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tv   Closing Bell  CNBC  November 11, 2022 3:00pm-4:00pm EST

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have done things they haven't just studied it they've really done it >> yes >> thank you have a good weekended. >> have a good weekend,ing moren. >> you too. >> all right. >> thank you to our veterans >> thank you to our veterans and thank you for watching "power lunch." >> "closing bell" starts now this nasdaq rally can't stop, won't stop, up 2% after 7% pop yesterday. this is the make or break hour for your money welcome to "closing bell" on a friday i'm sara eisen take a look at where we stand up more than 2% on the nasdaq, s&p 500 up more than 1% and the dow up 0.2%, 59 points session high up 82 points. it is the growth stocks leading and small caps also out performing as well up 1.3% we have to talk about the nasdaq today, though, because it is up big again. the winners in the nasdaq 100 include the pandemic darlings which had been hit extremely
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hard in the bear market in recent months. you know the names, doccusign, zoom video, data dogs. solar stogs are soaring. john berger weighs in on his industry could be impacted by divided government in washington as we await the results of the midterm election first the market dashboard with commentator mike santoli incredible that we're seeing follow through after the stunning day yesterday and now the nasdaq having its best week since march. >> shows you, again, how springloaded we were and the fact that we've gotten past a couple things, we had a tremendous amount of focus and anxiety around the election and the cpi, by the way, we had a crypto blow up this week and has not seemed to spill over in a way that's too relevant for the broad equity market. to me it's what doesn't kill you makes you stronger now, what it all really means is we've cleared the 3900 level of
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the s&p seen as a hurdle it needed to get past and this market tends to rush to the next test and a lot of folks, both those bullish and bearish would say there's probably room to that level, the down trend line with the 200 day average comes in maybe that's the real make or break or the idea where it becomes a little bit tougher to decide if you want to continue to ride the rally. a lot of rotation going on below the surface. dollar getting crunched. defensive stocks selling off high beta risky ones, laggards, getting bought take a look at where this nasdaq pullback from the peak over the last 12 months has taken it. bofa put this together a 12-month change in the nasdaq composite. we got to a 35% loss at the max in this pullback here. obviously, we've had bigger ones that was the global financial crisis look at this, a couple episodes in 2000 and 2002 keep in mind, we're coming off a bigger high there, but not very much this doesn't mean that it
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just -- the market raced higher after the lows the 12 month rate of change was not as bad in other words, if the nasdaq stays flat this line is going to go up because it's coming off of lower levels it does show you the intensity of the pullback and you've only had it worse a couple times. that's why, perhaps, this reversion means you're buying into some of the growth as a trade. >> looking at the nasdaq gains, 8.3% this week, still 30% off the highs. some of the riskier stocks are getting bought the most. i wanted to point out some of the most heavily shorted stocks in this market, the number one has to be beyond meat, like 40% is sold short. look at how they're out performing today up more than 8% bed, bath & beyond, carvana, soaring. double what we saw yesterday what does this mean for whether we can expect this going forward to seat short covering >> it says it's not yet determined whether this is really lasting it's just a positioning shock right now, right
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if you're basically on the wrong side of the market ripping you have to cover shorts and chase some strength. i don't think that's a long-term tell because bear market rallies will look like this and once the ultimate low is reached usually lower quality riskier stuff is going to rip it doesn't mean it's the way that is going to be the leadership for the next bull market, but it's going to have - >> it's not bullish or bearish -- >> it's difficult to say. >> thank you very much let's goat chris from fertigas what do you do after two days like this? >> heck of a move. market has breathing room. maybe 4115, 4150 when the next big levels come into play. it's so tempting to want to go back to the old leaders, top of the markets, the tech, apple, amazon, that would be the mistake here what are the stocks that are acting demonstrably different or better than this year, it's
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industrials, financials, still energy, it's some health care. you get these big ripping reverting moves in the technology and growth here chasing those is a mistake adding to energy, industrials, financials makes sense >> why is that a mistake it would seem logical if you think inflation is coming down and the fed is going to do less, the market is telling us this rally is about, wouldn't you want to buy the ones beaten down by higher interest rates >> when you look at the top of the market, the top five stocks, at one point were 25% of the s&p. right. that's roughly similar to what the top 5 were in 1999 that top five in '99 bottomed at 5% in the index seven years later. i think this process - >> more to go. >> i think this secular process away from the top of the market back to the average stock is one that's going to be measured in years, not months or quarters. when we look at the what i would call garbage that's rallying off
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the low, the carvana, stuff down 90% -- >> the shorted stock, pandemic whippers >> some up 30, 40% this week and down 80 or 90 on the year. >> reminds me of how the real stocks in the market had ato dissociate themselves from the beaten down dotcom stocks of the 2001-2002 period you had to dissociate yourself from the stuff that i think is permanently brown, the lower quality arc stuff, ipos. >> you think that's permanently not a good investment? >> for the minimum of the next cycle we're not going to go back to that stuff as leadership. there has to be a period of purgatory or apathy or neglect for that part of the snooshgts y market >> you like the value or cyclical stocks. >> yeah. >> going into a potential recession where the fed is raising interest rates into an inverted yield curve >> this is what we wrote this
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morning, we're trying to marry in a nuanced way respect for the tape, with respect to the cycle. as you mentioned, negative 35 or negative 37 basis points this morning. we know what's on the other side of that typically. you can get good rallies with inverted curves. we've had it in 2007 when stuff like industrials actually led. i also think the 001 experience with industrials is interesting. industrials were leadership into and through the 01 recession >> do you think energy still leads this market? >> i think energy is sec skew lar leader what do leaders do, secular leaders when correct they're not immune but come back faster. think about this summer, energy got hit hard, down maybe 25, but came back faster that's how leaders behave i'm struck by the fact if you
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look at the flows in energy they're not that extreme if you look at energy's weight 5% of the s&p at the long-term means 11, we're in a reversion throughout the mean business i suspect over the course of the secular energy will command a larger weight in the index than it presently does. >> it's 5% of the s&p right now? >> 5.5 apple is 7 can those two lines cross? i don't think that's a bold call >> anything that could change that would make you feel more bullish on tech? >> prices right. i keep looking back, the moves we've seen in the apples and tesla and amazon and microsoft and google this week are from broken conditions. at a minimum the amount of time to repair those charts is going to be measured in months or quart quarter quarts from here when nasdaq and tech bottomed in '02 it went on to
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underperform for five more years. the price low was not the leadership low it's an important point here >> what about your crypto chart? last question. how impactful do you think that is to the broader market did it not stand in the way of the rally. >> we have a rule, we always say, actions in this business happen below downward sloping day 200 moving averages when you're already down 50, 60, 70 as bitcoin was like i would view the arcs or ipos there is a period a long period, of purgatory and neglect in front of crypto before i think it's even remotely considered investable again. >> what are your secular periods? >> talk about tech in '02 didn't lead again until 2010. banks bottomed and haven't led again since. this takes a long time >> bitcoin not joining the rally unlike yesterday down 8.5%. thank you. >> great to see you. >> up next, venture capitalist
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eric hippeau on the crypto collapse and whether he sees opportunities amid the turmoil. investors out of health care stocks they've been huge winners this year not so much in the last two days some of the losers right now including united health which is the biggest drag on the dow which has gone negative down 1 point. s&p and nasdaq holding its gain. we're going to talk to analyst on health care and see if he sees any buying opportunities. "closing bell" back in a moment. ♪♪ ♪♪
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nobody should have to take a class or fill out a medical form on public wifi with a screen the size of your hand. home internet shouldn't be a luxury. everyone should have it and now a lot more people can. so let's go. the digital age is waiting. . bitcoin selling off again
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today despite the market rally after ftx did file for bankruptcy what a week. kate rooney here with the details. what next? feels like there's a lot we don't know >> a lot we don't know we're expecting to get more paperwork in the bankruptcy court in delaware and we'll keep an eye on that this was a rapid fall for what was a $32 billion company just a few days ago technically ceo sam bankman-fried stepping down and he will stay on through the chapter 11 transition. cnbc has also learned that daniel freedberg, chief regulatory officer and the firm's former general counsel stepped down on tuesday according to a source familiar with the matter. the bankruptcy filing does include sam bankman-fried's trading firm alameda research and 134 affiliated companies all over the world in uganda, in europe, hong kong, switzerland the list goes on the estimated liabilities stand between 10 and $50 billion and there are more than 100,000
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creditors listed in the paperwork. sam bankman-fried and ftx had been bailing out others in the industry and raised money from some of the premier investors in silicon valley and in the world. softbank is on the list. coinbase ventures, the arm of that business, are writing down that investment. a source familiar with that investment tells me, it plans to write off the entire value there. this company coinbase will participate in the ftx bankruptcy protest and is seeking a claim of about $15 million in deposits that are at ftx right now. they say the exposure is not materiel at this point sam bankman-fried tweeting this morning and apologized and said essentially, i'm sorry that we ended up here. he said he's shocked to see how things unraveled the way they did this week. all of this hitting bitcoin prices you've seen the jitters this week about more shoes to drop
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potentially and other counter parties, robinhood and coinbase are higher today but down for the week >> the ceo of binance which passed on the deal in a conference overnight saying this is like the 2008 financial crisis for crypto and we could see more businesses fail kate rooney, thank you >> thanks. bring in a venture capitalist voice on the story, eric hippeau, lerer hippeau managing partner you didn't have investments in ftx or anything affiliated but you have crypto investments. does it make you think twice >> hi, sara. we have crypto investments but they're on the fracture. we never invested in exchanges or coins or protocols. what's happened this week is very serious because it has the potential of contamination pretty much throughout the ecosystem.
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the total value of crypto assets this week fell by about $150 billion. the entire crypto world now is worth less than a trillion dollars when it was worth $3 trillion at the end of 2021. and so there are serious questions. really the main question is, can the trading market in crypto sur vuv without regulation >> what is your take on that >> my take is that industry has gone through a self-regulatory process and that there's really no choice if the industry is to thrive, to accept being, you know, being regulated because that's the only way you're going to bring trust back into the system. >> i think the ripple effect on the venture capital world is interesting. sequoia has been front and center marking their investment in ftx to zero and paper seenb
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the "financial times" showing it looked like there was a lot of self-dealing here, sequoia investing in ftx using client funds through its other firm alameda to invest in sequoia what do you think is the impact here on the venture world? >> first of all, sequoia is a top tier investor and i think the fund they invested in already has more than returned capital. that's not the issue the issue is really has to do with due diligence in this case, there were a lot of private investors, softbank and others, and big pension funds, but it doesn't seem like anybody took responsibility. it's what we call a party round where everybody comes in, makes their investment, but there's no lead investor. i don't believe that the investors had a seat on the board of directors so there were some, you know, regulatory and compliance issues that the investors should have
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known better >> is there any opportunity here for you in the middle of this crisis of confidence in crypto and the ecosystem? >> well, we're very big believers in the blockchain and that blockchain will self-govern other than in the financial markets and continuing to look at opportunities to invest there. other than we do investments but most of our investments have nothing to do with crypto and that, you know, the world is full of opportunities at the moment. >> i'm curious what you make of the twitter latest because i know you're watching this carefully i don't think there's any investment there, but what's your feeling so far on what musk is doing and where he is taking this tcompany? >> i've seen a lot of chaos in my career, but i don't think i've ever seen chaos on this scale. it's hard to fathom. in a matter of two weeks, half
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the employees were fired, some were fired by mistake and rehired. the great majority of the senior management is out, a lot of advertisers are pausing investments on the platform. they slowed the verification program which is similar to the one before that was meant to really identify people that you could trust. now everybody can pay into that. so, you know, twitter is a very valuable platform. i use it for professional reasons. it's really hard to understand where all this is going. >> would you invest with musk on this >> well, you know, i don't think i would have investmented at $44 billion which everybody including him admitted it was, you know, over priced.
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i guess musk is one of these people you don't want to bet against. he's been hugely successful, so i think he will do okay, but it's hard to see how this is going to unravel >> eric hippeau thank you for joining me on some of the hot topics in our world. bitcoin lower, dow back in positive territory up 10 points. the s&p 500 going strong up 0.8% we've come off a little from where we started the hour but you have strength in discretionary and energy stocks leading, not so beaten down. communication services, tech, materials, financial, higher, health care is lagging today so are utilities and consumer staples. how about the u.s. dollar? it's been having a huge year but selling off hard this week up next the big picture on what is behind the pull back and what comes next as we head to break check out today's top search tickers on the 10-year treasury taking the
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top spot the bond market is closed today so can't really tell anything from that but people are still searching it anyway. the big buying yesterday with lower yields twitter, tesla, amazon and the s&p 500, all green for the week and for the day. we'll be right back. if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] s&p 500, all green for the week .
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in today's big picture, what a week for the u.s. dollar some serious weakness here after spending much of the year going up the dollar lost 4% of its value this week, worse week since march 2020 lower inflation numbers pointing to fewer and less aggressive interest rate hikes from the fed. that's all a trigger for a weaker currency and easing of china lockdown policies and hope that europe's energy crisis is getting better, helping out the mood we know that's positive for stocks too look at how tight the inverse correlation is they move in opposite directions stocks like it when the dollar weakens because that strong
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dollar has been a headwind for earnings from technology to health care to consumer companies. yesterday ralph lauren said the dollar shaved 8% off revenue and tapestry cut its guidance noting a 20 cent hit to earnings for the outlook for the year because of the strong dollar the question everybody is wondering is has it peaked for now? bears say sure it got strong and as long as inflation comes down steadily and the hard landing chances diminish the dollar could keep weakening bulls say inflation is high and fed not backing down easily and it's still moving more aggressively than say japan or europe or china on raising interest rates long-time strategist from sockjen says dollar bulls have been shaken. we are confident that the dollar will be significantly weaker in six months, but we remain wary watch the bond market for clues. closed today when we see bonds rally like we saw yesterday, the dollar does
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weaken weaker economic data, softer inflation, that will really be the key here, mike as it is the key for stocks. it does feel like it's all one big trade. >> yeah. >> teed off inflation. i think the question is, do we shift into weakening economic growth and does that mean the dollar weakens or is it going to be worse overseas so the dollar strengthens? >> it's fascinating because remember back when people thought the u.s. dollar index at 100 was going to be bumping up against the ceiling for the longest time that would be extreme. we're celebrating now a pullback to 106 there was probably an overshoot. it did become a crowded trade. i think the reason the inversion correlation with stocks has been pronounced not just the earnings effect but because dollar strength has been a proxy for how aggressive the fed has to be >> sure. >> that's been the main pressure point. here does the economy have to weaken for dollars to stay tame or can the fed decelerate in its tight praj
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that's the question. it's fi fi nessing it. the ecb officials said the market overinterpreted the decline in the u.s. implying they're not prepared to become any less hawkish >> i just feel, i think it's hard to say, but if the u.s., if the fed becomes less aggressive, everyone else is going to become less aggressive than the fed because they don't have as strong growth as the u.s >> it's always against somebody else >> solar stocks -- thank you for indulging me - >> solar stocks rallying roughly 10% this week and sunova more than 20% gain. the ceo the outcome of the midterm elections will impact his industry plus the sequel to marvel's "black panther" expected to dominate the box office and today's mover could reap rewards from that poteial octentblkbusr film
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check out our stealth mover today. it is imax the stock is popping like pop corp webb bush adding the company to the best ideas list saying it could be a blockbuster winner from the slate of strong films including this weekend's release of black panther wakanda forever. a way to position for rebound in china's economy. having a good month so far solar stocks soaring this week after two he key catalysts first the democrats did better than expected in the midterm elections, and then yesterday, california, regulators backed out of a proposal that would have reduced credits given to
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solar panel consumers. joining us for an exclusive interview is john berger, ceo of sunnova, residential solar company. the stock has done well lately, john is it tied to political fortunes your industry? >> thanks for having me, sara. it can be. certainly there's a perception that it is andso when you look at the federal elections and then when you look at the action in california, quite honestly the action in california has more meaning in terms of actual impact, especially on my portion of renewable energy industry on the consumer side of the meter or on the homes and businesses so it can have an outcome. i will say i think on the federal side of things, i think we landed -- we don't know all of what happened yet conclusively, where the senate is and that's the major point, but if you look overall, i think we ended up in a sweet spot for
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the industry for the renewable energy industry and the hydro carbon industry. it's likely in my mind, let likely to get a permitting bill senator manchin wanted, given the dynamic of what happened it's not an overall crushing win for the republicans led by trump. trump was fairly humiliated as we know and it's a small window in the house for the republicans it looks like and possibly the democrats keep the senate. so it could be more of a gridlock that's going to be constructive for both renewable companies no new negative policies that are going to be passed and then on the hydro carbon side we won't get the permitting and pipelines we should have, but there's not going to be any real action against them as well so there's going to be i think a nice environment for energy over the next couple years at least >> i feel like conventional wisdom around the solar industry and your stocks has been the
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democrats' control is the sweet spot for you, right? that's where you got the inflation reduction act passed where there are loads of incentives and money passed for your industry? >> well, there are and there's also a growing amount of consumers across the country that want consumer choice. that is to be unshackled from the monopoly utility and essentially have the ability to choose your power provider typically the republican party has led in those kind of consumer choice, consumer focused areas in terms of opening up industries to competition and capitalism and so that's favorable from the republican side of things. and the inflation reduction act has been passed and we've got a ten-year plus runway on that already. what else could we get it's hard to come to a conclusion about what else is needed at this point in time i like the fact that we're going
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to have a more balanced political environment. let's start thinking about things how do you bring the new technologies, innovation, job creation, wealth creation into the u.s. power industry really for the first time and open things up and give consumers choices to get the power bills down, even as they go out and buy electric vehicles at a pretty brisk pace. we need to unshackle the consumer and allow choice. this balance in congress gives us an environment to do that >> beyond the politics, wanted to ask about your business right now. because on one hand i know that we have very high utility bills and that electricity bills is helping people if go into solar or your industry positions itself as a better cost alternative but the housing market is getting crushed so people aren't buying as many homes and probably not installing as much solar how does it shake out for you in terms of demand? >> in our new homes division we have seen a drop off, but it's
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not very significant remember, sara, in terms of solar service, we still make up a very small portion of the yofr all new homes business we can continue to pick up market share and quite a bit of it even as the housing market comes off hard which i think as you're aware my view on this has been quite a while the new homes market was going to be under duress given mortgage rates moving up. overall to be clear about the vast majority of the solar industry and our business is really driven by existing homes. so when you look at what drives the consumer to go out and get sunnova's service it's about that escalating utility bill it has nothing to do with the value of their home or bought a new home or not. it's about the utility bills ha are those utility bills doing? skyrocketing, going up, even as interest rates come off a little bit and some natural gas pricing comes off a little bit here, the
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utilities continue to raise rates as recently as this week across the country and continue to push those prices up and up just as people need to be able to have a little more cash in their pocket because the economy is getting a little more difficult because of the fed rate increases solar is something that more and more people are finding that makes a lot more economic sense and focused on saving money for their family they're coming in and going sunnova. >> we saw sun power's earnings talked to the ceo about that as well thank you very much. good to talk to you. a lot going on for you right now. john berger of sunnova take a look at where he stand, the dow up 2 points, under performing the nasdaq today and the s&p and the small caps nasdaq going strong with a 1.75% move higher. apple, amazon, alphabet, tesla, all leading the way right now. as far as the s&p, energy is the best performing sector but consumer discretionary, communication services and tech having a strong day.
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more kanye west fallout for corporate america still coming analysts at citigroup this morning slapping a negative catalyst watch on foot locker citing a yeezy headwind. it cut ties with yes after hate speech last month. foot locker boxed up and sent back all the yeezy products. citigroup pointing out this comes after foot locker decided
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to increase adidas exposure after nike scaled back sales via retail partnerships including foot locker that means the company is going into the all-important holiday season order with significantly fewer jordan retros and no yeezys, says citi, which expects a, quote, significant guidance cut for q4 foot locker has a new ceo, started the job in august, hired to help foot locker's digital operations, ulta increased by nearly 8 times under her leadership the market is excited. the company declined to comment to cnbc but it is in quiet period ahead of third quarter earnings shares up 8% since foot locker announced it would stop stocking yeezys in late october. when quewe come back, amd launching a new chip that story plus chinese stocks
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with powerful, easy-to-use tools power e*trade makes complex trading easier react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity . we are now in the "closing bell" market zone. cnbc senior commentator mike santoli here to break down the moments of the trading day, deirdre bosa is here on the rally in chinese stocks and kristina partsinevelos on amd and the chips. we'll kick it off broad because we're at session highs the dow ticked higher up 80 points or so it's still lagging behind the s&p which is up a full percent and the nasdaq up 2.
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looks like we're going to go out on the week strong more than 8% for the nasdaq, mike, and 6% for the s&p 500 where does this bring us as far as levels and what we can anticipate next? >> it's interesting. the s&p 500 just in the last half hour or 45 minutes, rushed right up to that 4,000 level, took a beat, paused, pulled back a little bit and then regrouped and went over. there's definitely a little bit of a tactical orientation to this market. people trying to trying to figure out what the next barrier might be to the upside, near 4100, short of that is probably where a lot of people are going to be focusing bigger picture we talked about the tendency for the market to exhibit some strength after election day in a midterm year into year end. we all knew that there was skepticism because of the macro picture, but getting through earnings season and the election itself and then, obviously, you know, the -- what's come since then with the
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cpi data is just i think reduced the blood pressure of the market a little bit, let the blood start pumping more freely and where we are right now it's a little bit less news driven than it's getting through some hazards >> i wanted to point out, we've been talking about this rotation in the market right now, a fierce one into tech stocks, into pandemic winners into heavily shorted stocks, into what you call the riskier stocks, not everything is winning in this rally. the money coming out of the safe havens i want to point out hershey a poster child for what has worked thus year the stock up double digits this year but for the week down about 6% or so and it's the worst performing consumer staple today, 3%. it's considered safe and growth and considered domestic. really everything that the market has wanted all year long until two days ago. >> yeah. >> sowhat happens to some of these. you can pick a health care stock or a lot of food stocks in
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particular what happens to this group >> well, in a sense, the defensive stocks have done their job. they've done what they're supposed to do as the s&p went down over 25% at the lows, they've held their value what you're seeing today is a repositioning out of the year to date winners, the quality areas that have worked well, defense contractors, insurance, lots of parts of health care including pharma and health care services the weak spots with consumer staples. it doesn't mean it's game over and people are going to rush back in to the growth stuff and the lower quality names, but it does show you there's a sensitivity among investors to not want to miss that risk rally that might be taking hold. we don't know. but it's a matter of let's not stay too defensive or too bearish pap lot of people say wait for the market to prove it. wait for the market to start a new up frtrend, to tell you it discounted all the bad news. that's a four point but when
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that happens the market will be up 20% off the lows. >> you missed a big part of the move >> yeah. >> the china stocks because talk about a rally, rallying again today after china's state media reported the country would ease covid travel restrictions. proposals include a shortened quarantine length, a positive for the group weighed down by lockdowns. the k webb china internet etf one of the best performers on track for the best month ever. deirdre bosa joins us. light at the end of the tunnel on the zero covid policy for these stocks >> yeah. and if you have the risk appetite china has been a great place to be this morning k webb up 25% versus 7% for the nasdaq the out performance shining through. i look at this chart as well which goes back to the end of 2020 and you can see what a terrible bet the k web has been. they have been under performers
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of tech as well. what's happening now, though, is foreign traders are embracing chinese stocks and kind of stopped the rally so far, but as you mentioned the relaxation and covid policies that we got friday beijing time, is causing those foreign investors to get back in to there's risk appetite once again some say that the fact that this policy relaxation is coming from beijing at a time when covid cases nationwide in china have surged to a six-month high, major outbreaks in gown go and beijing, maybe this is a sustainable rally because we've been here before in terms of is china investable or not and going to open up or not. >> it will be a test with the rising cases it's extending to names like estee lauder today really strong with the china, po sure. they got hit this quarter on china weakness, that stock up 4.3% lvmh rallying big on this news let's hit the chips.
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amd one of the top performers in the s&p after launching a new chip code and analysts says it could be a game changer. calling genewa a monster webb bush said it should have been named domino's because it delivers kristina partsinevelos joins us. why are analysts excited >> inthought that was a good joke the street likes this, this for one, amds a has launched a chip supposed to be 54% faster and 54% less than its competition. intel has the sapphire rapid that got delayed into january. another opportunity for amd to steal market share from intel. amd announcing with the launch of the fourth generation chip that some of the customers big players, microsoft, oracle, even amazon among them helping the stock as well. and then another factor just yesterday tsmc put out their
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october sales numbers up 56% year over year, second highest sales month in history that's showing that market for some companies is still pretty strong and that is also helping the smh and stocks, the stock having the best week ever, smh, since 2001 again, amd chips the new processors that they launched is helping that stock up 6% >> thank you kristina partsinevelos mike, that's going to be your nickname domino's because you also deliver for us every time. so what do you do with this sector which is, as christina said, having the best week ever, still 25 to 30% off the highs and concerns about the cyclicality and what will happen to earnings. >> i think it's mailman is who delivers if you want to go back to nicknames look, it's obviously a good additional reason to decide that amd can re-emerge from this phase as a leader, aside from
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just hey they're down a lot and maybe the cycle is going to restart pretty soon. it makes sense it does seem very much like, you know, oversold former leadership group coming back hard, but there's some traction here and, you know, the valuations have become much more reasonable across the board in this area. so probably gives people a little more faith that there's more to it aside from just, you know, strictly buying the stuff that's beaten up the most. >> health care is the worst performing sector in the s&p 500 right now. the biggest losers in the group, the managed care providers united health, weighing on the dow. humana, centene. let's break down the move with david windily joining us by phone. is it just because, david, it's been such an area of strength for the market so far this year and that's reversing now >> i think you're exactly right. i think you and mike framed this well, that these stocks have done their jobs. they're defensive. they've beaten numbers every quarter this year and raised cps
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and it's by 4% versus an s&p that's going the other way the stocks have been a safe haven and out performed the s&p 50035% year to date until the last couple days and now they're giving some of that back because they've done their job but to the really where people want to rotate to at this point. >> should they be wanting to rotate to them do the valuations look attractive given what's happening with fundamentals? >> right so fundsamentals are really good the companies set themselves up for strong growth next year. you have to believe that investor or customers don't want to exus their health insurance with a pandemic still kind of the lingering elements of a pandemic going on. however, the valuations are 8 to 10% still above historical averages they're not cheap stocks they've been, you know, safe havens and they've been comfortable places for people to hang out and hide money. from a valuation standpoint they
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probably need to find a new base and then, you know, earnings can deliver upside to the stocks into 2023. >> i know you have buys on humana, hold on unh. why has this been one of the strongest parts of the health care sector? what's going on with managed care >> there's a couple things the pandemic and government sponsored support and policies during the pandemic have actually increased membership in managed care plans so protections in medicaid, for example, so membership has grown, but at the same time, concerns about covid have kept people out of the hospital to some degree and nurse shortages have also impacted the ability for people to get elective procedures that's good for managed care so those combine earnings normally better than what they might be when you add that to the
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defensive nay tour of the businesses -- nature of the businesses naturally they've been an attractive place to be >> thank you for joining us to talk about some of the calls and the valuations in the space. we appreciate it david windily from jefferies about two minutes to go in the trading day. hanging on to a 1% gain in the s&p. 1.8% for the nasdaq. takes gains to 8% this week. what do you see beneath the surface? >> another broad rally, something like 85%, upside volumes didn't click to the 90%. today it's pretty strong, 75, call it equal weighted indexs are beating. average stock participating. we were talking about semis and the equity market's ability to shirk the perceived pressure from weight going on in crypto over multiple years it doesn't link up as well but until
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recently this was the same chart. look how they've gone in different directions in the last week here for obvious reasons nvidia the same kind of tech stock that people exposed to crypto would own it has a fundamental link as well a hopeful sense that crypto carnage is being firewalled off at this point. the volatility index coming in hard under 23 right now. low 20s, maybe 19, 20 where it based out and equity rallies rolled over. we're not there yet. >> this strong day coming on the back of a huge rally yesterday just want to show you what's happening right now. the dow up about not too much, 8 points or 9 points, but the strength is in the tech land where the nasdaq is up 1.8%, up 8% as i said for the week as a whole. the bond market is closed today for veterans day, but the dollar always trades and it's weaker again up 4% decline for the u.s. dollar index has to be helpful for stocks with the fact that we
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saw softer inflation report and decreased odds of aggressive fed tightening in the market all of that is leading to a rally in the hardest hit parts communication services technology, energy, all your leaders. for the week it is tech. the tech sector up 10% on the week communication services up 9. have a great weekend that's it for me for "closing bell." into overtime with scott wapner. see you on fast money. >> all right welcome to overtime. i'm scott wapner you heard the bells. it was a special bell ringing today, as the new york stock exchange honors world war ii veterans on this veterans day. the greatest generation, the greatest of american heros is awe inspiring to be in their presence today it's quite a moment. want to welcome you once again to overtime. we are just getting started at post nine at the new york stock exchange stocks too


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