constructionist. some are going with that explanation as a way of saying, we come into the boardroom and help you we give constructiontive advice. in terms of the demands in the boardroom, i'm told it has to do with m & a transactions. sell a company buy another company. spin off that division operational changes are picking up slim your work force or pivot to the type of r&d that is hard to do activists are shying away from that >> people used to call me a talking head i got my pr people to change it to global thought leader i think -- i prefer the latter,
i think. >> next up, davos for you, brian. i don't know if that is positive >> davos man i love it. leslie, thank you. they won't let me in davos coming up, stock buybacks, recessions and expansion plans oh, my phil lebeau lays out the take aways from the elon musk company over the shareholder meeting. and as we head to break, key money movers lyft lifting off with the rebounds volumes on track to exceed pre-covid levels going the other way. zillow shares taking a hit from the home buying business third quarter revenue falling from a year ago. expedia jumping on solid earnings more people still getting out w d traveling. dofutures up 13. we're back right after this.
welcome back let's talk everybody's favorite company or everybody's favorite stock. tesla. elon musk taking the stage for the shareholder meeting. ceo touches on topics from teasing the share buyback and his 2 cents on recession and potential plans for another gigafactory. phil lebeau with more on what we know wide ranging and i would call it fun sort of muskian view from
tesla. >> he wasn't negative. he was even keel you never know what you get with the annual meeting especially in the q&a period he talked about a quite variety. brian, let's start off with the economic views this will get a lot of attention today. in particular, the belief that he believes we will have a mild recession. he thinks it is likely maybe it will last 18 months he says we are past peak inflation. he says they are seeing rapid inflation drop as they look at future commodities and start forecasting we go out six months and here is what we see with the commodities we need with the vehicles we're building. speaking of building vehicles, a gigafactory, according to elon musk is likely to be picked next year he did not hint where this might happen he says we might see a site picked by the end of the year. the model y, he believes, is the best selling car in the world
next year. to put it in perspective, they sold $500,000 last year. the best selling vehicle last year was the rav 4 from toyota worldwide sales of 1.13 million. here is musk talking about the goals of tesla and possibility of hitting 100 million vehicles in total sales within ten years. >> i say 100 million is pretty doable i'd be surprised if it is not over 100 million in ten years. >> remember, they have talked about a goal of 20 million in annual sales at some point in the future you can see why if they get anywhere close to that and nobody saying that will happen any time soon, brian if they get close to that, over time, you could add up to 100 million vehicles sold quickly. just over 3 million so far
share buy anback is likely we will have comments all day long from elon musk from yesterday's annual meeting brian. >> you know, phil, i don't want to give tesla too much credit. i should they seem to have no problems with supply chains or critical minerals all we hear from every other company -- >> that's not true that's not true, brian brian, that's not true not to the level of other automakers he talked about that in the last couple earnings calls. they had supply chain issues i understand we want to give him credit they handled it initially better than other automakers and to a certain extent, they handled it better they had supply chain issues. >> when he talks about we're the best selling car in the world, he is obviously saying we're going to be able to make them. we'll have the materials to make
these cars >> oh, sure. yes. look, the auto industry, when it comes to the chip crisis, is coming out of it over the next year and a half. we're already seeing an increase in production. it is a gradual one, but there is a steady increase in production happening around the world. we are seeing it here in the united states. that is expected to continue, brian. when he talks about it being number one in the world, yes, they believe they will be able to build more model ys that is not a surprise what we are seeing with austin and with germany and it is an increase in production that will accelerate over the next year. >> big stuff mccocoming from th tesla shareholder meeting. phil, thank you. let's take a short break we are back with lindsey bell of allied investments after this
when hurting feet make you want to stop, it's dr. scholl's time. our custom fit orthotics use foot mapping technology to give you personalized support, for all-day pain relief. find your relief in store or online. 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. i am vince lumia and we are morgan stanley. let's talk markets and your
money. joining us is lindsey bell a cnbc contributor we have the monthly jobs number out today and the cpi which is even bigger next week. what are you closely watching right now? >> both of those are the key indicators we have our eye on. let's get through the jobs data. we are supposed to see continuation of the weakening this week in the jobs data we are going to see a slowdown of the number of jobs added in july from the first half of the year that doesn't mean that the wheels are falling off the bus within the jobs market i think it is still really tight jobs market. wages are rising people are returning to the work force. the bottom line here, brian, is that demand for workers is still out stripping supply >> yeah. it does. i wrote the other day that i
felt revolving debt with rising rates may be the biggest threat to the economy i understand debt service is still low. not historically low, but close to it. it is rising i think that may be the biggest threat to the consumer economy right now. how do you read it >> i think that is something we definitely have to keep an eye on ov overall, with a consumer, i see a healthy consumer at the end of the day, it comes down to having a job and seeing wage increases that can help at least keep up with some level of the inflation we are seeing granted, consumers are digging into credit. they are using credit cards more to pay for the higher prices of goods. they are still spending on a real basis it is still up the consumer is not willing to give up on spending. especially on services and experiences they have not been able to spend on the past
several years. they have a decent amount of excess savings they worked through 45% of that. that should get us through the beginning of next year so, overall, i think the consumer, when you look at them right now, they are on healthy ground i talked about the jobs market like you talked about credit there are moving parts we have to keep our eye on >> in the jobs number coming out in two and a half hours time i won't blink until that number comes out. lindsey bell of allied investment i appreciate it. thank you. folks, that's it for us on "wex." i'm co- piloting "squawk box" on monday and tuesday return to new york city. have a great friday and great ekd.ween thanks for watching. "squawk" is next see you next week. take care.
good morning welcome to jobs friday economists expecting a slightly cooler pace of hiring that we saw from last month from june's numbers. predictions are straight ahead. senator sinema signs off on the swing voter for democrats. voicing support for the reconciliation bill with one big change on taxes. we take you live to washington. warner bros. discovery shares fall after the earnings
call yesterday we have a round-up of what we learned about the lineal cable and streaming business it is friday, august 5th, 2022 and "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm andrew ross sorkin along with joe kernen. becky is off today we have a big friday, joe. this is going to be something. a lot of news as well. let's show everybody u.s. equities for a moment before we get to a lot of that news and including the jobs numbers which may move this later. dow up 45 points and s&p up marginally the dow closed the highest level since may 4th fo