robert frank is here to look how the stock markets drop to help tackle inflation robert is up next. stick around ♪ ["fly me to the moon"] ♪ ♪ ♪ imagine a community where millions share ideas and trade stocks, crypto and beyond. to the moon? in other words... etoro.the power of social investing. >>> welcome back we are likely to enter a bear market for the s&p 500 let's get a different take on the stock market's recent drop it is a hot take as bad as the markets have been, there is an upside to help jay powell and the fed fight inflation. robert frank is here with the so-called negative wealth effect could take a bite out of inflation. you are saying the markets have gone down, robert, and that solid gold lamborghini is now out of reach >> yes, brian. it was always out of reach, but maybe now out of reach this is because the market forces the fed hopes lowers inflation is the reverse wealth effect the value of the stocks and home goes down, you spend less. research shows for every investment dollar you lose, consumers spend 5 cents less this time it may not work as planned. t

frank brings us that story and robert, if it is true, boy, it turned fast. >> yeah, turns really fast, dom. bargains are relative in the hamiltons. prices down 26% from the last year the biggest sign of weakness is actually on the supply side. brokers say there are now hundreds of rentals still available at all price points. last year, and in 2020, it was impossible to find a rental by early may. supply is up 50% some homeowners are dropping prices 30% rather than let them stay empty why the soft demand? brokers say more of the wethy a wealthy are traveling. many of the people who used to rent in the hamptons bought the past two years the pool and population of renters is now smaller what can you get if you are still looking to be in the hamptons rent the nine-bedroom 11,000 square foot home on surfside drive for $1.25 million a month. if you are on a budget, a cute 900 square foot cottage in south hampton. $48,000 a summer or $23,000 for august dom, still quote deals out there, if you are looking. >> robert, you deal in a different world than many of us on a daily basis for sure righ

here is robert frank. >> reporter: she was the queen of new york society back in the 1980s. she is divorced from oil billion are was the largest in history with the lading patron of the arts before she died in 2020. her apartment rivaled a museum with monet's, roscoe's. and now they are all being sold for an estimated $250 million or more. >> part of this type never loses its value. its value is always increasing if it is not exponential. so what? it is still increasing in value. but more so it enhances one's life. you lived with it. it is part of your surrounding that gives you pleasure and informs your life. >> reporter: one of the roscoes is expected to sell for $60-$80 million. there are three monets all considered greats. london parliament, the poplar trees, and a waterlily. all ranging between 30 and 60 million. the big question, will the wealthy want to spend eight figures on a painting when markets and crypto are crashing? so far, she has racking up over $400 million in sales just this week. >> there is definitely some level of anxiety because of what is happening in

robert frank has more. >> reporter: good morning. $5 trillion lost in the stock market this year some insiders cashed out before the big drop peloton shares down 90% from the peak before the fall, ceo jon foley cashed out $119 million in stock. insiders selling over 5$500 million in total and the father of the ceo of carvana sold $3.5 billion in shares on the way up the share sale totaling half of the company market cap palantir selling over $1 billion in shares. peter thiel cashing out over $600 million before that big decline. you guys talking about coinbase. shares trading at $52. brian armstrong sold at $389 a share. cashing out $300 million of shares and roblox down 82% from the high insiders cashed out $800 million before the fallout ceo david baszucki cashing out $260 million of shares biggest sales in november. that is when the stock reached its highs. in 2021, it was a record year for insiders totaling $170 billion. andrew >> how much of the sales were, as you said, in the context of roblox at the highs? how much was sold into so many of the offerings >> it's a big mix. i thi

robert franks has that story. >> good morning, carl. the stock fortunes falling for some, but some took cash off the table. peloton shares down 90%, but the ceo cashed out $119 million in stocks, insiders selling over $700 million over the past two years, according to smart ins insider. carvana, the father of the ceo, they jointly control the voting shares they sold shares. >>> ceo alex karp selling over a billion shares on his own. pe peter thiel cashed out just before the decline and coinbase, brian armstrong sold at $389 a share, cashing out nearly $300 million in shares roblox insiders cashed out before the big drop. david bazucki selling out $260 million. these guys were not alone. 2021 was a record year for insider sales, with total insider sales of over $170 billion. so all of these very well timed. guys >> we did take note of it back at the time. this week we have seen a few starting to nibble, but nowhere near the numbers you're talking on the sales. >> that's right. larry culp and ge phiing about 5 million, uber's ceo buying a

our robert frank >>> stilt ahead. emerging investors are absolutely investing with their heart. they're two times more likely to invest in companies that have social and environmental goals. ♪ ♪ there are so many more young investors coming in and participating in the financial marketplaces today, and that's really due to advancements in technology. there's a proliferation of innovative technology solutions to be able to interact and invest in the financial markets. younger investors today are engaging in social media in ways that we've never seen in the past. they're in forums, actively engaging with their peers on certain topics and certain investment ideas. 75% of them believe that their investment decisions can influence climate change, and 90% of them want sustainable investing options in their 401(k). they believe that they can really impact with their investment dollars more so than prior generations. i'm naeema huq abrar, and we are morgan stanley. >>> welcome back share shares of vista outdoor are up in may. in may and they record profit margins while target and wal

>> we will talk to robert frank later, not about ark, but art. art is not under water >> we talked about marilyn monroe a lot this week the dress at the met gala. he made five of those. that was smart is that $1 billion >> not for him >> no. if you add it up >> if it was an nft, maybe he would get a piece. bitcoin for a second cryptocurrency briefly dropped below $30,000 late yesterday it regained ground early this morning. we're at $31,449 bitcoin is off 55% from the november peak and 44% of holders are now under water on investment that is data out from glassnote. in the last month alone, 55% of all bitcoin wallets fell into unrealized losses. >> i thought it might have been more there's hodlers holding for longer than that 40%. it was at 66 you would think it could be worse in terms of the number of people that have an unrealized loss. >> how many people have owned? 10,000 20,000 >> right. >> i don't have a single one that i bought higher than what it is right now. i don't own a lot. i don't have a lot i have those i have one at 4900 >>> stock

. >>> robert frank has the details. robert >> this is a mansion in bel air listed for $87 million and ended up selling for just $46 million. the seller is a celebrity dermatologist. he built the house on spec hoping to sell it for a profit he said the auction was flawed and horrible the concierge auction which sold him the property guaranteed him a price of at least $50 million. he also complained the sale came as crypto and markets were collapsing concierge saying we are confident that market value was delivered. this price was largely in keeping with other big recent auctions we have the mega mansion nearby that was listed for $295 million, sold for $140 million at auction back in march and a home in beverly park listed for 165, ended up auctioning for $51 million this house is 21,000 square feet it has a hydraulic dj booth, a marble car gallery and a glass elevator he defaulted on the loans on the house, which forced it into bankruptcy now, people familiar with this bankruptcy tell me that he owes more than $50 milli

frank joins us now to explain what's going on here robert >> reporter: well, good morning, david. investors have lost more than $5 trillion in stock market wealth so far this year the fed hoping those losses force consumers to spend less and actually reduce inflation. the theory is called the reverse or the negative wealth effect. studies show that for every dollar of lost wealth consumers spend about five cents less. the problem for the fed this time is that americans have a much larger cushion against any losses americans added $40 trillion to their wealth during the pandemic, even with this year's losses and still have an extra $35 trillion to fuel that spending minneapolis fed president neil-crisaid last woke are these stronger balance sheets leading people to spend more or be more confident in which case maybe the fed has to be even more aggress sniff consumer spending is even more sensitive to home prices than stocks the problem there, at least for the fed is, that home prices are still rising mark zandi of moody's saying it will take a market decline of at least 20% which w

robert frank joins us now with a look at what that means for mr. musk's still-pending takeover of twitter. robert >> yeah. a bit of a relief, tyler relief rally there, tyler. of all of the issues confronting elon musk with the purchase of twitter and the tesla share price that's causing the biggest financial headache and those are over 40% since they announced that stake back in april and the net worth their 70 billion this year and he's barely holding on to the handle with the net worth of $200 million. that $12.5 billion margin loan and that is now gone he needed to pledge more with the loan and he ran the risk of a margin call. he did replace some of that with larry ellison, sequoia and a lot of others earlier this month, but the big question now is where is he going to find this other $6 billion he could sell part of his 55 billion stake in spacex. he could recruit a lot of billionaire buddies or get private equity to chip in. either way, guys he'll bring in more economic partners which could change the overall strategy and the profit goals for

frank. one of the things a few of those insiders have in common is the high, short interest in their stocks caravana is nearly 30% short interest and we'll talk about more names with big short interest that could pop in "power lunch" which begins right tyler? ♪ ♪ >>> kelly, thank you so much we'll see you in just a few seconds. welcome, everybody i am tyler matheson. the market sell-off intensifying this afternoon and here is what we have in the hour ahead. apple down 20% from its january peak off 7% just this week the sell-off spreading from speculative names to tech stalwarts and having implications for the broader market plus, wells fargo souring and i mean souring on electric vehicles, questioning when ford and gm will actually make money selling them we'll talk to the analyst behind the bearish call and his decision to slap both stocks, kelly, with sell ratings >> tyler, thank you very much. hi, everybody. stocks are right around session lows right now the dow is briefly down more t

frank. one of the things a few of those insiders have in common is the high, short interest in their stocks caravana is nearly 30% short interest and we'll talk about more names with big short interest that could pop in "power lunch" which begins right tyler? ♪ ♪ >>> kelly, thank you so much we'll see you in just a few seconds. welcome, everybody i am tyler matheson. the market sell-off intensifying this afternoon and here is what we have in the hour ahead. apple down 20% from its january peak off 7% just t

in miami, here's cnbc's robert frank. >> away we go! >> amazing that's the only word i can say >> reporter: formula 1 has always been in nascar's rear view mirror in the u.s now, it's catching up fast tv audiences for f-1 up 50% last year, up another 40% so far this year there are now three f1 races in the u.s., austin, miami, and las vegas, up from just one last year >> in just couple of weeks after the announcement, we sold out all the tickets and the excitement and the event here in miami is really incredible >> reporter: the big reason, netflix. its "drive to survive" series became a huge hit during the pandemic, creating a new wave of fans tickets to miami sold out within days >> i think it's correct to say that netflix helped a lot. they did an incredible job, we did an incredible job together that's something you cannot do alone. the vision and once again being sure that we could add different languages, to be able to, you know, the interest of our fans was the key of that success. >> reporter: a hotel in south beach is asking $1

in miami, here is cnbc's robert frank. >> i mean, amazing that is the only word i can say. >> reporter: formula 1 has always been in nascar's rear-view mirror in the u.s. now, it is catching up fast. tv audiences for f1 up another 40% so far this year there are now three f-1 races in the u.s., a austin, miami, and vegas. up from just one last year. >> we sold out all the tickets and the excitement and the event here in miami is -- is really incredible >> reporter: the big reason? netflix. its "drive to survive series" became a huge hit during the pandemic creating a new wave of fans. tickets to miami sold out in days. >> they did an incredible job. we did an incredible job, together, that that is something you cannot do alone. but for sure, the sligz and -- and once again, being sure that we could add different languages to be able to open up. >> the hotel in south beach was asking $120,000 a night for its suite. carbone is hosting a dinner on beach for $3,000 a person and it isled sold out the hard rock stadium transformed its parking lot into a world-class track and luxury oasis. the

frank has that story. "squawk box" will be right back. >> announcer: davos 2022 is sponsored by morgan stanley. to support that village. ♪ ♪ i am peter akwaboah, chief operating officer for technology, operations and firm resilience. when you think about diversity, the employee network group is fundamental to any organization to provide a community and a belonging environment for the employees. they provide an avenue to support employees and ultimately it leads to retention of the best and brightest. the employee network represents the community at large, and it provides a good feedback loop to senior management to make the appropriate decisions, which ultimately contributes towards the bottom line. if you're thinking about growing your business, if you're thinking about driving the business forward, inclusion is a strong part of this. i am peter akwaboah and we are morgan stanley. insights illuminate better choices. allowing us to see differently and do more. with kpmg you have the people and technolo

robert frank joins us with the detail something tells me that's not about the weather. i looked at the forecast it's supposed to be pretty nice this weekend. >> yeah, weather looking a lot better than the rental market. hampton real estate is always closely tied to the stock market we're seeing a sharpdown, at least on the rental side, prices falling 26%. there has been a huge jump in supply last year and in 2020 it was almost impossible to find a rental by early may. now there are hundreds on the market, and some owners are cutting prices 30% or more rather than leaving them empty more of the wealthier are traveling this summer, especially to europe it's a more com better mood and more price sensitivity, especially the high end. many people who used to rent in the hamptons ended up buying over the past two years, so the pool of renters is a lot smaller. if you're still looking, you can rent this on surfside drive. $300,000 a week, or $1.2 million a month. if you're on a bit more of a budget, a 900 square foot cottage in southampton, only 48 grand for the summer sales h

frank, good to see you. enjoy your three-day weekend, my friend >> you too, thanks >> you bit becky? >> asking for a friend still to come, we've got the ceo of priceline joining us. mu plus, we have dr. scott ttebgoli on the uptick in covid cases and what it means for the holiday weekend. do i just focus on when things don't work, and not appreciate when they do? i love it when work actually works! i just booked this parking spot... this desk... and this conference room! i am filing status reports on an app that i made! i'm not even a coder! and it works!... i like your bag! when your digital solutions work, the world works. that's why the world works with servicenow. self-driving cars. that' our power grid.works water treatment plants. hospital systems. they're all connected to the internet... and vladimir putin or a terrorist could cause them all to self-destruct... a cyber 9-11 that would destroy our country. i'm dan o'dowd and i wrote the software that keeps our air defenses secure. i approved this messa

thanks, dan, and robert frank. andrew you have a quick question, andrew for me? >> i was just going to pose one question, back to dan on this, which was, do we think that if this is a grand renegotiation, does vhe have to get the signoff from the ron barons of the world and others who put money behind this, or does he not have to go to them at all because he's effectively locked these folks in at that higher price, and if he can get a lower price he doesn't have to do anything, meaning he doesn't have to go to them and say hey, i'm getting you a lower price now. they would say thank you very much, i would imagine. >> probably. the question is, remember those equity commitments were in cash. they were dollar amounts they weren't percents of company. so i do think he would probably have to go back, because it would change the number of shares they're actually buying, but i don't think any of them wo w them were complaining. but, again, if that's what he's doing, i don't quite understand why do that publicly, why not go to the company privately all he's doing is dam

doctor robert, the commissioner of the food and drug administration, welcome. frank, the deputy commissioner for food policy in response at the food and drug administration and doctor susan made the director of the center for food safety and applied nutrition of the food and drug administration. i want to thank you offer appearing in front of our committee today. i know that you are where the committee is holding an investigative hearing and when we do so we have the practice of taking our testimony under oath he had do any of you have any obobjection to testifying under oath today. >> no objection. >> let the witnesses record shall they responded no. you are entitled to be accompanied by counsel. do and if you wish to be accompanied by counsel? >> no. >> the witnesses have responded no. t please raise your right hand o you may be sworn in. do you swear that the testimony isyou are about to give us the truth come out the whole truth and nothing but the truth? >> yes. >> let the record reflect the witnesses have responded affirmatively and you are now under oath

twitter was busy their accounts nobody was shutting down the disgusting hate and the death threats from frank james. do you remember the black nationalist who shot up the subway train in brooklyn? where has that story been by the way in the mainstream media? so you tell me who is being silenced and who is not? and according to senator rand paul, the biggest spreader of misinformation? is our own government. >> how do you propose that you are going to have an office of disinformation governance if you see the problem and even determining what is disinformation? i think you have got no idea what disinformation is and i don't think the government is capable of it do you know who the greatest prop gator of disinformation in the u.s. worls the u.s. government. >> jesse: senator rand paul is here right now what are you going to do about this. >> we're going to shut it down. busily getting signatures from other senators. there is a way to get it onto the calendar. and there is a perhaps a way we can get a vote. it's not very easy when the democrats control things, but i will do everything i possibly

. >> kind of the opposite of robert oppenheimer. robert palmer was always anguished and whatever it a weird relationship. the stories really fascinating. and frank oppenheimer is in this, too, by the way, exploratory. and y they're filming at berkeley? i think it started in a search that they were going over. there were actually of los alamos later. but that's good thing. it's going to be a fast. i want to watch. this movie can only wait. so, yeah, what some of that dialogue playoff going to be hot today, stephanie, here's a look at high temperatures projected for today. >> got the 80's on board. we've got the 9g's not too far from home, but the 80's there up in the north bay as well. 67 for san francisco in a bit cooler at the coast with 50's and 60's. here's the game plan for the 7 days. look at the middle of the screen popping to the upper 90's. this could be a race to the took in central valley. you'll see that. and then we you can see temperatures reach correct. come friday about 78. so really heat there. and said for the kron,