Skip to main content

tv   Worldwide Exchange  CNBC  June 21, 2024 5:00am-6:00am EDT

5:00 am
it is 5:00 a.m. here at cnbc global headquarters. i'm frank holland and here is your "five@5." off their highs. stocks are struggling to find footing as the nasdaq snaps the win streak of the year. the key event today that could dictate the trading ahead. the part of the intraswing for trading is nvidia wiping out of play market value ahead of the important session for what is now the u.s.'s third most valuable stock. and out for days. a massive hack attack hits car
5:01 am
the dealerships across the country with no resolution in sight. and federal regulators approve a new treatment and the billionaires backing president biden as his funding falls short of donald trump. it's friday, june 21st, 2024. you're watching "worldwide exchange" right here on cnbc. ♪ good morning. happy friday. welcome to "worldwide exchange." thank you for being with us. let's get you ready for the trading day head. it could be a big one. we kickoff with the stock futures after a really mixed session for stocks yesterday that saw the s&p and nasdaq finish lower despite hitting all-time intraday highs in the session. it looks like the dow would open 30 points lower. the nasdaq also down as well. for the nasdaq, it is coming off
5:02 am
the first down day after seven. it is still up for the week. up fractionally for the week. it is still positive for the week. the key to the market action is the wild ride for nvidia and what was briefly the most valuable publicly traded company here in the u.s. take a look at this chart. this is fascinating. it is down 2.5% after historic swing yesterday. from here to here. the nasdaq and s&p hit intraday highs. the nasdaq and the weight of this move really pulling down both markets. as i pointed out here, it was up yesterday before ending the day down 3.5% wiping out a record $246 billion in market value in the process. we will have much, much more coming up later in the hour. we'll talk a lot about it. in the meantime, we will
5:03 am
take a look at the nasdaq 100 movers. nasdaq down 2.5%. there are some stocks in the green this morning. gilead sciences is up this morning. two other semiconductor names, microchip tech and on semiconductor. we will talk about that chip space in a bit. we are looking at the bond market today. look at the benchmark. 4.23. falling a few basis points from the levels we saw yesterday. not a lot of movement in the bond market in recent days. we are looking at oil. it is down a bit this morning. wti down .3%. despite the ia report showing the crude inventory with a bigger drawdown than expected. that is the money set up. let's get a look at the
5:04 am
corporate stories with silvana henao. silvana, good morning. happy friday. hey, frank. happy friday. cdk says car dealerships across the u.s. will likely be out of service for days. this is following a second major cyber attack reportedly telling its customers there is no estimated timeframe for resolution. thousands of car dealerships rely on cdk software to run the day-to-day operations. speaking on "last call" last night, tom maoli says the knock-off effects from the outage cannot be understated. >> billions of dollars and trillions that are tied up and frozen. it will start affecting manufa manufacturers. that's the big downthefall here. if you can the not pay off the cars on the floor plan, you have
5:05 am
an issue. separately, lendingtree is having an issue with snowflake trying to determine the nature of the data leak, but says so far it has not identified any vulnerability or miss configuration. and tom barkin joining the wait and see on inflation and rate cuts. he said he need to see more conviction before moving on policy. now barkin is a voting member of the fmoc and says policy as it stands is currently well positioned. boeing is nearing a deal to buy back spirit aerosystems to shore up the supply chain. according to reuters, the talks which have been in the works since january, have been hung up on the spirit work with airbus,
5:06 am
but progress has been made to ease concerns in recent days. boeing spun off spirit in 2005, frank. >> silvana, thank you very much. we will see you later in the show. we turn back to the markets. volatility could be the name of the game today with the $5.5 million of options set to come to trade today. goldman sachs says the rebalance along with the next friday russell reshuffle could lead to explosive trading and take advantage of excess opportunities. joining me now is degas wright. good morning, degas. >> good morning, frank. great to be on with you. >> a big figure. $5.5 trillion in options expirations. also, one-third of nvidia options expire today. is this an opportunity or is
5:07 am
this a moment for concern or maybe something else? >> we see this as a moment of opportunity because as we see with the atlanta fed sticky cpi at 4.3. we are seeing that it is above target and that this gives us an opportunity because there will be some easing in 2025. this is opportunity as we look at the overall markets. as we do our research around the group analysis that looks at expectations and valuations and profitability, we're seeing opportunities in reits, finance and also industrial sectors. >> i want to get to your picks in just a minute. i want to focus on something you are focused on. economic reports out today. one is the leading indicator report today. one is flash pmi. estimates for both reports show a slowdown. pmi reports from europe show a slowdown there. what does that mean for
5:08 am
investors? what does that mean for the fed? what does that mean for just global investing? a lot of possibilities of a global slowdown starting to build. >> exactly. what this indicates is soft economic conditions going forward. this is going to make it a positive setup in 2025 for the federal reserve to start easing rates which is positive for markets. this is the time to look at your portfolio and see where are the opportunities. >> all right. looking for opportunities. you are looking at two opportunities in dividend plays. you mentioned them at the top. reit at 5.3%. the other one is a private credit lending -- a little complicated. i don't want to get in the weeds. dividend of 9.8%. i have been asking our guests this. are you worried about the price action when you invest in these
5:09 am
stocks? is it simply about the dividend with the market so stretched? >> we are looking at dividends, but we are looking at the actual business model. for instance, nnn has a unique business model. they are a net reit and focus on retail. just like 7/eleven and l.a. fitness and taco bell restaurants. they have a 94% occupancy rate. this is very positive for them. also, that's the type of business we're looking at. you mentioned blackstone. blackstone is benefitting on the rate they focus on. with the 9.8% rate of return for dividends, we are looking at both the business model and dividends. >> it is stable dividends. degas wright, great to see you.
5:10 am
>> thank you. >> for more on what is driving the markets, head to cnbc pro. we have more to come on "worldwide exchange," including the one word investors need to know today and why nvidia's wild ride could be just as volatile and yesterday. and president biden still trails president trump in support. and it sis a very busy sure when "worldwide exchange" returns. stay with us. as an independent financial advisor, i stand by these promises. as a fiduciary, i promise to be the financial steward that you and your family need. i promise to put your long-term financial well-being
5:11 am
above any short term transaction. everyone has a big picture. my job is to help you invest in yours. [announcer] charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com life's daily battles are not meant to be fought alone. - we're not powerless. so long as we don't lose sight of what's important. don't be afraid to seize that moment to talk to your friends. - cloud, you okay? because checking in on a friend can create a safe space. - the first step on our new journey. you coming? reach out to a friend about their mental health.
5:12 am
seize the awkward. it's totally worth it. norman, bad news... i never graduated from med school. what? -but the good news is... xfinity mobile just got even better! now, you can automatically connect to wifi speeds up to a gig on the go. plus, buy one unlimited line and get one free for a year. i gotta get this deal... i know... faster wifi and savings? ...i don't want to miss that. that's amazing doc. mobile savings are calling. visit xfinitymobile.com to learn more. doc?
5:13 am
welcome back to "worldwide exchange." look at u.s. futures. the dow would open up 40 points lower. let's see how europe is shaping up after disappointing pmi reports. we have silvia amaro with more on the early action. silvia, good to see you. >> good morning, frank. indeed, we are basically on track to see the stoxx 600 ending the week up by about 1.5%. however, looking at today's equity session, there's the fair amount of red across the board. looking at the cac 40 and the dax in the eurozone, they are down .50%. over here in the uk, we have the ftse 100 down by about .40% after the bank of england
5:14 am
yesterday decided to keep rates on hold. however, investors are increasing their bets that we are going to see a cut in august. let me take you to the corporate stories this morning. one announcement from britvic. they stated the board rejected two bids from carlsberg at 12.50 per share. britvic said the number under values the company. it adds it will consider any further proposal on its merit. carlsberg is considering its position. we have carlsberg shares down 8%. britvic rallying up 10%. all in all, frank, this corporate story highlights the interest that we are seeing recently when it comes to some of the uk names. >> silvia amaro live in the
5:15 am
london newsroom. thank you. we turn attention back to the united states and the cracks in the commercial real estate space. here in the new york city area, buildings have been sold at discounts. some at 70% lower than the original price. the commercial real estate data is predicting that this year and next year are the two worst years on record for office buildings with the floor space tenants are giving back or vacating. a major factor is elevated rates. some are holding off renegotiating or not able to afford mortgages if there are no tenants to pay the rent. let's bring in tour guest. >> good morning. >> i have to warn the audience. you come with a rosy picture with the real estate market when we get so much data that says quite the contrary.
5:16 am
i'll go to the commercial leasing down 25% compared to pre-pandemic. you had questions from reporting, but does that jive with what you are seeing? q1 ended a couple of weeks ago. now we're in q2. >> great to be with you. let's talk about the definition of rosy. it is all relative to the amount of negative headlines and generalization we observe in the marketplace. there is office space and everything else. apartment and self storage and hospitality and retail, of course, and many sub sectors that are doing much better than office buildings. office buildings have been hit by this side of the equation. we know this by the hybrid work space and pullback in tenant demand. at the same time interest rates doubled from where loans are maturing where they have been. that is a compounding effect. offices are in a different
5:17 am
category. commercial real estate has a whole has not been overbuild. there are pockets of overbuilding. the fundamentals with the economy doing well, have held up well, across non-office products. let's look at non-office. >> before we get there. you admit the steep discounts. >> no question. they have to. the reason for that is those are older and obsolete assets that are difficult to use and tenant. that is not surprising to see the 60% to 70% decline from the peak or the previous sale. even within office, that constitutes a fraction of overall inventory of office space. suburban office is better than your burban. >> that's a fair point. i want to go to another point.
5:18 am
large commercial real estate cut space by 11.5% in q1. does that go along with what you are seeing? people are re-signing, but less space? >> no question. more efficiency and reconfiguration of traditional offices to more team wwork and reduced footprint. >> you want to straighten this out. you want to straighten this out. what is going with commercial real estate? how good or bad is it or is there risk or contagion that may impact impact banks or the economy? >> the acknowlnswer on the cont if you have an asset that sells and investor buys it and release it is at lower rent. there is an undermining of rents when assets are discounted at steep levels come back into the
5:19 am
market. however, office space constitutes less than 4% of bank loans. that's why we have to zoom out and look at the whole dry. what we're seeing, as i mentioned last couple of times i've been on the program, time is bringing prices down. on average, we have seen 20% to 25% price adjustments across all real estate sectors and that is bringing buyers back. record capital on the sideline is aggressively pursuing these because they have been re-priced. that is before the fed helps by lowering interest rates. >> hessam, i love having you. great tie. great color choice. >> i don't know how that happened. >> great to see you. coming up on "worldwide exchange," a storied luxury carmaker bets pick on the ev future and robert frank has the inside look. robert, good morning. >> frank, this is the house that enzo built. the house where he first started
5:20 am
building ferraris in 1943. today marks a big chapter in his his history. wl arrothe ceo coming up right after the break. “the darkness of bipolar depression made me feel like i was losing interest in the things i love. then i found a chance to let in the lyte.” discover caplyta. unlike some medicines that only treat bipolar i, caplyta is proven to deliver significant symptom relief from both bipolar i & ii depression. and in clinical trials, movement disorders
5:21 am
and weight gain were not common. caplyta can cause serious side effects. call your doctor about sudden mood changes, behaviors, or suicidal thoughts right away. anti-depressants may increase these risks in young adults. elderly dementia patients have increased risk of death or stroke. caplyta is not approved for dementia-related psychosis. report fever, confusion, or stiff muscles, which may be life threatening, or uncontrolled muscle movements which may be permanent. common side effects include sleepiness, dizziness, nausea, and dry mouth. these aren't all the side effects. in the darkness of bipolar i & ii depression, caplyta can help you let in the lyte. ask your doctor about caplyta. find savings and support at caplyta.com.
5:22 am
(grandpa vo) i'm the richest guy in the world. ask your doctor about caplyta. hi baby! (woman 1 vo) i have inherited the best traditions. (woman 2 vo) i have a great boss... it's me. (man 1 vo) i have people, people i can count on. (man 2 vo) i have time to give (grandma vo) and a million stories to share. (grandpa vo) if that's not rich, i don't know what is. (vo) the key to being rich is knowing what counts. welcome back to "worldwide exchange." time for the big money movers. sarepta shares are up after regulators approved the request
5:23 am
to expand access to the gene therapy to treat a rare muscle wasting disease. we are watching shares of trump media and technology. shares are up 2.5%. this after a rough day for the stock that saw the price slide 15% adding to an already rough week. the stock has been on a slide since former president trump's criminal conviction last month. and delta is raising the dividend by 50%. it represents 1.2% based on yesterday's closing price. the dividend at 10 cents a share and suspending payments during the pandemic. we take you from flying commercial at 30,000 feet to flying at 180 m0 miles an hour. we have robert frank with more.
5:24 am
robert, good morning. >> good morning, frank. this building is where it all started 80 yearsing ago. enzo ferrari built this brand. we will take you into the future of ferrari. this building is the first all electric ferrari. that will not be released until the end of next year. they will build hybrid cars. this will allow ferrari to build more cars. they produce 14,000 cars last year. the wait time for a ferrari support to three years. buyers and dealers hope this could expand supply. ferrari will remain a hard-to-get luxury product. >> luxury company is a company that is using the technology and innovation and story telling and everything with the ultimate
5:25 am
goal to feed that emotional side that we all have. >> ferrari certainly trading like luxury stock. better than any other luxury stock. it now sells at a pe of more than 50 times forward earnings. it makes a profit of over $120,000 per car. frank, you have to sell 16 bmws or 27 teslas to get the dollar profit of one ferrari. that is why that stock is up 27% this year. frank, what is amazing, they make 14,000 cars. the market cap for ferrari is 1.5 times that of ford or gm. they, of course, make millions of cars per year. >> interesting stuff there. we're always talking about the consumer and europe and u.s. being stressed. is ferrari still seeing a strong demand from the wealthy
5:26 am
consumer? >> they are. the average sale the price of a ferrari is $380,000. those folks are the most immune to any kind of inflation trouble or economic slowdown. they say particularly in the u.s., which is the biggest market with one-third of sales, remain strong. the ceo told me yesterday, they see zero impact so far in the economy and geopolitically. >> we are spending a lot of time talking about ferrari. i'm hurt. we talk frank and frank and you go to italy and don't take me. we have bugatti coming out with a $4 million car. talk about that for a second. >> what is interesting aside from the price which is unbelievable, $4 million, bugatti is now owned by an electric car company. it was spun off from vw.
5:27 am
it was react -acquired. they are going even more primal with a 16 scylinder engine. the horsepower of the bugatti will be over 18 horsepower and the top speed over 260 miles an hour. this will be a rocket. i think a lot of people will like it because of that engine. just like we are seeing with the rest of the auto market, people don't want to go all-in on ev. they love the giant engines with the roar and sound and feeling you're in a super car. >> beautiful car. when you go that story, you're taking me, right? don't answer, robert. we'll have much more with your interview with the ceo coming up later in the day. i hope you get into one of the
5:28 am
cars. great reporting. good to see you. coming up on "worldwide exchange," why nvidia's wild ride shows no sign of showing down after the historic stock swing and the reason our next guest is dumping out of the magnificent seven name. we'll be right back on "worldwide exchange." stay with us. ♪♪ chewy, a citi client, uses citi's financial expertise to help drive its growth and keep its supply chain moving, so more pet parents can get everything they need... right when they need it. keeping more pets, and families, happy. ♪♪ for the love of moving our clients forward. for the love of progress. power e*trade's easy-to-use tools, like dynamic charting and risk-reward analysis, help make trading feel effortless. and its customizable scans with social sentiment help you find and unlock opportunities in the market. e*trade from morgan stanley with powerful, easy-to-use tools, power e*trade makes complex trading easier.
5:29 am
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. e*trade from morgan stanley want to save on some of the biggest names in streaming on or reverse orders so you won't miss an opportunity. the network made for streaming? x marks the spot. now you can add the new xfinity streamsaver™ that includes netflix, peacock, and apple tv+. that's xfinity streamsaver™ for just $15 a month. all your favorites. all in one place. only from xfinity.
5:30 am
for more watching and less spending... x marks the spot. do it all on the network made for streaming, and bring on the good stuff. it's just about 5:30 a.m. in the new york city area. there's still a lot more ahead on "worldwide exchange." here's what on deck. win streak snapped. investors prepare for a hat
5:31 am
trick of events to inject volatility in the markets. the stumble coming from the most talked about stock, nvidia, wiping out of play $246 billion in market value. the major cyber attack crippling business for thousands of auto dealers across the u.s. with stocks getting caught in the fallout. it's friday, june 21st, 2024. you are watching "worldwide exchange" here on cnbc. ♪ welcome back to "worldwide exc exchange." i'm frank holland. happy friday. we pick up the check of the u.s. stock futures after the mixed session yesterday. red across the board. the dow would open up 25 points
5:32 am
low lower. similar story for the nasdaq. speaking of the nasdaq. coming off the first down session after seven. despite that big decline, it is still up for the week fra fractionally. the big part of the market action for that wild ride is nvidia. the stock lower again this morning. shares down 2% after the historic swing yesterday. take a look at this chart. it traded up about 4%. here it was in the beginning of the day before ending the day down 3.5%. a huge decline throughout the day. wiping out a record $246 billion in market value in the process. it also brought the s&p and nasdaq lower on the day despite both hitting intraday highs. we are kchecking the bond market today. take a look at the benchmark 4.23. pretty much moving sideways in
5:33 am
recent days. that's the money set up. we turn back to the stock of the week, maybe of the year, nvidia. once at the center of the market today. bob pisani explains why. >> the s&p is having the quarterly re-balance today. the big moves up in nvidia this quarter is causing notable movement. the technology spdr etf has $72 billion under management. it tracks the s&p technology index. it, too, along with the other sectors are re-balancing today. the relentless rise of nvidia is up 44% this quarter and shifting the weighting. nvidia will go from roughly 6% weighting in the etf to a roughly 21% weighting. apple is doing the opposite. it is going from repubroughly 2
5:34 am
partly sunny 21% waiting. what this means is the fund is selling $11 billion of apple and buying roughly $10 billion of nvidia all around the close today. this is all because of federal rules, believe it or not, put in place in the 1930s. the reason these rules were put in place was to avoid having too much concentration of any one stock in an investment fund like a mutual fund or etf. the index like the s&p has no limits of how big a stock can get in the index. an investment fund like an etf does have limits. under the federal rules, no stock can be more than 25% of the exposure. the combined weight of all stocks bigger than 5% can't exceed 50% of the fund's holdings. right now, the combined weight of apple, nvidia and microsoft in the tech index is 64%. the etf has to adjust its
5:35 am
weighting. that's what it is doing. microsoft will retain the top position and apple and nvidia a distant third. here is a good example of how concentration can affect investment. back to you. >> thank you to bob pisani. here with me is james cakmak. good to see you. >> good morning, frank. >> bob laid it out for us. nvidia is weighting in the elx is going up over 20%. is that priced into the stock already and what do you make of the market action with nvidia we saw yesterday? >> sure. we do think it is largely priced in. at this point, we are left with 10% of next year. we capture a lot of the fiscal gains. that the point, as the stock has been running, we have been
5:36 am
syst sy systematically trimming it. i think the nvidia story continues to remain strong. you still have to stay vigilant with the rise, the meteoric rise. >> it is a meteoric rise. it is witching day. options are set to expire today. for you, the second biggest holding. how do you view a day like this and volatility? >> we have been increasing our hedges going into today ahead of the consumer report on tuesday. you know -- and trimming positions where we can. i think position sizing is important. a company like apple, that was
5:37 am
about a week ago one of our biggest weights. we exited that since given the fact that also we were at our next year's price target. a lot of that value has been captured. we are looking into other areas of the market in order to deliver the upside into the second half of the year. >> for people listening, you expect apple to see a downturn with the lower weight in the xlk. you mentioned you are trimming positions. are you putting that money to work in other areas in tech? if so, where? >> yeah, software. we talked about this a few weeks ago. we think with the economy slowing down, you have to find predictable revenue treastreams. we added in service now and one we made a good gain on, but had since sold it to lean heavier into tech and semiconductors
5:38 am
rather. now we're coming back into the software space. p palantir is another one. we are still keeping our semi exposure. >> brad was out a couple of days ago and he is hunting for opportunities. are you picking for opportunities? >> i think, overall, it will out perform relative to the other ind indices. at the end of the day, we are still bouttom-up investors. >> james cakmak, thank you. we have a news alert on the 2024 white house race. new numbers out for the biden and trump campaigns. biden's team and the committee raising a combined $85 million last month according to data provided to cnbc by the biden camp. that is the second best funding
5:39 am
for the president. michael bloomberg donated $20 million to the campaign. that is well behind $141 million for trump's team and the republican national committee claim they raised in may. $50 million came from timothy mellon. and coming up, china retaliating against the u.s. again. that name and the steps beijing is ting akis next. we're back on "worldwide exchange" in just a moment. it's all the things that keep this world turning. it's the go-tos that keep us going. the places we cheer. trust. hang out. and check in. they all choose the advanced network solutions and round the clock partnership from comcast business. powering more businesses than anyone. powering possibilities.
5:40 am
5:41 am
5:42 am
welcome back to "worldwide exchange." time for the briefing. japan cpi slips for the ninth straight money. it is considering hikes after the negative interest rates this year. shares of carlsberg sliding after britvic rejected a takeover offer. shares are up 11.5%. carlsberg shares are lower. the second offer significantly under values britvic. bloomberg says canada is preparing tariffs similar to the
5:43 am
u.s. and eu. justin trudeau is following the lead of the u.s. as the west is concerned over the china supply chain dominance. the china commerce industry says it may traigger a trade wa. coming up on "worldwide exchange," the one word every investor needs to know today and one cyber attack on dealerships across the u.s. the ocstks caught in the fallout. we'll be right back after this.
5:44 am
is it me... or is work not working? at least, not the way it could work. your people are buried in busy work. and you might be thinking... can ai make it all work? it can. on the servicenow platform, ai transforms your entire business. your people work better, your customers are happier, and todd... well... he's practically euphoric. practically. so, let's get to work. (♪♪) things will go wrong for your customers. but your business can make it right, with watsonx assistant. ai that can help resolve problems by understanding your customer requests with 90 percent accuracy. let's create customer service in service of customers, with watsonx assistant. ibm. let's create.
5:45 am
every shot is an opportunity. and success requires drive, resilience, - wow. - get it there. and sometimes luck. but what if luck had less to do with it? what if we had the tools to help us practice smarter, the insights to gain an edge, and the data to inform our strategy? taking our games from that... to this. yes sir. kpmg performance insights are transforming the game for the entire lpga tour.
5:46 am
welcome back to "worldwide exchange." a massive attack on cyber systems for dealers on the day-to-dayoperations. ja eamon javers has the latest. >> reporter: good morning, frank. today is the third full day of fallout in the auto dealership sector after the cyber attack cdk which makes the software that powers many auto dealers across the country. cdk said this was a two-tier attack on tuesday and wednesday this week. it is working to reinstate services and get dealers businesses back to normal soon. the company says it works with more than 15,000 retail
5:47 am
locations across north america. in trading yesterday, auto dealership stocks, carvana and auto nation got clobbered. you see the numbers on the screen. shares of brookfield business partners got hit, too. cdk global is one of their biggest holdings. on "last call" last night, celebrity motor car tom maoli described what dealers are facing. >> customers are coming in. consumers are coming in. we are selling cars, but we cannot book the cars or get them to the banks. >> reporter: now so far no word from the company on who may have been responsible for this attack or whether any ransom has been in demand or whether dealers will reservices restored. a lot questions as we go into the third full day. frank. >> the question is what can they do to get back into business?
5:48 am
>> reporter: they are in a tricky spot, frank. it is a third party provide. if it is a ransomware attack, cdk has to necessity gloesh yat wit negotiate with the attacker here. there are reasons why they would not want to pay the ransom even though customers are demanddemandeding to have the service back up and running. short of ripping out the software, they will have to find work arounds. >> eamon javers, thank you. coming up on "worldwide exchange," our next guest says markets may be at a key moment as investors are preparing for a triple threat of volatility today. and if you miss us, check us out on apple, spotify or other podcast apps.
5:49 am
more "worldwide exchange" coming up after this break. stay with us. s. work with principal so we can help you with a plan that's right for him. let our expertise round out yours. a slow network is no network for business. that's why more choose comcast business.
5:50 am
and now, we're introducing ultimate speed for business —our fastest plans yet. we're up to 12 times faster than verizon, at&t, and t-mobile. and existing customers could even get up to triple the speeds... at no additional cost. it's ultimate speed for ultimate business. don't miss out on our fastest speed plans yet! switch to comcast business and get started for $49.99 a month. plus, ask how to get up to an $800 prepaid card. call today!
5:51 am
bloomberg is repositioning
5:52 am
itself as a challenger above $4 billion. starboard losing the battle of auto desk. that could threaten the attempt to replace auto desk's board of directors. shares down 1%. china imposing sanctions on lockheed martin. beijing will freeze assets from executives and bar them from entering the company. boeing is nearing a deal to buy back spirit aerosystems. taking a look at shares of spirit, up over 3.5%. fmoc voting member tom barkin says he is confident the fed can achieve the 2% target. shares of sarepta are surging up 36% after approval to expand
5:53 am
access to the gene therapy to treat a rare muscle wasting disease. and bugatti will launch a car that costs $4.1 million. it has three electric motors with 1800 horsepower. bugatti -- beautiful car. they will produce 250 models. we were showing it earlier with robert frank. here is what to watch today. we get flash pmi at 9:45 a.m. followed by existing home sales and index of leading indicators at 10:00 a.m. that is something degas wright was looking at today. we will get numbers from carmax before the opening bell. s&p and nasdaq is on lows. joining me now is jenny
5:54 am
harrington at gilman asset management. good morning. >> good morning, frank. >> we were talking about the volatility yesterday. nvidia pulled the markets down. today is triple witching. a third of the options come up for expiration as well. what do you think? does it maybe you concerned or see an opportunity? >> neither. i just think we're at a point of inflection and that's my word of the day. inflection. that's where we are. when we are thinking about that, i don't know the inflection means we're going down which means we create opportunity. we are starting to plateau from here. we're on the 15%. if we did this expectation, if we continued this pace, the market would be at 6,250 by the end of the year. that doesn't seem reasonable. i think we're at this inflection
5:55 am
point where leadership is inn flekt inflecting. >> your wex word of the day is inflection. we are at an inflexion point when it comes to the election. we were talking about the biden campaign raising money. ned was out with research and saying the meaning theful gain for the s&p is 5%. do we have more upside? is this a different situation with a.i. and other things going on in the world? >> you know what is interesting? that and nvidia are in the same camp where they pulled a lot of things forward. this is a very forward and well informed market. we process information today faster than we have in the past.
5:56 am
knows that ned davis statistic, i think that is already in the market. nvidia pulled forward the stock split. that's in the price. i don't think we get that bump the same whay we did in the pas. >> ned davis raising the price target. a flurry of price target increases in recent days. we get pmi later today. services and manufacturing. the estimate shows contraction. is that meaningful? the markets reacted. could we see a similar set up with the flash pmi? >> the point on that is the word you used. flash pmi. that is short-term. it will revised ten days from now. unless it is something extreme, i don't think we blink an eye. if it is remotely in line, the market yawns and moves and waits for the real number in ten days. >> everybody talks about nvidia.
5:57 am
the comparison -- >> so boring. >> if nvidia is the new cisco -- have you heard that? >> yeah. there was a great article in "the new york times" yesterday. i'll jump ahead where they were comparing cisco and nvidia. they said the last time a computing infrastructure stock reached the largest position in the market, it was in march 2000. it was cisco. it did not bode well afterwards. maturity kicks in. what goes around comes around. one of my picks for the day is cisco. what you have here is cisco trading at a multiple of 12.5 times earnings. it is like a 60% discount to the tech sector. you cannot have an a.i. boom without network improvements. they are coming off this
5:58 am
inve inventory correction. i want to be ahead of that. it will not be whatever nvidia has been. it will not be a ten bagger again. it will be 10% or 15% return. >> i know you are a dividend investor, too. given over 3% is attractive. quickly on this one, jenny, you gave us another pick in the transport space. gxo. why are you bullish on gxo? >> you know how we were chatting the other day do we wait for the market to correct? you always put money to work. this is at a 52-week low. it doesn't matter. it is trading at 15.6 times earnings. it has 8% earnings growth this year. why is it down so much? i'm not really sure. it was spun off from xpo. it is the logistics outsourcing.
5:59 am
we know spinoffs don't get a lot of love. they had the first quarter earnings report. it is a fabulous company. when you have mid teens earnings growth, this doesn't make sense. >> we have to say good-bye. that will do it for us on "worldwide exchange." coming up we have "squawk box." have a great day. good morning. shares of sarepta are soaring after the company's gene therapy to treat a deadly muscle disease was granted approval. campaign financial disclosures were released revealing one disclosed from a reclusive billionaire and it was to former president trump. auto dealerships across north america could be facing days of outages after a key software provider suffered a cyber attack. it's friday, june 21st, 2024.
6:00 am
days are getting shorter. >> stop. >> "squawk box" begins right now. ♪ good morning, everybody. welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm becky quick. this is joe kernen. andrew is off today. it is friday. we are almost there. yes, the days my be getting shorter, but also getting warmer. we will have the lazy, hazy days of summer coming up. it's okay. i can live with the shorter days for now. >> winter is right around the bend. >> you do this. >> friday. it's almost monday. >> don't drag me down that way. i want to enjoy the summer. >> see

65 Views

info Stream Only

Uploaded by TV Archive on