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tv   Squawk on the Street  CNBC  June 16, 2016 9:00am-11:01am EDT

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enormous shock, positive shock productivity-wise which i don't see. >> wow. >> we haven't talked about the effect segment. that has a way of transmitting volatility elsewhere. don't forget what's happening on the effect side. we learned that before and we're going to learn it again. >> homemamohamed, thank you. >> that does it for now. see you tomorrow. right now it's time for "squawk on the street." >> good thursday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer. stocks are off for a sixth day down. central banks are the story all around the word, the fed, the boe all stand pat. we begin with central banks
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moving the markets. record low bond yields, new attacks on viacom, and at merck shares are rising in the premarket. but obviously a lot of review to go over on what the fed said yesterday, jim. >> yesterday was a kind of admission, it wasn't even tacit, that maybe we're in a kind of different era, which is so interesting because a couple months ago they certainly didn't think we were. and that's going to cause the i'd say kind of a grumpy attitude toward the fed, people who say they've lost it because they now feel look they're swinging in the breeze, the pundits. wow. all of a sudden we're much weaker than we thought, previously much stronger than we thought and we're data dependent. it does add up to something that i want to step away from and say it's good for stocks. so we can talk fed policy, as if we are indeed fed members. i'll let you be from -- i don't
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know, some west coast man and i'll be a philly thing. when it clears, we can go back to clorox and back to -- look at procter & gamble after these problems. >> living on clorox doesn't sound like much fund. >> good yield. clorox is very popular again. kills germs. i always like to reduce things to the stocks that people have in their house, in their pantry, in their refrigerator, in their drawers because these are the companies that can make you money in that environment because they do not need growth. they do have dividend growth. they are the companies you can look at. edgar allen poe is right, they're right in our face and they work in this environment. i don't want people to give up, i want people to refocus and recognize we don't have our wind
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at our back with the economy, which means we have to switch direction and look inside our kitchen and look inside our bath. >> doj and doe, brexit has frozen everybody. sterling likely to depreciate further, sharply. what are we going to do? >> we can't go over and buy land. it was ridiculously overvalued the last time i tried to kick the tires a few months ago. we're now getting that 11% down number. we're watching deutsche bank. i saw an update of jpmorgan, bbva, these banks are so inexpensive and so dangerous at the same time. they are all in the wrong currency so to speak. now brexit's become -- it's almost like someone was saying last night at dinner, jim, why don't you do more fear
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mongering. we were eating fish. what's it like to be a fish mongerer? i'd rather be a fish mongerer than a fear mongerer. if they're starting to give you 11% sterling, i like the idea that it's quantified. 11%, i'll take it. because that gives me at&t at a 5% yield if we go down commensurate. we shouldn't go down commensurate. we should go up. the fed didn't do anything to make the dollar strong. if you're looking for a job that's higher paying, that news yesterday was bad. if you're looking for yield that's lower but still good -- someone downgraded dominion today, which happens to be one of the finest power companies. they have the most inexpensive power. jpmorgan. one of the things i like, these power companies, their fuel's down, the footprint for construction is up.
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we're not having a total shutdown in industry other than in oil, which is coming back a little. all these add up to a whole group of stocks that seem attractive to me in light of the fed. >> meanwhile the macro we haven't touched on. philly surprises to the up side, cpi is up three months, 220 year-on-year. >> that's rent. we're still building as many houses in this country as we did when our population was literally 50% lower. there's just tremendous demand for housing. the reason there is is because the rents have gotten out of control. certain parts of the country are adjusting but for the most part rents are too high and it's too hard to get that low. they're not giving loans with lower fico scores. the banks don't want to risk it
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and give you that loan to go buy a house so you're stuck renting. renting's going up. good article today in the times about how your premiums for health care are going up because the exchanges aren't working that well so you got a situation where the people who are not doing well are doing worse than well, and that's one of the things that i think the fed -- i think the fed has a heart. i know that's contrary to what -- like the fed has a heart. >> not much condolence when you're earning pennies -- >> the average person in this country has a thousand dollars savings. gee. one catastrophic illness and you're wiped out. >> a lot of talk about health-related bankruptcies in this country. >> suze orman taught us that. always tells you do not forget how much a catastrophic illness can be in terms of putting someone in bankruptcy. you know, dr. oz, who is a real doctor told me. he said, jim, why don't you emphasize enough what a
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catastrophic illness does to someone in america. it just bankrupts. so you have some real negatives plus digitization. there are different parts of the economy that aren't that good and rent and health care insurance are bad. they're just going up. >> let's move on to viacom. sumner redstone firing a new salvo. the media mogul says they're ignoring his wishes and not acting in the best interests of shareholders. last night on "fast money," tom fredston said his legal battles with his ex-girl friend are overshadowing the real problems with the company. >> the whole soap opera, the
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real story is the fall of viacom from grace over the last several years. it was one of the leading television networking companies in the business and now it's fallen to a level below really any of its peers on almost any metric plagued by all types of problems, including creative departures. >> goes on. says he's not interested in coming back to do the job. redstone wanted to buy myspace, was upset when they lost it to murder okay. fred stone said he wanted facebook instead. >> it's a battle of who can be more ugly and more critical. i keep thinking what does it mean to the stock and i keep coming back to that if you think that these people have run the company into the ground, they're being very -- they're paid very well to run it into the ground. that's what you heard. now, i thought he made points in that we know viacom is something we can easily do without in terms of realtime. i think there's a whole
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generation that think that viacom is hulu. they don't know the viacom programs. hulu, we don't talk enough about hulu. a lot of what is a viacom product is no one knows is a viacom product. >> sure. >> any time -- executives hate when you say i watch things for free at home because, oh, don't say that. but it's true. but i do need wifi and hence a call about charter going higher. this was on a call where city says charter has new growth after the time warner acquisition. so there are absolutely winners and losers here but viacom, unless you think that all of this is going to precipitate a sale, of which i don't know who would buy, wow. it's a great source of key words and search engines.
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and can we get some uniformity? this is a plea. i have a plea. can we just get one shot of sumner redstone? i have shots when he's 30, 60, 80. >> the one we just used looks nothing like -- >> we got to have one standard redstone shot. it's too hard. i would like to do a wall of redstone. right? well, here we go. we could go with that one. how about the younger one. >> sumner would probably prefer we use another one. >> oh, i like that one! that's a good redstone. that's an okay redstone. that's the good, the bad and the ugly. ooh, wow! look at that redstone. now we're talking redstone. whoo! happy redstone. all of these i think play a role in our perception of the man. >> this is some good b-roll right here. >> this is fabulous in is a guy who is feisty. feisty redstone. >> a lot of the discussion yesterday was when he visited paramount and didn't leave the
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trailer, if that was for security sake, was it age, was it just inconvenience? we don't know the answer to the question. >> it must have killed buzz feed. don't you think buzz feed had -- they're going to do the redstone wall. we did a pretty good job just now. >> good call. >> thank you. there's a lot of redstones. i'd like to know which is the real redstone. >> i'm told the white-haired photo is two years old. we should probably put some dates on those. >> maybe he went to allergen. they have everything. >> disney opening a new theme park in shanghai. we'll get a live report on what has been a tough week for disney here in the states. first five-day losing streak since february 11th. we look to continue it in the open. more "squawk on the street" in just a minute.
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after more than a decade of planning, disney opening its new $5.5 billion theme park to the chinese public today. we're live from shanghai disneyland with more. hey, eunice. >> hey, carl. i don't know if you can hear me over the fireworks display
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behind me. this is the end of a very important day for disney. tens of thousands of people visited the park today here at shanghai disneyland. the average wait time outside the gate to get into the park was two hours. now, as i said, this is an important day for disney. the ceo told me last week that he sees this park as a booster rocket for the business here. he's hoping that eventually people are going to come here and then at one point they're going to go home and possibly buy more tickets to disney movies and products from disney stores. now, there is some reason to believe that this is going to be a bet that will pay off. by disney's own estimates, 330 million people live within a three-hour radius and can travel to this park by car or by train. and so disney's reasoning is
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those are people who can afford to vacation here. now, if you believe as many economists do that the economy here is on an upward and advancing and household spending is becoming a bigger and bigger role of the economy, then disney is well poised. now, the consumers here are coming to see a lot of the different attractions. 80% of the attractions are -- including the upgraded version of the "pirates of the caribbean" ride, a ride that is entirely new and they're here to see the largest castle, disney castle in the world. it's something everybody has been talking about. they're really excited to see it and probably especially right now, carl. >> unieunice, that was a live s of the ages, occupational hazard of going live from the theme
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park. we'll hear more from you later on. 300 million people within a three-hour train ride, expected to be the most visited theme park in the world. >> there's obviously some terrible sadness overshadowing the disney story, the child and the alligator. i've been waiting for this a long time. it seems like the most natural place to have it. now we are stuck in this world where we talk about espn versus this but to me parks and movies, this is why you own this stock for the next five years. the next five days, no. the next five years, this is impressive. i think they're going to love it. >> do you worry about theme park attendance in the wake of this gator attack? and now more reports about whether or not signage warnings were appropriate around this lagoon? >> you know, you spend much more time down there. i covered disney when i was a reporter in dallas and been with my family many times.
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i'm just going to say it point blanc. i think it's the safest place on earth. once we went after a trerrorist attack and i remember saying do i have any safety and the security was more tsa like than i've seen. i did lose my glasses once on space mountain. they went up and i went down. but i do think that it's just -- it's home, okay? it's home. i've taken my kids to many theme parks. we love theme parks. i never once fell any safer at any one other than disney. >> i worked there in college for a semester. it's an amazing place to work. reports that iger talked to the graves family, who lost their son, lane, this was supposed to be a huge week for the company. the launch of the park, finding dory and a lot of it is being overshadowed. >> i think "finding dory" is going to be very, very big. we have to remember at home that
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disney, think about it five, six months from now. the last movie wasn't that good but this is a franchise made up of many franchises and there's going to be accidents and tragedies in anything. i always find it's amazing how few there are. i covered a death at a roller coaster when i was a homicide reporter, and it was literally something where they actually had a similar weight of object as the person and it did fly out of the roller coaster just exactly where the person unfortunately flew out. i always said i'm never going to go on their coasters but i'll always go on a coaster. >> given the amount of people they see every year. >> this place is a vast city every day and it's a safe city. >> we'll watch that. obviously a big week for disney in china for sure. when we come back this morning, we'll get cramer's mad dash and count down to the opening bell. s&p hanging on to a 1% gain for
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the year. more "squawk on the street" from the nyse still ahead.
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eight minutes until the bell. let's get cramer's mad dash ahead of the open. >> i'm convinced with this turmoil, you have to folks on domestic plays that work. i'm gratified to see kroger made the number. what really matters here is that kroger had been the go-to domestic name for retail. the dollar stores then surpassed it.
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but this is a kroger -- this is a place to go. now do you want to buy it up $1? no. and i don't want to say kroger is back. i'm saying the lower expectation krog s kroger is better. it's funny because it's going on at the same time as whole foods, which is better. you put them on the list. >> we got rite aid, which was a miss. >> rite aid, this is one of those unfortunate things that happened also with family dollar. when you have a protracted buy, remember walgreens made that bid in october. it made it so rite aid could lead. the store is clean. it's just a natural evolution of what happens when you're just stuck in limbo. the government has looked askance at a lot of takeover deals.
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we're looking to see how many rite aids will be disposed by walgreens. i think this number was a miss in part because they're in limbo. you'll see walgreens down more than -- i'm anxious to buy it. once family dollar merged with dollar tree, that went away quickly. or walgreens has to walk away and that's not what's expected. >> i do hear you, though, coming back again and again to depot, kroger. >> i have to. >> domestic-based companies. >> yeah, because we've got -- we're better than the other guys and money has to flow somewhere. it's unlikely to flow into that tenure, which is a lot of foreign many coming in. the fed is not selling its bonds. you look and say who is going to do well? this kroger is an overreaction that you get to an inline number given the fact that we are so desperate for america's first
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stocks and kroger is one of them. >> flat is the new up. >> orange is the new black. >> which is new season is coming. >> we're going to get the opening bell in just about five minutes. don't go away.
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you're watching "squawk on the street," live from the financial capital of the world. the opening bell in about two minutes' time. busy day with the fed now out of the way, a lot of macro claims, cpi, philly all running to the warm side. >> yes. >> the president is going to orlando later today to meet with the families. we expect a statement. boe, boa, expected to stand pat. are we frozen in place ? >> no, because oil is going down. oil is going to take the market down. watch for pioneer pxd, 5.25 million shares they are selling to raise $827 million to buy good assets from devon in the
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permian. 42% boost in exploration. what does this mean? it means that we are pumping more. now, yesterday's numbers if you broke them down showed there is a little bit of decline but not as much as people expected in the u.s. when you see this drilling and you look at that rig camera friday, people are getting very uncomfortable saying we were going right from 50 to 60 to 70 and that was it. >> it can't be that easy to listen to him and do the opposite. >> it can be. >> it can be. >> nice guy. did i tell you how nice he was? >> yes, you have. >> he is. >> meanwhile, people looking at -- i got to tell you, when i look at what they were saying, people are not going to hear about this, they're going to sell apple, jpmorgan does a
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price cut that amounts basically from a hold or a buy. when i go over it j-bill quarter, i begin to use credibility for them. just to quote them so people don't freak out. they say there's going to be a snap back and they say it will be and approximately. >> there's a look at the big board. wisdom treeing celebrating the tenth anniversary of the their first etfs and clipper around the world race, celebrating the final leg from new york to london. >> larry ellison. oracle's tonight. >> oracle is tonight. >> he's a competitor. never get between ellison and anything. you know how you can't get between a bear and its cub? don't get between ellison and anything. >> although oracle said it's no longer cheap. >> everybody else is trying to
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be bigger in the cloud, that's been working, trying to pass sap, trying to crush workday, trying to rival workforce. but there's been some poor reception to some deals. microsoft was poorly received linked-in. i liked it because it gave them growth. but kafium buying q logic. q logic goes up against emulex. another man like ellis, you don't want to compete with ha-tan. doesn't get talked about enough but i just did. >> on the heels of credit suisse
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yesterday saying the iphone 7, the real innovation is not going to happen? >> no. they talked not that lovingly about the watch. well, the watch, i still wear it. i like the bright one, too. the wife says where is the bright one? it's nighttime. i said, come on, i'm not going to switch watches at night. >> we'll watch that, apple. yahoo! up into a buy with a 43 target. mark may saying now we're seeing incredible bids for this business. >> you're talking bid for the yahoo! the tele-cos want to be in there. jack did give that rah-rah speech. now, the millennials. i was thinking about doing this
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company no millennials allowed. i'm so sick of everybody -- no, i'm anti-millennial. i don't know if they use yahoo! like the argeriatrics. i want all the geriatrics, the worst people to appeal to, geriatrics and they use yahoo!. >> they have the money, they just don't spend it. >> they're colgate, they started colgate when they were 9, they're still using colgate, they will not switch from bud, they like nike so they're always going to be with nike and that's who you want. but i got to tell you, i look at some of these companies like yahoo! and i say did they -- did they become myspace to millennials? my kid don't know yahoo!. they just don't. >> you mentioned nike. down 2%. under armor is right there, too. it brings to mind the spirited
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conversation with chip wilson. >> yeah, chip wilson. i didn't know i was going to a genuine buzz saw when i went into that interview because i was going over all the research and went over the quarter and margins were up, he said margins were down, mens wear was fantastic. he said mens was bad. he's a tough to please guy! i was waiting for him to bad u mouth the cubs. i was waiting for him to be critical of vaughn miller and the broncos. this guy is going up against the number one guy. steph curry, he almost said that his three-point shot is not as good as it was before he hurt his knee. >> terrible. we're going to see what happens with this game six. >> i still like lulu. who are the people he didn't like on the board? there's two people we had come up with he sealed to have felt were not as helpful. he was funny, too. i like him. he's feisty. he's feisty and wrong, which is
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even better than just being feisty. >> amd, we're going to talk to the ceo this morning on squawk alley. >> that guy's on fire! they're back. >> takes it to a buy. basically on the promise of vr. >> yes, that note was very good. nvidia on the graphics chips and amd is going to 6, carl. they have their mojo back. they've got mojo. you figure out the price to earnings. but advance micro, that stock is going to six, i think they have a window to do so and take some share even. i'm not kidding. the fact that he's willing to come on, jerry sanders is the last time i remember seeing anyone from amd. nvidia is really back. >> heck of a year to date gain, 50%. >> if you're back, you get rid of that discount are they are
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going to go away. they're not going away. you've been getting great bookin bookings, wrecking my 11:00 because i'm trying to get some work down. >> what's down with the airlines? american airlines down. >> bank of america downgraded american. this is a group that is -- you no, honestly, this group is in the dog house. they're selling now four and five times earnings. okay, it's true. they probably won't make those estimates but to take it down to a sell now bank of america on higher oil prices, sell now? but the group is so hated. someone called me last night on "mad money" to ask what i thought about southwest and i said best of a bad buy. the airlines, they're just being viewed as value traps and i'm not going to say go in there and be brave, other than for southwest, which is doing really well and has done well.
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look at down southwest, under 40. this is a group synonymous with the market and it makes the market seem really ugly. >> boeing under pressure as well. this reported deal to sell 100 passenger jets to iran getting a lot of pushback, although the defense companies yesterday and -- >> defense. nato is going to start spending. we've been nato for so long. i don't mean to be political but nato has really had a free ride, the other countries in nato. >> dow is being dragged lower by nike, goldman and boeing, down 110 to start the day. let get to bob on the floor. >> another weak day. this is the sixth down day on the s&p, it's at least the sixth down day. it has to go back at least to february. it's even worse over in japan. nothing they do seem to matter at this point. of course the bank of japan decided to stay put, but we saw the yen spike up and we saw the
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nikkei drop notably. the nikkei is down about 10% this month so far. the end is up about 5 or 6%. so another day of declines over in japan. it wasn't much better in europe. this is another day of slow motion declines. germany, france, spain, all to the down side. this is -- europe is already down depending on what you look at, 7%, 8%, 9% so far this month. the real damage is in the big european banks. deutsche bank hit a record low today. my records go back 20 years. this is a ten-year chart that you're looking at. but look at these numbers here. you're looking at 14 here. we were at 150 back in 2007 or so on deutsche bank. so record lows of some of the lows. commerce bank another one of the huge banks in germany.
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this here again going back ten years. let not quibble. we're essentially at record lows. it's not much better elsewhere. credit suisse over in switzerland, this is another historic low. my records go back 20 years on that and i don't see anything lower than what we have. ubs is behind. we have brexit concerns, low interest rates, profitability woes. what else could go wrong here? historic lows got a lot of attention this morning. here in the u.s., the bank stocks, we're not at lows but leaning to the down side again. energy a little weaker as oiled failed at $50 and generally trending to the down side. bank of america, regents, financials.
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we're see mid single-digit declines in all of the major banks. elsewhere tim is mentioning kroger. the earnings beat is pretty good. they affirmed their supermarket growth guidance, stock up 2.5%. this stock has not been big and popular recently but may retail sales were pretty good. we know the grocery industry is competitive, there's pretty low returns. there's concern that the top-line growth is decelerating for krogers. in some cases, the prices are down for them but they're still growing. the profit growth is up and we're still seeing top line sales growth numbers, 5%, 6%, somewhere around there. so i don't think people give kroger much of a credit in this kind of environment. they're doing fairly well. finally, you know things are interesting when i start getting messages asking about gold,
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which we haven't got i don't know -- gotten in a long, long time, and i think newmont is up again. finally once again gold back in a big way. the dow down 114 points. >> gold highest since august of 2014. >> i like gold. i like gold very much here and the stock to buy is rand gold. they've got the best assets. they had a quarter that was a miss. i think they'll come back. gld is fine, bullion is fine. there you have to have a safety deposit box. do not put it in your house. >> we are getting a developing sorry out of the u.k. will fred? >> thanks very much. we've confirmed reports that jill cox, a 42-year-old mother of two and u.k. member of parliament for the labor party has been shot and is in critical condition.
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before that she did humanitarian work, including working for the bill and melinda foundation. we're told she'd been holder heg regular weekly meeti-- holding regular weekly meeting. a 52-year-old man has been arrested for this. shootings of this nature very rare in the united kingdom. >> let's show a long chart, a ten-year chart. since 2007 since we've been this flat. the reason i extended so much farther back in time is to see where we came from. i think that's very important.
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let's show 10s minus bund. think about the bund as an athlete running who has had central bank performance enhancing drugs. we're running and catching up. the gap is getting smaller. that's important to get the pro active direction to see who is influencing who. add in the central bank has no confidence to raise rate even a quarter point after all these years, another quarter point after all these years and there you go. now let's look at 10s directly. let's take a ten-year chart of 10s to see how much history is behind us here, even though yields are hovering at the lowest yields. we're like a dangling pa participle, we're going lower. now in terms of the dollar yen,
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the dollar is going down. and now why am i showing all these charts? because if you think you know what central banks will do, maybe it not working out so well. a lot of counterintuitive activity, especially in the yen. back to you. >> good morning, jackie. >> oil prices are lower today despite the fact we saw the inventory drawdown yesterday. oil hovering around that $47 mark. it's getting momentum here to the down side. when it takes out key technical levels, it going to continue to get momentum to move. we just broke under 47 moments ago. two main issues here affecting oil prices, the first would be the upcoming brexit vote. the concern is it could wreak havoc on the market, could be an impact on global growth and that could impact crude prices. then you have the dollar, the dollar index trading around 95,
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particularly against the euro. crude still holding the high end of the range here but expected to move lower in the next few days traders tell me. that momentum is building. you have the metals complex higher today, despite the fact that we have the stronger dollar. that's because the safe haven is in vogue again, gold getting over that 1300 mark and getting mome momenti mome momentum to the up side. >> and coming back "orange is the new black," the reviews are in. the s&p done to 2056. i was working in the yard, my chest started hurting
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since you're here, i got to ask, have you been watching all the election coverage of donald trump? >> no, but i have been watching
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my new favorite show, orange is not the new black. >> oh, i'm going to need you to netflix and chill. i get it if you're a little wound up after all this time. i can't imagine what it would be like to do the same job for eight straight years. >> jimmy, you probably never will. >> that was the president on the "tonight show" last week. season four of "orange is the new black" begins streaming tonight at midnight. reviews of the early episodes are in, mostly positive. according to "rolling stone," to say the drama is highly bingible is a huge understatement. early episodes are as compelling and entertaining and well written and acted as they have been for the last three. this might be the show's most sprawling season yet, its darkest and maybe its best, too. what investors will care about it -- >> netflix.
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it has in the past led to some subs. we all have those shows that we watch and don't tell our spouses. my wife watched season three and lied. well, she fibbed. she was misdirected without me. said, no, i haven't watched it yet. then i did it with banshee to get back to it. no, they're watching it without you. they're not telling you the truth. >> i've made the mistake of watching the pilot. my mom happened to be visiting. not a good idea. it's a hard core show. >> yeah, but i used to watch it with my wife. she thinks i don't know she watched it. she doesn't understand i follow these things. >> netflix has a story, a stock story. >> just dead in the water. we had a lot of people say don't worry, data is good. the last quarter was a subpar
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kf conversation on the conference call where they talk about australia being the reason it was weak. you contrast that conference call with an amazon. you just kind of felt the momentum had been lost for netflix. it can come back in a second. those of us who watch their programming know you put three really big straight hits and it's -- >> doesn't the prospect of another big player jumping in with content with cash, i don't want to mention names. >> it does. we can see over and over people multi-task and can see more programs. i've seen numbers that say people who are no longer millennials are watching an additional hour on tv. he's appealing to the geriatric cohort. i picked deodorant and i'm all
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spice and i'm never going to switch. >> my grand dad was old spice, too. >> the millennials, i don't know, they probably wear some natural things, i don't know what they wear but netflix is not rolling. >> the dow is down 121. don't go away. and with her, a flood of potential patients. a deluge of digital records. x-rays, mris. all on account...of penelope. but with the help of at&t, and a network that scales up and down on-demand, this hospital can be ready. giving them the agility to be flexible & reliable. because no one knows & like at&t.
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get better internet installed on your schedule. comcast business. built for business. i want you to watch merck. this is for first line treatment for something that's doing better than chemo for lung cancer and i think -- one particular type. but that stock should be higher. this is a breakthrough for merck. if you think the market is going to turn, they're going to reach for merck first. >> we'll see. but oil is an anchor.
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>> oil has to go up to get anything to happen. >> what's going on on "mad" tonight? >> we have stanley bergman and doug meritt, big data, that's about big data. people have to understand that not everything is a big joke in tech. remember that linked-in, got paid a lot of money, splunk got a lot of money. i'm urging people not to jump ship. oracle, it's a very inexpensive stock. ellison, he has an island. it like a country.
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i want to visit his country. maybe if it's a good quarter and i say something good, he'll let me in. >> when we come back, morgan stanley's equity chief adam parker. early session lows down 130.
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♪ ♪ >> good thursday morning. welcome back to "squawk on the street." david faber's off today. s&p taking the losing streak to six. central banks are a big story, strong yen, oil below 47 and gold near a two-year high. >> the national association of home builder survey is out. let's go to diana. >> home builder sentiment rose two points on the index. anything above 50 on this index is considered positive. this comes after four straight months of no moves. it is the highest reading of january of this year.
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it is, however, the same as june of 2015. owners say they're seeing more committed buyers, and that may be due to a smaller supply for sale. sales expectations took a big leap up 5 points to 70. that last one still stuck in negative territory. the south and west saw gains but the northeast and southwest you a a drop. >> markets meantime continue to move lower. the dow down 150 points now with financials and oils leading after the federal reserve's warning about an economic slowdown. fed chair janet yellen saying
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the fed expects two hikes this year but consensus seems shakier with 6 out of 17 policy makers expect one hike. and adam parker joins us from the senior multi-culture leaders conference in new york. good morning to you. >> good morning, simon. >> how are you fielding calls that the fed is to wary to raise interest rates and this commentary from some that they may be capitulating and may actually not rise again through this cycle? >> our calls from our chief u.s. economist said there would be one hike in december and the fed would have to mark down their own forecast. she's been right on the fed calls. i see no reason not to listen to her, while she sits right next to me so might as well pay attention.
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>> good move. if the most powerful bank in the world is getting more nervous, what does that mean for the equity market? >> one of the things that i think is funny, if you think there's one hike, you're dovish, and if there's two, you're hawkish. given it's so hard to think about the rate environment, i think you have to be balanced across the stock market. you have to own some defensives, even though they look expensive because if rates don't back up, you're going to be hurt there. we're overweight utilities and underweight staples and in the growth part we're overweight health care and underweight tech and macro sensitive stuff, we're preferring financials to energy because --
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>> the market continues to fall, down 161 points. the central bull case that you're making is that corporate earnings expectations are probably too low for the next couple of quarters. the question, as you raise the question, is how do you weight the bull and the bear case as the environment moves forward? >> we've been bullish a long time in the market. we got a little more balanced a couple months back and part of the reason is because the base ka case had been rerated. i was forecasting 4% earnings on february 11 for the s&p this year, forecasting 4% now, the market's up 13%. you felt like had you to get a little more cautious, be a little more disciplined. that's really only discussing the base case. maybe it was the bear case and bull case moving the market. i think the bull case would just be earnings expectations for the next couple quarters are a little bit too low and people clearly aren't positioned for a big up market yet.
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so if you get a bermain or someone like that, you could see up side through the july earning season. >> adam, it's interesting that you like financials and utilities because what ends up happening in this market is late live they find themselves on the opposite end of the spectrum with utilities outperforming on the low rates idea and financials sharply underperforming and how do you square that? what does it say about the rate call and how that's going to translate into sectors performance? >> sarah, you're exactly right. these risk management 101. if you just can't to make a bet rates are backing up, then you own nothing defensive and a ton of financials and you pray. if you're certain about the rate path, most people who own equity portfolios do risk management. if rates don't back up, i'm
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going to underperform. so i think you have to be a little bit more balanced and our work shows you're paying much less for the return on equity varibility, dispersion and you point out the correlation of return between utilities and banks is low. i like that from risk management. i think that's thinking like a portfolio manager. i like that. that's on purpose. >> as we move toward next week toward the brexit vote, it looks like the health of the european banks are going to come front and center for people. a lot of italian banks are being pounded today, deutsche bank is an at all-time low, lower than in the financial crisis. what do you say to people who have primarily invested in the u.s. equity market about the
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fears that clearly are stalking the weaker parts of europe at the moment? >> i think the part of that that impacts u.s. equity investing is really the currency exposures. we got around with our team globally and cover 3,500 stocks and we looked at their exposures on earnings and revenues by stock. so we're focused on do the u.s. equities have a lot of u.k. exposure. if you did get a big dollar strengthening, that might impede the dollars earning. the part i struggle with and i sit on a seven person asset allocation committee, i've been advocating to own u.s. equities more and the other regions because when you think about these fears and where they emnae emanate globally, you say there's probably a basket of 30, 40 equities that i should own. it probably means the multiple or pe ratio, they trade at a
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premium in the u.s. pretty substantial. >> i want to ask you about the conference you're attending today. is the gender diversity research that i've got in front of me something that you're presenting today, it seems to say that those that don't have higher gender diversity are more prone to blow-ups. are you presenting that today? >> i just presented here at the waldorf in new york. i have to say we're awfully proud of some of the work we've done on gender diversity. we rank ordered 1,600 stocks globally on their gender diversity by looking at pay parity, empowerment, are women in key roles in audit compensation committees, on the board and policy and programs. what we're really psyched about
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and proud of is we think we can implement this and make money. we rank order stocks every night based on financial metrics. you buy the cheap ones, sell the expensive ones, buy the ones with good earnings revisions, sell the ones with bad revisions. we took the cohort of stocks that stream well and looked at the ones that are gender diverse and they have way less volatility and blowups than the ones that are not gender diverse. i think you ultimately put your money where your mouth is. if we've identified a superior asset class here with less volatility and the same or higher returns, that's fantastic. we're pretty psyched about it and have a very large group of people that were paying a lot of attention here at the conference. >> thank you very much. adam parker joining us, morgan stanley's chief u.s. equity strategist. >> good to see you guys. have a great day. >> the market is down 146. >> carl, stocks are lower but
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one name is hitting a fresh 52-week high, it's newmont mining, as gold prices extend gains rallying to a two-year high following the fed decision yesterday to hold interest rates steady. shares of newmont have doubled on a year-to-year basis. so gold is certainly a big focus for traders given the fed. back over to you guys. >> thank you very much. when we come back, disneyland china open for business. hoping to find magic in the middle kingdom and the former ceo of viacom sounding off to cnbc about the drama. you're watching "squawk on the street."
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after more than a decade of planning, disney is opening the doors of it's new shanghai disneyland theme park today. our very own eunice yoon has been at the park all day and she joins us now. >> it was a big day for disney. tens of thousands of people came to the park and overall people were very excited by what they saw. the ceo, bob iger, told me last week that he's hoping that this park is going to become a booster rocket for the company's overall business and that the open eventually is that people are going to like what they see here and they're going to like those brand and all the
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characters and eventually buy more tickets to disney movies and buy more products at disney stores. this is what he said earlier today at the opening ceremony. >> today is a celebration of creativity and collaboration. commitment and patience, a triumph of imagination and innovation and a testament to the strong partnership between disney and china. >> and disney said that not only did they receive congratulatory messages from the u.s. president, but also from the chinese president, underscoring that important relationship between the u.s. and china. now, there is reason to believe that it is going to be pay off. disney said by its own estimates, 330 million people live within a three-hour radius, traveling here either by car or by train and can afford to come
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vacation at this park. and if you believe, as many economists do, that the economy is going to continue to develop longer term, that people are going to get more money in their pockets, that household spending is going to become a more important part of the economy here, then disney is in a good position. and people are coming here for a lot of the many new attractions that are unique to china. 80% of the attractions here are unique to china, including the pirates of the caribbean ride, which is a classic but over here has a lot of new visual technology and also to see the largest disney castle in the world. as i told you before, the one way in which disney is not accommodating the chinese people is that they are banning the beloved selfie stick. >> i don't get it. it still looks pretty crowded there. what is it, past 10 p.m.?
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there are still people? >> it closed just a couple of minutes ago but people are streaming out behind me. as you can imagine, because it's such an important day, a lot of people are lingering around. >> eunice, thank you very much for that live report from shanghai disneyland. >> and viacom board member redstone said i know longer trust felipe. they've said in legal filings that mr. redstone is no longer capable of making decisions over the trust and his holdings and have accused his daughter of manipulating her father. in an interview with melissa lee, former viacom ceo tom preston spoke out. listen. >> the whole so opera of the redstone versus the women, all the lawsuits i think has really
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been a side show compared to the real story, which has been the fall of viacom from grace essentially over the last bunch of years, the last several years. s been oit's been one of the le networking television divisions and now it's plagued with all types of problems, including creative departures. >> mr. preston was ousted as the ceo of the company nearly a decade ago. viacom responded saying "the company is significantly bigger and has many more profits today than when the predecessor left in 2006." vo redstone obviously getting a lot of attention. clearly there is a problem here with the leadership. >> well, they mentioned when he left in 2006 at $40 a share, the stock is essentially where it
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was when that ceo left. so it hasn't actually in contrast to the other ones in the industry -- though in fairness the board is trying to sede redstone, saying they have no confidence in him. and where you should be putting your money coming up. stay with us.
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traditional retail in retreat. e-commerce growing around the world. what are the key themes and the best way to play that trend? joining us at post 9 is heath terry, interim chairman at goldman sachs. welcome. >> thank you. >> seven years. this must sound a little different than the past ones. >> one of the things i enjoy of year is looking at all the prior years. if anything, this conference
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sort of ends up marking the evolution year to year of how those trends are changing. >> what is the evolution? what's the story? >> this year if anything it's all about the strength of the pure plays. and so this conference ranks to the heads of e-commerce, a lot of the pure plays and startups, the retailing retreat theme, store closures, inventory declining, as well as square footage shrinking. that's a big part of it. also the struggles that a lot of those traditional retailers are having in getting very commerce strategies off the ground. the other big thing, too, in this environment is the changing venture levels that you're seeing. a lot of the companies that come to this conference every year are startups, having less access to capital for a lot of them is a big deal. >> why is that happening? >> i think it's happening for a lot of reasons. one, we go through cycles like this, where a lot of money is
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put into place and now waiting to see what works. clearly not everything is going to work and companies that are struggling are getting less capital. >> you're forecasting e-commerce growth of 22% this year. how much of that is amazon? >> amazon is actually going to outgrow that number. we're expecting sort of mid to high 20s growth for amazon. it's coming from the fact that they're taking shares, it's coming from the fact that they're taking reacti-accelerat. >> some were interesting, ralph lauren and nike, what are they doing right online? >> lindsey druckerman, who covers ralph lauren, looks at their strategy for being online being brand direct, getting customers to come to them and be focused where their brand is
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online. being a brand gives you more leveraged customers. customers are going to look for that product and you're not caught at the comedy tend of the spectrum -- >> like a department store for instance? >> exactly. >> can i be clear? are you recommending ralph lauren or are you saying within our world that we're discussing today ralph lauren has the best opportunity in e-commerce? >> within the world that lindsey covers, within that apparel world, ralph lauren is one of her favorites. >> so conversely why is it bed bath and beyond, foot locker, jcpenney -- >> those can be sold by anybody online. if you have a skew, if you have something that can be scanned and priced, that's the part of the business you want to be out of. >> why is it inevitable that amazon takes that from them? walmart has fought back quite
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successfully, hasn't it? >> right. really where the issue is is these are companies that have relatively large fixed costs, running those stores, having the square footage around it. when you start to see e-commerce take 10% of the market, it pushes them down below those fixed costs. when you start closing stores, the other 90% of that business has to go somewhere else and a lot of it is going online. >> how vertical to the ones that are succeeding have to be? how much do they have to have in terms of fulfillment to themselves? >> well, a lot of that fulfillment you're seeing particularly some of the startups use third parties to do it, particularly during the holidays, those third parties end up getting capacity constrained. look at the problems ups and fedex have had delivering. the challenge is getting the product to consumers and relying
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on them. as one of the ceos there put it, we don't have another option. we can't make the investments that amazon is in to that kind of fulfill minute. >> and there's nothing to deter a consumer from buying again and not getting that gift on time for christmas. >> coming up on the program, hackers have penetrated the database of the dnc. and a new report out showing just how costly cyber threats are. we'll speak to the author of that report. and it was one year ago today that donald trump announced his candidacy for president. >> ladies and gentlemen, i am officially running for president of the united states, and we are going to make our country great again. >> mr. trump is of course now
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the presumptive republican nominee. "squawk on the street" will be back after this very quick break.
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returned the next morning to take the money back. he left ten $100 bills, a 20 and some ones. but he thought he was leaving just 1s. the restaurant gave him his money back and this time the man left another tip for $70. let's go to jackie deangelis. >> good morning. just waiting for the defendadefendanpartment of energy to release the nat gas build. so there's a couple of reasons that nat gas prices have really seen such a spike lately. they're actually up 30% in the last month alone. that's because while these builds we've been seeing are relatively big, we're also seeing a big boost in demand. we've had a very warm start to the summer season starting in
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may and we're seeing demand for nat gas, et cetera, people expecting that to continue, that this could be a very hot summer. that will continue to give these prices a little more momentum. not long ago we were trading around the $2 mark. we're trading a little bit lower, 2.58 at this point is where we're seeing the nat gas price. it's an injection of 69 billion cubic feet. that's just slightly higher than expectations. carl and the gang, back over to you. >> thank you very much. beyond energy in oil is down about 3% right now. markets are on the move after the federal reserve left interest rates unchanged and added some commentary. our very own steve liesman joins us with more. >> there are some big takeaways, exasperation, even anger.
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the fed downshifted. >> the fed doesn't have a clear vision of where the economy's going, and therefore it's overly data dependent. because of that it sends conflicting signals over time and the market interprets that either as the fed being totally inconsistent or the fed being a slave of the market. >> ubs economist drew matus said the fed is not data dependent, it's data point dependent. here are some of the places, when they expect the fed to raise rates. oxnar economics and all the way over there in december, you can see morgan stanley holding out for that one rate hike in the last month. some of the language is a bit over the top in the sense that the federal has now aligned itself more closely to where the market already was according to
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where it was. from the other side, bob bruska praised the feds for the fed's humility, changing its mind. that's only if the fed sticks to that script. the fed could change its mind again and force the market to price in a race hike. >> and also the brexit next week. >> for more, let's bring in chief market strategist at oppenheimer. of all the takeaways, the ten-year yield is in the 150s. what is the signal for stocks? >> i think the 150 on the ten-year probably reflects a consider amount of concern about brexit rather than what the fed
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said. maybe we weren't misinterpreting the fed but we thought it was a new normal for a long time. we were looking for one time this year. we were thinking it was going to be in december. we almost thought maybe we were wrong on that when everybody was looking for two and it was looking a lot hotter, that maybe as early as july or september, but it seems to be reconfirmed. and we think it really has to do with its technology, globalization and demographics. it's three things in a row that the fed and other central banks around have to work with in order to reflate economies. this is going to be a lot longer
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than anyone expected. >> utilities are the only sector that are positive right now and financials are the worst performers. do you stick with this trade? even as a strategist you must say some of these safety stocks look expensive. >> i certainly do think that the risk-off stocks look expensive. utilities are up last i looked in the high teens year to date, and we've got to think that if we look at their performance from february 11th, really utilities are in the bottom of the pile in terms of performance for the sectors. so on a year-to-date basis, they really shine. but we think the underlying market recognizes that there could be a problem. and it's not uncommon that people just pile into that trade. i can't help but think that this happened last year, the first half of the year. and i'll have to check it. but i think the first half of year utilities were working. and then in the second half they gave it up. and i think what happens is you get a lot of more aggressive
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investors move in, they pick up the yield, they field the trend, they leverage it highly, they play it and then sometime in the mid summer they're going to give up the ghost on the utilities. i'd be careful with the utes. i'm underweight utes. it doesn't mean i don't own anyway, but i don't want to be overweight utes right now. >> what do you think about the fear that central banks don't know what they're doing, massively inflating certain asset markets and now they've said actually, we can't actually raise rates now. possibly some belief for a generation, for the next cycle. how do you deal with those fears that they've lost control? the situation is actually quite precarious. >> i think that view would be very much overdone, and it's not uncommon when you're shifting back and forth. i like to say it's a row, row,
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row, market, risk on, risk off, or row, row, row your boat up the stream. we have a tremendous amount of transition occurring, and most of it is this very dramatic fourth industrial revolution, what's going to happen. the other day i think it was on cnbc, i don't recall who your guest was, but there was a fella talking about 50% of jobs at some point in the next decade would likely be impacted by technology. and that kind of a thing, i think the central banks are very aware of this but everybody's trying to figure out how do you gain the new technology? people gain the new technology when it was automobiles, when the elevator operator went to the building at the turn of the last century and found that they were automated, had to find a new job. in the last few years, bookkeepers, many of whom have lost their jobs because of software have learned to do
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other things. and this is not a let them eat cake moment at all. it's just since the wheel was developed -- >> we don't really have a problem with employment, do we? that's not our biggest issues. >> it's not so much employment but it is wages and it is wages that reinflate the economy. you can't get decent inflation without wages going up. >> that's why the bill grosses of the world are talking about ubi, right? some minimum amount of money exists in the world of robots. >> hopefully it doesn't get to that. the big story is how long does it take us to gain the new technology. at the cutting edge people have learned to gain it with new apps and whatever they do, in health care and in manufacturing. but for the working populous, for the rest of us, we have to learn how to gain the technology as we move forward. it generally happens. humanity is remarkable. it generally doesn't feel the heat initially, but once that
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flame gets hot enough, it moves. >> john, thank you. john stoltzfus from oppenheimer. >> listen up, cnbc has obtained an exclusive document detailing the words framed by their monitoring system. session lows down 157. ♪ i know i need a miracle at temenos, with the microsoft cloud, we can enable a banker to travel to the most remote locations with nothing but a phone and a tablet. everywhere where there's a phone, you have a bank. now a person is able to start a business, and employ somebody for the first time. the microsoft cloud helped us to bring banking to ten million people in just two years. it's transforming our world. for fastidious librarian emily skinner, each day was fueled by thorough preparation for events to come.
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welcome back to "squawk on the street." the s&p 500 down by about 19 points, energy lag the most, off about 2% as oil slides, trading below $47 a barrel. among the starts down the most down about 5% or 6% in trading. energy is up about 9% following
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today's prices but still far and away the worst performance in the selloff. >> let's show you a broad picture of the markets. don mentioned we're in selloff mode. the down is down 130. this is the sixth down day in a row. the nasdaq is now lower by more than 1%. the only sector in the green on the s&p, utilities. yields are lower. we're in the 150s range in the 10-year treasury note yield. oil is lower. this is after the fed, the bank of japan and ahead of the brexit vote next week. >> of course. in the meantime, just what are the costs of a cyber attack. a new attack from deloitte finds business impacts are vastly underrated because the damage of attack is hidden and costs can stretch for five years or more with increased insurance premiums, last revenue and the likes.
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welcome to the program. good morning. >> good morning. thank you for having me. >> so in essence, you think the people, ceos, are not acknowledging the scale of what is going on with businesses that are attacked. why do you come to that conclusion? >> well, if you think about what's talked about actively in the marketplace, there is a clear focus on the loss of personal data, credit card information, social security numbers, and that is an important element. when you hear about 20 million records lost, 50 million records lost, that's important. but that is not the true extent of what an organization and a company is dealing with. they're often also dealing with loss of intellectual property in the form of trade secrets or strategic documents. in many cases they're also seeing business outage and disruption. and those elements really haven't been part of the conversation to date. >> how common is it for fortune
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500 companies to commission reports like your own into their own vulnerability? i would have thought this was an ongoing conversation that all of them are having. >> well, it's interesting, and this is definitely an evolving space. i think that they have been very focused on understanding their vulnerabilities and have been focused and interested in understanding the threat but there's another element to that and that's the business impact. that has been one of the element that has been sorely lacking in the conversation. that's really what we wanted to bring to light and start the conversation around in doing this report. organizations need to understand more than just where are they vulnerability and what is their threat but what will the impact truly be to their organization if something does happen. >> and is that partly because the cyber attacks are potentially going deeper into more complex organizations than maybe they were ten years ago? >> well, i think that that is part of it and also the adversary and the threats have
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evolved, right? they've continued to get more sophisticated. they're very well funded. and quite frankly, they have a number of different motivations. the motivation is what drives the ultimate impact. the motivation may not be looking for credit card data or social security numbers anymore. the motivation may be that longer term data that will provide value over a longer period of time like intellectual property. or it may be to disrupt a business and to be able to then see the impacts of that business disruption. so the motivations themselves have impacted the threat and they've evolved. >> do you think, emily, as time goes on in conclusion that the technology may solve this itself? we talk increasingly about artificial intelligence, people moving on to the cloud and then having very sophisticated a.i. systems behind them from watson or ibm or whoever it may be. if you've got a watson in the future protecting your company, presumably it's a lot safer.
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>> well, technology definitely will allow this to evolve and will allow us to better protect ourselves, be more vigilant and be able to respond faster. but at the end of the day, this can't be treated as just a technology problem. there's a large element associated with the business context of the data that's at stake, and that business element can't be minimized. it really has to be at the forefront of the thinking. >> okay, we'll leave it there. good to see you, emily. emily mossburg joining us there from deloitte. >> if you work at goldman sachs you may want to turn up the volume for this. cnbc has on it and a document that flags more than 180 phrases flagged in their e-mail system. >> good morning, sarah. this is a slice of life inside a regulated industry. goldman sachs employees are told their e-mails are being monitored. the company uses a software
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algorit algorithm. some of the phrases they were looking for on this list is starting with "i've been trying to reach you" could get an e-mail flagged. also "stock will fly," maybe someone is overpromising to a client and then "call the sec." if you type the zip code and mailing address of the sec, that was flagged as well. and other phrases in business, including "paying fees through the nose, ass or butt, clowns managing or running the fund or finally way to f-ing much, except they don't say f-ing, they use the f-bomb there. so when you look at this list
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and take it in totality, you get the sense of what goldman is looking for is anything that evokes strong emotion, a sense of dispute. we have the whole list up on cnbc.com for people to look at. this is a fairly common thing at big banks on wall street. >> i've been trying to reach us is ear marked because potentially a client is not happy. >> not happy. where are you is another one. a lot of things that clients are desperate to get attention to somebody at the firm, that might indicate there might be a problem and management might want to jump on that. these are reviewed by human beings inside goldman sachs. >> thank you very much. let's get a quick check on the markets at this hour. we are looking at six days of losses, something the dow and s&p haven't seen since last
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august. we are heading for our worst week on the s&p since back in february. the dow is down 119, s&p 500 down about 0.8%. one bright spot, and this is the top performer in the s&p biggesd supermarket kroger is up, and the sales growth is growing, but the sales beat the proyek shun, and sit down today, and maub that is why it is getting some relief today. "squawk is on the street "sigh back after the break.
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the dow is down 128 and the bonds are surging along with gold, and we go over the rick santelli at the santelli exchange. >> good morning and welcome in my post fed statement day geontjohn i taylor, and nobody understands my sentiments of the central banking better than john. >> good to be here, rick. >> and yesterday, i was crazed. i had to go take a nap. when i basically heard the term new normal used by janet yellen a hand ful of years after most market participants, mohamed a
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alari and myself, and pimco and bill gross, and this is where the market participants saw it years ago and are they that late to the party, and painted themselves into such a small corner, and why so slow to be a leader of a central bank that leads other central banks? your thoughts? >> well, you know, i think that at this point, they have been trying to do the so-called normalization, and they are falling behind on, that and so they are look g fing for things say. the new normal is a example of that. as you say, it has been around for a long time, and because of the slowness, and i think slowness of the adaptation to normalized policy, they are looking for things. they also referred to brexit in the press conference yesterday. so it is all sorts of things that they are referring to, but they have to et get back to policy that is working in the past pretty soon. >> i understand. now, lis ep, we had richard fisher on yesterday, and i have great respect for the former
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president of the dallas fed and he brought up, and nobody talks about the negatives and what is happening to the insurance company, and the money market fu funds and the community banks and the pensions and the state of illinois, and where the rates are, forget the blame issue, and are negative rates coming, and mr. fisher said no, and your thoughts? >> well, i hope so. we should be going in the other direction right now quite frankly, and the other having debated and discussion about it, but it is kweezing the financial institutions at a time when they should think of lending to support the economy, and get the growth higher. so it is not productive, and other countries are doing it. i spent a few weeks in europe looking at the ecb and the ricks bank, but i don't believe that we should go in that direction, and we should go in the other direction. >> and john, i understand the logic, it is difficult to raise the rates, and they have missed many opportunities bs, but the notion of where we are at versus the direction of where we have to move is a calamity, and the
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final minute that we have here, and if you were in charge of yesterday's meeting, and i understand brexit, how would you have dealt with the current times that we live in from a central banking perspective? >> i would have continued with the strategy of normalization, and not fallen back just because of one employment report or falln back because of the brexit, and the uncertainty. i think that the uncertainty of the reaction to those events causes even more uncertainty. so mentioning new normal after so many years, and brexit at this point just raises unsern i uncertainty about what the fed will do, and that is causing problem problems. so the important thing if i were having anything to do with it is to keep on the strategy of going back to where things worked in the past, and it does not mean negative rates or qe. >> and we are running out of time, i but i want to continue this conversation on the cnbc, the pro-side of it, and we will come back. i thank you for the live time, and of course, always respect
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your views and opinions. simon hobbs, back to you. >> thank you. and of course, we have "squawk alley" on deck. jon fortt with the preview of the next hour on cnbc. good morning, jon. >> yes, coming up in a few moments. sumner redstone does not trust the board, and so we will dig into that. and the cia director is not happy with jack dorsey's level of cooperation. and we will talk about the amd predictions, and does it go higher from here? all of that is coming up on "squawk alley."
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